Corporate Social Responsibility Report 2012

CONTENTS

4 Chief Executive’s Introduction

5 Our Approach

6 Our Environment

9 Our Community

12 Our Tenants and Occupiers

15 Our Supply Chain

16 Our People

19 Our On-Going Commitments

Corporate Social Responsibility Report 2012 3 introduction

I am delighted to present The Portman Estate’s first Corporate Social Responsibility (CSR) Report. The Portman Estate has been actively engaged in all aspects of Corporate Social Responsibility for many years. Indeed, the principles are fundamental to the way we run our business and are key to developing value, both for our own organisation as well as for those stakeholder groups who are part of our Estate.

At the start of this year we made a We also recognise that in order conscious decision to formalise our to run and maintain a strong existing commitment to Corporate business, the home team is our Social Responsibility, as well as to foundation. We have worked hard develop a forward looking strategy to make The Portman Estate an to ensure that we continue to employer of choice and it is improve our goals and targets. This critical that we continue to do so, strategy provides us with a clear enabling us to attract and retain vision and direction for the future of the best employees. Corporate Social Responsibility within our business. We have made great strides this year in driving our business We have always placed a very strong forwards in terms of Corporate focus on our local community, as Social Responsibility and in meeting well as our customer relationships, the targets which we set ourselves and our own team has invested as part of our 2012 strategy. I am significant time and effort in both. very proud of the results we have Our community and customers form achieved and which are presented in the cornerstones of our business this report. and it is essential that we work increasingly collaboratively with Corporate Social Responsibility is these groups, developing strong and a long term commitment for the trusted relationships to ensure that Estate. While I believe that we do a the area in and around the Estate great job already, no business can continues to thrive. stand still and we are determined to continue to improve our performance, In recent years environmental setting ourselves stretch targets and considerations have also become a delivering increasing benefits. This fundamental issue for the property is not just for our own company but industry. With over 50% of the for our community, our customers, buildings within our portfolio being for the environment, and for our listed, The Portman Estate has an suppliers and employees. inherent sustainability of which we are extremely proud. This does, however, raise a significant challenge to enhance the environmental performance of these buildings. Nonetheless, it is a task we are keen to address and is demonstrated by the commitments that we have made Bill Moore CBE around the environmental credentials Chief Executive of the Estate. The Portman Estate

4 Corporate Social Responsibility Report 2012 our approach

The Portman Estate has owned the land on which our buildings reside for over 400 years, and we will continue to own and manage our Estate well into the future. This means we have a genuine long-term interest in the buildings, our occupiers and the communities across our Estate.

CSR is an integral part of our business activity. We recognise that we have an impact on, and Our Environment consequently a responsibility to, the environment and communities in which we operate as well as to the people who work for us. As a business we take our responsibilities seriously. We believe that managing relationships in a way that delivers a positive result for these key Our Community stakeholders will enable us to deliver a real social benefit, whilst simultaneously enabling us to maximise the long term value of our business.

Our aim is to go beyond compliance and to be at the forefront of best practice in CSR. We strive to be innovative and adaptable in response Our Tenants to the environmental and social needs of our stakeholders. To and Occupiers achieve this ambition effectively we continuously seek to embed a strong sense of corporate responsibility within our culture and our professional dealings so that our day to day practices are influenced by our core CSR objectives. Our Supply Chain and Partners

Our Own Employees

Corporate Social Responsibility Report 2012 5 OUR ENVIRONMENT

As a significant London property owner we recognise that we have a responsibility to the environment. We are committed to reducing the amount of energy our buildings use and invest in a variety of ways to achieve this through our refurbishment programme. This is despite the fact that our customers are most often the bill payer, and will therefore realise the financial benefit of lower bills, rather than the Estate.

More than 50% of the buildings We have a number of commitments that make up our Estate are listed that will remain constant. We believe Enhancing energy and we are proud of the inherent they will benefit the Estate and our efficiency across the sustainability of the assets that occupiers for the long term. estate we own. We are committed to maintaining the stock to a high The Estate’s continuing standard to preserve its life, as • We will maintain the portfolio to a refurbishment programme seeks to well as working to minimise the high standard to preserve its life improve the performance of every negative environmental impact and and minimise the interventions building on the Estate that requires maximise the positive environmental necessary. work. We prioritise those with performance of the buildings on the lowest Energy Performance our Estate. • We will continue to explore ways Certificate (EPC) ratings. As a high to make our portfolio as energy percentage of our properties are We have also set strong efficient as possible. listed, or fall within a conservation commitments around our new build area, we are limited in the nature of and major refurbishments which • We will continue to evaluate, and changes we are able to make. We are match industry best practice for where appropriate implement, committed to the challenge however such projects. We are committed new technologies to achieve and are evaluating different methods to stretching these targets over the higher energy efficiency. of reducing energy to see which are coming years, as well as keeping most successful in practice. up to date with improvements in technology or techniques. Images courtesy of Crofton Design

In addition to Marylebone, the Estate also owns two farming estates in Hereford and Buckinghamshire. We have worked hard to maximise the positive environmental impact of these farms and will continue to seek new and innovative ways of achieving this.

6 Corporate Social Responsibility Report 2012 OUR TARGET 2012 OUR ACHIEVEMENTS TO DATE

Eight major When properties become refurbishments were available we aim to enhance carried out in the year, their EPC rating to a minimum providing twenty six residential of a ‘D’ and for all major units. Most units received refurbishments by at least a ‘C’ rating, with only three one grade, where financially achieving our lowest feasible. rating of ‘D’.

For all major developments 7-17 Baker Street has been we have a minimum built to BREEAM Excellent expectation of BREEAM status in the year. 10 Portman Excellent for commercial Square is in progress and will buildings and ECO Homes also achieve this status. level 3 for new residential.

We have worked with British Land to develop At 21-22 Montagu Street, an early We will promote intelligent Marble Arch House. The design Victorian building within The Portman architecture that focuses on sets a new benchmark Estate Conservation Area, we have reducing energy use ahead on the Estate, deliberately installed solar thermal water heating of generating renewable designing out the need for with a communal micro-CHP unit alternatives. energy rather than relying on (combined heat and power) and technology or renewables as condensing boilers to provide heating a primary solution. and hot water. This is the most radical scheme we have undertaken to date and we will monitor the performance in use to see if the expected benefits are delivered. It We will use our position In 2012 we began installing will be compared with other schemes to promote lower energy Energy OWLs in residential over a two year period. use among our occupiers and properties. These allow supporting them in achieving occupiers to monitor their own We have also continued this progress this wherever possible. energy use. by gaining planning consent for a new residential development of eight apartments and two mews houses at 24-25 Castlereagh Street, a long term vacant light industrial site. We have specifically designed this scheme to achieve Code for Sustainable We are researching ways Housing Level 4, exceeding our We will continue to improve to offset the London office’s original commitment of Code 3 for all the sustainable processes being carbon footprint against new residential developments. implemented on our farms. improvements at the farms.

Corporate Social Responsibility Report 2012 7 delivering simple and effective environmental management across the whole farm which complements the existing farming operation, and allows the creation of our own practical environmental management programme. Some of our specific initiatives include:

Water Conservation – We have cleaned and restored 2 large ponds on the land and have now drilled a borehole at the western side of the farm, yielding 12 gallons/minute of water with a view to utilising this to gravity feed and supplement spring supplies for the stock during the summer months, thus reducing the necessity for using mains water. We are also installing large water tanks to harvest rain water for the LEADING THE SUSTAINABILITY In addition, it has been operating an same purpose. AGENDA AT THE PORTMAN organic beef farm for over five years. It is accredited by RSPCA Freedom Conserving Woodland – The farm is FARMING ESTATES Foods, The Organic Farmers and currently in the 4th year of a 5 year Growers and the Red Tractor Farm project to rejuvenate woodland and The Portman Estate owns and Assurance. All winter feed for the hedgerows around the site to protect manages two farms with very cattle is grown on the farm, further the wildlife which thrives there. different characteristics. Portman reducing the impact its operation has Burtley in Buckinghamshire is an on the environment. Renewable Energy – The farm has organic beef farm covering 2,000 installed photo-voltaic panels capable hectares while Portman Wilmaston in Wilmaston Farm of producing 50Kw of electricity on Herefordshire is a 1,000 acre mixed The farm at Wilmaston is the roof of several of its outbuildings. farm of sheep, cattle, arable land successfully enrolled in Natural As well as powering the farm itself, and woodland. England’s Entry Level Stewardship surplus energy is being supplied into scheme. The scheme provides the National Grid. Burtley Farm a straight forward approach to The Portman Burtley Estate includes 403 hectares of mixed woodland, managed on strict ecological methods to ensure the diversity of the area is maintained. Timber extraction is carefully managed to ensure stocks are maintained at sustainable levels.

The Estate has now planted over 1km of hedgerows as part of its sustainable management processes. Hedgerows are an important part of the strategy, providing habitats to often endangered species of birds and small mammals, preventing soil erosion and contributing to carbon storage.

8 Corporate Social Responsibility Report 2012 our community

Our Estate sits within a discrete boundary in the heart of London and as such we have a significant opportunity to use our influence to enhance the local area and benefit the communities who reside in and around it.

We view our community as including all occupiers within the boundaries of our London and farm estates, along with those individuals and organisations that influence life in these communities. This includes residential occupiers, businesses and their employees, visitors, “When Knight Frank moved to Baker charities, educational and religious Street, we were delighted to join organisations, along with established Portman in the evolution of the Baker representative organisations such Street Quarter. It is important for us as residents’ associations, business as an employer to ensure the best groups and statutory authorities. local environment for our staff and for us corporately to be located in Our overarching goal with regards an area which works for our clients. to our community engagement BSQ will deliver both.” practices is to provide resources, Tim Robinson, Partner, Knight Frank influence and leadership to further the economic, social There is potential for significant Studies have been produced and environmental wellbeing gain for both local business and the to demonstrate the benefits of of the community at large. This wider community from establishing converting the street back to two- is underpinned by an ongoing a BID covering the Baker Street way traffic and to identify the commitment to communicate openly and Portman Square locations. As a opportunities for the retailers and and regularly with those upon whom result we have invested substantial landlords to benefit from the available our operations have an impact. time and resources in leading the consumer market. work towards establishing the Baker Working to unite Street Quarter with a view to it being Along similar lines, the Estate has formalised in April 2013. created a business partnership Stakeholders through for Edgware Road and is ready to Business Improvement This year has seen the creation of engage with the City Council and TFL Districts the initial BID partnership and the with ideas and campaigns for future delivery of pilot schemes such as improvements to this busy road. A Business Improvement District food markets, wayfinding, street (BID) is a pre-defined area within ambassadors and business advice for which the businesses have voted the Olympic period. Images courtesy of Baker Street Quarter to invest collectively in local improvement activities. The creation of a BID allows office, hotel and retail communities to play an active role in the future success of an area. The Portman Estate is fully supportive of the concept of BIDs. We believe they have the potential to regenerate areas, developing a sense of collective ownership and responsibility, and ultimately deliver enhanced benefits for businesses as well as the community in and around those designated BID locations.

Corporate Social Responsibility Report 2012 9 OUR TARGET 2012 OUR ACHIEVeMENTS TO DATE

We will seek to use our influence as a major London In the past year the Estate has supported the creation of estate to encourage occupiers, our own suppliers new BIDs at Baker St and Edgware Road, the establishment and the wider community to support local initiatives. In of a neighbourhood forum, and has continued to support the particular we are committed to the implementation of Marylebone Association. Business Improvement Districts to achieve this goal.

2012 saw the on-going support of important initiatives Where possible we will seek to provide our support and including the Marylebone Multi-Faith Service. Our staff also resources to add to the success of local initiatives and supported the Marylebone Association volunteers for the nurture community activity within the Estate. Poppy Appeal.

We will continue to invest in enhancing the public We have worked with Westminster City Council to areas within our Estate, improving the quality of life improve the public realm in a variety of ways but particularly through promoting walking and cycling, tree-planting at Chiltern Street and Portman Square. Our case study and de-cluttering. provides more detail.

We have always sought to engage local businesses wherever possible as a means of supporting our local To help promote a sustainable community, we will seek community and employment. We will continue to do so to procure services and materials locally where possible. and this commitment will be supported by our supply chain charter.

10 Corporate Social Responsibility Report 2012 “With The Portman Estate’s Baker Street Quarter initiative, the Enhancing the Public management and financial assistance Estate has installed or supported the Realm in 2012, we have been able to installation of 17 bespoke signs in expand the Legible London street The Estate is committed to creating order to highlight pedestrian routes signage scheme through central the best possible environment for between the Baker Street tube Marylebone. A total of 17 new signs our 110 acre Estate. In Marylebone’s station area and Oxford Street. This were installed in record time as part established streetscape, has benefited the public, retailers of a sustainability drive to encourage improvements can be found in and also reduced the load on public walking in the West End.” smaller incremental changes just transport. Colleen Gardner, Legible London as in major public realm schemes. Project Manager Westminster Greening an area has many benefits City Council for quality of life and in 2012 the Estate provided financial and managerial support to the planting of 40 trees with the City Council and the local tree trust volunteers.

Early in 2012 we completed a scheme to remodel Portman Square. This work included reducing traffic speeds, providing new pedestrian crossings, removing guard railing and enhancing the street lighting. Over 30,000 sq ft of new pavement was created. The scheme included a significant increase in cycle parking and the provision of a cycle hire point. As a result the experience for pedestrians and cyclists in the Portman Square area has been greatly enhanced.

The Legible London signage scheme, commissioned by TFL, has also been a major success around the Estate. Through the Portman-led

Corporate Social Responsibility Report 2012 11 Our Tenants & Occupiers

We recognise that there is an additional element to our relationship with our tenants who occupy residential, commercial or retail space within our Estate and form the core of our community. We are committed to delivering the highest quality service, ensuring that we remain their landlord and destination of choice.

We are also committed to communicating with our customers whenever our operations are likely to impact on them, particularly construction and maintenance related activities.

OUR TARGET 2012 OUR ACHIEVeMENTS TO DATE

In the past year we have successfully generated support amongst our occupiers for the creation of We will seek to use our influence as a major London new Business Improvement Districts at Baker Street and Estate to encourage our customers and occupiers to Edgware Road; the implementation of a Neighbourhood support local initiatives. Forum in response to new planning legislation; and at regular street events designed to strengthen the business community.

We will identify those sectors of our communities, The management team at the Estate regularly reviews a most particularly our own occupiers, which are at risk schedule of residential tenants who may be vulnerable for from issues including fuel poverty, frailty and mental health, age or financial reasons. We have assisted a number health issues. We will seek to develop and implement of tenants this year either through liason with our retained strategies to provide such groups with assistance special benefits adviser; facilitating liason with existing where possible. carers; or simply making regular contact.

As well as installing energy OWLs, we ensure that all new We will use our position to promote lower energy use residential tenants are taught how to use their equipment among our occupiers and support them in achieving this efficiently. We have also initiated energy reviews at long- wherever possible. leasehold properties which have recommended low-cost improvements.

12 Corporate Social Responsibility Report 2012 Our Tenants & Occupiers

SUPPORTING OUR LOCAL BUSINESSES

We have a long history of working to support our local businesses and continue to do so in a variety of ways. One of the most visible is through our annual Portman Village Street Party.

Portman Village is an area which houses a wide range of vibrant retail and restaurant tenants who contribute to making The Portman Estate a destination of choice for commercial and residential occupiers alike. In June, the annual street party saw the streets of Portman Village swathed in Jubilee decorations, encouraging both regular and new shoppers to the area to celebrate the Jubilee with the rest of the Portman community. Our retail tenants were actively involved in the celebrations, enabling them to promote the area as well as their specific trade to a wide range of customers.

Corporate Social Responsibility Report 2012 13 PROMOTING LONG-LASTING RELATIONSHIPS AND ENERGY EFFICIENCY

The relationship between our business and our customers is very important. It begins on the first day they collect their keys to their new home or business premises. We are committed to making the occupational experience as beneficial as possible from day one.

For business occupiers this is the start of a relationship where we communicate regularly to see how we can continue to support their successful growth.

On taking up occupancy in a Portman Estate home, all of our residential customers are checked in and “Hats off to The Portman Estate with all the improvement they are making to welcomed to the Estate personally Chiltern Street. The evolving tenant mix, public realm works and vibrancy being by a member of our team. They generated in the street, make it the perfect place to locate our retail business” also receive a welcome pack to help Peter Goodall of the General Leather Company (56 Chiltern Street) introduce them to the Estate and the surrounding area. programme it is important that we communicate this to our residents We use this opportunity to show our and that they understand how to new residents the most efficient way maximise these efficiencies. With to manage their home to minimise a few exceptions, our tenants are energy consumption, particularly responsible for payment of their through management of heating own bills and so it is they who will controls. As our homes become more see the benefit. efficient through our refurbishment

14 Corporate Social Responsibility Report 2012 OUR SUPPLY CHAIN

We recognise that to achieve the greatest possible success from our CSR strategy, we need to work with our suppliers to help us meet our objectives. We also believe that as an influential business in the property industry, we have a responsibility to work with, educate and support our supply chain partners in enhancing their own CSR practices.

We are committed to continuous A location snapshot of our top 20 Suppliers by Value improvement in the management of © 2013-Google - Map Data our supply chain to deliver services across our operations which meet our CSR commitments. We will seek to use the benefits of strong supply chain management to deliver enhanced value for our stakeholders, our own business and our suppliers.

OUR TARGET 2012 OUR ACHIEVeMENTS TO DATE

We have drafted a SCC to implement within particular To develop a Supply Chain Charter (SCC) to be rolled elements of our supply chain in the next 12 months. We out across our key suppliers highlighting the values and have surveyed our key suppliers to understand their own standards we expect as an organisation. CSR initiatives and how they may be able to help us deliver on our own objectives.

To promote and use local resources where available We have always sought to engage local businesses and appropriate. wherever possible and continue to do so. This commitment will be supported by our supply chain charter.

Corporate Social Responsibility Report 2012 15 OUR PEOPLE

We place a significant emphasis on the wellbeing of our staff. We recognise that the commitment of our employees is crucial to the long term success of our business. In order to achieve this we aim to provide all of our employees with a positive and supportive working environment and appropriate work life balance, alongside a challenging and rewarding role. We place the personal development of our team as one of the key goals for the business.

Our goal is to be recognised as an employer of choice within the industry with regard to our people practices.

EMPLY O EE ENGAGEMENT

The employee satisfaction survey was conducted in November 2012 with a participation rate of 87%. We achieved some great results with most questions scoring between a 70-97% positive response rate.

Despite these impressive results we recognise that as a business we cannot stand still and are committed to driving all areas of our employee engagement strategy forwards. Though the majority of our results were extremely positive there were a few areas identified for improvement. We are committed to reviewing ways in which we can tackle these areas in the coming year in order to enhance our employee engagement levels further.

16 Corporate Social Responsibility Report 2012 OUR PEOPLE

OUR TARGET 2012 OUR ACHIEVeMENTS TO DATE

In line with our ambition to embed CSR within our In the last 12 months we have embedded CSR objectives culture, we will set formal and appropriate CSR-related into the personal objectives of a number of our employees objectives for all members of staff as part of their and will be fully implementing them throughout 2013. annual objectives.

We will ensure that all staff have a personal Training and Development Plan. This will enable our employees This objective has been actioned for all employees and has to receive the training they require to develop and progress been followed up on as part of their annual appraisal. in their role, benefitting them personally as well as the business as a whole.

Individuals have raised money for Cancer, Stroke and We will continue to provide employees with the Hearing Loss charities and benefitted from the fund opportunity to contribute individually to charitable matching scheme. In addition, the Portman Foundation has organisations with the fund matching scheme. donated to a variety of charities and good causes, most within the local area.

We have provided all employees with access to 1 We will review the potential to provide formally all days volunteering leave each year. Employees have employees with 1-2 days working days each year for volunteered at St. Mungo’s, a local homeless charity, as volunteering projects which contribute towards the well as arranging visits for local school children to the company’s community CSR strategy. Portman Burtley Farm.

Working with The Crown Estate and the Workplace The Portman Estate provides work experience Co-ordinator Programme we have successfully provided opportunities to students each year. We will continue an employment placement to an individual who may not to do this, however we will focus our efforts on selecting otherwise have been given the opportunity. This placement individuals from potentially ‘less advantaged’ backgrounds has been a great success and as a result the position has to provide support and encouragement to those who been extended to a one-year contract, allowing our new may not otherwise get this opportunity. employee to gain further experience and real career potential for the future.

We carried out a review of our welfare packages in We will continue to review, and where necessary improve, the year. Though our existing packages were highly the welfare packages available to staff to ensure that these competitive in the market we have still extended them to are appropriately targeted and competitive. provide additional staff benefits.

Corporate Social Responsibility Report 2012 17 THE PORTMAN ESTATE TAKES To achieve this considerable sum, THE PORTMAN ESTATE SOCIAL TO THE WATER FOR THE GREAT our thanks in part go to the enormous COMMITTEE RIVER RACE generosity of the Estate’s suppliers who on 19 July attended a fund Having conquered the Scottish raising drinks party at The Portman Highlands (Caledonian Challenge Estate offices and feverishly bid 2010) and traversed the South against each other to achieve one Downs (Ghurkha Challenge 2011), of eight slots to advertise their members of staff from The Portman support for The Portman Estate Estate office took to their boats this boats and our chosen charity. Our year and rowed 21 miles along the thanks go to them. River Thames to raise money for the Estate’s chosen charity, St. John’s Hospice.

Two teams of 10 took part in the annual Great River Race on 15 The Portman Estate Social September, which saw some 300 Committee meets on a monthly basis vessels row from Docklands to to identify opportunities for staff Ham in Surrey. Each boat carried interaction beyond the office at eight rowers, one cox and one 40 Portman Square. The committee passenger and although only two organises monthly socials, which team members had rowed before, in 2012 have ranged from relaxed following a handful of training drinks in one of the Estate’s local sessions both boats crossed the pubs to 10-pin bowling, a quiz finish line in just over four hours and evening and even crazy golf in the only some four minutes apart. previous (and at the time vacant) Estate office on Seymour Street. Despite the hard work involved, the effort was definitely worthwhile as Beyond this, the committee is we raised over £37,000 which has responsible for organising the Estate funded the upgrade of four bedrooms staff’s two flagship events – Summer at St John’s Hospice. Day Out and The Christmas Party. For this year’s Summer Day Out, in July the Estate staff visited Kew Gardens and the Fuller’s Brewery in Chiswick. The day out of Marylebone offered the 45-strong team a change of scenery, the opportunity to catch up on each other’s news and a chance to take their minds off the pressures of the office. The 2012 Christmas Party was also quite special this year with a private, fine dining experience at Bentley’s Oyster Bar in Mayfair. The venue provided a very fitting ending to what has been an extremely positive year for the business.

18 Corporate Social Responsibility Report 2012 our ongoing commitments

In the first quarter of 2013 we will again gather our management team together to set our formal CSR objectives for the future. We are determined to stretch our goals and targets and further develop our CSR capabilities.

Though the detail of our revised objectives is still to be set some of our high level objectives for the year will include (but by no means be limited to):

• We will develop a formal Sustainable Development Brief to cover all developments taking place on our Estate. Our • We will continue to drive our environmental principles throughout our portfolio, seeking to Environment minimise the environmental impact of both our existing and new buildings wherever possible. • We will look to work with relevant industry bodies to drive the sustainable agenda forward and learn from, as well as lend our expertise to, peer group organisations.

• We will continue to pursue the BIDs which we have initiated this year with a view to driving positive change through these areas. Our • We will continue to support our local community stakeholders, in existing activities as well as Community reviewing the potential to expand on them for the benefit of the community and our business, encouraging our tenants and occupiers to support these initiatives. and Tenants • We will roll out further strategies to promote lower energy use among our occupiers and support them in achieving this wherever possible.

• We will focus on further strengthening our employee engagement practices and will utilise Our the results of our Employee Satisfaction survey to guide our focus. • We will continue to engage in independent peer group and best practice reviews of our People people performance to ensure the Estate remains at the forefront of employment best practice.

• We will formalise and roll out our Supply Chain Charter and begin to work with our partners to ensure that it is successfully adopted. Key considerations for our supply chain charter will include: Our Supply »» Sustainable sourcing of materials Chain »» Requiring local procurement strategies where possible »» Minimisation of greenhouse gas emissions in sourcing and supply of materials »» Maximising use of recycled content in products »» Minimising the amount of waste sent to landfill.