SUSTAINABILITY REPORT 2016 CO-CEO’S ABOUT WHO MATERIALITY SUSTAINABILITY SUSTAINABILITY APPENDICES CORPORATE Westfield Corporation Limited | Sustainability Report 2016 | 2 1 MESSAGE 2 THIS 3 WE ARE 4 & STAKEHOLDER 5 PILLARS 6 GOVERNANCE 7 8 DIRECTORY REPORT ENGAGEMENT We create and operate flagship CONTENTS assets in leading markets that deliver great experiences 1 CO-CEO’S MESSAGE 2 ABOUT THIS REPORT for retailers and consumers. 3 WHO WE ARE 4 MATERIALITY & We are focused on creating a digital STAKEHOLDER ENGAGEMENT 5 OUR FOUR platform to converge with our SUSTAINABILITY PILLARS 5.1 ENVIRONMENT physical portfolio to better connect 5.2 OUR PEOPLE retailers, brands and consumers. 5.3 COMMUNITY 5.4 MARKETPLACE 6 SUSTAINABILITY GOVERNANCE 7 APPENDICES 7.1 ENVIRONMENTAL PERFORMANCE INDEX 7.2 GRI INDEX 7.3 RISK MANAGEMENT 8 CORPORATE DIRECTORY CO-CEO’S ABOUT WHO MATERIALITY SUSTAINABILITY SUSTAINABILITY APPENDICES CORPORATE Westfield Corporation Limited | Sustainability Report 2016 | 3 1 MESSAGEMESSAGE 2 THIS 3 WE ARE 4 & STAKEHOLDER 5 PILLARS 6 GOVERNANCE 7 8 DIRECTORY REPORT ENGAGEMENT 1. CO-CEO’S MESSAGE We are pleased to present Westfield Our Sustainability priorities Corporation’s 2016 Sustainability in 2015 included: Report. This is our second Sustainability • The development and adoption of a group‑wide Our focus is on being an organisation that Sustainability Policy and Environmental Policy; Report following the establishment of delivers best‑in‑class flagship centres, integrated digital technology, market Westfield Corporation as a separate • The creation of a global Sustainability Working Group; leading financial and operating metrics and corporate entity in July 2014. Westfield makes a positive contribution to the social, Corporation was formed following the • The development of a detailed Stakeholder environmental and economic well‑being of the Engagement program; and communities that we are a part of. demerger of Westfield Group’s • The establishment of our Sustainability United States, United Kingdom and We recognise that we have a broad range of framework across four key pillars: stakeholders and that many of them are interested European businesses. the Environment, Our People, Communities in the progress we are making in improving our and the Marketplace. sustainability performance. Whilst our organisation is steeped in the history of Our performance and progress against each of the former Westfield Group and the sustainability We hope you find this report helpful and these pillars – is set out in this Report. Steven Lowy AM performance that Westfield Group reported on informative. Please feel free to provide us Co-CEO over a number of years, we are nevertheless a On our agenda for 2016 is the adoption with any feedback or suggestions you have new organisation with a different asset mix and of a five year sustainability strategy which in relation to our sustainability program at: Westfield Corporation (Left) risk profile. includes measurable targets. Going forward, [email protected] we will report annually on progress we are making in implementing our strategy and achieving our targets. Peter Lowy Co-CEO Westfield Corporation (Right) CO-CEO’S ABOUT WHO MATERIALITY SUSTAINABILITY SUSTAINABILITY APPENDICES CORPORATE Westfield Corporation Limited | Sustainability Report 2016 | 4 1 MESSAGE 2 THIS 3 WE ARE 4 & STAKEHOLDER 5 PILLARS 6 GOVERNANCE 7 8 DIRECTORY REPORT ENGAGEMENT 2. ABOUT THIS REPORT REPORTING PERIOD SCOPE Given that Westfield Corporation was created In November and December 2015 we sold in July 2014, this is the first full 12 month period six shopping centres in the United States. This report covers the period from for which we have reported sustainability data. These centres were Carlsbad, Connecticut Post, The data in this report should be regarded as Mainplace, Vancouver, Fox Valley and Hawthorn. the base year against which we will track and These centres were included in this year’s report 1 January 2015 to 31 December report on progress in future years. but will be excluded from future reporting. The assets covered in this report are those over 2015 and is aligned with the which Westfield Corporation has had operational control, for six months or more, during 2015. MORE INFORMATION & QUESTIONS Global Reporting Initiative (GRI) These assets include shopping centres, office For additional sustainability information buildings as well as construction and development including detailed environmental data please sites across the United States, the United refer to the Appendices to this report. G4 Sustainability Reporting Guidelines. Kingdom and Europe. All amounts in this report These Appendices include our reporting are in US dollars unless otherwise specified. definitions, boundaries, our environmental data and information on the GRI Index. This report does not extend to those assets in which Westfield Corporation has a financial interest, but is not responsible for managing on a day‑to‑day basis. Additions to this report (not included in our 2015 Sustainability Report) are the management offices FTSE4GOOD and site offices established during the year in INDEX Milan (Italy), as well as a construction office Westfield Corporation at Westfield London (part of our £600 million is included in the expansion at Westfield London). FTSE4Good Index CO-CEO’S ABOUT WHO MATERIALITY SUSTAINABILITY SUSTAINABILITY APPENDICES CORPORATE Westfield Corporation Limited | Sustainability Report 2016 | 5 1 MESSAGE 2 THIS 3 WE ARE 4 & STAKEHOLDER 5 PILLARS 6 GOVERNANCE 7 8 DIRECTORY REPORT ENGAGEMENT 3. Westfield Corporation is an Australian publicly listed company (ASX Code: WFD). We create and operate iconic retail WHO destinations in the world’s leading cities. Our centres are designed to be best in class For more information about our organisation and to enhance the connection between please select from the following links: retailers, brands and shoppers. We achieve this by integrating innovative digital technology • Organisation and Operations and the best in fashion, food, leisure and www.westfieldcorp.com/about/ entertainment with our iconic physical assets. • Board and Senior Management team WE In 2015 approximately 400 million customers www.westfieldcorp.com/about/board/ visited our centres generating more than www.westfieldcorp.com/about/management/ $16 billion in sales across 6,500 retail outlets. • Financial Performance (2015 Annual Report) Today Westfield Corporation employs close to http://www.westfieldcorp.com/news_ 1,700 staff and owns and operates 34 centres announcements/westfield-corporation- across the United States and United Kingdom. 2015-annual-financial-report/ ARE Of these 34 centres, 16 are flagship centres. • Development Program We have $29 billion in Assets under Management www.westfieldcorp.com/new-developments and a $10.5 billion development program. • Property Portfolio www.westfieldcorp.com/properties $29B 1,700 • Westfield Labs ASSETS UNDER www.westfieldlabs.com MANAGEMENT • Corporate Governance & Policies STAFF www.westfieldcorp.com/about/governance • Audit and Risk Committee Charter >$16B 6,500 www.westfieldcorp.com/about/governance IN SALES RETAIL OUTLETS 34 400M ASSETS CUSTOMER VISITS CO-CEO’S ABOUT WHO MATERIALITY SUSTAINABILITY SUSTAINABILITY APPENDICES CORPORATE Westfield Corporation Limited | Sustainability Report 2016 | 6 1 MESSAGE 2 THIS 3 WE ARE 4 & STAKEHOLDER 5 PILLARS 6 GOVERNANCE 7 8 DIRECTORY REPORT ENGAGEMENT LONDON | UK CHICAGO | IL LONDON OLD ORCHARD STRATFORD CITY CROYDON WASHINGTON CONNECTICUT SOUTHCENTER MERIDEN TRUMBULL ITALY MILAN NEW YORK NORTHERN CALIFORNIA WORLD TRADE CENTER ROSEVILLE SOUTH SHORE SAN FRANCISCO SUNRISE VALLEY FAIR OAKRIDGE NEW JERSEY LOS ANGELES | CA GARDEN STATE PLAZA CENTURY CITY CULVER CITY FASHION SQUARE MARYLAND SANTA ANITA ANNAPOLIS TOPANGA MONTGOMERY PALM DESERT WHEATON WESTFIELD VALENCIA SAN DIEGO | CA UTC HORTON PLAZA MISSION VALLEY NORTH COUNTY FLORIDA CORPORATIONS PLAZA BONITA BRANDON BROWARD CITRUS PARK COUNTRYSIDE SARASOTA PORTFOLIO SOUTHGATE FLAGSHIP FUTURE FLAGSHIP REGIONAL CITY/COUNTRY CO-CEO’S ABOUT WHO MATERIALITY SUSTAINABILITY SUSTAINABILITY APPENDICES CORPORATE Westfield Corporation Limited | Sustainability Report 2016 | 7 1 MESSAGE 2 THIS 3 WE ARE 4 & STAKEHOLDERSTAKEHOLDER 5 PILLARS 6 GOVERNANCE 7 8 DIRECTORY REPORT ENGAENGAGEMENTGEMENT 4. MATERIALITY & STAKEHOLDER ENGAGEMENT 4.1 Materiality4.2 Stakeholder Engagement WESTFIELD MILAN | ITALY CO-CEO’S ABOUT WHO MATERIALITY SUSTAINABILITY SUSTAINABILITY APPENDICES CORPORATE Westfield Corporation Limited | Sustainability Report 2016 | 8 1 MESSAGE 2 THIS 3 WE ARE 4 & STAKEHOLDER 5 PILLARS 6 GOVERNANCE 7 8 DIRECTORY REPORT ENGAENGAGEMENTGEMENT 4.1 MATERIALITY The Global Reporting Initiative (GR1) G4 Guidelines place materiality at the forefront of the reporting process. For the purposes of developing a strategic approach to managing sustainability and aligning with GRI G4 Guidelines we have determined our material issues by adopting the following four step process: IDENTIFICATION ASSESSMENT VALIDATION PRIORITISATION We engaged with our major stakeholders to We assessed the issues identified by taking into We identified which issues raised by our We prioritised the sustainability issues based identify the issues that are of greatest concern account independent third party guidelines such stakeholders were material by further on their importance to our business and our to them. This included engaging with and as the GRI Guidelines, benchmarking against discussing the outcomes