OU R E C PL O EO M P M R U U N O I T RESPONSIBLE Y O U SEGRO Corporate Social Responsibility R Report 2016 T S N T E A K M E N H O O IR LD V ER EN S OUR SEGRO Corporate Social Responsibility Report 2016 Overview 02 SEGRO develops, Our people are We are committed at the heart of to enhancing the owns and manages a our business... communities in which portfolio of European we operate... industrial and warehouse properties. Our modern, well-located buildings are capable of servicing We understand the We are committed importance of using to listening to and an extraordinary variety infrastructure to understanding of activities. protect and enhance our stakeholders... our environment... FTSE Russell (the trading name of FTSE International Limited and Frank Russell Company) confirms that SEGRO The Directors present the Corporate Social Responsibility (CSR) Report for the year ended 31 December has been independently assessed according to the FTSE4Good criteria, and has satisfied the requirements 2016. References to ‘SEGRO’, the ‘Group’, the ‘Company’, ‘we’ or ‘our’ are to SEGRO plc and/or its to become a constituent of the FTSE4Good Index Series. Created by the global index provider FTSE Russell, subsidiaries, or any of them as the context may require. The report has been drawn up and presented the FTSE4Good Index Series is designed to measure the performance of companies demonstrating strong in accordance with English company law and the liabilities of the Directors in connection with the report Environmental, Social and Governance (ESG) practices. The FTSE4Good indices are used by a wide variety of shall be subject to the limitations and restrictions provided by such law. market participants to create and assess responsible investment funds and other products. The CSR Report contains forward-looking statements. For further information see back cover. SEGRO Corporate Social Responsibility Report 2016 Overview 03 Responsible SEGRO To focus our corporate social Responsible SEGRO, introduced in 2016, provides a We set up a number of working groups during 2016 SEGRO’s core business involves responsibility activities on the aspects framework around which we describe and report on to explore future trends and innovations as well as being a landlord to our customers, our responsibilities to all of our stakeholders. At SEGRO, to streamline the amount of internal reporting that which deliver mutual benefit for our we prioritise taking time to listen to our people, takes place within the Company. We also invested in a but we are much more than this. stakeholders and SEGRO, we developed communities and stakeholders to ensure that we number of systems which help us achieve our Purpose We have employees, suppliers, exceed their expectations. ‘to create the space that enables extraordinary things the Responsible SEGRO framework. to happen’. communities, governmental This report reflects the key focus areas We believe that this collaborative approach enables us bodies and investors who have to make informed decisions which are beneficial to all, Our Community and achievements under each element including the environment. SEGRO continues to invest in the communities in their own expectations about how which we operate. Our commitment in this area, of the framework. One of our core Values is to keep one eye on the we interact with them. We also based on collaboration and partnership, is integral to horizon. Real estate is a long-term investment and Purpose & Values Partnerships our business. have a responsibility to protect the we need to ensure that it can thrive in a fast-moving environment in which we operate, Diversity Jobs & Skills business environment. It is vital that we understand We are proud of our contribution to enhancing our changing environment and adjust our business communities through the creation of a number of skills owning and developing buildings O U R E C PL O accordingly in order to make it future-proof: changing and employment schemes in 2016. The successful EO M P M R which use natural resources U Talent U N Charity demographics, the impact of technology and the outcomes from the London Community Fund are an O I T Y efficiently during both construction RESPONSIBLE continuing rise of ecommerce are just a few factors which excellent example of our commitment in this area and are currently affecting our business and the businesses can be seen in further detail on page 13. and occupation. O U R T of our customers. By investigating and understanding S N Suppliers T E Materials A K M 2016 was a particularly successful year for SEGRO E N H O these trends, we aim to position our business for success O IR LD V ER EN in terms of supporting charities. The launch of our S OUR in the long term. Company sponsored Day of Giving was enjoyed by Investors Energy Our People 201 employees across Europe and we were the first Without our employees, the success that we achieve company to reach the fundraising target for LandAid’s Customers Waste would not be possible so we invest substantially in our ‘Sponsor a home’ scheme. people and in making working at SEGRO an enjoyable Our Environment and rewarding experience. As a developer, we understand that we are responsible David Sleath In 2016, we continued to embed our Purpose and for creating sustainable buildings which safeguard the Chief Executive Values into the Company culture and to make them interests of the environment. By focusing on materials, tangible through a number of Company-wide initiatives energy and waste, SEGRO made significant progress which have enabled our Values to be integral to the on our 2020 targets in 2016 and we are proud of our way we work. achievements across the Group. SEGRO Corporate Social Responsibility Report 2016 Overview 04 Responsible SEGRO continued… An example of SEGRO’s level of commitment to What to expect in 2017 safeguarding the environment can be seen in our We have outlined the following objectives for 2017: Code of Ethics scheme launched at Navigation Park – London’s We will engage with our teams around the results SEGRO maintains the highest ethical standards in all of our business activities. Our Code of Ethics is aligned first ‘carbon neutral’ industrial scheme for which we ° of our Employee Survey to create meaningful, local to our Purpose and Values, as well as laws and regulations that control our operations. The Code is a primary achieved a BREEAM rating of ‘Excellent’. The project action plans which are underpinned by our Purpose condition of each employee’s terms of employment and aims to reflect the basic level of acceptable behaviour sets a fantastic benchmark of what we can achieve as a and Values. to ensure that our employees always act in the Company’s best interests. business and gives an idea of how we hope to develop in the future. We will set up a Berkshire Community The Code incorporates policies on bribery, corruption and fraud, gifts and hospitality, insider trading, ° Fund to replicate the success of the London confidentiality, conflicts of interest, relationships with our stakeholders, political and charitable donations and A principal part of our strategy involves investigating Community Fund. raising serious concerns. innovative developments which are likely to shape the future. Our adoption of solar power, LED lighting and Having achieved our operational efficiency targets All employees receive information on our Code of Ethics when starting work at SEGRO and are required to ° electric vehicle technology demonstrate just a few of the for Carbon, Water and Waste ahead of our 2020 complete an online training course as part of their induction. On an annual basis, employees are required to enhancements we have shown commitment to adding deadline, we will be reviewing our SEGRO 2020 certify that they continue to understand and adhere to the Code. across our portfolio. We will continue to invest in other targets in 2017 to reflect the changing demands on Our policies are regularly reviewed to reflect the requirements of the Company and the concerns of our innovations as society and technology move forward. our environment. employees to ensure they remain relevant. Any changes made to policies are appropriately communicated Our Stakeholders We will fully consider the results of our annual across the Group. Our relationships with our customers, suppliers and ° customer survey, take on board the feedback Any breaches of the Code of Ethics are fully investigated and managed accordingly by the General Counsel investors as well as our involvement with industry received and then implement improvements or Group HR Director as necessary. bodies enables us to make informed strategic decisions aimed at delivering a better product and service to for the benefits of our stakeholders. our customers. Furthermore, as a business we recognise our responsibility to be aware of the potential risks of slavery and human trafficking within our organisation and supply chain. In accordance with the Modern Slavery Act 2015, 2016 saw an investment in new systems and we have begun amending our existing policies and creating new policies and will publish a statement in the practices aimed at enhancing our commitment to our first half of 2017 to ensure we comply with the legislation and reflect our zero tolerance approach. stakeholder groups. David Sleath Chief Executive SEGRO Corporate Social Responsibility Report 2016 Overview 05 Health and Safety Throughout 2016, we continued our work to For the fourth consecutive year, SEGRO was We also introduced a new online tool called Safety Another health and safety highlight for 2016 was embed our health and safety policy into our culture, awarded a RoSPA Gold Award. This award reflects Matters. This system provides one central point to input the launch of a Wellbeing initiative in the summer, managing risks through tight controls, training and our commitment to, and practical application of, and track information concerning incidents, inspections coinciding with the Company’s Day of Giving (see raising awareness.