2014 Sustainability Report

2014SustainabilityReport

“The Company of the future, Enterprise 2020, operates profitably through mainstreamed responsibility and transparency, and innovates solutions for the planet and its people in close cooperation with all stakeholders.Together, they lead transformation towards a smart, sustainable and inclusive society”

“

CSR Europe, Enterprise 2020, 2010

Index_INTEGRITY IN BUSINESSAND MANAGEMENT

A CHANGING CONTEXT

PEOPLE

QUALITY AND EFFICIENTYOF THE SHOPPING CENTRES

THE CONCEPT OFSPACES TO BE LIVED IN

1_

3_

5_

2_

4_

Corporate Governance 27

Transparency 30

Legality 33

Operate ethically 34

Letter to stakeholders 5

Methodological preface 8

Introduction: about IGD and brief outlineon economic performance 10

Social responsibility and materiality 14

APPENDIX:GRI G4 MATRIX AND EPRA TABLE 94

The social role of the shopping centre 67

Territorial importance 73

Communication 75

Innovation 77

Steady and attractive employment 81

Internal culture 84

Equal opportunities and diversity 90

Employee wellbeing 92

Environmental impactof the structures 39

Attractiveness and liveabilityof the Shopping Centre 50

Stakeholder engagement 57

Stakeholder awareness 63

LETTER TO STAKEHOLDERS 5IGD SIIQ - 2014 Sustainability Report

Letterto Stakeholders (G4-1)_Dear Stakeholders,

we are pleased to present IGD’s fifth Sustainability Report for the 2014 calendar

year.

2014 was a very intense year for IGD, with important results regarding economic-financial sustainability and social-environmental sustainability. All this was in line with the 2014-2016 Business Plan, our first to incorporate social responsibility issues.

With regard to economic-financial sustainability, IGD increased its real estate assets thanks to: the completion of development investments which were in the pipeline; the acquisition of a portfolio of strategic assets for 94.7 million euros and a capital increase of about 200 million Euros. The capital increase enabled IGD to carry out major changes to its portfolio profile and its financial stability, with positive economic impacts that will continue to be felt in the coming years.

With regard to social-environmental sustainability, 2014 saw the company engaged on two fronts:

• Implementation of the sustainability targets contained in the Business Plan

• Reflection within the company to define the “material” issues, that is those capable of having a substantial impact on the company’s performance, on which to focus the sustainability planning targets.

The Report that we are presenting today is the first document that takes both of these developments into consideration. It reports on the actions carried out and the results obtained for each of the (15) issues considered as being “material” for the company.

These were grouped into (5) macro-issues which

represent the priority fields of action for IGD (as well as forming the sections of this Report):

1. Integrity in business and management2. Quality and efficiency of the Shopping Centres3. A changing context4. The concept of “Spaces to be lived in”5. People

With regard to Integrity in business and management, IGD has made transparency and accessibility to information one of the objectives that distinguish its approach to its stakeholders. 2014 was an excellent year in this respect, with an increase in opportunities for dialogue with investors and with financers, especially on account of the extraordinary transactions carried out. We also confirmed and reinforced focus on all information channels, by continuously updating the company website and by using Twitter to inform our stakeholders about the most important developments in the Group.

On the subject of “Quality and efficiency of the Shopping Centres”, IGD has continued to improve the energy efficiency of its assets. Structural work carried out during the year, accompanied by improved management, reduced energy consumption by 6.2% and water consumption by 12.3%. We are pleased with these results, which are the product of a process that began in 2012 and which in 2013 led the company to adopt an ISO14001 certified Environmental Management System (EMS). Thanks to this it became possible to start monitoring consumption and identify the areas requiring action, which influenced the selection of the structural work.

In Romania, Winmarkt is also continuing its efforts to decrease energy consumption, the result of important investments included in the Business Plan: over the last two years, it has

LETTER TO STAKEHOLDERS 6 IGD SIIQ - 2014 Sustainability Report

reduced energy consumption by ~40%.

In the 2014-2016 Business Plan we identified the need for restyling and extension work to be carried out in several assets in our portfolio to increase the retail offer (and attractiveness for visitors) and to improve energy efficiency by means of specific structural work.

The extension carried out in Centro d’Abruzzo (inaugurated in April) produced distinctive results: footfall increased and the extension received an energy performance certificate B as a result of the environmental measures taken regarding lighting, insulation and systems.

Furthermore, we used the Centro d’Abruzzo restyling work to further enhance a project which we care deeply about: to guarantee that our Shopping Malls are freely accessible to everybody, regardless of their degree of physical ability. This project started in 2013 with an audit for individuals with disabilities, by taking action with regard to the structures (when restyling work is in progress) and with regard to communication. We will continue to raise awareness amongst our tenants so that they put into effect several small measures to improve accessibility to and within their stores for everybody.

The issues of engagement and awareness are, in fact, those that come under “A changing context”. 2014 was an important year: starting from our firm belief of the importance of collaboration and dialogue, we structured a system of stakeholder engagement. In this way we managed to engage (nearly) every one of our stakeholders in business issues with particular focus on social responsibility. This process continues to develop and what has emerged up to now is very important to us, so much so that we are identifying the best actions to be taken each and every time.

Being proactive on these issues for us means being inspiring and a positive influence for the environment in which we operate. For this reason, we have at least one awareness raising activity in place for each of our stakeholders and others we intend to carry out from 2015 onwards.

We are more and more convinced about one aspect in particular: that the Shopping Centre

is a “Space to be lived in”, as it is becoming more and more similar to a city centre, a place for shopping but also a location in which to pleasantly spend your free time. For this reason we are committed to offering visitors to our Centres a varied programme of innovative and longer lasting events to actively engage them. The event satisfaction surveys which we carried out in 11 Shopping Centres in 2014, highlight the fact that we are heading in the right direction. The important thing for us is to continue to be a major attraction for the highest level of local enthusiasm, a place which local social, cultural and sports organisations can identify as being a favourable place to meet up in. In 2014 about 30% of the events we organised originated from a local area partnership with our centres, and we want to maintain and improve these relationships whilst guaranteeing ever-increasing quality of the events offered.

Considering the huge importance that this issue holds for us, during the year we wondered how to evaluate the economic effect that our projects had on the local area. In cooperation with Impronta Etica, the non-profit association which we have been a member of since 2011, we used the SROI (Social Return On Investment) method, the most appreciated and developed evaluation method of social impact. Using this, we analysed the sports, art and disabilities project that we intend to organise in our Centres in 2015. It is a first forecast experiment, the results of which can be found in this Report, on a continuously evolving matter which we intend to follow closely over the coming years.

This drive towards innovation represents a modus operandi for IGD, especially in order to be able to provide the Centres’ visitors with avant-garde solutions so that their shopping experience is pleasant and in line with their needs. In 2014 we focused on innovations regarding the management of the areas (with the introduction of kiosks in the Malls), retail offers (with greater focus on services like dental clinics), marketing (with the launch of the “Content Marketing” project) and communication (with the creation of two apps, one each for 2 Shopping Centres).

Sustainability actions are implemented daily by

LETTER TO STAKEHOLDERS 7IGD SIIQ - 2014 Sustainability Report

Claudio Albertini_The Chief Executive Officer

Gilberto Coffari_The Chairman

IGD’s “people”. These are (between Italy and Romania) 168 people, the majority female (55%), 94% of whom have a permanent contract.

The development of their skills has been the focal point of the substantial actions taken regarding training over the last few years. Amongst these, our training on social responsibility, involved the entire Italian workforce (and 2 people from Winmarkt), from 2013 to 2014. It was an important opportunity to raise internal awareness on these issues and to discuss the characteristics that “sustainable IGD” will have in the coming years.

As our employees’ wellbeing is important to us, we started work on a corporate welfare project. In the next few months we will determine the first actions to be carried out.

In conclusion, we are pleased with the results obtained so far and also for the fact that in 2014 we were invited to various locations (Universities, Masters, conferences on the topic) to present our experience. If we think about the fact that it was only in 2011 that we started to structure our process towards social responsibility, we realise that, only a few years on, we have already managed to come a very long way.

It is with this awareness that we have addressed the 2015-2018 planning, having a clear picture of how we want IGD to be in three years’ time: greener, more and more open to dialogue with its stakeholders and innovative in its core business, with its Shopping Centres as local landmarks both for shopping and leisure time.

The Chief Executive Officer

Claudio Albertini

The Chairman

Gilberto Coffari

METHODOLOGY8 IGD SIIQ - 2014 Sustainability Report

Methodology_(G4-17; G4;18; G4-22; G4-23; G4-28; G4-29; G4-30)

General Information IGD’s fifth Sustainability Report cover the 2014 calendar year and reports on the Group’s environmen-tal, social and governance (ESG) performance both in Italy and in Romania.

Unlike the previous years, the layout adopted in this Report is by issue, involving various stakehold-ers. Each section contains the material issues that emerged from the materiality analysis that IGD carried out for the first time in 2014. (For further details on the analysis on material issues, please refer to the section “Social Responsibility and Materiality”).

The identification of the content was made possible by:

• involving the company’s top management;

• benchmarking with international competitors;

• developing the indicators required by GRI-G4 and European Public Real estate Association (EPRA) international standards;

• analysing the material issues.

Report Structure The 5 sections relating to IGD’s material issues are structured and ordered as follows:

1. Material issues reported in the section

2. Highlights of the section

3. Stakeholders involved

4. Performance in 2014

To highlight new activities or particularly significant ones with regard to IGD’s sustainability, a specific “focus” on the matter is included in each section, summarising the needs, targets and results obtained from the specific actions carried out.

The GRI-G4 and EPRA summary tables can be found in the appendix of this Report

Reporting BoundaryThe data reported in this document is on a like for like basis both in Italy and in Romania and they refer to the following Shopping Centres:

METHODOLOGY 9IGD SIIQ - 2014 Sustainability Report

Compared to 2013, the boundary for environmental data has changed. For further details please refer to “Methodological preface for environmental data” at the beginning of section 2 “Quality and efficiency of the Shopping Centres”. The reason behind this change is to adapt to the new EPRA standard guidelines.

Reference and GuidelinesThis Report has been drawn up with reference to the following:

• the reporting guidelines of the Global Reporting Initiative (GRI-G4), analysing in particular those re-ferring to the real estate sector (“Sustainability Re-porting Guidelines - Construction and Real Estate Supplement”). Reference to the GRI indicators are reported in each section.

• EPRA guidelines for environmental indicators (“Best Practices Recommendations on Sustainability Re-porting, Edition 2, September 2014”).

Name of Shopping Centre Place Name of Shopping Centre Place

CENTROSARCA Sesto San Giovanni (Milan) LUNGO SAVIO Cesena (Forlì-Cesena)

GRAN RONDÒ Crema (Cremona) FONTI DEL CORALLO Livorno

I BRICCHI Isola d’Asti (Asti) TIBURTINO Guidonia (Rome)

MONDOVICINO Mondovì (Cuneo) CASILINO Rome

MILLENNIUM Rovereto (Trento) PORTOGRANDE Porto d’Ascoli (Ascoli Piceno)

CENTRO PIAVE San Donà di Piave (Venice) CITTÀ DELLE STELLE Ascoli Piceno

CONÈ Conegliano (Treviso) CENTRO D’ABRUZZO San Giovanni Teatino (Chieti)

CENTRO BORGO Bologna LE PORTE DI NAPOLI Afragola (Naples)

CENTRO NOVA Villanova di Castenaso (Bologna) KATANÈ Gravina di Catania (Catania)

LE MAIOLICHE Faenza (Ravenna) LA TORRE Palermo

ESP Ravenna

Name of Shopping Centre Place Name of Shopping Centre Place

WINMARKT GALATI GALATI WINMARKT BUZAU BUZAU

WINMARKT PLOJESTI - BIG SHOPPING CENTER PLOJESTI WINMARKT PIATRA NEAMT PIATRA NEAMT

WINMARKT PLOJESTI - GRAND CENTER SHOPPING PLOJESTI WINMARKT ALEXANDRIA ALEXANDRIA

WINMARKT CLUJ CLUJ WINMARKT SLATINA SLATINA

WINMARKT BRAILA BRAILA WINMARKT TURDA TURDA

WINMARKT RAMNICU VALCEA RAMNICU VALCEA WINMARKT BISTRITA BISTRITA

WINMARKT TULCEA TULCEA WINMARKT VASLUI VASLUI

ITALY

ROMANIA

INTRODUCTION10 IGD SIIQ - 2014 Sustainability Report

Introduction: about IGD and brief outline on economic performance_

IGD_Logo

IGD’s organisational profile (G4-3, G4-4, G4-5, G4-6, G4-7, G4-8, G4-9, G4-13,G4-15, G4-16)_IGD SIIQ S.p.a was founded in 2000 subsequent to the transfer of large parts of Coop Adriatica’s real estate portfolio and afterwards Unicoop Tirreno’s, with the aim of developing a specialised and com-petitive company in the real estate sector.

IGD, which was listed on the Italian Stock Exchange in 2005 and which has been a SIIQ (REIT) since 2008, is today one of the most important entities in Italy in the retail segment of the real estate sector. It is a leading company in the development, purchase, management and rental of retail properties, as well as in marketing and facility management services and for properties belonging to third parties.

IGD is also present in Romania, where it controls 100% of Winmarkt. Its headquarters is located in Bologna, Italy.

INTRODUCTION 11IGD SIIQ - 2014 Sustainability Report

PIEMONTE

TOSCANA

CAMPANIA

SICILIA

LAZIO

LOMBARDIA

VENETO

MARCHE

ABRUZZO

EMILIA ROMAGNA

TRENTINO ALTO ADIGE

IGD’S PORTFOLIO – ITALY AND ROMANIA

TURDA

RAMNICU VALCEA

BAZAU

BRAILASLATINA

ALEXANDRIA

CLUJ

BISTRITA

PIATRA NEAMTVASLUI

GALATI

TULCEA

Real estate units in 11 italian regions:

Shopping center+ 1 office buildingin 13 different romanian medium sized cities

56

14

19 shopping malls and retail parks

2 city center

1 property held for trading

3 plots of lands for development

7 other

24 Hypermarkets and supermarkets

PLOIESTI

INTRODUCTION12 IGD SIIQ - 2014 Sustainability Report

As at 31/12/2014 IGD’s sharehold-ers were:

IGD’s business consists mainly of:

1. The purchase and rental of properties, both existing and newly created;

2. The optimisation of its real estate portfolio yield:

• Business policies and marketing initiatives that reinforce the attractiveness of the shopping centres;

• Property optimisation policies such as of improvement measures (extensions or restyling) and maintenance activities (ordinary and supplementary)

3. The disposal of freehold real estate that is no longer strategic or that has reached an advanced stage in its life cycle.

From a corporate point of view, the most important changes that took place in 2014 were the follow-ing:

• Capital increase (200 million) aimed at reinforcing the asset and corporate structure and for the acquisition of one Shopping Centre, two hypermarkets and two supermarkets

• Completion of important extensions and restyling (Centro d’Abruzzo and Le Porte di Napoli)

• Divestitures, with the disposal of Galleria Fonti del Corallo to a reserved real estate fund managed by BNP Paribas REIM Sgr.

• Transfer of 10.9 million IGD treasury shares to the Quantum Strategic Partners Ltd. At the same time Unicoop Tirreno transferred to the same buyer 6.4 million of its IGD shares. The amount of shares transferred corresponded to 5% of the share capital. The fund, managed by Soros Fund Management LLC, therefore became the Company’s third largest shareholder.

• An agreement was signed aimed at promoting real estate funds specialised in the commercial/retail segment with the acquisition by IGD of 20% of the share capital of UnipolSai Investimenti SGR S.p.A.

Please refer to the Group’s Financial Statements for further details: http://www.gruppoigd.it/

43,99%

5,05%

12,93%

38,03% COOP ADRIATICA SCARL

QUANTUM STRATEGIC PARTNERS LTD

UNICOOP TIRRENO

FREE FLOAT

Indicator 2014

NUMBER OF EMPLOYEES 117 Italia / 51 Romania

NUMBER OF ACTIVITIES/QUANTITY OF PRODUCTS OR SERVICES 56 property units in Italy and 14 in Romania

OPERATING REVENUES € 122,403,000

TOTAL CAPITALISATION € 487,849,806

TABLE 1 Scale of the organisation as at 31/12/2014 (G4-9)

INTRODUCTION 13IGD SIIQ - 2014 Sustainability Report

Furthermore, with regard to social responsibility, IGD participates in international benchmarks, ques-tionnaires or assessments on sustainability performance such as the Carbon Disclosure Project (CDP) or the Global Real Estate Sustainability Benchmark (GRESB). It has also been included in the FTSE ECPI Italia SRI Benchmark Index.

TABLE 2 List of associations and national/international advocacy organisations in whichthe organisation participates in projects and committees or provides funding

Organisation Membership with payment of membership fee

Participation in projects and committees

Participation in governance body

ASSOIMMOBILIARE x

ASSONIME x x

CONSIGLIO NAZIONALE DEI CENTRI COMMERCIALI (CNCC)(Italian Council of Shopping Centres) x x x

IMPRONTA ETICA x x

LEGACOOP ROMAGNA x

NOMISMA x

UNINDUSTRIA BOLOGNA x

EUROPEAN PUBLIC REAL ESTATE ASSOCIATION (EPRA) x

CONFINDUSTRIA ROMANIA x x

CAMERA DI COMMERCIO ITALIANA PER LA ROMANIA(Italian Chamber of Commerce for Romania) x x

IGD’s memberships (G4-16)_The list of organisations which IGD is a member of in various capacities can be seen in the table below.

Supply chain (G4-12)_When carrying out its business, IGD cooperates with two different categories of suppliers: service suppliers (facility management) and building and maintenance suppliers. The supply chain is made up of a mix of local companies (52% of the total) and larger national or international ones. The former are, in particular, suppliers to individual Shopping Centres, whereas the business that the latter con-duct with IGD is often of a greater magnitude.

Precautionary approach (G4-14)_IGD’s precautionary approach is demonstrated by the implementation of the Enterprise Risk Manage-ment model (ERM – see Section 1 of this Report) and by the activation of the Environmental Manage-ment System (EMS – see Section 2).

SOCIAL RESPONSIBILITY AND MATERIALITY 14 IGD SIIQ - 2014 Sustainability Report

Social responsibility and materiality_

IGD_Headquarter

Internal organisation of Social Responsibility (G4-48)_Starting in 2011, IGD structured its approach to Social Responsibility by forming a Sustainability Com-mittee and by including a role within its organizational structure that also deals with this issue.

The Sustainability Committee is made up of 4 permanent members from different areas of the com-pany:

• Chief Operating Officer;

• Head of Planning, Control and Investor Relations;

• Head of Investment analysis and planning;

• Marketing and Social Responsibility.

The Committee formulates proposals regarding CSR strategies and targets to be submitted to the Operating Management (made up of the Chief Executive Officer, the Chief Operating Officer and the Heads of the various Divisions/Services). The Chief Operating Officer, therefore, is the Operating Man-agement’s representative on the Committee.

In defining sustainability policies, the Operating Management assess the Committee’s proposals and recommends the Social Responsibility guidelines, providing a “frame” within which the Committee refines the operating strategies and monitors the development of those activities necessary to reach the targets.

The Committee is also responsible for managing reporting activities on CSR performance.

SOCIAL RESPONSIBILITY AND MATERIALITY 15IGD SIIQ - 2014 Sustainability Report

Social Responsibility strategy_Starting from the 2011 Sustainability Report, IGD included specific targets around each of its stake-holder groups. This was IGD’s first attempt at developing a social responsibility strategy, which, right from the start, called for the participation of a large part of the workforce to implement those activi-ties that could help each target to be reached.

In 2013 IGD worked to define its own social responsibility strategy, based on targets and activities. The outcome of this work, which was the result of a participatory process coordinated by the Sustain-ability Committee and which involved Managerial Staff and Department Heads and was approved by the Operating Management, was included in the Company’s 2014-2016 Business Plan.

The targets defined and the activities identified were:

INTERPRET THE NEEDS IN A CHANGING ENVIRONMENT

Structuring of stakeholder engagement: periodic monitoring of the satisfaction of tenants and visitors (including events), banks and investors (on CSR topics) and employees (on corporate climate)

INCREASE IN QUALITY AND EFFICIENCY OF CENTERS

ISO 14001 roll out planand BREEAM certification of portfolio asset

Specific work undertaken for energy consumption reduction

Application of the usability guidelines for disabled peoplein the centers

REINFORCE THE CONCEPT OF «SPACES TO BE LIVED IN»

Strong focus on integratedcommunication strategies

Use of the latest means of communication (i.e. apps)


Thus an authentic social responsibility “cycle” was structured which, starting with sustainability planning, is made up of 4 consecutive phases:

This Sustainability Report, therefore, is particularly significant as it refers to 2014, the first year in which sustainability issues were included in corporate planning.

The review of the Plan, which should take place during the first six months of 2015, will refer to the contents of this document to assess the results reached, in order to update or reformulate the sustain-ability strategies for the years 2015-2018.

PLANNINGIDENTIFY THE LONG-MEDIUM TERM AND SHORT TERM SUSTAINABILITY

TARGETS AND THE ACTIONS NECESSARY TO REACH THEM

MONITORINGASSESS THE RESULTS OBTAINED BY MEANS OF THE SUSTAINABILITY REPORT

IMPLEMENTATIONPUT INTO PRATICE THE ACTIONS DEFINED IN THE PLAN

IMPLEMENTATION OF IMPROVEMENT

ACTIONS IF NECESSARY

CSR PLANNING CYCLE

Materiality (G4-19; G4-20; G4-21; G4-48)_In 2014 IGD carried out its own analysis on materiality to identify the issues that could have a sub-stantial impact, either positive or negative, on the company’s performance. This impact was assessed with regard to the Company and to its stakeholders.

The results of this analysis have had an important influence on the preparation and contents of this Report as well as on the entire Sustainability planning procedure.

The analysis was carried out by the Sustainability Committee on the basis of the GRI-G4 guidelines and it involved the appropriate corporate individuals when required.

The process to identify the material aspects was divided into 4 phases:

IDENTIFY ISSUES

PHASE

1FIRST REVIEW

PHASE

2DEFINE MATERIAL ISSUES

PHASE

3SHARE WITH TOP MANAGEMENT

FASE

4

220 94 15 15NUMBER OF ISSUES


The FIRST PHASE focused on identifying all the possible material aspects emerging from various sources, both internal and external ones. Amid the internal sources, analysis was carried out on offi-cial corporate documentation, such as the Business Plan, the Code of Ethics, the Sustainability Report and the Guidelines for each stakeholder contained within the Report. Amid the external sources, those subjected to analysis were the Reports by peer-group companies, the guidelines of associations in the sector (EPRA), the survey boundaries of the most important international benchmarks in which IGD participates (CDP and GRESB) and the results of specific consumer research. The “voice” of IGD’s stakeholders was also analysed by gathering together all the initiatives of stakeholder engagement in existence in the company (please refer to those contained in the table in section 3.1 of this Report). 220 issues emerged from this first phase.

In the SECOND PHASE each issue was verified, analysed and rationalised so as to eliminate overlaps or duplicates. After this “desk” phase carried out by the Marketing and Social Responsibility Office, the number of potential material issues dropped to 94. Once this list was defined, the importance that the stakeholders give to each identified aspect was then attributed by using both the sources previously analysed and also specific interviews that were carried out by IGD representatives who liaise directly with stakeholders.

The THIRD PHASE led to the determination of the material issues by the Sustainability Committee which judged the importance of each issue that emerged from the previous phase. The number of material issues at this point amounted to 15.

In the FOURTH PHASE the Sustainability Committee shared both the contents that had arisen and the process that had been followed with the Operating Management, who in turn approved the aspects identified in the previous phase. The material aspects identified were positioned in a matrix with the horizontal axis representing the importance for IGD and the vertical one the importance for its stake-holders. 5 important (but not material) aspects were also identified which IGD undertakes to monitor closely. The 15 material issues were grouped together, starting from this phase, to form 5 macro is-sues which represent the 5 priority lines of action for IGD on sustainability issues and, because of this, the 5 sections of this Report.

MED

IUM

HIG

H

IMPORTANT ASPECTS

MATERIAL ASPECTS

MATERIAL ASPECTS

IMPORTANT ASPECTS

IMPA

CT F

OR

STA

KEH

OLD

ERS

MEDIUM HIGH

IMPACT FOR IGD

Quality and efficiency of the Shopping Centres• Environmental impact of the structures• Attractiveness and liveability of the Shopping Centre

A changing context • Stakeholder engagement and awareness

The concept of “Spaces to be lived in”• Social role of the Shopping Centre• Territorial Importance• Communication• Innovation

Employees• Steady and attractive employment• Equal opportunities and diversities• Internal culture• Employee wellbeing

Integrity in business and management• Corporate Governance• Transparency• Legality• Operate ethically

• Health and safety• Privacy• Change in population

• Ethical Investors• Rotation of suppliers

This “Matrix of materiality” is given in each of the 5 sections in this Report, highlighting the material issues discussed in that section.


Macro issue Material issue G4 category G4 material aspect Indicator Material within

the organisationMaterial outside the organisation

QUALITY AND EFFICIENCY OF THESHOPPING CENTRES

Attractiveness and liveability of the SC x

Visitors - Tenants

Environmental impact of the structures (direct and indirect) along the entire production chain (from construction to operational management)

Environmental Energy; Water; Emissions; Effluents and Waste

Energy: G4-EN3; G4-EN5 CRE1; Water: G4-EN8; CRE2; Emissions: G4-EN15; G4-EN16; G4-EN18 CRE3; Waste:G4-EN23; Certifications: CRE8

x

Visitors - Local community - Tenants - Environment

INTERPRETATION OF A CHANGING CONTEXT

Stakeholder engagement and awareness

Stakeholder engagement

Stakeholder engagement

G4-24 G4-25 G4-26 G4-27 x

CONCEPT OF SPACES TO BE LIVED IN

Social role of the Shopping Centre * x

Visitors - Local community - Tenants

Territorial importance Social Local Communities G4-SO1

xVisitors - Local community - Tenants - Suppliers

Communication * xInnovation * x Visitors

PEOPLE Employee wellbeing Social Labor Practices and decent work-Employment

LA-2 e LA-3x

Internal culture (sense of belonging, assessment, growth, communication)

Social Labor Practices and decent work-Training and education

LA-9

x

Steady and attractive employment

Social Labor Practices and decent work-Employment

LA-1x

Equal opportunities and diversities

Social Labor Practices and decent work-Diversity and equal opportunities

LA-12

x

INTEGRITYIN BUSINESS AND MANAGEMENT

Corporate governance Governance

Governance

G4-34; G4-38; G4-LA12; G4-42; G4-43; G4-44; G4-45; G4-46; G4-47; G4-51; G4-52; G4-53

x

Shareholders and financial community

Transparent information * x

Shareholders and financial community

Legality * x Suppliers - Tenants

Operate ethically Ethics and integrity

Ethics and integrity

G4-56 x Visitors

NB: the aspects marked with an asterisk (*) are not directly connected to the aspects identified by the GRI-G4. This Report specifies in the DMA shown below how they are dealt with by IGD and reported with specific indicators.

Correspondence betweenthe material aspects and the GRI-G4 aspects_


Information and management method (“Disclosure on Management Approach” – DMA)_

Issue Why the issue is material Management tools implemented

ATTRACTIVENESS AND LIVEABILITY OF THE SHOPPING CENTRES

Attracting visitors to its Shopping Centres is IGD’s core business. Attractiveness also depends on the ability to ensure that those who visit the Malls have a pleasant time (including people with particular needs)

• Expansion and renovation of the Shopping Centres

• Continuous search for new brands

• Broadening of services offered (starting with dental clinics)

• Carrying out of work to improve accessibility to the Centres for individuals with disabilities

ENVIRONMENTAL IMPACT OF THE STRUCTURES

Quality and efficiency of the Shopping Centres can be guaranteed by carrying out work and measures capable of making the structures attractive both in the short term and the long term. Environmental sustainability is an element that has an impact on attractiveness as it has an influence on important factors for the visitors (starting with lighting and temperature inside the Mall). Furthermore, an environmentally unsustainable Shopping Centre is also expensive to run (more maintenance, more frequent change of systems etc.).

• Continuous monitoring of energy consumption

• Management measures

• Structural work

STAKEHOLDER ENGAGEMENT AND AWARENESS

Stakeholder engagement forms part of the strategic guidelines contained in IGD’s 2014-2016 Business Plan. The need is that to establish a dialogue with its interlocutors aimed at understanding ongoing changes by means of all the available channels, especially during a time of economic crisis.

• Over the last two years IGD has equipped itself with an operational plan aimed at engaging its stakeholders in a structured and continuous manner, both in business issues and in those chiefly characterised by social responsibility

SOCIAL ROLE OF THE SHOPPING CENTRE

IGD Centres, as out and out “Spaces to be lived in”, are confirmed as being a hub and a stage where a wide range of various events follow one another week after week. IGD intends to guarantee a programme that combines commercial, solidarity, recreational-sports and local events.

• Marketing Plan that unites commercial and social issues

• Cooperation with NGOs and NPOs to guarantee the social nature of events in the IGD structures

TERRITORIAL IMPORTANCE

The Shopping Centre represents an important “space to be lived in” for the local area it is situated in, due to the following impacts:

1. employment (capable of offering job opportunities to employees and suppliers)

2. commercial (capable of bringing together the commercial offer of the tenants and the needs of the local inhabitants)

3. social/meeting place (capable of increasing recreational opportunities for local inhabitants)

if these impacts on the local area were not taken into consideration, the economic sustainability of the Shopping Centre would be rendered difficult.

• Focus on the territory when selecting tenants that are locally appealing

• Inclination towards local suppliers, especially for those jobs where knowledge of the local area represents an added value

• Cooperation with local associations to organise events capable of arousing the highest level of local enthusiasm.

COMMUNICATION Communication for IGD means interacting with the outside world, bearing in mind:

1. the need to represent both the “institutional” requirements and those of the commercial network

2. the variety of information means available (and usable).

For this reason, the 2014-2016 Business Plan speaks about “integrated communication”, and the “Spaces to be lived in” represent the contents of the communication.

• Development interaction with its stakeholders by using social networks

• IGD’s recognisability on the web (by means of common graphic design)

• Creation and implementation of specific apps for several Shopping Centres

INFORMATION AND MANAGEMENT METHOD_CONTINUE >


Issue Why the issue is material Management tools implemented

INNOVATION Innovation, for IGD, means, first of all, providing the visitors to its Shopping Centres with avant-garde solutions so that their shopping experience is periodically updated to satisfy their changing needs.

• Continuous comparison with parties of interest to understand their needs and identify the most appropriate solutions

EMPLOYEE WELLBEING

For IGD the wellbeing of its employees, considered as being a factor with an important impact on the internal atmosphere, is an issue deserving constant attention and improvement

• Assessment of wellbeing by monitoring specific indicators (for example, “related stress”)

• Preparation of a plan aimed at corporate welfare

INTERNAL CULTURE (SENSE OF BELONGING, ASSESSMENT, GROWTH, COMMUNICATION)

For IGD, the proper management of its internal processes is a distinctive feature which took on particular importance following the results of the 2011 internal atmosphere assessment, where several issues regarding internal relations received below average marks.

• Appropriate training to satisfy needs, both individual and those of the entire workforce

• An award system that recognises personal development and results obtained

• Internal communication capable of satisfactorily circulating the necessary information

STEADY AND ATTRACTIVE EMPLOYMENT

Taking into consideration the high percentage of permanent contracts and the good opinion that the employees have of the company (source: Internal Atmosphere Assessment), IGD sees fit to continue to guarantee this occupational stability, which at the same time is characterised by being an attractive place of work both to the employees that currently work for the company and to the best human resources from the outside world.

• Monitoring of company attractiveness by means of periodic Internal Atmosphere Assessments

• - Introduction of the necessary roles in the workforce, especially in light of the tax relief included in the new Italian labour legislation (“Jobs Act”)

EQUAL OPPORTUNITIES AND DIVERSITIES

IGD has always placed a lot of focus on the issues of equal opportunities and diversities, starting with its own employees. This can be demonstrated by the high percentage of female workers out of the total (both in Italy and Romania). At the same time, however, it does not underestimate the not so high female presence in top positions.

• Monitoring of indicators regarding gender in the various company roles

CORPORATE GOVERNANCE

In line with the contents of the Code of Conduct, IGD has an effective governance system. This is a very important issue for its investors and financial community.

• Yearly “Board review” system

• Report on Corporate Governance in the Financial Statements available on the website

TRANSPARENT INFORMATION

Transparency and accessibility to information are distinctive features which represent the relationship between IGD and its institutional stakeholders, especially the shareholders and financial community. This characteristic is recognised by the stakeholders themselves during their communication activities with IGD

• Continuous information on IGD’s daily business by utilising all necessary tools, by means of both traditional meetings (face to face or group) and also web technologies

LEGALITY IGD undertakes both to abide by the laws when carrying out its daily work and to promote compliance with the law within its stakeholders.

• Continuous monitoring of the more important risks of illegality that the company is exposed to.

• Updating of internal rules and regulations

• Preparation of internal procedures to obtain a voluntary assessment of its legality rating (see Legality Rating)

OPERATE ETHICALLY

The aim set by IGD for its conduct is both to personally act in an ethical manner, in accordance with its inspirational principles, and to positively influence the context in which it operates.

• Code of Ethics

• IGD’s mission and values

INFORMATION AND MANAGEMENT METHOD_CLOSE >


2014 Targets_The progress report on the level of achievement of the targets set for 2014 can be seen below, along with the reference to the section in this Sustainability Report which deals with the issue and explains the actions carried out.

Macro issue Material aspect Issue Specific targets 2014 Level of achievement

Page number in Report

INTEGRITY IN BUSINESS AND MANAGEMENT

Corporate governance Fairness for minority shareholders Implement and improve all support tools for shareholders (continuous Italy) ( H ) 30-31

Transparent information Transparency and accessibility to information

Analyse the feasibility of a process that leads to the organisation of meetings with investors on the issues of Social Responsibility (2014 Italy) ( M ) 31

Legality Legality as the basis of relations Continuation of the rotation of contracts, starting from yearly ones due to expire, with focus both on economic terms and on the reliability of suppliers (continuous in Italy and Romania)

( M ) 33

QUALITY AND EFFICIENCY OF THE SHOPPING CENTRES

Attractiveness and liveability of the Shopping Centres

Attractiveness as a target in common with the tenants

Introduction of new brands capable of creating an increase in visitors to the Shopping Centres (continuous Italy) ( H ) 52

Merchandising and tenant mix operational for placement target

Increase in number of fitness areas to enhance wellness programmes in the local community (2014 Romania) ( M ) 53

Usability of the Shopping Centres for everybody

Accessibility to Centres for individuals with disabilities: continuation of the implementation of what emerged from the survey regarding individuals with disabilities (2014 Italy)

( H ) 53

Presence of necessary services Implementation of more wifi zones in the Gameland play areas (2014 Romania) ( H) 72


Environmental certifications Extension of ISO 14001 certification to new Shopping Centres, as per the Roll Out Plan (2013-2018 Italy) ( H ) 49

Environmental certifications Attainment of BREEAM certification for one Shopping Centre (2015) ( In process ) 43

Reduction in environmental impact of investments

Continuation of heat insulation improvement in its structures (time span 2012-2014 Romania) ( H ) 43


Launching of Energy Management pilot project in the Shopping Centre in Cluj (2014 Romania) ( H ) 43

Development of planning that is integrated into the area of reference of each Centre

Feasibility study for the introduction of a photovoltaic system in the new Shopping Centre in Chioggia (2014 Italy) ( H ) 43

Management and monitoring strategy (governance) of environmental issues

Installation of divisional meters in the majority of freehold Centres, capable of recording and analysing specific consumption in each individual area of the Shopping Centre (2013-2014 Italy)

( H ) 42

A CHANGING CONTEXT


Awareness raising in all its stakeholders for greater environmental protection by means of reduction in consumption and wastage, waste disposal management etc.

Involvement of visitors for the promotion of good environmental practises (continuous Italy) ( M ) 46; 63


Initiate involvement by investors and financers in specific issues of IGD’s corporate social responsibility (2014 Italy) ( L ) 59


Assessment of visitor satisfaction both in general regarding the Shopping Centre, and in particular regarding the events held, by means of specific customer and event satisfaction surveys (2014 Italy)

( H ) 60-63


Updating of atmosphere assessment (2015 Italy) ( 2015 target ) 59


Growing involvement of suppliers on matters relating to sustainability (continuous Italy) ( M ) 58; 63

Tenant engagement and cooperation

Carrying out of tenants’ satisfaction survey in 3 other Shopping Centres and identification of an area for improvement on which to work at a later stage (2014 Italy) ( M ) 62

THE CONCEPT OF SPACES TO BE LIVED IN

Communication Integrated communication Pilot project of 2 apps in the same number of Shopping Centres (2014 Italy) ( H ) 75

Integrated communication Extension of the Winmarkt project on Facebook (marketing of activities/events and visitors’ feedback) (2014 Romania) ( H ) 75

Social role of the Shopping Centre

IGD spaces to be lived in Organisation and co-marketing of events open to the public in connection with the opening of international brands (2014 Romania) ( H ) 72

IGD spaces to be lived in Co-marketing events during the 2014 Brazil World Cup (Ploiesti) (2014 Romania) ( H ) 72

PEOPLE Employee wellbeing Corporate Welfare Development of a corporate welfare project (2014-2015 Italy) ( H ) 93


Suitable management of internal processes (including internal communication)

Start up and implementation of internal communication project (2014 Romania)

( L ) 88

THE LEVEL OF ACHIEVEMENT IS ASSESSED AS H (HIGH), M (MEDIUM), L (LOW).


Sustainability Plan 2015-2018_The Sustainability Plan, which is an integral part of the 2015-2018 Business Plan, identifies the targets that IGD intends to reach in the period. To achieve them, the company identifies yearly steps, the first of which refers to 2015.

SUSTAINABILITY PLAN 2015-2018_CONTINUE >

Macro issue Material aspect Issue Targets 2015-2018 Specific targets 2015

INTEGRITY IN BUSINESSAND MANAGEMENT

Corporate governance

Corporate governance Increase the influence of the Sustainability Committee

Assess the possibility of asking the BoD for one of its Directors to participate in the Sustainability Committee

Transparent information

Transparency and accessibility to information

Increase the visibility and usability of the results of IGD's commitment to CSR

Assess the possibility of participating with investors in meetings on Social Responsibility issues

Transparency and accessibility to information

Increase the tools to ensure transparent communication with the investors

Organise an Investor Day

Legality Legality as the basis of relations

Obtain the maximum level possible in the Legality Rating


Attractiveness and liveability of the Shopping Centres

Attractiveness as a target in common with the tenants

Invest in the multi-channel system, adapting, where necessary, the structures and altering the layouts if required and if compatible with costs

Merchandising and tenant mix operational for placement target

Include new brands to increase traffic (with particular focus on new foreign brands not yet present in IGD Shopping Centres)

Participate in at least one initiative abroad aimed at meeting potential new brands interested in opening stores in the IGD Shopping Centres

Usability of the Shopping Centres for everybody

Continue to render IGD Shopping Centres more and more accessible to everyone

Include suggestions in the tenant handbook on actions that the tenants should take to render their store more accessible

Presence of necessary services

Increase the presence of services in the Shopping Centres

Introduce prevention or healthcare related services in the temporary spaces in the Malls (by cooperating on an occasional basis with organisations that deal in this matter)

Shopping Centre management (hospitality, security, cleaning)

Objectively assess the management of the Centre by way of specific visitor surveys

Carry out surveys on hospitality, cleaning and security in at least two Shopping Centres


Environmental certifications

Obtain ISO14001 certification for 90% of the company portfolio (2013-2018)

Extend ISO 14001 certification to 3 new Shopping Centres, as per roll out Plan (2013-2018)

Environmental certifications

Extend the boundary of BREEAM certified Shopping Centres

Assess feasibility of BREEAM certification in a second Shopping Centre (in addition to Centro Sarca)


Further reduce energy consumption in the buildings (following the drop of 12% 2012-2014)

Reduce electricity consumption by 3% (like in the first year)


Assess the possibility of installing photovoltaic systems in the IGD Shopping Centres

Examine the feasibility of installing photovoltaic systems following the new regulations on the matter


Improve efficiency in systems by assessing the correct functioning of the monitoring system

Carry out at least one pilot project in a Shopping Centre

Reduction in environmental impact of investments (Romania)

Extend the energy management project to all Winmarkt Shopping Centres


SUSTAINABILITY PLAN 2015-2018_CLOSE >

Macro issue Material aspect Issue Targets 2015-2018 Specific targets 2015

A CHANGING CONTEXT


Awareness raising in all its stakeholders for greater environmental protection by means of reduction in consumption and wastage, waste disposal management etc.

Place signs on IGD's commitment to the environment in all the Shopping Centres

Place signs on IGD's commitment to the environment in the ISO14001 certified Centres


Periodically monitor visitors' satisfaction by means of specific surveys

Carry out at least two event satisfaction surveys in all the Shopping Centres


Continue with the internal atmosphere assessment

Carry out internal atmosphere assessment


Monitor tenants' satisfaction by means of specific surveys

Carry out two tenant satisfaction surveys in the same number of Shopping Centres

Tenant engagement and cooperation

Increase tenant engagement on environmental issues

Create an environmental good practices handbook to improve conduct in each store

THE CONCEPT OF SPACES TO BE LIVED IN

Communication Integrated communication Assess the possibility of continuing with the Shopping Centre apps

Assess the visitors' satisfaction on the two apps created up to now

Integrated communication (Romania)

Identify a strategy for presence on the social networks both with regards to the Shopping Centres and the headquarters (Romania)

Extend the "Winmarkt on Facebook" project to all the Shopping Centres

Innovation Innovation of the Shopping Centres

Identify possible areas for innovation and assess the subsequent implementation by means of a cost/benefit analysis

Social role of the Shopping Centre

Marketing that combines the business plan with the social one (Romania)

Offer accessible events that combine social issues with recreational-sports ones and commercial ones

Carry out an across-the-board event in multiple Shopping Centres on disabilities/sports/art

Marketing that combines the business plan with the social one (Romania)

Portray the presence of Winiland in Winmarkt Shopping Centres as an appealing element with an educational value

Promote recreational-educational activities in cooperation with schools (where Winiland is present)

Territorial importance

Focus on local territory Make IGD's presence in each Shopping Centre's local territory felt even more by means of events

Ensure that at least 30% of events held in the IGD Shopping Centres are of social-territorial value

PEOPLE Employee wellbeing

Corporate Welfare Implement a corporate welfare system Prepare the welfare system and initiate the first operational actions


Development of resources (training, autonomy, responsibility, role)

Organise a study tour abroad Aim training at specific technical needs

Suitable management of internal processes

Inform IGD employees about the sustainability results obtained

Identify the most appropriate ways in which to communicate sustainability results

Suitable management of internal processes (Romania)

Improve the internal communication process

Launch and implement a project on internal communication


Steady workforce Assess the opportunities offered by the new Italian legislation on labour in relation to organisational needs

Assess the possibility of strengthening the workforce in the areas in need

IGD_Headquarter

INTEGRITY IN BUSINESS AND MANAGEMENT

1_

1_INTEGRITY IN BUSINESS AND MANAGEMENTIGD SIIQ - 2014 Sustainability Report26

% of least represented category in the Board of Directors

Directors out of 15 are independent

Position of IGD website in Italian Webranking

HIGHLIGHTS:

20%

8

Corporate governance

Transparency

Legality

Operate ethically

STAKEHOLDERS INVOLVED:

Suppliers

Integrity in business and management_

MED

IUM

HIG

H

MEDIUM HIGH

16th20th IN 2013

Shareholders and Financial Community

Tenants

1_INTEGRITY IN BUSINESS AND MANAGEMENT IGD SIIQ - 2014 Sustainability Report 27

1.1 Corporate governance_1.1.1Governance structures and their composition(G4-34; G4-38; G4-LA12)_The Board of Directors, appointed by the Share-holders’ Meeting on 19th April 2012 and which will remain in office for three financial years, is made up as follows:

• 15 members • The majority of the directors are independ-

ent (8 out of 15, equal to 53%)• 3 are female (20% of the total), ahead of the

coming into force of Law 120/2011, which

stipulates that a fifth of the places on the Board of Directors and the Board of Statu-tory Auditors must be reserved for the least represented category, starting from the renewal subsequent to a 12 month period after the Law came into force (i.e. after 12th August 2012).

• Average age of 62, with the following break-down by age group:

3%

87%

over 50 30-50

CHART 1 Breakdown of Board of Directors by age group


In accordance with the provisions of the Articles of Association and the Consolidated Finance Act, the Board of Directors and the Board of Statutory Auditors are informed about the ac-tivities carried out, the company’s general oper-ating performance, its expected developments and the most important economic, financial and asset related transactions carried out by the Company. In particular, the Chief Executive Of-ficer reports to the Board of Directors about the company’s economic performance on at least a quarterly basis.With specific reference to social and environ-mental issues, the Board of Directors are kept informed both annually, with regard to the re-sults obtained by means of the presentation of the Sustainability Report and also periodically, with regard to the main actions undertaken.The Board of Directors established within the Board itself the following committees:

1. Chairman’s Committee (in accordance with the Code of Conduct)

2. Control and Risks Committee (in accord-ance with the Code of Conduct)

3. Nomination and Compensation Committee (in accordance with the Code of Conduct)

4. Committee for Related Party Transactions (in accordance with Consob Regulations on Related Party Transactions)

The Board of Directors also appointed, within the Board itself, a Lead Independent Director, to act as the point person and coordinator for the motions and contributions of the non-executive directors and, in particular of the independent ones. In accordance with Legislative Decree 231/2001, the company also set up a Compli-ance Committee.With the exception of the Chairman’s Commit-tee (made up of the Chairman, Vice Chairman, Chief Executive Officer and a Director), the other Committees are exclusively made up of Inde-pendent Directors.

For further information on the Board of Direc-tors and IGD’s corporate governance, please refer to the company website: http://www.gruppoigd.it/Governance/Consiglio-di-ammin-istrazione

1.1.2Roles and expertise of the Board of Directors (G4-42; G4-43; G4-44)_The Board of Directors has a key role in the de-termination, approval and updating of the orga-nisation’s objective, values, mission, strategies, policies and targets. It:

• examines and approves the Company’s stra-tegic, business and financial plans, which also include the sustainability targets which have been included in the Business Plan since 2013;

• assesses the general operating performance, by taking into consideration, in particular, the information received from the delegated bo-dies as well as by periodically comparing the results achieved with those programmed.

Furthermore, IGD, in line with the approach it has been using since 2009, has encouraged over the years the setting up of seminar meetings, with

the participation of the Directors and Statutory Auditors. These meetings aimed at examining the issues related to the macroeconomic scena-rio and analysing the distinctive features of the Company’s core business and the strategic po-tential where the Company operates.The Directors’ reaction to this commitment ai-med at their professional preparation is posi-tive. This emerged as a strong point also from their self-assessment of their performance (the so-called “Board review”) which has been assi-gned to the consultancy firm Egon Zehnder since 2007. The analysis carried out in 2014, in parti-cular, was concentrated on critical areas iden-tified over the previous years, with particular attention paid to the recommendations that the Board in office can provide regarding the com-position of the Board that will be appointed du-ring the next Shareholders’ Meeting.


1.1.3Risk management (G4-45; G4-46; G4-47)_

1.1.4Remuneration and incentives (G4-51; G4-52; G4-53)_

The Chairman of the Board of Directors is also the Director in charge of the Internal Control and Risk Management system. The Director is assisted by the Control and Risk Committee, made up of 3 independent Directors. Their work forms part of the Risk Management system which IGD has been using since 2010 and which every year enables the risks identi-fied to be monitored and new ones to be defined.The corporate players involved in this process are the Board of Directors, the Control and Risk

Committee, the Board of Statutory Auditors, the Director in charge of establishing and maintain-ing an effective internal control and risk man-agement system, the Compliance Committee, the Financial Reporting Officer, the Head of In-ternal Audit and the Company management.For further details on the Internal Control and Risk Management System please refer to the company website: http://www.gruppoigd.it/Governance/Sistema-di-controllo-inter-no-e-gestione-dei-rischi

All details on remuneration policies adopted by the Company and on company incentives can be seen in the “Remuneration Report” on the com-

pany website: http://www.gruppoigd.it/Gover-nance/Remunerazione

IGD_Headquarter


Transparency and accessibility of information are distinctive features which represent the rela-tionship between IGD and its institutional stakeholders, especially shareholders and the financial

community.

1.2Transparency_

1.2.1Transparency for shareholders _With regard to communication with sharehold-ers, 2014 was a year of change compared to what occurred in the previous three year peri-od: a climate of growing confidence in Italy and the extraordinary financial transactions carried out by IGD led to greater attention being paid to the Company. The consequence of this was

an increase in number of investors that made contact with IGD: from 55 in 2013 to 85 in 2014, 31 of which were new investors. The means of communication used were the traditional ones, along with, for the first time, business network-ing with one to one meetings in the Geneva fi-nancial market.

CONFERENCE CALL ONE-TO-ONEMEETINGS

PARTECIPATIONIN SECTOR

CONFERENCES

ROADSHOW FOR INVESTORSAND ANALYSTS

FIELD TRIPS

14

12

10

8

6

4

2

0

5

1 1

12

7 76

4

0

4

2 2 22

9

2014 2013 2012

CHART 2 Summary of Investor Relations activities


During the year IGD started to participate with investors in international meetings on social responsibility issues (for example, the ESG/SRI Conference which Societe Generale and Invest-ment Banking organize every year in Paris), and it has every intention of participating again in 2015. Conference calls represent a traditional

way of getting together with analysts and in-vestors. 5 were organised in 2014, four of which were to present the quarterly results and one to launch the capital increase and announce the acquisition of a strategic real estate portfolio. The total number of participants in these events increased.

Conference call 2014 (N) 2013 (N) 2012 (N)

NUMBER OF PARTICIPANTS 82 78 65

- OF WHICH ITALIAN 55 48 36

- OF WHICH FOREIGN 27 30 29

- OF WHICH INVESTORS 34 31 27

- OF WHICH ANALYSTS 24 23 20

- OTHER (BANKS, CONSULTANTS AND IGD EMPLOYEES) 24 24 18

Website 2014 (N) 2013 (N) 2012 (N) Variation % 2014/2013

NUMBER OF VISITS 78,963 65,625 54,681 20%

NEW VISITORS (SINGLE VISITORS) 58,686 49,789 37,093 18%

LENGTH OF TIME IN MINUTES ON WEBSITE (AVERAGE) 2.42 2.31 2.56 5%

VISITORS THAT RETURN 21,245 16,604 18,206 28%

PRESENCE ON THE WEB

In addition to these direct dialogue tools, an important part of IGD’s institutional commu-nication system is carried out by continuously updating its website, which plays an important role in ensuring transparent, complete and in-stantaneous access to corporate information for both private and institutional investors on a global level. The results in 2014 confirm the stakeholders’ appreciation with regard to the results achieved by this tool:

1. Further improvement in IGD’s position in

the Italian Webranking, the ranking that the company Comprend carries out every year to examine the quality of online commu-nications by listed companies.IGD climbed from 20th place in 2013 to 16th place in 2014: no other company with a market cap-italisation lower than IGD’s is above it in the ranking.

2. Increase in website traffic. All the indica-tors, both those regarding frequency and those regarding length of time, showed an increase.

TABLE 1 Conference call participants

TABLE 2 Website numbers (source: Google Analytics)


1.2.2Transparency for the financial community_The good outcome of the extraordinary trans-actions carried out during the year is also the result of continuous and transparent relations that IGD has been able to maintain with the 20 credit institutions it has worked with. These institutions report to 14 banking groups, 7 of which are classified in the top 10 in Italy (source: Milano Finanza).The extraordinary activities also resulted in a rise in number of individual meetings organised every year with the Banks: already in 2013 there was an increase compared to the previous year, due to the refinancing transactions carried out during the year, and yet in 2014 there was a fur-ther increase of 50%. This includes the data re-

ferring to conference calls (98), organised so as to make meetings with such a high number of interlocutors effectively possible.

Transparency of information and accessibility to it are also both guaranteed by the annual meet-ing IGD organises to analyse its Financial State-

ments together with the banks that it works with. A total of 11 credit institutions participated in the 2014 meeting.

2014

2013

2012

0 50 100 150 200 250

221

147

86

Significant increase of meetingswith banks

IGD_website homepage

CHART 3 Summary of Investor Relations activities


1.3 Legality_IGD undertakes both to abide by the laws when

carrying out its daily work and to promote com-pliance with the law within its stakeholders.

The issues where more focus is placed are compliance with labour legislation (safety and payment), criminal background of stakeholders and organised crime.

For this reason it introduced:

• An express termination clause in tenants’ contracts in the event of problems related to the non-compliance with working condi-tions laid down by the law;

• Obligation to issue a surety in service con-tracts (cleaning and security) to guarantee the use of legal forms of employment;

• A general system of suppliers turnover in order to continuously control their requi-sites;

• An express termination clause for those suppliers that in tender contracts do not comply with the obligation to present and update every 6 months the non-involve-ment in organised crime certification issued by the relevant Prefecture;

• Express termination clauses in tender con-tracts in the event of non-compliance with the traceability of financial flows procedure;

• Express termination clauses in tender con-tracts in the event of conviction, even if it has not yet become final, for felonies as-sociated with organised crime against the contracting firm itself or its top manage-ment;

• Obligation to present specific documenta-tion regarding compliance with laws (with particular attention to employment legis-lation) during the prequalification stage in tender contracts.

This commitment, which has always been one of IGD’s distinguishing characteristics, aroused the company’s interest right from the start in “Legality Rating”: this is a tool which companies use to voluntarily ask the Antitrust Authority to rate them in order to obtain a certification re-garding their operational reliability. This assessment involves the awarding of a score of between one and three “stars”, which can be used on the market, both with customers and competitors.

Already back in 2013 IGD started work on a process of adaptingits internal procedures throughan across-the board work group involv-ing the various Divisions. The necessary actions to be taken in order to obtain the maximum score in the Rating were thus identified and several measures were car-ried out.

To obtain Legality Rating, IGD already back in 2013 started work on a process of adaptation of its internal procedures


1.4 Operate Ethically_IGD’s ethical conduct falls within parameters which are represented by the values and contents of its

Code of Ethics. (G4-56)

VALUES

The values which the Group identifies itself with are:

HONESTY

RELIABILITY

OPTIMISATION

RESPONSIBILITY

TRANSPARENCY

FAR-SIGHTEDNESS

because the end (whether personal or corporate) never justifies the means

because “we do what we say” and “we say what we do”

because we work for our tomorrow and for that of the future generations

because we honour our commitments and we do not make choices that jeopardise the continuity of the company

of invested capital, of human capital, of real estate capital, of the environment in which we operate

towards all stakeholders (tenants, suppliers, colleagues,local bodies, …)


THE CODE OF ETHICS

The Code of Ethics was approved by the Board of Directors in March 2006 and it has under-gone several timely modifications to adapt it to changes in legislation, without altering its sense or benefits. It contains the values and principles that inspire and characterise the Company’s conduct in its relations with its stakeholders.

The Code of Ethics is the first element on which the Organisational, Management and Control Model adopted by IGD in accordance with Legis-lative Decree 231/2001, is founded.It is also an integral part of employment rela-tionship. Indeed all employees undertake to conduct themselves in line with the Code itself. IGD also requires, in mandates and tenders, that suppliers comply strictly with the rules and regulations contained in the Organisation-al, Management and Control Model and related Code of Ethics.

The implementation and control procedures of the Code give anyone that learns about breach-es of the principles of the Code itself and/or of the operating procedures which make up the Model, the opportunity to notify (so-called whistleblowing) the Compliance Committee, IGD’s internal body, which is responsible for the control and the updating of the Organisation-al, Management and Control Model and of the Code of Ethics. In 2014 no notification regard-ing breaches were received by the Compliance Committee.

The Code can be downloaded from the company website: http://www.gruppoigd.it/Sostenibili-ta/Bilancio-e-documenti-di-sostenibilita

The aim set by IGD for its conduct in Italy and Romania is both to personally act in an ethical manner, in accordance with its inspirational

principles and to positively influence the con-text in which it operates. An example of the latter is the “Protocol to promote business su-stainability” in Romania.

This document, which Winmarkt defined in 2012, is an appendix to the contract signed by the supplier which commits the latter to behave in such a manner that is consistent with several ethical principles (defined in the document) and failure to do so constitutes a breach of contact.

Signing the Protocol is essential for the contract to be valid, and by signing the Protocol the sup-plier accepts responsibility for the compliance of its conduct with that required and agreed.

In 2013 a compliance committee was estab-lished which oversees the tenders/purchases and expresses its views on:

1. Formal aspects: completeness and validity of the documentation provided by potential suppliers at the ownership’s prior request – early stage control (documentation also regarding possible irregularities identified by the authorities in charge, on the issue of protection of work/contributions)

2. Substantive aspects: correspondence be-tween project and job end also in terms of organisation and protection of the work force employed - later stage control

In 2014 several irregularities were observed with regard to the last point. 6 companies have been entered on the “black list” which Winmarkt drew up with the names of those contractors that were non-compliant and which, as a con-sequence, have been/will be compulsorily ex-cluded from both current and future work and competitive tenders.

2014 2013 2012

NUMBER OF SUSTAINABILITY PROTOCOLS SIGNED 46 16 170

RATIO BETWEEN NUMBER OF SUSTAINABILITY PROTOCOLS/NUMBER OF SUPPLY CONTRACTS SIGNED

23% 7% 100%

NB: The signing of new sustainability protocols refers solely to new suppliers

TABLE 3 Sustainability Protocol performance (Romania)

Visitors’ awareness in Mondovì


2_

2_QUALITY AND EFFICIENCY OF THE SHOPPING CENTRES 38 IGD SIIQ - 2014 Sustainability Report

Quality and efficiencyof the shopping centres_

Energy saving (kWh)

Number of new brands introduced during the year

HIGHLIGHTS: STAKEHOLDERS INVOLVED:

Employees

Visitors and community

Tenants

Environment

Environmental impact of the structures

Attractivenessand liveability of the Shopping Centre

-6,2%COMPARED

TO 2013

214% OF TOTAL

BRANDS

MED

IUM

HIG

H

MEDIUM HIGH

39IGD SIIQ - 2014 Sustainability Report2_QUALITY AND EFFICIENCY OF THE SHOPPING CENTRES

Quality and efficiencyof the shopping centres_

The IGD environmental performance is repor-ted in this chapter.

In order to understand it better, the method used to calculate the indicators is reported be-low.

The EPRA indicators (units of measure, 2014-2013 results, estimate level, level of coverage compared to boundary), the correspondence with the GRI G4 indicators and EPRA sBPR refer-ence codes, are reported in “Appendix”.

2.1 Environmental impact of the structures_

Conè_ Conegliano (Tv)


IGD reports on the environmental impact of its assets by means of environmental perfor-mance indicators required by the EPRA and GRI G4 standards. With regard to the latter, the indicators reported are those referring to material areas of interest for IGD. (see “Social Responsibility and Materiality”)

The environmental impacts reported concern:

• Direct energy consumption* (fuel con-sumption)

• The data refers to 13 Shopping Centres that use methane for heating. 3 Shopping Cen-tres that use district heating and 2 Cen-tres that use heat pumps are not included. The data includes tenants’ consumption purchased by the property. The data sup-plied by the Shopping Centres is in cubic metres. The conversion factor from m3 to kWh is 10.5 m3/kWh (source http://www.eni.com/it_IT/azienda/cultura-energia/fattori-conversione-energia/fattori-con-versione-energia.shtml)

• Indirect energy consumption* (electricity, district heating and cooling).

The data refers to energy produced by and purchased from a third party and convert-ed into electricity or flows.

It includes: 1. that which is required for lighting, hea-

ting and cooling the common areas;2. energy provided to tenants for heating

and/or cooling;3. car park electricity consumption.

The electricity consumption refers to 18 Shopping Centres. There are 3 Centres that use district heating and cooling.

• Direct and indirect greenhouse gas emis-sions* (GHG)

These performance measures are calcu-lated from the energy consumption of the Centres included within the organisation-al boundary outlined above. Direct green-house gas emissions refer to energy pur-chased and consumed on site (fuels). For the calculation of CO2e: ISPRA parameters are used referring to the national atmos-pheric emissions inventory (2.326 tonnes CO2e/toe). Indirect emissions refer to en-

Extent: property consumption and tenants’ consumption

METHODOLOGY - ENVIRONMENTAL DATA

Reporting BoundaryThe “operational control approach”, as de-scribed in the GHG protocol, has been used to define the reporting boundary. This approach best reflects IGD’s environmental impacts as it portrays utilities acquired directly by the organisation as the owner of the assets con-cerned. The 18 assets included in the reporting bound-ary are the Italian Shopping Centres and they represent (in number) 95% of the portfolio, with a value of 1.27 billion Euros. The following assets are not included: • Centro Nova, Centro Piave and Fonti del

Corallo Shopping Centres (Malls in Mas-ter Leasing);

• Porta Medicea (property for trading and is still under development );

• Darsena (Equity share: IGD has no man-agement role);

• Hypermarkets and supermarkets (Out-

side the scope of the “operational control approach” due to FRI leases);

• The two “city centre” properties and the other property units (IGD has no manage-ment role with regard to these properties).

Data referring to the headquarters and to Ro-mania are reported in this chapter, but they are not included in EPRA boundary.The performance indicators are reported ac-cording to two different procedures:• Absolute: regarding the entire reporting

boundary (18 Shopping Centres). • Like-for-like: Excludes assets that are

bought or sold or that are undergoing re-furbishment or extension during the re-porting period. Therefore, Centro d’Abruz-zo and Le Porte di Napoli Shopping Malls are not included. The like-for-like bounda-ry refers to 16 Shopping Centres.

Intensity indicators refer only to absolute data.


ergy produced by and purchased from a third party and converted into electricity or district heating/cooling.

For the calculation of CO2e: 1. for electricity, CO2e arises from the con-

version of consumption expressed in kWh in CO2 equivalent compared to the specific production mix of energy sup-plied to the Shopping Centres (data used: 0.53 Kg CO2e/kWh; source CBEG 2011).

2. For district heating: Guide line 6 2003/87/CE emission trading directi-ve (page 29 and following); Guide line 6

2003/86/CE emission trading directive (page 29 and following). Data used: 0.18 Kg CO2/kWh (2011).

• Water consumption* The data refers to all the centres that fall

within the reporting boundary and in-cludes water consumption both in com-mon areas and by tenants.

• Waste The data referring to 5 Shopping Centres,

where waste disposal is carried out direct-ly by the Municipality, is not available and is therefore not included.

Intensity metrics provide a measure of perfor-mance that is comparable over a longer period of time to absolute and like-for-like measures. As required by EPRA Best Practices Recom-mendation (BPR) on Sustainability Reporting, the intensity indicators are calculated on the entire reporting boundary (absolute), using the values of the aforementioned indicators (marked with an asterisk *). The only exception is the calculation of energy intensity, where

car park electricity consumption is not includ-ed (estimated for 12 Centres where the data is not available). The sum of m2 of common areas and GLA to which common utilities are supplied, is always used as the denominator. IGD considers it appropriate to use these val-ues, despite the partial mismatch between nu-merator and denominator, for the presence of energy provided to tenants for heating and/or cooling

Standardisation for intensity calculations

METHODOLOGY - ENVIRONMENTAL DATA

2.1.1Actions carried out and results obtained_The quality and efficiency of the Shopping Cen-tres can also be increased by identifying the best actions and measures to be carried out, ca-pable of making the structures attractive both in the short term and the long term. Environmental sustainability is an element that has an impact on attractiveness as it influenc-es important factors for visitors (starting with lighting and temperature inside the Mall).For the past several years IGD has been follow-ing a process aimed at improving the environ-mental performance of its Shopping Centres by: • monitoring consumption

• identifying areas in which to take action

• defining specific measures and structural work to be carried out.

Today, the company’s environmental policies are clearly explained in the Environmental Man-agement System and are subject to ISO14001 certification.

The commitment to reduce consumption also has a positive effect on the facility manage-ment costs that the tenants pay every year. Al-together, energy and water saving in 2014 led to an economic saving of over € 800,000, cor-responding to € -1,400 for each tenant and € -3.00 per m2.


2.1.2Energy consumption_In 2014 IGD reduced total energy consumption by -6.2%. This is the consequence of a reduc-tion in electricity (-4.2%), in district heating and cooling (-8.9%) and in energy from fuel (-10.3%). These good results are the outcome of both management measures and structural work: amongst the former there were several actions aimed at energy efficiency, the regulation of op-erating times of lighting systems and the regu-lation of temperatures. The continuous monitoring of energy consump-tion, carried out through 92 divisional meters installed in 10 Shopping Centres and 17 master meters in 17 structures between 2013 and 2014, had a positive effect as they made it possible to pinpoint any peaks in consumption and to iden-tify appropriate improvement actions to be tak-en. Furthermore, the results that emerged were monitored by the Commercial Division to create

an up-to-date picture of the situation so as to be able to carry out any necessary corrective actions.

With regard to structural work, the following was carried out:

• Lighting: led technology systems were in-stalled in 6 Shopping Centres replacing the old lighting systems in the malls;

• Speed variator inverters were installed on moving walkways and escalators in Centro d’Abruzzo and Centro Sarca when extension and restyling work was being carried out on the structures. In particular, as far as Centro d’Abruzzo is concerned, a summary of the environmental impact of the work carried out is reported below.

FOCUS_Equip the Shopping Centre, 13 years after it was opened, with high en-ergy efficiency systems and equipment in order to reduce consumption and diminish environmental impact

Identify and carry out actions to improve environmental perfor-mance during extension work

1. Led lighting system

2. Reflective glass

3. Better insulation

4. High energy efficiency systems

5. Inverters on escalators

1. Greater efficiency of the structure which is reflected in lower electricity consumption intensity per m2: reduced by 11.3%

2. Less use of artificial lighting thanks to the contribution of natural lighting in 3 plazas

3. Better liveability of the structure due to pleasant internal microclimate

4. Extension energy class: B

Need

Target

Actionscarried out

Results obtained


The results of the feasibility study carried out in 2014 on the installation of photovoltaic panels in the Retail Park in Chioggia were favourable. When it opens, scheduled for May 2015, this structure will be the first IGD one to be equipped with systems producing energy from photovol-taics.

Bearing in mind the completion of the restyling work in Centro Sarca scheduled for 2015, work continued in 2014 aimed at obtaining BREEAM certification: installation of led lighting, use of environmentally sustainable building materials, focus on water saving, measures to increase ef-ficiency in the escalators.

There was an across-the-board improvement in Italy: as in 2013 only 5 Centres showed a slight increase in electricity consumption; these in-cluded Le Porte di Napoli and Centro d’Abruzzo, where extension work was carried out in 2014. In Romania the commitment aimed at improving energy efficiency in the structures continued, leading to a reduction in electricity consumption of 36% over the last 2 years.

The significant saving in 2014 compared to the year before was due, in particular, to:

• Implementation in Cluj, of a pilot nergy con-sumption management and control system

which, as the results obtained were positi-ve, will be repeated in other Centres starting from 2015;

• Installation of low energy using lights in the same Shopping Centre;

• Insulation of the facades of 3 Shopping Centres, when refurbishment was in pro-gress due to the arrival of H&M.

With regard to the headquarter offices, in 2014 electricity was supplied exclusively from re-newable sources (18% wind power, 18% renew-able bioliquids, 19% renewable biomass and 46% ocean energy and hydropower).

Of the 3 Centres that use district heating, 2 re-duced consumption by over 25%, whereas one

remained in line with the previous year.

Energy consumption (kwh) 2014 2013 delta

ITALY – ABSOLUTE 34,279,059 35,773,162 -4.2%

ITALY – LIKE FOR LIKE 30,760,668 32,752,783 -6.1%

ROMANIA 7,911,000 9,550,000 -17.2%

HEADQUARTERS (INCLUDING COMMON AREAS) 308,122 329,092 -6.4%

HEADQUARTER OFFICES 110,359 116,324 -5.1%

District heating (kwh) 2014 2013 delta

ITALY – ABSOLUTE 8,783,940 9,645,000 -8.9%


ROMANIA No district heating

No district heating

No district heating

HEADQUARTERS 277,020 304,000 -8.9%

TABLE 1 Electricity consumption (G4-EN3)

TABLE 2 District heating and cooling consumption (G4-EN3)


As was the case with electricity, the reduction in gas consumption also involved the majority of the Shopping Centres; only 3 recorded a slight

increase. A milder than average winter contrib-uted to this positive result.

The decrease in energy consumption also has an effect on efficiency indicators like building energy intensity.

Fuel (kwh) 2014 2013 delta

ITALY – ABSOLUTE 10,294,652 11,479,230 -10.3%


ROMANIA 4,579,635 5,597,432 -18.2%

HEADQUARTERS No fuel consumption

No fuel consumption

No fuel consumption

Energy consumption (kwh) 2014 2013 delta

ITALY – ABSOLUTE 53,357,650 56,897,392 -6.2%

ROMANIA 12,490,635 15,147,432 -17.5%

HEADQUARTER OFFICES 387,379 420,324 -7.8%

Energy intensity (kWh/m2 common areas+GLA) 2014 2013 delta

ITALY – ABSOLUTE 155 165 -6.4%

ROMANIA 142 172 -17.5%

UFFICI SEDE 40 42 -5.1%

I Bricchi_Isola d’Asti (At)

TABLE 3 Fuel consumption (G4-EN3)

TABLE 4 Total energy consumption (electricity, district heating, fuel)

TABLE 5 Building energy intensity (G4-CRE1; G4-EN5)


Greenhouse gas emissions fell for the second year running, thanks to the reduction in energy consumption,. Over this two year period 2,943 tonnes of CO2

equivalent were avoided, equal to the quantity of CO2 absorbed in one year by a wood of about 2 square kilometres.

GHG emissions (Tonnes CO2e) 2014 2013 delta

ITALY DIRECT EMISSIONS - ABSOLUTE 1,825 2,035 -10.3%

ITALY INDIRECT EMISSIONS – ABSOLUTE 19,749 20,696 -4.6%

ITALY TOTAL GHG EMISSIONS - ABSOLUTE 21,573.72 22,730.55 -5.1%

ITALY DIRECT EMISSIONS – LIKE FOR LIKE 1,731 1,907 -9.2%

ITALY INDIRECT EMISSIONS – LIKE FOR LIKE 17,884 19,095 -6.3%

ITALY TOTAL GHG EMISSIONS - LIKE FOR LIKE 19,614.99 21,001.79 -6.6%

ROMANIA TOTAL GHG EMISSIONS 5,004.56 6,053.64 -17.3%

HEADQUARTERS TOTAL GHG EMISSIONS 108.35 116.37 -6.9%

GHG emissions intensity(Kg CO2e / m2 common areas + GLA) 2014 2013 delta

ITALY DIRECT GHG INTENSITY 6.18 6.89 -10.3%

ITALY INDIRECT GHG INTENSITY 66.88 70.09 -4.6%

ITALY TOTAL GHG INTENSITY 73.06 76.98 -5.1%

ROMANIA GHG INTENSITY 56.72 68.61 -17.3%

HEADQUARTERS GHG INTENSITY 39.33 42.24 -6.9%

2.1.3Greenhouse gas emissions_

2014

84,00

82,00

80,00

78,00

76,00

74,00

72,00

70,00

68,00

Kg C

o2e/

mq

2013 2012

73.06

76.98

83.03-5.1% -7.3%

TABLE 6 Greenhouse gas emissions (G4-EN15; G4-EN16)

TABLE 7 Greenhouse gas (GHG) emissions intensity from building energy consumption (G4-CRE3; G4-EN18)

CHART 1 Reduction in greenhouse gas (GHG) emissions intensity- absolute 2012-2014


2.1.4Water consumption_Water consumption is not a material environ-mental impact for our Shopping Centres, due to the rather low usage of water. In addition, the IGD Shopping Centres are not located in areas with considerable water short-age risks. Despite this, the company feels it is

their duty to reduce water wastage and to main-tain water quality. Furthermore, IGD is actively committed to raising awareness in the Centres’ visitors and tenants about responsible water consumption. (see section 3).

Water consumption (m3) 2014 2013 difference

ITALY WATER CONSUMPTION - ABSOLUTE 476,916 543,564

-12.3%Of which from water mains 473,481 504,271

Of which from rainwater 3,435 0

ITALY WATER CONSUMPTION – LIKE FOR LIKE 354,233 418,277

-15.3%Of which from water mains 350,798 378,984

Of which from rainwater 3,435 0

ROMANIA WATER CONSUMPTION 45,294 68,051-33.4%

Of which from water mains 45,294 68,051

HEADQUARTERS WATER CONSUMPTION 1,247.97 1,630.64 -23.5%

Water consumption (m3) 2014 2013 difference

TOTAL CONSUMPTION OF DRINKING WATER – ABSOLUTE 385,819 432,317 -10.8%

WATER CONSUMPTION FOR IRRIGATION - ABSOLUTE 16,886 26,403 -36.0%

WATER CONSUMPTION FOR FIRE PREVENTION - ABSOLUTE 41,051 55,399 -25.9%

OTHER WATER CONSUMPTION - ABSOLUTE 33,161 29,445 12.6%

TOTAL CONSUMPTION OF DRINKING WATER – LIKE FOR LIKE 277,194 322,097 -13.9%

WATER CONSUMPTION FOR IRRIGATION – LIKE FOR LIKE 12,919 25,603 -49.5%

WATER CONSUMPTION FOR FIRE PREVENTION – LIKE FOR LIKE 32,460 42,632 -23.9%

OTHER WATER CONSUMPTION – LIKE FOR LIKE 31,661 27,945 13.3%

The improvement in IGD’s environmental per-formance had an impact on the efficiency of the individual Shopping Centres which altogether

emitted 12% less CO2 per square metre com-pared to the previous two year period.

TABLE 9 Breakdown of water consumption by use

TABLE 8 Water consumption (G4-EN8)


2.1.5Waste and waste sorting_The generation of waste inside the Shopping Centres and the disposal of it are aspects which depend to a large extent on the tenants’ actions. IGD’s approach is to provide tenants with the necessary structures and incentives to reduce over time the quantity of waste sent to landfills

and increase the proportion of that sent to re-cycling. The target of the ISO 140001 certified centres is to raise tenants awareness of and focus on waste sorting.

No hazardous waste was generated in 2014.

2014 (t) 2013 (t) Difference (%)

% out of total

2014

% out of total

2013

ITALY

WASTE SENT TO RECYCLING – ABSOLUTE 1,316.56 1,384 -4.8% 58% 57%

WASTE SENT TO LANDFILL – ABSOLUTE 956.46 1,064 -10.1% 42% 43%

TOTAL WASTE GENERATED – ABSOLUTE 2,273.01 2,447 -7.1%

WASTE SENT TO RECYCLING – LIKE FOR LIKE 909.55 938 -3.1% 53% 50%

WASTE SENT TO LANDFILL – LIKE FOR LIKE 798.71 927 -13.8% 47% 50%

TOTAL WASTE GENERATED – LIKE FOR LIKE 1,708.26 1,865 -8.4%

ROMANIA

WASTE SENT TO RECYCLING 53.194 57.870 -8.1% 96% 96%

WASTE SENT TO LANDFILL 2.332 2.243 4.0% 4% 4%

TOTAL WASTE GENERATED 55.526 60.113 -7.6%

Water consumption intensity (m3/ m2) 2014 2013 difference

ITALY – WATER CONSUMPTION INTENSITY 1.62 1.86 -13.1%

ROMANIA – WATER CONSUMPTION INTENSITY 0.51 0.77 -33.4%

HEADQUARTERS – WATER CONSUMPTION INTENSITY 0.45 0.59 -23.5%

Visitors’ awareness in Gran Rondò

TABLE 10 Building water consumption intensity (G4-CRE2)

TABLE 11 Waste and disposal method (G4-EN23)


2014 (t) 2013 (t) Difference (%)

% out of total 2014

% out of total 2013

ITALY

PAPER AND CARDBOARD 719 761 -5.5% 31.6% 31.1%

PLASTIC 71 56 26.1% 3.1% 2.3%

ORGANIC 10 19 -47.2% 0.5% 0.8%

UNSORTED 495 493 0.4% 21.8% 20.1%

MIXED 877 961 -8.8% 38.6% 39.3%

GLASS 40 47 -14.8% 1.8% 1.9%

WOOD 32 27 21.8% 1.4% 1.1%

OTHER 29 83 -65.8% 1.3% 3.4%

TOTAL 2,273 2,447 -7.1%

ROMANIA

PAPER AND CARDBOARD 51.524 56.380 -8.6% 93% 94%

PLASTIC 1.670 1.490 +12.1% 3% 2%

UNSORTED 2.332 2.243 +4.0% 4% 4%

Waste sorting of paper and plastic was intro-duced in the headquarters in Bologna in the last few months of 2012, accompanied by an in-formation and awareness raising campaign to

encourage waste sorting by employees. At the moment the data referring to the total amount of waste sorting is not available due to a change in supplier which took place in 2014

Paper consumption fell in the headquarters for the fourth year running: the decrease in 2014 was equal to 6.5 volleyball courts. Part of this was due to the full implementation of legal sub-stitutive conservation of sales invoices which

resulted in about 10,000 invoices not having to be printed. Again in 2014 only recycled paper or FSC certified paper was used for IGD’s institu-tional material.

Paper consumption Bologna headquarters 2014 2013 Difference

NUMBER OF PRINTED SHEETS OF PAPER 793,178 809,726 -2.0%

CentroSarca_Sesto San Giovanni (Mi)

TABLE 12 Waste sorting

TABLE 13 Paper consumption Bologna Headquarters


In March 2015 the process to adopt an Environ-mental Management System (EMS), in accord-ance with UNI EN ISO 14001-2004 regulation, was successfully completed by IGD Manage-ment in the following Shopping Centres:

• Tiburtino Shopping Centre (in Guidonia Montecelio – Rome)

• Centro d’Abruzzo (in San Giovanni Teatino – Chieti)

• La Torre (in Palermo)

The branch office of IGD SIIQ in Centro Leonardo in Imola (Bologna) also entered within the cer-tification boundary and certification was con-firmed for Mondovicino (in Mondovì – Cuneo), i Bricchi (in Asti) and the headquarters in Bolo-gna.The number of Centres certified therefore, in line with the roll out plan, is 8 (in addition to the

Bologna headquarters and the two branch offic-es located in Shopping Centres), corresponding to 51% of the total square metres and to 40% of the Shopping Centres in IGD’s portfolio. At the end of the roll out plan (2018) a total of 93% of the square metres and 90% of the Shopping Centres will be certified.

Tiburtino Shopping Centre_Guidonia Montecelio (Rm)

2.1.6ISO14001 certification (G4-CRE8)_

In line with the roll out plan, 8 Centres are certified. 18 will be so in 2018

ACTIVITIES DURING THE YEAR

RESULTS OBTAINED

Each individual certified site has its own tar-gets in addition to observations or comments, if any, made by the certifying body at the time of certification. In relation to what was reported in 2013, all the observations that emerged were resolved in 2014 with the exception of a minor non compliance regarding which all necessary

measures are in the process of being taken. As well as the specific improvement targets, ISO 14001 enables the company to identify several generic targets on environmental issues, whi-ch are included in the Sustainability Plan in the “Social Responsibility and Materiality” section of this Report.


The quality of the Shopping Centres is measured by their ability to attract visitors. The influential factors which IGD particularly decided to work on during the year were:

• adaptation of the structures • introduction of new brands (with an increase in services offered)• focus on accessibility to the Centres for everybody

The stability in number of footfalls and the significant increase in tenants’ sales show that the work carried out is producing positive results.

2.2Attractiveness and liveability of the shopping centre_

2.2.1Adaptation of the re-tail structures_2014 was an important year with regard to the structural work carried out in the IGD Shopping Malls.

The purpose of the work was to adapt the Shop-ping Centres to changes in visitors’ needs, by extending the retail area and carrying out inter-nal alterations.

The extensions to the retail area in Centro d’Abruzzo in San Giovanni Teatino - Chieti (inau-gurated 10th April) and in Le Porte di Napoli in Afragola - Naples (3rd December) are producing excellent results both with regard to the ten-ants’ revenues and to the increase in number of visitors

2014 was an important year with regard to the structural work carried out in the IGD Shopping Malls


Centro d’Abruzzo_San Giovanni Teatino (Ch)

Porte di Napoli_Afragola (Na)

Place: San Giovanni Teatino, ChietiDate extension inauguration: 10/04/2014 Activity: Extension and restyling New m2 GLA: 3,300

Place: Afragola, NapoliDate Restyling Inauguration: 03/12/2014 Activity: Mall extension and hyper reductionNew m2 GLA: 5,600

New stores: 19Footfalls April-December 2014: +10.8% vs 2013Sales April-December 2014: +47.3% vs 2013Number footfalls first 4 days: 78,000

New stores: 9Footfalls December 2014: +11.3% vs 2013Sales December 2014: +51.2% vs 2013Number footfalls first 4 days: 64,000


2.2.2Identification of new brands(with an increase in services offered)_

As a result also of the above mentioned exten-sions and the opening of the Piastra Mazzini re-tail area in Livorno, IGD carried out considerable research regarding the identification and open-ing of new brands.

Altogether there were 21 new openings regard-ing local, national and international brands.These represented 4.1% of the total brands present in the IGD Shopping Centres in 2014.

The two new services provided, Dental Clinics, were introduced for the first time by IGD in the Piastra Mazzini retail area in Livorno and in Ti-burtino Shopping Centre in Guidonia. The introduction of these services is part of an approach aimed at increasing the services for

visitors to the Shopping Centres, identifying these structures as corners of the city where it is easy and handy to do things other than shop-ping. Furthermore, the economic performance of these services demonmstrate that visitors use and appreciate them.

ITALY

CULTURE LEISURE TIME GIFT

PERSONAL CARE

FOOD

HOUSEHOLD GOODS

SERVICES

BARS AND RESTAURANTS

CLOTHING

0 2 4 6 8 10 12

1

1

1

1

2

5

10

Piazza Mazzini_Livorno

CHART 2 New brands by merchandising mix (Italy)


2.2.3Usability of the Shopping Centres for everybody_

For Winmarkt, the introduction of new brands goes hand in hand with the decision to progres-sively adapt its tenant mix to increasingly inter-national standards. With this in mind, the opening of H&M stores continued in 2014 in Galati, in Ramnicu Valcea and in Piatra Neamt, increasing the attractive-ness of these Shopping Centres. Important players like Flanco (electronics) in Cluj, Leonardo (footwear) in Ramnicu Valcea have also been included and the introduction of international food anchors (Carrefour in Ram-nicu Valcea) continued.The international brands altogether represent 31% of the total.Thanks also to these actions, the financial oc-cupancy rate in the 14 Romanian structures increased and reached 86.4% overall (+1.9 per-centage points compared to 2013).

At the end of 2012, IGD verified the accessibility of its structures for individuals with disabilities. This gave rise to a process that progressively became part of the ordinary management of the company and which is a key feature in all its ac-tivities.

Summary of the various stages so far:

• December 2012 - January 2013: audit in 6 Shopping Centres to verify the liveability of the IGD structures and accessibility to them for individuals with disabilities.

• February 2013: identification of actions to be taken, dividing them into three groups: structural (phase 1), communication (phase 2) and tenant engagement (phase 3).

• March 2013 and 2014: participation in the conference “Retail for all”, during the Italian Fair dedicated to accessible tourism.

• Mid 2013-2014: beginning of phase 1, the measures established by the audit were included in the planning for the Centres un-dergoing restyling work. Results: in the re-

styling/extension of both Centro d’Abruzzo and Centro Sarca (in the work on the under-ground car parks and entrances), the rec-ommendations of the audit for individuals with disabilities were adopted. Therefore, the number of parking places for individu-als with disabilities increased, they were moved nearer to the entrances and, where possible, with more space around them to facilitate loading and unloading of cars. In Centro d’Abruzzo an external path for the visually impaired was also created

• December 2013: commitment to apply the guidelines on the usability of the Centres by individuals with disabilities was included in the corporate Business Plan

• October 2014: beginning of the second phase of the project, with focus on commu-nication within the Shopping Centres and the identification of appropriate actions to be taken.

The third phase of the project, coinciding with tenant engagement, will begin in 2015.

ROMANIA

Altogether the international brands in the Winmarkt Shopping Centres represent 31% of the total

IGD_Human chain forming word_Ravenna

A CHANGINGCONTEXT

3_

3_A CHANGING CONTEXT 56 IGD SIIQ - 2014 Sustainability Report

A changing context_

Number of engagement initiatives

Number of stakeholders engaged in awareness raising initiatives


5

5


Employees


Shareholders andFinancial Community

Tenants

Suppliers

Environment

MED

IUM

HIG

H

MEDIUM HIGH

3_A CHANGING CONTEXT 57IGD SIIQ - 2014 Sustainability Report

3.1 Stakeholderengagement_3.1.1The engagement process and activities _IGD’s stakeholders are the people, the compa-nies and the other organisations that add value

to IGD; they are influenced by its activities or are otherwise interested in them.

SHAREHOLDERS AND FINANCIAL COMMUNITY

TENANTS

VISITORSAND COMMUNITY

EMPLOYEES

SUPPLIERS

ENVIRONMENT

Le Maioliche_Faenza (Ra)


Stakeholder engagement is part of the strate-gic approach included in IGD’s 2014-2016 Busi-ness Plan. This decision was dictated by the need to establish a dialogue with stakeholders by means of all the available channels, aimed at understanding ongoing changes especially dur-ing a time of economic crisis.For this reason over the past two years IGD has developed an operational plan aimed at engag-ing its stakeholders in a structured and continu-ous manner, covering both business issues and in those chiefly characterised by social respon-sibility.

2014 was the first year in which these activities enabled all the main stakeholders to become in-volved, with the exception of:

• the employees, on account of the fact that in 2015 the second internal employee survey will be carried out withall the employees in Italy;

• the suppliers, as it was considered more ap-propriate to start raising awareness before getting them involved.

The following shows in detail the stakeholders involved and the methods used. (G4-24;25;26)

Tiburtino_Guidonia (Rm)


Stakeholder Method of engagement

Period of engagement

Engagement carried out for Sustainability Report

Who was involved and why

BANKS Questionnaire* February 2014 Yes 3 banks involved representing a total of 36% of IGD’s Net Debt

BANKS Face to face meetings

Continuous throughout the year

No For details refer to Section 1, “Transparency”

INVESTORS/ANALYSTS/SHAREHOLDERS

• Conference calls• One to one meetings • Roadshows• Field Trips• Financial markets

Continuous throughout the year

No For details refer to Section 1, “Transparency”

VISITORSTO THE CENTRES

Event satisfaction*

All of 2014 No 2,700 people involved in 15 events carried out in 11 Shopping Centres.

VISITORSTO THE CENTRES

Customer satisfaction*

All of 2014 No 4,685 people interviewed in 9 Customer Satisfaction surveys in 9 Shopping Centres

EMPLOYEES Internal employee survey

September 2011 No All Italian employees involved. Response rate: 94.3%

TENANTS Tenant Satisfaction*

November 2013 and November 2014

No In the two years, 63 tenants (34% of the total) answered the questionnaire (sent to all tenants in 3 Shopping Centres)

TENANTS Face to face meetings

Continuous No

(*) Further details regarding the results of this specific survey carried out in 2014 can be below


3.1.2Engagement results (G4-27)_The main issues that emerged from each en-gagement event, divided by survey type, are described below. The actions undertaken or to

be undertaken by IGD, in order to respond to the needs that arose, are also described where ap-propriate.

1. Questionnaire directed at Financial Institutions to find out how they view IGD’s CSR.

2. Event satisfaction.

The respondents revealed that they appreciat-ed IGD’s commitment to CSR, highlighting that this was considered as an added value. They also appreciated both the guidelines and the targets that the company sets and which are published annually in its Sustainability Report. However, they pointed out that in credit assess-

ment, at present, the implementation and com-munication of CSR practices still has a fairly low impact. IGD’s commitment to further engagement with the financial community is guaranteed, by con-tinuing to transparently report on both econom-ic issues and social/environmental ones.

These surveys were carried out in order to ana-lyse the level of satisfaction of visitors to events held in the Shopping Centres and to identify the most effective ones.

The prominent issues that arose were:

• The events offered were in line with or ex-ceeded initial expectations

• 0% of those interviewed went to the Centres for the specific purpose of participating in the events

• Of the 4 types of events offered in the Shop-ping Centres (commercial, recreational-sports, solidarity, local), the visitors showed a slight preference for the commercial ones

• The “usability” of the events was a feature that the survey respondents deemed to be the strong point, in other words, how easy it was to understand the event and to participate in it.

• Advertising and promotion inside the Shop-ping Centre continued to play an important role in publicising the events.

The event satisfaction results were analysed for each Shopping Centre where the surveys were

carried out, identifying strong points and areas for improvement which are useful for drawing up the Shopping Centre Marketing Plans.Given the importance in terms of management, IGD’s objective for 2015 is to carry out at least two event satisfaction surveys in all its Shop-ping Centres.

Stakeholder engagementis part of the strategic approach included in IGD’s 2014-2016Business Plan


Fonti del Corallo_Livorno


3. Customer satisfaction.

4. Tenant satisfaction.

Nearly half of IGD’s Shopping Centres carried out visitor satisfaction surveys in 2014.

Even though the individual strengths and weak-nesses of each Centre involved were identified, the results highlighted that:

• Altogether, those interviewed revealed to be well satisfied with the IGD Shopping Centres, both in absolute terms and in comparison to relevant market competitors

• There are four areas where greater attention should be paid:

1. Quality and variety in the choice of prod-ucts and brand names

2. Value for money in product prices in general

3. Usability of the structure (to easily locate the things needed)

4. Find the services needed

Given the across-the-board nature of the issues that emerged, the identification of the most suitable actions to be undertaken following these surveys, takes into account the necessity to involve the entire IGD structure.

The tenant engagement process which started in 2013 continued in 2014: two Tenant Satisfac-tion surveys were carried out in two Shopping Centres, selected to be representative with re-gard to their size. The Centres identified were Tiburtino, in Guido-nia Montecelio (Rome) and Porto Grande in San Benedetto del Tronto (Ascoli Piceno).

The tenants were given a questionnaire, the purpose of which was to discover the levels of satisfaction and importance of 6 main areas of interest:

• Relations with IGD• Overall assessment of the Shopping Centre• Marketing activities• Merchandising mix• Facility Management• Environmental sustainability of the Centre

The survey was carried out in the period Octo-ber – December 2014 with a response rate of 25% of the stores covering 26% of the total floor area. The overall rate of satisfaction was 3.6 (on a scale of 1 to 5).

Even though each structure had its own distinc-tive features, the two surveys highlighted com-mon strong points and areas for improvement for both Centres• Strong points: “Relations with IGD” and “Facil-

ity Management”. In particular, : “Helpfulness

shown by the employees towards the tenants” and “Conveying information within the Centre” had very high levels of satisfaction for both Centres

• Areas for possible improvement: environmen-tal sustainability and marketing activities.

At the end of this trial period, which overall in-volved 3 Shopping Centres over two years, im-portant points regarding management emerged.

IGD will assess whether or not to continue with this type of survey in the near future.


3.2 Stakeholderawareness_Within the sustainability process, IGD set

itself the target to raise awareness with several of its stakeholders about these issues. For this reason since 2014 several actions have

begun to be implemented both within the com-pany itself and within its centres. The following table summarises the activities already carried out and the next steps to be taken:

Stakeholders Awareness raising activities carried out in 2013-2014

Awareness raising activities foreseen from 2015

SHAREHOLDERS, INVESTORS AND FINANCIAL COMMUNITY

Information on CSR performance included in the presentation of the quarterly results

• Increase in communication regarding sustainability through all existing channels (website, Twitter, newsletter, presentations)

• Participation in conferences, meetings, and interviews on sustainability issues

TENANTS Conduct guidelines regarding energy consumption included in Tenant Handbooks

Creation of a rulebook to distribute to the tenants to promote the dissemination of good practices for sustainable environmental management of the stores

VISITORS AND COMMUNITY Signs raising awareness regarding good environmental practices to be followed even in individual everyday conduct placed in ISO14001 certified centres

Introduction of signs in all the Shopping Centres

EMPLOYEES Notices introduced in the headquarters to raise employees’ awareness regarding recycling and water and energy saving

Introduction of notices in the headquarters regarding the correct disposal of toner

SUPPLIERS Suppliers informed regarding the occurrence of ISO14001 certification in the Shopping Centres concerned

Continuation of awareness raising in ISO14001 certified Centres

IGD_CONÈ_Dance competition

THE CONCEPTOF SPACESTO BE LIVED IN

4_

4_THE CONCEPT OF SPACES TO BE LIVED IN66 IGD SIIQ - 2014 Sustainability Report

Local events out of the total events

Local suppliers out of the total suppliers

HIGHLIGHTS:

29%

52%

The social role of the Shopping Centre

Territorial Importance

Communication

Innovation

STAKEHOLDERS INVOLVED:


Tenants

Suppliers

The concept of Spaces to be Lived in_

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4_THE CONCEPT OF SPACES TO BE LIVED IN 67IGD SIIQ - 2014 Sustainability Report

4.1 The social role of the shopping centre_The Shopping Centre, which is becoming more and more like a city centre, is evolving from a place that was once dedicated exclusively to shopping to an area devoted also to leisure time.

IGD Centres, as “Spaces to be lived in”, are both a hub and a stage where a wide range of various events take place week after week, with pro-grammes aimed at attracting a wide range of visi-tors, age groups and interests. The Marketing Plan, both centrally (in the IGD stra-tegic guidelines) and for each individual Centre (for the various forms of implementation of the same), identifies the mix of offers and the placement that each centre wants to achieve in its local area.

In 2014 the overall strategy of the Marketing Plan was to get visitors more involved. For this reason, the decision was made to:

• favour events of great interest to a wider group of visitors and with a longer duration;

• reduce the quantity of minor events of a shor-ter duration which are less likely to appeal to visitors.

The logical outcome of this strategy was to reduce the total number of events but to maintain the number of days that visitors were able to partici-pate in events in the IGD malls.

ITALY

2014 2013 2012

TOTAL NUMBER OF EVENTS 441 514 470

The number of solidarity events, that is those that place social responsibility foremost, were in line with the previous year. The total number (82 events, compared to 86 in 2013) highlights, however, only a small part of the overall commitment that the IGD Centres have to-wards issues such as disability, disease preven-tion, job hunting and environmental protection (just to mention the most frequent). There is also work “behind the scenes”, carried out in coopera-tion with national and local associations, to pro-mote common causes in a recreational way.

Every year IGD judges the best 4 events held during the year in each of the following categories: soli-darity, recreational-sports, commercial and local. The winning centres are presented with awards during the annual “IGD Awards” ceremony. The winners represent a fine cross-section of the most innovative and engaging programmes initi-ated in the IGD Shopping Centres.

TABLE 1 Total events (Italy)


ESP, RavennaEvent name: Scritta umana (Human chain forming words)Event description: Fund raising for a young girl involved in a road accident, by organising a human chain forming words in a square in Ravenna involving over 750 peoplePlus: The Shopping Centre goes beyond its bounds and becomes promoter of a positive initiative for the city.

FONTIDEL CORALLO, LivornoEvent name:La Notte Bianca (All Night Festival)Event description: Combined event with shopping, shows and music with shops remaining open until midnight. Plus:The Shopping Centre is seen as a flexible shopping location and as a meeting place and area for shows and entertainment.

SOLIDARITY EVENT

COMMERCIAL EVENT


LA TORRE, PalermoEvent name:Paralimpiadi (Paralympics)Event description: Event to raise awareness and promote sports activities in favour of disabled individualsPlus:The Shopping Centre becomes a place of integration between the disabled world and the able-bodied one.

CENTRO PIAVE, San Donà di PiaveEvent name:Uno per tutti, tutti per lo sport(One for all, all for sport)Event description:Sports event dedicated to different sports, with sports fields set up outside the Centre.Over 800 young athletes from local sports clubs involved

LOCAL EVENT

RECREATIONAL-SPORTS EVENT

PORTA MARCOLFA, San Giovanni in Persiceto (Bologna)Event name:Una lettura fantastica (Fantastic reading)Event description:Project to promote reading and creativity aimed at elementary and middle school children Plus:Even a small Centre is capable of organising an event with strong social and educational values for the local community


Within the entire programme of events held in the Shopping Centres, those that have acquired in-creasing importance over the years are the across-the-board ones, which are characterised by being:

• exclusive formats for IGD• held in a number of structures • arranged in such a way that the social and cul-

tural aspect is substantial.

The main ones and their quantified results in terms of participation are shown below:

Title Brief description Centres involved

Quantifiableresults

THE TALENT Reality Show inside the Shopping Centres for aspiring dancers, singers and DJs 11 1,000 enrolments

LA PREVENZIONE E' UNA ROBINA INTELLIGENTE (Prevention is really an intelligent thing)(in cooperation with ANT-National Tumour Association)

Prevention campaign to offer the Centres’ visitors free dermatological check-ups for the prevention of skin cancer 11 780 patients visited

VU JÀ DÈ Contest reserved for middle school children, encouraged to redesign the front cover of several classic books.

8 250 classes involved 5,000 students enrolled

DANCE REALITY Reality dance show inside the Shopping Centre with dance lessons and a closing performance

2 60 couples enrolled

MOSTRA E CONCORSO SULLA PREISTORIA(Exhibition and contest on prehistoric times)

Scenes from prehistoric times set up in the Mall and a contest for schools on the same topic 6 300 classes involved

BUSSOLA DEL LAVORO (Work Compass)(with the institutional partnership of Bologna Municipality)

Event aimed at providing the necessary tools to find work

3 2,000 interviews8,000 Likes su Facebook

A CANESTRO CON IGD(Basketball with IGD)

Project to involve young people in sports, with the cooperation of Virtus Basketball club in Bologna

33,750 tickets distributed to the same number of visitors

RESPIRARE INFORMATI (Breathe knowingly) (in cooperation with l’Associazione Italiana Studio Tosse - Italian Association for the Study of Cough),

Free tests for visitors to check the state of health of their lungs with a team of lung specialists

9 851 tests carried out

Increase over the years of across-the-board events


Forecast SROI in IGDIGD used the SROI method in 2014 for the first time to assess the social impact of one of its initiatives. This result was obtained at the end

of a workshop between the members of Im-pronta Etica on “Measuring the impacts on the local area”.

What is SROI? SROI (Social Return On Investment) is the most well known and developed evaluation method of social impact on the local area, either pro-duced by an organisation as a whole or by one specific aspect of it (for example a project). It enables the impact to be measured and re-

ported. In the same way that ROI (Return On Investment) quantifies the return on capital invested in a company, SROI enables quanti-fies in monetary terms the value of selected activities, given a certain social and economic capital investment.

Why does IGD use it? IGD elected to use SROI to be able to measure the impact that its innovative initiatives would have on the stakeholders affected. It decided to carry out a forecast analysis in order to be

able to follow a qualitative-quantitative meth-od that was capable of forecasting how much social value would be created if the activities carried out achieved the expected outcomes.

What has it been used for? IGD carried out a forecast SROI analysis on the “Happy Hand in tour” project, which involves the organisation of encounters in 2015 in its Shopping Centres between individuals with disabilities and able-bodied individuals in both the sports and artistic fields. This project has been promoted by IGD in cooperation with

Unicoop Tirreno and Coop Adriatica and with the involvement of FISH (Federazione Italia-na per il Superamento dell’Handicap – Italian Federation for Overcoming Handicaps), whose role will be to manage the overall organisation of all the events in the Shopping Centres.

Starting with the identification of the main stakeholders (IGD, Coop Adriatica and Unicoop Tirreno, FISH, the visitors to the Centres and the individuals with disabilities and their fam-ilies), the SROI gave rise to both a qualitative and quantitative analysis, carried out in 5 phases, of the initiative’s impacts on the local area:• Phase 1: identification of expected chang-

es for each stakeholder;• Phase 2: analysis also quantitative where

possible of the inputs (for example: mon-etary value attributed to the time that the volunteers of the FISH network devote to the organisation and to carrying out the event) and definition of the outputs in or-der to map out the outcomes;

• Phase 3: definition of the outcomes and attribution of a value by developing rel-evant indicators (for example: value of the solidarity texts received by FISH as a consequence of the events held in the IGD

Shopping Centres);• Phase 4: calculation of the impact taking

into account appropriate corrective fac-tors;

• Phase 5: discounting comparable costs and benefits.

The SROI map that emerged at the conclusion of the analysis indicates an SROI value of 1.86, which means that € 1 invested in the project produces a result in terms of social well-being equal to € 1.86.The approach followed was a prudent one: as this was IGD’s first SROI project, the decision was made to attribute a value to the activities where information was more readily available and to use where necessary the most reliable estimates. Thanks to the data collection sys-tem set up for the calculation of forecast SROI, it will be possible for IGD in the future to repeat the final analysis on the “Happy Hand in tour” project, evaluating the real results obtained.

IN-DEPTH ANALYSIS:

What emerges from the SROI calculation?


With regard to Winmarkt in Romania, the activi-ties during the year were aimed at:

• sponsoring 3 important local events (Award for worthy students in Ploiesti, distribution

of gifts for women on International Wom-en’s Day with the basketball team of Ploiesti and contributions to the sports festival in Piatra Neamt).

• creating co-marketing campaigns which in-volved about 300 tenants in 40 campaigns, for a total of € 91,000.

• organising special events inside the Shop-ping Centres, connected both to tradition-al holidays and celebrations (Valentine’s Days, Easter, Christmas) and to promoting specific causes (for example being host to a flash mob in Ploiesti on the International Day of Peace).

Winmarkt also directly manages play areas

dedicated to young children (Winiland) and to older children (Gameland). In 2014 a new Wini-land was opened in Piatra Neamt and two new Gamelands were opened in Braila and Ploiesti: altogether there are 3 Shopping Centres where these two brand names are present.Both offer young people the opportunity to play and to meet up in places where these types of areas would otherwise be lacking. For Winiland, in particular, a specific promotion has been launched aimed at schools, with entertainment activities.

ROMANIA

2014 2013 2012

CONTRIBUTIONS FOR SPONSORING OR SUPPORTING LOCAL EVENTS 5,350 7,500 3,000

Winmarkt_Piatra Neamt_Sport festival

TABLE 2 Support given to local events (Romania)


EMPLOYMENT IMPACT

Each Shopping Centre, in relation to its size, provides between 300 and 500 direct jobs in ad-dition to the indirect ones.Amongst these it is advantageous to consid-er local suppliers: these are of most value for smaller forms of supply where knowledge of

the local area represents a competitive factor. IGD turns to local suppliers especially for jobs relating to the everyday running of the Shopping Centres (cleaning and security for example), in addition to those regarding marketing (commu-nication and promotion of events).

COMMERCIAL IMPACT

Local brand names represent 44% of those present in the IGD Shopping Centres. They are on average small in size (equal to 15% of the

total) and for each Shopping Centre they gener-ate a turnover of about 3.6 million euros (data 2014).

2014 2013 2012

NUMBER OF LOCAL SUPPLIERS 724 767 751

% OUT OF TOTAL SUPPLIERS 52% 55% 56%

4.2 Territorial importance_The Shopping Centre represents an important “space to be lived in” for its local area, due to the

following impacts:

• employment (capable of offering job opportunities to employees and suppliers)• commercial (capable of bringing together the commercial offer of the tenants and the needs of

the local inhabitants)• social/meeting place (capable of increasing recreational opportunities for local inhabitants)

Local brand name_Le Maioliche_Faenza

TABLE 3 Local suppliers (Italy)


Instead, the number of local associations that identify the IGD Shopping Centre as the ideal place to set up stands for fund raising or to raise awareness on particular issues, is rising.

Furthermore, the increase in the total number is connected to the decision by the IGD Centres to organise several events that brought together a variety of associations.

Donations made by the individual Shopping Centres to sponsor local events dropped on the whole, compared to a slight increase in those made by the headquarters. The latter types of events have been aimed at consolidating the

long-term relationships between IGD and as-sociations active in forming the bond between disability and sport.

EVENTS HELD IN THE CENTRES 2014 2013 2012

CULTURAL, RECREATIONAL-SPORTS EVENTS HELD WITH LOCAL ASSOCIATIONS 127 185 163

% OF LOCAL EVENTS OUT OF TOTAL 29% 36% 34.7%

ASSOCIATIONS AND NON-PROFIT ORGANISA-TIONS RECEIVED 2014 (N) 2013 (N) 2012 (N)

LOCAL ASSOCIATIONS INVOLVED 199 160 93

OTHER NON-PROFIT ORGANISATIONS 80 76 70

TOTAL 279 236 163

2014 (N) 2013 (N) 2012 (N)

SPONSORSHIPS AND DONATIONS MADE BY THE CONSORTIUMS TO LOCAL ASSOCIATIONS FOR EVENTS

153,990 169,973 207,073

DONATIONS MADE BY THE HEADQUARTERS 12,200 10,916 7,334

TOTAL 166,190 180,889 214,407

SOCIAL/MEETING PLACE IMPACT

The local Shopping Centre is not only a “win-dow” that plays host to and embraces what is happening around it but it is also increasingly an organisational partner that lends both its spac-es and its knowledge to the creation of events capable of attracting the highest level of local enthusiasm.

In 2014, due to the aforementioned change in strategy, the cultural, recreational and sports events organised with local associations de-creased in number, but these were small events of a short duration which attracted a limited number of people.

TABLE 4 Percentage of local events (Italy) (G4-SO1)

TABLE 5 Associations and other non-profit organisations received in the centres (Italy)

TABLE 6 Sponsorships and donations made by the Shopping Centres and by the headquarters (Italy)


4.3 Communication_Communication for IGD means interacting

with the outside world, bearing in mind:

• the need to represent both the “institution-al” requirements and those of the commer-cial network

• the variety of information means available (and usable).

For this reason, the 2014-2016 Business Plan speaks about “integrated communication”, and the “Spaces to be lived in” represent the con-tents of the communication.In 2014, important steps were taken in this di-rection. Specifically, IGD took action on three ob-jectives and obtained some important results.

Targets pursued in 2014 Results reached

Improve interaction with stakeholders by using social networks

Be recognisable on the web (also by means of common graphic design)

Explore the potential of the commercial and informative aspects of the apps

Facebook: all the Shopping Centres have their own account, with an increase of 140% in “Likes” compared to 2013

Twitter: official account @igdSIIQ opened in November 2014 to tweet the economic/financial results, the most important company transactions, participation in conferences/debates where IGD is present, news regarding CSR.

• All the Centres have a website, with hits on the increase

• Alignment to a sole format completed

• See following focus


FOCUS_appGive the Centres’ visitors:

• Information close at hand, immediately available on smartphones

• Commercial offers (also exclusive)

• Updates on new developments (events, schedules etc.)

Provide the IGD Centres with specific apps for smartphones

1. Two apps created in the same number of Shopping Centres : in July the one in Centro d’Abruzzo was launched and in October the one in Conè

2. Each app contains: general information about the Centre, the stores present, the promotions active in the various stores, the events currently going on and those scheduled in the future

3. To launch it both an in store communication campaign was carried out along with a specific one by way of social networks (which delivered better results)

1. About 2,500 total downloads

2. Some unwillingness by the tenants both to share their own information to include in the contents of the app and also to offer specific promotions to those that downloaded it

IGD will assess after some more research whether or not to continue to provide its Shopping Centres with apps

Need

Target

Actions carried out

Results obtained


Innovation, for IGD, means first of all provi-ding the visitors to its Shopping Centres with

avant-garde solutions so that their shopping experience is periodically updated to satisfy their changing needs. For this reason, in 2014 IGD introduced important commercial and mar-keting innovations.

On a commercial level, 2014 saw the implemen-tation of several new ideas that had been inclu-ded in the seminar “The future of Shopping Cen-tres”, organised by IGD in 2013. After this meeting, the company had outlined its operating guidelines in order to be prepared to actively address future challenges. Amon-gst these there was the decision to broaden its merchandising offer by adopting a more strai-ghtforward format with an easily modifiable structure like kiosks or booths.

This new idea was introduced into two Shop-ping Centres (Centro Nova in Bologna and in the extension in “Le Porte di Napoli” in Afragola – Naples), enabling retail offers like cake design, ethnic grocery stores and manicures to have areas suitable to their needs, in busy thorou-ghfares positioned in the centre of the shopping malls. The first data available reveals that visi-tors appreciate this new shopping option.

On a Marketing level, 2014 saw the Shopping Centres start work on a “Content Marketing” project (innovative for IGD), the aim being to create a loyal community made up of current customers and potential visitors as well as opi-nion leaders. Practically, this involved “creating engagement” through a variety of creative techniques, means and tools. The use of social networks in particular forms the basis of “Content Marketing”: this enables the Shopping Centres to establish a timely, concise and interactive relationship with its stakeholders, for example by sharing amusing content which has gone viral. One of the first

Centres involved in this project was Centro d’A-bruzzo, where the new types of events offered went hand in hand with the centre restyling and extension that took place during the year (restyling concluded at the beginning of 2014 and extension of the Mall inaugurated in April). Content Marketing accompanied a unique “nar-rative process”, which started with the inaugu-ration of the Centre (with the creation of a video based on the song “Happy” by Pharrel Williams, involving the tenants), continued throughout the year with 4 other main events (in addition to other minor events) and concluded in December with the reinterpretation of the video “Happy” in a Christmas version.

The leading players in all these events were the Centre’s visitors and tenants, who were invol-ved both personally and through sharing the experience on social networks. An out and out community was thus created over time, one which shares photos, videos and opinions and which identifies Centro d’Abruzzo as being more than just a place for shopping.

4.4 Innovation_

In 2014 Shopping Centres started working on a “Content Marketing” project

IGD_the group

PEOPLE

5_

5_PEOPLE80 IGD SIIQ - 2014 Sustainability Report

People_

Permanent contracts Employees

Employees trained during the year


94%

100%


Internal culture

Equal opportunities and diversity

Employee wellbeing

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In Italy, after two years of a substantially steady workforce, 2014 saw the return of a

positive turnover linked to a more energetic job market as well as the implementation of activi-ties in several roles and the need for temporary replacements.

More specifically, the growth in employment is connected to the introduction of 2 roles in Asset Management and Marketing. In addition, replacements have been made for three employees who left the secretarial office, the general services department and the legal department and also for staff temporarily ab-sent due to maternity leave or to their studies. In Romania the Chief Executive Officer resigned. In line with our approach of internal growth and development, the role of new Chief Executive Officer was given to the Financial Director. This same approach led to the decision to rein-force the commercial and technical divisions by selecting from the job market, with the help of top recruitment agencies, staff to fill senior and

junior managerial roles, followed by internal training which lead to the total coverage of the role, enabling internal promotions to the higher positions.

In Italy, 2014 saw the return of a positive turnover linked to a more energetic job market

5.1 Steady and attractive employment_

IGD_offices


Permanent contracts represent 94% of the total both in Italy and in Romania, proof of how im-

portant a steady workforce is to the company.

The workforce witnessed the following role placements:

• 1 Property account executive – Asset Department • 1 PR • 1 Legal advisor – Legal Department• 1 Area manager – Commercial Department

140

120

100

80

60

40

20

0

2008 2009 2010 2012 2013 20142011

ITALY ROMANIA

85

68 6556 51 46 47 51

99104 115 115 117114

2014 (n) 2013 (n) 2012 (n)

FIXED TERM CONTRACTS ITALY 7 2 3

Of which female 4 1 1

Of which male 3 1 1

PERMANENT CONTRACTS ITALY 110 113 111


Of which male 51 50 49

FIXED TERM CONTRACTS ROMANIA 3 2 4


Of which male 1 - 1

PERMANENT CONTRACTS ROMANIA 48 45 42


Of which male 20 18 14

CHART 1 Corporate workforce flow (2008-2014) (G4-10)

TABLE 1 Staff by contract type (Italy and Romania)* (G4-10)


IGD_offices

*NB: The turnover is calculated as number of contract terminations (excluding those fixed term ) / total employees (excluding those fixed term) at 31.12 of the previous year

Furthermore, in Italy there were 8 part time contracts in 2014, of which 5 were female and 3 male. The turnover rate (which was equal to 0% in 2013), increased slightly but remained at very low percentage values. This increase, which was affected at least in part by the slight recov-ery in employment in Italy, could also be consid-

ered a logical consequence of several years of low staff turnover. Turnover decreased in Romania due to the com-pletion of the outsourcing of non-core services started several years ago and due to Winmarkt’s need to stabilise and develop its existing work-force.

Both in Italy and Romania all work contracts are regulated by national collective employment agreements.

2014 (%) 2013 (%) 2012 (%)

TURNOVER ITALY 4.5% 0% 3%

TURNOVER ROMANIA 11.8% 17% 20%

2014 (%) 2013 (%) 2012 (%)

EMPLOYEES COVERED BY COLLECTIVE EMPLOYMENT AGREEMENTS - ITALY 100% 100% 100%

EMPLOYEES COVERED BY COLLECTIVE EMPLOYMENT AGREEMENTS - ROMANIA 100% 100% 100%

2014 (n) 2013 (n) 2012 (n)

RECRUITMENTS ITALY 7 4 2

RESIGNATIONS ITALY 5 3 3

RECRUITMENTS ROMANIA 10 9 6

RESIGNATIONS ROMANIA 6 8 10

TABLE 2 Outgoing turnover (Italy and Romania)* (G4-LA1)

TABLE 3 Recruitments and Resignations (Italy and Romania) (G4-LA1)

TABLE 4 Collective employment agreements (Italy and Romania) (G4-11)


IGD_offices

In 2014 the training programme involved all em-ployees and was aimed at improving various types of skills. In particular, two projects that had been launched in previous years and had involved all employees, drew to a close.These were the “Grow in order to compete” project and training on corporate social re-sponsibility.The first was structured to continue what had been achieved in 2012 and 2013, aimed at recog-nising and circulating competitive behaviour, or rather distinctive factors for competitiveness,

within IGD. In 2014 the project was developed in three phases:

1. Alignment with the Top Management on the assessment and development of competi-tive behaviour which constitutes the quali-tative part of performance (1 day).

2. Assessment of competitive behaviour and self-development (2 days), in addition to the planning of the Winter Company Convention (1 day). This phase involved the Managerial Staff

5.2 Internal culture_“Internal culture” refers to the activities that IGD promotes to favour the development of its work-

force, by means of:

1. appropriate training to satisfy needs, both individual and those of the entire workforce 2. an award system that recognises personal development and results obtained 3. internal communication to circulate the necessary information

5.2.1 Training activities_

ITALY


3. Winter Company Convention, with the par-ticipation of the entire company (1.5 days) where the following took place:

• Presentation of competitive behaviour (skills) not examined during the work carried out in 2013

• Experimentation in groups in the im-plementation of the above mentioned behaviour

• Achievement of individual self-diagno-sis with exchange of relative feedback

• Elaboration of self-development plan

The importance of this training project, which drew to a close in 2014, was twofold:

1. To favour the improvement of the internal working culture by means of recreational work activities

2. To get each individual to reflect on their own skills and to define individual strong and weak points on which to work autono-mously and with their supervisor for future improvement

Training on social responsibility, which in 2013 had involved Managerial Staff and Department Heads in the headquarters as well as the Shop-ping Centre Managers, instead involved in 2014 the office workers in the headquarters and the Assistants in the Shopping Centres, therefore

completing the involvement of all the company employees. Consistent with the previous year, the two training days in 2014 were organised and managed in cooperation with Impronta Eti-ca, a non-profit organisation which operates in the field of social responsibility and which IGD has been a member of since 2011.

The company, on completion of this training pro-ject, reached the three targets it had initially set:

1. disseminate a common level of knowledge to all employees regarding sustainability;

2. update the participants on the results ob-tained in previous years and on the work in progress;

3. imagine together what IGD’s sustainable characteristics could be in 5 years’ time.

In addition to these two projects, the training programme included three other more specific initiatives involving a more limited number of people:

• Refresher courses on the contents and the application of the organisational, manage-ment and control model ex legislative de-cree 231/2001, aimed at managerial staff, department heads and new employees;

• New management control computer sys-tem;

• Safety, with refresher courses in accord-ance with the Consolidated Act (safety, fire fighting courses and training for workers’ safety representatives) and with general and specific training for new employees;

• English language, with permanent refresh-er courses for the necessary roles;

• Refresher/In-depth courses on issues of specific interest to individual roles, in par-ticular:

1. For areas regarding administration-ac-counting-human resources: new tax laws, new accounting principles and labour legislative reform

2. For legal-corporate, commercial and contractual areas: debt collection and Law 231 (organisational model and rel-ative responsibilities)

3. For asset management: asset evalua-tion and application of ISO 14001 envi-ronmental management system

In 2014 the “Grow in order to compete” project and training on corporate social responsibility were aimed


After the high increase in costs and hours dedi-cated to training recorded in 2013, these indica-tors returned to average levels in 2014. This performance is due to the exceptional na-

ture of the year before last when the company decided to develop a particular training pro-gramme designed to satisfy a variety of needs.

In Winmarkt training activities involved:

• Commercial/technical workshops coincid-ing with an important store opening (H&M Piatra Neamt)

• Real estate market: participation in refresh-er courses on the trends and latest devel-opments on the local and international real estate market as well as on specific distinc-tive features of the retail sector

• Professional refresher courses: participa-tion in training courses aimed at individual professional growth and development for

the members of the sales department, tech-nical office, legal affairs department and accounting department

• Professional/motivational team building aimed at all sales staff (in the headquarters and the network).

In 2014, on account of the quality and type of hours of training provided, aimed at specific de-partmental needs, 86% of the workforce was involved (in 2013 this figure was 74%).

ROMANIA

2014 2013 2012

1200

1000

800

600

400

200

0

546

1031

644

2014 2013 2012

EMPLOYEES THAT TOOK PART IN TRAINING ACTIVITIES (N) 117 (100% out of total)

114 (99.1% out of total)

112 (98.2% out of total)

COSTS INCURRED FOR INTERNAL AND/OR EXTERNAL TRAINING (€) 70,207 123,867 74,123

TRAINING HOURS 2,731 4,617 2,851

AVERAGE HOURS OF TRAINING PER EMPLOYEE 23.3 40.5 25.4

PERCENTAGE OF REVENUES INVESTED IN TRAINING (€) 0.06% 0.1% 0.06%

TABLE 5 Training (Italy) (G4-LA9

CHART 2 Investment in training per capita (in euros)


At the end of the training programme focused on individual skills development, the assess-ment data sheet for Managerial Staff under-went several changes aimed at a better struc-

turing and analysis of new skills. Starting from 2015 this change will affect all employees that undergo assessment.

The “Management By Objectives” (MBO) incen-tive system, common to both Italy and Roma-nia, assigns both targets that are common to the entire company and those more specific to an office or to an employee with a permanent contact, the attainment of which leads to the distribution of variable pay.In 2014 in Italy, 109 employees were assigned targets, resulting in the distribution of varia-ble pay equal to 69% of the maximum amount

defined by the system. In Romania the targets were partially reached.In Italy, a skills development system is also active, aimed at all Managerial Staff and De-partment Heads that are fully operative in cov-ering their role, (55.5% of the entire workforce in 2014). The system assigns merit pay raises following a particularly positive assessment; 15 people were assigned pay rises in 2014 (13% of the entire workforce).

2014 (N) 2014 (% out of total)

2013 (N) 2013 (% out of total)

2012 (N) 2012 (% out of total)

EMPLOYEES THAT REGULARLYUNDERGO SKILLS ASSESSMENT 60 55% 60 52% 50 44%

MERIT PAY RAISES AWARDEDDURING THE YEAR 15 13% 17 14% 13 11%

5.2.2 Reward system and skills development_

2014 2013 2012

TRAINING HOURS PROVIDED (N) 300 175 200

NUMBER OF EMPLOYEES TRAINED (N) 44 35 45

AVERAGE HOURS OF TRAINING PER EMPLOYEE 6.8 5 4.4

COSTS INCURRED FOR TRAINING (€) 18,000 9,500 15,000

IGD_Mapic

TABLE 6 Training (Romania) (G4-LA9)

TABLE 7 Skills assessment (Italy) (G4-LA11)


In addition, the third edition of “IGD Awards”, the internal contest to reward the best events organised during the year in the Shopping Cen-tres, was held, In order to increase everyone’s involvement in this event, the headquarter em-ployees were, for the first time, also involved in assessing the events. The award ceremony took place, as usual, during the winter convention.

A project was also launched in Romania in 2014 to improve internal communication: the first three issues of the company newsletter were defined and released, with the aim of circulating the contents amongst the employees (whose places of work are often far apart from one an-other).

Internal communication has become an impor-tant issue for IGD over the last two years after the results of the 2011 internal assessment high-lighted it as a possible area for improvement. In 2013 an internal Work Group was formed which identified several solutions for improvement which the company started to work on in 2014.

The following is a summary of the main tools used by IGD to aid internal communication and to circulate corporate information in an appro-priate manner. These include several ideas for improvement which emerged from the Work Group.

Tool Frequency Contents

COMPANY CONVENTIONS

SIX-MONTHLY As in the previous years, two company conventions were held, with the participation of all IGD employees and a delegation from Winmarkt.In the summer one, the following were presented:

• The business performance in the first few months of the year

• The most important actions taking place and those scheduled in IGD malls

In the December convention team building activities continued on professional and skills development

NEWSLETTER QUARTERLY The newsletter is sent to all employees every three months and contains all the main corporate results, updates on sustainability policies and the most important news regarding the Group.

PRESS RELEASES AD HOC 12 press releases regarding the Group’s main events (economic-financial results, extraordinary transactions etc.) were sent to all employees

5.2.3 Internal communication_


IGD_Mapic


IGD_offices

5.3 Equal opportunities and diversity_5.3.1 Promotion of equal opportunities_The percentage of female workers, between IGD and Winmarkt, stood at 55% (54% in Italy and 59% in Romania).

POSITION GENDER 2014 2013 2012

Directors Male 3 4 4

Directors Female 1 1 1

Managerial Staff Male 13 13 13

Managerial Staff Female 7 7 7

Department Heads Male 25 23 20

Department Heads Female 23 24 23

Office Workers Male 13 11 13

Office Workers Female 32 32 33

TOTAL Male 54 51 50

TOTAL Female 63 64 64

TOTAL 117 115 114

TABLE 8 Breakdown of staff by gender and position (Italy) (G4-10;LA12)


POSITION GENDER 2014 2013 2012

Directors Male 1 1 1

Directors Female - - -

Managerial Staff Male 3 3 3

Managerial Staff Female 2 2 2

Department Heads Male 14 12 8

Department Heads Female 8 7 8

Office Workers Male 3 2 3

Office Workers Female 20 20 20

TOTAL Male 21 18 15

TOTAL Female 30 29 31

TOTAL 51 47 46

Despite the slight increase in the turnover rate, the natural rise in average age of the IGD workforce continued, going from 40 to 41 years of age.

2014 2013 2012

100

90

80

70

60

50

40

30

20

10

00 9%

41% 44%44%

10% 14%

32% 28% 27%

18% 17% 15% over 50

41-50

31-40

19-30

TABLE 9 Breakdown of staff by gender and position (Romania) (G4-10;LA12)

CHART 3 Staff by age group (G4-LA12)


5.4 Employeewellbeing_

5.4.1 The current situation _

For IGD the wellbeing of its employees is an issue deserving constant attention and improvement. It is the company’s intention to work on a corporate welfare plan.

The areas currently being monitored with regard to employee wellbeing include:

1. work related stress2. return to work rate after parental leave 3. employees’ benefits

NB: * in the last 3 years all injuries happened during the journey to/from work;** sick rate: days of absence due to illness / total days worked.

1. Work related stress

The assessment process of “Work related stress” (Legislative Decree 81/2008), active since 2011, continued in the company through-

out 2014, with the collection of indicators and parameters such as those shown in the table below:

The sick rate returned to the levels of the previous years after the increase in 2013, which was due to absences for longer lasting illnesses.

2014 Total

2013 Total

2012 Total

INJURY 5* 3* 2*

% SICK RATE ** 2.31% 4.07% 2.52%

DISCIPLINARY MEASURES 2 1 1

TABLE 11 Causes of absenteeism


2014 Total

RETURN TO WORK RATE AFTER PARENTAL LEAVE 100%

5.4.2 Current areas of work_In 2014 a process aimed at defining the guidelines for a corporate welfare plan was launched.

3. Employees’ benefits (G4-LA2)

The collective employment agreement and (in particular) the collective Enterprise Bargaining Agreement signed in 2013 provides for benefits applicable to all employees.

Employees with fixed term contracts have the same compensation as those with permanent contracts, with the exception of variable pay.

2. Return to work after parental leave

All employees that make use of parental leave return to work under the same terms and conditions as before; IGD is always willing to help reconcile family needs with work life.

FOCUSCreate a “Welfare Project” in IGD in order to:• Increase individual employee wellbeing (and of their immediate family)

in the local area• Positively influence the organisational structure and the internal atmo-

sphere in the company• Streamline the welfare initiatives already envisaged by IGD

Provide IGD, by the end of 2015, with the first actions of a more general “Corporate welfare plan”

A document on the analysis and first evaluations on IGD welfare has been drawn up by the Sustainability Committee, with the identification of the next steps to be taken in 2015.

1. Participation in a Work Group organised by Impronta Etica on Corporate Welfare: this workshop, which started in April and finished in September 2014, enabled the participating members to examine corporate welfare practices that are being developed in the present European scenario, fostering the comparison between best practices implemented on this issue by the members of Impronta Etica.

2. Direct benchmark with the welfare system of IGD’s majority shareholder (Coop Adriatica), which in 2014 implemented a structured welfare system

3. Identification and gathering of welfare actions already existing in IGD

Need

Target

Actionscarried out

Results obtained

TABLE 12 Parental leave (G4-LA3)

GRI G4 MATRIX AND EPRA TABLE94 IGD SIIQ - 2014 Sustainability Report

GRI G4 matrixand EPRA table_GRI G4 MATRIX (G4-32)_Since 2010, IGD’s Sustainability Report has been drawn up by following the GRI guidelines. The 2014 Sustainability Report has witnessed the transition from the application of the GRI-G3.1 (level B) guide-lines to the new guidelines drawn up by the Global Reporting Initiative GRI-G4 and those referring to the real estate sector (“Sustainability Reporting Guidelines - Construction and Real Estate Sector Supplement”). The level of application of the GRI G4 indicators is “Core”. There are no omissions as all the indicators regarding the material aspects have been reported. Please refer to section “Social Responsibility and Materiality” for the correspondence between material aspects and GRI G4.

All the GRI G4 indicators reported in this document, along with the relative page number, are listed in the table below.

GENERAL STANDARD DISCLOSURE

General Standard Disclosure Core Page

STRATEGY AND ANALYSIS G4-1 X 5-7

ORGANIZATIONAL PROFILE G4-3 X 10-12

PROFILO ORGANIZZAZIONALE G4-4 X 10-12






PROFILO ORGANIZZAZIONALE G4-10 X 82; 90-91

PROFILO ORGANIZZAZIONALE G4-11 X 83






IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES PROFILO ORGANIZZAZIONALEPROFILO ORGANIZZAZIONALEPROFILO ORGANIZZAZIONALEPROFILO ORGANIZZAZIONALEPROFILO ORGANIZZAZIONALEPROFILO ORGANIZZAZIONALE

G4-17 X 8-9

G4-18 X 8-9

G4-19 X 16-17

G4-20 X 16-17

G4-21 X 16-17

G4-22 X 8-9

G4-23 X 8-9

GRI G4 MATRIX_CONTINUE >

GRI G4 MATRIX AND EPRA TABLE 95IGD SIIQ - 2014 Sustainability Report

GENERAL STANDARD DISCLOSURE

General Standard Disclosure Core Page

STAKEHOLDER ENGAGEMENT G4-24 X 59




REPORT PROFILE G4-28 X 8-9



PROFILO ORGANIZZAZIONALE G4-31 X Cover


GOVERNANCE G4-34 X 27-28

PROFILO ORGANIZZAZIONALE G4-38 27-28

PROFILO ORGANIZZAZIONALE G4-42 28






PROFILO ORGANIZZAZIONALE G4-48 14; 16-17




ETHICS AND INTEGRITY G4-56 X 34

GRI G4 MATRIX_CLOSE >

GRI G4 MATRIX AND EPRA TABLE96 IGD SIIQ - 2014 Sustainability Report

SPECIFIC STANDARD DISCLOSURES

Material Aspects DMA and Indicators Core Page Omissions

GRI-G4 CATEGORY: ENVIRONMENTPPPPPPPPPPPPPPPPPPP


Subcategory: Energy

G4-DMA X 19-20; 43-44 (-)

G4-EN3 X 43-44 (-)

G4-EN5 44 (-)

CRE 1 44 (-)

Subcategory: Water

G4-DMA X 19-20; 46 (-)

G4-EN8 X 46 (-)

CRE 2 47 (-)

Subcategory: Emissions

G4-DMA X 19-20; 45-46 (-)

G4-EN15 X 45 (-)

G4-EN16 45 (-)

G4-EN18 45 (-)

CRE 3 45 (-)

Subcategory: Waste

G4-DMA X 19-20; 47-48 (-)

G4-EN23 X 47 (-)

Subcategory: Certifications

G4-DMA X 19-20; 49 (-)

CRE 8 X 49 (-)

GRI-G4 CATEGORY: SOCIAL

Territorial importance Subcategory: Local Community

P G4-DMA X 19-20 (-)

P G4-SO1 X 74 (-)

P Subcategory: Labour Practices and Decent Work

P Steady and attractive employment G4-DMA X 19-20 (-)

P G4-LA1 X 83 (-)

P Employee wellbeing G4-DMA X 19-20 (-)

P G4-LA2 X 93 (-)

P G4-LA3 93 (-)

P Internal culture (sense of belonging, assessment, growth, communication)

G4-DMA X 19-20 (-)

P G4-LA9 X 87 (-)

P G4-LA11 87 (-)

P Equal opportunities and diversities G4-DMA X 19-20 (-)

P X 27-28;90-91 (-)

GRI G4 MATRIX AND EPRA TABLE 97IGD SIIQ - 2014 Sustainability Report

EPRA TABLE_The environmental indicators in IGD’s 2014 Sustainability Report are in compliance with the second edition of EPRA (“Best Practices Recommendations on Sustainability Reporting”), published in Sep-tember 2014. The EPRA indicators (units of measure, 2014-2013 results, estimate level, level of cov-erage compared to boundary), the correspondence with the GRI G4 indicators and their reference in the sections, are reported in the table below. The methodological preface in section 2 “Quality and efficiency of the Shopping Centres”, is also applicable for the interpretation of this table.

Indicator Epra Gri g4 Units of measure 2014 2013 Change

from 2013 Coverage Estimate level

Reference in section Remarks

Total electricity consumption

Elec-Abs G4-EN3 kWh yearly 34,279,059 35,773,162 -4.2% 18 su 18 0% Pag. 43, tab. 1

Like for like electricity consumption

Elec-LfL G4-EN3 kWh yearly 30,760,668 32,752,783 -6.1% 16 su 16 0% Pag. 43, tab. 1

Total energy consumption from district heating and cooling

DH&C-Abs G4-EN3 kWh yearly 8,783,940 9,645,000 -8.9% 3 su 18 0% Pag. 43, tab.2

Like for like energy consumption from district heating and cooling

DH&C-LfL G4-EN3 kWh yearly 8,783,940 9,645,000 -8.9% 3 su 16 0% Pag. 43, tab.2

Total energy consumption from fuel

Fuels-Abs G4-EN3 kWh yearly 10,294,652 11,479,230 -10.3% 13 su 18 0% Pag. 44, tab.3

Like for like energy consumption from fuel

Fuels-LfL G4-EN3 kWh yearly 9,764,402 10,757,303 -9.2% 11 su 16 0% Pag. 44, tab.3

Building energy intensity Energy-Int G4-EN 5 + CRE1

kWh/ (m2 common areas+GLA)

216 235 -8.2% 6 su 18 0% Intensity of 6 Centres where no estimate on car park consumption was carried out, was also included

155 165 -6.4% 18 su 18 38% Pag. 44, tab.5 Energy intensity of all 18 Centres within the absolute boundary. Estimated electricity consumption of 12 Centres' car parks and actual electricity consumption of 6, were subtracted from total

Direct GHG emissions (total) - Scope 1

GHG-Dir-Abs G4-EN15 tonnes Co2e 1,825 2,035 -10.3% 18 su 18 0% Pag. 45, tab.6

Indirect GHG emissions (total) - Scope 2

GHG-Indir-Abs G4-EN16 tonnes Co2e 19,749 20,696 -4.6% 18 su 18 0% Pag. 45, tab.6

Direct GHG emissions(like for like) - Scope 1

GHG-Dir-LfL G4-EN15 tonnes Co2e 1,731 1,907 -9.2% 16 su 16 0% Pag. 45, tab.6

Indirect GHG emissions(like for like) - Scope 2

GHG-Indir-LfL G4-EN16 tonnes Co2e 17,884 19,095 -6.3% 16 su 16 0% Pag. 45, tab.6

Building GHG emissions intensity

GHG-Int G4-EN 18 + CRE3

Kg CO2e/(m2 common areas+GLA)

73.06 76.98 -5.1% 18 su 18 0% Pag. 45, tab.7

Total water consumption Water-Abs G4-EN8 m3 476,916 543,564 -12.3% 18 su 18 0% Pag. 46, tab.8

Like for like water consumption

Water-LfL G4-EN8 m3 354,233 418,277 -15.3% 16 su 16 0% Pag. 46, tab.8

Building water consumption intensity

Water-Int CRE2 m3 / (m2 common areas + GLA)

1.62 1.86 -13.1% 18 su 18 0% Pag. 47, tab.10

Weight of waste by disposal method (total)

Waste-Abs G4-EN23 tonnes 2,273 2,447 -7.1% 13 su 18 6% Pag. 47, tab.11

of which sent to recycling

1317 (58%) 1383 (57%) Pag. 47, tab.11

of which sent to landfill

956 (42%) 1064 (43%) Pag. 47, tab.11

Weight of waste by disposal method (like for like)

Waste-LfL G4-EN23 tonnes 1,708 1,865 -8.4% 11 su 16 0% Pag. 47, tab.11

of which sent to recycling

910 (53%) 938 (50%) Pag. 47, tab.11

of which sent to landfill

799 (47%) 927 (50%) Pag. 47, tab.11

Type and number of assets certified

Cert-tot CRE8 % of total square metres of portfolio

51% 8 su 18 0% Pag. 49 UNI EN ISO14001

REGISTERED OFFICE

via Agro Pontino, 13

48100 Ravenna - Italy

HEADQUARTERS

via Trattati Comunitari Europei 1957-2007, 13

40127 Bologna - Italy

tel +39 051 509111

fax +39 051 509247

For information and comments on this Report and on IGD Group sustainability, please contact the

following e-mail address: [email protected]

Further information on IGD sustainability can be found on the Group website on page:

http://www.gruppoigd.it/Sostenibilita

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