Sonae Sierra Sustainability Report 2011

2011Economic, Environmental

and Social Report

Specialists increating… sustainable

shoppingcentres

http://www.sonaesierra.com/en-GB.aspx

SONAE SIERRA Economic, Environmental and Social Report 2011

Global Reporting Initiative (GRI)Self-Declaration Statement

For more information about the GRI G3 and G3.1 Sustainability Reporting Guidelines, please see: https://www.globalreporting.org/reporting/reporting-framework-overview/Pages/default.aspx

For more information about the GRI CRESS, please see:https://www.globalreporting.org/reporting/sector-guidance/construction-and-real-estate/Pages/default.aspx

Further reference:

This report provides a comprehensive review of Sonae Sierra’s economic, environmental and social strategy and the Company’s performance in2011. We believe that this report complies with level A of the Global Reporting Initiative (GRI) Sustainability Reporting Guidelines (G3.1:2011),both in terms of the report contents and performance indicators. Our compliance with the GRI Guidelines has been independently verified byDeloitte, whose assurance statement enables us to self-declare to GRI level A+.

Two important developments took place concerning the GRI framework in 2011. In March, the GRI launched the G3.1 Sustainability ReportingGuidelines, which include expanded guidance for reporting on human rights, local community impacts and gender. In September, the GRIlaunched the Construction and Real Estate Sector Supplement (GRI CRESS). The GRI CRESS is a version of the GRI G3.1 Guidelines tailored forthe construction and real estate sector. It encompasses some specific performance indicators and disclosure requirements, as well as generalguidance, so as to ensure that companies in this sector report most effectively on the industry’s key economic, social and environmentalsustainability issues. Sonae Sierra has developed this report in line with the GRI 3.1 guidelines and has also followed the GRI CRESS whereverpossible. We have included a column in our GRI Content Index on pages 109 to 154 to show which of our GRI performance indicators have beenreported in line with the GRI CRESS. However, since these guidelines were only released in September 2011, we have not been able to applythem fully in the 2011 reporting cycle. We aim to do this in time for our next Annual Report, which is scheduled for publication in April 2013.

C C+ B B+ A A+

Mandatory Self declared 3

Optional Third party checked 3

GRI checked

Contents

Corporate Overview

Who We Are… 1

CEO’s Statement 2

The Year at a Glance 4

Our Company 9

Our Business Strategy 15

Economic Performance 29

The Economic Context 30

Operational Performance 32

Consolidated Accounts 39

Environmental Performance 46

Energy and Climate 47

Water 57

Waste 63

Biodiversity and Habitats 68

Social Performance 71

Suppliers 72

Tenants 78

Communities and Visitors 83

Employees 91

Safety and Health 96

Board Members and Executives 104

Global Reporting Initiative 109

Profile Disclosures 110

Economic Aspects 121

Environmental Aspects 123

Labour Practices and Decent Work Aspects 136

Human Rights Aspects 143

Society Aspects 145

Product Responsibility Aspects 150

Independent Auditor’s Review 155

Feedback Form 157

https://www.globalreporting.org/reporting/reporting-framework-overview/Pages/default.aspx

https://www.globalreporting.org/reporting/sector-guidance/construction-and-real-estate/Pages/default.aspx

SONAE SIERRA Economic, Environmental and Social Report 2011

Back to main contents

Sonae Sierra is a specialist at the cutting edge of shoppingcentre development, ownership, management and thedelivery of services to third parties in markets as diverseas Europe, South America and North Africa.

Passionate about bringing innovation and excitement to the shopping industry since 1989, Sonae

Sierra has been interpreting trends and spearheading a movement that has defined the shopping

centres of the future focused on the creation of unique shopping experiences. Through our

integrated strategy of investment, development and property management, we have developed

a unique understanding of the business and markets we operate in, and we have earned more

international awards than any other company in our sector.

We have long recognised that environmental and social performance affects our financial results,

and we believe that our long-term business success is dependent on all three dimensions: economic,

environmental and social. We have pioneered the integration of sustainability principles into the

shopping centre business and we are already reaping the benefits of this forward-thinking approach.

This year we have chosen not to publish a stand-alone Corporate Responsibility (CR) Report, but to

develop a fully integrated Economic, Social and Environmental Performance Report. We consider

that this approach provides our stakeholders with a more robust and engaging account of our

current strategy and our performance in 2011, and demonstrates how we encompass all three

dimensions of performance into our day-to-day business activities.

Who We Are…

Centro Colombo, Portugal Manauara Shopping, Brazil Loop5, Germany

CORPORATE OVERVIEW

Who We Are… 1

CEO’s Statement 2


Our Company 9


1

Fernando Guedes OliveiraChief Executive Officer

“I’M REALLY PROUD OF THE RESULTS WE ARE ABLE TO REPORT FOR THE PAST 12 MONTHS, IN SPITEOF THE CHALLENGING MARKETCONDITIONS. WE INCREASED OUR NET PROFIT IN 2011 BY SUCCESSFULLYSUSTAINING INCOME STREAMS AND REDUCING COSTS.”

A conversation with Fernando Guedes Oliveira,Sonae Sierra CEO

Q: How has Sonae Sierra’s business fared overallduring the past 12 months and has the year turnedout as you expected?

A: I’m really proud of the results we are able to report for the past12 months, in spite of the challenging market conditions. Weincreased our net profit in 2011 by successfully sustaining incomestreams and reducing costs. Overall, global tenant rents are up ona like-for-like basis and our occupancy levels remained above 96%throughout the year – a significant achievement in some marketswhere tenant sales were affected by lower consumer purchasingpower. We have also mitigated some of the market risks outsideour direct control such as rising yields and capital constraints, so I would say we have emerged from a tough year relatively intact.

Q: In the context of continued economic turmoil, whatwould you say have been your greatest achievementsin 2011?

A: Despite the increasing challenges of securing new capital andrefinancing debt in Europe in particular, we have continued tosustain the growth of our business through new developments,with two new centres starting construction; one in Germany andone in Brazil. This has been made possible through our proactivecapital recycling strategy, which in Brazil saw the successful InitialPublic Offering (IPO) of our business generate significant funds,and in Europe included the sale of two shopping centres in Spain.

While the Government austerity measures in some Europeanmarkets have undoubtedly affected consumer purchasing powerand reduced tenant sales, we have succeeded in protecting ourincome streams and maintaining high levels of occupancyamongst our tenants. This has been achieved through theefficiency and attentiveness of our property management, as well as our willingness to work closely with tenants to protecttheir business viability.

Finally, we continue to benefit from international expansion, andour growth in rapidly growing economies like Brazil hedges our riskin other markets where GDP is flatter. In 2011 we established apresence in Morocco and Algeria as a service provider to thirdparties, as well as delivering development services to a client inCroatia. The growth in our third party service provision is anothersuccess factor that has enabled us to retain talent, develop newincome streams, and gain insights into new markets.

Q: What does 2012 look like for Sonae Sierra? Arebusiness prospects likely to get worse before they can return to growth?

A: The last couple of years have required us to focus onmaintaining our financial stability, increasing operationalefficiencies, controlling costs and retaining our core competencies.As a business, we have proven extremely resilient and we shouldemerge from the current financial crisis in a strong position toreturn to growth in the context of a new world reality.

2012 will be a year of recession, decisive for the European Union.There is no doubt that the economic conditions with particularimpact in Portugal, Greece and, to a lesser extent, Spain and Italy,will inevitably affect our operational performance in Europe.

However, we are confident that we will continue to show positiveresults, thanks in part to our geographical spread, which enablesus to be present in countries where economic growth is a reality.For instance in Brazil, we have two inaugurations scheduled for2012: Uberlândia Shopping and Boulevard Londrina Shopping.

In mature markets, we will maintain our efforts to improveoperational efficiency, and we will continue to search for newinvestment opportunities, with a focus on Germany and also Italy,where in March 2012 we will inaugurate Le Terrazze in La Spezia.

2SONAE SIERRA Economic, Environmental and Social Report 2011

CEO’s Statement


CORPORATE OVERVIEW

Who We Are… 1

CEO’s Statement 2


Our Company 9



CEO’s Statement continued


I am privileged to lead an organisation which is highly regarded byour customers, partners, banks and suppliers; an organisation thatacts responsibly towards local communities and the environment,and that is driven by dedicated employees who are always lookingfor better ways of doing business. This is why I am confident thatwe will maintain a good position in 2012 and continue to grow inthe years ahead.

Q: Last year you highlighted a number ofopportunities for expansion into new and emergingmarkets. Have these materialised, and do you plan tocontinue growing the business in new geographies?

a: We believe we have the right combination of skills to tap intothe potential offered by new and emerging markets. We continueto actively explore opportunities to export our business model andhave created a new department for this purpose. Some of the keyprinciples underpinning our growth strategy into new and emergingmarkets include:

• Delivering third party services prior to direct investment, tolearn first-hand about the market characteristics and key risksand opportunities.

• Disposing of some of our operational centres in establishedmarkets, to rebalance the weighting of our portfolio in favour offaster growing economies.

• Entering into partnerships with like-minded shopping centreinvestors/operators, to share skills and capabilities as well asinvestment risks.

Currently, we are actively exploring further opportunities in theMediterranean Basin (Morocco and Algeria) and Colombia.

Q: Can you comment on Sonae Sierra’s overallenvironmental and social performance over the past year? What have been the key highlights andchallenges, and how has CR contributed to your wider business objectives?

a: We are already reaping financial benefits from increased eco-efficiency across our portfolio – for example, we have calculatedthat in 2011 we avoided costs of €7.3 million as a result of theenergy efficiency measures we have implemented since 2002.With regards to social aspects we have also maintained a strongperformance, sustaining levels of tenant and visitor satisfaction,our investment in local communities and reducing accidentsamong our workforce.

For Sonae Sierra, sustainability means the continuous evaluation of our economic, social and environmental performance, seeking toachieve a harmonious balance between all three areas. We continueto be viewed as an international benchmark of sustainabilityexcellence in the shopping centre sector, as proven most recentlyby our funds being ranked as the most sustainable in Europeaccording to the Global Real Estate Sustainability Benchmark.

We believe that sustainability will increasingly become a decisivefactor in our relationship with our stakeholders. Society isbecoming more and more aware of environmental and socialquestions and is rewarding those companies that have responsibleand resilient business strategies. Legislation reflects this trend,and is progressively more demanding. Finally, through careful costbenefit analysis, we are able to prove that sustainability principlesincorporated in all business areas can result in lower operationalcosts, which in turn lower our service charges for tenants andcontribute to higher occupancy and satisfaction levels.

CORPORatE OvERvIEw

Who We Are… 1

CEO’s Statement 2


Our Company 9



The Year at a Glance


Key ActivitiesINVESTMENT

• Successful Initial Public Offering(IPO) of Sonae Sierra Brasil

• Sale of Plaza Éboli and El Rosalshopping centres in Spain to Doughty Hanson for €120 million

• Acquisition of the remaining25% of Plaza Mayor Shopping inSpain on behalf of the SierraFund, making it now the soleowner of the asset

• Successful refinancing ofAlgarveShopping in Portugal

• Completion of the expansionand refurbishment of ShoppingMetrópole and the expansion of Shopping Campo Limpo1

(both in Brazil)

DEVELOPMENT

• Commenced construction of anew project, Passeio das ÁguasShopping, in Goiânia, Brazil

• Announced a joint venture with MAB Development todevelop a shopping centre in Solingen, Germany

• Entered the final stage ofconstruction of Le Terrazze inItaly and Uberlândia Shopping in Brazil

• Proceeded with thedevelopment of BoulevardLondrina Shopping in Brazil

MANAGEMENT

• Proceeded with the letting of Le Terrazze (Italy); UberlândiaShopping and BoulevardLondrina Shopping (Brazil)

• Initiated the letting of Solingenin Germany

SERVICES TO THIRD PARTIES

• Entry into the Moroccan market with a contract toprovide development servicesfor a shopping centre project in Casablanca

• Entered the Algerian marketthrough a joint ventureagreement with Cévital Group to provide development,property management andleasing services for shoppingcentres in this country

• Signed property managementand/or leasing contracts withthird parties for a further nineshopping centres in Europe

• Development managementservice agreement for a new shopping centre in Zagreb, Croatia

Entry into

keygrowthmarkets

CORPORATE OVERVIEW

Who We Are… 1

CEO’s Statement 2


Our Company 9


1 Since we have a minority position in this shopping centre and the refurbishment process was controlled by the other centres owner, we did not implement our Safety, Health andEnvironment Management System (SHEMS) procedures for development on this project. Therefore, no information regarding this completed project’s energy and waterconsumption; waste recycling rates and safety and health performance is made available in the report. Nevertheless, it is a site managed by Sonae Sierra and we consideradequate reporting on the existence of these works.

AlgarveShopping, Portugal


The Year at a Glance continued


123.42010

112.82011

2008 6,166

6,3402009

6,4812010

6,3202011

€6,320mOMV of Assets under Management (€ million)

2008

2009

€112.8mEBITDA – IAS (€ million)

8,495Number of tenant contracts under management

108.8

105.9

8,495

8,521

8,924

8,455

€1,173mReal Estate NAV as of 31 Dec (€ million)

2,234GLA under management (000’s m2)

1,924GLA owned in operating centres (000’s m2)

1,173

1,251

1,228

1,416

1,924

2,017

2,059

1,963

2,234

2,220

2,284

2,163

CORPORATE OVERVIEW

Who We Are… 1

CEO’s Statement 2


Our Company 9


Economic Performance: Key Achievements and Performance Indicators

• Increased our direct net profit to €61.1 million, up by 6% in comparison with 2010.

• Reduced our loan-to-value ratio from 46.4% to 43.7%.

• Increased our global rental income to €431.8 million, up by 1% in comparison with 2010.

• Distinguished as the Best Developer Overall and Best Retail Developer in Portugal; Best Retail Developer in Brazil and Best RetailDeveloper in Latin America in the seventh edition of the Euromoney magazine Real Estate Awards for Excellence.

95.8

95.9

96.4

96.7

96.7%Average Occupancy Index

(% by GLA, across our owned portfolio)

2010

2011

2008

2009

2010

2011

2008

2009

2010

2011

2008

2009

2010

2011

2008

2009

2010

2011

2008

2009

-116.1

-111.0

8.7

9.7

€9.7mConsolidated Net Profit – IAS (€ million)

2010

2011

2008

2009




Environmental Performance: Key Achievements and Performance Indicators

• Sonae Sierra property funds ranked as the most sustainable in Europe and third worldwide by the Global Real Estate SustainabilityBenchmark (GRESB), which establishes a ranking of the property funds and companies of the real estate sector that are mostcommitted to the environment.

• Sonae Sierra ranked as the leader of the Corporate Climate Responsibility Index published by ACGE in Portugal for the sixth time.

• ISO 14001 certifications achieved for a further three shopping centres and two construction works. Le Terrazze in Italy was the firstshopping centre in the world to simultaneously achieve ISO 14001 and OHSAS 18001 certifications for the Safety, Health andEnvironment Management System (SHEMS) of its construction works.

Boavista Shopping, Brazil Freccia Rossa, Italy ArrábidaShopping, Portugal

CORPORATE OVERVIEW

Who We Are… 1

CEO’s Statement 2


Our Company 9


0.028Greenhouse gas (GHG) emissions of our ownedportfolio and corporate offices (tCO2e/m

2 GLA)

0.028

0.034

0.067

0.071

2010

2011

2008

2009

553

527

514

514

514Electricity efficiency (excluding tenants) of ourowned portfolio (kWh/m2 mall and toilet area)

2010

2011

2008

2009

3.7Water efficiency (excluding tenants) of our owned portfolio (litres/visit)

3.7

3.7

3.8

3.6

2010

2011

2008

2009

42

46

51

53

53%Total waste recycled as a proportion of waste produced(% by weight, across our owned portfolio)

2010

2011

2008

2009



Social Performance: Key achievements and Performance Indicators

• Maintained high levels of satisfaction among our tenants, visitors and our employees.

• Reduced the rate and severity of work accidents in our workforce in comparison with 2010.

• Distinguished at the StrategicRISK European Risk Management Awards in the “Most Innovative Use of IT or other Technology”category for our Safety, Health and Environment Inspections System.

• OHSAS 18001 certifications achieved for a further five shopping centres and two construction works (including Le Terrazze,highlighted on the previous page).

2 In 2011, this indicator included investments in CR made through development projects’ marketing budgets. This data was not included in previous years. It also includes donationscollected from shopping centre visitors.

3 Safety, Health and Environment Preventive Observations (SPOs) are a form of safe behaviour audit undertaken at our shopping centres in operation. For further details, please seepage 102.

passionate about

innovative,sustainableideas for ourindustry

CORPORatE OvERvIEw

Who We Are… 1

CEO’s Statement 2


Our Company 9


the Year at a Glance continued

4.6Tenant Satisfaction Index(scale of 1 (‘not satisfied’) to 6 (‘very satisfied’))

4.6

4.6

4.6

4.2

2010

2011

2008

2009

€1.484mMarketing investments in CR and othercommunity contributions (€ million)2

1.484

1.219

1.143

2.380

2010

2011

2008

2009

€528Investment in staff training and development(€ per capita)

528

776

1,195

900

2010

2011

2008

2009

7.8Number of non-conformities per hour of reference SPO3

7.8

5.8

5.7

7.9

2010

2011

2008

2009

Click here to view the list of further awards and distinctions which we received in 2011



Progress against Corporate Responsibility Targets

At the end of 2010 we defined 36 CR targets to be achieved by the end of 2011. The chart and table below summarise our performanceagainst these targets. Our performance against each individual target is reported within each impact area chapter in this report.A comprehensive review of our performance against all CR targets, including details of the criteria used and procedures followedto evaluate target achievement can be downloaded from our website.

To ensure that we make progress towards our long-term CR objectives, we set 69 additional CR actions to be implemented in 2011 andcommissioned an external review to check that they had been effectively implemented.

A comprehensive review of the CR targets and actions we accomplished in 2011 can be downloaded from our website.

http://www.sonaesierra.com/en-gb/corporateresponsibility/reportsandfeedback/reports/2011reports.aspx

Further reference:

Summary of achievement against 2011 CR targets

Target achievement

0%

51-75%

76-99%

100%

n.a.

2011 CR target achievement by impact area

Parque D. Pedro Shopping, Brazil

23

6

1

3

3

CORPORATE OVERVIEW

Who We Are… 1

CEO’s Statement 2


Our Company 9



CR Impact Area Number of targets 0% 1-25% 26-50% 51-75% 76-99% 100% N/A

Environmental Management 3 – – – – – 3 –Energy and Climate 2 – – – – – 2 –Water 2 1 – – – 1 – –Waste 5 1 – – – – 4 –Biodiversity and Habitats 2 – – – – – 1 1Suppliers 3 – – – – – 2 1Tenants 4 1 – – 1 1 1 –Communities and Visitors 2 – – – – 1 1 –Employees 2 – – – – – 2 –Safety and Health 11 3 – – – – 7 1

TOTALS 36 6 – – 1 3 23 3



Our Company


Sonae Sierra is the international shopping centre specialist that is passionate about bringing innovation and excitement to theshopping industry. Incorporated in Portugal in 1989, Sonae SGPS(Portugal) and Grosvenor (United Kingdom) each own 50% ofthe Company.

We have an integrated business which encompasses owning,developing and managing shopping centres as well as the provisionof services to third parties in markets as diverse as Europe, SouthAmerica and North Africa.

Our proactive approach to the business ensures that we have thenecessary capital required to maintain and market our shoppingcentres, attract new and innovative tenants and to increase ourcentres’ asset values. This strategy has allowed us to develop aunique know-how and has earned us international recognition forthe development of innovative products and delivery of high-quality property management services. This in turn has enabledus to develop our activity as a service provider to third parties.

On 31 December 2011 we were operating in Portugal, Spain, Italy, Germany, Greece, Romania, Morocco, Algeria, Colombiaand Brazil4. We were also providing services to third parties inCroatia. We owned 49 shopping centres with a total GrossLettable Area (GLA) of 1,924,117m2. We had five projectsunder construction, with a combined total GLA of 237,800m2,and six new projects in different phases of development inPortugal, Italy, Germany, Greece, Romania and Brazil. We alsomanaged and/or leased a further 22 shopping centres and twonew projects on behalf of others.

As a pioneer in the creation of themed shopping centres,Sonae Sierra remains a leader in the development of uniqueconcepts for exceptional shopping centres that offer greatexperiences and turn customers into fans. In 2011 our totalportfolio under management – including shopping centresowned by third parties – welcomed 428 million visits.

49 ownedshoppingcentres inoperation

8,495contracts with tenants

5 shopping centres under construction

operations in

3 continents

and 11 countries

1,090direct employeesworldwide

CORPORatE OvERvIEw

Who We Are… 1

CEO’s Statement 2


Our Company 9


4 Our countries of operation listed here include those where we have an established presence in the market and/or are actively pursuing new investment opportunities. We differentiate thesefrom those markets where we are merely providing services to third parties with no immediate prospects of direct investment or growth, e.g. Croatia. However, in the environmental andsocial performance sections of this report, we restrict our performance reporting to direct operations only; none of our third party service contracts are included in impact measurements.

22 contracts with thirdparties for the provisionof property managementand/or leasing services


Our Company continued


Our vision is to be the leading international shopping centre specialist.

Our mission is for Sonae Sierra to be the international shopping centre specialist that providesultimate shopping experiences to customers and creates outstanding value to shareholders,investors, tenants, communities and staff, while contributing to sustainable development.

Our vision and mission are underpinned by a set of core values and principles regarding ourbusiness culture, responsibility towards our staff, the environment and local communities where we operate and independence from political power.

To read about our values and principles see:http://www.sonaesierra.com/en-gb/aboutus/visionmissionandvalues.aspx

Further reference:

Plaza Mayor, SpainGli Orsi, Italy

Alexa, Germany

Centro Colombo, Portugal

CORPORATE OVERVIEW

Who We Are… 1

CEO’s Statement 2


Our Company 9


http://www.sonaesierra.com/en-gb/aboutus/visionmissionandvalues.aspx

Sierra Investments

Sierra Funds

Sierra Developments

Sierra Management

Sonae Sierra Brasil

InvestmentDevelopmentManagement

SONAE SIERRA

Corporate Services



Organisational Structure

Sonae Sierra is a holding company for four separate Sonae Sierra businesses: Sierra Investments, Sierra Developments, SierraManagement, and Sonae Sierra Brasil. Our businesses, with the exception of Sonae Sierra Brasil, also act as knowledge and serviceproviders to third parties.

Sierra Investments owns the Company’s shopping centres and is responsible for our investment activity. It contributes to the Company’sresults through a combination of net operating income from shopping centres and, in the normal course of events, an increase in themarket value of the shopping centres owned and in operation. The team takes a long-term view of the potential of an asset to increasein value over time, investing in a combination of assets developed by Sierra Developments as well as acquired from third parties.Sierra Investments holds 50.1% of the Sierra Fund and 47.5% of the Sierra Portugal Fund, thus maintaining its position as co-ownerand manager of the Funds’ underlying assets. Applying the extensive experience it has acquired over the past, this business also actsas a knowledge provider to third parties.

Sierra Developments’ constantly seeks opportunities to develop new shopping centres. This business applies its internal expertise fromthe conceptual architectural design phase through to the construction and engineering management of shopping centres (includingexpansion and refurbishment projects). Sierra Developments is responsible for developing new and innovative concepts that are adaptedto local communities’ needs, are respectful of local values and culture and create value based on a sustainable and long-term approach.Leveraging on its track record and know-how, Sierra Developments also provides development services to third parties.

Sierra Management is responsible first of all for managing shopping centres for Sonae Sierra and co-owners, with a focus on maximisingtheir long-term value. Secondly, the business is responsible for leasing the retail premises within each shopping centre, including thevacant shops in our operating centres and those in projects that are still in the development stage. Sierra Management also providesmanagement and/or leasing services to 22 shopping centres that are owned by third parties.

Sonae Sierra Brasil is a 50/50 partnership between Sonae Sierra and Developers Diversified Realty (DDR), one of the USA’s largest realestate investment trusts (REIT) focused on the shopping centre sector. Sonae Sierra Brasil’s business operates autonomously and is focusedon investing in, developing and managing shopping centres in Brazil. The business aims to become one of Brazil’s leading companies in theshopping centre sector. Sonae Sierra Brasil is now listed in the IBovespa (the Brazilian Stock Exchange) with a 30% free float.

All our businesses are supported by Corporate Services which includes: Finance, Legal, Taxes, Human Resources, Communication, Safety,Health and Environment, CR and our European Back-Office.

CORPORatE OvERvIEw


Who We Are… 1

CEO’s Statement 2


Our Company 9


Key facts by country(as on 31 December 2011)



Where We Operate

Our strong partnership policy, both with international investors and local partners, provides the financial backing and market intelligencenecessary to successfully develop new business in new geographies. Currently we are present in Portugal, Spain, Italy, Germany, Greece,Romania, Morocco, Algeria, Brazil and Colombia. We are also providing services to third-parties in Croatia.

Italy

Germany

Romania

Croatia

Greece

Algeria

Brazil

Spain

Portugal

MoroccoColombia

Portugal Spain Italy Germany Greece Romania Brazil Total

Number of shopping centres owned5 21 9 4 3 1 1 10 49

GLA of owned shopping centres (m2)6 806,841 415,650 146,308 149,289 21,058 11,555 373,416 1,924,117

Number of shopping centres managed 12 4 1 2 – 1 – 20on behalf of other owners

GLA of shopping centres managed 126,830 130,810 21,765 26,506 – 3,634 – 309,545on behalf of other owners (m2)

Visits to owned shopping centres (millions) 176.0 61.6 18.9 32.6 1.6 3.2 102.5 396.3

Visits to all shopping centres 184.9 73.9 22.1 38.1 1.6 4.8 102.5 428.0under management (millions)7

Rents received at all shopping centres 191.9 64.9 25.5 46.2 1.6 1.6 102.1 433.8under management (€ million)8

Tenant sales at owned 2,010.1 676.3 284.9 480.4 14.7 10.3 1,709.3 5,186.0shopping centres (€ million)9

Tenant sales at all shopping centres 2,170.9 839.6 309.6 501.0 14.8 16.8 1,709.3 5,562.0under management (€ million)

Costs by country (€ million)10 95.6 18.9 13.5 12.1 6.7 1.7 18.4 170.6

Number of direct employees11 409 111 55 50 17 30 413 1,090

CORPORATE OVERVIEW


Who We Are… 1

CEO’s Statement 2


Our Company 9


Key

Countries where we are present

Other countries where we areproviding services to third parties

5 These figures cover shopping centres that are 100% and co-owned by Sonae Sierra.6 GLA figures are periodically confirmed by technical specialists, sometimes leading to adjustments of these figures with respect to individual shopping centres.7 These figures cover the total number of visits welcomed by all Sonae Sierra owned shopping centres and shopping centres managed on behalf of other owners.8 Rents have been calculated based on account performance between 1 January 2011 and 31 December 2011.9 These figures do not include sales achieved by tenant owners (those who own individual units in our centres). These figures have been calculated based on account performance

between 1 January 2011 and 31 December 2011.10 Costs by country include costs associated with external suppliers and services, costs with common charges, buy out costs and other operating expenses. The Netherlands is not

included as a ‘country’ in this table, although it is within the value of total costs. Costs by country have been calculated based on account performance between 1 January 2011 and31 December 2011.

11 Sonae Sierra also has three employees based in The Netherlands, one employee based in Colombia and one employee based in Algeria. These five employees are included in thetotal number of employees reported in the end column of this table.




Corporate Governance

Sonae Sierra’s corporate governance policies were adopted by the Company benefiting from the models of its shareholders, Sonae andGrosvenor. The shareholders’ corporate governance policies impose levels of transparency, independence, remuneration compliancerules and CR policies which have contributed to shaping Sonae Sierra’s own management model, corporate values, business strategy, CR policies and transparency in public reporting.

The top corporate body of the Sonae Sierra group of companies is the General Shareholders Assembly which, among other prerogatives,appoints the Board of the General Shareholders Assembly, the Fiscal Board, the Compensation Committee and the Board of Directors ofthe Company. Sonae Sierra’s Board of Directors takes responsibility for the Company’s strategy, long-term business plan, finance andreporting. It consists of eleven members, six of them being executives and five non-executives. Each executive member of the Board isgiven responsibility for certain businesses or areas of the Company, including the Sustainability Office. When appointing new Boardmembers, shareholders take into consideration the qualifications and expertise of the candidates and their understanding of theeconomic, environmental, and social issues which are of relevance to our business.

The Executive Committee is responsible for the day-to-day operations of the Company, which encompasses CR activities. The ExecutiveCommittee meets eleven times a year and may invite other company executives to attend its meetings. The Board of Directors and the Executive Committee are supported by three specialised Committees: Investment, Finance and Audit & Compliance Committees.The Investment Committee and the Finance Committee are chaired by the CEO. The Audit & Compliance Committee is chaired by anindependent, external person chosen by the Board of Directors.

CORPORatE OvERvIEw

Who We Are… 1

CEO’s Statement 2


Our Company 9


General Shareholders Assembly

AUDIT & COMPLIANCE COMMITTEE

David Jenkins (Chairman), Ângelo Paupério, Nicholas Scarles

Secretary: Joaquim Ribeiro

BOARD OF DIRECTORS

Non-Executive: Paulo Azevedo (Chairman), Mark Preston, Neil Jones, Nicholas Scarles, Ângelo PaupérioExecutive: Fernando Guedes Oliveira (CEO), José Baeta Tomás, Edmundo Figueiredo, Pedro Caupers, Ana Guedes Oliveira, João Correia de Sampaio

Secretary: Joaquim Pereira Mendes

INVESTMENT COMMITTEE

Fernando Guedes Oliveira (Chairman), Neil Jones, Ângelo Paupério, Edmundo Figueiredo, Nicholas

Scarles, Pedro Caupers, Ana Guedes OliveiraSecretary: Joaquim Pereira Mendes

OMBUDSMAN

Danilo Picolo

FINANCE COMMITTEE

Fernando Guedes Oliveira (Chairman),Neil Jones, Nicholas Scarles, Ângelo Paupério,

Edmundo FigueiredoSecretary: Joaquim Pereira Mendes

EXECUTIVE BOARD

Fernando Guedes Oliveira (Chairman), Edmundo Figueiredo, Pedro Caupers, Ana Guedes Oliveira, João Correia de Sampaio.

FISCAL BOARD

David Jenkins (Chairman)Effective members: Jorge Felizes Morgado,

António Barbosa SantosAlternate: Oscar Alçada Quinta

SROC: Deloitte & Associates

COMPENSATION COMMITTEE

Paulo Azevedo, Mark Preston

Click here to read our response to the GRI criteria on Governance and Commitments

Click here to read the biographies of the Sonae Sierra Board Members and Executives




CORPORatE OvERvIEw

Who We Are… 1

CEO’s Statement 2


Our Company 9


Corporate Governance (continued)

Our Code of Conduct includes a set of ethical principles which apply to everything we do and outline our commitment to success whilstoperating with integrity, openness and honesty. The Code also promotes ethical and responsible decision-making by providing guidanceon dealing with issues such as bribery, corruption, legal compliance, equality and human rights. Whilst the Executive Committee isultimately responsible for managing these issues, ethical conduct is a personal responsibility and every employee is held accountable forhis or her behaviour. The Sierra Ombudsman promotes compliance with our Code of Conduct and encourages behaviour aligned with ourethical principles. The Ombudsman is an independent facilitator to whom all stakeholders can present their complaints with assurancethat they will be processed, investigated, and responded to in a timely and sensitive manner.

Click here to read our response to the GRI criteria on Corruption, Anti-Competitive Behaviour and Compliance

Click here to read our response to the GRI criteria on Human Rights

our code of conduct includes a set of ethicalprinciples which apply to everything we do andoutline our commitment to success whilst operating

with integrity,

opennessand honesty


Our Business Strategy


How we Create value

With over two decades of experience and with operations in three continents, Sonae Sierra creates value for stakeholders throughout theentire lifecycle of each asset.

The combination of our experience, our commitment to innovation and our long-term approach to business have created an integratedstrategy that today embraces shopping centre development, ownership and management, as well as knowledge provision to our clients.Through this strategy we have developed a unique understanding of the business and markets we operate in, as it is applied to our ownshopping centres as well as those owned by third parties. This unique set of skills has added to Sonae Sierra’s value chain and fuelled ourpassionate determination.

CORPORatE OvERvIEw

Who We Are… 1

CEO’s Statement 2


Our Company 9


INTEGRATED APPROACH DEVELOPMENT

PROPERTY MANAGEMENT

ASSETMANAGEMENT

PRE DEVELOPMENT

wE mANAgEWe manage our assets in a way that maximises

returns for our clients, tenants and investors whilstalso delivering value for communities and visitors

and ensuring efficient use of natural resources.

wE AcQuIREWe acquire the completed assets, many of which

we co-own through investment funds, offeringinternational investors sustainable financial rewards

from dynamic, high quality retail assets.

wE fuNdWe provide effective investment solutions that

utilise capital while maximising returns.

wE fINdWith extensive knowledge of the shopping centre business,

we perform market, cost, community and environmentalstudies to identify sustainable retail opportunities.

wE dESIgNWe create innovative schemes to offer exceptional retail

experiences and bring vibrancy to the local area whilstsustaining environmental resources.

wE dEvElopCombining know-how and experience, we bring

together exceptional construction and marketingsupport to develop and commercialise

sustainable buildings.


Our Business Strategy continued


Our RelationshipsOur stakeholders

We believe that conducting our activities in a way that is sensitive and responsive to our stakeholders’ needs and concerns is vital for thelong-term success of our business. We employ a range of stakeholder engagement techniques and receive valuable feedback from ourinvestors, tenants, clients, visitors, employees, suppliers and from local community members which can help us to refine our approach ata corporate level as well as allow us to identify and implement improvements on individual sites. The diagram below highlights our mainstakeholder groups and examples of engagement and/or feedback received in 2011.

Click here to read about the stakeholder engagement techniques we employed in 2011 and key feedback received

More detailed commentary on feedback received from stakeholders in 2011 and the ways in which we responded to this feedback can befound in the Suppliers, Tenants, Communities and Visitors and Employees chapters of this report.

CORPORATE OVERVIEW

Who We Are… 1

CEO’s Statement 2


Our Company 9


CLIENTSINVESTORS

&FINANCIERS

THE MEDIA

SHOPPING CENTRE

VISITORS

LOCAL AUTHORITIES EMPLOYEES

LOCAL COMMUNITY

MEMBERSSUPPLIERS

TENANTS

OUR STAKEHOLDERS

98% of our shopping centres achieved a tenant satisfaction

rating of 4 or above on ascale of 1 (‘not satisfied’)

to 6 (‘very satisfied’)

We have received some

positive feedback from our property

management services’ clients

12% of visitors say that a company’s

environmental and social track record influences which shopping centre

they visit and 23% say it influences what they buy

83% of staff responding to our Employee

satisfaction survey agreed

that Sonae Sierra is a good company

to work for

Property management suppliers’ audits

showed good team work

and organisation but knowledge of

our safety procedures could be improved

CommunityAdvisory Panels were held across

29 of our shoppingcentres and new projects in 2011, giving us useful

insights on community perspectives

We engaged with local authorities

during the shopping centre

planning, development and operations phases

We received 5,082 cases of press coverage

covering economic, environmental and

social aspects ofour performance,

96% were positive or neutral

We were invited by one investor to

participate in the Global Real Estate

Sustainability Benchmark (GRESB),

and as a result our funds were ranked

as the most sustainable in Europe




Our Partnerships & Clients – past and present

When it comes to shopping centres, we’re the partner of choice. Our business, quite simply, would not be what it is today without ourpartners ( ) and services clients ( ). With their backing, we can ensure we have financial strength, and also the ability to quickly gain anin-depth knowledge of markets, and create new opportunities.

P C

CORPORATE OVERVIEW

Who We Are… 1

CEO’s Statement 2


Our Company 9


PORTUGALEstevão NevesBensaude GroupSonae DistribuiçãoEstação ShoppingCGD

P

P

P

P

P

BRAZILMultiplanTivoli EPEnplanta EngenhariaMarco ZeroCredit Suisse HG

P

P

P

P

P

UNITED KINGDOMGrosvenor Fund ManagementMiller DevelopmentsRockspringCastle CitySchroders Investment ManagementAberdeen Property InvestorsScottish Widows

P

P

P

P

P

P

C

FRANCECNP AssuranceCDCFoncière Euris

P

P

P

THE NETHERLANDSING Real EstateING DevelopmentsAPG InvestmentsMAB Development

P

P

P

P

GERMANYDekaUnion InvestmentCommerzbankBalsa

P

P

C

C

SPAINLAR GroupMall GroupIberdrolaEroski GroupBanco Santander

P

P

P

C

P

USAAIGTIAA-CREFDDR

P

P

P

GREECECharagionis GroupLamda Development

P

P

MOROCCOMarjaneFonciere Chellah (CDG Group)AUDA – Agence d’urbanisation etde Developpement d’Auda

C

C

C

ITALYCoimpredilP

FINLANDKEVAIlmarinen

P

P

ALGERIACévital GroupP

COLOMBIACentral ControlP

GREECE / CROATIA Bluehouse CapitalC



CORPORatE OvERvIEw

Our Medium- to Long-term Strategy

Research into social, consumer and technological trends suggests that we are likely to see a rapid transformation in the global retailindustry over the next decade brought about by the fast-growing use of mobile internet devices, demographic changes; shiftingconsumer behaviour and preferences and growing segmentation between different customer groups. To succeed in this new era of retail,we will need to continue focusing on the ultimate experience of retail customers, and we aim to improve this by offering premium spaceand unique shopping centre concepts which remain a destination of choice for visitors.

Our business strategy to achieve this is very clear. We continue to focus our attention on the five strategic axes that we identified aspriorities in 2010.

• Maintain and enhance our shopping centre specialism, continuing to integrate our investment, development and propertymanagement business, and focusing on the highest quality product available in any given market. As part of this we will continue topursue the delivery of property management services to third parties.

• Continue to pursue international growth and to enter new and emerging markets where the retail industry is still evolving andconsumer purchasing power is increasing. We expect to see further growth in our operations in the Mediterranean Basin and LatinAmerica and to expand further in other emerging markets, based on third party services.

• Improve our capital intelligence, by further developing our capital raising capabilities and pursuing our capital light approach. Thisincludes the delivery of third party services and taking minority shareholding positions in new joint venture partnerships. We alsoanticipate reducing our capital involvement, and in some cases disposing of non-core operational centres in established markets, tofree up capital to finance our development pipeline in growth markets.

• Create the ultimate shopping centre experience by developing innovative shopping centre concepts that bring together the righttenant mix, architecture, ambience, services and customer experience. Our ultimate aim is to become the destination of choice and toprovide customers with a venue where their needs, aspirations, desires and expectations come together. For us, each one of ourcentres is more than a building: it is a living space in continuous evolution. As a company we will continue to focus progressively onprime assets and team up with key tenants and selected partners from other industries to develop new and exciting customerexperiences, in line with consumer trends.

• Undertake dynamic portfolio management allowing us to shift the weighting of our portfolio. For mature markets, this means we arelikely to see the sale of more properties and a reduction in our fund stakes; whilst emerging markets and geographical areas withgrowth potential will gain weight in Sonae Sierra’s portfolio.

We are aware that the negative economic cycle we are presently experiencing brings with it important challenges, but we are confident inour ability to execute the defined strategy and, with rigour, efficiency and determination, to overcome those challenges.


Who We Are… 1

CEO’s Statement 2


Our Company 9




CORPORatE OvERvIEw


Who We Are… 1

CEO’s Statement 2


Our Company 9


Risk Management

We operate a Risk Management Working Group to serve as facilitator and promoter of risk management best practices in all parts of theCompany. The Working Group gathers information and reports on the risks that the Company is facing or may face in the future andreports, via the CFO, to the Audit and Compliance Committee of the Company. In this context, the Risk Management Working Group mayfoster initiatives to improve the Company’s risk management information systems.

In 2011 we reviewed our risk matrix and added two new risks (environmental and services provision risks) whilst the emphasis on someindividual risks has changed due to the wider economic context. The Working Group analysed three risks in detail (sovereign and politicalrisks, contract integrity and rents sustainability) and established a policy, monitoring procedures and mitigation actions for each one.Other activities included the development of a policy for Medium-term Liquidity Management and the commencement of the BEST12

training programme for Sonae Sierra employees on the Anti-Corruption Policy. Our Risk Management targets for 2012 are to update andapprove the Sonae Sierra Risk Matrix and to deliver training on the Company's anti-corruption policy.

The table below presents a summary of our key controllable and non-controllable financial risks and mitigation strategies.

12 BEST stands for ‘Behaviour with Ethics Sierra Training’.

Key controllable risks

Risks

tenant Default Risk: The trading environment has been toughfor tenants in Portugal, Spain and Greece and it has beenincreasingly difficult for us to collect rents in some areas inthese countries. There are also potential risks in Italy.

vacancy Risk: With many tenants facing financial challenges in some markets, we are at risk of having higher vacancy rates.

Mitigation strategy

Our approach to property management has always involved closescrutiny of our tenants’ business performance. Over the past twoyears we have increased the efficiency of our property managementin order to reduce service charges and have negotiated temporaryrental discounts with some tenants. We have also intensified ourefforts to increase footfall in shopping centres through ourmarketing and events programmes. Our geographical spread, and inparticular our current presence in the Brazilian market reduces theimpact that individual tenant default can have on our business.

Key non-controllable risks

Risks

Property valuations Risk: Property valuations are affected bythe prevailing conditions in the property investment marketand the macro economic climate in general, and this impactson our indirect results. Increased yields in many Europeanmarkets have been adversely impacting on property values.

Liquidity Risk: The lack of availability of bank debt in Europeat present constrains our ability to finance new developmentsand refinance loans which are maturing.

Interest Rate Risk: Interest charged on borrowings canconstitute a significant cost for our business.

Exchange Rate Risk: Brazil is the main market where SonaeSierra is exposed to exchange rate risk.

Mitigation strategy

As a counter-measure to mitigate the adverse effects of yield shiftson asset value, we have focused on increasing the operationalefficiency of our shopping centres and introducing tighter assetmanagement controls.

Our capital recycling approach helps us to offset the lack ofavailable bank debt, the intention being to dispose of or refinanceassets in mature markets so as to fund new development activityin rapidly growing economies. We maintain our loan to value ratioat prudent levels (below 43.7%).

Our debt is quite long-term, relatively evenly spread throughout theyears with almost 60% of it being repayable after 2015 only.

We have mitigated exchange rate risk in Brazil through two actions:the Initial Public Offering (IPO) of Sonae Sierra Brasil and using localdebt to finance not only our developments but also some of ouroperational shopping centres in this country. Sonae Sierra Brasil isa 50/50 joint venture with DDR, and this partnership arrangementalso decreases our share of this risk.




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CEO’s Statement 2


Our Company 9


Risk Management (continued)

As a separate but related exercise, Sonae Sierra continues to review the relative materiality of individual environmental and socialimpact areas in terms of both the risk and opportunity that they might represent to the business. We have used a standard riskmanagement framework to evaluate environmental and social issues according to their likelihood/frequency of occurrence and the scaleof impact should the issue arise13. The findings of our latest assessment conducted in 2011 are summarised in the table below. The mainimpact areas identified through this assessment form the basis of our CR strategy and are focused on in detail in the Environmental andSocial Performance chapters of this report.

13 In 2009 and in 2010, a single score from 1 to 5 (very low to high) was allocated to each issue based on an assessment of its likelihood/frequency of occurrence, with reference tolikelihood/ frequency categories used by standard risk management frameworks. The ‘impact’ of each issue was assessed using a weighted average score of five factors which were based on AccountAbility’s five materiality tests established in ‘The Materiality Report – Aligning Strategy, Performance & Reporting’; Maya Forstater, Simon Zadek et al.,AccountAbility, BT Group plc & LRQA, 2006. The CR risk matrix which was developed as a result of this analysis is presented on page 110.

14 According to a pilot study commissioned on two of our assets in Portugal. See page 56 for further details.

l Energy and Climate – Greenhouse gas emissions minimisation; efficient energyuse; sustainable energy supply; climate change adaptation

Risks

• Non-compliance with more stringent regulations which haveemerged under the European Union’s (EU) Energy Performanceof Buildings Directive.

• Increased demand for energy and anticipated increase in energycosts could reduce profitability by 2% - 5% maximum in 203014.

Opportunities

• Avoid costs and reduce environmental impact (€7.3 million costsavoided in 2011 due to energy efficiency measures implemented inshopping centres between 2002 and 2011).

• Achieved recognition through awards, rankings and indices.

• Increase competitiveness and sustain assets’ value by increasingenergy efficiency and/or generating energy on site.

s water – Sustainable water supply; water efficiency and avoiding water pollution

Risks

• Fines can be incurred for non-compliance with local wastewaterregulations.

• Increase in water costs could reduce profitability by between0.15% and 2% maximum in 2030.

Opportunities

• Avoid costs and reduce environmental impact (€0.8 million costs avoided in 2011 due to water efficiency measures implemented inshopping centres between 2003 and 2011).

• Contribute to the recognition of Sonae Sierra as a ‘responsible’ company.

• Increase competitiveness and sustain assets’ value by increasing waterefficiency and/or reusing water on site.

t waste – Increasing recycling and reducing waste sent to landfill

Risks

• Non-compliance with waste management regulations, includingon construction sites.

Opportunities

• Avoid costs and reduce environmental impact (€0.6 million costs saved in 2011 due to the increase in the proportion of waste recycled at shopping centres between 2002 and 2011).

• Contribute to the recognition of Sonae Sierra as a ‘responsible’ company.

• Be prepared for more stringent regulations which could be introduced in the future.

n Biodiversity and Habitats – Reducing negative impacts on biodiversity and enhancing it where possible

Risks

• Non-compliance with EU and local legislation on biodiversity.

Opportunities

• Integrate biodiversity on sites (such as green features that providenatural habitats) to demonstrate commitment; this also may result invisitors staying longer.

• Biodiversity impacts in the supply chain could lead to commodity priceincreases, e.g., impact of deforestation on timber prices in China.




CORPORATE OVERVIEW

Who We Are… 1

CEO’s Statement 2


Our Company 9


l Suppliers – Environmental and social practices along our supply chain

Risks

• Fines/ reputational damage if contractors do not comply withregulations.

• Ineffective delivery of suppliers’ services in shopping centrescan reduce tenant and visitor satisfaction.

• Some supplier businesses may be impacted by commodityprice increases.

Opportunities

• Reduce costs through greater efficiencies in the supply chain.

n Tenants – Increasing tenant satisfaction; engaging with tenants on CR issues

Risks

• Higher void rates leading to lower profitability.

• Not meeting tenants’ expectations in the long-term if/when CR issues become more important.

Opportunities

• Maintain tenant satisfaction (68% of our tenants say CR is animportant factor that contributes to their overall satisfaction).

• Maintain high occupancy rates and rental income.

l Communities and Visitors – Impact on local communities; community engagement and visitor satisfaction

Risks

• Inability to obtain planning permission if cannot demonstrateadded value to local communities.

• Lack of buy-in from local community could reduce footfall.

• Lack of attentiveness to visitors’ needs in the long-termdecreases appeal and competitiveness of the centre.

Opportunities

• Maintain good community relations; this is likely to result in higherfootfall and sales.

• Enhance our brand through projects that demonstrate 'corporatecitizenship' (e.g., Volunteering Day, CR campaigns, educational projects).

• Contribute to sustaining high footfall and sales by being attentive tochanging visitor preferences.

l Employees – Employee satisfaction and retention; equal opportunities and diversity; talent management

Risks

• Non-compliance with regulations on gender equality and non-discrimination.

• Costs associated with employee turnover.

Opportunities

• Increase staff motivation and retention through progressive policiessuch as offering flexible work arrangements.

• Increase competitiveness by retaining talented employees (theestimated value of innovations implemented by Sonae Sierra as aresult of employees’ suggestions is €6.9 million).

l Safety and Health – Safety and health of the workforce; construction site and shopping centre safety

Risks

• Non-compliance with EU and national S&H regulations.

• Fines associated with accidents; delays on construction projects.

• Strong stakeholder expectations in relation to this issue, as seriousaccidents/ fatalities on sites can damage reputation.

Opportunities

• Reduce insurance costs.

• Future-proof assets (buildings need to comply with ever-tighteningS&H regulations).

• Enhance reputation through awards and recognition by stakeholdersfor proactive attitude.

More detailed information about how we manage our environmental and social risks and maximise value generating opportunities isprovided in the Environmental and Social sections of this report.

Risk Management (continued)




CORPORatE OvERvIEw

Who We Are… 1

CEO’s Statement 2


Our Company 9


Corporate Responsibility (CR) Governance and Management System

Sonae Sierra operates six CR Working Groups which between them govern allCR impact areas. These are comprised of employees from across the Company,at different levels of seniority, who take responsibility for Sonae Sierra’sCR performance. One Working Group, Risk Management, is cross-cutting,addressing all impact areas. The Heads of each Working Group arerepresented on our CR Steering Committee which is chaired by our CEO,Fernando Guedes Oliveira. The CR Steering Committee is responsible foroverseeing the organisation’s identification and management of materialCR issues and ensuring that performance in these critical areas is monitoredand improved. The Committee meets four times a year, although additionalmeetings are held if considered necessary.

Throughout the business, and across different functions and divisions, individualmembers of staff have responsibility for implementing specific aspects of CR in theirdaily activities. Safety, Health and Environment objectives form part of all employees’performance appraisals (including Executive Committee members’ appraisals) which linkthrough to remuneration and bonus schemes. We also carry out an annual evaluation ofeach Shopping Centre Manager, which takes into consideration results achieved in terms oftenant satisfaction and the corrective measures implemented in response to Tenant Surveys.

EnvironmentalPolicy,

Safety and HealthPolicy etc.

Corporate Values and

Key Principles

Verification and Validation

Reporting Vision andmission

CR Policy

Targetsand KPIs

ManagementReview andReporting

CR Objectives

SoNAE SIERRA opERAtES SIx cRwoRkINg gRoupS whIch bEtwEENthEm govERN All cR ImpActAREAS. thESE ARE compRISEdof EmployEES fRom AcRoSSthE compANy, At dIffERENtlEvElS of SENIoRIty, who tAkERESpoNSIbIlIty foR SoNAE SIERRA’ScR pERfoRmANcE.


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CEO’s Statement 2


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Corporate Responsibility (CR) Governance and Management System (continued)

We operate a CR Management System in order to monitor our performance and improve it on an on-going basis across all the identifiedimpact areas. The values and principles embodied in our vision are developed into policies and strategies which allow us to translate ourcommitments into practical actions. We track and evaluate our progress against key performance indicators and targets on an annualbasis to ensure that we achieve our long-term objectives.



EnvironmentWorking Group

Energy and Climate

EmployeesWorking Group

Employees

Communities and Visitors

Working Group

Communitiesand Visitors

Safety and Health Working Group

Safety and Health

Water

Business Chain Working Group

Suppliers

Tenants

Waste

Biodiversityand Habitats

Risk Management

All NINE IMPACT AREAS

EXECUTIVE COMMITTEE OF SONAE SIERRA

CORPORATE RESPONSIBILITY STEERING COMMITTEE




CORPORatE OvERvIEw

Who We Are… 1

CEO’s Statement 2


Our Company 9


Safety, Health and Environment Management System

Our Company first developed an Environmental Management System (EMS) in 1999 and in 2005 we were the first company in our sectorin Europe to obtain ISO 14001 certification for our corporate EMS, which covered all our business activities. In 2004, we launched ourSafety and Health (S&H) Policy and in 2008 became the first company in Europe to achieve OHSAS 18001 certification for our corporateS&H Management System. In 2010, we began working on the integration of these two management systems with an aim to exploit thesynergies between them and increase our operational efficiency. In 2011 our integrated Safety, Health and Environment ManagementSystem (SHEMS) became fully operational. It is based on the international standards ISO 14001:2004 and OHSAS 18001:2007 and wasrecertified by Lloyds Quality Register Assurance according to both of these standards in 2011. The SHEMS covers all of our businessactivities (development, investment and property management) and all assets which we own or occupy (shopping centres in developmentand in operation and our corporate offices), in all the countries where we operate.

During the New Business phase of our projects, Environmental Due Diligence andan Environmental Impact Study are developed so that we can understand thepotential environmental liabilities that sites may contain (such as contaminatedland or materials) and therefore guarantee sufficient budget in our InvestmentPlans to adequately deal with these issues. Environmental Due Diligence isalso implemented upon the acquisition of existing shopping centres. It isreinforced by the execution of S&H Due Diligence, which complements theTechnical Due Diligence recommendations and provides Sonae Sierra withinformation on the capability of the existing shopping centre’s systemsto perform according to Sonae Sierra’s expectations.

Policy: S&H, EnvironmentReview by the Management

Checking and Corrective Actions

• Monitoring and measurement• Conformity evaluation• Incident investigation• Non conformities, Corrective and Preventive Actions• Records control• Internal Audits

Planning

• Assessment and control of S&H Risks and Environmental Impacts• Legal requirements and others • Objectives and Targets Program

Continuous Improvement

Implementing and Operating

• Resources, Roles, Responsibility, Accountability and Authority• Competence, training and awareness• Communication, Participation and Consultation• Documents control• Operational control• Emergency Preparedness and response

IN 2011 ouR INtEgRAtEd SAfEty,hEAlth ANd ENvIRoNmENtmANAgEmENt SyStEm (ShEmS) bEcAmEfully opERAtIoNAl. It IS bASEd oNthE INtERNAtIoNAl StANdARdSISo 14001:2004 ANd ohSAS 18001:2007ANd wAS REcERtIfIEd by lloydSQuAlIty REgIStER ASSuRANcEAccoRdINg to both of thESEStANdARdS IN 2011.




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Our Company 9


Safety, Health and Environment Management System (continued)

During the design stage, we have introduced a ‘sustainable shopping centre’ concept, which is achieved through the implementation ofour Safety, Health and Environment Development Standards (SHEDS). The SHEDS consist of 179 standards based on our experience,best available techniques and certification schemes such as LEED® and BREEAM as well as international safety standards. The SHEDSencompass the environmental standards which were previously known as the ESRD (Environmental Standards for Retail Development)prior to the integration of our Environmental and S&H Management Systems. The issues addressed by the SHEDS include:

• Energy • Health and well-being • Site safety conditions

• Water • Land and ecology • Emergency response

• Waste • Fire prevention • Hazardous products

• Transport • Electrical risks • Security

The SHEDS are revised periodically to ensure that they are kept up to date. All new development projects, major expansions andrefurbishments15 are required to achieve 100% compliance with the ‘critical’ SHEDS standards, a threshold which would allow them toachieve a BREEAM ‘Good’ certification. Shopping Metrópole, the expansion project which we inaugurated in Brazil in 2011, introducedmeasures such as minimising the power of lighting in the mall, food-court and car park areas and controlling these areas remotelythrough a Building Management System (BMS), as well as installing energy efficient conveyors and escalators.

Each of our projects under development and all of our operational shopping centres are required to have a specific SHEMS manual inplace to ensure that risks and characteristics unique to each site are managed adequately16. As of 31 December 2011, ISO 14001certifications had been achieved in 90% of our shopping centres in operation and OHSAS 18001 certification had been achieved in 55%.With regards to the development of new shopping centres, since 2004, 23 Sonae Sierra construction sites have achieved ISO 14001certification and four have achieved OHSAS 18001 certification, the most recent being Le Terrazze in Italy, which became the firstshopping centre in the world to achieve joint ISO 14001 and OHSAS 18001 certifications for the SHEMS of its construction works, andUberlândia Shopping in Brazil, which was the second shopping centre to achieve both certifications.

We recognise that creating sustainable buildings does not end once the development has been completed. We monitor the performanceof new shopping centres with respect to energy; water; waste and safety, and identify further improvements that need to be made tooptimise the buildings’ performance and reduce S&H risks. Across our operational portfolio, we have been measuring, monitoring andtargeting energy use and waste management since the year 2000 and water use since 2003. Our energy and water metering strategy is designed to ensure effective sub-metering with connection to each centre’s BMS, which allows us to have a better control of theseutilities’ use. Data collection and monitoring for energy, water and waste is managed through a centralised online database which allowseach of our shopping centre management teams to input environmental performance data and generate reports that can be used tocompare performance across Sonae Sierra's portfolio. This information is also used to set annual targets to improve performance andincrease staff and tenant awareness of all three issues. We monitor and evaluate safety and health performance on a regular basis usingtools such as SHE Preventive Observations (SPO), emergency drills and SHE inspections (covering safety-related equipment andinstallations in tenant units and technical areas). Furthermore, the annual capital expenditure budget allocated to each of our shoppingcentres includes investments to improve the centres’ SHE performance.

We deliver SHE training to our staff and other key stakeholders on an on-going basis, and in 2011 we delivered a total of 147,037 manhours of training (including meetings) on SHE to staff, suppliers and tenants across our shopping centres, development projects and inour corporate offices.

15 Sonae Sierra specifies three types of construction works interventions that may occur: (1) New shopping centres, which are managed by a Development Manager; (2) Expansion orrefurbishment of existing centres, which may be managed by a Development Manager or Asset Manager, and (3) Small works, which may be managed by any person belonging toSierra Developments, Sierra Asset or Sierra Property Management. Since each of these varies considerably in terms of environmental impact, S&H risks and intervention costs,criteria have been set to establish the most appropriate scheme for each case. All new shopping centres and expansions, refurbishments and other works with a construction costover €10 million or a construction cost of more than 10% of the centre’s Open Market Value (OMV) must apply the standard SHEDS procedure. Expansions, refurbishments and otherworks with a construction cost of over €2.5 million but under €10 million or with a construction cost of less than 10% of the centre’s OMV should apply a simplified SHEDS procedure.Finally, expansions, refurbishments and other works with a construction cost of less than €2.5 million should instead apply the ‘Small Works’ procedure defined within our SHEMS.As explained before in Campo refurbishment SHEDS were not implemented.

16 With reference to the three types of construction interventions described in the note above, all new shopping centres must apply the construction works SHEMS. All expansions,refurbishments and other works with a construction cost of more than €2.5 million must apply a Safety, Health and Environment Management Plan (SHEMP). Finally, expansions,refurbishments and other works with a construction cost of less than €2.5 million should instead apply the ‘Small Works’ procedure defined within our SHEMS. One exception tothese procedures in 2011 was the expansion project of Shopping Campo Limpo: since we have a minority position in this shopping centre, we were not able to implement the entiretyof our SHEMS procedures for development on this project. See page 4 for further details.

wE hAvE dEfINEd loNg-tERm objEctIvES INRElAtIoN to EAch ofouR mAtERIAl cR ImpActAREAS. thESE INcludEouR objEctIvESRElAtINg to ShE.

Energy and Climate

water




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CEO’s Statement 2


Our Company 9


Safety, Health and Environment Management System (continued)

In 2011 we also developed a new online management system, called the SHE Portal. This tool, which is expected to be fully operational in2012, will allow us to streamline our SHE management processes and improve the accuracy of data and information reported by holdingall data in one central platform which is accessible to all our staff. We performed audits across our entire portfolio in order to improve theaccuracy and reliability of data reported through the SHEMS, and we delivered training to shopping centre management teams,development teams and staff in corporate offices on how to use the new SHE Portal.

Our CR Objectives

We have defined long-term objectives in relation to each of our material CR impact areas. These include our objectives relating to SHE.These are shown in the table below. Unless otherwise stated, our objectives cover all Sonae Sierra owned shopping centres.

• Achieve a 70% reduction in GHG emissions per m2 of GLA, by 2020, compared to the 2005 level (GHG Protocol scopes 1 and 2, plusbusiness air travel; also includes corporate offices).

• Attain a maximum electricity consumption of 400kWh per m2 of mall and toilet area per year, by 2020.

• Develop and implement a long-term Climate Change Adaptation strategy covering investment, development, management andcorporate activities, by 2020.

• Attain a level of water consumption at or below three litres per visit, by 2020.

• At least 10% of total water consumed to be reused greywater or harvested rainwater by 2020.

• Develop and implement a long-term strategy to ensure a secure water supply, with a particular focus on locations that are vulnerableto water shortages, by 2020.

• Ensure that all discharges to local water courses comply with Sonae Sierra’s wastewater quality standards and pollutant limits, by 2020

taRGEtS FOR 2012

• Ensure that all projects applying the SHEDS (former ESRD version) achieve at least 45% of the available points for applicableLeadership Standards.

• Ensure that all new shopping centre development projects have a valid ISO 14001 and OHSAS 18001 certificate upon opening.

• Achieve ISO 14001 certifications for the SHEMS of one further shopping centre in operation and OHSAS 18001 for a furtherthree shopping centres in operation.

Biodiversity and Habitats

Suppliers

tenants

Communities and visitors




CORPORatE OvERvIEw

Who We Are… 1

CEO’s Statement 2


Our Company 9


waste

Our CR Objectives (continued)

• Obtain a minimum recycling rate of 55%, by 2020.

• Reduce the proportion of waste sent to landfill to a maximum limit of 30%, by 2020.

• Obtain a minimum recycling rate of 80% across Sonae Sierra corporate offices, by 2020.

• Maintain a high level of performance in terms of waste recycling in construction projects and aim to increase the proportion ofconstruction materials with recycled content.

• Promote the use of previously developed land or brownfield land for new Sonae Sierra shopping centre projects and protect andenhance biodiversity wherever possible.

• Strive to protect and enhance biodiversity on both existing Sonae Sierra sites and new projects and add value to new projects byactively integrating biodiversity whenever possible, taking into account the regional context.

• Engage with our development suppliers with the aim of encouraging them to adopt more responsible business practices.

• Foster loyalty amongst frequently used property management suppliers, seeking to help and encourage them to adopt moreresponsible business practices themselves.

• Increase the proportion of materials used in development, expansions and refurbishment projects that are sustainable materials,aiming for 100% of timber used to be certified sustainable timber17 and for the percentage of materials comprising recycled contentto be increased, by 2020.

• Deliver a high quality service to tenants and maintain high levels of satisfaction, striving to achieve an average tenant satisfactionlevel of 4 or above18 in all shopping centres by 2015.

• Engage with our tenants with the aim of helping them to improve their safety, health and environment performance.

• Achieve full implementation of Community Advisory Panels (CAPs) across the whole Sonae Sierra operational and developmentportfolio, by 2014.

• Devise and implement a strategy aimed at involving the largest number of shopping centres’ local communities’ members, in order toimprove communities’ well-being, by 2012.

• Enhance visitors´ recognition of Sonae Sierra’s shopping centres’ sustainability performance.

17 The proportion of timber products used that are from sustainable sources is calculated by value of spend.18 Tenant satisfaction is rated on a scale of 1 (‘not satisfied’) to 6 (‘very satisfied’).

Employees

Safety and Health

Safety, Health and Environment Management System (SHEMS)




CORPORatE OvERvIEw

Who We Are… 1

CEO’s Statement 2


Our Company 9


Our CR Objectives (continued)

• Offer our employees more flexible working arrangements with the aim of becoming a recognised leader in this area, by 2020.

• Adopt and implement a strategy, with the aim of creating the best possible working conditions for all our staff, by 2015.

• Improve workforce ergonomic conditions based on approved standards by the end of 2015.

• Encourage our employees to develop their skills and expertise and foster innovation.

• Enhance the well-being of our workforce and reduce the rate and severity of workplace accidents and occupational diseases, aimingtowards zero.

• Anticipate and prevent all safety risks on Sonae Sierra construction sites, minimising the number of accidents and their severity,aiming towards zero.

• Provide a safe environment for everyone who visits or works within Sonae Sierra shopping centres, aiming towards zero accidents, andpromote safety and health conscious behaviour among our tenants, suppliers and visitors.

• Obtain ISO 14001 and OHSAS 18001 certifications for the SHEMS of all our construction projects and the Sonae Sierra owned assetsthat we have managed for two or more years, by 2015.



We have learned thatit is only the creation

of unique and

exciting shoppingand leisure venuesthat can deliversustainable value

Our integrated approach to shopping centredevelopment, ownership and managementenables us to have an impact on theeconomy which reaches beyond our own direct financial performance andremuneration to our shareholders. Our business creates employment, stimulates localmarkets and contributes to economic growth in thecommunities where we operate.

Through our quest for excellence and our focuson specialisation, we have learned that it is onlythe creation of unique and exciting shopping and leisure venues that can deliver sustainablevalue. We sustain economic growth throughcapital recycling strategies, which allow us toexploit opportunities to develop new shoppingcentres in markets where we are alreadypresent and in new ones. Having establishedourselves as a knowledge provider for thirdparties, we are generating revenue and buildingour experience in emerging markets where we aim to leverage partnerships with localcompanies to make our own investments in thefuture, thus contributing further to economicdevelopment in these regions.

ECONOMIC PERFORMANCE

Loop5, Germany

Freccia Rossa,Italy

NorteShopping, Portugal






a challenging set of circumstances

The businesses we are involved in – namely the development,investment and management of shopping centres – inherentlyface a number of financial, operational and market risks. Lastyear many of these risks were aggravated by continuedrepercussions from the global banking crisis in 2008, and morerecently by the sovereign debt crisis in Europe, especially sincethe month of July 2011. Fortunately, the outstanding quality ofour portfolio and our international presence demonstrated strongresilience against such factors, but the conditions neverthelessmade for a challenging growth environment.

a macro-economic tale of two regions

When reflecting on the challenges we faced in 2011, it is essentialto differentiate between Europe and Brazil.

In Brazil, despite a reduction in the GDP growth rate compared to2010, we are still operating in one of the fastest growing emergingeconomies in the world. And despite the introduction of fiscalmeasures to control rising inflation levels, we do not yet see anysignificant curb on consumer purchasing patterns, so the retailindustry continues to show very strong rates of growth. Our ownperformance as a business echoes this trend. Following the historicmilestone of becoming a publicly listed company as a result of theIPO in February 2011, Sonae Sierra Brasil presented the secondhighest EBITDA figures in the listed sector, and the highest Fundsfrom Operations margin of all our listed peers in the industry.

ECOnOMIC PERFORManCE

the Economic Context




“wIth dIREct REfERENcE to ouR pRofIt ANd loSS AccouNtS, It IS ESpEcIAllyplEASINg to NotE thAt wE SuccEEdEdIN gRowINg ouR dIREct RESultS by 6%IN compARISoN wIth 2010. thIS REflEctStwo kEy StRENgthS to ouR mANAgEmENtStRAtEgy, NAmEly ouR StRoNgopERAtIoNAl pERfoRmANcE ANd ouRRIgoRouS AppRoAch to coSt coNtRol.”

In Europe on the other hand, and particularly in Southern Europe, many of our key markets have been significantlyaffected by the austerity measures imposed as a result of the global financial crisis. Scarcity of debt remained afundamental constraint to our development pipeline, much of which continues to be on hold for the time being.In Portugal and Spain, which together represent 58% of the Open Market Value (OMV) of our European portfolio,Government austerity measures introduced during the year worsened consumer confidence, in turn affecting retailsales, and increasing the probability of retail tenants defaulting on their rents. Having said this, even within Europe,our business benefits from geographical spread since we concentrated our growth in those markets that were notsubject to strict austerity measures for at least part of 2011 (e.g. Italy and Germany), enabling us to compensate forthose that were.

Unsurprisingly, events in the real estate markets followed closely behind such macro-economic trends. So during 2011,our Net Asset Value (NAV) in Brazil increased on a comparable basis, and shopping centre yields suffered littlefluctuation during the year. Unfortunately, yields suffered an increase in Portugal and Greece in line with thesecountries’ overall credit ratings and market perceptions, but fortunately and we are beginning to see some yieldcontraction taking place in Spain. As a counter-measure to mitigate the adverse effects of such yield shifts on assetvalues, we have focused our attention on operational efficiency and introduced even tighter asset managementcontrols. Our aim is to deliver the same levels of service quality at lower costs wherever feasible, thereby contributingto overall asset performance.

Edmundo FigueiredoDirector, Chief Financial Officer



Enhancing profit margins during times of austerity

With direct reference to our profit and loss accounts, it is especially pleasing to note that Sonae Sierra succeeded in growing our directresults by 6% in comparison with 2010. This reflects two key strengths to our management strategy, namely our strong operationalperformance and our rigorous approach to cost control. In fact, we succeeded in decreasing our direct corporate costs by 4% over the year. This was achieved by a continued focus on reducing variable costs (e.g. travel, IT, consultancy budgets, etc.) and a communicationcampaign targeted at staff emphasising the need for cost reduction measures. We have also implemented a series of rationalisationmeasures such as transferring staff from one business or geography to another, thereby retaining key skills within the firm andreallocating resources to growth areas where they are needed.

Extracting value from capital recycling

The prudent attitude employed by banks since 2008 changed little in the past 12 months. Risk continues to be highly priced socommercially favourable loan terms remain hard to secure. As such, at Sonae Sierra we continue to employ a capital-light approach andto focus on opportunities to recycle capital within our own business portfolio.

In this context, the IPO of Sonae Sierra Brasil launched in February 2011 was a major highlight for our business. We successfully sold 30.4% ofour business to retail investors, and generated R$465 million. This sum will enable us to satisfy the financing needs of our new developmentpipeline in Brazil over the next three years, including three developments that are currently underway. Indeed, we are now actively looking fornew development opportunities in underserved Brazilian cities, which have the potential to accommodate further retail expansion.

In Europe, our response to capital constraints has been more cautious, and we have put a number of our development projects on hold for thetime being. Nonetheless, we commenced the development of Solingen in Germany and the construction of Le Terrazze in Italy continuedapace, with opening scheduled for March 2012. We succeeded in selling two of our operational shopping centres in Spain during 2011, despitelittle investor appetite for major acquisitions, and we also refinanced a significant asset in Portugal at favourable rates. These steps will meetthe great majority of our financing needs for 2012, so they place us in a strong position despite unfavourable market conditions.

Outlook for the future

Despite the successes we have achieved in 2011, we are under no illusion that 2012 will be any easier for our business. We will continue toface very challenging economic conditions, particularly as long as the credit situation in the Eurozone remains unclear, and the prospect ofindividual countries defaulting on their debt remains a possibility.

Our strategy for the future is, therefore, to continue hedging our risk exposure to maximum effect:

The Economic Context continued





• We will maintain our loan to value ratio at sensible rates (below 45%), also spreading our loan repayments over long time-periods where feasible.

• We will continue to focus our growth in new and emerging markets, with a view to re-weighting our portfolio towards rapidly growing economies.

• We will boost our role as Knowledge Provider, increasing the sale of services to third parties.

• Finally, we will maintain our unique shopping centre specialism, sharpening our skills to further differentiate us from otherproperty developers. We will continue to foster a culture of innovation and to invest in talent so as to achieve the very best from our people who represent a very significant asset.



Growth in Spite of Capital Constraints

The shopping centre industry is a capital intensive one. To fundand deliver a healthy development pipeline, we are reliant onaccess to capital and debt structured at sensible commercial rates.Unfortunately, both these factors continued to be adverselyaffected in 2011 in many of the markets where we operate, partlyowing to a re-evaluation of risk within the banking sector at large.

The sovereign debt crisis and recent financial instability in Europeinevitably constrained the scale of our development pipeline during2011, and resulted in some projects being put on hold. Despite suchconstraints, we had five shopping centres under constructionduring 2011, representing a total investment of about €522 million.

a healthy pipeline in Brazil

During the third quarter of 2011, we started the construction ofPasseio das Águas Shopping, in the city of Goiânia, the Company’s13th asset in Brazil. Scheduled to be inaugurated in 2013, this newcentre represents an investment of around €167 million, creatingthe largest and most modern shopping centre in the region. Passeiodas Águas Shopping will offer 282 stores within 78,100m2 of GLAand the catchment area of the scheme will have a direct influenceon a population of 1.6 million people in Goiânia and surroundingareas. After its inauguration the shopping centre is expected tocreate employment for over 6,300 people.

We entered the final stage of construction of Uberlândia Shopping,which is due to open in the first quarter of 2012. Located in theMinas Gerais region, Uberlândia Shopping has 89% of its GLAalready let, a testament to the quality and innovation of thisproject. Two of the major anchors, Walmart and Leroy Merlin, havealready opened. The centre will offer shopping, culture andentertainment within 45,300m2 of GLA, encompassing 166 shopunits; six large stores; 17 restaurants; the Walmart hypermarketand five Cinemark cinemas.

We also proceeded with the development of Boulevard LondrinaShopping, a joint venture between Sonae Sierra Brasil and MarcoZero Group which is scheduled to be inaugurated during thesecond half of 2012. Boulevard Londrina Shopping will offer47,800m2 of GLA, 70% of which has already been let to well-known brands and local retailers. The centre will introduce somenew brands to the Londrina region, including Cinemark cinemas,Walmart hypermarket, Magic Games, Memove and others.

Operational Performance





“duRINg thE SEcoNd QuARtER of 2011 wEANNouNcEd thE coNStRuctIoN of A NEwShoppINg cENtRE IN SolINgEN, gERmANy, AS A50/50 joINt vENtuRE wIth mAb dEvElopmENt,REpRESENtINg AN INvEStmENt of AppRoxImAtEly€120 mIllIoN. SolINgEN IS A pRojEct wIth30,000m2 of glA IN A cAtchmENt AREA ofARouNd 270,000 INhAbItANtS.”

ana Guedes OliveiraDirector, Developments

new retail schemes in Italy and Germany

We are on track to complete the final stages of development ofLe Terrazze, our major new retail scheme in Italy, which is close toLa Spezia’s city centre. This €125 million investment will deliver38,600m2 of GLA with over 100 shops, including a hypermarket,a family entertainment centre, a fitness club and 2,000 parkingspaces. We expect Le Terrazze to open with 100% of its GLA isalready let, and anticipate that the shopping centre’s inaugurationwill create 700 new employment opportunities. Due to open inMarch 2012, Le Terrazze has been the first shopping centre in theworld to simultaneously secure both ISO 14001 and OHSAS 18001certification for its integrated Safety, Health and EnvironmentManagement System (SHEMS) during the construction phase. To date the project has also managed to recycle over 99% of the all waste generated on the site.

During the second quarter of 2011 we announced the constructionof a new shopping centre in Solingen, Germany, as a 50/50 jointventure with MAB Development, representing an investment ofapproximately €120 million. Solingen is a project with 30,000m2

of GLA in a catchment area of around 270,000 inhabitants. Thedemolition works have started and leasing is progressing with thelarge shops and tenants. The project is due to open in the fourthquarter of 2013.

We believe in favourable market conditions in both Germany andItaly, so we will continue to actively explore opportunities forfurther growth in these markets.



Upgrading the quality of existing assets

During 2011, we continued to strategically improve our portfoliothrough refurbishment and expansion works to further upgrade thequality of service provision within existing operational assetswherever possible.

• We completed the first phase of the expansion andrefurbishment of Shopping Metrópole, a 31 year old shoppingcentre located in São Bernardo do Campo, São Paulo (Brazil),representing a net investment of R$56.8 million (€24.5 million).As a result, Shopping Metrópole boasts an additional 8,700m2

of GLA, 31 new stores, new façades and a refurbishment of theexisting areas (including floors, ceilings, lighting, furniture, etc.)with a more modern and colourful design. A new nursery room,escalators and ambulatory care facilities were also added.506 new jobs were created as a result of the project.

• We completed the expansion of Shopping Campo Limpo, alsoin Brazil, representing a net investment of R$9.7 million(€4.2 million). The expansion added 18 new shops and around23,500m2 of GLA.

• In Portugal, we proceeded with the refurbishment ofC.C. Continente de Portimão, which was acquired by SonaeSierra in 2007. We also completed the refurbishment of thefood court at CascaiShopping, and refurbished the exteriorareas at Centro Colombo.

• In Germany, we completed the first floor refurbishment atMünster Arkarden, including the reorganisation of retail unitsand the relocation and extension of toilet facilities. As a result,footfall flows to the first floor were significantly improved andfor the first time since opening the centre is fully let.

• Further expansion works are being prepared at CascaiShopping,along with plans for the expansions of AlgarveShopping andNorteShopping in Portugal and Luz del Tajo and Dos Mares in Spain.

During the course of the year we succeeded in obtaining approvalfor a formal change in the use of particular zones within the PlazaMayor and Parque Principado shopping centres in Spain, which willallow for important refurbishment work to be undertaken at thesecentres in the near future. We are also planning to refurbish theleisure area at Centro Colombo in Portugal.

Delivering services to third parties

Providing services to third parties is a key part of Sonae Sierra’sstrategy to grow new income streams and increase know-how and experience in new and emerging markets. In 2011, we grew this side of our business substantially – signing ten new propertymanagement and/or leasing contracts and two new developmentcontracts with clients who recognise our unique specialism in thedevelopment and management of shopping centres.

Operational Performance continued





We intend to reinforce and further increase this area of our businessin future, and have ambitious plans to double such revenues by2015, thereby further driving the international growth of theCompany. This enables us to enter new emerging markets as aservice provider in a capital light mode (before committing to directinvestment) and learn first-hand about the market characteristicsand key risks or opportunities they present. In 2012 we intend to addasset management to the list of services that we already provideto third parties. We believe that our accumulated experience andknow-how in developing, leasing and managing shopping centreswill be of significant value to developers and investors in the retailreal estate business.

Key highlights over the past 12 months include:

• Four new property management agreements in existingmarkets where we are already well established: Le Isole in Italy;Bikini Berlin in Germany; Plaza Éboli and El Rosal in Spain(all for third parties).

• Five new leasing contracts: Carcaixent (Spain); Shopping Park(Italy); Sun Plaza; Vitantis Mall and Magnolia (all in Romania).

• A brand new joint venture agreement with Cévital Group toprovide development, property management and leasingservices for shopping centres in Algeria – a new market forSonae Sierra.

• Entry into Morocco in March 2011, having won a developmentservices mandate for Marina Shopping in Casablanca.

• A contract to provide development services for Vrbani ShoppingCentre in Croatia, signed in September 2011.

Portfolio under management

GLA (000 m2)

No. of contracts

2,234 / 8,4952011

2,220 / 8,5212010

2,284 / 8,9242009

2,163 / 8,4552008

2,183 / 8,1622007

2,001 / 7,2932006

2,455 / 7,1892005



Prime retail assets maintain their income potential

Overall, our property management business coped remarkably well in 2011, maintaining strong performance in both tenant sales andrental income, despite falling consumer confidence in many markets and reduced purchasing spend. But to get a full view of ourperformance, it is important to consider conditions in Europe very separately from those in Brazil.

In Europe, the austerity measures implemented by governments in an attempt to contain the Eurozone debt crisis have impacted onconsumer spending. Sales declined in all European markets we operate in, particularly in the last quarter of 2011, with the exception ofGermany and Italy. Nevertheless, even in some of our worst hit markets such as Portugal and Spain, the decrease in tenant sales in ourcentres has been slower than the decline rate of wider industry benchmarks such as the Eurostart Non Food Consumer Retail Index(excluding fuel). So as a result of the quality of our assets and the attentiveness of our management activities, we have successfullymaintained high levels of occupancy throughout our centres in Europe. This has undoubtedly buffered the potential impact that tenantdifficulties could have had on our rents, and these have remained relatively stable on a like-for-like basis over the 12 month period toDecember 2011.

In Brazil on the other hand, we have enjoyed substantial growth in both sales and rents on a like-for-like basis: sales grew by 12% incomparison with 2010 and rents were up by over 15% (comparing values in Reais). These results are influenced by a very dynamic retailenvironment and the sustained increase in the average net income of the population which has a growing middle class segment. Demandfor retail space is on the rise in this vibrant market, and occupancy rates have reached an all-time high in the country. The North andNortheast regions are presenting some of the highest growth rates, and consequently the performance of Manauara Shopping – locatedin Manaus – has surpassed our expectations. Moreover, we have maintained a high level of satisfaction among our tenants which hashelped us to secure uptake for space in our new projects under construction. All in all, the results presented by Sonae Sierra Brasil havefurther improved our financial position globally, and have enabled us to focus on further expansion plans for this market that still carriesvery significant potential.






“AS A RESULT OF THE QUALITY OF OUR ASSETS AND THE ATTENTIVENESS OF OUR MANAGEMENTACTIVITIES, WE HAVE SUCCESSFULLY MAINTAINEDHIGH LEVELS OF OCCUPANCY THROUGHOUT OURCENTRES IN EUROPE. THIS HAS UNDOUBTEDLYBUFFERED THE POTENTIAL IMPACT THAT TENANTDIFFICULTIES COULD HAVE HAD ON OUR RENTS,AND THESE HAVE REMAINED RELATIVELY STABLEON A LIKE-FOR-LIKE BASIS OVER THE 12 MONTHPERIOD TO DECEMBER 2011.”

Joao Correia de SampaioDirector, Property Managementand Leasing








“IN BRAZIL, WE HAVE ENJOYED SUBSTANTIAL GROWTHIN BOTH SALES AND RENTS ON A LIKE-FOR-LIKEBASIS: SALES GREW BY 12% IN COMPARISON WITH2010 AND RENTS WERE UP BY OVER 15% (COMPARINGVALUES IN REAIS). THESE RESULTS ARE INFLUENCEDBY A VERY DYNAMIC RETAIL ENVIRONMENT AND THESUSTAINED INCREASE IN THE AVERAGE NET INCOMEOF THE POPULATION WHICH HAS A GROWING MIDDLECLASS SEGMENT.”

Jose Baeta TomasDirector, Chief Executive Officer,Sonae Sierra Brasil

Rents

Fixed Rents Variable Rents Total Rents % 11/10 Rents2011 2010 2011 2010 2011 2010 total like-for-like

Portugal 187.7 187.7 4.3 6.8 191.9 194.5 -1.3% -2.0%Spain 62.7 68.6 2.2 2.4 64.9 71.0 -8.6% 2.2%Italy 24.5 23.6 1.0 1.3 25.5 24.9 2.4% 4.2%Germany 44.0 41.4 2.1 1.9 46.2 43.3 6.6% 10.9%Greece 1.5 15.7 0.1 0.7 1.6 16.4 -90.0% -24.3%Romania 1.6 2.0 0.0 0.0 1.6 2.0 -21.0% -21.8%

Europe 321.9 339.0 9.8 13.1 331.7 352.1 -5.8% 0.7%

Brazil (€) 92.3 80.2 9.9 8.2 102.1 88.4 15.5% 15.3%Brazil (R$) 214.2 186.6 23.0 19.2 237.2 205.8 15.3% 15.1%

Total Sierra 414.2 419.2 19.7 21.3 433.9 440.5 -1.5% 3.8%

Rents in € million

Management solutions to enhance tenant performance

Our approach to property management has always involved a close scrutiny of our tenants’ businesses so as to develop a deepunderstanding of their needs and strategic plans. In the challenging context of recent events in Europe, this has enabled us to remain well informed of their businesses’ exposure to key market risks as they unfold. Our proactive management style leads us to monitor ourtenants’ approach and results in terms of sales strategy, marketing campaigns, customer service and competitor landscape, all of whichhas enabled us to advise and support them in their efforts to remain in business.

It is in our best interests to retain tenants in our centres, thereby maintaining high occupancy rates. So in the past 12 months, we havesought to assist them by implementing operational cost efficiencies in a mission to drive down service charges even further. Notablesuccesses in 2011 included the rationalisation of supplier contracts across different centres and the continued scrutiny on non-essentialcosts, which resulted in us cutting some of these out altogether.

Prime retail assets maintain their income potential (continued)








average occupancy index (% by GLa)

2011 2010

Portugal 98% 98%Spain 95% 93%Italy 94% 95%Germany 99% 98%Greece 73% 93%Romania 81% 82%Europe 96% 96%Brazil 99% 98%

Sierra 97% 96%

Prime retail assets maintain their income potential (continued)

Through working in close partnership with our joint venture partners and tenants, we seek to improve the value proposition for the visitorsof our centres and differentiate these further from the competition. As a result, Sonae Sierra’s shopping centres have shown far greaterresilience to retail market declines due to our unique value proposition. Our centres are managed by specialist professionals whoimplement innovative solutions such as improving the tenant mix, prioritising customer service and creating sound marketing campaignswhilst taking a long-term sustainable approach.

Our research suggests that some of the most significant trends amongst consumers worldwide include a move to Go Digital, Go Green and Go Healthy. As a result we are adopting a range of different strategies to respond to these proactively. These range from simple online sales activation programs and loyalty clubs, to the introduction of new eco-brands in our tenant mix and, particularly in Europe, the reinforcement of services in the customer offer such as gyms, sports facilities and health services.

% 11/10 2011 2010 total like-for-like

Portugal 2,170.9 2,383.5 -8.9% -9.7%Spain 839.6 863.0 -2.7% -2.8%Italy 309.6 281.7 9.9% 1.1%Germany 501.0 495.3 1.2% 1.1%Greece 14.8 16.2 -8.6% -8.7%Romania 16.8 10.0 68.0% -1.0%Europe 3,852.7 4,049.7 -4.9% -6.0%Brazil (€) 1,709.3 1,523.8 12.2% 12.2%Brazil (R$) 3,969.4 3,545.3 12.0% 12.0%total Sierra 5,562.0 5,573.5 -0.2% -1.0%

Sales in € million

Sales

% 11/10 2011 2010 total like-for-like

Portugal 184.9 194.3 -4.8% -5.3%Spain 73.9 75.8 -2.5% -2.5%Italy 22.1 18.8 17.4% 0.5%Germany 38.1 37.1 2.7% 2.6%Greece 1.6 7.6 -78.6% 2.2%Romania 4.8 2.8 72.9% 12.7%Europe 325.5 336.4 -3.3% -3.2%Brazil 102.5 100.9 1.6% 1.6%total Sierra 428.0 437.3 -2.1% -2.1%

Visits in million

visits

As a counter-measure to try to minimise the negative effect ofyield expansions, we have increased the efficiency of the centreswe manage – and we have implemented measures that allowed usto deliver good quality services with lower costs. This has enabled Sonae Sierra to achieve performance gains that have minimisedexpansion of yields, especially in Portugal.

In Brazil, on the other hand, property values continued to rise in2011, mostly fueled by the operational performance of ourcentres. At least for the moment, no significant compression ofyields has occurred which translates into a very conservativeapproach to future value in spite of a very busy Merger &Acquisition (M&A) market.








Developing sustainable buildings

We believe sustainable real estate will deliver above averagereturns and outperform non-sustainable real estate over themedium to long term. In fact, investors are increasingly aware ofthe importance that sustainability features represent whenmaking investment decisions. However, the translation of suchfeatures into a value premium has yet to be seen; what isbecoming more evident is that investors will tend to penaliseproperties lacking such features because they are at greater riskof obsolescence. In this context, we integrate specific investmentinitiatives into each shopping centre’s Investment Plan to ensurethat we maintain our reputation as sustainability leaders withinour industry.

In 2011, we maintained the electricity efficiency of our ownedportfolio and improved our performance on a like-for-like basisagainst 2010. Waste management has also continued to improveover time with 53% of waste now being recycled across our globalportfolio. These initiatives have enabled us to pass on further costsavings to tenants through reductions in service charge costs,thereby increasing the attractiveness of our centres comparedwith others. By implementing the rigorous safety standardsrequired by our Safety, Health and Environmental ManagementSystem (SHEMS), we have also reduced the risk of accidents inSonae Sierra shopping centres.

We continue to believe that our sustainable approach significantlyadds value to our customer proposition, in the light of growingconsumer interest in more ‘responsible’ consumption (e.g., eco-friendly; ethical; healthy products and services) in all of thecountries where Sonae Sierra operates. Indeed, through ourcustomer research, we have obtained statistical evidence that, inthe European geographies where we are present, up to 87% ofSonae Sierra’s shopping centres’ visitors are interested in, andtaking action on, social and environmental issues.

Investment Market Fundamentals

During 2011, yields increased in many of our key markets, mostnotably in Portugal and Greece. Fortunately this was not the casein all markets; for instance towards the end of 2011, yields in primeshopping centres in Germany reached a five-year low caused byvery high investment demand and limited supply of stock. Yields inItaly also remained virtually flat in 2011. In Spain, yield adjustmentshave been less homogeneous; prime properties actually saw somecompression, whilst secondary properties and those facing morecompetition have witnessed yields moving out. However, given thatthe Spanish market had adjusted more quickly in 2008-2009, thechanges in 2011 have been lower in magnitude than other regions.All in all, increased yields have adversely impacted on total OpenMarket Value (OMV) of our shopping centres and the indirect side ofour profit and loss account.

Geographic split of the Open Market Value

Portugal

Spain

Italy

Germany

Greece

Romania

Brazil

44%

14%

6%

1%

13%

0%

21%

Open Market Value of Centres in Operation

OMV in € million

Total Value

Sonae Sierra Control

6,3202011

3,328

6,481

3,504

6,340

3,595

6,166

3,598

6,147

3,786

4,741

2,745

4,096

2,498

2010

2009

2008

2007

2006

2005

“uNtIl fINANcE bEcomES REAdIlyAvAIlAblE, ANd At REASoNAblEpRIcES, wE muSt coNtINuE to fINdINNovAtIvE wAyS to RAISE cApItAlANd to RAtIoNAlISE coStS ANdcApItAl ExpENdItuRE IN opERAtIoNAlShoppINg cENtRES, So AS to pRotEctouR cAShflow.”

Pedro CaupersDirector, Investment andAsset Management








Successful capital recycling despite limitedtransactions in Eurozone

Throughout 2011 the lack of financing and erosion in investorconfidence across the Eurozone created illiquidity in the capitalmarkets, leading to reduced transaction activity. This preventedour investments business from completing its ambitiousprogramme of capital recycling initiatives – namely the sale ofinterests in certain properties in Europe. Until finance becomesreadily available, and at reasonable prices, we must continue tofind innovative ways to raise capital and to rationalise costs andcapital expenditure in operational shopping centres, so as toprotect our cashflow.

Nevertheless, in 2011 we did successfully sell our interests inPlaza Éboli and El Rosal in Spain to Doughty Hanson & Co RealEstate for €120 million. These sales released substantialresources for new business development in other geographies andallowed us to leverage the services component of the Companysince both centres will continue to be managed by Sonae Sierra.

We also managed to successfully re-finance AlgarveShopping inPortugal in November on a long-term mortgage-backed non-recourse loan – a significant achievement in the current economicclimate and one which puts us in good stead for 2012.

We continue to proceed with our capital recycling strategy; theprospective sales of Dos Mares in Spain and Airone in Italy areprogressing as planned and we are confident that we will reach asuccessful close of both during 2012.

a healthy level of fund activity

In addition to the direct ownership of some of our shoppingcentres, we co-own many others through innovative investmentfunds launched in partnership with international investors.

In line with the Company’s strategy, Sierra Investments is workingwith its co-investors in order to determine the best path tocontinue with the investment in the Sierra Fund and guaranteethe continued revenues from management activities. In 2011, theSierra Fund acquired a further 25% ownership of Plaza MayorShopping (previously held by minority partners), becoming thesole owner of the asset.

The current targets for investment in Europe are Germany andItaly, where growth prospects for the shopping centre industry arelikely to be more robust than in other Eurozone countries wherewe operate. Following the success of the Sierra Fund and theSierra Portugal Fund, we are planning to launch a third fund in2012, the Sierra Retail Fund III, focused on German and NorthernItalian assets. The marketing materials for this new Fund havebeen shared with a number of prospective investors, with theassistance of a placement agent. In parallel, the structuringdocuments are under preparation. Preliminary feedback fromprospective investors indicates that investment decisions will bemade through the course of the first half of 2012.

Outside the Eurozone but still within Europe, Romania seems toprovide the best prospects for growth, and elsewhere, Brazil(where Sonae Sierra has been present for around 12 years),besides other emerging markets in Latin America and theMediterranean Basin.

In Brazil, an asset swap arrangement was made at the end of 2011with Credit Suisse HG to obtain an additional 30.0% ownershipinterest in Shopping Plaza Sul in exchange for a minority stake inShopping Penha and R$ 63.9 million in cash.

• Shopping Plaza Sul is located in the south region of the city ofSão Paulo and has a GLA of 27,145m2. Through thistransaction Sonae Sierra Brasil increased its ownership in thisasset to 60.0%. The 30.0% ownership interest in ShoppingPlaza Sul was valued at R$102.9 million.

• Shopping Penha is located in the east region of the city of SãoPaulo and has a GLA of 29,703m2. Sonae Sierra Brasil hastransferred a 17.12% stake in this mall to CSHG Brasil ShoppingFII. With this transaction, Sonae Sierra Brasil will reduce itsownership stake in Shopping Penha from 73.18% to 56.06%,nevertheless maintaining the controlling ownership stake ofthis centre.

This transaction reinforces Sonae Sierra Brasil’s strategy topursue opportunistic M&A activities, adding the controllingownership of a high-quality asset located in the city of São Pauloto the portfolio while maintaining the controlling ownership stakein another asset. Both shopping centres continue to be managedby Sonae Sierra Brasil.

Ratios

net asset value (nav)


Consolidated accounts


The following Financial Statements consolidate all the companiesby the proportional method.

Sonae Sierra Consolidated accounts

Sonae Sierra’s direct net profit reached €61.1 million which compares with€57.5 million in 2010, an increase of 6%. Although the total direct incomefrom investments decreased by 8%, from €227 million to €209 million,this reflected the decrease in the portfolio universe due to the sales ofAlexa and Mediterranean Cosmos in 2010 as well as the sales of PlazaÉboli and El Rosal and the Brazilian IPO in 2011.

There was also a decrease in net financial costs, a consequence of higherinterests on bank deposits namely in Brazil and lower financial costs, asour outstanding bank debt is lower, due to the sales mentioned above.Efficiency programmes are maintained with selective costs cutting effortsin all the countries where the Company operates.

Losses on Sales of Properties in 2011 mainly included transaction costson the sales of Plaza Éboli and El Rosal. The Losses on Sales of Propertiesin 2010 were the result of the sale of a majority interest in Alexa(Germany) to Union Investment, the gain on the sale of LeiriaShopping(Portugal) to the Sierra Portugal Fund (SPF) and the gain on the sale ofMediterranean Cosmos (Greece).

The Value Created on Investment Properties is lower than the oneobtained in the same period of last year, a consequence of yieldexpansion especially in Portugal. This was partially compensated for byperformance improvements in both the European and Brazilian portfolios.

Deferred Taxes are lower than those in 2010 given that in this year theyalready reflected the negative impact of the new corporate tax rule inPortugal (additional tax of 2.5%).

The Total Assets of the Company reached €2,563 million of which€2,058 million corresponds to Investment Properties and €256 million toProperties under Development and Concessions.

The decrease in Investment Properties compared with 31 December 2010is the consequence of the sales of El Rosal and Plaza Éboli, in Spain; theBrazilian IPO; the adverse foreign exchange rate effect of the BrazilianReal and the decrease of the real estate valuations in Europe withexception of Italy and Germany. These reductions were slightlycompensated by the opening of the Colombo office Tower Ocidente; by the acquisition of a further 4.5% of interest in Alexa and by theacquisition of a further 25% interest in Plaza Mayor Shopping.

Properties under Development are slightly above 31 December 2010mostly due to the on-going investments in Le Terrazze, Solingen and thethree Brazilian projects under development.

The Net Worth as at 31 December 2011 is lower than that at 31 December2010 due to the €23.7 million dividends to be paid to Shareholders; thenegative variance in the Translation Reserves – consequence of thedepreciation of the Brazilian Real - and the negative variance in the mark-to-market valuation of hedging instrument. These negative impacts werecompensated for by the current year’s net result.

Bank Loans are lower when compared with those of last year mainly dueto the sales executed in 2011.

net asset value

The Company measures its performance, in the first instance, on thebasis of changes in Net Asset Value (NAV) plus dividends distributed. The Company calculates its NAV according to the guidelines published in2007 by INREV (European Association for Investors in Non-listed RealEstate Vehicles), an association of which the Company is a member.

On the basis of this methodology, the NAV of Sonae Sierra, as of 31 December 2011, was €1,173 million compared with €1,251 million on 31 December 2010. The NAV per share of the properties attributed to the Company is €36.07 against €38.47 recorded on 31 December 2010.

amounts in €000 31 Dec 11 31 Dec 10

NAV as per the financial statements 941,090 1,000,431Revaluation to fair value of developments 10,430 14,033Deferred tax for properties 238,686 249,382Goodwill related to deferred tax -36,073 -37,347Gross-up of Assets 18,765 24,426

NAV 1,172,899 1,250,926

Ratios

The Loan-to-Value (LTV) ratio is 43.7%, favourably comparing with 46.4% in December 2010, a decrease that derives largely from the cash-in generated by the Brazilian IPO and, to some extent, from the sales of El Rosal and Plaza Éboli.

The lower gearing ratios result primarily from the Brazilian business whichpresents a negative gearing level. The improvement trend in both gearingindicators is a result of the decrease in net debt (external debt less cash).

The Company also measures its exposure to the retail real estatedevelopment risk through the Development Ratio, by monitoring the weight of the funds already spent in all its committed and non-committed developments and those still to be spent in all its committeddevelopments in relation to its total real estate portfolio (including thefunds still to be spent in its committed projects).

The Development Ratio is slightly below that of December 2010 due tothe decrease in Investment Properties (the Brazilian IPO) and also thedecrease in the overall committed developments with the inauguration of Colombo office Tower Ocidente.

31 Dec 11 31 Dec 10

Loan-to-value 43.7% 46.4%Interest cover 2.82 2.27

Development ratio 12.0% 12.1%





Consolidated Profit and Loss account (€000)

Consolidated Balance Sheet (€000)


Consolidated accounts continued


2011 2010 % 11/10

Direct Income from Investments 209,287 226,881 -8%Direct costs from investments 96,487 103,465 -7%

EBItDa 112,800 123,416 -9%

Net financial costs 35,799 44,101 -19%Other non-recurrent income/cost -3,241 -6,583 51%

Direct profit before taxes 73,760 72,732 1%

Corporate tax 12,663 15,193 -17%

Direct net profit 61,097 57,539 6%

Gains realised on sale of investments -8,226 -1,707 -382%Impairment & Development funds at risk provision -6,977 -29,425 76%value created on investments -33,741 18,205 -285%

Indirect income -48,944 -12,927 -279%

Deferred tax 2,405 35,918 -93%

Indirect net profit -51,349 -48,845 -5%

net profit 9,748 8,694 12%

31 Dec 2011 31 Dec 2010 Var. (11-10)

Investment properties 2,058,594 2,284,916 -226,321Properties under development and others 255,841 223,484 32,356Other assets 135,300 139,709 -4,409Cash & Equivalents 113,798 54,252 59,546

total assets 2,563,533 2,702,360 -138,828

net worth 941,090 1,000,431 -59,341Bank loans 1,107,428 1,198,091 -90,662Deferred taxes 286,956 304,627 -17,671Other liabilities 228,058 199,212 28,847

total liabilities 1,622,443 1,701,929 -79,487

net worth and liabilities 2,563,533 2,702,360 -138,828





Sonae Sierra Consolidated accounts








The Deferred Taxes show a decrease compared with the same period oflast year, in that the negative impact of the new corporate tax rulesimposed by the Portuguese government was already reflected in 2010.

Investment Properties decreased its balance by €163 million whencompared with 31 Dec 2010. This decrease is explained by the sales ofPlaza Éboli and El Rosal and the value decrease of the portfolio in 2011.The opening of Ocidente Tower, the purchases in 4Q11 of 25% of PlazaMayor Shopping and 4.5% of Alexa partially compensate the otherwiselarger reduction of the Investment Properties.

Bank Loans are below those at December 2010 mainly due to the sales ofPlaza Éboli and El Rosal, deducted by the purchasing of 25% of PlazaMayor Shopping and 4.5% of Alexa and the loan drawdowns made by theColombo office Tower Ocidente.

Sierra Investments

Sierra Investments contributed negatively with €21.7 million to theConsolidated Net Profit of Sonae Sierra.

The direct profits of Sierra Investments are derived from the operation ofshopping centres that are part of its portfolio, including those assets thatare in the Sierra Fund and in the Sierra Portugal Fund. The direct profitsalso include the asset management services provided to the properties bySierra Asset Management.

Direct net profit is in line with last year. However, the Shopping CentreNet Operating Margin in 2011 is below that of last year (€7.3 million). This variation is mostly related with the impact of the sales of interests in 2010 (Alexa and Mediterranean Cosmos) and those of 2011 (Plaza Éboliand El Rosal).

Asset Management Net Operating Income is below last year’s due tolower valuations of the existing portfolio and to the portfolio reduction.

The Financial Result is higher than that achieved in 2010, mainly due tothe reduction of bank debt as a consequence of the sales of assets.

Indirect profits arise either from the change in value of the investmentproperties or the realisation of capital gains on the sale of assets and/orshareholding positions.

The Indirect Result is €34.5 million below last year due to a higherdecrease in the Value Created on Investments Properties, compensatedfor by a lower amount of deferred taxes. Value Created in InvestmentProperties in 2011 was heavy penalised by the yield expansion in Portugalwhich resulted from the economic crisis in Europe and the economic andfinancial situation of this country in particular.








Profit and Loss account (€000)


Sierra Investments

31 Dec 2011 31 Dec 2010 % (11-10)

Retail Net Operating Margin 101,550 109,103 -7%Parking Net Operating Margin 1,478 1,588 -7%Cogeneration Net Operating Margin 508 544 -7%

Shopping Centre net Operating Income 103,536 111,235 -7%

Offices Net Operating Income 0 73 -100%Asset Management Net Operating Income 1,881 2,501 -25%

net Operating Income (nOI) 105,417 113,810 -7%

Net financial costs 36,331 42,616 -15%Other non-recurrent income/cost -5,808 -6,672 13%

Direct profit before taxes 63,279 64,522 -2%

Corporate tax 10,117 11,150 -9%

Direct net profit 53,162 53,372 0%

Gains realised on sale of investments -8,079 -3,549 -128%Value created on investments -76,302 -13,637 -460%

Indirect income -84,381 -17,186 -391%

Deferred tax -8,529 23,339 -137%

Indirect net profit -75,852 -40,525 -87%

net Profit -22,690 12,847 -277%

31 Dec 2011 31 Dec 2010 Var. (11-10)

Investment properties & others 1,747,849 1,910,802 -162,952Other assets 180,502 162,321 18,181Cash & Equivalents 45,976 75,317 -29,341

total assets 1,974,327 2,148,439 -174,112

net worth 644,698 713,140 -68,442Bank loans 947,275 1,062,757 -115,482Deferred taxes 230,134 238,206 -8,071Other liabilities 152,220 134,337 17,883

net worth and liabilities 1,974,327 2,148,439 -174,112






Sierra Developments

Sierra Developments contributed negatively with €17.8 million to the Consolidated Net Profit of Sonae Sierra.

The figure presented in Value Created in Projects concerns Le Terrazze and the imparity losses booked in the Greek projects.

The Development Services Rendered are slightly lower than those provided during same period of last year mainly due to lower income from Sonae Sierraprojects under development. However, higher Services Rendered to Third Parties partially compensated for the total decrease under DevelopmentServices Rendered.

31 Dec 2011 31 Dec 2010 % (11-10)

Project Development Services Rendered 5,932 6,133 -3%Value created in projects -5,110 -24,503 79%

Operating Income 821 -18,370 104%

Operating costs 23,942 23,203 3%

Net Operating Income (NOI) -23,120 -41,573 44%

Depreciation and provisions 4 99 -96%Net financial costs 912 2,292 -60%Other non-recurrent income/cost -533 -544 2%Income tax -7,778 -3,212 -142%

net Profit -16,791 -41,296 59%

31 Dec 2011 31 Dec 2010 Var. (11-10)

Properties under development 187,888 164,128 23,760Other assets 70,690 77,364 -6,674Cash & Equivalents 7,244 5,585 1,659

total assets 265,822 247,077 18,746

Net worth 19,403 -68,465 87,868Bank loans 40,570 9,320 31,249Shareholder loans 89,955 175,476 -85,521Deferred taxes 3,531 4,063 -532

Other liabilities 112,363 126,682 -14,319

net worth and liabilities 265,822 247,077 18,745










Sierra Management

Sierra Management contributed with €4.4 million to the Consolidated Net Profit of Sonae Sierra.

Sierra Management was successful in the implementation of its selective cost cutting efforts, thus maintaining its Net Operating Income in line with theprevious year. However, the Income from Management Services decreased by 3% versus the previous year mostly due to reduced rents and letting activityin our European portfolio, stemming from the crisis affecting most of the countries where we operate.

Improvements on the financial and tax management sides have allowed a 26% growth of Sierra Management’s Net Profit.

The total assets of €63.6 million correspond basically to short term loans to group companies and to rents not yet received.

31 Dec 2011 31 Dec 2010 % (11-10)

Total Income from Management Services 32,583 33,510 -3%Operating Costs 26,654 27,483 -3%


Net financial costs -1,009 -851 -19%Other non-recurrent income/cost -307 -847 64%Income tax 2,208 2,521 -12%

net Profit 4,424 3,510 26%

31 Dec 2011 31 Dec 2010 Var. (11-10)

Other assets 24,973 20,990 3,982Cash & Equivalents 38,666 34,541 4,125

total assets 63,639 55,532 8,107

Net worth 14,027 9,939 4,087Other liabilities 49,613 45,593 4,020

net worth and liabilities 63,639 55,532 8,107










Sonae Sierra Brasil

Sonae Sierra Brasil contributed with a positive result of €47.4 million to the Consolidated Net Profit of Sonae Sierra.

Net Operating Income has decreased by 11% versus last year but this stems from the IPO launched during the first quarter of 2011. In fact, the operationalperformance was considerably better than in last year, with an increase in total rents (like-for-like) due to superior sales in all centres.

Indirect net profit is higher than in the previous year due to an important improvement of operational performance in all properties.

The Investment Properties decreased when compared with 31 December 2010, which is explained by the effect of the IPO and the adverse FX variance.Without these effects value corresponding to Investment Properties would have increased.

The amount in Bank Loans corresponds to the loans in Manauara Shopping, Uberlândia Shopping, Shopping Metrópole, Boulevard Londrina Shopping andto the corporate revolving credit facility utilisation.

31 Dec 2011 31 Dec 2010 % (11-10)

Retail Net Operating Margin 21,744 24,772 -12%Parking Net Operating Margin 3,301 3,253 1%

Shopping Centre net Operating Income 25,045 28,026 -11%

Total Income from Services Rendered 5,910 7,401 -20%Overheads 7,803 9,270 -16%


Net financial costs/(income) -3,022 10 –Other non-recurrent income/cost -220 -2,824 92%

Direct profit before taxes 25,953 23,322 11%

Corporate tax 3,570 3,548 1%

Direct Profit 22,383 19,774 13%

Value created on investments 39,630 25,102 58%Deferred tax 14,620 10,481 39%

Indirect net profit 25,010 13,863 80%

net Profit 47,393 33,637 41%

31 Dec 2011 31 Dec 2010 Var. (11-10)

Properties 372,776 433,772 -60,996Other assets 13,786 14,739 -953Cash & Equivalents 54,851 14,294 40,558

total assets 441,413 462,804 -21,392

Net worth 323,778 338,404 -14,626Bank loans 45,637 41,004 4,633Deferred taxes 55,935 63,561 -7,626Other liabilities 16,062 19,835 -3,773

net worth and liabilities 441,413 462,804 -21,392





Our shopping centres were among the first in their countries to pilot environmentalpractices and technologies and our Companyhas received numerous international awards fordemonstrable improvements in environmentalperformance. We have a robust system in placeto monitor our environmental impacts andmeasure performance across all the sites where we operate. Improving our environmentalperformance across all our activities hasbenefitted our business in several ways. We have saved costs by making our operationsmore eco-efficient; enhanced our reputation,and begun to future-proof our assets againstnatural resource shortages. Moreover, we arehelping to lead our sector towards a moresustainable way of doing business: in 2011, our property funds were ranked as the mostsustainable in Europe and third worldwide by the Global Real Estate SustainabilityBenchmark (GRESB).



We have saved costs by making ouroperations more

eco-efficientand begun to future-proof our assetsagainst naturalresource shortages

ENVIRONMENTAL PERFORMANCE

Sonae Sierra is a pioneer in environmentalmanagement in the shopping centre sector.As early as 1998 we had developed and approved our ambitiousEnvironmental Policy, defined environmental requirements forinclusion in shopping centres’ design specifications and developed our Environmental Management System (EMS).

Manauara Shopping, Brazil

Plaza Mayor,Spain

ArrábidaShopping, Portugal


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Energy and climate


EnvironMEntAl PErforMAncE

A strategy to reduce gHg emissions and increase energy efficiency in buildings

In 2006, we developed a Climate Change strategy to reduce our direct and indirect GHG emissions. This covers scopes 1, 2 and businessair travel (part of scope 3) according to the guidelines of the GHG protocol developed by the World Resources Institute and the WorldBusiness Council for Sustainable Development. Our long-term objective is to achieve a 70% reduction in GHG emissions per m2 of GLA,by 2020, compared to the 2005 level.

Increasing the energy efficiency of our activities – and in particular of our buildings – constitutesone of the main strategies to help us to achieve our GHG emissions reduction goal. We aimto attain a maximum average electricity consumption of 400kWh per m2 (mall and toiletarea) per year across our shopping centres by 2020. Energy efficient designs, includingenergy performance targets and innovative engineering solutions, are included in ourSafety, Health and Environment Development Standards (SHEDS). Within theSHEDS, we specify the use of energy efficient boilers, air conditioning units and otherfit out equipment such as lighting and appliances. We also require DevelopmentManagers to explore possible renewable and low-carbon technologies during design,such as passive solar design, natural ventilation, Combined Heat and Power (CHP)and district heating. We are especially committed to designing buildings that willachieve high energy efficiency ratings under the European Union’s EnergyPerformance of Buildings Directive.

Alongside our efforts to manage our shopping centres’ energy use as efficiently as possibleduring the operations phase (as described on page 25), we investigate opportunities for on-site generation of renewable energy and procurement of green electricity through the grid. Threeof our shopping centres are supplied by a certified renewable energy provider with a CO2 emissionsfactor of zero for electricity, and one of them is also able to fully compensate CO2 emissions from natural gas consumption.

We also seek to reduce the energy consumption and GHG emissions that are generated as a consequence of our other direct and indirectactivities. These include transport emissions generated by people visiting our shopping centres; by our staff travelling to and from workand for business purposes; emissions produced by tenants occupying our shopping centres and by our contractors on construction sites.During the construction phase, we implement our Safety, Health and Environment Management System (SHEMS) for construction (orthe SHE Management Plan for major refurbishments and expansions) which include guidelines for monitoring energy consumption andimplementing best practices in energy conservation in order to achieve greater energy efficiency. By giving preference to the reuse ofdemolition materials and use of materials sourced within a 500km distance, we seek to avoid indirect GHG emissions associated with thetransport of building materials to and from our construction sites. During the operations phase, we strive to maximise the accessibility ofour centres to those using alternative transport modes. Most of our centres have dedicated spaces for the provision and display of travelinformation, including public transport timetables, and cycle storage facilities for tenants and visitors. We have also established GreenTravel Plans at 13 shopping centres and two corporate offices to analyse the existing transport infrastructure and implement measuresto encourage and improve the accessibility to the shopping centre by public transport, bicycle and on foot.

It is part of our strategy to advocate more sustainable practices at an industry level and in 2011, we signed The 2° ChallengeCommuniqué. The Communiqué supports a robust, equitable and effective United Nations agreement on climate change, built onexisting foundations. It calls upon governments to undertake a variety of actions, including international collaboration; creating effectivemarket mechanisms; financing the transition to a low-carbon economy; incentivising innovation and encouraging efficiency. It is the fifthstatement of its kind which is being issued to governments by leaders of companies from around the world, organised by the CorporateLeaders Network for Climate Action, The Prince of Wales’s Corporate Leaders Group on Climate Change and the University of CambridgeProgramme for Sustainability Leadership.

IncreaSIng the energyeffIcIency of our actIvItIeS – and In partIcular of ourbuIldIngS – conStItuteS one of the maIn StrategIeS tohelp uS to achIeve our ghgemISSIonS reductIon goal.

tArgEtS for 2012

• Attain a maximum value of 0.0281 tonnes of GHG emissions per m2 of GLA (GHG Protocol scopes 1 and 2, plus business air travel).

• Attain a maximum value of electricity consumption of 509kWh per m2 of mall and toilet area, aggregated across all SonaeSierra owned shopping centres.


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Energy and climate continued


reducing our total carbon footprint

In 2011, we were ranked in first place for the sixth time by the ACGE CorporateClimate Responsibility Sector Index 2011. This index, which is published byEuronatura, included the participation of Portugal’s 82 largest companies and isbased on 28 criteria regarding the management of and investment in strategiesto combat climate change and reduce greenhouse gas emissions.

We reduced our total carbon footprint by 23% compared with 2010. Furthermore,we surpassed our 2011 target by reducing our GHG emissions per m2 of GLA (GHGprotocol scopes 1 and 2 and business air travel) by 18% compared to 2010, meaningthat overall we have achieved a reduction of 67% since 2005, our baseline year. Withthese results, we are on track to meet our 70% reduction in GHG emissions per m2 ofGLA, by 2020.

Our total carbon footprint is composed of:

We measure our carbon footprint in tonnes of CO2 equivalent (tCO2e).


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19 It was verified that the type of energy consumed by the company car fleet of Athens office is petrol and not diesel as reported in previous years. The São Paulo office started toreport the energy consumed by the shopping centres’ company car fleet from April 2011, because it was not possible to quantify this for the first three months of the year due to thelack of reliable data.

20 Sonae Sierra is evaluating the new GHG protocol guidance for scope 3, and the possibility of covering other indirect emissions sources in the future. Currently it is not yet possible toset an implementation plan with specific targets and deadlines, but we aim to do that next year.

We reduced our total carbonfootprInt by 23% compared WIth2010. furthermore, We SurpaSSedour 2011 target by reducIng our ghg emISSIonS per m2 of gla (ghg protocol ScopeS 1 and 2and buSIneSS aIr travel) by 18%compared to 2010, meanIng thatoverall We have achIeved areductIon of 67% SInce 2005, our baSelIne year.

our direct (scope 1) emissions, whichcorrespond to GHG emissions fromsources owned or controlled by SonaeSierra, such as the company carfleet19, air-conditioning equipment,boilers and cogeneration plants.

our indirect (scope 2) emissions, whichare GHG emissions that are generatedas a result of Sonae Sierra’s activitiesbut are owned or controlled byanother organisation, e.g., emissionsproduced by the electricity andheating and cooling which wepurchase from energy companies.

our other significant indirect (scope 3)emissions, which are GHG emissionsassociated with our activities that arealso owned or controlled by anotherentity. The GHG emissions data whichSonae Sierra collects and reports forscope 3 covers emissions generatedby: visitors’ travel to and fromshopping centres; staff commuting;business air and rail travel; wasteproduced in our shopping centres andin corporate offices and the treatmentof wastewater generated by ourshopping centres20.

Sonae Sierra’s carbon footprint (tonnes co2e)

2011

2010

2009

2008

692,541 / 30,627 / 21,136

Scope 3 emissions Scope 2 emissions Scope 1 emissions

897,223 / 22,422 / 41,116

939,597 / 82,157 / 42,775

871,330 / 85,721 / 44,835

21,136 tonnes co2e 30,627 tonnes co2e 692,541 tonnes co2e

Scope 3 GHG emissions by source (tCO2e)





Energy and Climate continued


2011 2010 2009

Boilers and natural gas 3,005 3,493 3,843Owned vehicles 1,074 1,107 1,129Combined Heat and Power (CHP) 16,158 32,993 36,110Refrigeration equipment and HFCs leakages 899 3,523 1,693

Total scope 1 21,136 41,116 42,775

2011 2010 2009

Electricity 27,772 19,251 79,636Chilled and hot water consumption 2,855 3,171 2,521

Total scope 2 30,627 22,422 82,157

Total scopes 1 and 2 51,763 63,538 124,932

2011 2010 2009

Business train travel 43 64 38Business air travel 1,690 1,923 2,853Employee commuting 1,359 1,150 1,159Visitors’ travel to and from our shopping centres 664,065 884,023 925,532Wastewater treatment (co-workers) 32 33 33Wastewater treatment (visitors) 9,595 10,030 9,982Waste treatment 15,756 – –

Total scope 3 692,541 897,223 939,597

Total scopes 1, 2 and 3 744,304 960,761 1,064,529

Data Qualifying Note:

Scopes 1 and 2 GHG emissions include all shopping centres owned by Sonae Sierra and in operation for the full reporting year as well as seven out of eight main corporate offices. The emissions intonnes of CO2 equivalent (tCO2e) have been calculated in accordance with the GHG protocol methodology, which was adapted, if data was available, to the specific national circumstances of thevarious countries in which Sonae Sierra operates. The electricity emission factors (kgCO2e/kWh) were provided by our electricity suppliers in each country, except for Brazil where we used the valueprovided by the Environment Ministry associated with the national grid (http://www.mct.gov.br/index.php/content/view/321144.html#ancora). The values refer to 2011, except those for Brazil andGermany, since no data was available for 2011 at the time when we calculated the carbon footprint. In 2011, for Greece, there was a reformulation of the car fleet fuel consumption data for 2009and 2010, because diesel consumption had been reported instead of petrol consumption. For MaiaShopping and NorteShopping in Portugal there was a minor correction in CHP emissions (kg CH4)for 2010. In 2010, an incorrect emission factor was used to convert electricity consumed at GranCasa in Spain, so a minor correction was made for scope 2 emissions in 2011 at this centre.

Scope 3 GHG emissions include all shopping centres owned by Sonae Sierra and in operation for the full reporting year as well as seven out of eight main corporate offices. The emissions intCO2e have been calculated in accordance with the GHG protocol methodology, which was adapted, if data was available, to the specific national circumstances of the various countries whereSonae Sierra operates in Europe and in Brazil. For Brazil and Romania, there was no business train travel in 2011. For Germany, business train travel values for 2010 were used because it was not possible to have the records of each train journey made in 2011. In 2011 updates were made on employees’ commuting patterns and visitors’ travel to and from our shopping in accordancewith 2011 employee figures and visitor numbers respectively. The emissions factors were updated according to values referenced in: DEFRA, 2011 Guidelines to Defra/DECC's GHG ConversionFactors for Company Reporting, “Annex 6 - Passenger Transport Conversion Tables”. For AlbufeiraShopping in Portugal and Zubiarte in Spain, and for shopping centres in Brazil, it was assumedthat visitor patterns remained the same as those analysed in 2007 and an update was made in accordance with 2011 visitor numbers. For wastewater treatment (co-workers and visitors), we applied the same methodology used in previous years, using the 2011 employee figures and visitors numbers. Emissions associated with waste treatment covered the following disposalmethods: anaerobic digestion; composting; incineration (with and without energy recovery) and landfill. For anaerobic digestion we used the emission factor published in: Emissions Factor Guide- Version 6.1 - Bilan Carbone - Agence de l'Environnement et de la Maîtrise de l' Energie. June 2010. For incineration and landfill, we used the emission factor published in: Company certified byCarbon Disclosure Project: Ecometrica - 2011 (http://emissionfactors.com/ (for incineration with energy recovery the emission factor is always assumed to be zero). Sonae Sierra also produceswaste which is disposed of through recycling, reuse and other treatment/ elimination processes. For these types of disposal methods, we do not yet have a procedure in place to calculate GHG emissions. Corrections were made to the 2010 GHG emissions data related with wastewater treatment.


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Historical data from earlier years is available on our corporate website at: http://www.sonaesierra.com/en-gb/corporateresponsibility/ourprogress.aspx

Data on our scopes 1, 2 and 3 GHG emissions by country is available in our Country CR Summary Report at: http://www.sonaesierra.com/en-gb/corporateresponsibility/reportsandfeedback/reports/2011reports.aspx

Further reference:

Reducing our total carbon footprint (continued)

http://www.sonaesierra.com/en-gb/corporateresponsibility/ourprogress.aspx

http://emissionfactors.com/


http://www.mct.gov.br/index.php/content/view/321144.html#ancora





tackling greenhouse gas emissions associated with visitors’ travel

The chart on page 48 shows that Sonae Sierra’s scope 3 emissions are far greater than scopes 1 and 2. With over 396 million visits to ourowned shopping centres, in 2011 visitors’ travel accounted for 89% of our total carbon footprint.

Whilst we neither control our visitors’ nor our employees’ travel to and from our sites, we can seek to influence it. In previous years we have developed Green Travel Plans for 13 of our shopping centres and two corporate offices, to promote the use of public andenvironmentally friendly transport. Some of the initiatives implemented as part of our Green Travel Plans have included creating bicycleparking areas; establishing walkways for pedestrians; cooperating with local authorities to create new bus routes or additional bus stopsand organising green transport campaigns. In 2011 we analysed the impact of Green Travel Plans at seven shopping centres acrossPortugal, Spain, Italy and Germany and found that the use of one or more sustainable modes of transport has increased at all but one ofthese centres. We also introduced battery recharge stations for electric cars at four shopping centres in Portugal (two of our shoppingcentres in Germany already have this facility in place).

In 2011, GHG emissions corresponding to visitors’ travel decreased by 25% due to the overall decrease in the number of visits made toour centres and the minor increase in the proportion of visitors using more sustainable modes of transport to travel to and from ourshopping centres, as shown in the chart below.

reducing greenhouse gas emissions associated with energy consumption

In 2011 we reduced our total scope 1 and scope 2 GHG emissions by 19% in comparison with 2010. Overall, we have reduced theseemissions by 61% since 2006. We have more direct control over our scopes 1 and 2 emissions, which are associated with energyconsumption in our operational shopping centres; corporate offices and by our company car fleet. The 61% decrease is mainly justifiedby the selling of Centro Colombo’s cogeneration in late 2010, which was accountable in that year, for 39% of the Scope 1 emissions.

76% of our scope 1 emissions are generated by the two cogeneration plants which we own atNorteShopping and MaiaShopping in Portugal. The remaining emissions are linked to the use ofboilers at 19 shopping centres, our company car fleet, and coolant leakage from air-conditioningunits. We ensure that all equipment is used and maintained adequately and we repairequipment producing abnormal leakage. We also procure more energy efficient boilers when they are renewed, which has allowed us to reduce our natural gas consumption.

In 2011, we analysed the feasibility of procuring zero emissions vehicles for our companycar fleet in Portugal as and when vehicles needed to be replaced. After examiningdifferent scenarios and evaluating proposals from potential service providers, wedecided to purchase two electrical vehicles in 2012 for the fleet as replacements. We hope to maintain and enhance this approach in future years.

Although our scope 2 emissions, driven by electricity and hot and cooled water use,increased in 2011 compared to 2010 levels, they still represent a 64% reduction comparedto 2008 emissions. This has resulted from our efforts in recent years to change our energycontracts so as to procure electricity from suppliers using a high proportion of renewable sourcesto produce energy. Energy efficiency improvements across our shopping centres have alsoinfluenced the trend.


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Data Qualifying note:This indicator includes all shopping centres owned by Sonae Sierra and in operationduring the full reporting year. Not all of our shopping centres performed Mall Trackingstudies (which allow us to identify the number of visits made by private car) in 2011. Inthese cases, data from previous years’ studies has been used.

Historical data from earlier years is available on our corporate website athttp://www.sonaesierra.com/en-gb/corporateresponsibility/ourprogress.aspx

Further reference:

In 2011 We reduced ourtotal Scope 1 and Scope 2ghg emISSIonS by 19% IncomparISon WIth 2010.overall, We have reducedtheSe emISSIonS by 61%SInce 2006.

Number and percentage of visits made byprivate car; and number and percentage ofvisits by other modes of transport, to andfrom our shopping centres

2011

2010

2009

256 (64%) / 141 (36%)

269 (65%) / 146 (35%)

251 (61%) / 162 (39%)

2008 257 (64%) / 146 (36%)

Private car Other modes of transport






Measuring the energy and carbon efficiency of our business activities

Analysing our GHG emissions and our electricity consumption in relation to our portfolio size gives us a more accurate indicator ofwhether our operations are becoming more energy and carbon efficient. We do this principally using the following two key performanceindicators, with respect to which we have set long-term objectives:

• GHG emissions of our owned portfolio and corporate offices, as tonnes of CO2e divided by m2 of GLA in shopping centres and by m2

of offices. This indicator includes our scopes 1 and 2 emissions and emissions associated with business air travel (part of scope 3); i.e., the GHG emissions which we are able to control.

• Electricity efficiency (excluding tenants) of our owned portfolio, as kWh divided by the mall and toilet area of our shopping centres.This reflects the electricity efficiency of the areas within our buildings which we have direct control over. We have focused onmonitoring our electricity efficiency (rather than energy efficiency) as this is easier for us to accurately measure without includingtenants’ consumptions and accounts for the largest part of energy use in landlord-controlled areas.

We also measure GHG emissions of our owned portfolio and corporate offices divided by m2 of mall and toilet area in shopping centresand m2 of offices.

The charts above show that we have continued to increase the energy and carbon efficiency of our business. Since 2005, our baselineyear, we have reduced GHG emissions per m2 GLA by 67%, meaning that we are on track to meet our 2020 objective. In 2011 alone, wereduced our GHG emissions per m2 GLA by 18% and saved 10.1 million kWh of energy across our shopping centres and offices on a like-for-like basis.

In 2011 we reduced GHG emissions associated with business air travel by 12% in comparison with 2010, mainly as a result of the increasein the use of video-conferencing tools and restrictions on staff travel budgets.

In terms of electricity efficiency, we consider that there was an effective improvement in this aspect since two of our assets withconsumptions lower than the portfolio average (El Rosal and Plaza Éboli in Spain) were sold and were therefore not considered in thisyear’s data set. Nonetheless, we maintained the 2010 value and on a like-for-like analysis, we improved our performance. All the same,we are conscious of the efforts still needed in this area to achieve our long-term objective.

Our centres in Brazil and Germany are the highest electricity consumers, both with an average consumption of 582kWh per m2. Our Italian and Portuguese portfolios are also high consumers, with average consumptions of 567kWh per m2 and 564kWh per m2

respectively. Overall, our Italian and German portfolios demonstrated the biggest improvements of 8.3% and 7.8% respectively. In Germany this was mainly thanks to measures introduced to reduce lighting electricity consumption.


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Data Qualifying note: The GHG emissions indicators include all shopping centres owned bySonae Sierra and in operation for the full reporting year as well asSonae Sierra’s eight main corporate offices. The electricity efficiencyindicator includes all shopping centres owned by Sonae Sierra and in operation for the full reporting year. In 2011, C.C. Continente dePortimão in Portugal was undergoing refurbishment works fromSeptember to December. During this period, electricity consumptionfor the refurbishment project was provided by the shopping centreand could not be metered separately. Consequently, electricityconsumption values for this shopping centre were estimated for thisperiod, in order to exclude consumptions from the refurbishment works.

Historical data from earlier years is available on our corporate website at:http://www.sonaesierra.com/en-gb/corporateresponsibility/ourprogress.aspx

Data on our GHG emissions and electricity efficiency by country is available in our Country CR Summary Report at:


Further reference:

GHG emissions of our ownedportfolio and corporateoffices – GHG Protocol scopes1 and 2, plus business airtravel (tCO2e/m2 GLA)

2020 0.025

2011 0.028

2010 0.034

2009 0.067

2008 0.071

GHG emissions of our ownedportfolio and corporate offices –GHG Protocol scopes 1 and 2,plus business air travel(tCO2e/m2 mall and toilet area)

Electricity efficiency(excluding tenants) of ourowned portfolio (kWh/m2

mall and toilet area)

2020 400

2011 514

2010 514

2009 527

2008 553

2011 0.113

2010 0.137

2009 0.270

2008 0.302








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Measuring the energy and carbon efficiency of our business activities (continued)

In Portugal, all shopping centres decreased their consumption apart from AlgarveShopping, which maintained its consumption. However,the introduction of full year data from LeiriaShopping into the data set had a negative effect, as electricity consumption at this shoppingcentre is 4% higher than the country average. In Portugal we implemented strict internal procedures to control electricity efficiencywithout jeopardising visitors’ comfort. In Brazil, on the other hand, our shopping centres increased their electricity consumption per m2

by 5.4% (mainly due to the particularly high electricity consumption at Manauara Shopping, where very warm temperatures and highhumidity all year round mean that there is high demand for cooling).

Whilst River Plaza Mall in Romania registered a 4.8% decrease in its electricity consumption per m2, Pantheon Plaza in Greece increasedconsumption by 10% due to the installation of heaters to improve visitors comfort. Our Spanish shopping centres are the most efficientin our portfolio, with an average electricity consumption of 293kWh per m2. A further decrease was registered this year as all shoppingcentres in Spain improved their electricity efficiency.

We also monitor the electricity efficiency of our corporate offices and our construction projects, although we have less direct control overthe measures which can be implemented to improve energy efficiency on these sites. Unfortunately, electricity consumption per m2 inour corporate offices increased by 8% in 2011 in comparison with 2010. Although in total electricity consumption in offices did in factdecrease, there was also a decrease in the floor size of three of our offices (Athens, Düsseldorf and Madrid) and as a result, electricityefficiency deteriorated. The Athens office replaced its electrical ballasts as part of its energy saving plan, but it is not yet possible tocalculate the energy saved as a result of this measure.

With respect to construction projects completed in 2011, the Colombo office Tower Ocidente project had a construction electricityindicator of 15.2 kWh/€000 construction cost. This result is higher than that of its twin project, the Colombo office Tower Oriente, as itwas necessary to add additional reinforcements during the construction21. The construction electricity indicator for Shopping Metrópole isin line with our expectations for expansion projects.

21 The development of office buildings is not part of our core business and we did not report on the performance of the Colombo office Tower Oriente project in 2009. However,we made the decision in 2011 to report on the performance of the Colombo office Tower Ocidente.

Data Qualifying note: This indicator includes seven out ofeight of our main corporate offices.Data from the Maia office was notincluded because the space in thisoffice is shared with employees fromother Sonae companies, therefore, noindividual consumptions are available.

Data Qualifying note:This indicator includes all major development projects completed during the reporting yearwith the exception of the Shopping Campo Limpo expansion in Brazil which is explained onpage 4. The values reported are indicative of the quantity of electricity consumed duringconstruction on these projects. The indicator is calculated for each project by dividing thetotal electricity consumed on the construction site by the total construction cost of theproject. Electricity consumption is monitored and recorded on a monthly basis at eachproject, from the start to the completion of the works. The total construction cost of theShopping Metrópole expansion was based on the best predicted value.

Construction electricity indicatoron completed projects (kWh/€000construction cost, completed projects)

Colombo office Tower Ocidente (2011) 15.2

Shopping Metrópole expansion (2011) 5.7

Colombo office Tower Oriente (2010) 8.58

Centro Colombo expansion (2010) 4.36

Parque D. Pedro Shopping expansion (2010) 6.75

Electricity efficiency incorporate offices (kWh/m2)

2011 166

2010 153

2009 146

2008 86

Energy conservation action



Energy and Climate continued



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Reaping the rewards of greater energy efficiency in shopping centres

Since 2002, we have reduced our shopping centres’ electricity consumption per m2 of malland toilet area by 30%. The electricity efficiency measures which we have introducedsince then enabled us to avoid the consumption of an additional 100,000,000KWh ofelectricity in 2011, which is equivalent to over €7.3 million in energy costs.

Energy prices have significantly increased over the past three years – by 6% in Spain,5% in Portugal and 10% in Germany for instance22 – so improving the energy efficiencyof our operations continues to be an important strategy which can help us to reducecosts; an imperative in the current challenging economic situation. We have performedenergy audits across all of the shopping centres which we have owned for two or moreyears and in 2011 we implemented the recommendations of the energy audits carried outat 10 shopping centres as well as a range of other energy conservation actions, correspondingto a total investment of €457,128. These included:

kWh saving kgCO2 avoided

Installing LED lamps in different areas in four shopping centres in Spain (GranCasa, Luz del Tajo, Parque Principado and Plaza Mayor). 118,451 23,408

Purchasing new, more efficient HVAC equipment for Valle Real in Spain. 14,196 1,420

Shutting down the HVAC system during the winter months at Gli Orsi in Italy. 514,800 97,812

Replacing the chiller at Airone and the chiller and cooling tower at Valecenter in Italy with more efficient ones. 98,154 18,649

Substituting lamps in WCs and/or office areas at Manauara Shopping, Pátio Brasil Shopping, Parque D. Pedro Shopping, Shopping Metrópole and Shopping Penha (all in Brazil) with more efficient ones. 35,526 1,019

Substituting the air-conditioning equipment at Pátio Brasil Shopping 39,420 1,131

22 Source: Eurostat (http://epp.eurostat.ec.europa.eu/statistics_explained/images/8/8f/Energy_prices_2011s1.xls).

Click here for a full list of energy conservation actions implemented in our shopping centres, corporate offices and on completed development projects in 2011.

Since 2002, we have reduced ourShopping centreS’ electricityconSumption per m2 of malland toilet area by 30%. theelectricity efficiency meaSureSwhich we have introduced Sincethen enabled uS to avoid theconSumption of an additional100,000,000Kwh of electricity in2011, which iS equivalent to over€7.3 million in energy coStS.

http://epp.eurostat.ec.europa.eu/statistics_explained/images/8/8f/Energy_prices_2011s1.xls

luz DEl tAjo SAvES 7,000kWH of ElEctricity WitH A ligHting Solution for liftS

Lighting is responsible for a significant amount of electricity consumption in our shopping centres. A report from the International Energy Agency

highlights that switching to efficient lighting could cut the world’s electricity bill by 10% and save 16,000 megatonnes of CO2 in the years up to 2030.

Improving electricity efficiency is one of Sonae Sierra’s public commitments, and with this in mind Luz Del Tajo in Spain recently introduced an innovative

measure to avoid wasteful consumption.

The team identified that lighting was not needed in the shopping centre’s lifts when they were not in use, and therefore decided to install presence sensors

that would automatically switch the lights on and off. Fluorescent light bulbs were also substituted by more efficient LED bulbs by the maintenance

contractor, Schindler.

The team calculated that the hours of operation would drop from 22 hours a day (on average) to eight hours; as presented in the table below, representing

savings of almost 7,000kWh per year. This is equivalent to the annual electricity consumption of a large household, and allows us to save costs of €1,386

per year after a payback period of 3.2 years to cover the investment costs – a major accomplishment considering that this is achieved through changes to

three lifts and four hoists!






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Promoting the use of renewable energy in shopping centres

By improving the sustainability of our energy supply, we reduce our dependency to fossil fuels, which are finite resources subject to pricevolatility and inflation. At the same time, we support the development of clean technologies in the countries and regions where weoperate, which contributes to building green economies and create local jobs.

As explained on page 47, we prioritise energy suppliers which generate electricity based on renewable energy wherever economicallyfeasible. This has led to a number of changes in the past years, as almost all our shopping centres in Portugal and Spain, and all of thosein Germany now have electricity contracts in place which have low CO2 emissions factors per kWh.

In 2011, Loop5 in Germany agreed a new contract for its supply of natural gas which will enable the CO2 emissions generated as a resultof the shopping centre’s gas consumption to be offset through a reforestation project managed by the Forest Carbon Group and verifiedby independent third parties.

We also evaluate options for generating renewable energy on site on new projects and on existing shopping centre sites where economicconditions (such as Feed-in Tariffs in Europe23) are favourable. Different options are available to produce electricity or heat on siteincluding wind turbines, solar and photovoltaic panels, combined heat and power (CHP) and geo-thermal energy, but chosen sites need tofulfil certain characteristics for these technologies to be feasible. Moreover, the costs and benefits associated with each option needs tobe carefully weighed up to ensure they are financially viable for our business. Two of our shopping centres – Manauara Shopping in Braziland 8a Avenida in Portugal – generate part of the energy they consume using solar energy systems on site.

In 2011 we commissioned a study at Gli Orsi in Italy to identify possible options to generate renewable energy at this shopping centre,and will proceed with the recommendations in 2012. At Loop5 in Germany, we succeeded in finding a cost effective way to exploit theroof space for the use of photovoltaic panels. This involved renting out the shopping centre’s roof to a third party, Walter Konzept, whichhas installed a photovoltaic (PV) array consisting of 2,838 PV panels. The system is expected to produce 600,000kWh of electricityannually which is fed into the energy grid, thereby adding renewable energy to the regional energy mix. Sonae Sierra will receive anannual rental income from Walter Konzept, meaning that this agreement is beneficial to us financially as well as being beneficial to theenvironment, as it enables 300 tonnes of CO2 to be averted each year.

PanoramicLifts lift Hoists

Hours in operation per day – before 17 24 24

Hours in operation per day – after 13 3 9.1

KWh per year – before 1,787 5,466 315

KWh per year – after 319 298 20

kWh saving per year 1,468 5,168 295

cost saving per year (€) 293 1,034 59

All light bulbs that need replacing at Luz del Tajo will from now on be substituted with LED light bulbs.

23 Feed-in Tariffs are a scheme set up by many governments in Europe to promote small-scale generation of renewable energy. They involve giving payments to energy users(households, commercial property owners, etc.) for the renewable electricity that they generate.

reaping the rewards of greater energy efficiency in shopping centres (continued)

24 Source: Intergovernmental Panel on Climate Change (IPCC), “Climate Change 2007: Synthesis Report”.

Potential impacts of climate change in Europe and Brazil






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Anticipating the potential impacts of climate change

Although it is impossible to predict how climate change risks will impact our business, we believe in taking action now to preventpotentially serious and irreversible damage from occurring in the future. It is now widely accepted among scientists across the world that some impacts of climate change will be inevitable: on current trends, average global temperatures are expected to rise by 2 to 3˚C,within the next 50 years or so, and the earth will be subject to several degrees more warming if emissions continue to grow. If theincrease in global average temperatures exceeds 1.5 to 2.5˚C, major changes in ecosystem structure and function are anticipated, with predominantly negative consequences for biodiversity and ecosystems goods and services such as water and food supply24.

The impacts of climate change in the form of extreme weather events – flooding, heat waves, weathering, subsidence etc. could causephysical and local depreciation to assets, and those with unreliable energy supplies could also depreciate faster than others. On the otherhand, adapting existing buildings and developing and acquiring new buildings which perform better in predicted climate change scenarioscould help to maintain and enhance asset and portfolio value in the long-term. With reference to the findings of the IntergovernmentalPanel on Climate Change (IPCC) and other sources, we have identified the potential climate change impacts which may arise in theregions where we operate. We cannot anticipate exactly how these impacts might affect our shopping centres, although we can estimate,for example, that rising temperatures in several regions could increase demand for cooling within our shopping centres, putting furtherpressure on energy resources and causing operational costs to increase.

region Potential impacts

Europe – Atlantic region £ Increased coastal erosion and flooding. £ Loss of ecological habitat. £ Storm risk in winter.

Europe – central region £ Increased likelihood of winter flooding. £ Health risks as a result of heat waves.

Europe – Mediterranean region £ Reduced water availability and increased likelihood of drought. £ Loss of biodiversity. £ More frequent forest fires. £ Increased energy demand in summer for cooling, reduced hydropower capacity. £ Health risks as a result of heat waves.

Brazil – north region £ Higher temperatures and more heat waves. £ Lower rainfall and risk of drought.

Brazil – central West region £ Higher temperatures and more heat waves. £ More periods of intense rainfall.

Brazil – South East region £ More periods of intense rainfall. £ Higher temperatures and more heat waves.

£ Less frosts in the São Paulo region.

Locations whereSonae Sierra ownsshopping centres

Locations whereSonae Sierra hasshopping centresunder developmentand in the pipeline






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investigating the financial risks associated with climate change on two Portuguese assets

The information presented in the maps above is based on two sources: the IPCC25 and the study ‘Economia da Mudança do Clima noBrasil: Custos e Oportunidades’ for specific information on Brazil26. However, to respond appropriately to the impacts of climate change,we need to gain a better understanding about how our business activities and our shopping centres specifically will be affected. In 2009,we commissioned a study to investigate the financial risks associated with climate change on a sample of our Portuguese assets,focusing on three components: energy (mainly electricity), water and insurance costs.

This was done by identifying potential changes in energy use resulting from climate change under different scenarios and calculating thecosts of these changes based on two main assumptions: firstly, that the price of electricity would be unchanged relative to what it was in1990 and secondly, that the price will change as a result of climate-related policies. In order to estimate the impact on the profitability ofoperations at the selected assets, two approaches were taken. The first was an accounting approach, in which it was assumed that thecost structure would remain unaltered and reductions in profitability were calculated based on existing publicly available financial data foreach shopping centre. The second involved estimating the relationship between profitability and electricity prices using an econometricapproach. The econometric approach allows for the adjustment of operations in the centres to changing prices of inputs such aselectricity and accounts for other indirect effects on profits such as increased visitors during periods of higher temperatures.

25 Intergovernmental Panel on Climate Change (IPCC), Fourth Assessment Report; “Working Group II Report: Impacts, Adaptation and Vulnerability”, 2007.26 Sergio Margulis (Banco Mundial) and Carolina Burle Schmidt Dubeux (COPPE/ UFRJ), eds., Economia da Mudança do Clima no Brasil: Custos e Oportunidades (2010).

The results of this study revealed that:

£ The increased demand for energy and the anticipated increase in the price of energy is expected to reduce profitability by a maximumof between 2% and 5% in 2030 and between 3% and 6% in 2050, with variations between different shopping centres.

£ In the case of water it was not possible to estimate the potential increase in demand due to climate change but the impact ofincreases in water costs was examined, with the conclusion that these could reduce profitability by between 0.15% and 2%.

£ The likely increase in insurance costs was estimated at 21%. This could affect profitability between 0.1% and 0.7%.

In 2010 we commissioned the Centre for Molecular Biology and Environment of the University of Minho in Portugal to perform a study onecosystems services dependency focused on the same two pilot shopping centres, AlgarveShopping and NorteShopping. This study usedthe outputs of the previously mentioned study and highlighted other potential risks associated with climate change, such as seasonalwater shortages, flooding due to extreme weather events and the possible introduction of a carbon emissions tax.

All together, these studies emphasised the importance of reducing our dependency on fossil fuels and mains water supplies, increasingoperational efficiency and improving drainage systems on shopping centre sites. These are strategies which Sonae Sierra is alreadyactively pursuing. Nonetheless, we are aware that climate change is a complex phenomenon that could have further ramifications for ourbusiness activities in the different locations where we operate. To this end, we have defined an objective to develop and implement along-term Climate Change Adaptation Strategy covering investment, development, management and corporate activities.

In Portugal, AlgarveShopping and NorteShopping were selected for a more detailed asset-level study. The results of the study revealed that:

£ Increased demand for energy due to higher temperatures combined with projected price increases are likely to impact on operationalshopping centres profitability in the long-term: for example, at NorteShopping, an estimated reduction of profits between 2% and5.7% could occur in 2030.

£ Water costs are also expected to rise, but estimates vary significantly and the impact on profitability would be less significant; forexample, between 0.05% and 0.14% at NorteShopping and slightly more at AlgarveShopping due to higher water costs in this region.

£ Insurance costs are likely to increase by around 21% due to the increased frequency of extreme weather events and other risksassociated with climate change. The impact on profitability is likely to be around 0.1% at NorteShopping and 0.7% at AlgarveShopping.

57SONAE SIERRA Economic, Environmental and Social Report 2011EnvironMEntAl PErforMAncE


WaterDesigning and operating water efficient buildings

We aim to ensure a secure water supply at all of our shopping centres, with aparticular focus on locations that are vulnerable to water shortages. For this reason, in 2010, Sonae Sierra started to use the World Business Council forSustainable Development (WBCSD) “Global Water tool” to identify the areas inwhich we are developing new centres that are at risk of water stress or scarcity.When these projects go forward, the Company's Safety, Health and EnvironmentalDevelopment Standards (SHEDS) define that specific equipment (like waterchillers) must be avoided in order to minimise our vulnerability to water shortages.We also ensure that water efficient design, including equipment specifications andwater recycling engineering solutions, is maximised.

Where feasible, we integrate rainwater harvesting and greywater recycling systemson new projects to reduce the need for freshwater or mains water consumption and wehave set an objective for at least 10% of total water consumed at our shopping centres tobe reused greywater or harvested rainwater by 2020. During the fit out process, we setrequirements for water efficient sanitary equipment (such as sensor spray taps, waterless urinalsand low flush toilets). For shopping centres’ exterior areas and when landscape projects are defined,we specify efficient irrigation systems and minimise the planting of species with high water demands.

Within our operational shopping centres, we install water efficient appliances such as waterless urinals, low flush toilets and sensor taps in all refurbishments and set procedures to restrict water use wherever appropriate. It is our objective to attain a level of waterconsumption at or below three litres per visit (aggregated across all our shopping centres) by 2020. Our water metering strategy allows us to optimise shopping centres’ water consumption by enabling us to identify unusually high usage patterns and to define new management measures for tighter control of water usage.

During the design phase, we are committed to incorporating solutions that reduce pollution to local water sources. For instance, toprevent pollution from rainwater run-off we specify filter drains and porous paving in external paved areas and stormwater managementplans are implemented to contain or decrease stormwater run-off, according to the site’s characteristics. Additionally, our SHEDSguarantee that equipment like oil and hydrocarbon separators or wastewater treatment plants is installed, minimising pollution throughthe pre-treatment of these effluents before they are discharged. Our shopping centres may have up to five separate wastewatercollection systems, which enable different types of wastewater to be reused and/or treated, according to their characteristics. Currently,we have a wastewater quality standard to control wastewater quality beyond existing legal requirements. Wastewater discharges areanalysed regularly by externally certified laboratories, in order to control the contamination levels of our water discharges to municipalsewers, streams, etc. The main bio-chemical parameters analysed are Biological Oxygen Demand (BOD5), Chemical Oxygen Demand(COD), Fats and oils, Total Hydrocarbons, Total Suspend Solids (TSS), pH, Detergents and Sulphides.

Through this control it is possible to prevent and to correct pollution to water sources.

During construction works, we implement our Safety, Health and Environment Management System (SHEMS) for construction which includes guidelines for monitoring water consumption, targeting water efficiency improvements and implementing best practices in water conservation. We also place demands upon our contractors in order to avoid the risk of water pollution fromconstruction activities.

Where feaSIble, We IntegrateraInWater harveStIng andgreyWater recyclIng SyStemSon neW projectS to reduce theneed for freShWater or maInSWater conSumptIon.


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tArgEtS for 2012

• Attain a level of water consumption at or below 3.63 litres per visit, aggregated across all Sonae Sierra owned shopping centres.

• Study the feasibility of using rainwater in other applications at a further two shopping centres, with the aim of increasing theuse of harvested rainwater at these centres.

• Install a water treatment system at one of our shopping centres so that water withdrawn from the borehole can be used in thecooling tower, thus reducing our reliance on municipal water supplies.

• Improve the wastewater networks by taking actions at 14 shopping centres to ensure that discharges to water courses complywith Sonae Sierra's wastewater quality standards and pollutant limits.

Water Source (m3)

Increasing the reuse of water on our sites

In 2011, our shopping centres consumed a total of 1,312,557m3 of water, which is equivalent to 525 Olympic swimming pools. Over thepast few years, we sought to reduce the proportion of water withdrawn from municipal supplies and increased our use of water from other sources, such as harvested rainwater, groundwater and treated wastewater. In 2011, at least 70% of our shopping centres’ waterconsumption was withdrawn from mains water supplies and at least 20% was supplied by groundwater and rainwater collected by ourshopping centres.

In 2011 we continued our efforts to install water re-use systems. Cooling towers and air conditioning systems are a large consumer of water but through processes such as ‘reverse osmosis’ it is possible to treat and reuse that water. We implemented rainwaterharvesting systems at ArrábidaShopping, 8a Avenida and Centro Vasco da Gama in Portugal and set up water reuse systems in coolingtowers at LoureShopping and GaiaShopping in Portugal. We also proceeded with the implementation of a rainwater harvesting systemGaiaShopping in Portugal and water reuse systems at NorteShopping (Portugal) and Parque D. Pedro Shopping (Brazil). In total, 11 SonaeSierra shopping centres have rainwater harvesting systems in place; 21 are harvesting groundwater and nine are reusing water from theircooling towers. At Gli Orsi in Italy, the installation of the water reuse system is planned for 2012.

58SONAE SIERRA Economic, Environmental and Social Report 2011ENVIRONMENTAL PERFORMANCE


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Data Qualifying Note:This indicator includes 46 out of 49 shopping centres owned by SonaeSierra and in operation for the full reporting year. Alexa in Germany wasexcluded as it was not possible to determine rainwater consumptions forthis shopping centre due to the lack of meters. Loop5 in Germany wasexcluded due to problems with the water meters and due to this shoppingcentre’s Building Management System (BMS) not being fully operational.Pantheon Plaza in Greece was excluded because it was not possible todistinguish rainwater withdrawal and water withdrawn from mixed sources.In 2011, C.C. Continente de Portimão, in Portugal had refurbishment worksfrom September until December. During this period, water consumed forthe works was provided by the shopping centre and could not be meteredseparately. Consequently, water consumption values for this centre wereestimated for this period in order to exclude consumptions from therefurbishment works. Across the portfolio, water withdrawal fromwastewater was not included in 2011 as in previous years, since thewastewater used is not sourced from another organisation.

Percentage and totalvolume of water recycledand reused (m3 / %)

2020

2011

2010

2009

2008

10

75,500 / 5.8

61,862 / 4.3

43,000 / 3.1

66,927 / 4.6

2011

Ground water 265,718

Rainwater collected directly and stored by the reporting organisation 2,806

Municipal water supplies or other water utilities 914,304

Mixture of ground water and municipal water 129,729

Total water withdrawal 1,312,557

Data Qualifying Note:This indicator includes 46 out of 49 shopping centres owned by Sonae Sierra and in operation for the full reporting year. The shoppingcentres excluded are those mentioned under the indicator ‘Total water withdrawal by source’. The percentage of water recycled or reused isdetermined by the following formula: (Water reused/recycled (m3) / Total water withdrawal (m3))* 100. The shopping centres which arecontributing to water recycled/reused are: CascaiShopping; Centro Colombo; CoimbraShopping and LoureShopping in Portugal; Gli Orsi andFreccia Rossa in Italy and Parque D. Pedro Shopping and Shopping Plaza Sul in Brazil. Centro Colombo started to collect rainwater and alsoreuse water from cooling towers in November 2011, and these consumptions were included. For Dos Mares in Spain, it was considered that themethodology used in 2010 to estimate the amount of water reused/recycled was very imprecise, and consequently, data from this shoppingcentre was not reported in 2011. 8a Avenida, LeiriaShopping and ArrábidaShopping in Portugal, Pantheon Plaza in Greece and ShoppingPenha in Brazil have water reuse systems in place but currently are not able to measure the real amount of water reused.


Data on our total water withdrawal by country is available in our Country CR Summary Report at:http://www.sonaesierra.com/en-gb/corporateresponsibility/reportsandfeedback/reports/2011reports.aspx

Further reference:



Water efficiency(excluding tenants)of the owned portfolio(litres/visit)

2020

2011

2010

2009

2008

Data Qualifying Note:This indicator includes 48 out of 49 shoppingcentres owned by Sonae Sierra and in operationfor the full reporting year. This indicator refersto the amount of water consumed by eachshopping centre, excluding tenants, during thereporting year, divided by the number of visitsto the shopping centre in that year. Loop5 fromGermany was excluded for the same reasonsexplained on page 58.

3.0

3.7

3.7

3.6

3.8



Investigating our exposure to water scarcity

In 2010, we applied the WBCSD Global Water Tool to all our owned shopping centres and projects under development, as mentioned onpage 57. The outcomes of our analysis showed that, for our 49 operational shopping centres:

• One (2%) is located in an area of ‘extreme scarcity’ relative to the annual renewable water supply per person and ‘extreme stress’according to the mean annual relative water stress index.

• A further five shopping centres (10%) are located in areas of ‘high scarcity’ and two (4%) are located in areas of ‘medium scarcity’.

• 37 shopping centres (76%) are located in areas where the water supply per person is ‘sufficient’ or ‘abundant’. For four centres (8%),no data was available.

With respect to our development portfolio, one out of 11 projects is located in an area of ‘extreme scarcity’ relative to the annualrenewable water supply per person and two are located in areas of ‘medium scarcity’. All other projects are located in areas where thewater supply per person is ‘sufficient’.

In 2011, we compared those results with the new set of data provided by WBCSD for 2010. We did not find any difference between the two assessments and will continue to focus on finding ways to increase water efficiency and reduce reliance on external water supplies on new projects and at shopping centres located in areas of water scarcity.

Measuring the water efficiency of our operations

In 2011, our shopping centres consumed 3.66 litres per visit (rounded to 3.7), which represents a marginal improvement in comparisonwith 2010 but is short of our target, mainly due to the poorer performance of our Brazilian centres which in 2011 consumed an averageof 0.5 additional litres per visit. We do also monitor the water efficiency of our shopping centre portfolio based on total water consumptionin m3 per m2 of mall and toilet area, and based on this indicator our water efficiency improved from 3.2m3 per m2 in 2010 to 3.1m3 per m2

in 2011. This suggests that the overall reduction in the number of visits made to our shopping centres in 2011 compared with 2010 mayhave also had an impact on our water efficiency performance based on the litres per visit indicator.


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Data on our water efficiency by country is available in our Country CR Summary Report at: http://www.sonaesierra.com/en-gb/corporateresponsibility/reportsandfeedback/reports/2011reports.aspx

Further reference:





Measuring the water efficiency of our operations (continued)

We also monitor the water efficiency of our corporate offices and our construction projects, although we have less direct control overwater efficiency improvements at these sites.

In our corporate offices, we achieved a value of 6,416 litres per worker. This result is difficult to compare with the previous years as it doesnot include consumptions for the Lisbon office (see explanations in the data qualifying note below), but does include the Bucharestoffice, which started reporting its water consumption in 2011.

The construction water indicator obtained on the Colombo office Tower Ocidente project is in line with our expectations, being similar tothe value obtained on its twin project, the Colombo office Tower Oriente. On the Shopping Metrópole expansion, water consumption wasaligned with similar Sonae Sierra projects.


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Water efficiency incorporate offices(litres/worker)

2011

2010

2009

2008

Data Qualifying note:This indicator includes four out of eight main corporate offices. It corresponds to the amount of water consumed at each office during thereporting year divided by the number of workers at each office (including all Sonae Sierra direct employees, supervised and independentworkers who are working at each office). Data from the Maia office was not included because toilets in this office are shared with employeesfrom other Sonae companies. Data from the Milan and São Paulo offices was not included because there are no water meters at these offices.Data from the Lisbon office was also excluded since in 2011 the landlord decided to include in Sonae Sierra’s Invoice the irrigation water, whichwas estimated as no separated network existed. As the value was believe to be very high, it was decided to separate the irrigation networkfrom the condominium and these works were only concluded at the end of November 2011. With these works it was also installed a watermeter in order to report accurate values of this office’s consumption.

6,416

6,836

5,432

5,772

Data Qualifying note:This indicator includes all major development projects completed during the reporting year,with the exception of the Shopping Campo Limpo expansion in Brazil which is explained onpage 4. The values reported are indicative of the quantity of water consumed duringconstruction on these projects. The indicator is calculated for each project by dividing thetotal water consumed at the construction site by the total construction cost of the project.Water consumption is monitored and recorded on a monthly basis at each project, from the start to the completion of the development works. The total construction cost of theShopping Metrópole expansion was based in the best predicted value.

Construction water indicator(m3/€000 construction cost)on completed projects

Colombo office Tower Ocidente (2011) 0.1

Shopping Metrópole expansion (2011) 0.6

Colombo office Tower Oriente (2010) 0.07

Centro Colombo expansion (2010) 0.12

Parque D. Pedro Shopping expansion (2010) 0.58



investment in shopping centres’ water efficiency pays off

Since 2003, we have reduced shopping centres’ water use per visit by 12%, and the water efficiency measures which we have introducedsince then enabled us to avoid the consumption of an additional 212,422m3 of water - equivalent to €814,962 in costs – in 2011.

In 2011, we invested a total of €677,469 in water efficiency improvements. In shopping centres, a significant amount of water is used in toiletareas and for irrigation purposes and we implemented a range of actions to reduce water consumption in WCs and irrigation specifically:

• We installed waterless urinals or dual flushes in a further five shopping centres, which will enable us to save a total of 2,274m3 ofwater, and we installed sensor taps (to avoid the water from running when not needed) in two shopping centres. All our shoppingcentres now have one or more devices to reduce water use in WCs.

• At CascaiShopping and MadeiraShopping in Portugal and Shopping Plaza Sul in Brazil we improved our landscape irrigation system,while at Pantheon Plaza in Greece we substituted the plants in the food court for ones with lower water needs.

At Valecenter in Italy, we installed a new more efficient cooling tower and made adjustments to the operation of the existing chiller,which allows us to save 2,000m3.

We also introduced improvements to the way in which we monitor water consumption. We installed leak detection systems at a furthersix shopping centres (LoureShopping, GuimarãeShopping and CoimbraShopping in Portugal; Valecenter in Italy and Parque D. PedroShopping and Shopping Metrópole in Brazil) and additional water meters which connect automatically to the existing BMS at a furthertwo shopping centres (Pantheon Plaza in Greece and Parque D. Pedro Shopping in Brazil). We also installed additional meters necessaryto sub-meter water consumption at three shopping centres.

Click here for a full list of water efficiency actions implemented in our shopping centres and on completed development projects in 2011.


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SInce 2003, We have reducedShoppIng centreS’ Water uSe per vISIt by 12%, and theWater effIcIency meaSureSWhIch We have IntroducedSInce then enabled uS to avoId the conSumptIon of an addItIonal 212,422m3

of Water – equIvalent to €814,962 In coStS – In 2011.




Avoiding Water Pollution

Water pollution can spread fast and far, with the potential to damage many ecosystems. The quality of the wastewater discharged byshopping centre buildings is subject to regulations in every country where Sonae Sierra operates. Different pollutants can only bepresent in the water up to a certain threshold. In the European Union, Council Directive 91/271/EEC concerning urban waste watertreatment sets requirements regarding the collection, treatment and discharge of wastewater. Member States have to collect and treatwastewater in all settlements with more than 2,000 inhabitants and must monitor the performance of treatment plants, among otherrequirements.

We study the quality of wastewater emitted by every shopping centre we own and manage, and compare the results with thresholds setby our SHEMS and current regulations. In 2011 we discussed the results of the analysis within our Environmental Working Group andidentified parameters which regularly exceeded the limits set (oils and fats for instance) and proposed a methodology to reduce thesegoing forward. We identified shopping centres in Portugal, Spain, Brazil, Germany and Romania where further actions are required toguarantee that wastewater complies with Sonae Sierra’s standards.

We also identified another four shopping centres where we needed to improve the internal wastewater networks. In Portugal, thisincluded improving the wastewater tank pumping system and removing grease and solid particles from the effluents produced byMcDonald’s in ViaCatarina and installing a grease collector at CoimbraShopping. We will build on this work in future years to ensure thatall discharges to local water courses and sewers comply with our quality standards and are well within legal thresholds.


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EFFICIENT EQUIPMENT AND CREATIVE CAMPAIGNING SAVEWATER AT GRANCASA

Sonae Sierra’s shopping centres in Spain are among the most water efficient inthe portfolio – using 2.3 litres of water on average per visit in 2011. GranCasadecided to implement a programme to reduce visitors’ water consumption in the shopping centre even further by acting on two different fronts: awarenessraising and technical measures.

Between March and June 2011, the shopping centre organised five campaigns, at a total investment of €2,130. With the theme of saving water in everydayactivities, these campaigns used different media such as awareness messages;television; leaflets with water saving tips and even a competition to incentiviseshopping centre visitors to take shorter showers. Furthermore, improvementworks being undertaken in the shopping centre toilets were seen as anopportunity to procure and install waterless urinals which would allow significantwater savings. However, we faced some challenges: the work had to be doneoutside of business hours and the necessary investment had to fit within ourexisting budget. We were able to complete the work by spreading it betweenJanuary and September 2011 and by rationalising costs, managing to fund thewhole project for €7,000 in total.

Overall in 2011, GranCasa reduced its total water consumption by 0.5% in comparison with 2010. We hope that the awareness raisingevents have also inspired staff, tenants and visitors to use water more efficiently both inside and outside of the shopping centre.

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Investment in shopping centres’ water efficiency pays off (continued)





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Wasteour progressive approach to waste management

Our Safety, Health and Environment Development Standards (SHEDS) include a series of design requirements to maximise the wasteseparation potential of every shopping centre we develop, so that once the shopping centre is in operation waste can be effectivelysorted and sent for recycling and recovery. A site specific Waste Strategy Study is undertaken during construction to establish adequateprovision of space for waste segregation bins and compactors, temporary storage and internal preferential routes for disposal.

Sonae Sierra takes a progressive approach to waste management during construction works, encouraging contractors to operate Waste Management Plans. Aware of the difficulty that arises from the construction process being directly controlled by constructioncompanies, we are committed to gradually designing-out waste produced during construction (for example through off-site pre-fabrication).Where possible, we specify end of life recycling for building components, which is particularly relevant for our refurbishment activities.In addition, construction companies are required to report back to us the results of their waste management.

During the operations phase, the waste handled by Sonae Sierra is largely generated bytenants' activities. Aside from seeking to influence tenants’ practices, there is little that wecan do to reduce waste production in our centres. Therefore, our waste managementefforts are focused on waste segregation, management and disposal. Beyond legalrequirements, we aim to progressively improve each shopping centre's wasterecycling rate, and have set an objective to obtain a minimum average recyclingrate of 55% (and a maximum average landfill rate of 30%), aggregated acrossall our owned shopping centres by 2020.

Over the past years, we have successfully achieved significant reductions inthe amount of waste sent to landfill. This is largely due our efforts to increaserecycling and recovery rates, by investing significant resources in waste separation;finding new waste disposal opportunities (like on-site composting and incinerationwith energy recovery), and carrying out awareness raising and training activitiesamong our staff, tenants and service suppliers. In Germany, a ‘polluter-payer’system is in place in all our shopping centres (see page 67 for further details), andwe continue to investigate the feasibility of applying similar systems in the othercountries where we operate.

tArgEtS for 2012

• Attain a minimum average recycling rate of 53.4%, aggregated across all Sonae Sierra owned shopping centres.

• Guarantee that the proportion of waste (by weight) sent to landfill, aggregated across Sonae Sierra owned shopping centres, does not exceed 36.3%.

• Attain a minimum average recycling rate of 78%, aggregated across Sonae Sierra corporate offices.

• Reduce the proportion of waste send to landfill by one percentage point, aggregated across Sonae Sierra corporate offices.

• Achieve a recycling rate of at least 85% on all new projects completed in 2012 (including refurbishments and expansions).

over the paSt yearS, We have SucceSSfully achIevedSIgnIfIcant reductIonS In theamount of WaSte Sent to landfIll.thIS IS largely due our effortS to IncreaSe recyclIng andrecovery rateS, by InveStIngSIgnIfIcant reSourceS In WaSteSeparatIon; fIndIng neW WaStedISpoSal opportunItIeS andcarryIng out aWareneSS raISIngand traInIng actIvItIeS among our Staff, tenantS and ServIce SupplIerS.

total weight of waste by type and disposal method





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Waste continued

understanding our total waste impact

In 2011, our shopping centres and corporate offices combined generated a total of 47,892 tonnes of waste, of which 17,360 tonnes (36%)were disposed of in landfill. The remaining 30,532 tonnes (64%) were disposed of principally through recycling, composting, incinerationwith energy recovery and anaerobic digestion. Our completed construction projects generated a total of 13,259 tonnes of waste, of which5,824 tonnes (44%) were disposed of in landfill and the remaining 7,435 tonnes were disposed of through reuse and recycling; hazardouswaste treatment; waste composting and incineration with energy recovery.

Shopping Centres and Corporate Offices (tonnes)

Hazardous Non-hazardous Disposal Method waste waste Total

Anaerobic Digestion – 1,161 1,161 2%Composting – 6,072 6,072 13%Incineration with energy recovery – 4,615 4,615 10%Incineration without energy recovery 1 2 3 0%Landfill – 17,360 17,360 36%Recycling 80 18,294 18,374 38%Reuse 2 136 138 0%Treatment/Elimination 28 141 169 0%

totals 111 47,781 47,892

Completed Projects (tonnes)

Hazardous Non-hazardous Disposal Method waste waste Total

Landfill – 5,824 5,824 44%Treatment/Elimination (includes waste composting, energy recovery,

treatment of hazardous waste, reuse and recycling processes) 2 7,433 7,435 56%

totals 2 13,257 13,259


Data on our total weight of waste by country is available in our Country CR Summary Report at: http://www.sonaesierra.com/en-gb/corporateresponsibility/reportsandfeedback/reports/2011reports.aspx

Further reference:

Data Qualifying note:This indicator includes all shopping centres owned by Sonae Sierra and in operation for the full reporting year as well as our eight main corporate offices. It also includes data from the majordevelopment projects completed during 2011, the Colombo office Tower Ocidente in Portugal and the Shopping Metrópole expansion in Brazil. The Shopping Campo Limpo expansion in Brazil wasnot included for the reason explained on page 4. The indicator covers data for the whole of the construction, demolition and excavation period. The values presented above, for our completeddevelopment projects, exclude the weight of excavated soils, since their inclusion would misrepresent the management of waste effectively done during construction. If not reused on site, thesesoils are sent to external valorization and reuse options.







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Waste continued

tackling waste production on our construction sites

The generation of waste on our construction sites can be significant; for example, LeiriaShopping, which was inaugurated in Portugal in2010, produced 9,184 tonnes of waste during its construction phase, which was equivalent to around 20% of the annual amount of wastegenerated by the 51 shopping centres in operation which we owned in 2010. Construction and demolition waste is one of the heaviestand most voluminous waste streams and its disposal in landfill can result in significant harmful impacts for the natural environment.Furthermore, according to one source, “incinerating 10,000 tonnes of waste creates one job; landfilling the same amount of waste createssix jobs, but recycling the same 10,000 tonnes creates 36 jobs27”. We have set an objective to maintain high performance in terms ofwaste recycling on construction projects and to increase the proportion of construction materials used which have a recycled content.

In 2011, we applied our waste management practices on all projects under construction28. Whilst the Colombo office Tower Ocidenteproject achieved a recycling rate above our target value of 85% for new projects, the recycling rate of the Shopping Metrópole expansionrepresented a poor performance that was below our expectations.

increasing our shopping centres’ recycling rates reduces costs

In 2011, our shopping centres achieved a global recycling rate of 53%, compared with 51% in 2010. We also reduced the rate of wastesent to landfill from 39% in 2010 to 36% in 2011, meaning that we are on track to meet our 2020 objectives. In 2011, we saved costs of€0.6 million as a result of the 179% increase in the proportion of waste recycled between 2002 and 2011.

The overall increase in the recycling rate in 2011 was achieved mainly by increasing our efforts to raise tenants’ awareness; optimise theallocation of personnel involved in waste management; improve waste collection facilities and apply our good waste managementpractices. All countries apart from Spain increased their shopping centres’ recycling rates. Our German portfolio continues todemonstrate the best performance in terms of recycling (69%), whilst the Romanian portfolio has the lowest recycling rate at 41%. InSpain, the year-on-year decrease in the recycling rate was mainly due to the sale of Plaza Éboli and El Rosal, which had demonstratedhigher than average recycling rates in this country.

Data Qualifying note:This indicator includes all major development projectscompleted during the reporting year, with the exceptionof the Shopping Campo Limpo expansion in Brazil whichis explained on page 4. The construction recycling indicatoris calculated for each major individual project completedduring 2011. The indicator covers waste recycling for thewhole of the construction period. It includes waste that isrecycled, recovered and reused.

Total waste recycled as a proportion of waste produced (% by weight,on completed projects)

Colombo office Tower Ocidente (2011) 92%

Shopping Metrópole expansion (2011) 39%

Colombo office Tower Oriente (2010) 72%

Centro Colombo expansion (2010) 100%

Parque D. Pedro Shopping expansion (2010) 100%

27 Source: Green Facts by Ecoforce (http://www.ecoforce.co.uk/green-facts.htm).28 With the exception of the Shopping Campo Limpo expansion in Brazil, which is explained on page 4.

In 2011, We SavedcoStS of €0.6 mIllIonaS a reSult of the179% IncreaSe In theproportIon of WaSterecycled betWeen2002 and 2011.

http://www.ecoforce.co.uk/green-facts.htm

Total waste recycled asa proportion of wasteproduced (% by weight,across our owned portfolio)





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Waste continued

In 2011 we continued our efforts to divert waste from landfill and improved our recycling rates at our shopping centres.

We improved waste storage facilities at three centres. In Portugal, the waste storage area at GuimarãeShopping was remodelled toimprove its capacity, and in Centro Vasco da Gama, the food court service station containers were replaced. In Spain, our team atGranCasa identified that the waste compactor for recyclable cardboard was not located conveniently, and the space was reorganised tomove it closer to the undifferentiated waste compactor. Between March and October 2011, this simple measure improved the cardboardrecycling rate by 4.4% a month on average.

At Luz del Tajo in Spain, we investigated the feasibility of introducing on-site organic waste composting, with the conclusion that thesystem was approved for implementation in 2012.

At Shopping Campo Limpo and Pátio Brasil Shopping in Brazil, we implemented the recommendations of the Waste CharacterisationStudies which were performed in previous years. In Portugal, Spain, Italy and Brazil we performed studies to identify whether it would befeasible to set up ‘polluter payer’ waste management schemes for our tenants, following the success of this system in Germany. In Spainand Brazil we concluded that this system would not be feasible to implement. In Portugal and in Italy, Sonae Sierra will consider thepossibility of setting up pilot systems starting in 2012 and 2013 respectively.

Click here for a full list of waste management actions implemented in our shopping centres in 2011.

2011 53

2020 55

2010 51

2009 46

2008 42

Data Qualifying note:These indicators include all shopping centresowned by Sonae Sierra and in operation forthe full reporting year. Waste recycledincludes waste that is recycled and recovered.

Proportion of waste thatis sent to landfill(% by weight, across ourowned portfolio)

2011 36

2020 30

2010 39

2009 42

2008 48


Data on our waste recycling rates by country is available in our Country CR Summary Report at:http://www.sonaesierra.com/en-gb/corporateresponsibility/reportsandfeedback/reports/2011reports.aspx

Further reference:

increasing our shopping centres’ recycling rates reduces costs (continued)







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Waste continued

rEDucing coStS By incrEASing tHE rEcycling rAtE At looP5

Our shopping centres produce significant amounts of waste. If not managed appropriately, a large proportion of this waste can endup being disposed of in landfill sites, taking up valuable land space and causing pollution to the air, soil and water. Since mostshopping centre waste is produced by our tenants, influencing tenants’ practices is one of the principal strategies we can adopt inorder to reduce the impact of our shopping centres’ waste production on health and the natural environment.

When Loop5 opened in Germany in October 2009, the shopping centre implemented a ‘polluter payer’ or ‘pay by weight’ wastemanagement scheme whereby tenants’ waste is separated by type and the associated cost is allocated directly to the tenantthrough a card system. Recyclable packaging materials (plastic, metal, plastic foil and glass) are free of charge. Paper, cardboard,organic waste and wood have a lower cost than mixed (unsorted) waste so as to encourage tenants to recycle.

The success of a scheme such as this depends on tenants’ participation. For this reason, Loop5 organises regular training sessionsfor tenants and delivers brochures to explain the recycling programme and procedures. The shopping centre team analyses eachtenants’ waste production by type on a monthly basis. Tenants identified as having a low recycling rate are asked to meet regularlywith the shopping centre team, who explain to them the environmental and economic benefits of waste recycling. Tenantsidentified as having a high recycling rate are congratulated for their good performance.

As a result of this strategy, Loop5 increased its average recycling rate to 73% in 2011, compared with 63% in 2010 and 48% in2009 (during its first three months of opening). The increase in the recycling rate allowed us to reduce waste management costsby 19% in 2011 in comparison with 2010, and generated a cost saving of around €20,000. Following negotiations with our wastemanagement supplier in September 2011, it also became possible for us to dispose of more recyclable materials (paper andcardboard, organic waste and wood) free of charge. This enabled us to make a final cost saving of around €35,000, a 33% reductionin comparison with 2010. All waste from Loop5 that is not recycled or composted is disposed of through incineration with energyrecovery, meaning that the shopping centre does not send any waste to landfill.

Pro-active waste management in our corporate offices

In 2011 we improved the recycling rate of our corporate offices by an impressive 14% in comparison with 2010, meaning that we alreadymet our 2020 objective of attaining an 80% recycling rate. However, this was partly due to some specific circumstances, includingchanges in the work areas in the Lisbon and Madrid offices and the recycling of waste materials which are not normally generated in ouroffices (wood waste in the Lisbon office and electrical appliances which were replaced in the Athens office). For this reason, we willmaintain our long-term objective at 80%.

Improving waste management in our offices is as much about motivating people as it is about equipment and infrastructures, and oneof the other factors which contributed to our improved performance in 2011 was our efforts to raise awareness about the importance ofrecycling waste through campaigns and events held at all offices. For example, at the Madrid office we provided training, guidance andtips to staff and organised a competition to create the best Christmas decoration made from waste materials. At the São Paulo office,we held training sessions for our new cleaning service supplier to promote greater involvement of cleaning staff in waste management,and there was an improvement in the follow-up of waste management results by the SHE team.

Total waste recycled asa proportion of wasteproduced (% by weight,in our corporate offices)

2011 80

2020 80

2010 70

2009 67

2008 57

Data Qualifying note:These indicators include all eight mainSonae Sierra corporate offices. Wasterecycled includes waste that is recycledand recovered.

Proportion of waste thatis sent to landfill(% by weight, in ourcorporate offices)

2011

13

11

2010

312009

462008

increasing our shopping centres’ recycling rates reduces costs (continued)



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Biodiversity and HabitatsManaging our impacts on biodiversity

Our most fundamental impact on biodiversity results from the development of land and the associated change in land use that thiscauses. This is particularly relevant where projects are located on ‘Greenfield’ or previously un-developed land which is most likely to berich in biodiversity or perform valuable ecosystem services and functions. As well as causing damage to biodiversity and habitats,development on ecologically sensitive sites can increase the likelihood of opposition from local communities (resulting in delays in orrejection to planning applications) and the risk of fines due to instances of pollution or litigation through environmental liability laws.On the other hand, constructing on previously developed land and enhancing the ecological value of contaminated sites can bringbenefits to the local economy, environment and community which can increase support for new projects and enhance the developer’sreputation. For these reasons, we have set an objective to promote the use of previously developed land for new Sonae Sierra shoppingcentre projects and to protect and enhance biodiversity wherever possible.

Environmental Due Diligence (EDD), Environmental Impact Studies (EIS), Safety, Health and Environment Development Standards(SHEDS) and a site specific Safety, Health and Environmental Management System (SHEMS) are applied to all our new developments.EIS are performed for every land acquisition or expansion process and can be of two types: Environmental Impact Assessments, whenrequired by legislation and, in all other cases, Preliminary Environmental Evaluations (PEE) which are performed according to SonaeSierra’s specifications. The EIS identifies the potential environmental impacts of each project’s design, construction and operation on thesite’s biodiversity and specifies mitigation measures. We monitor the implementation of these recommendations to ensure that impactson biodiversity are minimised as far as possible. In cases where we are building a shopping centre on a Greenfield or previouslyundeveloped site, we ensure that all recommendations are implemented to compensate for any loss of biodiversity.

The SHEDS also establish requirements in relation to biodiversity, namely:

• Ecological features classified as premium features according to the EIS must be preserved throughout construction and integrated inthe landscape design. All other relevant ecological features should be preserved and integrated into the landscape project to thegreatest extent possible.

• Native flora should be specified for use on all of the development’s outdoor ‘soft’ landscaping works, and preference should be given tothe use of “green barriers” such as hedgerows rather than fences. Exotic, allochthonous, invasive or non-indigenous plant or treespecies should not be specified for any of our new shopping centre’s landscape projects.

• Flat roofs (i.e. roofs with gradients of no more than 5 degrees), which are not used for any specific purpose (e.g. car parking,pedestrians use, housing of plant rooms, etc.), should be considered by design as suitable locations for green roofs.

In 2011, the SHEDS were revised in order to include a new standard related to long-term impact on biodiversity. A note was also includedwithin the SHEMS procedure, making the implementation of all the recommendations of the EIS that refer to biodiversity compensationmandatory on Greenfield sites where full mitigation of biodiversity impacts is not possible.

At our operational shopping centres and our corporate offices, biodiversity impacts that may result from day-to-day activities such aswaste disposal and water consumption are monitored through our SHEMS procedures. We have on-going projects at LoureShopping inPortugal and Parque D. Pedro Shopping in Brazil to protect existing habitats and we also seek to raise awareness of biodiversity throughmarketing events and other initiatives among shopping centre staff and/or visitors.


conStructIng on prevIouSlydeveloped land andenhancIng the ecologIcalvalue of contamInated SIteScan brIng benefItS to thelocal economy, envIronmentand communIty.

tArgEt for 2012

• Achieve 100% compliance with the approvedrecommendations of the PEE (or equivalent study)on new completed projects.



Water 57

Waste 63


Biodiversity and Habitats continued

integrating biodiversity on our new projects

In 2011, 100% of new completed development occurred on previously developed land. We did not own, lease or manage any sites in oradjacent to protected areas or areas of high biodiversity value outside protected areas and our activities had no significant impacts onbiodiversity in protected areas or areas of high biodiversity value outside protected areas.


Our shopping centre expansion project which was completed in 2011, Shopping Metrópole in Brazil, complied with all the EISrecommendations for this site. This included, for example, setting up control points on the construction site for waste management andregularly monitoring fossil-fuel powered equipment and vehicles on site.

At Passeio das Águas Shopping, our project under development in Goiânia, Brazil, we are committed to restoring a degraded forest areaof 57,641m2 around the River Caveirinhas. We are developing an Environmental Recovery Plan which will involve reforestation of the areawith native tree species and the preservation of wild fauna.

Promoting biodiversity protection in operational shopping centres

Once our shopping centres are in operation, there is less scope for us to enhance local biodiversity on site, except on those shoppingcentres which include significant areas of green space within the site (namely LoureShopping in Portugal and Parque D. Pedro Shoppingand Manauara Shopping in Brazil). Therefore, during the operations phase, we focus our actions on raising awareness about biodiversityprotection, capitalising on our ability to communicate with the large number of people who visit our shopping centres, and on supportinglocal organisations involved in biodiversity protection.

Biodiversity protection is a particularly pertinent issue in Brazil. This country has the greatest biodiversity on the planet but wildlife andforests are under threat due to pollution, deforestation and poaching. Our shopping centres in Brazil launched several campaigns andactivities on the theme of biodiversity protection in 2011. For example:

• Shopping Campo Limpo organised an awareness campaign in March 2011 presenting a photographic exhibition on dolphins from thearchipelago of Fernando de Noronha, a UNESCO Natural World Heritage Site in Brazil.

• Manauara Shopping organised educational activities on nature and wildlife for children and supported the project ‘Plantar Muda’(‘Planting Changes’), launched by Manaus City Council, which involved planting 15,000 trees in different areas of the city.

• Tivoli Shopping planted 30 trees and distributed 500 native tree seedlings to visitors, to raise awareness among adults and childrenon the importance of forests and biodiversity.

• Pátio Brasil Shopping organised the fourth edition of the international eco-cartoon competition and exhibition. The 2011 theme wasthe preservation of biodiversity. The shopping centre team received more than 500 applications, which were assessed by a jurycomposed of five illustrators and environmental experts. In total, 109 cartoons were selected to be displayed during the month of June.

Proportion of completeddevelopment on previouslydeveloped land (% by area)

2011 100

2010 100

2009 100

2008 51

Data Qualifying note:This indicator includes all Sonae Sierra developmentprojects completed during the reporting year, with theexception of the Shopping Campo Limpo expansion in Brazilwhich is explained on page 4. In 2011 this applied to oneproject, the Shopping Metrópole expansion in Brazil. It didnot apply to the Colombo office Tower Ocidente becausethis project involved development inside shopping centrebuilding boundaries.


Further reference:




Water 57

Waste 63


Biodiversity and Habitats continued


gAiASHoPPing MoBiliSES tHE locAl coMMunity toProtEct forEStS

Forest fires can cause extensive damage to human life and the naturalenvironment. In Portugal, where forest cover occupies around 38% of the totalland surface and various forest products are important contributors to theexport market, forest fires present a significant risk and can be devastating.

Like our other shopping centres which have a Community Advisory Panel(CAP)29 in place, in 2011 GaiaShopping in Portugal held a discussion with CAPmembers on the International Year of the Forest. Inspired to take action toprotect local woodlands, the CAP members decided to work together to reforestan area that had been previously burned down in a forest fire.

With little budget and a lot of people to involve, the GaiaShopping team madegreat efforts to organise the reforestation day. The nature conservationorganisation Quercus, which is represented on the GaiaShopping CAP, identifiedthe area where the work should be done and advised on the particular specieswhich should be planted taking into account the conditions of the soil andclimate, and the need to mitigate the risk of forest fires from spreading in thefuture. A total of 53 people volunteered, including staff from tenants’ shops andshopping centre service suppliers and representatives from local entities whichare part of the GaiaShopping CAP, such as the forestry department, localfiremen, the local council and charitable organisations which support social andenvironmental causes.

The day was a great success. Everyone collaborated as a team and allstakeholders involved were very pleased to have the opportunity to make apositive contribution to their community and the environment.

29 For more information about our Community Advisory Panels, see page 87.

Promoting biodiversity protection in operational shopping centres (continued)

71SONAE SIERRA Economic, Environmental and Social Report 2011SOCIAL PERFORMANCE

Suppliers 72

Tenants 78


Employees 91



It is part of our day-to-day operations to makesure that our tenants and our shopping centres’visitors are satisfied with the quality of servicethey receive from our Company and resultshave shown that, in spite of the challengingeconomic conditions, our shopping centresremain attractive to both. Beyond our emphasison customer satisfaction, we have developedsignificant programmes to actively engage withour stakeholders on wider sustainability issues,including the Personæ and Planet Sierra TenantAwards; our Community Advisory Panels;campaigns to promote responsible behaviouramong visitors and innovation programmes foremployees. Our studies suggest that there maybe further opportunities to exploit growingconsumer appetite for more environmentallysustainable and health-orientated products andservices, and we are beginning to explore thesethrough our tenant mix and marketingstrategies.

First and foremost, we are

committed toconducting ouractivities so that riskstowards people and assetsare minimised, and toachieving excellent levelsof social responsibility

Our approach to social issues focuses on thestakeholder groups most affected by ouroperations: our suppliers; tenants; visitors;employees and the communities close to ourshopping centres and new projects.First and foremost, we are committed to conducting our activitiesso that risks towards people and assets are minimised, and toachieving excellent levels of social responsibility. We formalisedthis commitment in 2004 with the introduction of our Safety andHealth Policy, and in 2008 our Safety and Health ManagementSystem became the first in the shopping centre sector to achievecertification in accordance with the OHSAS 18001 standard.

Community day, Portugal

CLICK2,innovation training

Gli Orsi, Italy

TARGETS FOR 2012

• Ensure that at least 50% of timber used in new shopping centre projects or refurbishments is procured from certifiedsustainable sources.

• Ensure 100% of relevant suppliers answer the CR questionnaire and receive feedback with the aim of assessing their baselineCR performance and to allowing us to measure their improvement.

• Ensure that 100% of bids and contracts signed during 2012 with critical property management service suppliers includeclauses for minimum requirements in relation to social and environment standards.

• Implement CR audits for all maintenance; security; cleaning and waste management suppliers in each Sonae Sierra ownedshopping centre using the check-list created during 2011, and reduce non-conformities to a maximum of 15%.


Suppliers 72

Tenants 78


Employees 91


SuppliersOur Responsible Procurement Policy

We engage with our suppliers with the aim of encouraging them to adopt more responsible business practices. In 2007, we formallyapproved our Responsible Procurement Policy, which commits us to:

• Integrating CR criteria into our Service Suppliers’ Management Procedures so as to ensure that the social and environmentalperformance of our suppliers is considered when tendering, managing and evaluating supplier contracts.

• Engaging with our suppliers in order to improve their CR performance.

• Privileging the use of materials which are locally-sourced; have a recycled content; have a low-toxic content; have a long life and canbe recycled or used, and/or are sourced from companies which adhere to ethical and/ or environmental standards.

Our Service Suppliers Management Procedures for Development and PropertyManagement define the various steps that should be followed from the pre-selection andbidding process through to contract closure and post-contract evaluation. Both ourDevelopment and Property Management businesses have integrated the requirementsof Sonae Sierra’s Safety, Health and Environment Management System (SHEMS) intotheir Service Suppliers Management Procedures, so that these are set up in a way thatensures that our main suppliers’ performance meets with Sonae Sierra’s Safety,Health and Environmental (SHE) requirements.

Within the scope of these procedures, all contracts with critical suppliers30 mustinclude SHE clauses, and sub-contractors have the same level of SHE requirementsas contractors. If no formal contracts are signed, then the service supplier must sign a‘Warranty Declaration’ to guarantee that SHE requirements will be met. We have alsoestablished SHE regulations for service providers, which include, for example, the obligationfor suppliers to adopt protective measures to minimise risks that workers are exposed to.Compliance with these regulations is checked during work supervision and for long term contracts(including contractors from construction sites) and S&H performance is evaluated during works execution.

We collaborate closely with our critical suppliers on specific issues relating to SHE through our SHEMS procedures such as thosedescribed on pages 24 and 25 and in the Safety and Health chapter on pages 96 to 103. Our SHE training plans for each site include theidentification of training needs for service suppliers.

For Sonae Sierra, it is difficult to control the selection of raw materials used in shopping centre development projects as our developmentcontractors source materials (generally pre-manufactured goods) on our behalf. This compromises our ability to gauge a clearunderstanding of the scale of our impacts in terms of raw materials consumption. Nonetheless, through our SHEDS and our ServiceSuppliers Management Procedures we encourage our suppliers to reuse demolition materials and favour materials that are low-toxic,locally sourced, have a recycled content and/or are sourced from companies that adhere to ethical and environmental standards. TheSHEDS prohibit the use of materials which are known to have negative impacts on the environment and on the health and well-beingof building occupants and timber products derived from non-sustainable managed forestry.


BOTH OUR DEVELOPMENTAND PROPERTY MANAGEMENTBUSINESSES HAVE INTEGRATEDTHE REQUIREMENTS OF SONAESIERRA’S SAFETY, HEALTH ANDENVIRONMENT MANAGEMENTSYSTEM (SHEMS) INTO THEIRSERVICE SUPPLIERS MANAGEMENTPROCEDURES.

30 For Development, critical suppliers are considered to be those with whom Sonae Sierra has a contract of over €2 million. For Property Management, critical suppliers are consideredto be main shopping centre service providers: cleaning, security, maintenance and waste management.

73SONAE SIERRA Economic, Environmental and Social Report 2011SociAl PErforMAncE

Suppliers 72

Tenants 78


Employees 91


Suppliers continued

Embedding our sustainable supply chain procedures

In 2011, as in previous years, we ensured that 100% of contracts signed by our Development and Property Management businesses withcritical service suppliers included clauses for minimum requirements in relation to safety, environmental and social standards.

We employed a greater proportion of suppliers with ISO 14001 certified Environmental Management Systems and we increased our highproportion of spend on locally-based suppliers. On new projects, supporting local suppliers can have considerable benefits for the localeconomy. For example, we estimated that €6 million was invested in the regional economy through the use of regional service providersand resources for the construction of LeiriaShopping in Portugal, which was completed in 2010.


We aim to treat our suppliers fairly, and we monitor the number of days within which our suppliers’ invoices are paid. In 2011, suppliers’invoices were paid within an average time of 50 days31.

Proportion of supplierswith ISO 14001certification (%)

2011 38

2010 27

2009 17

2008 58

Data Qualifying note:This indicator includes all Sonae Sierra suppliers with a totaltransaction value superior to €50,000 (n= 369 in 2011) withthe exception of Brazil, where only suppliers of São Paulooffice were included. The indicator is calculated as the totalnumber of suppliers with ISO 14001 certification (n= 61)divided by the total number of applicable suppliers whoresponded to this question (n= 160).

Policy, practices, andproportion of spendingon locally-based suppliersat significant locationsof operation (€ million)

2011 1,012 / 42

2010 970 / 62

2009 1,382 / 76

Value of spend (€) on national suppliers

Value of spend (€) on international suppliers

Data Qualifying note:This indicator includes the suppliers of our PropertyManagement and Development businesses, as well ascorporate services suppliers.

on neW projectS, SupportInglocal SupplIerS can haveconSIderable benefItS forthe local economy. forexample, We eStImated that€6 mIllIon WaS InveSted In theregIonal economy throughthe uSe of regIonal ServIceprovIderS and reSourceSfor the conStructIon ofleIrIaShoppIng In portugal,WhIch WaS completed In 2010.

31 The suppliers’ invoice payment time is determined as the time between the invoice date and date of payment, weighted by the number of invoices.


Suppliers 72

Tenants 78


Employees 91


Suppliers continued


EngAgEMEnt WitH SuPPliErS At lE tErrAzzEBringS PoSitivE rESultS

In January 2010, we began construction at Le Terrazze in Italy. With 38,600m2

of Gross Lettable Area (GLA), 80% of which is already let, Le Terrazze will bethe biggest shopping centre in La Spezia province.

Since the beginning of the construction works, we have been implementing ourSHEMS on site to reduce risks for workers and the community, and lower ourimpact on the environment. We have faced several difficulties: on a practicalside, the relatively small size of the site made it difficult to store somematerials or install some equipment needed to implement the good practicesprescribed by the SHEMS, and the characteristics of the site made it prone toflooding. We also had to challenge the conventional habits and attitudes of oursuppliers, presenting SHE practices which were new to them.

We worked hard to solve these challenges, rationalising the available space,implementing water run-off improvements and continuously engaging with oursuppliers and assessing their SHE performance. We delivered extensive trainingevery month, totalling 1,876 man hours since 2010, to ensure that all new staffwere appropriately informed about different SHE aspects.

We tracked the water and energy consumption and waste productionassociated with the construction activities and dedicated considerable effort tominimise the amount of waste sent to landfill. For example, the soil removedfrom the construction site was used for nearby areas’ construction works andwaste separation was improved thanks to clearer instructions on wastecompactors. We installed a rainwater collection system to spray roads for dustprevention and reused water to wash trucks.

We adopted a series of measures to minimise safety risks and hazards andcarried out observation exercises every month to establish and report onpotential non-conformities with our SHEMS. We kept a record of every incidentand near-miss, and although we recorded six staff accidents, auditors established that they were circumstantial and did not reflectthe quality of our SHEMS. Our external project manager, Jacobs, also held regular SHE meetings with managers of all constructionsuppliers working on site.

After inspecting the construction site in July 2011, auditors from Lloyds Register Quality Assurance recommended Le Terrazze forISO 14001 and OHSAS 18001 certification, and Le Terrazze became the first construction site in the world to simultaneously obtainthis double certification.

“I think that le terrazze’s Safety, health and environment management System (certified according the ISo 14001 andohSaS 18001 norms) is very robust and well-structured. the starting point was the corporate Sonae Sierra managementsystem that was enriched with the jacobs She programme. the final result was very positive and effective. the commitmentto continuous improvement is evident; by december 2011 we had registered more than 2,300 S&h observations from allpeople involved! the involvement of contractors is always crucial, and we reinforced this throughout the construction phaseby organising four She leadership meetings with them. to further strengthen the involvement of workers, we put in place arecognition programme with coupons for workers who followed the She procedures and best practices – with excellent results.”

Maria Elena gasperini, Quality Manager, Jacobs Italia

Embedding our sustainable supply chain procedures (continued)


Suppliers 72

Tenants 78


Employees 91


Suppliers continued

Assessing our suppliers’ cr performance

We assessed the CR performance of development suppliers with whom we had large contracts in place (over €2 million) by distributingquestionnaires to collect information on our suppliers’ policies and practices regarding a range of CR issues including ethics; anti-corruption;human rights; environmental compliance; equal opportunities; safety and health and community investment. Each supplier was allocateda score according to the results achieved and this was communicated back to the supplier. Of the 21 suppliers surveyed, 29% obtained an‘A’ rating (equivalent to a score above 75%) and 71% obtained a ‘B’ rating (equivalent to a score above 50%). Through this process, wehope to raise awareness on CR and establish scrutiny on our suppliers’ practices, encouraging them to perform better when possible.

For our critical property management suppliers, we introduced a CR audit procedure which involved creating a check list of CR issues toassess suppliers’ knowledge about our shopping centres’ SHE procedures and the conditions of their equipment. The audits were carriedout across all our owned operational shopping centres. The results revealed that:

• All main service suppliers demonstrated good team work, organisation and timekeeping.

• Among our waste management and cleaning suppliers, knowledge of Sonae Sierra’s fire, accident and evacuation procedures could beimproved. Some non-conformances were also detected in some countries regarding the use of protective clothing and the delivery oftraining and medical check-ups for staff.

• Among our maintenance suppliers, the use of protective equipment and clothing required improvement. Non-conformances were alsodetected regarding employees’ knowledge of working permit procedures and the delivery of training and medical check-ups to staff.

• Our security suppliers demonstrated good knowledge of shopping centre safety procedures and high levels of conformance with theuse of the correct uniform. The percentage of security staff with both first-aid and defibrillators certificates could be improved.

In early 2012 we will develop an action plan to follow-up on these results with a strong focus on addressing non-conformances. We willthen perform another round of CR audits for all critical property management suppliers across all our shopping centres.

integrating sustainable materials into completed projects

On the Shopping Metrópole expansion project in Brazil and in the CascaiShopping refurbishment in Portugal we implemented severalmeasures to reduce the environmental impacts of the materials used during the development process. For example:

• 26% of materials used (by value of spend) on the Shopping Metrópole expansion contained recycled content.

• 100% of timber products purchased (by value of spend) on the CascaiShopping refurbishment in Portugal had a PEFC™ or FSC®certificate.

• Both projects sourced an average of 80% (by weight) of heavy materials (e.g., concrete, steel and ceramic bricks/tiles) and an averageof 71% (by value of spend) of light materials (e.g., thermal and acoustic insulations, and paints) within the same region of the project’slocation.



Suppliers 72

Tenants 78


Employees 91


Suppliers continued

investigating alternative materials for use in future developments

It can be challenging to find the most sustainable alternatives for many products used in our construction and refurbishment activitiesbecause the ‘sustainability’ of these products depends on a number of factors, including: the raw materials used in the product; theenvironmental and ethical impacts associated with the raw materials’ extraction; the distance that the product and its variouscomponents have travelled; the eco-efficiency of the processes used to manufacture the product and its potential to be recycled orreused after the end of its life.

For this reason, in 2011 we undertook three initiatives to identify and evaluate different sustainability aspects of a number of materialsand products used in our development activities.

First of all, we used the methodology produced by The Department of Resources Recycling and Recovery of California (CalRecycle) toidentify the eco-efficiency of different types of materials which can be used for each key building element, with attention to factorslisted on page 72. This enabled us to create a sustainable materials checklist, using colour codes to grade different types of materialsaccording to how eco-efficient they are.

The table below shows some examples of the ‘gold’ (most sustainable) and ‘silver’ (second best) materials which are included in the fullchecklist32. In future, we intend to set targets for the use of ‘Gold’ and ‘Silver’ materials.


Secondly, we carried out a preliminary study to evaluate the viability of developing a standard specification which could be incorporatedinto all contracts on all development projects in order to ensure that materials come from reliable sources in respect of child labour andworking conditions. Among the materials we identified for appraisal were light fittings; sanitary fixtures; furniture; pipework; ductwork andcabling; solar panels; air-conditioning equipment and any other equipment manufactured in Asia (except Japan) and Africa. We developeda questionnaire for our suppliers to establish whether any of these materials procured on our behalf came from regions with child labourrisks and began liaising with suppliers to obtain answers from them at the start of 2012.

Our third initiative involved a pilot project at Boulevard Londrina Shopping, a new shopping centre project which is under development inthe Paraná State in Brazil. We assessed the recycled content of a number of materials used during this project’s construction phase. Thestudy showed, for example, that whilst the recycled content of cement blocks was only 2% and the recycled content of the cement usedfor the building’s foundations was 14%; the recycled content of the steel bars used was between 60 and 70%. We will use the methodologydeveloped for this pilot project to assess the recycled content of key materials used on future development projects. The findings canalso help us to identify which materials we might prioritise for seeking more sustainable alternatives.

Building element ‘Gold’ materials ‘Silver’ materials

Façades • Ceramics with recycled content • Zinc metal sheets instead of steel or aluminium(e.g., incorporating recycled glass)

• Concrete panels from a certifiedsustainable manufacturer

Flooring • Organic floor e.g. bamboo; cork; certified timber • Natural local stone• Recycled rubber• Recycled ceramic or ceramic containing

recycled material

Foundations and structures • In-situ concrete with recycled aggregate • Pre-cast and pre-stressed concrete(crushed structures) • Certified recycled steel

• Cement with green certificate e.g. Ecooperandoby Cemex

• Timber from certified sustainable sources

Insulation materials • Insulation comprising organic materials • Insulation comprising naturally occurring minerale.g. sheep’s organic wool; wood fibre; cellulose e.g. glass mineral wool

Paint • Thermo insulated paint• VOC-free paint • Eco-labelled paints

32 Besides covering a wider range of building elements than those highlighted here, our checklist also includes ‘black-list’ materials, such as materials containing asbestos; artificialmineral fibres; lead; ozone depleting substances; silica; sea-dredged aggregates; Volatile Organic Compounds (VOC); pesticides and timber products derived from non-sustainablymanaged forests. Sonae Sierra prohibits the use of these materials in all development and property management activities.


Suppliers 72

Tenants 78


Employees 91


Suppliers continued

Monitoring our impact in our own offices

In 2011 we monitored our materials use across all our corporate offices and shopping centre offices for the second year running, andidentified the proportion of materials used that were recycled input materials. The table below shows that we reduced our consumptionof materials in comparison with 2010, which was due both to budget reduction measures and the increased reuse of materials such aspaper; archive folders; document dividers and plastic bags. We increased the percentage of materials used that were recycled inputmaterials to 90%, and we also reduced the amount of paper consumed per worker by 15% in comparison with 2010.


Percentage of materialsused in corporate officesand shopping centreoffices that are recycledinput materials (%)

2011 90

2010 85

Materials used by weight or volume in corporate offices andshopping centre offices

Tonnes used Tonnes usedMaterial category in 2011 in 2010

Archive folders 30 68Binder clips 1 1Business cards 1 2Document dividers 2 8Envelopes 23 76Markers 1 2Paper 376 1,406Pencils 0 1Pens 5 13Plastic bags 2 69Post it notes 1 2

total 442 1,648

Data Qualifying note:These indicators include materials consumed in the officesof all shopping centres owned by Sonae Sierra and inoperation for the full reporting year, as well as our eightmain corporate offices. The reported materials areconsidered to be the most relevant in the activity ofSonae Sierra. All materials listed are direct materials; nonon-renewable materials are consumed in Sonae Sierra’soffices. The percentage of recycled input materials used iscalculated by applying the following formula: (total recycledinput materials used/input materials used) x 100.


Suppliers 72

Tenants 78


Employees 91


tenantsA strategy to maintain high levels of tenant satisfaction and engagement

In 2011, we had 8,495 contracts with tenants across both our owned shopping centres and thosemanaged on behalf of third parties. We view our tenants as strategic partners; the financialperformance of our tenants impacts directly on our own business performance through occupancyrates and rental income. It is our objective to deliver a high quality service to tenants and maintainhigh levels of tenant satisfaction, and we have set ourselves the goal of achieving an average tenantsatisfaction level of 4 or above33 in all Sonae Sierra owned shopping centres by 2015. It is also our aimto engage with tenants to help them to improve their safety, health and environment performance.

Our shopping centre management teams work with tenants on a daily basis to ensure that they are treated fairly and in a way toimprove their business potential. Sales audits and individual meetings with tenants are two examples of how we evaluate tenants’performance and work with them to identify solutions to make their businesses grow. We undertake annual tenant satisfaction surveysin all our owned shopping centres, and use the results to develop action plans to address aspects which received low scores andultimately drive continuous improvement in tenant satisfaction levels.

We regularly engage with our tenants on CR issues. We provide training on Safety, Health and Environment (SHE) issues and invitetenants to actively participate in Open SHE Committees. Within the scope of our Safety, Health and Environment Management System(SHEMS), we monitor tenants’ compliance with our SHE requirements for shopping centres by performing inspections on tenant unitsand following-up on any non-conformances detected. We monitor tenants’ employees’ work practices through our SHE PreventiveObservations (SPO), a form of audit carried out in our shopping centres and corporate offices to observe workers, detect any instancesof behaviour that present safety and health risks or environmental impacts and engage with the person(s) involved to make them moreaware of SHE. We also invite tenants to compete for our Best Tenant Awards; the Personæ Award for best practice in S&H and the PlanetSierra Award for best practice in environmental management. Each of these Awards is presented bi-annually, meaning that each yearthere is one competition, focused either on environment or S&H performance.

We help our tenants to improve their financial and CR performance through training and marketing, and our efforts to increase ourshopping centres’ operational efficiency (including reductions in energy, water and waste costs in line with our environmental strategy)help to deliver cost reductions for tenants.


tArgEtS for 2012

• Achieve an average tenant satisfaction level of 3.80 or above in each Sonae Sierra owned shopping centre.

• Achieve an average tenant satisfaction level of 4.25 or above in at least 85% of Sonae Sierra owned shopping centres.

• Achieve a global average occupancy level of at least 95% (measured by GLA), aggregated across all Sonae Sierra ownedshopping centres.

• Organise at least four meetings with tenants on CR issues, in each Sonae Sierra owned shopping centre.

33 Tenant satisfaction is measured on a scale of 1 (‘not satisfied’) to 6 (‘very satisfied’).

It IS our objectIve todelIver a hIgh qualItyServIce to tenantS andmaIntaIn hIgh levelS oftenant SatISfactIon.


Suppliers 72

Tenants 78


Employees 91


Tenants continuedMaintaining high levels of tenant satisfaction

In 2011 we increased the global occupancy rate of our owned shopping centres to 96.7% (see table on page 36), and maintained theaverage level of tenant satisfaction at 4.6. An occupancy rate of over 95% was achieved at 36 out of 49 of our centres. We narrowlymissed our targets for all shopping centres to achieve an average tenant satisfaction rate of 3.75 or above (98% of shopping centresachieved it) and for 85% of shopping centres to achieve an average tenant satisfaction rate of 4.25 or above (84% of our shoppingcentres achieved it). These results are nonetheless impressive taking into account the difficult economic environment in most countrieswhere we operate, and have been achieved by working together with tenants, shopping centre owners and visitors to improve the valueproposition of our centres and differentiate them from competition.


Global TenantSatisfaction Index

2011 4.6

2010 4.6

2009 4.6

2008 4.2

2007 4.0

Data Qualifying Note:This indicator includes all shopping centres owned bySonae Sierra and in operation for at least six months ason 31 December 2011. Sonae Sierra’s tenant satisfactionindex is derived from tenants’ response to two questions:(1) Relationship with the Sierra Management Team, and(2) Degree of satisfaction with Sonae Sierra. For bothquestions, tenants can answer on a scale of 1 (‘not satisfied’)to 6 (‘very satisfied’) or 9 (‘no opinion’).

IN 2011 WE INCREASED THEGLOBAL OCCUPANCY RATE OFOUR OWNED SHOPPING CENTRESTO 96.7%, AND MAINTAINED THEAVERAGE LEVEL OF TENANTSATISFACTION AT 4.6.


Data on our tenant satisfaction index by country is available in our Country CR Summary Reports at:http://www.sonaesierra.com/en-gb/corporateresponsibility/reportsandfeedback/reports/2011reports.aspx

Further reference:

"We have every confidence that Sonae Sierra can provide high quality services and deliver fast and solid results, duringa challenging time for the Romanian retail market."

Peter Kotsikis, Pradera Head of Greece and Romania.

We also received positive feedback from some of our property management services clients for whom we manage shopping centres.

Sonae Sierra manages the Militari Carrefour Gallery in Romania on behalf of Pradera Real Estate.




Suppliers 72

Tenants 78


Employees 91


tenants continued

Energy efficiency initiatives help tenant to reduce their costs

In the context of the tough retail conditions in many of the markets where we operate and in particular in Portugal, Spain and Greece,we also challenged our shopping centre teams to identify cost reduction opportunities. Bearing in mind that energy is one of the maincost items in the service charge, we performed energy audits with tenants in each country in order to identify best practices that canbe shared with all tenants in 2012. At River Plaza Mall in Romania, for example, we identified a series of actions with our largest energy-consuming tenants to save energy and costs, some of which were commenced in 2011 and others which will be put in place in 2012.These included:

• Installation of movement sensors for lighting control in tenant unit areas that are used only by personnel.

• Optimisation of the HVAC equipment controlled by tenant units.

• Replacement of incandescent lamps with fluorescent ones that consume less power.

• Improving the preventive maintenance plan for electrical equipment in tenant units.

Investments in equipment to reduce energy and water consumption which were approved and implemented at various shopping centresalso enabled us to pass on cost savings to tenants.


rEDucing coStS for tEnAntS WitH An EnErgy SAvingSolution At gli orSi

A common challenge in the property industry is that buildings which are designed tomeet high standards of eco-efficiency do not always perform well in practice, andthis is often a result of the building not being used in an efficient way by its occupiers.

Gli Orsi in Italy was developed by Sonae Sierra and inaugurated in 2008. Althoughthe shopping centre was developed in accordance with our environmentalstandards, its electricity consumption in operation has been relatively high;in 2010 Gli Orsi consumed an average 601kWh per m2 of mall and toilet areacompared to a portfolio average of 514kWh during the same time period.

Gli Orsi shopping centre consists of four main buildings. We identified that the highdemand for electricity was specifically connected with building A, which had atotal annual consumption of 3,501,000kWh, accounting for 67% of the shoppingcentre’s total electricity consumption. Within this building, there was a chocolatestore which required high levels of cooling.

Having identified the reason for the particularly high electricity consumption in this building, we engaged with the tenant to seeka solution which would enable us to improve the shopping centre’s environmental performance and at the same time allow us toreduce service charge costs. We found that the best approach was to install a small dedicated cooling system in the chocolate storewhich would avoid the need to keep the main chillers running to meet this one shop unit’s cooling needs.

This initiative resulted in considerable benefits: on a like-for-like basis, we reduced the total electricity consumption of building Aby 31% in comparison with 2010 during the winter months, enabling the shopping centre to save 536,000kWh of electricity andavoid costs of €64,000 on its energy bill. Moreover, Gli Orsi was able make a saving of around €180,000 on its service charge, mainlyas a result of reductions in energy consumption achieved, and this saving will be passed back to tenants through a credit note in 2012.


Suppliers 72

Tenants 78


Employees 91


tenants continued

understanding our tenants’ attitudes and expectations around cr

In 2011, we included some new CR questions in our Tenants’ Survey which iscompleted by tenants in each Sonae Sierra shopping centre. The results of thesurvey revealed that:

• 26% of our tenants agreed that a shopping centre’s commitment toenvironmental and social responsibility was an important factor that theircompany considers when making decisions to lease new space. Agreement withthis statement was highest in Greece (38.5%) and lowest in Germany (6.4%).

• 68% agreed that a shopping centre’s commitment to environmental and socialresponsibility was an important factor that contributed to their overallsatisfaction with the shopping centre, but only 30% agreed that this was animportant factor that contributed to their overall satisfaction with Sonae Sierraas a landlord.

Increasing energy efficiency and reducing GHG emissions are the most important environmental issues for our tenants. Most tenantsagreed that Sonae Sierra is meeting their expectations concerning environmental responsibility; in particular with regards to wasterecycling and minimising water consumption. The survey identified that Sonae Sierra could perhaps do more in terms of working jointlywith tenants to improve environmental performance and reduce costs and to help tenants to promote environmentally-friendlyproducts. With regards to social issues, providing good customer care for visitors is seen as being the most important social responsibilityissue. 58% of tenants believe that Sonae Sierra is meeting their expectations on this issue, but 19% identify room for improvement.Sonae Sierra is seen as being proactive in relation to S&H, but tenants appear to be less aware of Sonae Sierra’s efforts to engage withand support local communities.

With regards to tenants’ own CR behaviour:

• 47% measure and monitor their environmental impact.

• Energy saving, water saving and waste recycling are the most common ways in which tenants practice environmental responsibility;but only 30% use sustainable modes of transport.

• 58% tenants participate in SHE training organised by the shopping centre.

• 39% say that they promote eco-friendly products and/or inform customers about eco-friendly consumption choices.

• Active accident prevention is practiced by 80% of tenants.

All in all, these results highlight the growing importance of CR issues for our tenants, and the further potential for us to collaborate withtenants to improve the CR performance of our shopping centres as a whole.


26% of our tenantSagreed that a ShoppIngcentre’S commItment toenvIronmental and SocIalreSponSIbIlIty WaS anImportant factor thattheIr company conSIderSWhen makIng decISIonS toleaSe neW Space.

PORTUGAL• RR Center – CascaiShopping• Elena Miró – NorteShopping• Continente – AlgarveShopping

SPAIN• Pepe Jeans – GranCasa• Joyería Montañesa – Luz del Tajo

ITALY• Primigi – Gli Orsi• Progetto Vista – Airone

GERMANY• C&A • Reformhaus Escher (both in Loop5)

GREECE• Media Markt • EXE (both in Pantheon Plaza)

ROMANIA• McDonald’s• Pizza Star (both in River Plaza Mall)

BRAZIL• Magazine Luiza• Roasted Potato (both in Shopping Penha)


Suppliers 72

Tenants 78


Employees 91


Tenants continuedChallenging tenants to follow safety best practices and reduce energy consumption

In 2011, we continued to engage with tenants on CR issues. We held the fourth edition of the PersonæTenant Award for Safety and Health, which distinguishes tenants who demonstrate an outstandingcommitment to S&H. In 2011, over 80 tenants competed for the Award, and 15 winners were selected.They were:


We also worked with three tenants in each country to identify best practices in energy saving that can be shared with all tenants in 2012as part of our strategy to reduce tenants’ costs. Further information about this project can be found on page 80. We held a total of 502meetings with tenants on CR issues across all our owned shopping centre and engaged with tenants through SHE training.

We believe that tenants are increasingly seeing the value of CR initiatives, particularly as we have been able to achieve significantimprovements in energy efficiency and waste management which benefit our tenants indirectly through reductions in service chargecosts. In 2012, we will aim to continue to work with tenants to identify opportunities to reduce energy consumption.

“CR and SHE meetings organised by Dos Mares shopping centre are always interesting, and I participate in all of them. In ourview, Sonae Sierra’s CR initiatives are aligned with McDonald’s policy. I believe it is vital to develop a workplace policy thatrespects people and the environment around us.”

Francisco José Paredes, McDonald’s Restaurant Manager, Dos Mares, Spain


Suppliers 72

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Employees 91


communities and visitorsour commitment to community members and shopping centre visitors

Sonae Sierra is committed to providing attractive shopping centres that servethe needs of the local population. We seek to generate local economic benefitsby creating local employment, inviting local businesses to rent space in ourshopping centres and investing in initiatives that improve the well-being of localpeople. As well as benefiting the community, this strategy can also help usenhance our reputation and increase visitor numbers.

We develop projects in compelling locations, creating shopping centres with along-term market perspective which offer leisure and entertainment and a broad,innovative tenant mix. We create convenient and efficient layouts to offer visitorsan experience that fits with the local setting by generating strong, meaningful linkswith community values. Many of our shopping centre projects involve considerableimprovements to the urban infrastructures that surround the site. These improvementsare always part of the base project and in some cases, are also part of protocols with localauthorities. Through our Community Advisory Panels (CAPs) programme, we integratecommunity consultation and engagement into the development and operation of each ofour shopping centres and seek to build on-going relationships with local communities that willfacilitate environmental, social and economic improvements in the areas in which we operate. We aim toachieve full implementation of the CAPs across our whole development and operational portfolio by 2014.

We recognise that by minimising adverse environmental impacts generated by our activities we can increase local communities’ supportfor our shopping centre projects. To this end, we promote sustainable transport and uphold eco-efficient management practices withinthe scope of our Safety, Health and Environmental Management System (SHEMS) that reduce waste production, water and energyconsumption. In Portugal and Spain we also implement procedures to improve accessibility, with reference to the UNE 170001-2:2001standard. We acknowledge that the creation of new shopping centres can also have an adverse impact on local businesses and tomitigate this impact, we offer local retailers high quality accommodation in our centres. In 2011, 33% of the shops within our shoppingcentres were occupied by local retailers (i.e. businesses based in the local catchment area of each centre). We also offer an alternativeretail format, Shop Spots, which is ideal for new entrepreneurs and small businesses to market their products in a prime location in ourstores at a competitive cost.

During the operations phase, besides ensuring that the tenant mix, facilities and events offered by the shopping centre are suited tovisitors’ needs and interests, we undertake to play a proactive role in raising visitors’ awareness of CR concerns, promoting a largenumber of events and campaigns with environmental and social themes. We also support charitable initiatives to promote communitymembers’ well-being. We have set ourselves medium-term goals to devise and implement a long-term strategy to improve communities’well-being and to enhance visitors’ recognition of our shopping centres’ sustainability performance.


We Seek to generate localeconomIc benefItS bycreatIng local employment,InvItIng local buSIneSSeS torent Space In our ShoppIngcentreS and InveStIng InInItIatIveS that Improve theWell-beIng of local people.

tArgEt for 2012

• Invest a proportion of the total marketing budget of every operational shopping centre and project under development incommunity-related initiatives (at least 3% for sites in Europe and 1% for sites in Brazil).


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communities and visitors continued

investing in local communities

In 2011, a total of €1,483,638 was invested in local community initiatives. This included:

• €1,148,581 in investments in charitable causes and specific activities, events and campaigns with social responsibility themes, madethrough our shopping centres’ marketing budgets.

• €132,078 in shopping centre-level community investment in cash, including donations of €83,974 collected from shopping centres’visitors on behalf of charitable causes.

• €126,398 in corporate donations to charitable causes and sponsorships.

• €65,064 in shopping centre-level sponsorships.

• €11,517 in investments in charitable causes and specific activities, events and campaigns with social responsibility themes, madethrough the marketing budgets of our projects under development.

We also collected 12,524 kg of food contributions, 9,622 litres of milk and 32,439 other items such as clothing and books34.


Across our operational shopping centres, we achieved our target to invest a minimum percentage of our shopping centres’ marketingbudget in community-related initiatives (3% in Europe and 1% in Brazil); in fact, our shopping centres invested an average of 4% of theirmarketing budget in community initiatives (aggregated across the operational portfolio). However, whilst our two development projectsin Europe invested an average 11% of their marketing budget in community initiatives, none of our three projects under development inBrazil achieved the target.

In total, we supported 766 charitable organisations35 with a wide range of causes and implemented 684 actions, events and campaignswith a social or environmental theme, representing 42% of the total actions, events and campaigns held in our shopping centres. Acrossall shopping centres in Europe, we launched a campaign using digital media and indoor advertising to inform visitors about Sonae Sierra’scommitment to CR and our achievements to date. The campaign used consumer-friendly language to present key messages aroundperformance in terms of water and electricity efficiency, waste recycling and GHG emissions reduction.

In Portugal, one of our more significant campaigns involved joining forces with Acreditar, an association for the parents and friends ofchildren with cancer. Called “Música por uma Ca(u)sa” (Music for a Cause, for a Home), the campaign involved the use of music to raisefunds for the construction of an Acreditar home in Porto to host around 220 families of children with cancer from the northern regionof the country, during the periods of out-patient treatment at the Portuguese Institute of Oncology and the S. João Hospital in Porto.Sonae Sierra raised a total of €40,608 for the campaign and, due to the high profile it received, was able to motivate other companies,including some of our tenants, to offer support in the form of in-kind and monetary donations and partnerships for fundraising campaigns.

Global marketinginvestments in CR andother communitycontributions (€ million)

2011 1.484

2010 1.219

2009 1.143

2008 2.380

Data Qualifying note:This indicator includes Sonae Sierra’s corporate businesses;all shopping centres owned by Sonae Sierra and inoperation for the full reporting year; all projects underdevelopment during the reporting year, and all Sonae Sierradirect employees and shopping centres’ visitors. Thecurrency rate used to convert Reais into Euros was 0.43061and RON into Euros was 0.23618.

Data on our marketing investments in CR and other communitycontributions by country is available in our Country CR Summary Report at:http://www.sonaesierra.com/en-gb/corporateresponsibility/reportsandfeedback/reports/2011reports.aspx

Further reference:

34 All 12,524kg of food were donated by shopping centre visitors. 9,088 litres of milk were donated by Sonae Sierra employees and 534 litres were donated by shopping centrevisitors. 4,800 other items were donated by Sonae Sierra employees, and 27,639 were donated by shopping centre visitors.

35 This figure corresponds to the sum of charitable organisations supported, as reported by our shopping centres. In cases where two (or more) shopping centres have supported thesame charitable organisation, this has been counted twice (or more times), in order to reflect each individual shopping centre’s commitment.



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investing in local communities (continued)

In Brazil, our shopping centres held a wide range of social and environmental campaigns and activities, ranging from collection pointsfor visitors to donate clothes and blankets for families in need at Pátio Brasil Shopping and Franca Shopping to an eco-fashion showat Manauara Shopping. All our Brazilian shopping centres held sales campaigns with an environmental theme (see page 90 for furtherdetails). In Spain, La Farga was awarded the Humana Foundation’s Textile Recycling Prize in the ‘Private Enterprise’ category for havingcollected the largest amount of clothing for charitable causes.


our on-going coMMitMEnt to invESting inEDucAtion BEnEfitS ovEr 70 StuDEntS in BrAzil

Investment in education is recognised as an important factor in the reductionof social problems. It increases the opportunities that citizens have to enterthe labour market, broadens their perspectives and strengthens both personaland professional values.

Two of our shopping centres in Brazil have implemented a pioneering programmethat offers free classes to the public and the possibility for students to completetheir high school graduation. The idea was developed by Shopping Metrópole whichhad identified the need to empower employees and service providers who had the potential and willingness to learn, but wereunable to complete their studies owing to financial limitations, a lack of family support or their working hours. In 2006, MetrópoleEduca was launched. Based on this model, Shopping Penha set up the ‘Penha Educa’ programme in December 2008. Access to theprogramme was extended to local residents after a survey conducted by the centre indicated that there was also an interest anddemand for this type of scheme in the community. Since its implementation, Shopping Penha has invested more than R$175,000(€75,360) in the programme. This covers classroom infrastructure; furniture; audio-visual resources; the periodic purchase ofeducational materials such as books and school supplies; the contract with the department for industrial social services (SESI) forthe payment of qualified teachers; an academic advisor and the organisation of graduation and publicity. The approximate annualinvestment is R$56,000 (€24,110).

Both Shopping Metrópole and Shopping Penha point to the testimonials of its students as evidence of the success of the project.Many of them have stated that they feel more prepared for the labour market, have greater self-esteem and are highly motivatedto continue; with a good number of students staying on to complete the second level of studies. This year the Metrópole Educaprogramme enrolled an initial class of 18 students and a second group of 15 students are preparing for graduation. Currently thereare 38 students enrolled in the Penha Educa programme.

“I am very satisfied with the course. I am a bus driver and work at dawn, so I couldn’t enrol in classes, but now thisopportunity has given me motivation and made it possible. as soon as I finish high school I intend to do a technical course,so the sacrifice is worth it."

Mario Azevedo Euripedes, Penha Educa Student

“I am a carer for two elderly people who I also live with. my dream was always to go to college and to do so I am devoting mytime to the classes. I'm sure I can do it."

Angela Maria dos Santos, Penha Educa Student

“With this opportunity I have been able to overcome challenges and I have learned to speak and express myself better.the classes motivate me to continue learning so that I will have more opportunities.”

Maria de lourdes de Souza, Penha Educa Student

“this project has given me the basis to acquire new knowledge, culture and inclusion in society. thank you for this greatopportunity.”

Antonio de oliveira Sales nicácio, Metrópole Educa Student

In the future, we will investigate the possibility of making partnerships with companies to allow students who have completed theircourse greater potential access to the labour market.


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Employees 91



Dedicating time and resources to good causes through employee volunteering

Besides the impact we have on local communities at the shopping centre level, we aim to contribute to the community at a corporatelevel by mobilising our staff to participate in community volunteering. All Sonae Sierra employees are entitled to take one day’s leaveas a volunteering day, and most use this opportunity to participate in the annual Sonae Sierra Community Day, which is held across allcountries where we operate.


In 2011, our staff dedicated a total of 3,059 hours of time to community volunteering, an 11% increase in comparison with 2010. 2,781 ofthese hours were contributed through the Sonae Sierra Community Day. We invested €36,176 in Community Day activities, benefitting61 institutions and at least 2,640 people who received our support.

Some examples of initiatives undertaken included:

• Afternoon entertainment for elderly people, featuring karaoke, dancing anda social lunch, held by AlgarveShopping and AlbufeiraShopping in Portugal.

• The refurbishment of a children’s centre and participation in activities withchildren at the Santos-o-Velho Parish Association, supported by employeesin the Lisbon office.

• Serving food to homeless people at a nearby day-centre near the Luz del Tajoshopping centre in Spain.

• A day at the Ca’ Dei Fiori Community Home for the Elderly spent by the team at Valecenter in Italy.

• A day at Münster’s animal shelter, where employees from Münster Arkaden in Germany delivered goods and foods and helping staffwith their daily activities.

• A clean-up operation on one of the most popular municipal beaches in Athens by employees of the Athens office.

• A partnership with the Brazilian Association of Alzheimer’s Disease which allowed employees in Brazil to visit nursing homes anddisseminate information about the disease and to conduct workshops for disease prevention.

As well as the specific events which took place as part of the Sonae Sierra Community Day, Sonae Sierra staff contributed to localcommunities through some unique and on-going initiatives. In total, we welcomed 283 school visits to our shopping centres, whichinvolved educating children and young adults about environmental and safety equipment and procedures. At Tivoli Shopping in Brazil,we continued our project with local schools to educate staff and pupils about environmental management practices. We invited severalschools to visit the technical areas of Tivoli Shopping to learn about eco-efficiency and safety practices in the centre and we invited themto participate in a competition to create a model eco-school by implementing similar practices to those they had seen in the shoppingcentre. We supported the winning school, EE Prof. Risoleta Lopes Aranha, to implement their eco-school project within the school grounds.

Number of hours spentby employees in charityorganisations

2011 3,059

2010 2,746

2009 3,001

2008 2,521

Data Qualifying note:These indicators include all Sonae Sierra direct employees as on 31 December 2011. Thenumber of hours spent by employees in charity organisations is the sum of all hours spentby employees who volunteered. The proportion of volunteering day entitlements spent byemployees in charity activities is determined by the following formula: % = total number ofhours spent by employees in charity activities/(total number of volunteer hours available(8)*number of Sonae Sierra direct employees)).

Proportion of volunteeringday entitlements takenup by employees (%)

2011 35

2010 31

2009 33

2008 28


Further reference:

“there is no doubt that we owe our ability to put quality into our institution’s operations to all this support. thank youvery much!! I also want to congratulate the individuals you have in your service. each role was executed with an incrediblespirit of mutual assistance. each person took care to make the best effort they could, demonstrating great positivity andsatisfaction at all times.”

Maria do carmo ribeiro, Director of Santos-o-Velho Parish Association



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community Advisory Panels initiate engagement with the local community

Through our CAP project, we aim to integrate community consultation andengagement into the development and operation process of our shoppingcentres. Over the past five years, we have established CAPs at 29 Sonae Sierrashopping centres and development projects. The CAPs help us to create trustand cooperation between our shopping centres and local communityrepresentatives. At the CAP meetings, which are held two or three times a year,community representatives are invited to raise ideas and concerns and presentpotential projects for collaboration. In 2011 we reinforced the CAP guidance andfacilitated a training and knowledge-sharing session with shopping centres witha CAP. We continued to use the CAPs as a forum to discuss relevant issues withlocal community members, for example:

• At Valle Real in Spain, we discussed the communities’ concerns about poorchild nutrition and the growing rate of child obesity in Spain, and decided toplan an event in collaboration with the Eroski hypermarket, our anchor tenant,to promote good eating habits. On 10 November, we welcomed 25 children fromthe Pedro Velarde School to teach them about having a balanced breakfast and helpingthem learn about nutrition through a videogame.

• At Shopping Plaza Sul in Brazil we received very positive feedback from the CAP members about the refurbishment activitieswhich had taken place in the shopping centre; CAP members agreed that investments in the shopping centre also benefitted thelocal community.

Besides our CAPs, we receive feedback from local communities through our Geo Tracking surveys, media coverage and compliments andcomplaints that are presented to our shopping centres. In 2011, we received 873 cases of press coverage on social and environmentalissues. Of these, only two (less than 1%) were unfavourable. Favourable press coverage focused on our Water Saving Campaign held inshopping centres in Portugal, Spain and Italy; activities undertaken as part of our Community Day; the Planet Sierra Tenant Awards; ourGreen Sales campaign in Brazil and the environmental and safety and health certification achieved at various shopping centres.


through our cap project,We aIm to Integrate communItyconSultatIon and engagementInto the development andoperatIon proceSS of ourShoppIng centreS. over thepaSt fIve yearS, We haveeStablIShed capS at 29 SonaeSIerra ShoppIng centreS anddevelopment projectS.

“cr initiatives such as the community advisory panel were fundamental for us in getting buy-in when we first entered thiscity. the cap and community day activities helped us to develop relationships with the local community and they enableus to find partners for collaboration in new projects on an on-going basis.”

Manauara Shopping Management team


Suppliers 72

Tenants 78


Employees 91



Measuring and enhancing visitor satisfaction

Engaging with visitors in order to understand what drives their behaviour and decisions is fundamental to our shopping centres’ success.We undertake Mall Tracking surveys at our shopping centres every year or two years to help us understand our visitor’s profile, theirbehaviour and requirements. These surveys monitor trends in visitor satisfaction, expectations, loyalty and behaviour, and also askquestions about social and environmental aspects. Shopping centres develop action plans on the basis of the survey results, payingparticular attention to critical success factors affecting visitor numbers and short-term actions necessary to correct any negative results.

In 2011, we increased visitor satisfaction levels in Portugal and Spain and maintained visitor satisfaction levels across Italy, Germany,Greece, Romania and Brazil. We use two different methodologies to monitor visitor satisfaction (each country applies one or the other)and results against both of these are shown in the charts below. Although we use different questions to analyse visitors’ feedback fordifferent types of shopping centres in our portfolio, in particular our centres are recognised for credentials such as:

• Offering the visitor a wide range of stores, services and leisure activities which provide a complete experience (beyond shopping).

• Offering visitors the certainty that they will be able to find what they are looking for.

• Keeping their stores, services and leisure activities up to date.

• Supporting local causes and promoting regional development.

• Offering entertainment for families.

In 2011, we implemented measures to improve visitors’ satisfaction across all shopping centres; in Brazil, this included the expansion ofShopping Campo Limpo; the inauguration of three new food court stores, the revitalisation of the internal landscaping and the constructionof a more secure motorcycle parking lot at Franca Shopping; and the creation of new rest lounges and the refurbishment and expansionof the food court area at Tivoli Shopping (which helped us to achieve a 12% increase in sales in food court shops in 2011).


“I was born in this neighbourhood 45 years ago and Shopping metrópole has always been part of my life, from the timebefore the food court existed and shopping was the main entertainment for young people. now I have brought my childrenhere to see father christmas and it was lovely to see how happy and excited they were. Shopping metrópole will alwaysbe a part of our lives.”

Edilson cirello, Visitor, Shopping Metrópole, Brazil

Visitor satisfaction index– ‘new methodology’(portugal and Spain)

2011 72.8

2010 72.2

2009 70.8

2008 70.9

Data Qualifying note:The ‘new’ visitor satisfaction methodology includes all 30 shopping centres owned and in operationfor the full reporting year in Portugal and Spain. The ‘old’ visitor satisfaction methodologyincludes 16 out of 19 shopping centres owned and in operation for the full reporting year in Italy,Germany, Greece, Romania and Brazil. Shopping Metrópole, Shopping Plaza Sul and ManauaraShopping in Brazil were excluded because data was not available from these centres. The visitorsatisfaction results are based on a sample of 500 interviews which are proportionally stratifiedaccording to shopping centre traffic. The survey takes the form of a personal interview based ona structured questionnaire. The number/type of visitors who receive the interview are selectedthrough systematic counting during one week. The ‘old’ methodology is based on a survey inwhich different factors are rated from 1 to 4 according to the visitors’ assessments. The ‘new’methodology is based on a survey in which different factors are rated from 1 not satisfied to 5very satisfied and between 15 and 20 items are valued. Taking these values we create anindicator in a scale 1 to 100.

Visitor satisfaction index– ‘old methodology’(Italy, germany, greece,romania and brazil)

2011 3.2

2010 3.2

2009 3.3

2008 3.1


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investigating visitors’ attitudes towards ‘green’ and ethical shopping

There is growing evidence that retail consumers are demanding more environmentally-friendly and ethical products and services. In astudy involving over 6,000 shoppers and 11 major retailers, Deloitte found that there is an unfulfilled, latent demand for green productsthat could be realised through increased product development, in-store communication, and product availability36. Even in the context ofthe economic downturn, consumers still care about environmental and social responsibility and more than two consumers out of threeprefer products that involve no child labour and which have no substantial carbon impact. European consumers tend to prefer productsthat are made locally. However, customers are wary of “sustainability” being an excuse for higher prices37. In 2010, Sonae Sierracommissioned a specific study to investigate our shopping centre visitors’ attitudes towards sustainability. We found that our centresattract a high proportion of environmentally conscious shoppers and that significant levels of consumers are purchasing locally producedand ethically sourced products. Most of our visitors also believed and expected that shopping centres should help them to live moresustainable lives.

In 2011, we integrated new sustainability questions into our annual visitor surveys (Mall Tracking) in Europe so that we can continue totrack consumer attitudes towards sustainability and in doing so identify ways in which we can help to meet visitors’ needs whilst at thesame time promoting sustainable consumption choices to a wider market. The results of the survey revealed that:

• 12% of visitors say that a company’s environmental and social track record influences which shopping centre they visit.

• 23% say that a company’s environmental and social track record influences what products they buy.

• A significant proportion of visitors (46%) agree that a company’s environmental and social track record is important, but it is not animportant factor in deciding where they shop or what they buy.

There were some significant differences between countries and between shopping centres within the same country. Overall, Spainappeared to have the most conscious consumers, with 15% saying that a company’s environmental and social track record influenceswhere they shop and only 10% stating that environmental and social responsibility is ‘not important’ with respect to shopping. InGermany environmental and social issues were considered important by almost 60% of consumers, but these factors are not widelytaken into account in purchasing decisions.

When asked which social and environmental issues were most important for them with respect to their visit to the shopping centre, themost common factors cited were:

• Provision of facilities for disabled people and improving accessibility to, in and around the shopping centre.

• Waste management, including recycling.

• The promotion of eco-friendly products.

• Increasing energy efficiency and reducing GHG emissions.

• Preventing S&H risks.

Sonae Sierra’s performance in relation to these issues was rated as being ‘good’ or ‘very good’ (3 to 5 on a scale of 1 to 6).

In Brazil, we commissioned a market research study by Ibope Inteligência which found that 80% of visitors recognise our Brazilianshopping centres as being concerned about environmental issues and/ or are actively involved in the local community. These were seenas positive attributes which added value to the shopping centre.

In 2011 we developed a strategy to deliver a sustainable shopping experience to our visitors, with a particular focus on attracting andretaining environmentally-conscious visitors. Some of the actions we are taking include introducing new brands within our tenant mix,such as organic supermarkets and restaurants and other speciality shops; holding events to promote environmentally-consciousconsumption and raising visitors’ awareness of Sonae Sierra’s commitment to sustainability.


36 Source: Deloitte; Green Shopper Study’ (2009).37 Source: Deloitte, ‘Natal 2011: Indispensável ou supérfluo?’ (Study of Christmas Shopper Habits in 2011).


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investigating visitors’ attitudes towards ‘green’ and ethical shopping (continued)

Within our shopping centres, we already offer a tenant mix which includes services as well as shops, including services which have anenvironmental or social mission. Some activities worth highlighting in Brazil include:

• The Citizen’s Environmental Space (Espaço Cidadania Ambiental) at which occupies a unit at Manauara Shopping and offersworkshops, talks and exhibitions about environmental concerns.

• A course centre was set up during one month at Shopping Penha, offering classes free of charge to give local residents theopportunity to learn a new hobby, craft or technique, which could even lead to an additional income for them.

• At Boavista Shopping, Shopping Penha and Shopping Plaza Sul we have established sports groups which are free of charge for localresidents and are designed to help them improve their health and quality of life.

Both of our sales campaigns in Brazil included actions to raise awareness about environmental responsibility. During the February sales,we distributed Eco bags to visitors and asked them to make a commitment to responsible consumption by reducing waste, recycling andreusing; during the August sales, we held a raffle of 680 bicycles to encourage the use of sustainable modes of transport.

At Münster Arkaden in Germany, we collaborated with members of the shopping centre’s CAP to organise a Fair Trade Week38 for visitorsto promote the fair trade products available in the shopping centre and support the City of Münster as a candidate for Fair Trade City(a city which made a commitment to supporting Fair Trade and using products with the FAIRTRADE Mark). We organised a variedprogramme of activities including:

• An oriental dance and story-telling for children to promote fair trade carpetssold by our tenant Nyhues;

• Fair Trade chocolate tasting courtesy of our supermarket tenant BioMarkt;

• Fair Trade wine tasting at the Restaurant Pablo, and

• The promotion of fair trade books by tenant Thalia.

We received very positive feedback from tenants and visitors about the event.


“I thought the eco bag was a really good idea. now that plastic bags aren’t given out for free any more in the supermarket,we are going to need to use more bags like these. as well as receiving a gift from the shopping centre, I know that I amtaking home something that will help me protect the environment.”

Maristela Domene, Visitor, Parque D. Pedro Shopping

38 Fair Trade is about allowing better prices; decent working conditions; local sustainability, and fair terms of trade for farmers and workers in the developing world. By requiringcompanies to pay sustainable prices (which must never fall lower than the market price), Fair Trade addresses the injustices of conventional trade, which traditionally discriminatesagainst the poorest, weakest producers. It enables them to improve their position and have more control over their lives.


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Employeesour approach to creating a positive and stimulating work environment

In 2007, we launched our first Corporate Climate and Employee Satisfaction Survey (Employee Survey). The results of this surveyhelped us to focus our efforts on key areas where staff satisfaction could be improved, such as work conditions and work-life balance.Over the past years, we have implemented measures to improve performance in these areas, for example by rolling out ergonomicassessments across our corporate and shopping centre offices and introducing new policies to promote better work-life balance, such asour Part Time Working Policy, Working From Home Policy and Flexible Work Schedule Policy. We also promote initiatives to increase staffwell-being, such as ‘Healthy Month’ in Europe and ‘workplace gymnasiums’ in Brazil (which involve a physical exercise routine in theworkplace). Since 2009, we have performed an Employee Survey bi-annually, our most recent survey having been completed in June2011. We have set a long-term objective to offer our employees more flexible work arrangements with the aim of becoming a recognisedleader in this area by 2020. We are also aiming to create the best possible work conditions (including ergonomic conditions) for all ourstaff by 2015.

In 2008, we introduced a formal non-Discrimination and Diversity policy, which states ourcommitment to a meritocracy culture and our objective to become a best practicereference in this aspect of CR. This is reinforced by our Code of Conduct whichoutlines our commitment to creating a workplace where each individual istreated fairly and where we recruit, select, train and remunerate based onmerit, experience and other professional criteria. To further enforce theseprinciples and policies, the Sierra Ombudsman is a formal procedure whichemployees (and other stakeholders) can use to report work relatedissues including breaches in our Code of Conduct.

We nurture our employees’ talents through our professional developmentprogrammes which include training, knowledge sharing, technical support andencouragement. We believe that providing our staff with additional knowledge,confidence and skills has benefits for both the individual and the wider firm. Indeed,many of the awards for excellence that Sonae Sierra has been granted are a testimonyto the talent and skills of our employees. Talent developed and retained by Sonae Sierraenhances our know-how, which boosts Sonae Sierra’s reputation. In turn, our strongreputation contributes substantially to attracting new talent, thus perpetuating the cycle.

It is our objective to encourage our employees to develop their skills and expertise and to foster a culture of innovation. We operate aninnovation office which develops and co-ordinates a range of activities to stimulate innovation across the Company. These include:

• The Explore programme, which is a company-wide on-line platform for all employees to present innovative ideas for businessimprovement. These are analysed by a specific team on a regular basis, and the most promising are discussed by our InnovationSteering Committee.

• Challenges, a programme to identify solutions to key challenges which are identified by Sonae Sierra’s senior management. Eachchallenge is tackled by a group of people during a given time period.

• CLICK (Creative Learning, Innovation and Continuous Knowledge), which is designed to stimulate innovative ideas and unleash ouremployees’ creativity.

• I@Work, a programme focused on day-by-day work, questioning the way we do our work and finding innovative solutions to do it moreefficiently.

We use Key Performance Indicators (KPIs) to measure how individuals are contributing to Sonae Sierra’s business goals. These helpemployees to manage their own performance and ensure that bonuses are paid according to performance achieved at corporate,business unit/ department and individual employee level. These KPIs also cover Safety, Health and Environment (SHE) and innovation.


We belIeve that provIdIngour Staff WIth addItIonalknoWledge, confIdenceand SkIllS haS benefItSfor both the IndIvIdualand the WIder fIrm.

tArgEtS for 2012

• Reinforce the communication of the existing flexible working policies and develop two new flexible working policies.

• Form partnerships with gyms and give conditions for staff to sign up for a gym (applicable to sites with at least 10 employees).

• Through the climate survey results, identify areas of perceived unequal opportunities and promote initiatives to change them.


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Employees continued

our workforce in 2011

As of 31 December 2011, we directly employed 1,090 people and supervised a further 18 peopleemployed by other companies and 17 independent contractors. 1,053 (97%) direct employeeswere permanent employees and 1,080 (99%) worked full-time. Our employees are a vital asset toour Company, and we seek to maintain high levels of staff retention by ensuring that our staff aregiven the best work conditions possible and are rewarded fairly for their contribution to Sonae Sierra.

Click here for further details about the composition of our workforce and staff turnover in 2011.

introducing measures to improve staff satisfaction

We performed our fourth Employee Survey to ascertain levels of staff satisfaction in relation to many different workplace aspects. Theresults of this survey were mixed, but staff satisfaction aggregated across all aspects decreased in comparison with 2009. More specifically,satisfaction with the aspects ‘team work’, ‘overall satisfaction’, ‘line management’ ‘engagement’, ‘work life balance’ and ‘compensation’decreased in comparison with 2009, whilst satisfaction with ‘communication’ increased substantially, and satisfaction with ‘workconditions’, ‘training and development’ and ‘performance management’ increased marginally. ‘Mission and values’ and ‘CorporateResponsibility’ still rank as the aspects which employees are most satisfied with, whilst ‘Work life balance’ and ‘compensation’ are viewedas being the weakest aspects.

The results of our 2011 Employee Survey were presented to our Executive Committee and the Human Resources team is maintaining effortsto improve those aspects which employees have ranked unfavourably. For example, we are reinforcing the internal training programme‘LISTEN’ to improve managers’ ability to give feedback to employees and we are changing our performance review methodology in orderto have a more transparent career development process in place and allow a higher level of information to be available to all employees.


In 2011, we implemented some specific measures to increase satisfaction (and ultimately retention). These included:

• Monitoring the uptake of flexible work arrangements which were introduced in recent years (such as Part-time Working, Working fromHome and Flexible Work Schedule). We found that a small number of employees had adopted flexible work arrangements, constitutingjust over 1% of our direct employees. We therefore decided to reinforce communication on the flexible work arrangements availableand to evaluate other flexible work options which could be offered to complement the existing ones.

• Performing a salary and benefits review, involving comparison with other companies and industry benchmarks and using the findingsto inform our salary revision process for 2012.

• Continuing to improve ergonomic conditions for our staff. The results of our 2011 Employee Survey showed that the proportion ofSonae Sierra staff who are satisfied with their ergonomic set-up has increased by 4% in comparison with 2009.

• Holding the third edition of ‘Healthy Month’ across our offices in Europe, inviting employees to take part in healthy activities such asrelaxation massage; yoga; pilates; shiatsu; reiki; nutrition, dieting and skincare workshops; football; circuit training; gymnastics; cycling;walking; healthy breakfast and healthy lunch. 452 employees took part in a total of 165 ‘Healthy Month’ activities and reportedpositive feedback about the initiative.

Given that ‘lack of career perspectives’ is often cited as a reason that people leave our company, we also began a process to define careersteps and theoretical careers paths within the Sonae Sierra business. This project is on-going and will be communicated to ouremployees during 2012. At the Sonae Group level, we are developing a new Personal Assessment and Career Development process,which will be launched in 2012. This will be supported by two new IT tools which will go live in 2012; one to facilitate the salary revisionprocess and the other to track individual employees’ Key Performance Indicators (KPIs).

Proportion of staff whoagree or strongly agreethat Sonae Sierra is agood company to work for(%)

2011 83.3

2009 84.4

2008 84.3

2007 79.6

Data Qualifying note:These indicators correspond to two of thequestions asked in Sonae Sierra’s EmployeeSurvey which are representative of overallstaff satisfaction and satisfaction with thework environment.

Proportion of staff whoagree or strongly agreethat there is a positiveworking environment atSonae Sierra (%)

2011 76.8

2009 81.9

2008 79.7

2007 82.2

aS of 31 december 2011,We dIrectly employed1,090 people andSupervISed a further18 people employedby other companIeSand 17 IndependentcontractorS.


Suppliers 72

Tenants 78


Employees 91


Employees continued

Maintaining our commitment to equal opportunities

In 2011, we maintained our commitment to non-Discrimination and Diversity. Feedback from our 2011 Employee Survey showed that80% of our employees agree or strongly agree that ‘discrimination on the grounds of race, religion, gender or sexual orientation does notexist at Sonae Sierra (up from 75% in 2007) and 68% believe that ‘there are equal opportunities for women and men in the workplace’(up from 60% in 2007).


Number of disabled employees, per employee category

Disabled peopleMale Female Total

Global Senior Executive,Senior Executive and Executive – – –

Senior Manager 3 – 3

Manager – – –

Team Leader – – –

Project Team Specialist 1 1 2

Team Member – 2 2

total 4 3 7

Ratio of basic salary of womento men by employee category

Ratio of remuneration of womento men by employee category

RemunerationRatio (%)

Global Senior Executive,Senior Executive, Executive 87

Senior Manager 98

Manager 86

Team Leader 87

Project Team Specialist 91

Team Member 130

Number and percentage of employees by gender and age group,per employee category

<35 35-44 45-54 55-64 >64Female Male Female Male Female Male Female Male Female Male

Global Senior Executive,

Senior Executive and Executive – – – 3 3 6 – 8 – 3

Senior Manager 1 – 6 20 5 18 – 10 – –

Manager 2 8 21 37 6 18 1 6 – –

Team Leader 19 20 30 39 9 9 1 4 – 1

Project Team Specialist 39 35 32 36 6 11 – 2 – –

Team Member 209 101 113 98 39 34 6 11 3 1

total 270 164 202 233 68 96 8 41 3 5 1,090

Percentage (%) 24.8% 15.0% 18.5% 21.4% 6.2% 8.8% 0.7% 3.8% 0.3% 0.5% 100%

Data Qualifying note:These indicators include all of Sonae Sierra’s direct employees on 31 December 2011.

Data Qualifying note:These indicators include all of Sonae Sierra’s direct employees on31 December 2011. Both ratios are calculated by dividing the totalremuneration received by men and by women in each employee categoryby the total number of employees in that category. The average femalesalary is then divided by the average male salary in order to generate aratio. The remuneration ratio includes the annual basic salary plus thevariable remuneration received by employees. In the case of Sonae Sierra,variable remuneration represents the bonuses fraction, which is consideredto be most significant (over 90% of the total benefits received by theemployees). The basic salary ratio considers only the annual basic salaryreceived by direct employees. Sonae Sierra demonstrates its commitmentto non-discrimination in recruitment and treatment of staff in the workplaceby monitoring the workforce diversity according to a range of differentcharacteristics. Within our code of conduct, we pledge to treat eachindividual fairly and recruit, select and train and remunerate based on merit,experience and other professional criteria. It is in our interest to ensurethat the human resources, talents and skills available throughout thecommunity are considered when employment opportunities arise, therebyselecting the most suitable person for the job, based on their qualificationsand experience.

Basic SalaryRatio (%)

Global Senior Executive,Senior Executive, Executive 82

Senior Manager 96

Manager 85

Team Leader 87

Project Team Specialist 89

Team Member 126


Data on our investment in staff training and development and average hours of training by employee by country is available in our Country CR Summary Report at:http://www.sonaesierra.com/en-gb/corporateresponsibility/reportsandfeedback/reports/2011reports.aspx

Further reference:


Suppliers 72

Tenants 78


Employees 91


Employees continued

investing in staff training and development

In 2011, we invested €528 per capita in staff training and development.This value is lower in comparison with previous years, and reflects theeconomic constraints on our Company in 2011. To compensate for thisas far as possible, we increased the delivery of internal training to staff,and succeeded in providing employees with an average 48.9 hours oftraining during the course of the year, an increase of 28% in comparisonwith 2010. This meant that we achieved our target to maintain the totalnumber of training hours per employee in comparison with 2010 levels.Examples of training initiatives carried out in 2011 included: ‘LISTEN’(see page 92); ‘HIRE’ which trained line managers on how to deliverrecruitment interviews; foreign languages; first aid; meeting management;stress management and advanced negotiation skills training.

We encourage employees to identify their own training needs and we monitor participant feedback received on all our training sessions.We also include questions on training and development in our Employee Survey. Whilst employees’ assessment of the training opportunitiesoffered by Sonae Sierra has improved over the last five years, this is still an aspect which could be further enhanced. In 2011, we provideda greater level of information to employees on the training and development opportunities available.

In 2011, 100% of our direct employees received regular performance and career development reviews39. We also applied our 360°appraisal tool to all Managers and Team Leaders who manage more than three members of staff.


In 2011, We InveSted €528 per capItaIn Staff traInIng and development.thIS value IS loWer In comparISonWIth prevIouS yearS, and reflectSthe economIc conStraIntS on ourcompany In 2011. to compenSate forthIS aS far aS poSSIble, We IncreaSedthe delIvery of Internal traInIngto Staff, and Succeeded In provIdIngemployeeS WIth an average 48.9 hourSof traInIng durIng the courSe ofthe year, an IncreaSe of 28% IncomparISon WIth 2010.

Investment in stafftraining and development(€ per capita)

2011 528

2010 776

2009 1,195

2008 900

Average hours of trainingper year per employee(number of hours)

2011 48.9

2010 38.1

2009 40.2

2008 38.3

39 This included all Sonae Sierra direct employees on 31 December 2011: 551 female employees (100%) and 539 male employees (100%).

Proportion of training undertaken by type

Number of Proportion of totalType of training hours training hours (%)

Technical 28,880 54%

Behavioural 6,985 13%

Languages 17,488 33%

total 53,353 100%

Data Qualifying note:These indicators include all of Sonae Sierra’s direct employees on 31 December 2011. A breakdown of the average hours of training per year per employee by employee category is provided in theGlobal Reporting Initiative chapter of this report, under LA10, on page 142.




Suppliers 72

Tenants 78


Employees 91


Employees continued

Promoting a culture of innovation

We estimate that the Net Present Value (NPV) of innovation projects already implemented by our Company is €6.9 million. The NPV ofprojects that are in the pipeline is estimated at €91.8 million, totalling €98.7 million in all. In 2011 we continued to promote innovationamong our employees through a range of programmes developed by our Innovation Office, including those described on page 91.

In 2010 we launched 4Sight, a new project to accelerate the identification of future opportunities for Sonae Sierra. From a total of13 strategic initiatives defined, six were concluded in 2011, three are in progress and four are expected to start during the first half 2012.

We concluded nine challenging projects (‘Challenges’) commenced in previous years and proceeded with Challenges concerning BackOffice costs, bureaucracy and the balance between rents and service charges in shopping centres. As a result, we implemented six newmeasures in 2011, and nine are under development.

1,490 ideas were submitted by employees to our Explore Programme, and 32 of these were approved for implementation and/ orimplemented during 2011. A further 21 ideas are under analysis by our team of evaluators. The ideas implemented or scheduled forimplementation included:

• Creation of a portal to centralise information about our service suppliers.

• Development of a retail offer and special shopping centre services to meet the needs of visitors aged 55 and above, particularly as thisage group already represents 35% of the European population and is growing.

• Installation of a device to monitor the temperature of the electrical fryers to avoid fires in shopping centres’ restaurant kitchenscaused by overheated oil.

• Development of a ‘fashion blog’ for fashion-focused shopping centres to inform people about the latest seasonal fashion trends.

• Use of ‘bubble deck’ concrete decks in shopping centre developments instead of conventional concrete solutions. ‘Bubble deck’ ismore flexible, requires less construction time and has lower embodied energy and CO2 emissions.

We launched I@Work, an initiative to promote an innovation culture in our daily activities. This involved a series of internal workshops forall Sonae Sierra teams to address questions such as ‘What do we do that we should not do?’; ‘What don’t we do, but should do?’ and ‘Whatshould we do differently?’. As a result, 43 initiatives were defined for implementation in 2012.

Last but not least, we developed Open Innovation, a programme which engages other external companies to partner with Sonae Sierra´sefforts to solve some of the challenges we have identified. This programme is currently being piloted with a strategic initiative developedcalled “Consumer and Retail Knowledge” and involves engagement with tenants and other relevant external entities. It is expected to beconcluded during 2012.


StiMulAting crEAtivity AnD initiAtivE to BuilD AculturE of innovAtion

Sonae Sierra believes that innovation training can bring real benefit to the business.CLICK (Creative Learning, Innovation and Continuous Knowledge) is a programmedesigned to enhance Sonae Sierra’s innovation capacity. First launched in 2009with a focus on developing creativity, in 2011 we held the second part of theprogramme, CLICK2, to promote an initiative with the strapline “Become thechange you want to see”. It is our view that combining creativity with initiative isthe formula for creating innovation.

The content of the CLICK2 programme was developed by the Innovation Office, in co-operation with Sonae Sierra’s HumanResources Department and sponsored by the CEO and all Executives. It consisted of one day workshops in small groups and wasfacilitated by Sonae Sierra’s own ‘Innovation Champions’, selected staff from all business functions and levels who have beentrained by external consultants to deliver the programme.

CLICK2 received good feedback from employees at all levels of the business, with an 84% participation rate and an averageevaluation of 3.7 on a scale of 1 to 4. It also increased the satisfaction and motivation of the Innovation Champions and allowedthem to work closely with people from other departments to share their knowledge about innovation and help embed aninnovation culture across our organisation.


Suppliers 72

Tenants 78


Employees 91


Safety and Healthour commitment to creating a safety culture across all our sites and activities

With 49 operational shopping centres, five projects under construction and eight maincorporate offices in Europe and Brazil, we are responsible for the safety of millions ofpeople – in particular shopping centre visitors, tenants, service suppliers and our ownemployees – that are present on these sites on a daily basis. Our Safety and Health (S&H)strategy aims to prevent all accidents, thereby protecting every person present on ourpremises. Zero accidents is our ultimate goal and we aim to achieve this through thecreation of a safety-conscious culture across our entire organisation.

In 2008, our S&H Management System was the first in the shopping centre industry to becertified according to OHSAS 18001 standard. In 2011 this system was integrated with theEnvironmental Management System to create the Safety, Health and EnvironmentManagement System (SHEMS) (see pages 24 and 25 for further details). The SHEMScontinues to provide us with the tools necessary to maintain a safety culture embeddedthroughout all our activities, minimising risks and promoting a safer and healthier lifestyleto all the people who visit our shopping centres. To date, 29 of our shopping centres haveobtained OHSAS 18001 certification for their local SHEMS, as have four constructionprojects. Our objective is to obtain OHSAS certification for all our new construction projectsand all assets which we own and have managed for at least two years by 2015.

We strive to continually minimise the occurrence of workplace incidents and occupational diseases, as well as to promote good health andwell-being among our workforce. We do this by implementing our SHEMS and delivering S&H training, workshops, regular SHE meetings,improving workplace ergonomic conditions and infrastructures on our sites.

During the construction phase, we aim to achieve excellent safety standards by defining strict procedures that exceed those which arerequired by law. All new shopping centre development projects must implement a site-specific SHEMS and achieve certification inaccordance with the OHSAS 18001 standard for the entire construction phase. Additionally, a Safety Plan is drawn up for each of ourconstruction sites and compliance with this plan is compulsory for all contractors. Contractors cannot begin any activity without thevalidation of this document by the site’s S&H Coordinator and Sonae Sierra’s prior approval. Each of our development projects has a fulltime S&H Coordinator to validate contractors’ risk assessments and, if necessary, establish additional control measures. The S&HCoordinators and outsourced project management teams carry out permanent S&H supervision and planning on construction works,identifying and correcting unsafe actions wherever necessary. A description of the tools and other practices we use to improveconstruction site safety can be found on pages 99 and 100. In respect to expansions and refurbishments a simplified SHEMS version isalso implemented (see page 25 for further details).

Our Safety, Health and Environment Development Standards (SHEDS) are considered by all design teams during the concept andarchitectural development phase of all our new shopping centres, refurbishment or expansion projects and minor works. The SHEDS aidus in minimising S&H risks from the outset of each shopping centre’s development and into the operations phase. The implementationof the standards is mandatory for all projects with an investment proposal approved after December 2009 and is checked through a finalaudit carried out by a third party. Compliance with local S&H regulations is also confirmed by competent authorities prior to opening aspart of new shopping centres’ licensing procedure.

During the operations phase, all Sonae Sierra shopping centres implement the procedures defined by our corporate SHEMS with the aimof guaranteeing the safety of all building users. We monitor and evaluate S&H performance on a regular basis using tools such as SHEPreventive Observation (SPO), emergency drills and SHE inspections (covering safety-related equipment and installations in tenantunits and technical areas). We hold regular SHE meetings at all shopping centres during which we encourage suggestions, participationand engagement from Sonae Sierra staff and service suppliers. Open SHE committees with tenants covering CR themes are also held atall our shopping centres, during which S&H issues are discussed and tenants are asked to actively participate in shopping centres’ S&Hmanagement. Any issues identified by these procedures are followed-up and corrective actions are taken. We also investigate the causeof all incidents and communicate across the Company the lessons that can be learned to avoid a repeat occurrence. This is done using‘Alerts’, a communication tool that is also used during the construction phase. Furthermore, SHE audits are developed to validate theS&H data reported by all sites and internal audits are developed yearly to follow-up on each site’s implementation of our corporateSHEMS requirements.


Zero accIdentS IS ourultImate goal and WeaIm to achIeve thISthrough the creatIonof a Safety-conScIouSculture acroSS ourentIre organISatIon.


Suppliers 72

Tenants 78


Employees 91


Safety and Health continued

reducing accidents and occupational diseases in the workplace

Our SHEMS includes a cross-cutting procedure aimed at identifying and evaluating S&H hazards and risks to people. This risk analysis ismade for every area in offices, shopping centres in operation and on development projects and it covers Sonae Sierra’s workforce, externalsuppliers, tenants and visitors. We evaluate risks by considering the strength and weaknesses of the control measures in place; thefrequency and probability of the risks’ occurrence and their potential severity. After considering all these issues, we classify risks into fourseparate categories: two that are considered as acceptable and two non-acceptable. Non–acceptable risks identified must be addressedthrough the implementation of additional risk control measures until the risk is classified into one of the two acceptable risk categories.

In 2011, we reduced the rate of work accidents in our workforce42 by 1% in comparison with 2010. We also reduced the severity of workaccidents among our workforce, measured as the number of staff days’ absence due to work accidents and occupational diseases permillion hours worked. There were no fatalities or occupational diseases among our workforce in 2011.


tArgEtS for 2012

• Reduce the number of work accidents (per million hours worked) with workforce absence, in comparison with 201140.

• Reduce the severity of work accidents and occupational diseases with workforce absence, in comparison with 201141.

• Decrease the Lost Workday Case Accidents Frequency Rate (LWCAFR) on construction works by at least 5%, compared with 2011.

• Achieve 100% accomplishment of Safe Practice Index (SPI) hours on construction works at the end of the year.

• Reduce the number of level 3, 4 and 5 accidents in shopping centres, per million visits, in comparison with 2011.

• Reduce the LWCAFR of shopping centres' service suppliers by at least 4% in comparison with 2011.

• Achieve zero fatalities due to accidents within the Sonae Sierra workforce and among stakeholders present across all SonaeSierra sites.

• Achieve OHSAS 18001 certification in an additional three shopping centres in operation and in all construction works of newcentres opening in 2012.

Global rates of injury, occupational diseases, lost work days,absenteeism and number of work-related fatalities

2011 2010

Injury rate 2.37 2.40Occupational disease rate 0.00 0.00Lost day rate 11.84 14.88Absentee rate 0.02 0.03Fatalities 0.00 0.00

Data Qualifying note:This indicator covers the entire Sonae Sierra workforce during 2011 (direct employees andsupervised workers). Regarding independent contractors, there were no injuries; occupationaldiseases; lost days; absentee periods and fatalities to be reported. The formulas used tocalculate the presented rates are:

• Injury rate = (Number of injuries * 1,000,000)/Total time worked

• Occupational disease rate = (Number of occupational diseases * 1,000,000)/Total timeworked

• Lost day rate = (Number of lost days * 1,000,000)/Total time worked

• Absentee rate = Absentee in period (hours)/Total time worked

In 2011, the formulas used to calculate the lost day rate and the total time worked weredifferent from those used in previous years. Data was also reformulated for 2010, taking intoaccount these differences. Workable hours are now calculated on a monthly basis, throughthe multiplication of the workforce by the number of workable days by eight hours per day.At the end, the monthly workable hours are summed up to calculate the total number ofworkable hours in the reporting year. Injuries reported do not include minor injuries (first-aidlevel or medical treatment level). For Sonae Sierra, “days” means “scheduled work days” andthe “lost days” count begins from the immediate working shift (or day) after theaccident/occupational disease occurred.

40 This includes accidents which may occur during travel to and from the workplace. The workforce covers Sonae Sierra’s direct employees and supervised workers. 41 Same comment as above.42 We consider our workforce to be the 1,090 people who we directly employ and the 18 people that are employed by other companies but are supervised by our Company,

as reported in the Employees chapter on page 92.

our commitment to creating a safety culture across all our sites and activities (continued)


Suppliers 72

Tenants 78


Employees 91



We maintained our strong focus on incident prevention and in 2011 we delivered a total of 130,855 man hours of Safety and Health(S&H) training and awareness to our staff, suppliers and tenants combined across all our sites. A total of 1,527 training sessions wereheld, involving 28,370 participants. These sessions included training on:

• Sonae Sierra’s SHEMS procedures;

• Incident reporting and investigation;

• Emergency response procedures;

• The use of the SHE Portal;

• SHE Preventive Observations (SPO);

• Safe Practice Index (SPI) audits; and

• Other specific topics such as fire fighting systems, first aid and construction site safety.

We also performed 216 hours of SPO and an average 2.1 emergency practice drills across our main corporate offices (for more details onemergency drills, see the Embedding our S&H management procedures sub-section on page 103). We achieved 85% accomplishmentof our corporate target relating to the number of SPOs; Regular SHE Meetings; Emergency Practice Drills and Incident Investigation incorporate offices, as shown by our “SHE Global Achievement” indicator below.


The World Day for Safety and Health at Work (28 April) is the occasion for all workers to remember the victims of occupational accidentsor diseases, and for Sonae Sierra, an opportunity to reinforce the importance of preserving the safety and health of all. We celebrated thisday in our shopping centres, delivering training on S&H; organising appointments for our employees with an Occupational Health Doctor,and offering medical screening. We also raised awareness among tenants and service suppliers about work accidents. We specificallyurged staff to ‘Expect the Unexpected’ on their way to and from their workplace, as we have identified that half of the accidents involvingmembers of the Sonae Sierra workforce in the last two years have happened during their journey to or from work.

Because day-to-day work activities can lead to stress in some individuals, and high levels of continuous stress have a negative impact onhealth, we are committed to helping employees that might be suffering from it. We organised a training programme called ‘Personal andProfessional Stress Management’, and held three training sessions open to all of our employees between December 2010 and May 2011,and three other sessions from May to September 2011 dedicated to the Accounting Department. In total, over 50 employees were trained.

Total number of man hoursof Safety and Healthtraining and awarenessprovided across all SonaeSierra sites (number of hours)

2011 130,855

2010 145,407

2009 20,307

2008 13,467

Data Qualifying Note:The S&H training and awareness indicatorincludes all shopping centres owned bySonae Sierra and in operation for the fullreporting year; all shopping centres managedbut not owned by Sonae Sierra during thereporting year; all projects under developmentand Sonae Sierra’s eight main corporateoffices. It includes hours spent in SHEmeetings.

The “SHE Global Achievement” includes alleight main corporate offices and comprisesthe average of the following four elements:(1) The percentage of SHE meetingsprovided during reporting period, in relationto the target set; (2) The percentage ofhours of SPOs undertaken during thereporting period in relation to the target set;(3) The percentage of emergency practicedrills undertaken during the reporting period inrelation to the target set; (4) The percentageof incidents investigated during the reportingperiod in relation to the number of incidentsthat must be investigated.

“SHE Global Achievement” (corporate offices)

SHE Global Achievement components 2011 2010 2009 2008

SHE Meetings 119% 101% 106% 59%

SPOs 123% 142% 134% 90%

Drills 100% 100% 119% 113%

Incident Investigation 0% 100% n.a. n.a.

Historical data for S&H training and awareness from earlier years is available on our corporate website at:http://www.sonaesierra.com/en-gb/corporateresponsibility/ourprogress.aspx

Data on S&H training and awareness by country is available in our Country CR Summary Report at:http://www.sonaesierra.com/en-gb/corporateresponsibility/reportsandfeedback/reports/2011reports.aspx

Further reference:

Reducing accidents and occupational diseases in the workplace (continued)




Suppliers 72

Tenants 78


Employees 91



In 2011 we continued to promote good ergonomic conditions for our workforce. We held a meeting in every office on musculoskeletaldisorders which can be triggered by office work and on how best to handle manual loads. We also carried out an ergonomic assessment inall corporate and shopping centre offices where this had not been done in 2010, and, at offices which had carried out assessments in2010, we implemented 34% of corrective actions required.

We also promoted ‘Healthy Month’ for the third consecutive year to encourage our employees to adopt healthy lifestyles and give themopportunities to practice sports and relaxation techniques which they might not normally have time to do (see page 92 in the Employeeschapter for further details).

In Italy, our proactive approach to S&H management and in particular our attainment of OHSAS 18001 certification for our SHEMS enabledus to obtain a reduction of around €3,791 in insurance costs from the National Institute for Insurance Against Accidents at Work (INAIL)43.

Promoting safety on construction sites

We use specific tools such as the SPI to assess and continuously improve construction site safety conditions and workers’ actions. TheSPI is an auditing tool that is used to assess the probability of accidents occurring on construction site works through observations madeby the Sonae Sierra Development Site Manager, the outsourced project management team, the Site S&H Coordinator and majorcontractor representatives. The SPI measures the level of adherence to Sonae Sierra’s S&H requirements as construction works evolve,and results are reported back to the project team. The higher the index results, the higher the safety conscience is amongst theconstruction workforce. Where deviations or non-conformities are detected, various actions can be taken, such as correcting them,increasing worker supervision, providing further training or more resources.

We also hold regular SHE Meetings and carry out emergency practice drills on all construction sites. All serious incidents which occur areinvestigated and lessons learned are communicated across the Company through the tool called Safety Alerts, which are messages thatare sent to Sonae Sierra employees, and describe preventive actions which should be taken to avoid certain accidents.

In 2011, we implemented the following measures to reduce the number of accidents:

• We carried out SPI observations on all our projects under construction (including expansion and refurbishment works). The average SPIscore across our construction sites was 94%, meaning that we have increased the high level safety conditions and behaviour practicesachieved on Sonae Sierra construction projects44.

• We delivered 753 man hours of S&H training on construction sites.

• We held S&H awareness raising events for construction suppliers. For instance, on the Boulevard Londrina Shopping site in Brazil, one ofthe three events we held focused on providing guidance on the safe handling of chemical products. On the Uberlândia Shopping site,also in Brazil, we raised awareness about health risks related to smoking and drinking.


43 Instituto Nazionale per L’Assicurazione contro gli Infortuni sul Lavoro.44 It should be noted that the SPI is a subjective tool that relies on the inputs of a number of project collaborators and that site conditions do not directly correlate with the number

of incidents. From the perspective of the auditors, the overall safety conditions of our sites have been improving each year, in spite of the fact that we have recorded more (butless serious) incidents.

reducing accidents and occupational diseases in the workplace (continued)


Suppliers 72

Tenants 78


Employees 91



We did not inaugurate any new shopping centres in 2011, but we did already achieve OHSAS 18001 certification for SHEMS of Le Terrazzein Italy and Uberlândia Shopping in Brazil, which are scheduled to open in the first quarter of 2012.

Unfortunately, in spite of the enforcement controls in place and considerable efforts dedicated to S&H awareness-raising, we did not achieveour target to reduce the Lost Workday Case Accidents Frequency Rate (LWCAFR) by 5% in comparison with the 2010 result. The LWCAFRis the number of incidents resulting in one or more lost workdays per million hours worked on construction sites. In 2011, a relatively highnumber of minor accidents occurred on the Uberlândia Shopping project in Brazil. No fatalities occurred on our construction sites in 2011.


Lost Workday CaseAccidents FrequencyRate (LWCAFR) onconstruction sites

2011 17.2

2010 13.0

2009 7.5

2008 12.7

Data Qualifying note:This indicator includesprojects under developmentas on 31 December 2011 aswell as projects completedduring the reporting year.The LWCAFR is the numberof incidents resulting in oneor more lost work days(incident category level 4)per million hours worked onconstruction sites.

Safe Practice Index (SPI)(%)

2011 94

2010 92

2009 91

2008 88

Data Qualifying note:This indicator includes projects under development as on31 December 2011 as well as projects completed during thereporting year. The SPI is obtained through the weightedaverage of SPI values for the reporting year. This indicatorcovers all projects with an SPI programme in place. Thisincludes the CC Continente de Portimão refurbishmentand the Colombo office Tower Ocidente project in Portugal;Le Terrazze and the Valecenter refurbishment in Italy;Solingen Shopping in Germany and the ShoppingMetrópole expansion; Boulevard Londrina Shopping andUberlândia Shopping in Brazil.

A PErSonAl logBook to iMProvE SitE SAfEtyAt SolingEn in gErMAny

The construction industry is the sector where most workplace accidentshappen, according to Eurostat data. Sonae Sierra is particularly aware of thisissue for its shopping centre construction sites, where the scale and natureof the work can generate Safety and Health (S&H) risks for workers on site.Because those workers are our construction contractors’ employees, as opposedto direct Sonae Sierra employees, it can be demanding to reach them and ensurethat they respect our internal S&H rules and procedures. We also need tomake sure that construction workers are fit for work and that the tasks assigned,the training provided and personal S&H records are sufficient and adequate.

We started the demolition work on Solingen site in Germany in September 2011and, to tackle these issues, we decided to distribute personal logbooks to eachworker. These logbooks are designed to hold certificates, evidence andinformation that their owner needs to work on site, including:

• Name • Vaccinations

• Age • Skills

• ID reference number • Training sessions attended

• Medical examinations • S&H records (non-compliance with established procedures, etc.)

This logbook is a document that every worker is required to carry when on site. Their use was suggested by our demolition phaseS&H coordination team, GeoExperts. We explained to our suppliers how to use them and they have been well-accepted by all. Theuse of the logbooks has improved the efficiency of our S&H coordination by identifying workers who should or should not carry outspecific tasks; who need training or special authorisation in certain cases; and those who might have recurrently been exposed tosafety hazards or involved in incidents.

Although we cannot accurately measure or anticipate how many accidents were avoided thanks to this measure, we expect that ithas played a part in the good S&H results achieved so far, as no incidents have been reported. Another important benefit is thatthis logbook has contributed to increasing workers’ S&H awareness by being part of their daily routine. It also establishes clearresponsibilities and allows supervisors to check workers’ certificates as and when needed.

Promoting safety on construction sites (continued)


Suppliers 72

Tenants 78


Employees 91



Making shopping centres safer

In 2011 we succeeded in reducing the LWCAFR among our service suppliers in shopping centres by 26% in comparison with 2010,exceeding the target we had set. Although the LWCAFR has shown an increase over the four year period since 2008, this is more likely tobe due to the improving quality of data reported at our shopping centres. In 2011, our data audits did not find any incidents which had notbeen reported, which means that we can now have greater confidence in the reliability of this indicator.

However, unfortunately we were unable to reduce the frequency rate of level three, four and five category accidents per million visits toour shopping centres; the frequency rate of these types of accidents was 1.48 in 2011 compared with 1.02 in 2010. Some of the factorswhich have influenced this trend included an improvement in the quality of data reported and the 4% decrease in the overall number ofvisits to our shopping centres in 2011 compared with 2010.

We also deeply regret that in 2011 one accident occurred in one of our shopping centres where a tenant’s supplier suffered a fatal injurywhilst working on our site.


We continue to promote safe behaviour, prevent accidents and make sure that we know how to respond in emergency situations acrossall our shopping centres. When incidents do occur, we issue safety alerts to all our shopping centres and update our SHEMS procedureswith the aim of preventing any similar incident from occurring again. In 2011 a further five of our shopping centres’ SHEMS were certifiedin accordance with OHSAS 18001: GuimarãesShopping and LoureShopping in Portugal; Parque Principado and GranCasa in Spain andMünster Arkaden in Germany.

In 2011 we delivered training to shopping centre suppliers and tenants on the SHEMS; emergency procedures and fire fighting; hazardidentification and risk assessment; first aid and ergonomics, as well as induction training for new staff. We also performed 10,580 hoursof SPO45 across our shopping centres (including some of those which we manage on behalf of other owners). The number of hours ofSPO performed decreased in comparison with previous years as the monthly target number of hours of SPO set for shopping centres(previously four hours per month) was adjusted according to the number of shops and number of personnel in each shopping centremanagement team to perform the SPO.

In 2011, we detected an average 7.8 non-conformities per hour of reference SPO, a 34% increase in comparison with 2010. This partlyreflects the change in the methodology used to calculate this indicator (see the data qualifying note for further details). However, it isalso consistent with an increase in the number of non-conformities detected across all SPO performed.

Global frequency rate oflevel 3, 4 and 5 categoryaccidents per millionvisits in shopping centres

2011 1.48

2010 1.02

2009 0.73

2008 1.01

Data Qualifying note:This indicator includes all shopping centres ownedby Sonae Sierra and in operation for the full reportingyear, as well as a further six shopping centres whichwe managed on behalf of other owners in both 2010and 2011. The frequency rate of accidents occurringamong shopping centre visitors is calculated as thenumber of level 3, 4 and 5 category accidents dividedby the total number of visits. In accordance with SonaeSierra’s SHE procedures, we identify the followinglevels of incidents in shopping centres according totheir severity: Level 1: Critical ‘near miss’ (an S&Hincident that nearly caused personal damage); Level 2:S&H accident requiring first-aid attention; Level 3:S&H accident requiring medical treatment; Level 4:S&H accident with lost work-day or life disruptingcase, temporary or partial incapacity or minoroccupational disease; Level 5: Fatality or permanentdisability or serious occupational disease.

Global Lost Workday CaseAccidents Frequency Rate(LWCAFR) among suppliersin shopping centres

2011 2.88

2010 3.88

2009 2.76

2008 1.39

Data Qualifying note:This indicator includes allshopping centres owned bySonae Sierra and in operationfor the full reporting year, as wellas a further six shopping centreswhich we managed on behalf ofother owners in both 2010 and2011. The LWCAFR is thenumber of incidents resultingin one or more lost work daysof accidents per million hoursworked by suppliers who arebased in our shopping centres(i.e., cleaning, maintenance andsecurity staff).

45 Safety, Health and Environment Preventive Observations formerly Safety Preventive Observations, SPO allow us to identify and correct behaviour which could potentially lead toincidents, and are therefore an important part of our accident prevention strategy. In 2011, in line with the integration of our Safety and Health and Environmental ManagementSystems, the SPO included environmental as well as S&H criteria.


Data on the number of SPOs performed by country is available in our Country CR Summary Report at:http://www.sonaesierra.com/en-gb/corporateresponsibility/reportsandfeedback/reports/2011reports.aspx

Further reference:


Suppliers 72

Tenants 78


Employees 91




Number of hours ofSafety, Health andEnvironment PreventiveObservation (SPO)performed in shoppingcentres and corporateoffices (number of hours)

2011 10,795

2010 12,880

2009 12,445

2008 11,659

Data Qualifying note:This indicator includesall shopping centresowned by Sonae Sierraand in operation for thefull reporting year aswell as our eight maincorporate offices. Italso includes 12 out of20 shopping centresmanaged by SonaeSierra on behalf ofother owners where the SPO tool is applied.

Number of non-conformities detectedper hour of reference SPO (number of non-conformitiesdetected per hour)

2011 7.8

2010 5.8

2009 5.7

2008 7.9

Data Qualifying note:This indicator includes all shopping centres owned by SonaeSierra and in operation for the full reporting year. In 2011, themethodology used to calculate this indicator changed. Inprevious years, ‘reference SPOs’ (which are included in thisindicator), only included SPOs performed by Country S&HCoordinators or by the Sustainability Office team on so called‘reference sites’, a sample of sites which were intended torepresent a proxy for our whole portfolio. In 2011, this waschanged to avoid the need for additional travel to be madespecifically to these sites. ‘Reference SPOs’ are SPOs performedby any Country SHE Coordinator or by the Sustainability Officeteam on any Sonae Sierra site. In 2011 the calculation methodfor non-conformities also changed to account for the fact thatenvironmental criteria are now included. The number of non-conformities per hour of SPO is now calculated as the totalnumber of S&H and SHE non-conformities divided by 80% of SPOhours performed, multiplied by the total number of SPO hours.

Data Qualifying note:This indicator includes allshopping centres owned bySonae Sierra and in operation forthe full reporting year, as well asshopping centres managed bySonae Sierra on behalf of otherowners during the reportingyear. Please see page 98 foran explanation of how the“SHE Global Achievement”is calculated.

“SHE Global Achievement” (shopping centres)

SHE Global Achievementcomponents 2011 2010 2009 2008

SHE Meetings 137% 121% 123% 108%

SPOs 193% 126% 130% 121%

Drills 109% 101% 116% 100%

Incident Investigation 111% 101% n.a. n.a.

Making shopping centres safer (continued)




Suppliers 72

Tenants 78


Employees 91



Embedding our S&H management procedures

One of our SHEMS procedures involves the regular inspection of our tenants’ units and in 2011 we carried out 3,865 of these inspectionsand engaged with tenants to address all non-conformances detected. Moreover, our use of Personal Digital Assistants (PDAs) to help usconduct these inspections in a more efficient and effective way achieved us recognition as the winner of a European Risk ManagementAward in the category “Most innovative use of IT or other technology”. These awards are presented by StrategicRISK, a British magazinewhich acknowledges the best and most innovative activity in risk management.

All our shopping centres (as well as our corporate offices) have an Internal Emergency Plan developed during the construction phase ofthe site, or after acquisition, and this plan covers all possible emergency scenarios. It is tested at least twice per year on each site againsttwo of these scenarios, through the practice of emergency drills. We have identified fires as being the most significant major hazard forshopping centres and a fire emergency is one of the scenarios we practice every year. In 2011 our shopping centres performed an averageof 2.3 emergency practice drills. In addition to the ‘fire scenario’, we chose to test the earthquake scenario, where this risk exists, since itis a natural phenomenon which can prove destructive and take many lives. Our shopping centres tested their procedures and informedstaff, tenants and suppliers about the safe behaviour practices to adopt before, during and after an earthquake. These drills attractedsignificant media coverage and also counted on the participation of official entities, like the fire brigade and civil protection authorities,who praised our initiative.


We continue to raise awareness among our suppliers, tenants and visitors about S&H issues. In 2011 we put together a leaflet explainingthe most common sources of accidents in our shopping centres and how to avoid them, and disseminated it among all our tenants. Weheld a range of events to celebrate World Day for Safety and Health at Work on 28 April, including training about road safety, occupationaldiseases and safety rules in our shopping centres. Many of our shopping centres also held campaigns for visitors with S&H themes atdifferent times in the year, including campaigns to promote awareness about the prevention of specific diseases and offer vaccinations.

In Brazil, we rolled out the use of WIKA, our children’s safety mascot, by introducing the WIKA microsite on all shopping centres’ websites.This site contains five interactive, educative computer games for children about safe behaviour in shopping centres. Each game tackles adifferent theme relating to the areas found in a shopping centre (e.g., escalators, lifts, restaurant areas) where children can have differentexperiences whilst learning basic safety rules so that they can learn how to be safe in each of these areas.

Number of drillsperformed divided bytotal number of sitesof operation(number of drills by site)

2011 2.3

2010 2.0

2009 2.1

2008 1.9

Data Qualifying note:This indicator includes all shopping centres owned by Sonae Sierra and in operationfor at least six weeks of the reporting year; as well as our eight main corporate offices.This indicator represents the total number of practice safety, health and environmentemergency drills carried out across all sites of operation and corporate offices, dividedby the number of sites. In 2011, environmental drills, which previously were excludedfrom the scope of this indicator, were included together with safety and healthemergency drills due to the integration of these two procedures.

Mark Preston joined Grosvenor in 1989. He was appointed leader of the company’s fund managementoperations in 1997. In 2006, after four years in San Francisco, he became CEO of Grosvenor Britain & Irelandbefore being appointed Group CEO in 2008. He currently sits on the Board of the Association of ForeignInvestors in Real Estate and is a member of the North West Business Leaders’ Trust.

Academic achievements

BSc Hons degree in Land Management, Reading University; member of the RICS; International ExecutiveProgramme at INSEAD.

Mark PrestonNon-Executive Director


Board Members and Executives

Paulo Azevedo joined the Sonae Group in 1988. In 1996 he was appointed Director of Modelo ContinenteSGPS. From 1998 to 2000 he was Chairman of the Executive Committee of Optimus Telecomunicações SAbefore later being appointed CEO of Sonaecom’s Executive Committee. In 2007 he was elected CEO of SonaeSGPS and Chairman of the Boards of Sonaecom, Sonae Sierra and Sonae Distribuição.


Degree in Chemical Engineering, École Politechnique Federal de Lausanne; MBA, ISEE, University of Porto.


Ângelo Paupério has been a Non-Executive Director of Sonae Sierra since 2000. He is also Chairman ofSonaecom’s Executive Committee, Executive Vice-Chairman of Sonae SGPS and sits on the Board of SonaeDistribuição, all of which are companies in the Sonae Group.


Degree in Civil Engineering, University of Porto; MBA, ISEE, University of Porto.

Nicholas Scarles joined Grosvenor in 2004 as Finance Director, Grosvenor Fund Management and Director ofCorporate Finance, Grosvenor Group, before being appointed Group Finance Director in 2006. Prior toGrosvenor, Nick was CFO of Centrica plc’s North American operations, following a number of years at PriceWaterhouse and Coopers & Lybrand in London and New York.


Degree in law from Trinity College, Cambridge; Masters of Law from the University of Virginia; Fellow of theInstitute of Chartered Accountants in England and Wales; Member of the Institute of Taxation (UK); CertifiedPublic Accountant (Colorado, USA).

Neil Jones has been a Non-Executive director of Sonae Sierra since 1999. He is Managing Director ofAlmacantar, a property investment and development company. He was CEO of Grosvenor Continental Europefrom 1997 to 2009 and an Executive Director of Grosvenor’ Group Ltd. He remains an advisor to Grosvenor.Based in Paris since 1998, he has also lived and worked in London, Brussels and Hong Kong.


Degree in Estate Management, University of West of England; General Management Programme, HarvardBusiness School.

Paulo AzevedoChairman

Ângelo PaupérioNon-Executive Director

Nicholas ScarlesNon-Executive Director

Neil JonesNon-Executive Director

Board MembersNon-Executive Directors



Board Members and Executives continued

Edmundo Figueiredo joined the Sonae Group in 1989, as Financial Controller of the company’s real estateactivities. As Sonae Sierra’s Chief Financial Officer and a member of the Sonae Group Finance Committee,Edmundo’s responsibilities include Internal Audit; Legal, Fiscal and Mergers & Acquisitions; Finance, Planning& Control, Information Systems and Back-Office.


Degree in Finance, Lisbon School of Economics (ISCEF).

Pedro Caupers joined Sonae Sierra in 1997. In 1999 he was appointed Board Director, with responsibilities forall the company’s European property management and leasing activities. Since 2009 he has been in charge ofthe investment division and its portfolio. He is also manager of the Sonae Sierra Funds.


Degree in Electrical Engineering, Instituto Superior Técnico; PhD, Paris University; MBA, INSEAD.

Ana Guedes Oliveira has been with Sonae Sierra since 1987. Having managed the development of two majorcentres in Portugal, she moved to portfolio management in 1999. In 2008 she took over responsibilities for allSonae Sierra’s European investment activities. Since 2009 she has overseen all aspects of the company’sdevelopment programme in all markets except Brazil.

She is the Co-Chair of the CR Suppliers Working Group.


Degree in Civil Engineering, Porto University; MBA, ISEE, University of Porto; AMP, INSEAD.

João Correia de Sampaio joined Sonae Sierra in 1992, since when among other duties in the propertymanagement area he was Managing Director of Sierra Management Portugal and Sierra Management Spain.Since 2009 he has been responsible for all Sonae Sierra’s property management and leasing activities, with theexception of Brazil.

He is the Chair of the CR Tenants Working Group and Co-chair of the CR Suppliers Working Group.


Degree in Military Sciences, Academia Militar, Lisbon; MBA, Nova University of Lisbon.

Having joined the Sonae Group in 1982, José Baeta Tomás was appointed General Manager of SonaeDistribuição in 1983. He joined the Executive Committee in 1985 and, in 1995, created Sonae Distribuição inBrazil. From 2003 to 2009 he managed Tafisa Brazil and supervised the development of SonaeCom, twoSonae companies operating in Brazil. In 2010 he was appointed CEO of Sonae Sierra Brasil.


Degrees in Finance, ISE, Lisbon, and Retail Marketing, Management Centre Europe, Oxford.

Edmundo FigueiredoDirector, Chief Financial Officer

Ana Guedes OliveiraDirector, Developments

José Baeta TomásDirector, Chief Executive Officer,Sonae Sierra Brasil

João Correia de SampaioDirector, Property Managementand Leasing

Pedro CaupersDirector, Investment andAsset Management

Fernando Guedes OliveiraChief Executive Officer

Fernando Guedes Oliveira joined Sonae Sierra in 1991, as Project Manager of the company’s ViaCatarina andCentro Vasco de Gama shopping centres. He had previously spent seven years in other management roleswith the Sonae Group. In 1999 he took responsibility for all Sonae Sierra’s development operations in Europeand was appointed CEO of Sonae Sierra in April 2010 with direct responsibilities over the Human Resources,Corporate Communication, Marketing and Innovation, and the Sustainability Office.

He is the chair of the CR Steering Committee and the S&H Steering Committee.


Degree in Civil Engineering, University of Porto; MBA, ISEE, University of Porto; AMD, Harvard Business School.

Board Members (continued)Executive Directors



Board Members and Executives continuedOther Executives

João Pessoa Jorge joined the Sonae Group in 1983 as one of the executives involved in starting the Group’sreal estate business. From 1998 until 2010, he was CEO of Sonae Sierra Brasil. In 2010, João tookresponsibility for promoting the company’s development services to third parties in new markets.


Degree in Civil Engineering, University of Porto; MBA, Kent State University, Ohio.

Joaquim Pereira Mendes joined Sonae Sierra in 1989 and is responsible for the company’s Legal, Tax andMergers & Acquisitions activities.


Degree in Law, Coimbra University; Visiting Professor, Portucalense University, Porto.

José Quintela has been with Sonae Sierra since 1986, and is, since 1992 leading the team responsible for theconcepts and design of all the company’s shopping centres across all the countries Sonae Sierra is active in.


Degree in Architecture, School of Fine Arts, Lisbon; MBA, Nova University of Lisbon; AMD, Harvard BusinessSchool.

José Falcão Mena joined Sonae Sierra in 1989. He has overseen the company’s expansion in Iberia since 1998and been responsible for shopping centre development in the same region since 2004. In 2010 he becomeresponsible for the expansion of the development services area in Maghreb region and in 2011 he wasdesignated Director of the new EMEA Services department.


Degree in Civil Engineering, Instituto Superior Técnico, Lisbon; Management Graduated, ISCTE, Lisbon;Advanced Marketing Studies, Católica Lisbon –School of Business and Economics.

Joaquim Ribeiro joined the Sonae Group’s holding company in 1985, before transferring to Sonae Indústria.He then moved to London for six years, where he worked for Sonae International. In 1995 he joined SonaeSierra’s financial department, where – since 2006 – he has been responsible for Finance, Planning and Control.


Degree in Economics, Faculdade de Economia do Porto; MBA, Nova University of Lisbon; MSc in PropertyInvestment, City University, London.

João Pessoa JorgeDevelopment Services, New Markets

José QuintelaConceptual Development andArchitecture

Joaquim RibeiroFinance, Planning and Control

Joaquim Pereira MendesLegal, Tax, Mergers & Acquisitions

José Falcão MenaEMEA Sierra Services

Ingo NissenDevelopment, Romania



Board Members and Executives continuedOther Executives (continued)

Ingo Nissen joined Sonae Sierra in 2000, when the company began operations in Germany. In 2007 he wasappointed Director, Development, Romania, with particular responsibilities for the company’s shopping centredevelopment activities in that country.


Degree in Civil Engineering, Technical University, Braunschweig; PhD, Technical University, Munich.

Thomas Binder has more than 20 years’ experience of project and lease management in the Germanshopping centre, business parks and commercial property sector. He joined Sonae Sierra in 2006, and hasresponsibilities for the company’s shopping centre developments in Germany.


Degree in Real Estate Management, Wirtschaftsakademie, Kiel; studied Law in Bochum and Kiel.

Having overseen the inauguration of more than 10 new shopping centres in Iberia, Vitor Nogueira previouslyled the Sierra Management support team responsible for 17 shopping centres in Spain. Since 2007, hisresponsibilities have been focused on the company’s non-Iberian operations, particularly those in Italy,Greece and Romania. In 2012 he also become responsible for the expansion of the property managementservices in new markets, including Algeria.


Degree in Management Administration, UL & UM, Lisbon; MBA, IEDE, Madrid; Master of Science in Finance,Central Western University, Texas; Global Strategic Management at Harvard Business School.

Manuela Calhau joined Sonae Sierra in 2008, following senior positions in the telecommunications sector,where she was a board member at several Sonaecom companies and a consultant at McKinsey & Co. Manuelawas the first Portuguese woman to join McKinsey at management level. At Sonae Sierra, she is responsible formarketing all the company’s European operating shopping centres and development projects.

She is the Chair of the CR Communities and Visitors Working Group.


Degree in Economics, Católica Lisbon – School of Business and Economics; MBA, Nova University of Lisbon;Visiting Professor on the joint UCP/UNL/MIT MBA programme.

Cristina Santos joined Sonae Sierra in 1995, as Assistant Director of GaiaShopping, where she later becamethe centre’s Director. She subsequently transferred to the company’s central Property Management divisionand is now the Managing Director of Sierra Management Portugal, with special responsibilities for propertymanagement and letting.


Degree in Food Engineering, Católica Lisbon – School of Business and Economics.

Alexandre FernandesAsset Management, Portugaland Spain

Alexandre Fernandes joined Sonae Sierra in 1997 as Project Manager of NorteShopping, later becoming thecentre’s General Manager. In 2000 he was appointed Asset Manager for Portugal. In 2002 he added Greeceand Romania to his portfolio. Since 2008, Alexandre has overseen all Sonae Sierra’s real estate investmentsin Portugal and Spain.


MSc in Management, University of Porto; MBA, ISEE, University of Porto.

Manuela CalhauMarketing and Innovation

Cristina SantosProperty Management, Portugal

Thomas BinderDevelopment, Germany

Vitor NogueiraProperty Management, in Italy,Greece, Romania and Algeria

Pedro Soveral RodriguesHuman Resources



Board Members and Executives continuedOther Executives (continued)

Alberto Bravo spent four years in charge of the property management activities of Spanish consultancy CCCbefore joining Sonae Sierra in 2000. Since then, he has held various positions within Sonae Sierra, rangingfrom regional operations manager for southern Spain to Head of Property Management for the whole of Spain,a responsibility he took up in 2009.


Degree in Law, UNED, Madrid; Studied General Management, London Business School.

Carlos Alberto Correa joined Sonae Sierra Brasil as Deputy CFO in 2007, having spent a number of years withsome of Brazil’s larger companies, where he acquired extensive experience in the financial field. In February2009 he was appointed CFO of Sonae Sierra Brasil, with overall responsibility for the company’s financial area.


Degree in Accounting & MBA, Universidade Presbiteriana Mackenzie, São Paulo; Studied Finance at FundaçãoGetúlio Vargas.

Jerry Boschi joined Sonae Sierra in 2002, as it’s the third employee in the Italian office. In 2012 he wasappointed Director, Development, Italy, with particular responsibilities for the company’s shopping centredevelopment activities in that country.


Degree in Civil Engineering, UMIST, University of Manchester; MBA, Cranfield School of Management

Alberto BravoProperty Management, Spain

Pedro Soveral Rodrigues joined Sonae Sierra in 1998 as Deputy Manager of Centro Colombo. Since then heassumed different responsibilities at the company including the Expansion role in Iberia, the leadership of theSafety & Health area, as well as the responsibility of Property Management in Italy. In 2010 he was appointedas Head of Human Resources.


Degree in Mechanical Engineering, IST, Lisbon; MBA, Nova University of Lisbon; PED, IMD, Lausanne.

Jerry BoschiDevelopment, Italy

Waldir Chao joined Sonae Sierra Brasil in 2011 after 15 years in the Brazilian retail and real estate business.He has wide ranging responsibilities for the management, marketing and leasing of Sonae Sierra Brasil'sshopping centres, with a particular emphasis on the evolution of the day-to-day management aspects ofeach asset.


Degree in Industrial and Management Engineering, – U.S.P., São Paulo; MBA, California State University,San Diego.

Waldir ChaoProperty Management andLeasing, Sonae Sierra Brasil

Carlos Alberto CorreaCFO, Sonae Sierra Brasil






Society Aspects 145



Alexa, Germany



GLOBAL REPORTING INITIATIVE

Annex: Global Reporting InitiativeTransparency about the sustainability of a company’s activities is of interestto a diverse range of stakeholders. The Global Reporting Initiative (GRI) hascollaborated with large networks of experts representing different stakeholdergroups in order to develop a comprehensive framework for sustainabilityreporting that can be used by organisations of any size, sector or location.The GRI’s Sustainability Reporting Guidelines are world’s most widely usedsustainability reporting framework.

Since 2006 we have published reports which comply with the G3 SustainabilityReporting Guidelines. This report complies with level A+ of the G3.1 SustainabilityReporting Guidelines, the updated version of the G3 Guidelines which wasreleased in March 2011. Moreover, this report also follows a significant part of thenew GRI Construction and Real Estate Sector Supplement (CRESS) guidancewhich was launched in September 2011. This chapter follows the structure of theGRI Guidelines, and includes our responses to the Profile Disclosures, Disclosureson Management Approach and Performance Indicators, or references wherethese can be found in other sections of this report.

This report

complieswith level A+

of the G3.1sustainabilityreportingguidelines

Manauara Shopping, Brazil

Freccia Rossa, Italy


Strategy and Analysis

1.1 Statement from the most senior CEO’s Statement, pages 2 and 3.decision-maker of the organisationabout the relevance of sustainabilityto the organization and its strategy

1.2 Description of key impacts, risks Sonae Sierra has identified nine environmental and social impact areas that are most important for and opportunities. our business, and the key issues associated with each one. The impact areas were first identified

through the application of the five-part Materiality Test developed by sustainability think-tank AccountAbility46 in 2006 and key issues were identified through a more rigorous review based on the same tests in 2009, which was repeated in 2010.

In 2010 we also introduced a new materiality test focusing on innovation opportunities. The outcomesof this review enabled us to identify a total of 23 CR material issues; which are shown in the chartbelow. The impact areas form the cornerstone of our CR strategy and management system and theenvironmental and social chapters of this report are structured around our CR impact areas.

The specific risks and opportunities associated with each CR impact area are presented in OurBusiness Strategy, Risk Management, pages 20 and 21.


GlobAl RepoRtInG InItIAtIve






Society Aspects 145



Prioritisation of CR issues by impact and likelihood

5

4

3

2

1

1 2 3 4 5Impact

Like

lihoo

d

Talentmanagement

Avoiding water pollution – Impact on localcommunities

– Wastemanagement

Visitorsatisfaction

Tenantsatisfaction

Constructionsite safety

Equal opportunities

Employeesatisfactionand retention

S&H ofworkforce

Communityconsultationandengagement

GHG emissionsand energyefficiency

Shoppingcentre safety

Suppliers CRperformance

Tenant CR engagement

Climatechangeadaptation

Sustainablewater supply

Sustainableenergy supply

– Sustainablebuildings

– Efficientwater use

Materials

l

n l

l

l

l l l

l ln

l

lll s

s

ls t l nl

low RISK

KeY

l Energy and Climates Watert Wasten Biodiversity and Habitats

l Suppliersn Tenantsl Communities and Visitors

l Employeesl Safety and Healthl Other (cross-cutting) issues

Biodiversityand Habitats

Ethical conduct

46 The Materiality Report – Aligning Strategy, Performance & Reporting; Maya Forstater, Simon Zadek et al., AccountAbility, BT Group plc & LRQA, 2006.

profile Disclosures


profile Disclosures continued

organisational profile

2.1 Name of the organisation. Our Company, page 9.

2.2 Primary brands, products and/or Our Company, page 9.services.

2.3 Operational structure of the Our Company, Organisational Structure, page 11.organisation, including main divisions, operating companies, subsidiaries andjoint ventures.

2.4 Location of the organisation’s Our headquarters are located in Maia, Portugal.headquarters.

2.5 Number of countries where the Our Company, page 9, and Our Company, Where We Operate, page 12.organisation operates and names ofcountries with either major operationsor that are specifically relevant tothe sustainability issues covered inthe report.

2.6 Nature of ownership and legal form. Our Company, Corporate Governance, page 13.

2.7 Markets served (including geographic Our Company, page 9, Our Company, Where We Operate, page 12.breakdown, sectors served, and typesof customers/beneficiaries).

2.8 Scale of the reporting organisation. Our Company, page 9, Our Company, Where We Operate, page 12.

2.9 Significant changes during the The Year At A Glance, Key Activities, page 4.reporting period regarding size,structure, or ownership.

2.10 Awards received in the reporting period. A summary of the most important awards and acknowledgements we received at a corporate level in2011 are reported in The Year At A Glance, Key Achievements and Performance Indicators, pages 5 to 7.

In addition to those, we also received several awards at a shopping centre level and were shortlistedfor others at a corporate level:

• Centro Colombo was elected Best Shopping Centre in Portugal for the second time in a row at theHipersuper Awards and was distinguished by the Revista Imobiliária “Special Magazine Award” inthe National Real Estate Awards 2011 in Portugal for its refurbishment project.

• LeiriaShopping in Portugal was honoured with the Revista Imobiliária Eurohypo “Real Estate OscarAward” and the “Eurohypo Award” in the National Real Estate Awards 2011 in Portugal.

• Loop5 in Germany was commended in the 2011 International Council of Shopping Centres (ICSC)European Shopping Centre Awards in the category “New Developments: Large”.

• NorteShopping in Portugal won the ICSC Jean Louis Solal Marketing Award for Cause RelatedMarketing for the campaign ‘Cycle and switch on our Christmas tree’ which was intended to increaseenvironmental awareness among the local community.

• We were shortlisted for the Edie Awards for Environmental Excellence 2011 in the category ‘GreenCorporate Initiative’.

• We were shortlisted for the DuPont Safety Award for our innovative approach to creating safershopping centres for children.

• We were shortlisted for the Digital Communication Award 2010 for outstanding accomplishmentin the field of ‘Digital communications and PR for Corporate Social Responsibility Report’.

• In Spain, we were a finalist in the Premios Corresponsables (Corresponsables Award) for the GUIOproject to help blind people and those with visual impairment to use our shopping centres.

• La Farga in Spain was awarded the Humana Foundation’s Textile Recycling Prize in the ‘PrivateEnterprise’ category for having collected the largest amount of clothing for charitable causes.








Society Aspects 145







Report parameters

3.1 Reporting period (e.g., fiscal/ calendar The information in this report relates to the calendar year ending on 31 December 2011.year) for information provided.

3.2 Date of the most recent previous This report succeeds our 2010 In Review: Economic, Environmental and Social Performance Report report (if any). and our 2010 Corporate Responsibility Report which were published in April 2011.

3.3 Reporting cycle (annual, biennial, etc.). We report on a calendar year cycle.

3.4 Contact point for questions regarding Nuno Rafael Alvesthe report or its contents. Corporate Responsibility Reporting Coordinator

Email: [email protected]

3.5 Process for defining report content, The GRI framework includes principles to help organisations develop a balanced and accurate including: account of their sustainability performance. Here we describe how Sonae Sierra has applied each of • Defining materiality; these principles to this report.• Prioritising topics within the

report; and Materiality• Identifying stakeholders the Our latest full Materiality Review was performed in December 2010 (see page 110 for further details).

organisation expects to use The contents of this report are based around the 23 material issues which were identified through the report. that review. In 2011, we performed two of five materiality tests defined by AccountAbility: a review of

stakeholder feedback and a review of peer-based norms. The review of stakeholder feedback revealedthat indoor air quality is an important issue for our tenants in particular. Whilst this issue is addressedthrough our Safety, Health and Environment Management System (SHEMS), we have included somefurther information about our management of indoor air quality in this report (see page 125).

Stakeholder Inclusiveness and ClarityThrough our considerable experience of developing and managing shopping centres, we have identifiedthose stakeholder groups that are significantly affected by our activities and whose actions can affectour business performance. For further details about our stakeholders, see pages 118 to 120.

We have also produced a number of external communication materials to accompany this report andto make the information more accessible to a wider audience. These include:

• 2011 In Review: Economic, Environmental and Social Performance, which offers a short summaryof our 2011 performancehttp://www.sonaesierra.com/en-gb/corporateresponsibility/reportsandfeedback/reports/2011reports.aspx

• CR Country Summary Report, which provides a summary of our performance in the seven maincountries where we operatehttp://www.sonaesierra.com/en-gb/corporateresponsibility/reportsandfeedback/reports/2011reports.aspx

• The CR section on our Corporate Websitehttp://www.sonaesierra.com/en-gb/corporateresponsibility/ourvision.aspx

Sustainability ContextWhere applicable, this report includes objective information with reference to broader sustainabledevelopment concerns and trends, as recognised in regional and/or global publications and linksbetween sustainability topics and Sonae Sierra’s organisational strategy.

We have also identified sustainability initiatives undertaken within our Company which we believe tobe particularly innovative in the shopping centre sector. These are shown by the ‘innovation star’symbol.

balanceThis report discloses both favourable and unfavourable aspects of our performance. Where possible wehave included positive and critical feedback received from our stakeholders. We also present andcomment on our performance data in a way that enables the reader to easily interpret trends and tounderstand the factors that may have influenced our performance.






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mailto:[email protected]



http://www.sonaesierra.com/en-gb/corporateresponsibility/ourvision.aspx



Report parameters (continued)

timelinessThe information and data presented in this report (including environmental, social and economicperformance data) relates to the calendar year 2011. The next update on our environmental, social andeconomic performance is scheduled for publication in April 2013.

CompletenessSee ‘Boundary of the report’ under Global Reporting Initiative, Profile Disclosures, Report Parameters,3.6, below.

Accuracy, Reliability and ComparabilitySee ‘Data measurement techniques and the bases of calculations, including assumptions and techniquesunderlying estimations applied to the compilation of the Indicators and other information in the report’under Global Reporting Initiative, Profile Disclosures, Report Parameters, 3.9, on page 114.

3.6 Boundary of the report (e.g., countries, This report covers key aspects of our economic, environmental and social performance with a specificdivisions, subsidiaries, leased focus on our CR material impact areas. This considers all our business activities, namely the ownership, facilities, joint ventures, suppliers). development and management of shopping centres. Unless otherwise stated, all performance data

contained in this report:

• Includes all of Sonae Sierra’s direct operations in Europe and Brazil, but excludes our activities inColombia, Morocco and Algeria where we do not own shopping centres.

• Excludes our corporate offices in Colombia; Morocco; Algeria; The Netherlands and Luxembourg.• Includes the Colombo office Tower Ocidente project in Portugal within environmental and social

performance indicators, in spite of the fact that the development of office buildings is not part ofour core business.

• Excludes shopping centres that are managed but not owned by Sonae Sierra (i.e. shopping centresthat we do not hold any shares in). Shopping centres which are not owned by Sonae Sierra are notfully covered by our SHEMS, and are not included within the scope of CR targets related withshopping centres. Plaza Éboli and El Rosal in Spain fall within this group; these shopping centreswere sold in March 2011 although Sonae Sierra still provides property management and leasingservices for these shopping centres. They have both been excluded from this report.

• Excludes the sustainability impact of our tenants (all our owned shopping centres containunits/facilities which are leased to our tenants; the impacts of these facilities, which are the impactof our tenants, are not quantified in this report).

• Excludes development projects that are managed but not owned by Sonae Sierra.• Excludes the sustainability impact of our joint venture partners on development projects and our

construction contractors. However, we have included figures for energy, water consumption andwaste management of our significant development projects completed in 2011, the ShoppingMetrópole expansion in Brazil and the Colombo office Tower Ocidente project in Portugal. Figuresfor energy, water consumption and waste management of the Shopping Campo Limpo expansionin Brazil were not included, for the reason explained on page 4.

3.7 State any specific limitations on the The completeness of the data used to compile our Key Performance Indicators (KPIs) is explained scope or boundary of the report. through the notes which accompany each performance measure.

Where data is not available or could not be verified the abbreviation ‘n.d. (‘no data’) has been used.Similarly where data is not applicable to the site in question the abbreviation ‘n.a.’ (‘not applicable’)has been used.








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Report parameters (continued)

3.8 Basis for reporting on joint ventures, The Safety, Health and Environment (SHE) information in this report covers all our owned subsidiary subsidiaries, leased facilities, holding companies, regardless of our ownership stake in these. The financial information is reported outsourced operations, and other on the financial value derived directly by Sonae Sierra, which is proportionate to our ownership stake.entities that can significantly affectcomparability from period to periodand/or between organisations.

3.9 Data measurement techniques In this report, actual measurements are presented whenever possible. Any estimates, underlying and the bases of calculations, assumptions, or limitations on the values presented are explained using data qualifying notes including assumptions and techniques beside each performance indicator. In all cases, we are confident that the margin of error associated underlying estimations applied to the with quantitative data will not affect stakeholder’s ability to reach accurate conclusions about our compilation of the Indicators and performance.other information in the report. With respect to financial performance and other monetary data, average FX exchange rates have been

used throughout this report to convert Brazilian values in Reais (R$) into Euro (€) (0.43061) andRomanian values in Lei to Euro (€) (0.23618).

GRI indicators have been calculated in accordance with the guidelines in the GRI indicator protocols.The methodologies used to calculate non-GRI indicators are explained in the notes alongside each KPIin cases where these are not obvious to the reader. In cases where Sonae Sierra’s response does notexactly meet all of the GRI requirements, explanations can be found in the data qualifying notes.

3.10 Explanation of the effect of any Any re-statements of previously reported values are explained using data qualifying notes beside re-statements of information each performance indicator.provided in earlier reports, and the reasons for such re-statement(e.g., mergers/acquisitions, changeof base years/periods, nature ofbusiness, measurement methods).

3.11 Significant changes from previous The most significant change in terms of scope in comparison with the previous reporting period was reporting periods in the scope, the sale of Plaza Éboli and El Rosal in Spain, meaning that on 31 December 2011 we had 49 shopping boundary, or measurement methods centres in our operational portfolio compared with 51 at the end of 2010. Any other changes in scope, applied in the report. boundary or measurement methods with respect to individual performance indicators are reported in

the data qualifying notes besides each indicator.

3.12 Table identifying the location of the This section of our report (pages 110 to 154) is comprised of tables which make up the GRI Standard Standard Disclosures in the report. Disclosures.

3.13 Policy and current practice with This report has been externally assured by an independent auditor to ensure that data and regard to seeking external assurance information is accurate and complies with GRI G3.1 guidelines. The independent auditor’s review can for the report. If not included in the be found on pages 155 to 156.assurance report accompanying thesustainability report, explain the scope and basis of any external assurance provided. Also explain the relationship between the reporting organisation and the assurance provider(s).








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Governance, Commitments and engagement

4.1 Governance structure of the Our Company, Corporate Governance, pages 13 to 14, and Board Members and Executives, organisation, including committees pages 104 to 108.under the highest governance body In the diagram on page 13 we have explained the composition of the highest governance body and eachresponsible for specific tasks, such of its committees. In accordance with the new GRI G3.1 requirement, in the table below we state the as setting strategy or organisational proportion of committee members by gender.oversight.

4.2 Indicate whether the Chair of the Our Company, Corporate Governance, pages 13 to 14.highest governance body is also an executive officer (and, if so, theirfunction within the organisation’s management and the reasons forthis arrangement).

4.3 For organisations that have a unitary Our Company, Corporate Governance, pages 13 to 14.board structure, state the number and gender of members of the highest governance body that are independentand/or non-executive members.

4.4 Mechanisms for shareholders Our shareholders are represented on both the General Shareholders Assembly and the Board of and employees to provide Directors, providing them with an opportunity to express their views to these bodies. We also hold recommendations or direction to meetings with the Boards of each of the Sierra Funds, which provide Fund investors the opportunity the highest governance body. to express their opinions.

We invite employees to raise concerns and opinions at monthly Safety, Health and Environment (SHE)meetings held at each site where we operate. CR Working Groups are an important conduit foremployees to provide CR recommendations to the highest governance bodies within the Company. The Explore programme, which is open for employees to express their ideas, provides anotheropportunity for employees to make suggestions to the Board of Directors. The Explore programme is described on page 91.

4.5 Linkage between compensation Our Business Strategy, CR Governance and Management System, page 22.for members of the highest governance body, senior managers,and executives (including departure arrangements), and the organisation’s performance (including social and environmental performance).

Proportion (%) Proportion (%)Governance body/committee of male members of female members

Board of Directors 91% 9%Investment Committee 86% 14%Finance Committee 100% 0%Audit & Compliance Committee 100% 0%Compensation Committee 100% 0%Fiscal Board 100% 0%Executive Board 80% 20%








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Governance, Commitments and engagement (continued)

4.6 Processes in place for the highest Our Code of Conduct includes a requirement for all staff to report any situations where conflicts of governance body to ensure interest exists or may exist.conflicts of interest are avoided. In addition, Sonae Sierra’s Executive Committee has approved a set of Anti-Corruption Guidelines which

were issued in 2011. The Anti-Corruption Guidelines include a specific policy concerning conflicts ofinterest. They state that conflicts of interest are not acceptable within Sonae Sierra and no employeeshould be in a position to grant a business commitment to a relative or associate, namely on the selectionof suppliers, contractors or approving contracts for utilisation of shopping centre areas. Any cases ofconflict of interest which arise in these situations must be communicated and authorised in writing by theBoard member responsible for the employee’s business division.

The Sierra Ombudsman, described on page 14, offers another channel which can help to ensure thatconflicts of interest are avoided.

4.7 Process for determining the When appointing new Board members, shareholders take into consideration the qualifications and composition, qualifications and expertise of the candidates and their understanding of the economic, environmental, and social expertise of the members of the issues which are of relevance to our business.highest governance body and its committees, including anyconsideration of gender and otherindicators of diversity.

4.8 Internally developed statements Our Vision and Mission are presented in Our Company, page 10.of mission or values, codes of conduct, Our CR Management System is underpinned by several public policies, including our over-arching and principles relevant to economic, CR Policy, all of which can be found on our corporate website:environmental, and social http://www.sonaesierra.com/en-gb/corporateresponsibility/crmanagement.aspxperformance and the status of theirimplementation.

4.9 Procedures of the highest Our Business Strategy, CR Governance and Management System, pages 22 to 23.governance body for overseeing theorganisation’s identification and management of economic, environmental, and social performance,including relevant risks and opportunities,and adherence or compliance with internationally agreed standards,codes of conduct, and principles.

4.10 Processes for evaluating the highest We do not have a formal process for evaluating the performance of the Board of Directors with governance body’s own performance, respect to economic, environmental and social issues because there is not an intermediary body particularly with respect to economic, between the Board of Directors and the General Shareholders Assembly that could effectively environmental, and social performance. undertake such an evaluation. However, the performance of the Board of Directors is evaluated

by our shareholders and the market which is positive judging by the number of prestigious awards.

4.11 Explanation of whether and how The precautionary principle is addressed through our approach to safety, health and environmental the precautionary approach or (SHE) issues. We operate a Safety, Health and Environmental Management System (SHEMS) principle is addressed by the certified in accordance with ISO 14001 and OHSAS 18001 standards at a corporate level and local organisation. SHEMS on all our shopping centre and development sites, which require us to identify SHE aspects

and impacts associated with our activities (see pages 24 to 25 for further details, including the number of our local SHEMS which are certified). We apply an Environmental Due Diligence procedure on newprojects and our Safety, Health and Environment Development Standards (SHEDS), also described onpages 24 to 25, enable us to minimise SHE risks and enhance the eco-efficiency of our shoppingcentres in operation during the design phase. We also demonstrate a precautionary approach to climatechange risks; see pages 55 to 56 for further details.








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http://www.sonaesierra.com/en-gb/corporateresponsibility/crmanagement.aspx




4.12 Externally developed economic, Global Compactenvironmental, and social charters, Sonae is a signatory of the Global Compact, a voluntary contract between the United Nations and the principles, or other initiatives to worldwide business community. It is designed to encourage companies to embrace, support and enact, which the organisation subscribes within their sphere of influence, a set of core values in the areas of human rights, labour standards, the or endorses. environment, and anti-corruption. As we are partially owned by Sonae, we must provide this shareholder

with an outline of how we comply with these principles, so it can fully report to the United Nations.

Greenprint FoundationIn 2009, Sonae Sierra became a Founding Member of the Greenprint Foundation, a global industryinitiative supported by key players in the property sector. The mission of the Greenprint Foundation isto enable its members to reduce the carbon footprint of their portfolios in an economically feasiblemanner in line with the current Intergovernmental Panel on Climate Change (IPCC) goals for globalgreenhouse gas stabilisation by 2050. Key programmes to achieve this aspiration include helpingmembers to improve the energy efficiency of their buildings by piloting technological and managementimprovements and sharing the results. In 2011, Sonae Sierra participated in the ‘GreenprintPerformance Report Volume 2’ (previously called Greenprint Carbon Index). We submitted energyconsumption and Greenhouse Gas (GHG) emissions data from 47 shopping centres, which wereanalysed and compared to other Greenprint members’ portfolios.

InRev Sustainability working GroupINREV, the European Association for Investors in Non-listed Real Estate Vehicles, launched aSustainability Working Group in 2009 to inform and educate members of fund-level sustainabilityissues. INREV’s initial work focuses on improving members’ access to information on sustainabilityissues such as regulation and industry benchmarks, understanding market practices in the industryand supporting other initiatives across INREV’s committees such as reporting and due diligence. SonaeSierra became a member of the INREV Sustainability Working Group in 2009 and participates inWorking Group meetings. In 2011, we were involved in the preparation of the INREV Best PracticeRecommendations (BPR) for Sustainability Reporting.

programa Acción Co2

We are a member of the Programa Acción CO2 (CO2 Action Programme) developed by Fundación Entorno,the Spanish Business Council for Sustainable Development, which aims to promote the voluntaryreduction of over 8,000 tonnes of CO2 emissions among companies from all sectors operating in Spain.In 2011 we participated in the development of the Programa Acción CO2 Action Plan and in benchmarkingactivities. We are also working with Programa Acción CO2 to develop a questionnaire for suppliers.

Sustainable energy europe CampaignIn 2008, Sonae Sierra was selected to be a partner of the Sustainable Energy Europe Campaign, dueto the Company’s strong commitment to sustainability and potential to contribute to the Campaign’sobjectives. The Sustainable Energy Europe Campaign is an initiative of the European Commission’sDirectorate-General for Energy and Transport, which aims to raise public awareness and promotesustainable energy production and use among individuals, organisations, private companies, publicauthorities, energy agencies, industry associations and NGOs across Europe.

the 2° Challenge CommuniquéIn 2011 Sonae Sierra signed The 2° Challenge Communiqué. Information about The 2° ChallengeCommuniqué can be found on page 47.

world business Council for Sustainable DevelopmentWe represent Sonae as a Liaison Delegate of the WBCSD. In previous years we have participated in thecore group of the Energy Efficiency in Buildings (EBB) project and signed up to the WBCSD’s Manifestofor Energy Efficiency in Buildings.

world Safety DeclarationThe World Safety Declaration is a charter which forms a global commitment to improve workplacesafety. Sonae, one of our two shareholders, was one of the 24 founding members of the World SafetyDeclaration and became a signatory to this agreement in November 2005.

Our Global Compact Report can be found on our website at:http://www.sonaesierra.com/en-gb/corporateresponsibility/reportsandfeedback/reports/2011reports.aspx








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4.13 Memberships in associations (such Memberships in industry associationsas industry associations) and/or • AMCHAM Brasil – Câmara Americana de Comércio (American Chamber of Commerce) – São Paulonational/international advocacy • Asociación Española de Centros Comerciales – AECC (Spanish Council of Shopping Centres)organisations in which the organisation: • Associação Portuguesa de Centros Comerciais – APCC (Portuguese Council of Shopping Centres)*• Has positions in governance • Associação Portuguesa de Promotores e Investidores Imobiliários – APII (Portuguese Property

bodies; Investor and Developer Council)**• Participates in projects or • Associação Brasileira de Shopping Centers – ABRASCE (Brazilian Council of Shopping Centres)

committees; • Assoimmobiliare (Italian Real Estate Industry Association)*• Provides substantive funding • Consiglio Nazionale dei Centri Commerciali Italia – CNCC (Italian Council of Shopping Centres)*

beyond routine membership • EIRE – Expo Italia Real Estate**dues; or • European Association for Investors in Non-Listed Estate Vehicles – INREV**

• Views membership as strategic. • European Property Federation*• Federimmobiliare (Italian Federation of Real Estate Associations)*• German Council of Shopping Centres*• Greek Council of Shopping Centres*• International Council of Shopping Centres (ICSC)**• REIS – Real Estate Investor Society, Romania• Romanian Council of Shopping Centres*• Urban Land Institute – ULI

* Denotes organisations where Sonae Sierra has significant influence either as president, a trustee or a member of the Board or Council. ** Denotes organisations where Sonae Sierra is a member of a working group, taskforce or committee.

4.14 List of stakeholder groups engaged Our Business Strategy, Our stakeholders, page 16.by the organisation.

4.15 Basis for identification and selection The stakeholder groups with whom we engage have been identified based on our considerable of stakeholders with whom to engage. experience of developing and managing shopping centres.

4.16 Approaches to stakeholder engagement, In the tables below we have provided a summary of the stakeholder engagement techniques we employedincluding frequency of engagement in 2011 and key feedback received. More detailed commentary on feedback received from stakeholdersby type and bystakeholder group, and in 2011 and the ways in which we responded to this feedback can be found in the Suppliers, Tenants,

4.17 Key topics and concerns that have Communities and Visitors and Employees chapters of this report.

been raised through stakeholder engagement, and how theorganisation has responded to those key topics and concerns, including through its reporting.

our Investors

How we engaged and informed

• General Shareholders Assembly

• Annual Reports and Quarterly Reports

• Regular meetings and presentations aboutour financial performance and riskmanagement practices

• INREV Sustainability Working Group

General feedback received andhow we responded

Our investors expressed satisfaction with ourapproach to CR. As this report demonstrates,we have maintained our strong focus onenvironmental and social aspects of performance.

We were engaged by INREV to help approveBest Practice Recommendations (BPR) forSustainability Reporting. In line with the INREVBPR, we included a sustainability performanceannex in our asset fund reports.

Example in focus

In 2011 we were invited by one investorto participate in the Global Real EstateSustainability Benchmark (GRESB). Weparticipated in the GRESB and our propertyfunds were ranked as the most sustainable in Europe.








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our employees

Further details can be found under Employees, pages 91 to 95.

our tenants

Further details can be found under Tenants, pages 78 to 82.

our Suppliers

Further details can be found under Suppliers, pages 72 to 77.


• Employee satisfaction survey

• Horizons magazine and intranet

• Explore programme

• CLICK (Creative Learning, Innovation andContinuous Knowledge) programme

• Regular Safety, Health and Environment(SHE) Meetings

• SHE “Tips” and Alerts, SHE training andSafety Preventive Observations (SPO)

• Involvement of employees in the definition of SHE targets

• Surveys to obtain feedback on training needs,SHE initiatives and reporting practices

General feedback received and how we responded

83% of staff responding to our Employeesatisfaction survey agreed that ‘Sonae Sierrais a good company to work for’. Staff expressedmost satisfaction with Sonae Sierra’s corporatestrategy, mission and values; communicationsand line management. Performance management;work life balance and compensation were thethemes which were ranked lowest, althoughscores had improved since our last survey in2009. We are maintaining efforts to improvethose aspects which employees have rankedunfavourably.

Example in focus

1,490 ideas were submitted by employees to our Explore programme in 2011. 32 of these havebeen implemented or are under implementation.One of these ideas was to develop shoppingcentre services and a retail offer for customersaged 55 and over. Another was to developdifferent types of gardens in our shoppingcentres that need little or no water, in order to reduce our water consumption.


• SierraCentres network and newsletter

• Tenant Satisfaction Surveys

• Top Tenant Survey

• Management meetings

• SHE Open Committees

• SHE training, SPO and emergency practicedrills

• Energy reduction programme with tenantsthat consume the most energy


98% of our shopping centres achieved a tenantsatisfaction rating of 4 or above on a scale of 1 to6. In general, factors such as marketing events,shopping centre cleaning, security and shoppingcentre maintenance were evaluated favourablyacross our shopping centres. Factors such astemperature, background music and WC cleaningshowed room for improvement in some centres.Tenant action plans have been developed toaddress areas of concern identified at a shoppingcentre level.

Example in focus

At GaiaShopping in Portugal, one of our tenantssuggested that the shopping centre couldorganise a walk in the interest of promotinghealth and fitness and consideration for theenvironment. In response to the suggestion,GaiaShopping organised an 8km walk fortenants’ staff to a water treatment plant wherethey were given a talk about water management.


• CR Questionnaire for critical, repeatdevelopment suppliers

• CR audits with maintenance, security,cleaning and waste management suppliers

• Service Suppliers’ Evaluation Procedure

• Regular SHE Meetings

• SHE training, SPO and Safe Practice Index


29% of our critical development suppliersassessed through our CR questionnaire achievedan ‘A’ rating and 71% achieved a ‘B’ rating.

The results of the CR audits revealed that allsuppliers demonstrated good team work,organisation and time-keeping but knowledgeand implementation of Sonae Sierra’s safetyprocedures could be improved. In 2012 we willfollow-up with suppliers on improvement areasidentified.

Example in focus

Our suppliers at shopping centres in Spaininformed us that the regular SHE meetings arehelpful because staff responsible for workershave the opportunity to raise S&H issues andagree corrective actions which can be put inplace to address them.








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our Communities and visitors

Further details can be found under Communities and Visitors, pages 83 to 90.

local Authorities

the Media

Besides the specific feedback methods listed above, the Sierra Ombudsman is available for all stakeholders to present their complaintswith the guarantee that these will be responded to. In 2011, the Sierra Ombudsman received 149 complaints from employees, suppliers andtenants. The majority of complaints focused around tenant’ service; the quality and efficiency of services such as cleaning and security;parking access; lack of information; provision of smoking areas and complications with gift vouchers and promotions. All of these complaintswere responded to by email or letter and, in some cases, a meeting. Operational adaptations and improvements were made in response tosome requests.


• Community Advisory Panels (CAPs)

• Community and Visitor surveys

• Customer Contact Management System forvisitors to present suggestions and complaints

• Email updates on services and events at localshopping centres

• School liaison and staff volunteering activities

• Awareness-raising events with Safety andHealth and Environmental themes, includingthe celebrations of World Day for S&H atWork and World Environment Day


We increased levels of visitor satisfaction inPortugal and Spain and maintained satisfactionin Italy and Romania. In Germany and Greecevisitor satisfaction decreased marginally. Follow-up action plans have been developed in responseto the feedback received.

According to our Mall Tracking survey, 12% ofvisitors say that a company’s environmental andsocial track record influences which shoppingcentre they visit and 23% say that a company’senvironmental and social track record influenceswhat products they buy. We have developed astrategy orientated towards visitors with thisprofile.

Example in focus

At Manauara Shopping in Brazil, one of our CAPmembers raised the question about how we werehelping people with mobility difficulties to haveaccess to the shopping centre. We identified aproject which was being carried out by the FederalUniversity of the Amazon State (UFAM), theProgramme for Motor Activities for People withDisabilities (PROAMDE), which we contributedto through a campaign to raise awareness aboutrespecting the use of parking spaces which arereserved for people with disabilities. We alsoinstalled signs in the shopping centre car parkto make people aware about the reservedparking spaces.


• Community Advisory Panels (CAPs)

• Engagement at the shopping centre levelduring the planning, development andoperations phases


Local authority representatives are often invitedto participate in our CAPs, where they are invitedto raise any concerns and suggestions regardingshopping centre activities and present ideas forcollaboration. At Parque Atlântico in Portugal, forexample, a policeman raised the issue of safedriving. As a result, the shopping centre will holda workshop on the issue next year.

Example in focus

For several years, MaiaShopping in Portugal hasheld emergency drills in close collaboration withthe municipal civil protection, police and fireservices. Having worked together in emergencydrills, these teams collaborated for another typeof challenge: a football tournament which wasorganised by MaiaShopping in July. The teamsdrew, and the event helped to solidify the goodrelationships built up over the past years.


• Conferences and presentations

• Publication of articles in press coveringeconomic, social and environmental issues

• Interviews


In 2011, we received 5,082 cases of presscoverage, covering economic, environmentaland social aspects of our performance. Of these,96% were positive or neutral.

Example in focus

Favourable press coverage focused on our WaterSaving Campaign held in shopping centres inPortugal, Spain and Italy; activities undertakenas part of our Community Day; the Planet SierraTenant Awards; our Green Sales campaign inBrazil and the environmental and safety andhealth certification achieved at various shoppingcentres.








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economic AspectsDisclosures on Management Approacheconomic performance and Market presence

Goals and performance

Information about our strategic economic goals is provided in Our Business Strategy, Our Medium- to Long-Term Strategy, page 18.

Information and data concerning our market presence and economic performance in 2011 is provided in summary in Our Company,Where We Operate, page 12 and in The Year at a Glance, pages 4 to 5. A more detailed account of our economic performance can befound in Operational Performance on pages 32 to 38 and Consolidated Accounts, pages 39 to 45.

Policy

Our policies and practices in relation to risk management are explained in Our Company, Corporate Governance, pages 13 to 14 andOur Business Strategy, Risk Management, page 19.

Additional contextual information

Information about key economic successes and shortcomings and major changes can be found in Operational Performance on pages32 to 38.

Information about key economic successes and shortcomings, major changes and key strategies for implementing policies or achievingperformance can be found in Our Business Strategy, Our Medium- to Long-Term Strategy on page 18 and The Economic Context onpages 30 to 31.

Indirect economic Impacts

We do not have specific goals related with indirect economic impacts, but we do report on our impact on the local economy through thesupply chain in the Suppliers chapter on page 73 and on our impacts on local communities in the Communities and Visitors chapter on pages 83 to 86.

performance Indicators Compliance with Compliance withIndicator GRI G3.1 GRI CRESS

eC1 Direct economic value generated and distributed, including revenues, operating costs, employee Full Fullcompensation, donations and other community investments, retained earnings, and payments to capital providers and governments. (Core)








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€million

Direct economic value Generated 201.1Revenues + sales of assets 201.1economic value Distributed 250.9Operating Costs 58.3Employee wages and benefits 58.0Payment to capital providers 72.5Community Investment 0.003Payments to Government 62.1economic value Retained -49.8

Data Qualifying note: This indicator covers allcompany activities. Property taxes recharged totenants or land owners by Sonae Sierra areconsidered to be immaterial. Operating costs bycountry are reported on page 12.

eC2 Financial implications and other risks and opportunities for the organisation’s activities due to Full Fullclimate change and other sustainability issues. (Core)

Sonae Sierra’s CR Steering Committee, which is chaired by the CEO and includes other representatives of the Executive Board, has identified thatclimate change can present risks and opportunities for the business and Sonae Sierra has already performed studies to identify the potential financialrisks for its business due to climate change.

In the Energy and Climate chapter on pages 55 to 56 we have identified potential climate change impacts in the regions where we operate and describedthe outcomes of the studies we have performed to date on the specific climate change risks for our business. In the Water chapter on page 59 we havealso reported on the proportion of our assets which are located in areas where water is ‘stressed’ or ‘scarce’.


economic Aspects continued

performance Indicators (continued)

Compliance with Compliance withIndicator GRI G3.1 GRI CRESS

eC2 (continued)

We are aware that climate change is a complex phenomenon that could have further ramifications for our business activities in the different locations wherewe operate. To this end, we have defined an objective to develop and implement a long-term Climate Change Adaptation Strategy covering investment,development, management and corporate activities. In 2011 we had hoped to commission the development of this strategy, but we did not have enoughresources within our team to manage a project of this scale. In 2012 we will analyse again the feasibility of progressing with this project. Until we performa study such as this, we do not have significant insight into the risks and opportunities presented by climate change at an asset level or up and down ourvalue chain (i.e., risks to suppliers and tenants).

We have presented a summary of other sustainability risks and opportunities for our business on pages 20 to 21.

eC3 Coverage of the organisation's defined benefit plan obligations. (Core) Full Full

The only country where we have a defined benefits plan obligation is The Netherlands, where Sonae Sierra only employs three people (representing 0.3% of the total workforce). This benefit plan states that the employers' obligation to pay defined pension contributions must be met directly and notthrough a fund held and maintained exclusively for the purpose. This does not constitute an indefinite liability to the employer; the liability is limited tothe pension premium, which is only due as long as the employee is in the services of the company. The percentage of contribution is 5% for theemployee and the remainder for the employer.

eC4 Significant financial assistance received from government. (Core) Full Full

In 2011, Sonae Sierra did not receive any significant financial assistance from the government across any of its activities.

eC5 Range of ratios of standard entry level wage by gender compared to local minimum wage at significant – –locations of operation. (Additional)

Not reported

eC6 Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation. (Core) Full Full

Our proportion of spending on locally-based suppliers is presented on page 73.

We select the best suppliers based on the experience and historical transactions performed with our Company. Regarding our property managementbusiness, when suppliers are considered to be of equal merit we do give preference, according to internal procedures established, to locally basedsuppliers. Our development business initiated the development of a similar internal procedure in 2010. According to the internal procedures mentioned,Sonae Sierra does give preference to locally based suppliers as part of our day-to-day activities.

eC7 Procedures for local hiring and proportion of senior management and all direct employees, contractors Full Fulland sub-contractors hired from the local community at significant locations of operation. (Core)

The hiring policy of Sonae Sierra is based on merit, experience and other professional criteria, regardless of nationality. There is no policy that guaranteespreference to local employees.

eC8 Development and impact of infrastructure investments and services provided primarily for public benefit Full Fullthrough commercial, in-kind, or pro bono engagement. (Core)








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Infrastructure investments (€)

Portugal 1,164,657.32Data Qualifying note: This indicator covers all company activities. This investment was made as a result of acontractual agreement with the local council, and involved investments in developing theinfrastructure surrounding the LeiriaShopping centre.

eC9 Understanding and describing significant indirect economic impacts, including the extent – –of impacts. (Additional)

Not reported.


environmental Aspects








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Disclosures on Management Approachoverall

Goals and Performance

Our long-term objectives and 2012 targets in relation to environmental aspects can be found on pages 26, 27, 47, 57, 63 and 68.

Commentary on our environmental performance in 2011, including key success and shortcomings and changes to environmentalmanagement procedures which occurred during the reporting year can be found in Our Business Strategy, Safety, Health andEnvironment Management System on pages 24 to 26 and in each environmental impact area chapter under Environmental Performanceon pages 47 to 70.

Policy

Our Environmental Policy establishes our responsibility to be proactive in safeguarding the environment for both today’s and futuregenerations and sets out a series of principles, including our commitments to:

– Plan, implement and operate our shopping centres in an environmentally responsible way; and

– Continually improve the environmental performance of our products, process and business activities.

Organisational Responsibility

Ultimate responsibility for environmental aspects lies with Sonae Sierra’s CEO and Executive Committee. The Safety, Health andEnvironment (SHE) Steering Committee constitutes the senior level of decision making. This Committee establishes the Environmentalpolicy, goals and objectives and monitors progress in respect of these objectives. The Sustainability Office actively supports the SHESteering Committee and advises on environmental policies and standards. Responsibility for the implementation of Safety, Health andEnvironment Development Standards (SHEDS) and Safety, Health and Environment Management System (SHEMS) procedures isassigned to all leaders and managers in the line organisation, who are also required to demonstrate a strong visible managementcommitment. Finally, our organisation as a whole is supported by the SHE network, which provides advice on S&H, environmentalmanagement and technical issues.

Training and Awareness

Within the framework of our SHEMS, we operate a Competence, Training and Awareness Procedure. In accordance with this procedure, theSustainability Office and Human Resources (HR) Department use a competence matrix to define the skills and knowledge required for eachaspect of the SHEMS to be effectively implemented by Sonae Sierra’s employees. Each year, our HR Department identifies SHE training andawareness needs with reference to the staff assessment process, with a particular focus on those employees whose job role impacts on SHEissues, or who have responsibilities for SHE management. General training needs are also identified by the Sustainability Office with supportfrom the Country SHE Coordinator. All training needs are recorded in the Corporate Training and Awareness Plan and communicated to allemployees involved and their line managers. Site Training and Awareness Plans are also developed based on the Corporate Plan, and coverinitial and continuous training and awareness for personnel such as new employees, service suppliers’ workers and tenants. An evaluationprocess is performed based on each training session, allowing us to monitor the effectiveness of training delivered.

Monitoring and Follow-up

For an introduction to our SHEMS, see Our Business Strategy, Safety, Health and Environment Management System on pages 24 to 26.

Our SHEMS includes a Report, Performance Measurement and Monitoring procedure to monitor, evaluate and report SHE performance ona regular basis. A series of tools and applications exist to assist the monitoring and reporting tasks, such as the SHE Portal and the CRPortal. Performance results are evaluated on a timely basis by all the involved entities, including the SHE Steering Committee, ExecutiveCommittee and Board of Directors.

We have established an Incident Report and Investigation procedure to report, investigate, communicate and act to prevent further incidents.Its main purpose is to implement corrective and preventive measures that are effective in avoiding similar situations that can lead to furtheraccidents. Relevant importance is given to the communication of incidents; their investigation; the determination of their root cause; thedefinition of proper corrective and preventive measures, and also the communication of learning points throughout the organisation.

Our Environmental Policy, which is available on our corporate website athttp://www.sonaesierra.com/en-gb/corporateresponsibility/crmanagement.aspx



environmental Aspects continued

Disclosures on Management Approach (continued)

We also have a Non-conformities, Preventive and Corrective Actions procedure in place to:

– Identify and record actual and potential non-conformities;

– Implement correction measures to minimise their consequences;

– Analyse non conformity causes; and,

– Define corrective or preventive actions and review their effectiveness.

We operate an annual Audit Programme to systematically audit our SHEMS at corporate and at site levels, covering all our shoppingcentres in operation and projects under development.

In addition to the procedures described above, we monitor the number and proportion of complaints we receive about environmental concerns:








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Complaints of an environmental nature (number and %)Shopping Centres and Corporate offices 2011 2010 2009 2008

Total number of complaints 3,958 4,323 5,302 5,095

Total number of environmental complaints 119 136 214 164

Proportion of complaints about environmental issues (%) 3.0% 3.1% 4.0% 3.2%

projects under developmentTotal number of environmental

complaints 10

Data Qualifying note: This indicator includes all shopping centresowned by Sonae Sierra and in operation forthe full reporting year; Sonae Sierra’s eightmain corporate offices and all projects underdevelopment during the reporting period.Complaints of an environmental naturereceived in 2011 included complaints abouttemperature; air quality; smoking in oraround shopping centres; noise; odours fromsome tenant units or from waste.

Additional Contextual Information

Details of the environmental risks and opportunities that we have identified as being most relevant for our business are provided on page 20.Key strategies for implementing our environmental objectives and targets are explained in each environmental impact area chapter, onpages 47, 57, 63 and 68.

Materials

See Suppliers, pages 72 and 75 to 77.

energy

See Energy and Climate, pages 47 to 54.

water

See Water, pages 57 to 62.

biodiversity

See Biodiversity and Habitats, pages 68 to 70.

emissions, effluents, and waste

See Energy and Climate, pages 47 to 54; Water, on page 62 and Waste, pages 63 to 67.

We focus on energy efficiency as the main strategy for reducing our carbon dioxide (CO2) emissions; we have not established a policy withregards to carbon off-setting although we have compensated for CO2 emissions in relation to some minor events.




land Degradation, Contamination and Remediation

In accordance with our Land Use Strategy, we aim to treat contaminated soil rather than disposing of it in landfill. In cases whereremediation of contaminated land is required, each project must investigate the possibility of employing the ‘in situ bio-remediation’technique by identifying organisations which might be able to undertake this remediation work and the associated costs needed as wellas business impact. This investigation is made as part of our Due Diligence process.

Our SHEDS prohibit the use of harmful materials such as asbestos, lead, chromium, mercury and manmade mineral fibres. Suppliers aremade aware of the prohibited materials list and the SHEDS audit checks that the prohibited materials list has been adhered to. Since notall of the shopping centres in our operational portfolio have been developed by Sonae Sierra or in accordance with the SHEDS, we followall legal requirements and best practices to ensure that harmful materials are managed where they exist. ‘Harmful materials’ is one ofthe environmental aspects which is addressed through the Due Diligence process for the acquisition of existing shopping centres.

products and Services

See Our Business Strategy, Safety, Health and Environment Management System, pages 24 to 26.

Regarding indoor air quality, we have a corporate procedure applicable to all shopping centres (and a similar one for offices) to guaranteethat acceptable indoor air quality is maintained. This involves conducting regular monitoring of critical air quality indicators, includingVolatile Organic Compounds (VOC) emissions; periodic indoor air quality audits (in addition to those requested by local authorities) which cover a range of different parameters; and Legionella monitoring. Four of our air quality parameters are monitored on-line andtransmitted to the public who visit our shopping centres through television screens in the mall areas.

During the design phase, the SHEDS include standards which guarantee the use of best equipment for Legionella control and the on-going monitoring of indoor air quality parameters. For example, cooling towers must be made from materials that are corrosion resistant;must not contribute to microbiological growth; must be easy to clean and should entail drift eliminator devices. Shopping centres musthave the capacity to measure indoor air quality against the parameters of air temperature; relative humidity; CO2 and carbon monoxide(CO) in different areas of the building.

Compliance

Our SHEMS ensures that, as a minimum, Sonae Sierra complies with all SHE legislation and regulations in the countries where itoperates. The legal and other requirements procedure is established and maintained to identify the legal and other requirements thatare applicable to Sonae Sierra’s activities and periodically evaluate compliance with these.

transport

See Energy and Climate, pages 47 and 50.








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en1 Materials used by weight, value or volume. (Core) Full Partial

Suppliers, page 77.

en2 Percentage of materials used that are recycled and reused input materials. (Core) Full Partial

Suppliers, page 77.

en3 Direct energy consumption by primary energy source. (Core) Full Partial








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Fuel Type Use kWh GJ

Natural Gas CHP at MaiaShopping and NorteShopping 79,752,778 287,110Natural Gas Boilers 14,833,333 53,400Diesel Fleet cars and business travel in staff's own cars 3,818,611 13,747Petrol (Gasoline) Fleet cars and business travel in staff's own cars 354,444 1,276Ethanol Fleet cars and business travel in staff's own cars 301,944 1,087

totAl 99,061,111 356,620

Data Qualifying note: This indicator includes all shopping centres owned by Sonae Sierra and in operation for the full reporting year; our eight main corporate offices and energy consumed by mobile sources such as the company car fleet, with the following exceptions:

• Natural gas consumed by boilers does not include the Düsseldorf office because there are no meters installed to measure it.

• Electricity produced on site (and consumed) at in Manauara Shopping in Brazil is excluded because there are no meters installed to measure the electricity produced on site.

• Energy consumed by the company car fleet of shopping centres in Brazil excludes the first three months of the year, because reliable data could not be obtained by the São Paulo office.

It was verified that the type of energy consumed by the company car fleet of Athens office is petrol and not diesel as reported in previous years.

The conversion factors used to covert fuel to Gigajoules are endorsed by the Portuguese Environmental Agency. The calculation of the intermediate energy purchased and consumed is basedon publicly available information. The conversion factor used to convert kWh to GJ is 0.0036, as defined by the GRI G3.1 Guidelines.





performance Indicators (continued) Compliance with Compliance withIndicator GRI G3.1 GRI CRESS

en4 Indirect energy consumption by primary source. (Core) Full Partial

Sonae Sierra’s total indirect energy consumption includes:

• Electricity consumption (245,834,455kWh/885,004GJ);

• Chilled water consumption (9,841,062kWh/35,428GJ); and

• High temperature hot water consumption (4,309,874kWh/15,516GJ).

The total corresponding primary energy consumed in its production is 502,378,771 kWh/ 1,808,563GJ, taking into account the losseswhich occur in electricity production, transportation and distribution. Indirect energy consumption by primary source and by country ispresented in the table below.

electricityNon-renewable energy Renewable energy Total

Country GJ kWh GJ kWh GJ kWh

Portugal 486,350 135,097,222 292,440 81,233,333 778,790 216,330,556Spain 156,184 43,384,444 53,904 14,973,333 210,088 58,357,778Italy 95,780 26,605,556 31,700 8,805,556 127,480 35,411,111Germany 142,686 39,635,000 31,418 8,727,222 174,104 48,362,222Greece 24,473 6,798,056 3,794 1,053,889 28,267 7,851,944Romania 14,903 4,139,722 5,494 1,526,111 20,397 5,665,833Brazil 42,269 11,741,389 343,228 95,341,111 385,497 107,082,500

total 962,645 267,401,389 761,978 211,660,555 1,724,623 479,061,944

heatNon-renewable energy Renewable energy Total

Country GJ kWh GJ kWh GJ kWh

Portugal 58,755 16,320,833 – – 58,755 16,320,833Spain – – – – – –Italy 10,952 3,042,222 596 165,556 11,548 3,207,778Germany 11,695 3,248,611 1,942 539,444 13,637 3,788,056Greece – – – – – –Romania – – – – – –Brazil – – – – – –

total 81,402 22,611,666 2,538 705,000 83,940 23,316,667

Data Qualifying note: This indicator includes all shopping centres owned by Sonae Sierra and in operation for the full reporting year as well as seven out of eight main corporate offices.

In 2011, C.C. Continente de Portimão in Portugal was undergoing refurbishment works from September to December. During this period, electricity consumption for the refurbishment project wasprovided by the shopping centre and could not be metered separately. Consequently, electricity consumption values for this shopping centre were estimated for this period, in order to excludeconsumptions from the refurbishment works.

The Maia office in Portugal was excluded since it is in a shared floor/building, with no individual energy meters. This indicator also excludes high temperature hot water consumption from RiverPlaza Mall in Romania because this centre does not have separate meters for tenants’ consumption. In 2011, Centro Colombo in Portugal reported chilled water purchased and consumed inJanuary only. Sonae Sierra no longer reports chilled water at this centre because in February 2011 the cogeneration stopped functioning and started the process of converting to natural gas,ceasing the chilled water supply to the centre.

The calculation of indirect energy consumed in the production of the intermediate energy purchased and consumed by Sonae Sierra is based on publicly available information. The conversionfactor used to convert kWh to GJ is 0.0036, as defined by the GRI G3.1 Guidelines. The desegregation of primary energy was based on the International Energy Agency (IEA) Energy Balances ofOECD and non OECD Countries published in 2011.






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CRe1 Building energy intensity. (Core) – Partial

Building Energy Intensity, Building Energy Intensity, Shopping Centres Corporate Offices

Country (kWh/ m2 mall and toilet area) (kWh/ m2)

Portugal 1,024 195Spain 317 100Italy 832 57Germany 707 n.d.Greece 1,109 296Romania n.d. 69Brazil 582 262

total 747 177

en5 Energy saved due to conservation and efficiency improvements. (Additional) Full Partial

Relevant financial data, actual or estimated, such as money invested in conservation and efficiency improvements, and money savedthrough energy reduction initiatives is presented on page 53.








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Data Qualifying note: See the data qualifying note forindicator EN4 above. This indicatorincludes 48 out of 49 shopping centresowned by Sonae Sierra and in operationfor the full reporting year and six out ofeight main corporate offices. TheDüsseldorf office was also excludedfrom this indicator since there are nometers in place to enable us to measurenatural gas consumed by boilers.

GJ kWh

Offices 56 15,556Shopping Centres 36,396 10,110,000

total 36,452 10,125,556

Data Qualifying note: This indicator includes 47 out of 49 shopping centres owned by Sonae Sierra and inoperation for the full reporting year as well as seven out of eight main corporate offices.LeiriaShopping in Portugal, Manauara Shopping in Brazil and the Maia office in Portugalwere excluded because data was not available for 2010 and/or 2011. The conversionfactor used to convert kWh to GJ is 0.0036, as defined by the GRI G3.1 guidelines.




en6 Initiatives to provide energy-efficient or renewable energy based products and services, and reductions Full Fullin energy requirements as a result of these initiatives. (Additional)

GHG emissionsShopping centres Reduction reductionin operation and corporate offices Initiative description (GJ) (Kg CO2)

GranCasa; Luz del Tajo; Plaza Mayor; Substitution of lamps with LED or more efficient lighting. 55447 24,427Parque Principado (Spain)Manauara Shopping; Parque D. Pedro Shopping; Pátio Brasil Shopping; Shopping Metrópole; Shopping Penha; Shopping Plaza Sul (Brazil)

CascaiShopping (Portugal) Installation of new, more efficient HVAC equipment 57648 24,236Valle Real (Spain) (including Air Treatment Units, chillers and cooling towers).Airone; Freccia Rossa; Valecenter (Italy)Pátio Brasil Shopping (Brazil)

Centro Colombo; Centro Vasco da Gama; Installation of electric car battery charging systems. n.d. n.d.GaiaShopping; NorteShopping (Portugal)

Plaza Mayor (Spain) Improvement of the lighting management system and/ n.d. n.d.Alexa; Loop5 (Germany) or installation of lighting sensors.River Plaza Mall (Romania)

Zubiarte; La Farga (Spain) Improvement of the energy monitoring and/or metering system. n.d. n.d.Münster Arkaden (Germany)

LoureShopping (Portugal) Improvement of the building’s insulation. n.d. n.d.Freccia Rossa (Italy)

MadeiraShopping; Parque Atlântico (Portugal) Implementation of free cooling. n.d. n.d.

Gli Orsi (Italy) Shut-down of the HVAC system during winter. . 1,853 97,812

Münster Arkaden (Germany) Installation of energy sensors and equipment to turn off heating n.d. n.d.consumption during the summer.

Shopping Plaza Sul (Brazil) Installation of paper disposal to clean hands in the toilets, in order n.d. n.d.to decrease the use of electric hand driers.

Parque Principado (Spain) Radiation reduction inside the mall. n.d. n.d.

NorteShopping (Portugal) Replacement of electric reactive armour in the car park. n.d. n.d.

Athens office (Greece) Replacement of electric ballasts. n.d. n.d.

GHG emissionsReduction reduction

Completed development projects Initiative description (GJ) (Kg CO2)

Colombo office Tower Ocidente (Portugal) The office building façade was designed in a way that allows a high n.d. n.d.degree of thermal insulation.

The HVAC system introduced in the offices is an induction system with units n.d. n.d.which do not require an engine, thus reducing noise and energy consumption.

The HVAC system in the open areas uses induction units installed in the false ceiling. This system works with four tubes, receiving both cold and hot water, making it especially efficient.

The office uses the Lighting Novaluna model made by SITECO, n.d. n.d.which allows for low energy use and maximises the dispersion of light.

Shopping Metrópole expansion (Brazil) Introduction of thermal insulation and high efficiency electric motors n.d. n.d.on the HVAC system.

Data Qualifying note: This indicator covers all shopping centres owned by Sonae Sierra and in operation for the full reporting year; all main corporate offices and all projects under development completed during the reporting year.








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47 Includes nine out of ten shopping centres listed in the left-hand column. Data was not available from Shopping Plaza Sul in Brazil. The same comment applies to the GHG emissions reduction.48 Includes five out of six shopping centres listed in the left-hand column. Data was not available from CascaiShopping in Portugal. The same comment applies to the GHG emissions reduction.





Building Water Intensity Country (litres/visit)

Portugal 6.64Spain 5.55Italy 6.21Germany 3.01Greece 7.84Romania 4.70Brazil 9.29

total 6.88

Data Qualifying note: This indicator includes 47 out of 49 shopping centres owned by Sonae Sierra and inoperation for the full reporting year. Building water intensity is determined by thefollowing formula: (Total Water Consumption (excluding tenants) + Total WaterConsumption purchased on behalf of tenants)*1,000)/"Number of visits in the reportingyear across the owned portfolio). Parque Atlântico in Portugal was excluded because theshopping centre is not able to measure the water purchased on behalf of the tenants.Loop5 in Germany was excluded due to problems with water meters and the BMS notbeing fully operational during 2011. Tenants water consumptions from AlbufeiraShoppingand RioSul Shopping in Portugal; GranCasa in Spain and Airone in Italy were excludedbecause tenants at these centres pay for their own water consumption directly.


en7 Initiatives to reduce indirect energy consumption and reductions achieved. (Additional) Partial Partial

ReductionShopping centres in Operation Initiative description (GJ)

All countries Identified the three tenants with the highest energy consumption in each country n.d.and engaged with them in an energy reduction programme.

Shopping Penha (Brazil) Use of video conference which will decrease business travel to join meetings. n.d.

Letter sent to tenants asking them to turn off lighting when the shopping centre is closed. n.d.

Data Qualifying note: This indicator covers all shopping centres owned by Sonae Sierra and in operation for the full reporting year; all main corporate office and all projects under development completed during the reporting year.

en8 Total water withdrawal by source. (Core) Full Partial

Water, page 58. Actions to mitigate and reduce water consumptions, including reuse and recycling solutions, and water savings as a result of these actions, are reported under EN26 and within the water chapter on pages 58, 61 and 62. Relevant financial data (actual andestimated), such as money invested in conservation and efficiency improvements, and money saved through water reduction initiativesis presented on page 61.

en9 Water sources significantly affected by withdrawal of water. (Additional) – –

Not reported.

en10 Percentage and total volume of water recycled and reused. (Additional) Partial Partial

Water, page 58.

CRe2 Building water intensity. (Core) – Full






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Data Qualifying note: This indicator covers all shopping centres owned by Sonae Sierra and in operation for thefull reporting year as well as all eight main corporate offices. The information reportedcovers NOx, SOx and other significant air emissions from boilers at shopping centres andfrom on-site cogeneration systems at two of our centres in Portugal (MaiaShopping andNorteShopping). Emissions from mobile sources such as the company car fleet and theemergency generators have not been included here. Data from boilers at the Düsseldorfoffice were unavailable. The calculations of emissions from boilers have been made usingthe figures for natural gas consumption and associated emissions conversion factors.The methodology used is consistent with the Intergovernmental Panel on ClimateChange (IPCC) and the Portuguese Environmental Agency (Agência Portuguesa doAmbiente, APA). The calculations of emissions from cogeneration have been madebased on direct measurements of the NOx, SOx and other significant air emissions. Thetotal values for these emissions in 2011 have been calculated using the average of thetwo most recent measurements from each engine and multiplied by the total number ofhours of their operation during the year.

Air emissions by type (kg)

NOx 13,486Non Methane Volatile Organic Compounds (NMVOC) 2,906Particulate Matter (PM) 2,187SOx 1,242Volatile Organic Compounds (VOC) 128,483

totAl 148,304


en11 Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of Full Fullhigh biodiversity value outside protected areas. (Core)

Biodiversity and Habitats, page 69.

en12 Description of significant impacts of activities, products, and services on biodiversity in protected areas Full Fulland areas of high biodiversity value outside protected areas. (Core)


en13 Habitats protected or restored. (Additional) Full Full

No habitats were protected or restored during 2011.

en14 Strategies, current actions, and future plans for managing impacts on biodiversity. (Additional) Full Full


en15 Number of IUCN Red List species and national conservation list species with habitats in areas affected – –by operations, by level of extinction risk. (Additional)

Not applicable.

en16 Total direct and indirect greenhouse gas emissions by weight. (Core) Full Partial

Energy and Climate, pages 48 and 49.

en17 Other relevant indirect greenhouse gas emissions by weight. (Core) Full Full

Energy and Climate, pages 48 and 49.

CRe3 Greenhouse gas emissions intensity from buildings. (Core) – –

Not reported.

CRe4 Greenhouse gas emissions intensity from new construction and redevelopment activity. (Core) – –

Not reported.

en18 Initiatives to reduce greenhouse gas emissions and reductions achieved. (Core) Full Full

Reported under EN6 on page 129.

en19 Emissions of ozone-depleting substances by weight. (Core) – –

Not applicable. We have not reported on emissions of ozone-depleting substances because the only emissions of ozone-depletingsubstances that result from our activities are during the usage and replacement of air conditioning systems. We operate a proceduredefined under our SHEMS regarding the management of equipment that uses ozone-depleting substances and this includes aprogramme to replace equipment that uses HCFC.

en20 NOx, SOx, and other significant air emissions by type and weight. (Core) Full Full






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Data Qualifying note: This indicator refers to all spills of over 2.5 litres.This indicator includes all the significant spills ofchemicals, oils, fuels, waste and other type of spillsin shopping centres owned by Sonae Sierra and inoperation for the full reporting year. It alsoincludes Sonae Sierra’s eight main corporateoffices and projects that were under developmentand/or completed during the reporting year. In2011, four spills were reported in Sonae Sierrashopping centres: two fuel spills in ShoppingCampo Limpo in Brazil; one oil spill in Plaza Mayorin Spain and one food oil spill in Loop5 in Germany.

Operations

Shopping Plaza Campo Limpo Mayor Loop5

Total number of significant spills 2 1 1

total 4

Operations

Shopping Plaza Campo Limpo Mayor Loop5

Total volume of significant spills (litres) 60 4 50

total (litres) 114

Area/Volume Site decontaminated

Le Terrazze Brownfield 59,250m2

Data Qualifying note: This indicator covers all projects underdevelopment during the reporting year.


en21 Total water discharge by quality and destination. (Core) – –

Not applicable. Sonae Sierra does monitor wastewater quality at all owned shopping centres, but the wastewater produced is domesticrather than industrial effluent and therefore does not fit within the indicator protocol defined by the GRI.

en22 Total weight of waste by type and disposal method. (Core) Full Full

Waste, page 64.

en23 Total number and volume of significant spills. (Core) Full Full

en24 Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the – –Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally. (Additional)

Not applicable.

en25 Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly – –affected by the reporting organisation’s discharges of water and runoff. (Additional)

Not applicable.

CRe5 Land and other assets remediated and in need of remediation for the existing or intended land use – Fullaccording to applicable legal designations. (Core)

The land at Le Terrazze was contaminated as a consequence of the actions of a third party. The seller carried out the decontamination before the start of the Le Terrazze project.






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49 Includes five out of eight shopping centres listed in the left-hand column. Data was not available from Münster Arkaden in Germany and Pátio Brasil Shopping and ShoppingMetrópole in Brazil.

50 The other five shopping centres listed in the left-hand column were not able to estimate the increase in their recycling rates as a result of the specific measures undertaken.51 Reduction of Chemical Oxygen Demand (COD) from 1,100 to 780mg O2/litre; reduction of Sulphides from 9.5mg SO3/litre to 1.3 mg SO3/litre.52 Reduction of COD from 4,257 to 472mg O2/litre; reduction of Biological Oxygen Demand (BOD) from 540 to 108mg O2/litre; reduction of oils/fats from 2005 to 20.6 mg/litre;

reduction of inhibitor materials from 20.9 to 2 Eq/m3. 53 Several other Sonae Sierra shopping centres installed rainwater harvesting systems in 2011, but did not have data available to report on rainwater collected. See page 58 for

further details.


en26 Initiatives to enhance efficiency and mitigate environmental impacts of products and services, and Full Fullextent of impact mitigation. (Core)

Shopping centres in operation,corporate offices and completed projects Initiative description extent of impact mitigation

All shopping centres Communication of ‘Environment Tips’ and ‘Quick Wins’ to all n.a.Sonae Sierra employees to increase environmental awareness.

All shopping centres in Portugal, Spain and Italy Awareness campaign to encourage water saving. n.a.

GranCasa (Spain) Installation of equipment to reduce water use in toilets 2,274m3 of water saved49

Münster Arkaden (Germany) (e.g., waterless urinals, flow reduction devices on taps and flushes).Boavista Shopping; Pátio Brasil Shopping; Shopping Campo Limpo; Shopping Metrópoleexpansion; Shopping Penha; Tivoli Shopping (Brazil)

Centro Vasco da Gama; GuimarãeShopping; Installation of equipment to improve waste segregation, recycling Additional four tonnes of RioSul Shopping (Portugal) and/ or reduce waste production in the shopping centre. waste recycled in 2011 at Parque Principado (Spain) River Plaza Mall;Loop5 (Germany) 94.2 tonnes of non-recyclableRiver Plaza Mall (Romania) glasses sent to incinerationPátio Brasil Shopping (Brazil) instead of landfill at

RioSul Shopping50

ArrábidaShopping; MadeiraShopping; Implementation of measures to improve wastewater quality. ViaCatarina: Improvement in RioSul Shopping; ViaCatarina (Portugal) wastewater quality against La Farga (Spain) the COD and Sulphides Münster Arkaden (Germany) parameters51

La Farga: Improvement in wastewater quality against the COD, BOD, Oils/fats and inhibitor materials parameters52

8a Avenida; MaiaShopping (Portugal) Installation of water meters. n.d.La Farga (Spain)Alexa; Münster Arkaden (Germany)Pantheon Plaza (Greece)

CoimbraShopping; LoureShopping (Portugal) Implementation of alarms for water leaks through the BMS. n.d.Parque D. Pedro Shopping; Shopping Metrópole (Brazil)

Centro Colombo (Portugal) Use of a rainwater harvesting system53. Centro Colombo: 1,168m3; andShopping Plaza Sul (Brazil) Shopping Plaza Sul: 61.69m3

rainwater collected

C.C. Continente de Portimão; Installation of ‘Ponto Electrão’, an electronics recycling n.d.MadeiraShopping (Portugal) point for communal use.

Airone (Italy) Substitution of the older chiller which used R22 with a new one Eliminates the risk of which uses R407c. releasing R22, which has

higher Global Warming Potential than R407c

Valecenter (Italy) Adjustments to the operation of the existing chiller and installation 2,000m3 of water savedof a more efficient cooling tower.






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en26 (continued)

Shopping centres in operation,corporate offices and completed projects Initiative description extent of impact mitigation

8a Avenida (Portugal) Noise reduction measures. n.d.

AlgarveShopping (Portugal) Awareness campaign on environmental damage caused n.d.by of plastic bag use.

GaiaShopping (Portugal) Implementation of water management measures, n.d.including changes to the irrigation system.

NorteShopping (Portugal) Implementation of a system for filtering water withdrawn on site. n.d.

Pantheon Plaza (Greece) Installation of gas leakage sensors on chillers. n.d.

Substitution of plants in the food court with ones which require less water. n.d.

Parque D. Pedro Shopping Updating of “AS-BUILT”. n.d.

Maia office Awareness session on eco driving. n.d.

Athens office Binding of scrap paper to make notebooks. 12kg of paper reused

Shopping Metrópole expansion Use of materials with recycled content and materials sourced locally 27% of materials had or regionally. recycled content; 88% of

heavy materials were of local or regional origin; 84% of thelight materials were of local or regional origin54

Data Qualifying note: This indicator includes all shopping centres owned by Sonae Sierra and in operation for the full reporting year; all main corporate offices and all projects under development completed during the reporting year. For the Colombo office Tower Ocidente project, it was not possible to determine the initiatives implemented because Sonae Sierra’s Environmental Standards for Retail Development (ESRD) were not applicable to this project.

en27 Percentage of products sold and their packaging materials that are reclaimed by category. (Core) – –

Not applicable. The disposal of products and packaging materials at the end of a use phase is not applicable to our shopping centre business.

en28 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance Full Fullwith environmental laws and regulations. (Core)

operations and offices Number ofMonetary cases brought Number of Number of

value paid of through dispute monetary non-monetarysignificant fine resolution sanctions sanctions

(€) mechanisms received received

GaiaShopping 0 1 0 0

La Farga 6,010 0 1 0

Development Number ofMonetary cases brought Number of Number of

value paid of through dispute monetary non-monetarysignificant fine resolution sanctions sanctions

(€) mechanisms received received

Le Terrazze 200 0 1 1

Boulevard Londrina Shopping 0 0 0 1

Data Qualifying note: This indicator includes all shopping centres owned by Sonae Sierra and in operation for the full reporting year; our main corporate offices and all projects that were under development and/or completed during the reporting year. Across our operational portfolio, Sonae Sierra received one monetary fine in 2011 with a value of €6,010 at La Farga in Spain. There was one case brought through dispute resolution mechanisms for GaiaShopping in Portugal related with the ineffective functioning of the smoking area. This process was not solved in 2011, andGaiaShopping is still waiting for a decision. Across projects on-going or concluded in 2011, Sonae Sierra received one monetary fine with a value of €200 and one non-monetary sanction for Le Terrazze in Italy, and one non-monetary sanction for Boulevard Londrina Shopping in Brazil. Sonae Sierra does not have a threshold of significance in terms of fines. All fines are reported regardless of their value.






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54 The proportion of materials with recycled content and local and regional origin were calculated by value of spend.





Data Qualifying note: This indicator includes all shopping centres owned bySonae Sierra and in operation for the full reporting year;all eight main corporate offices and all projectsconcluded during the reporting period (including theShopping Metrópole expansion project which wascompleted during the reporting year). Environmentalinvestments for shopping centres are based on thevalues obtained from Sonae Sierra’s EnvironmentalManagement Accounting (EMA) Model. Information forall countries where Sonae Sierra has shopping centres inoperation is available in the EMA. The values extractedfrom the EMA were arranged using a matrix whichmatched the main environmental activities defined inthe model with the corresponding categories required forEN30 as defined by the GRI guidelines. Environmentalinvestments for offices include costs related withinternal audits; services for legislation updates, andmeasures to improve water and energy efficiency.Environmental investments for the Shopping Metrópoleexpansion project include costs related with wastemanagement activities; wastewater monitoring; noisemeasurements; internal audits and other items. Theconversion factor used to convert Brazilian Reais intoEuros was 0.43061. The conversion factor used toconvert Romanian RON into Euros was 0.23618.

total environmental investments (€) by type for shopping centres

Prevention and environmental management costs 8,085,171

Waste disposal, emissions treatment, and remediation costs 9,201,238

totAl 17,286,409

total environmental investments (€) by type for corporate offices

Prevention and environmental management costs 21,312

Waste disposal, emissions treatment, and remediation costs 478

totAl 21,790

total environmental investments (€) by type for projects under development

Prevention and environmental management costs 42,629

Waste disposal, emissions treatment, and remediation costs 410,346

totAl 452,975


en29 Significant environmental impacts of transporting products and other goods and materials used for the Full Fullorganisation’s operations, and transporting members of the workforce. (Additional)

We have considered as significant impacts of transporting members of the workforce:• The values reported under EN3 (diesel and petrol consumed by the company car fleet and business travel in staff owned cars);• The values reported under EN16 (GHG emissions associated with the company car fleet); and• The values reported under EN17 (GHG emissions associated with business air travel and staff commuter journeys).

Regarding the impacts of transporting products and other goods and materials for Sonae Sierra operations (development andmanagement activities), it is not possible to quantify their impact, although measures to mitigate such impacts are implemented (forexample, the implementation of the SHEDS during the construction phase, and promoting local procurement). Sonae Sierra’s corporateSHEMS encompasses a methodology for the Identification and Evaluation of Environmental Aspects and Impacts. In the guidelines forenvironmental significance assessment the different energy uses and their sources are taken into account.

The environmental impacts of transporting members of the organisation’s workforce are mitigated by:

• The full implementation of the SuperCom project across our offices, which has helped us to reduce emissions associated with staffbusiness travel. SuperCom has involved the installation of video- and audio-conferencing facilities in all meeting rooms and enablingstaff to hold video-conferences and telephone calls through their laptops; and

• Proceeding with the purchase of electric cars for the company car fleet in Portugal.

en30 Total environmental protection expenditures and investments by type. (Additional) Full Full






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Labour Practices and Decent Work AspectsDisclosures on Management ApproachEmployment, Training and Education, Diversity and Equal Opportunity


Our long-term objectives and 2012 targets in relation to Employees aspects can be found on pages 28 and 91 respectively.

Commentary on our performance in relation to Employees aspects in 2011, including key success and shortcomings and changes tohuman resources procedures which occurred during the reporting year can be found in Employees, pages 92 to 95.

Policy

Our Code of Conduct is based around six Ethical Principles, which include the respect for the dignity and rights of each individual; respectfor individual identity (independent of race, gender or religion) and promoting a balance between personal and professional life.

We also have four other policies in place in relation to employment issues. These are:

– Non-Discrimination and Diversity Policy – Part-Time Working Policy

– Working From Home Policy – Flexible Work Schedule Policy


Ultimate responsibility for Employees aspects lies with Sonae Sierra’s CEO and the Executive Committee. Operational responsibilityis divided among line managers within each of our business divisions, from senior management downwards. The Human Resources(HR) Department lends a supporting role by proactively intervening in the development and execution of the HR strategy andpolicies and providing quality HR advice to business leaders.


We provide a regular integration scheme for new employees, called JUMP, which includes a specific sustainability programme and anexplanation of Sonae Sierra’s policies and its Code of Conduct, besides the role of the Sierra Ombudsman.

In 2011, we launched ‘HR Knowledge Pills’ for our employees and managers. These are sessions prepared by our local HR teams whichfocus on specific HR issues (e.g., information on legal requirements and Sonae Sierra HR procedures). ‘HR Knowledge Pills’ havealready been held in Spain and Italy focusing on Maternity and Paternity Leave, and we will roll them out across other countrieswhere we operate in 2012.

We also developed and carried out two internal training initiatives; ‘LISTEN’, which intends to raise awareness about the importanceof giving feedback to colleagues; and ‘HIRE’ which trained line managers on how to deliver recruitment interviews.

For details about employees’ career development and individual training plans, see page 94.


Information about our Employee Survey and the outcomes of the 2011 Employee Survey are explained on pages 91 and 92 respectively.

Our Personal Assessment and Career Development process ensures that all our employees receive regular performance and careerdevelopment reviews, and have the opportunity to comment on the assessment made by their line manager. We have developedguidelines to conduct 360˚ appraisals for all managers and team leaders who have more than five employees reporting directly tothem, and the 360˚ appraisals now occur every two years. Managers and team leaders who are subject to this process are encouragedto meet with the HR team to better understand their results, and they may select one competency to improve and establish adevelopment plan together with HR in order to do this.

With respect to training and development, we monitor employees’ feedback on all training sessions attended.

The Sierra Ombudsman, which is described on page 14, constitutes a formal procedure which employees (as well as other stakeholders)can use to report work-related concerns including any breaches in our Code of Conduct.


Details of the employees-related risks and opportunities that we have identified as being most relevant for our business are providedon page 21. Key strategies for implementing our Employees objectives and targets are explained in the Employees impact area chapter,on page 91.

In recent years, in the context of a challenging economic climate, we have created a new business unit with the purpose of sellingproperty services to third parties. This is also a strategy that will allow us to maintain our people and their know-how and expertise.

Our Code of Conduct is available here on our corporate website: http://www.sonaesierra.com/en-gb/corporateresponsibility/crmanagement.aspx








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labour practices and Decent work Aspects continued


occupational health and Safety


Our long-term objectives and 2012 targets in relation to safety and health (S&H) aspects can be found on pages 28 and 97 respectively.

Commentary on our S&H performance in 2011, including key success and shortcomings and changes to S&H management procedureswhich occurred during the reporting year can be found on pages 96 to 103.

Policy

Our Safety and Health Corporate Policy establishes our commitment to conduct our activities so that risks towards people and ourassets are minimised, and to achieve excellent levels of social responsibility, safety and health. It is our principle that the preventionof risk is a management responsibility, and that responsibility for S&H management belongs to our entire organisation.

Our Responsible Procurement Policy commits us to integrating CR criteria into our Service Suppliers’ Management Procedures so as to ensurethat the social and environmental performance of our suppliers is considered when tendering, managing and evaluating supplier contracts.


Ultimate responsibility for S&H aspects lies with Sonae Sierra’s CEO and Executive Committee. The Safety, Health and Environment(SHE) Steering Committee constitutes the senior level of decision making; this Committee establishes the S&H policy, goals andobjectives and monitors progress with respect to these objectives. The Sustainability Office actively supports the SHE SteeringCommittee and advises on S&H policies and standards. Responsibility for the implementation of our Safety, Health andDevelopment Standards (SHEDS) and Safety, Health and Environment Management System (SHEMS) procedures is assigned to allleaders and managers in the line organisation, who are also required to demonstrate a strong visible management commitment.Finally, our organisation as a whole is supported by the SHE network, which provides advice on S&H, Environment management andtechnical issues.


Our S&H Corporate Policy commits us to promoting safety training among all our employees. Our SHEMS includes a “Competence,training and awareness” procedure, whereby a competence matrix is used to identify the level of training required for each role andfunction during the annual personal assessment process. For example, all new Sonae Sierra employees must receive S&H inductiontraining, and all Site Managers, Site Correspondents and Country SHE Coordinators must attend training on all the S&H procedureswithin our SHEMS, as well as on legal S&H issues specific to the country where they coordinate SHE management.

Practices in relation to training and awareness for our service suppliers are explained in Suppliers, page 72.


See Environmental Aspects, Disclosures on Management Approach, Monitoring and Follow-up on pages 123 to 124.

Practices in relation to the monitoring and follow-up of our service suppliers’ S&H performance are explained in the Suppliers chapteron pages 72 and 75.

Our Safety and Health Corporate Policy is available here on our corporate website http://www.sonaesierra.com/en-gb/corporateresponsibility/crmanagement.aspx

Our Responsible Procurement Policy is available here on our corporate website http://www.sonaesierra.com/en-gb/corporateresponsibility/crmanagement.aspx








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occupational health and Safety (continued)

Procedures to identify and evaluate S&H risks to people

See Safety and Health, page 97.

As explained on page 97, we evaluate risks by considering the strength and weaknesses of the control measures in place; the frequencyand probability of the risks’ occurrence and their potential severity. After considering all these issues, we classify risks into four separatecategories: two that are considered as acceptable and two non-acceptable. Non–acceptable risks identified must be addressed through theimplementation of additional risk control measures until the risk is classified into one of the two acceptable risk categories.

For example, in our shopping centres, we identified that the inspection and testing of emergency generators could incur loss of hearingcapacity. To avoid this we implemented several controls, like short-term worker exposure to noise, regular noise measurements and theuse of mandatory protective equipment. On our development sites, we identified that workers involved in demolishment activities aremore susceptible to pick up respiratory problems due to excessive dust conditions, so we set up a procedure to humidify all areasforeseen to be demolished in advance of demolition works and provide all involved workers with suitable masks and training on theirproper use. In our corporate offices, the possibility of air handling units’ maintenance operations generating musculoskeletal disorderswas identified. Therefore, to avoid this risk, we provide mechanical transport equipment to ease manual workloads, deliver training on thefunctionalities of the equipment and monitor how it is used in practice through regular inspections.

All risk matrixes are approved by qualified technicians and the respective Site Manager. In shopping centres, the matrixes are alsovalidated on site by an S&H Technician that is specialised in risks relating to staff. Additionally, in all countries where it is a legalrequirement, an occupational doctor also provides follow-up and feedback to Sonae Sierra staff in regular consultations and assesseseach employee’s workstation to evaluate and mitigate any possible future occupational health complaints.

Policies and procedures for the procurement, transport, handling, use and disposal of hazardous materials

Within our SHEDS there is a specific requirement which is included within the design team and contractors’ service agreements whichprohibits the use of hazardous materials and substances (as defined by Sonae Sierra) throughout the construction works. The use and disposal of the any hazardous materials which are not prohibited is controlled by the implementation of our SHE procedures for development; namely the SHEMS for new projects, the Safety, Health and Environment Management Plan (SHEMP) for majorrefurbishments and expansions, and the small works procedure for minor interventions. The on-site S&H Coordinators and Development teams maintain a record of hazardous materials which come onto the site and are disposed of from the site.

During the operations phase and within corporate offices, we have a procedure in place that sets out the main safety recommendationsfor handling hazardous products, including the hazard characteristics of products, the labelling rules, storage incompatibilities andrecommended protective measures.

Policy and procedures for assisting employees with mental health issues, substance and alcohol addiction, and HIV/AIDS

Alcohol and drug use is prohibited during work shifts and inside all of our construction sites. This is strictly followed up by the site S&HCoordinators and S&H Technicians throughout the entire construction. Regarding mental health issues, in 2011 Sonae Sierra promoted‘Healthy Month’ for the third time within our corporate offices where several relaxation activities took place. We have also held sometraining sessions on stress management for our employees, and in particular for our accounts department. The objective of these sessionswas to help employees to identify stress and the effects that it has on individuals and learn techniques to minimise these effects.

Policy on compensation and benefits for employees for work-related injuries and fatalities

Compensation and benefits are provided in accordance with the law; i.e., through insurance policies. Specific clauses are added to serviceagreements with contractors in order to ensure that, in case of serious work-related injuries or fatalities, the fines that are paid to SonaeSierra revert to the families of injured workers.

Policies and procedures for the commissioning, operation and decommissioning of equipment

Proper commissioning is dealt with through two of the SHEDS during the design and construction phase of our shopping centres. Theseensure that operational teams work in a shopping centre that is functional and efficient. Our contracts with service suppliers includerequirements to make sure that pre-opening testing and training is performed on new equipment so as to make sure that teams aretrained to deal with all systems’ capabilities and functionalities. Decommissioning takes place within the scope of our SHE andmaintenance procedures, which make sure that the efficiency of shopping centre systems is closely reviewed and that investments areproposed to upgrade equipment where applicable.


Details of the S&H risks and opportunities that we have identified as being most relevant for our business are provided on page 21. Key strategies for implementing our S&H objectives and targets are explained in the Safety and Health chapter on page 96.








Society Aspects 145





Data Qualifying note: This indicator includes all Sonae Sierra direct employees, supervised workers and independent contractors as on 31 December 2011. There are no supervised workersor independent contractors in Brazil; Colombia; The Netherlands and Algeria. There are also no independent contractors in Italy.

Supervised Workers

Country Female Male Total

Portugal 2 2 4Spain 4 3 7Italy – 1 1Germany 1 – 1Greece 1 1 2Romania 3 – 3

total 11 7 18

Direct Employees


Portugal 231 178 409Spain 64 47 111Italy 31 24 55Germany 24 26 50Greece 13 4 17Romania 17 13 30Algeria – 1 1Colombia – 1 1Brazil 170 243 413The Netherlands 1 2 3

total 551 539 1,090

Independent Workers


Portugal 5 5 10Spain – 1 1Germany 2 2 4Greece 1 – 1Romania 1 – 1

total 9 8 17

Direct Employees

Employment type Female Male

Full Time 542 538Permanent Part time 9 1Temporary Part Time – –

total 551 539

Direct Employees

Employment type Female Male

Permanent 527 526Telework – –Temporary 24 13

total 551 539




lA1 Total workforce by employment type, employment contract, and region, broken down by gender. (Core) Full Partial






Society Aspects 145





turnover by gender Number Ratio (%)

Male 97 8.9%Female 71 6.5%

total number 168

turnover by age group Number Ratio (%)

Less than 35 years 76 7.0%35-44 years 67 6.1%45-54 years 18 1.7%55-64 years 6 0.6%More than 64 years 1 0.1%

total number 168

new employee hires leaving employment by age group Number Ratio (%)

Less than 35 years 18 11.8%35-44 years 4 2.6%45-54 years 3 2.0%55-64 years – –More than 64 years – –

total number 25

new employee hires leaving employment by gender Number Ratio (%)

Male 12 7.9%Female 13 8.6%

total number 25

new employee hires by age group Number Ratio (%)

Less than 35 years 108 9.9%35-44 years 33 3.0%45-54 years 9 0.8%55-64 years 2 0.2%More than 64 years – –

total number 152

new employee hires by gender Number Ratio (%)

Male 78 7.2%Female 74 6.8%

total number 152

new employee hires leaving employment by region Number Ratio (%)

Portugal 2 1.3%Spain – –Italy 1 0.7%Germany 1 0.7%Greece – –Romania – –Colombia – –Brazil 21 13.8%The Netherlands – –

total number 25

turnover by region Number Ratio (%)

Portugal 38 3.5%Spain 9 0.8%Italy 6 0.6%Germany 11 1.0%Greece 7 0.6%Romania 2 0.2%Colombia 0 0.0%Brazil 94 8.6%The Netherlands 1 0.1%

total number 168

new employee hires by region Number Ratio (%)

Portugal 20 1.8%Spain 2 0.2%Italy 10 0.9%Germany 7 0.6%Greece 2 0.2%Romania – –Colombia – –Brazil 110 10.1%The Netherlands 1 0.1%

total number 152

Data Qualifying note: This indicator includes all Sonae Sierra direct employees as on 31 December 2011.

The rate (%) of employee turnover has been calculated using the following formula:Number of employees leaving employment divided by the total number of employees as on 31 December 2011.

The rate (%) of new employee hires was calculated using the following formula: Number of new employee hires divided by the total number of employees at the end of thereporting period.

The rate (%) of new employee hires leaving employment was calculated using the followingformula: Number of new employee hires leaving employment divided by the total numberof new employee hires as on 31 December 2011.




lA2 Total number and rate of new employee hires and employee turnover by age group, gender and region. (Core) Full Full






Society Aspects 145







Direct Supervised Independent Employees Workers Contractors

Total workforce and independent contractors 1,090 18 17

Total number of direct employees, supervised workers and independent contractors, externally verified to be operating in compliance with OHSAS 18001 477 9 13

Percentage of direct employees, supervised workers and independent contractors, externally verified to be operating in compliance with OHSAS 18001 (%) 44% 50% 76%

Total number of direct employees, supervised workersand independent contractors, internally verified to be operating in compliance with the safety and health management system (S&HMS) 1,041 17 17

Percentage of direct employees, supervised workers and independent contractors, internally verified to be operating in compliance with the safety and health management system (S&HMS) (%) 96% 94% 100%

Data Qualifying note: This indicator includes all Sonae Sierradirect employees, all supervised workersand all independent contractors as on 31 December 2011.


lA3 Benefits provided to full-time employees that are not provided to temporary or part-time employees, by – –significant locations of operation. (Additional)

Not reported.

lA15 Return to work and retention rates after parental leave, by gender. (Core) – –

Not reported. We do not report on this indicator yet as we have thus far been unable to gather the data required. We will be able to report on this in 2012, after establishing the necessary procedures to collect the data, including a new information system application which will facilitate this process.

lA4 Percentage of employees covered by collective bargaining agreements. (Core) Full Full

Sonae Sierra does not have any collective bargaining agreements, so zero per cent of employees are covered.

lA5 Minimum notice period(s) regarding operational changes, including whether it is specified in collective Full Fullagreements. (Core)

Sonae Sierra’s practice on this matter is to communicate to all employees the significant changes that might occur during their professional career in a timely manner according to each of the situations and with local legal obligations. The only exception is when both parties have established a different agreement.

lA6 Percentage of total workforce represented in formal joint management-worker health and safety committees – –that help monitor and advise on occupational health and safety programmes. (Additional)

Not reported.

lA7 Rates of injury, occupational diseases, lost days and absenteeism, and total number of work-related fatalities, Partial Partialby region and by gender. (Core)

Safety and Health, page 97.

CRe6 Percentage of the organisation operating in verified compliance with an internationally recognised – Fullhealth and safety management system. (Core)






Society Aspects 145







Coverage of programmes Education/Training Counselling Prevention Treatment

Staff Yes Yes Yes n/aFamilies of staff Yes Yes Yes n/aCommunity members Yes Yes Yes n/a

Data Qualifying note: This indicator covers all company activities. During 2011, six specific education; training; counselling; prevention and risk-control programmes were in place to assist workforce members andtheir families regarding serious diseases or potential long-term damage to health. These were:.1. The “Safety Tips” practice. “Safety Tips” provide staff with guidance on how to best respond to different every-day situations covering a wide range of issues, among them risk

prevention measures for diseases or long-term damage to health. In 2011 Safety Tips delivered to staff and their families included advice about: “Make your workplace more enjoyablewhile you are working”; “Expect the Unexpected”; “What is cholesterol?” and “Noise problem at home work”.

2. Training sessions on ergonomics. Our main corporate offices carried out ergonomics training sessions including how to adjust working stations, suitable work postures, frequency of breaks, etc.3. First aid courses. Some members of our staff at our Lisbon and Maia offices completed a basic first aid course (provided in Portugal by the Portuguese Red Cross). This course included

many practical skills required by a first aider in the modern workplace such as treating patients who have experienced a heart attack, who are unconscious or are suffering from shock;chocking; poisoning; bleeding; burns or scalds.

4. Shopping centre and office campaigns. In 2011 Sonae Sierra undertook several campaigns in some shopping centres in Europe to raise public awareness about serious diseases.A celebration of the World Day for Safety and Health at Work (28 April) and events related with “Healthy Month” were carried out in all our main corporate offices.

5. Training on the use of defibrillators. Some members of our staff in our Lisbon office received specific training on the use of external automatic defibrillators.6. Legionnaire’s disease: Some members of our staff in our Lisbon office completed a basic training about Legionellosis.

Average number of

Number of Number of hours perEmployee Category employees hours employee

Global Senior Executive, Senior Executive, Executive 23 439 19.1Senior Manager 60 2,294 38.2Manager 99 5,016 50.7Team Leader 132 5,363 40.6Project Team Specialist 161 8,737 54.3Team Member 615 31,504 51.2

total 1,090 53,353 48.9

Data Qualifying note: This indicator includes all Sonae Sierra directemployees as on 31 December 2011. To obtain theaverage hours per employee (AHE), by employeecategory and by type of training, the followingformula was applied: AHE (by employee categoryand by type of training) = total hours of training peremployee category and type of training, divided bytotal employees per employee category.


lA8 Education, training, counselling, prevention, and risk-control programmes in place to assist workforce members, Full Fulltheir families, or community members regarding serious diseases. (Core)

For details on our procedures for managing risks to people, see page 138.

lA9 Health and safety topics covered in formal agreements with trade unions. (Additional) – –

Not applicable. Sonae Sierra does not have any formal agreements with trade unions.

lA10 Average hours of training per year per employee by gender and by employee category. (Core) Partial Partial

lA11 Programmes for skills management and lifelong learning that support the continued employability of – –employees and assist them in managing career ending. (Additional)

Not reported.

lA12 Percentage of employees receiving regular performance and career development reviews, by gender. (Additional) Full Full

Employees, page 94.

lA13 Composition of governance bodies and breakdown of employees per employee category according to gender, Full Fullage group, minority group membership, and other indicators of diversity. (Core)

Employees, page 93.

lA14 Ratio of basic salary and remuneration of women to men by employee category, by significant locations Full Fullof operation. (Core)

Employees, page 93.






Society Aspects 145




human Rights Aspects



55 For Development, critical suppliers are considered to be those with whom Sonae Sierra has a contract of over €2 million. For Property Management, critical suppliers are consideredto be main shopping centre service providers: cleaning, security, maintenance and waste management.

Disclosures on Management Approach

It is our principle to respect the dignity and rights of each individual. Within the scope of our own direct activities, we uphold this principlethrough the implementation of practices that are aligned with our Code of Conduct and our core values, namely our responsibilities to ourstaff; tenants; suppliers; communities and other stakeholders.

Our business activities do not typically infringe upon or come into direct conflict with internationally proclaimed human rights issues. We operate in regions which typically possess significant bodies of legislation to protect working conditions and human rights amongstthe labour force. Nonetheless, we consider that the inclusion of clauses relating to human rights in contracts with our critical first tiersuppliers constitutes a form of human rights screening. Likewise, the inclusion of clauses in agreements with partners to guarantee good standards of safety and health management on joint venture projects also helps to ensure the safety of first tier suppliers.


hR1 Percentage and total number of significant investment agreements and contracts that include clauses Full Fullincorporating human rights concerns or that have undergone human rights screening. (Core)

In the context of our business, we consider “investment agreements” to be agreements made with joint venture partners. Within agreements made with joint venture partners regarding new projects and operational shopping centres, we include criteria to encourage our partners to make their best efforts to ensure the implementation of good practice standards for safety and environmental management in accordance with ISO 14001 and OHSAS 18001 onjoint venture projects. Across all countries where we operate, in 2011 only one agreement with a joint venture partner was signed (for the Solingen project in Germany) and these clauses were included.

It is part of our procedure to ensure that all contracts signed with critical suppliers55 include clauses for minimum requirements in relation to safety, health, social (including human rights) and environment standards. In 2011, a sample of contracts signed with critical property management suppliers were reviewed by an external party as part of our 2011 CR Target Review, and in all cases these clauses had been included. Contracts signed with criticaldevelopment suppliers were not subject to an external review, as we did not set a CR Target relating to critical development suppliers’ contracts, but they are still subject to the internal procedure.

hR2 Percentage of significant suppliers, contractors and other business partners that have undergone human Full Fullrights screening and actions taken. (Core)

We are conscious of our responsibility to ensure that human rights are not negatively impacted upon as a result of activities in our upstream supply chain.

It is part of our procedure to ensure that of our new Development and Property Management suppliers receive our Responsible Procurement Policy and that all contracts signed with critical suppliers include clauses for minimum requirements in relation to safety, health, social (including human rights) andenvironment standards. In 2011, a sample of contracts signed with critical property management suppliers were reviewed by an external party as part of our 2011 CR Target Review, and in all cases these clauses had been included. Contracts signed with critical development suppliers were not subject to anexternal review, as we did not set a CR Target relating to critical development suppliers’ contracts, but they are still subject to the internal procedure.

hR3 Total hours of employee training on policies and procedures concerning aspects of human rights that are Full Fullrelevant to operations, including the percentage of employees trained. (Core)

The internal training package called ‘JUMP’, which is delivered to new employees, covers issues related to human rights, such as the Code of Conduct andNon-Discrimination Policy. During 2011, a total of 552 hours of ‘JUMP’ training was provided, involving 23 employees (representing 15% of the total newemployee hires in 2011 and 2.1% of the total direct employees).

hR4 Total number of incidents of discrimination and corrective actions taken. (Core) Full Full

No incidents of discrimination were registered within the Company in 2011.

hR5 Operations and significant suppliers identified in which the right to exercise freedom of association and Full Fullcollective bargaining may be violated or at significant risk, and actions taken to support these rights. (Core)

We do not have any kind of policy against freedom of association among any of our stakeholders. We operate in an industry where trade unions exist and are free to exercise their collective bargaining rights. We also seek to ensure that our employees’ views and interests are represented in corporatedecision-making in a number of areas, e.g., Safety and Health.






Society Aspects 145




human Rights Aspects continued




hR6 Operations and significant suppliers identified as having significant risk for incidents of child labour, and Full Fullmeasures taken to contribute to the effective abolition of child labour. (Core)

Our business activities do not typically infringe upon or come into direct conflict with internationally proclaimed human rights issues. Sonae Sierra does not employ any child labour. We operate in regions which typically possess significant bodies of legislation to protect working conditions and human rightsamongst the labour force. Nonetheless, we consider that the inclusion of clauses relating to human rights in contracts with our critical first tier suppliersconstitutes a form of human rights screening.

hR7 Operations and significant suppliers identified as having significant risk for incidents of forced or compulsory Full Fulllabour, and measures to contribute to the elimination of all forms of forced or compulsory labour. (Core)

Our business activities do not typically infringe upon or come into direct conflict with internationally proclaimed human rights issues. Sonae Sierra does not uphold any forced or compulsory labour practices. We operate in regions which typically possess significant bodies of legislation to protect workingconditions and human rights amongst the labour force. Nonetheless, we consider that the inclusion of clauses relating to human rights in contracts with our critical first tier suppliers constitutes a form of human rights screening.

hR8 Percentage of security personnel trained in the organisation’s policies or procedures concerning aspects of – –human rights that are relevant to operations. (Additional)

Not reported.

hR9 Total number of incidents of violations involving rights of indigenous people and actions taken. (Additional) – –

Not reported.

hR10 Percentage and total number of operations that have been subject to human rights reviews and/or Full Fullimpact assessments. (Core)

We have not applied human rights reviews or impact assessments to any of our operations across all company activities. We do not consider human rights to be a material risk for our own direct operations. However, we do recognise that there are potential human rights risks within our supply chain and, although these risks are several tiers removed from our business, we have, for example:• Included clauses relating to human rights in contracts with our critical first tier suppliers.• Assessed the CR performance of our critical first tier suppliers by distributing questionnaires to collect information on about their policies and

practices regarding a range of CR issues, including human rights. In 2011 the questionnaires were completed by critical first tier development suppliers; from 2008 to 2010 inclusive they have also covered critical first tier property management suppliers.

• Commenced a preliminary study to evaluate the viability of developing a standard specification to incorporate into contracts on all development projects, establishing procedures to ensure that materials come from reliable sources in respect to child labour and working conditions. This involvedidentifying which regions have high risks of child labour according to UNICEF data, and developing a questionnaire to ask suppliers about child labour risks.

hR11 Number of grievances related to human rights filed, addressed and resolved through formal Full Fullgrievance mechanisms. (Core)

No grievances related to human rights were registered within the Company in 2011.






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Society Aspects



Disclosures on Management Approachlocal communities


Our long-term objectives and 2012 targets in relation to Communities aspects can be found on pages 27 and 83 respectively.

Commentary on our performance in relation to Communities aspects in 2011, including key success and shortcomings, can be found inthe Communities and Visitors chapter on pages 84 to 90.

Policy

Our policy towards the community is based on values and principles such as Environmental Awareness; Community Involvement;Openness to Society and Confidence and Ethics.

Our Corporate Responsibility (CR) Policy states our commitment to play a proactive role in changing society through education andawareness-raising campaigns, by capitalising on our ability to communicate with the public who visit our shopping centres.


Ultimate responsibility for Communities aspects lies with Sonae Sierra’s CEO and the Executive Committee. During the shopping centredevelopment phase, the Country Marketing Manager is responsible for all issues concerning public relations and community activationmarketing programmes; all other local community issues are managed by the Development Project Manager. Guidelines and a macroActivity Plan is approved by the Board Members of the Company responsible for the project. Operational responsibility for localcommunities and visitor satisfaction aspects during the shopping centre operations phase lie with our Shopping Centre Managers,supported by the central Marketing Department.


We provide training to shopping centre management teams and development managers regarding community relations, with a particularfocus on the implementation of Community Advisory Panels (CAPs). Our employees are also made aware of community issues throughsurveys, participation in volunteering activities and school liaison projects.


During the development stage we carry out feasibility studies to identify consumers’ needs in retail, services and leisure activities, inorder to design shopping centres that match market needs and the existing retail offer. These studies consider factors such asdemographics within the catchment area and socio-economic indicators.

In 2007, we launched our first CAP project at Dos Mares in Spain and, since then, we have rolled out CAPs to a further 28 shoppingcentres and development projects. CAPs aim to create trust and co-operation between Sonae Sierra shopping centres and localcommunity representatives. Community representatives are invited to raise ideas and concerns and present potential projects forcollaboration with the shopping centre.

In Europe, we carry out annual community (‘Geo Tracking’) surveys to help us understand the impact of our shopping centres on localconsumer habits. These studies assess among other things the degree and quality of the existing commercial supply and the shoppingfacilities used by local residents. Information is collected through telephone interviews and structured questionnaires, and results areused to define the centre’s marketing strategy to ensure that it is tailored to the catchment area. Geo Tracking surveys also includequestions about social and environmental aspects of our shopping centres.


Details of the communities-related risks and opportunities that we have identified as being most relevant for our business are providedon page 21. Key strategies for implementing our Communities objectives and targets are explained in the Communities and Visitorschapter on page 83.

Apart from GaiaShopping in Portugal, which was completed in 1989, none of our projects have ever involved the displacement of localcommunity members. In the case of GaiaShopping, we constructed new houses in order to resettle the people who used to live in the area.

CR Policy is available here on our corporate website:http://www.sonaesierra.com/en-gb/corporateresponsibility/crmanagement.aspx






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Society Aspects continued


Corruption, Anti-Competitive behaviour and Compliance

Policy

Sonae Sierra’s Code of Conduct promotes the fundamental aspects of ethical behaviour that Sonae Sierra’s Board believes should beadopted in Company business and activities, and lists the Ethical Principles that include the duties of strict compliance with the Law and acting with honesty and integrity. The Code of Conduct includes one specific guideline on the avoidance of Bribery and Corruption,by stating that it is forbidden to give or accept any reward or benefit with the purpose of influencing someone’s behaviour to obtain acommercial advantage.


Whilst the Executive Committee is ultimately responsible for managing these issues, ethical conduct is a personal responsibility andevery employee is held accountable for his or her behaviour.


During 2011, the Sonae Sierra Executive Committee approved the Anti-Corruption Guidelines which reiterate the Company’s anti-corruption policy and the role of the Sierra Ombudsman. They also establish a series of anti-corruption activities which were initiated in 2011, including regular staff training on the contents of the Code of Conduct in relation to Ethics. The training programme, namedBEST (Behaviour with Ethics Sierra Training) is mandatory for all employees. It commenced in 2011 and will last until the end of 2012.Afterwards, it is foreseen that training will be carried out every year in order to cover all employees over a certain period of time. At theend of each training session, employees are required to sign the Sonae Sierra Code of Conduct Acknowledgement to confirm that theyhave received the Code and agree to comply with its provisions.


The Sierra Ombudsman promotes compliance with our Code of Conduct and encourages behaviour aligned with our ethical principles.The Ombudsman is an independent facilitator to whom all stakeholders can present their complaints with assurance that they will beprocessed, investigated, and responded to in a timely and sensitive manner.

We ensure that compliance with the avoidance of Bribery and Corruption is upheld by incorporating corruption risk into the annual InternalAudit plan of activities, which is aligned with the Sonae Sierra Risk Matrix through the audit work carried out by business process areas.

In relation to specific policies and practices followed by Sonae Sierra to mitigate corruption risk with respect to real estate valuations and transactions, our Asset Management and Development businesses follow the RICS guidelines and transactions which are approvedby the Board of Directors of the Special Purpose Vehicles (SPVs), the Board of Directors of Sonae Sierra and (in many cases) by theInvestment Companies of the funds. Whilst there are no specific guidelines to mitigate risks with respect to valuations, the entity thatcarries out most valuations for Sonae Sierra indicates in its report that the fees collected from Sonae Sierra represent less than 5% of itsrevenue, on a global basis. Within the context of our Property Management activities, the procedure of getting bids for the services wecontract out to suppliers minimises the risk of anti-competitive behaviour in the supply chain.

The Code of Conduct in practice

Our Code of Conduct establishes that it is forbidden for Sonae Sierra staff to accept any personal gift or other economic benefit with anindividual value in excess of €100 (including Christmas gifts). In 2011, one of our shopping centre managers was given a Samsung GalaxyTab GT P1000 (tablet computer). In accordance with the Code of Conduct, that gift became the property of Sonae Sierra and it wasdelivered to Sonae Sierra’s Human Resources (HR) Department, which arranged an internal auction for the computer with a base price of €300. The money raised from the auction was donated to a charitable organisation.

public policy

Essentially, Sonae Sierra supports political endeavours to encourage greater social cohesion and environmental responsibility, althoughwe resist changes in legislation that are likely to significantly and adversely affect our business. Lobbying activities which took place in2011 are reported under GRI Performance Indicator SO5 on page 148.








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Total number of business processes analysed 7for risks related to corruption

Percentage of business processes analysed 54%for risks related to corruption

Data Qualifying note: This indicator includes all business activities. Our Code of Conduct states that is forbiddento give or accept any reward (or “benefit”) with the purpose of influencing someone’sbehaviour to obtain a commercial advantage. We ensure compliance with this obligation by incorporating corruption risk into the annual Internal Audit plan of activities, which isaligned with the Sonae Sierra Risk Matrix through the audit work carried out by businessprocess areas. During 2011, the Internal Audit activities covered all the core business risksincluded in the Risk Matrix and 54% of the corresponding business processes. In 2011, noinstances of corruption were detected. The Risk Management Working Group approved theAnti-Corruption Guidelines that will enable the development of anti-corruption awarenessthrough the provision of staff training.


So1 Percentage of operations with implemented local community engagement, impact assessments and Full Fulldevelopment programmes. (Core)

On 31 December 2011, Sonae Sierra owned 49 shopping centres, had five projects under construction and six new projects in different phases of development.

We have one significant local community engagement programme in place, our Community Advisory Panels (CAPs), which are described on page 87in the Community and Visitors chapter of this report and are in place across 27 (55%) of our operational shopping centres and 2 (40%) of our projects under construction.

Environmental Impact Studies (EISs) or Preliminary Environmental Evaluations (PEEs) are carried out on 100% of new development projects and on majorexpansions. They include specifications such as the identification of locations of historical, architectural and archaeological value and data on importantsocio-economic indicators within the study area. When we begin new projects, we perform a feasibility analysis which involves analysing the competition and impact of our activities on competitors’ performance. Through our Geo Tracking studies, we evaluate the impact of our shopping centres on localconsumer habits on an annual basis. Aside from these, we do not have any local community impact assessment programmes in place across our portfolio.

We have community education projects in place at two of our shopping centres, Shopping Metrópole and Shopping Penha in Brazil, but aside from these, we do not have any other local community development projects in place across our portfolio.

During the commercial licensing phase of new shopping centre projects, we are obliged to comply with the planning obligations defined in each country and by each local authority. For example, in some locations we must set aside part of the site for the creation of green spaces and, if this is not possible on the site in question, we must pay a compensatory fee so that green spaces can be created in alternative areas. The development of transportinfrastructure around new shopping centre sites (including roads, bicycle paths and parking spaces, footpaths, etc.) is another example of infrastructuredeveloped for community benefit, in some instances to meet with mandatory requirements of local authorities and in others to meet with our own Safety, Health and Environmental Development Standards (e.g., regarding the promotion of sustainable travel). Many of our shopping centres also offer play areas for children, crèche services, sports and waste recycling facilities which are available for the local community.

Our approach to community engagement through the property lifecycle stages to ensure successful project delivery and community acceptance is described in the Community and Visitors chapter on page 83.

So9 Operations with significant potential or actual negative and positive impacts on local communities. (Core); – –So10 Prevention and mitigation measures implemented in operations with significant potential or actual negative impacts on local communities. (Core)

Not reported. We do not report on these indicators yet as we have thus far been unable to gather the data since we do not have the necessary mechanism in place to report on it. Only after defining the correct mechanisms we will be able to define when to report the information.

CRe7 Number of persons voluntarily and involuntarily displaced and/or resettled by development, broken down – Fullby project. (Core)

There were no cases of persons voluntarily or involuntarily displaced and/or resettled within our new projects which commenced in 2011; Solingen Shopping in Germany and Passeio das Águas Shopping in Brazil. This indicator covers projects started in 2011. It does not include the refurbishment of shopping centres as refurbishments do not involve an increase in GLA.

So2 Percentage and total number of business units analysed for risks related to corruption. (Core) Full Full






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Employee Category Number of Employees

Senior Executive 1Senior Manager 5Manager 2Team Leader 2Project/ Team Specialist 5Team Member 7

total 22% 2%

Data Qualifying note: This indicator includes all Sonae Sierra’s direct employees as on 31 December 2011. In 2011, one BEST (Behaviour with EthicsSierra Training) session was held foremployees, with the total duration of twohours. The percentage and the total numberof employees in each employee category who have received anti-corruption trainingduring the reporting year was calculated using the total number of Sonae Sierra direct employees as on 31 December 2011.

56 The Italian filiation of the International Council of Shopping Centres (ICSC).


So3 Percentage of employees trained in organisation’s anti-corruption policies and procedures. (Core) Full Full

So4 Actions taken in response to incidents of corruption. (Core) Full Full

No incidents of corruption were detected across the Company in 2011. Therefore no follow-up actions were necessary.

So5 Public policy positions and participation in public policy development and lobbying. (Core) Full Full

Lobbying activities through own initiative in 2011 included:• Petitions to municipalities at several locations in Portugal regarding local planning regulations where Sonae Sierra is looking to make expansions or

changes to the use of car parking space.• Petitions to municipalities in Cascais and Lisbon (Portugal) for exemption from waste collection taxes due to the fact that

Sonae Sierra’s shopping centres have their own waste management system.• Suggestion to the Vila Nova de Gaia, Seixal and Covilhã municipalities (Portugal) for some amendments to be made to the regulation proposal

regarding the opening hours of commercial shops (including those located inside shopping centres).• Suggestions to the local building regulations authorities in Albufeira and Maia (Portugal) regarding some technical issues.• Suggestion to Maia municipality (Portugal) about local regulations regarding the licensing of some tenant activities.• Comments on the draft law “Licenciamento Zero” (Portugal) which defines the new licensing process of several activities of our tenants.

We also supported or were involved in defining policy positions led by industry associations, including the European Property Federation’s (EPF) responsesto a range of European Union-level Directives and legislative initiatives, such as:• The adoption of a voluntary common European Union (EU) certification scheme for the energy performance of non-residential buildings under the Energy

Performance of Buildings Directive. We proposed a methodology for the certification scheme using Sonae Sierra know-how.• The EU’s Energy Efficiency Directive. We contributed to the final paper submitted by the EPF to the European Commission regarding this Directive. • The legislative initiative on Water Performance of Buildings. We contributed comments to the statement issued by the EPF.• The European Commission’s Retail Market Monitoring Report. We countered the arguments put together by the European Commission which stated

that retailers are suffering due to a ‘retail property market malfunction’.

In Italy, we supported the action of the Consiglio Nazionale dei Centri Commerciali (CNCC)56 in favour of the extension of retail opening hours on Sundaysand festive days and additional flexibility for stores opening hours, as well as simpler and less restrictive regulations for the creation of new shoppingcentres, in keeping with the EU Directives and court rulings on competition. As current chairman of the CNCC and responsible for Sierra InstitutionalRelations in Italy, Pietro Malaspina promoted this viewpoint in a number of congressional events and interviews, as well as in meetings with governmentofficials. This action, combined with similar lobbying activities by other industry associations, was instrumental in bringing about the decisions taken bythe Italian Government in June and in December 2011, that liberalised retail opening hours and set the basis for deep changes in retail laws at regionallevel, towards the elimination of limitations to the creation of new shopping centres, except in cases of proven conflict with public interest. Althoughthese legislative measures are being challenged at the Italian Constitutional Court by regional governments, it is generally felt that they haveestablished a turning point from a very restrictive legislation towards a more liberal one.






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So6 Total value of financial and in-kind contributions to political parties, politicians, and related institutions Full Fullby country. (Core)

No financial and in-kind contributions were made by Sonae Sierra to political parties, politicians, and related institutions in 2011.

So7 Total number of legal actions for anti-competitive behaviour, anti-trust, and monopoly practices and Full Fulltheir outcomes. (Additional)

There were no legal actions made against Sonae Sierra for anti-competitive behaviour, anti-trust, and monopoly practices in 2011.

So8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws Full Fulland regulations. (Core)

In 2011 Sonae Sierra paid two significant fines with a total value of €3,246 (both in Spain). The Company did not receive any non-monetary sanctions andthere were no cases brought through dispute mechanisms. Last year, Sonae Sierra reported three cases brought against the Company through disputeresolution mechanisms. For one of them the process was favourable for Sonae Sierra, but we still waiting for the resolution process for the other two cases.






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product Responsibility AspectsDisclosures on Management ApproachCustomer health and Safety


Our long-term objectives and 2012 targets in relation to shopping centre safety and health (S&H) aspects can be found on pages 28 and97 respectively.

Commentary on our S&H performance in shopping centres in 2011, including key success and shortcomings and changes to S&Hmanagement procedures which occurred during the reporting year can be found on pages 96 and 101 to 103.

Policy

See Labour Practices and Decent Work Aspects, Disclosures on Management Approach, Occupational Health and Safety on page 137.





See also the Safety and Health chapter, pages 101 to 103.



Besides the monitoring practices reported under Occupational Health and Safety, we also operate a range of practices relating toshopping centre users’ health, safety and security during all phases of the property lifecycle. Our Safety, Health and EnvironmentDevelopment Procedures (SHEDS), which are implemented during the shopping centre design and development process, are described in the Safety and Health chapter on page 96.

Details of our emergency procedures in shopping centres are provided in the Safety and Health chapter on page 103.

product and Service labelling – Sustainable building Standards and Certification


Our 2012 targets in relation to sustainable building standards and certifications can be found on page 26. Progress we have made to datetowards achieving these standards and certifications can be found on page 25. Details of new certifications achieved in 2011 can be foundon pages 6 and 7 respectively.

Policy

Through our years of experience in designing, constructing, owning and managing shopping centres we have identified the sustainabilityfeatures which are most important for our operations. The SHEDS have been developed with reference to our own experience; bestavailable techniques; international certification schemes such as LEED® and BREEAM and internationally recognised safety standardssuch as the National Fire Protection Association (NFPA) and European safety standards.

The SHEDS are structured in a way that they allow our shopping centre projects to achieve the international ‘BREEAM Good’ standard orabove for environmental design as well as our own minimum requirements. We do aim to apply ‘BREEAM’ ratings to our projects in future.

During the construction and operations phases, we operate a Safety, Health and Environment Management System (SHEMS) on all ourconstruction sites and in all our operational shopping centres which is based on ISO 14001 and OHSAS 18001 standards. Applying thesestandards enables us to guarantee that all SHE risks and impacts are identified and controlled. It is also part of our policy to seek thirdparty audit and certification of the SHEMS across all our sites. By obtaining ISO 14001 and OHSAS 18001 certification, shopping centresensure that their management systems are aligned with Sonae Sierra’s corporate policies and that SHE procedures have been fullyimplemented. Certification demonstrates to our stakeholders our visible commitment to managing our SHE impacts and helps us toreduce the costs associated with those impacts.


Training and awareness on the SHEDS and our SHEMS procedures is addressed through our SHE training procedures, which are describedunder Environmental Aspects, Disclosures on Management Approach on page 123 and Labour Practices and Decent Work Aspects,Occupational Health and Safety on page 137.


The extent of implementation of the SHEDS on each of our projects is assessed by an external advisor. Our local SHEMS are assessed bya third party certifier as part of the process for achieving ISO 14001 and OHSAS 18001 certifications.








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product Responsibility Aspects continued


product and Service labelling – Customer surveys


Our primary customers are our tenants. Our long-term objective and 2012 targets in relation to tenant satisfaction can be found onpages 27 and 78 respectively.

Commentary on our performance in relation to tenant satisfaction in 2011, including key success and shortcomings, can be found onpages 79 to 82. Commentary on our performance in relation to shopping centre visitors’ satisfaction in 2011 can be found on page 88.


Senior responsibility for tenant satisfaction and other aspects of tenant engagement and management are divided between the SonaeSierra Board Director responsible for Property Management and Leasing in Europe (including ultimate responsibility for Sonae Sierra’s 30 top tenants) and the CEO of Sonae Sierra Brasil. Responsibility is divided at the management level between the Heads of PropertyManagement in each country of operation. Shopping Centre Managers take responsibility for managing the day to day relations withtenants, with support from centralised leasing teams. We have an on-line Property Integrated Management System (PIMS) in place whichsupports all property management processes in an integrated way, covering leasing, marketing, operations, administration, maintenance,safety and security activities.

Monitoring and Follow-Up

We regularly monitor the effort ratio of our tenants (the ratio of rents plus common charges paid by the tenant to the sales theyachieve) and compare the performance of different tenants with similar operations in the same centre or similar units in differentshopping centres. If we detect that a tenant has a very high effort ratio, we arrange a face-to-face meeting with the store managementteam to seek to understand the reasons for this and if possible help the tenant to find a solution.

We undertake annual tenant satisfaction surveys in all our owned shopping centres, which allow us to gain general feedback onoperational aspects, marketing events, communications, our CR programme and satisfaction with our shopping centre managementteams. Survey results are used to develop action plans to address aspects which receive low scores and ultimately drive continuousimprovement in tenant satisfaction levels. Recognising that understanding and responding to our tenants’ concerns will help us to delivera higher quality service, in 2008 we launched a top tenant survey in Portugal, Spain and Brazil to obtain feedback from key tenantcompanies at the senior management level. In 2009 we also rolled out top tenant surveys in Germany, Italy and Greece, and these werecompleted at the beginning of 2010. Following these top tenant surveys, tailor-made actions plans were developed and are beingimplemented in each country.

With respect to shopping centre visitors, we undertake Mall tracking surveys at our shopping centres every year or two years to help usunderstand our visitor’s profile, their behaviour and requirements. These surveys monitor trends in visitor satisfaction, expectations,loyalty and behaviour, and also ask questions about social and environmental aspects. Shopping centres develop action plans on thebasis of the survey results, paying particular attention to critical success factors affecting visitor numbers and short-term actionsnecessary to correct any negative results.

We have a customer feedback system in place, called Customer Contact Management, which provides a unique source of learning for ourshopping centres. We encourage visitors to submit their suggestions and complaints in writing and we ensure that the Shopping CentreManager personally responds to all suggestions and complaints presented. In order to improve both the quality of our contact withcustomers and our ability to learn from them, in 2010 we carried out a Contact Management project. This involved reviewing andsystematising all the procedures for written and verbal contacts with customers; creating new tools for reporting customer contacts andtraining all the internal and external staff working in our shopping centres on how to handle customer questions and complaints. In Brazil,we provide training to our Customer Contact Management team and evaluate their skills and compliance with our customer carestandards using a ‘mystery shopper’ technique both within shopping centres and through calls made to the Call Centre. Shopping centrevisitors may also present complaints to the Sierra Ombudsman.

Marketing Communications

Sonae Sierra does not currently monitor marketing communications to evaluate conformity and/or good practices with respect totransparency and fair marketing communication with customers. This is principally due to the following two reasons: 1) the budget invested in marketing communication campaigns does not justify the costs that Sonae Sierra would have to bear to contract the ICAP(Portuguese official compliance entity); 2) to date Sonae Sierra has not received any complaints concerning lack of transparency inmarketing communications.








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Customer privacy

Sonae Sierra does not supply data concerning tenants to third parties (sales achieved or results of audits) except in cases where we areobligated to by law or we are authorised to do so by the tenant company. Sensitive tenant data is always kept confidential, with data onlybeing disclosed in the case of a shopping centre valuation (and in this case, the valuator who analyses the data is obliged to adhere to a confidentiality agreement). The application of these measures eliminates the need for a specific strategic management approachconcerning customer privacy.


pR1 Life cycle stages in which health and safety impacts of products and services are assessed for improvement, Full Fulland percentage of significant products and services categories subject to such procedures. (Core)

Percentage of service Life cycle stages categories covered Comments on assessment procedures

New construction 100% Our Safety, Health and Environment Development Standards (SHEDS) are considered by all design teams during the concept and architectural development phase of all our new shopping centres, refurbishment or expansion projects and minor works. For further information, see page 25.

During the construction phase, we aim to achieve excellent safety standards by defining strict procedures that exceed those which are required by law. All new shopping centredevelopment projects must implement a site-specific Safety, Health and EnvironmentManagement System (SHEMS) and achieve certification in accordance with the OHSAS 18001 standard for the entire construction phase. For further information, see page 96.

Management 100% During the operations phase, all Sonae Sierra shopping centres implement the proceduresdefined by our corporate SHEMS with the aim of guaranteeing the safety of all building users. We use some specific tools to assess the safety of our shopping centres for building users, which are described on page 96. Audits are performed to assess compliance with Sonae Sierra’s SHEMS at corporate and site levels on an annual basis.

Development/redevelopment 100% This covers expansion and refurbishment activities. The same procedures apply as thosedescribed in relation to ‘New construction’ above.






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Shopping Development Offices Centres Projects

ISO 14001 certification – 3 2

OHSAS 18001 certification – 5 2

Data Qualifying note: This indicator includes all shopping centresowned by Sonae Sierra and in operation forthe full reporting year; all eight main SonaeSierra corporate offices and all projects underdevelopment during the reporting year.


pR2 Total number of incidents of non-compliance with regulations and voluntary codes concerning health and Full Fullsafety impacts of products and services during their life cycle, by type of outcomes. (Additional)

Incidents of non-compliance with Incidents of non-compliance with Incidents of non-compliance Country regulations resulting in a fine or penalty regulations resulting in a warning with voluntary codes

Portugal – 4 –Spain – 1 3Italy – – –Germany – – –Greece – – –Romania – 1 –Brazil – 1 3

total – 7 6

Data Qualifying note: This indicator includes all shopping centres owned by Sonae Sierra and in operation for the full reporting year as well as shopping centres managed by Sonae Sierra on behalf of third parties. The incidents of non-compliance with regulations resulting in a warning occurred in the following shopping centres: • Portugal: Tavira Gran Plaza (2); CascaiShopping (1); LeiriaShopping (1).• Spain: Max Center.• Romania: River Plaza Mall.• Brazil: Franca Shopping.

The incidents of non-compliance with voluntary codes occurred in the following shopping centres:• Spain: GranCasa (2); Parque Principado (1).• Brazil: Parque D. Pedro Shopping (3).

There were not any instances of non-compliance with regulation and voluntary codes resulting from dangerous occurrences, reportable injuries and fatalities to non-workers on or off site in 2011.

pR3 Type of product and service information required by procedures and percentage of significant products and Full Fullservices subject to such information requirements. (Core)

Significant building and infrastructure components and products used by our business and for which we apply a specific environmental, safety and/or ethical criteria or require adherence to a particular certification/label/rating are foreseen on the Safety, Health and Environmental Management System(SHEMS). As example we have under our SHEMS standards for: – Prohibition of the use of Hazardous Materials;– Timber Products;– Sustainable products, and– Low emission products.

For additional information regarding Environmental and Safety and Health certifications please consult pages 25, 47 and 75.

CRe8 Type and number of sustainability certification, rating and labelling schemes for new construction, – Fullmanagement, occupation and redevelopment. (Core)

In 2011 we achieved a total of 12 new sustainability certifications for construction sites and operational shopping centres.

For details of the type and number of sustainability certifications achieved by our business to date, see Our Business Strategy, Safety, Health andEnvironment Management System, page 25.






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pR4 Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service Full Fullinformation and labelling, by type of outcomes. (Additional)

No incidents of non-compliance with regulations and voluntary codes concerning product and service information and labelling occurred in 2011 at any of our owned shopping centres or in shopping centres we manage on behalf of other owners.

pR5 Practices related to customer satisfaction, including results of surveys measuring customer satisfaction. (Additional) Full Full

Tenants, pages 78 to 81.Communities and Visitors, pages 83 and 88.

pR6 Programmes for adherence to laws, standards, and voluntary codes related to marketing communications, Full Fullincluding advertising, promotion, and sponsorship. (Core)

Sonae Sierra does not adhere to any codes or voluntary standards relating to marketing communications, including advertising, promotion and sponsorship.

pR7 Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing – –communications, including advertising, promotion, and sponsorship by type of outcomes. (Additional)

Not reported.

pR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of – –customer data. (Additional)

Not reported.

pR9 Monetary value of significant fines for noncompliance with laws and regulations concerning the provision and Full Fulluse of products and services. (Core)

Sonae Sierra did not identify any non-compliance with laws or regulations across all company activities in 2011. We consider significant fines or penalties to be ones for which the amount (individual fine) is greater than €500.






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Independent Auditor’s Review








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REVIEW REPORT

Introduction

1. We have been requested by the Board of Directors of Sonae Sierra, SGPS, SA to perform a review of the

corporate responsibility information included in the Economic, Environmental and Social Report 2011,

that covered:

– The reliability of the “Profile Disclosures” information and the 2011 data relating to all the GRI

performance indicators reported by Sonae Sierra, all core and several additional, as indicated in the

“Annex: Global Reporting Initiative” to the Economic, Environmental and Social Report 2011, and

its consistency with the remaining content of that report, as well as its compliance with the disclosure

of information requirements defined by the Guidelines for Sustainability Reporting of the Global

Reporting Initiative, version v3.1 of 2011, for the A+ application level;

– The reliability of all the additional 2011 data requested by the GRI Construction and Real State

Sector Supplement that was reported by Sonae Sierra, as indicated in the same Annex;

– Sonae Sierra’s own corporate responsibility performance indicators disclosed in chapters 1, 3 and 4

of that report, in accordance with the criteria defined by Sonae Sierra, mentioned in attachment to the

indicators referred to; and

– The reported progress against the 2011 Corporate Responsibility targets and actions, in accordance

with criteria established by Sonae Sierra, which is publically available, as identified in that report.

Responsibilities

2. Sonae Sierra’s Board of Directors is responsible for preparing the Economic, Environmental and

Social Report 2011, as well as defining, implementing and carrying out adequate processes,

procedures, internal control systems and criteria for collecting, processing, presenting and validating

the information contained therein. Our responsibility is to issue a report, based on the procedures

referred to below, on the information referred to above.

Scope

3. We conducted our review in accordance with the International Standard on Assurance Engagements

3000 – ISAE 3000, issued by the International Auditing and Assurance Standards Board, regarding

assurance engagements other than audit or reviews of historical financial information, for a limited

level of assurance.

4. This standard requires that we plan and perform procedures and apply audit skills and techniques, in

order to obtain an adequate understanding of the matters under review and, considering the

circumstances, to obtain sufficient appropriate evidence on which to base our conclusions. In a

limited assurance engagement, the procedures performed consist primarily of inquiries of Sonae

Sierra’s personnel and analytical procedures, including tests on a sample basis and therefore, less

assurance is obtained than in an engagement aimed at obtaining reasonable assurance.


Independent Auditor’s Review continued








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Page 2 of 2

5. The main procedures performed were:

– Interview of those responsible in Sonae Sierra for the preparation of the Report and for the reported

data, so as to know and understand the management and report principles, systems and procedures

applied;

– Review of the compliance and consistency of the GRI indicators reported and of the remaining

“Standard Disclosures” related contents, with the GRI guidelines requirements;

– Review of the processes, criteria and systems used to collect, accumulate, present and validate the

data for 2011, relating to the information reviewed by us;

– Review of the procedures and criteria in place to monitor and measure progress against 2011

Corporate Responsibility targets and actions;

– Analytical data review, and tests on a sample basis, of the calculations made by Sonae Sierra,

relating to the quantitative data, as well as tests to corroborate the quantitative and qualitative data

included in the scope of our work, by obtaining and reviewing related evidence thereof; and

– Review of the consistency of the sustainability information included in the Economic,

Environmental and Social Report 2011 and related publicly available reports, and that does not

contradict any significant information included in the Sonae Sierra’s Consolidated Report and

Accounts 2011.

Opinion

6. Based on the work performed, as described in paragraph 5 above, which was executed to obtain a

moderate level of assurance, nothing has come to our attention that causes us to believe that the corporate

responsibility information included in the Sonae Sierra, SGPS, S.A. Economic, Environmental and

Social Report 2011, referred to in paragraph 1 above, has not been reliable and consistently prepared and

that it does not conform, in all material respects, with the disclosure requirements of the version 3.1 of

2011 of the GRI Guidelines for the A+ application level and with the criteria defined by Sonae Sierra.

Lisbon, 23 March 2012

_____________________________

Deloitte & Associados, SROC S.A.

Represented by João Carlos Frade


Feedback Form


At Sonae Sierra we aim to conduct our business in a way that is sensitive and responsive to our stakeholder’s needs and concerns.We hope that you enjoyed reading our Economic, Environmental and Social Report and would be grateful if you could take a few minutesto provide us with some feedback on this report.

Please complete the questions below and return your form either by email to [email protected] or by post to Rua Amílcar Cabral,n˚ 23, Quinta do Lambert, 1750-018 Lisbon, Portugal.

CAn YoU tell US…

1. About you.

Which stakeholder group do you belong to?

Investor/ financier Local community member

Tenant NGO/ charitable organisation

Client Media

Shopping centre visitor Government/ local authority

Sonae Sierra’s employee Student

Supplier

Other, please specify. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Which country do you reside in? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2. Please rate the extent to which you agree with the following statements: (Scale 1 = Strongly disagree; 6 = Strongly agree)

1 2 3 4 5 6 This report included information that is of interest to me

1 2 3 4 5 6 I liked the design and layout of this report

1 2 3 4 5 6 I was able to find the information I was looking for

1 2 3 4 5 6 The report contained a good summary of information across all topics

1 2 3 4 5 6 The report presented an honest and accurate account of Sonae Sierra’s performance

3. Using a scale of 1 to 6 (1 = Very Poor; 6 = Excellent), how do you rate:

1 2 3 4 5 6 The financial information presented in this report?

1 2 3 4 5 6 Sonae Sierra’s economic performance during the course of 2011?

1 2 3 4 5 6 The environmental information presented in this report?

1 2 3 4 5 6 Sonae Sierra’s environmental performance during the course of 2011?

1 2 3 4 5 6 The social information presented in this report?

1 2 3 4 5 6 Sonae Sierra’s social performance during the course of 2011?

4. Is there any information on Sonae Sierra’s economic, environmental and social performance which you felt was missing from thisreport? If yes, please describe what this was.

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5. Are there any particular aspects of economic, environmental and social performance which you feel that Sonae Sierra needs toimprove on? If yes, please explain which ones.

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continued

mailto:[email protected]


Feedback Form continued


6. What do you see as being the main social, economic and/or environmental challenges for Sonae Sierra in the next five to ten years?

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Please use the space below to provide your own comments on this report or any other aspect of Sonae Sierra’s economic, environmentaland social performance.

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Do you give us permission to publish your comments in our future CR communications?

Yes, I do give permission. You can publish my comments under the name of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

No, I do not want my comments to be published.

thAnK YoU

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