SUSTAINABILITY REPORT - SCA Property · tenanted property. The portfolio has a diverse tenancy mix...

SUSTAINABILITYREPORT30 June 2017

www.scaproperty.com.au

1 SCA SUSTAINABILITY REPORT JUNE 2017

CONTENTS

Page 2 Message from our CEO

Page 3 About SCA

Corporate Governance

Page 4 About this report

Page 5 Stakeholders and Material Issues

Page 7 Sustainability Strategy

Page 9 Progress Update:

■ Stronger Communities

■ Stronger Communities Framework

■ Case Study: Sensitive Santa


■ Environmentally Efficient Centres

■ Case Study: Griffin Plaza Solar


■ Responsible Investment

■ Employment

■ WH&S

Page 12 Performance Data

Page 13 GRI Content Index

The Board and Management of SCA (Shopping Centres Australasia Property Group ASX:SCP) is pleased to release our latest sustainability

report presenting the progress we have made in the second year of our sustainability program. SCA recognises the long-term sustainability responsibilities of our business. We understand and value the contribution our shopping centres can make as an integral part of their local communities.

We also appreciate the importance of reducing our energy and greenhouse gas footprints, and are committed to enhanced risk management through a responsible investment approach.

2016 was a year of considerable activity and progress in our business with several key portfolio and operational initiatives completed. We sold our New Zealand portfolio, acquired eight new shopping centres in Australia and restructured our property and facility management platform.

In 2016 we also achieved steady progress with the implementation of our new sustainability program, most notably with energy performance benchmarking and

A MESSAGE FROM OUR CEO

improvement planning completed across our portfolio. In addition, we lodged our first submission to the Global Real Estate Sustainability Benchmark (GRESB) and released our first sustainability report. Our shopping centre WH&S platform was enhanced, further improving the shopping experience for the approximately 100 million customers who visit our properties each year, and we are working with the Shopping Centre Council of Australia and our industry peers to develop new safety benchmarks.

Progress in some areas, such as our LED rollout, was impacted by movements in the electricity markets which necessitated a review of our implementation strategy. For similar reasons, our solar deployment program was delayed but we have developed an improved solution and are excited to have commenced implementation with rollout starting in Griffin Plaza. This program is designed to provide both reduced greenhouse gas emissions and create value uplift in our centres.

Our focus in 2017 will continue to be on implementation, in particular supporting our communities, energy efficiency upgrade projects across our portfolio and solar deployment. We look forward to reporting on our continued progress next year.

Anthony Mellowes Chief Executive Officer

2SCA SUSTAINABILITY REPORT JUNE 2017

ABOUT SCA

Shopping Centres Australasia Property Group is a stapled entity, listed on the ASX in 2012, and comprises the Shopping Centres Australasia Management Trust and Shopping Centres Australasia Retail Trust. It also manages two unlisted funds SURF 1, comprising five retail assets, and SURF 2 comprising two retail assets.

SCA provides Australian and international retail and institutional investors with income from regionally diverse non-discretionary focused retail assets. Presently SCA does not construct new centres but maintains an accretive asset acquisition strategy with select redevelopments.

As of 31 December 2016, SCA had a market capitalisation of $1.62 billion and owned and managed 74 shopping centres across Australia representing a total gross lettable area (GLA) of 516,371m2. The portfolio comprised six sub-regional centres, 65 neighbourhood centres and one stand-alone single-tenanted property.

The portfolio has a diverse tenancy mix with 86 major tenants (predominately supermarkets) and 1,192 predominantly convenience-focused specialty stores with a 98.4% occupancy by GLA.

During 2016, SCA’s New Zealand portfolio of 14 low growth stand-alone centre assets was divested and seven new centres were acquired in Australia. With this portfolio enhancement the total number of centres under management reduced from 81 to 74 while GAV increased from $2,076 million to $2,201 million.

SCA’s neighbourhood centres are typically anchored by one major tenant, such as a Woolworths or Coles supermarket, and a small number of specialty tenants such as bakers, butchers or hairdressers. They typically have a small internal common area and an on-grade carpark. Larger sub-regional centres have two or three major tenants, more specialty stores and bigger common areas and carparks.

SCA retains strategic Asset Management functions in house with an outsourced Property Management platform including facilities management.

SCA is headquartered in Sydney, Australia and, as of 31 December 2016, had 27 employees in this one office. The organisation is committed to hiring, retaining and developing a lean and talented management team focused on driving asset performance and operational excellence. The SCA team is supported by an experienced outsourced property and facilities management team based locally at our centres.

SCA has comprehensive corporate governance and risk management practices in place, in line with its obligations as an ASX-listed company. The Group is committed to the highest standards of operational and governance practices.

SCA’s Board has four Board Sub-committees: Audit, Risk Management & Compliance, Remuneration, Nomination and Investments. Sustainability is a management comittee which is overseen by the Sustainability Steering Committee, with the chair of the Committee reporting directly to the Board.

SCA adheres to a Code of Conduct, including the highest ethical standards with employees encouraged to operate in line with key corporate values such as professionalism, teamwork, safety and quality of service.

SCA reports against the ASX Corporate Governance Principles and Recommendations and participates in the Global Real Estate Sustainability Benchmark (GRESB).

Memberships and associationsSCA participates in a number of industry associations. In 2016 this included Shopping Centres Council of Australia, of which Chief Executive Officer, Anthony Mellowes is a Board member, the Green Building Council of Australia and the Financial Ombudsman Service Australia.

CORPORATE GOVERNANCE


Kwinana

Treendale

BusseltonSYDNEY

Berala

Burwood

Fairfield Heights

Greystanes

Lane Cove

GoonellabahLismore

Cardiff

MorissetSwansea

Katoomba

Leura

BRISBANEBrookwater Village

Collingwood Park

Coorparoo

Mission Beach

Mackay

Ayr

Gladstone

CarraraCabarita

Macksville

Merimbula

Drouin

Cowes

MELBOURNE

Epping North

Lilydale

Claremont

Sorrell

Kingston

Greenpoint

ShorelineNew TownGlenorchy Central

Riverside

Prospect Vale

Burnie

Meadow MewsPakenham

Wyndham Vale

Langwarrin

Griffith NorthGriffith

Inverell

West Dubbo

WoodfordGreenbank

Chancellor Park

Central Highlands (Emerald)

BallaratMt Gambier

Murray Bridge

WarrnamboolWarrnambool East

Ocean Grove

Albury

Orange North

Ulladulla

Blakes Crossing

Walkerville

Clemton Park

MudgeerabaWorongary

Belmont

The MarketsMt Warren Park

Jimboomba

Lillybrook

Annandale

Bushland Beach

Marian

Muswellbrook

Wonthaggi

KEYSub-regional

Neighbourhood

Freestanding

SURF Managed assetsWhitsunday

Tamworth

Moama

Mittagong

ABOUT THIS REPORT

This report covers SCA’s corporate operations and its Australian portfolio of neighbourhood and sub-regional shopping centres for the calendar year 2016. Stand-alone properties are excluded due to being under the full operational control of single tenants. Our SURF 1 fund (comprising stand-alone centres) and the New Zealand portfolio of centres (predominantly stand-alone centres which were sold in June 2016) are excluded.

The report is in accordance with the Global Reporting Initiative (GRI) G4 Core guidelines, with additional Construction and Real Estate Sector disclosures. Greenhouse gas emissions have been calculated in accordance with the Greenhouse Gas Protocol Corporate Standard.

The GRI Principles for Defining Report Content have been applied as follows:

■ Stakeholder Inclusiveness: SCA’s business has a straightforward strategy, a lean management team and a relatively small group of key stakeholders, namely tenants, investors, customers, employees and suppliers. This, combined with the local nature of centres, means that we can work closely with, and have an in-depth understanding of, the needs, of our stakeholders. As part of the development of our Sustainability Strategy we considered their needs specific to sustainability and will continue to enhance our dialogue with stakeholders in these areas.

■ Sustainability Context: SCA’s business model also lends itself to a relatively simple sustainability context, focusing on our impact and community role in the ‘Priority Sustainability Issues’ outlined on the following pages.

■ Materiality: For the commencement of our sustainability program we used a simplified materiality assessment process. Now, with two years of experience, we are in the process of reviewing this assessment in order to enhance our strategy and performance.

■ Completeness: This report provides performance data and, shows change from the prior year where available. Indicators are not provided for all ‘Priority Sustainability Issues’ at this stage and will be progressively added over coming years.

This report and data has been thoroughly checked in line with SCA’s robust internal processes. SCA recognises the benefits of external assurance but, in these early stages of the sustainability program, it was not deemed to be a priority this year (but will be considered in future years).

For more informationFor questions regarding this report please contact:

Sid Sharma Chief Operating Officer Chair Sustainability Steering Committee [email protected]

SCA PORTFOLIO


OUR STAKEHOLDERS AND MATERIAL ISSUES

Key stakeholder group How we engage

TenantsMajor retailers such as Woolworths or Coles, and specialty stores

■ Regular engagement with local tenants through centre management on a fortnightly basis.

■ Quarterly engagement with key national tenants by our asset management and leasing team.

InvestorsRetail and institutional, Australian and international. SCA is listed on the ASX which is the primary means of

communication with investors. Investor relations management is led by our CFO, Mark Fleming in conjunction with the CEO, senior management team and the Board. Regular investor briefings and events are held and frequent investor communications issued, including Annual and Half Yearly reporting and Annual General Meetings. Additional, ad hoc investor communications are provided for material business updates and an investor helpline is available for investor enquiries.

Communities and shoppersCommunities local to our shopping centres and customers visiting the centres.

Continuous engagement with local communities takes place onsite through local centre management staff and centre communications, including noticeboards, websites and social media, centre events and community activations.

EmployeesTeam based in our Sydney head office. Ongoing direct engagement; enabled by being a small

team within one office with regular one-to-one and team communications including:

■ Weekly staff meetings

■ Annual staff performance reviews

■ Annual engagement surveys for employee feedback

■ Regular training and team events

SuppliersOutsourced property and facility managers. Continuous engagement of property and facilities management

providers through our heads of asset and facility management and head of operations.

SCA works with five key stakeholder groups identified for engagement based on the importance to business strategy and operations.

Stakeholders


Through a materiality assessment process focusing on the needs of the key stakeholders outlined on page 5, we have developed a priority list of sustainability issues which represent the greatest materiality to the performance of our business and the performance and wellbeing of our stakeholders. This process involved the review of industry practices and trends, consultation with an industry sustainability expert, review of investor needs and engagement with SCA employees and our property and facilities management team.

In this early stage of our sustainability program, our focus is prioritised on a number of key issues. Our Sustainability Strategy is based on three pillars outlined below. Over the coming years we will develop and implement additional indicators to measure and report on in order to provide an even more comprehensive picture of performance.

Priority sustainability issues Boundary

Community wellbeing

The wellbeing and prosperity of communities local to our centres, including their capacity to be good customer bases for tenants.

All communities local to our neighbourhood and sub-regional shopping centres in Australia.

Energy and greenhouse gas emissionsThe energy used at our shopping centres and associated environmental impacts, climate change, operating costs and regulatory risks.

All neighbourhood and sub-regional shopping centres.

Responsible investmentCapability to identify, understand and manage environmental, social and governance issues of materiality to our investment performance and to maintain transparency around this.

SCA employees

Employee wellbeing and productivityThe well-being and productivity of our employees and ensuring that we retain a talented management team that has the capacity to deliver strong performance as an investment manager.

SCA employees

Visitor safety The safety of all visitors to centres. All our neighbourhood and sub-regional shopping centres.

Ethical operationOperating in an ethical manner, dealing effectively with conflicts of interest, corruption and bribery, anti-competitive practices, confidentiality of information and political donations.

SCA employees and outsourced service providers and consultants/contractors.

Note: Water use and waste at our shopping centres were not considered to be material issues at this time due to very limited amounts being within our operational control.

We take a precautionary approach to the management of our energy and greenhouse gas footprint, recognising that requirements to reduce greenhouse gas emissions and costs of energy will increase over time. We seek to be proactive while balancing the financial merit of all energy improvement projects.

Material issues


OUR SUSTAINABILITY STRATEGY

SCA’s Sustainability Strategy was launched in 2015 and provides a simple, achievable and solid platform that will support strong sustainability performance over the long-term. The strategy focuses on three core objectives, complementing existing programs in our business that enhance employment, work, health and safety, governance and ethical operations.

Objectives

Stronger communities

Environmentally efficient centres

Responsible investment

Strengthen the relationships between our shopping centres and their local communities, and help improve the wellbeing and prosperity of those communities.

Reduce the environmental footprint of our shopping centres, particularly greenhouse gas emissions through energy consumption.

Manage environmental, social and governance (ESG) risks that are material to investment value and communicate our performance on this.

Outcomes

■ Improved services and facilities for our local community.

■ Increased engagement and goodwill with our customers and communities.

■ Improved standing of our shopping centres as community hubs.

■ Increased footfall for tenants.

■ Reduced environmental impacts.

■ Reduced operating costs.

■ Improved quality of environment at shopping centres.

■ Reduced risk to asset and investment performance.

■ Enhanced corporate transparency and reputation.

Management

To enable the implementation of this strategy we operate a Sustainability Steering Committee that focuses on our corporate-level approach and performance, including our Responsible Investment objective. In addition, we have set-up an Asset Performance Working Group which includes representatives from our outsourced facilities and property managers and focuses on the practical implementation of our Stronger Communities and Environmental Efficient Centres objectives. SCA also engages with a property sector sustainability specialist on an ongoing basis to supplement internal expertise and ensure best practice is achieved in our approach.


PROGRESS SUMMARY

Commitment for CY2016 Status as at 30 June 2017 Commitment for CY2017

Complete Advanced NEW

Stronger communities

Commence implementation of the Stronger Communities approach.

Stronger Communities approach developed and being progressively implemented.

Complete roll-out of Stronger Communities to most neighbourhood and all sub-regional shopping centres.

Environmentally efficient centres

Complete benchmarking and development of improvement plan for building environmental performance

Benchmarking with Green Star Performance, energy auditing of portfolio and planning for performance improvement complete.

Implement the program of performance improvement measures in centres.

Set energy and GHG reduction targets Three year targets set. Achieve set targets.

Continue piloting and commence implementation of solar installation

Contract for installation of solar on 1 centre let.

Deploy solar on 3 centres.

Deploy LED lighting in centres Pilot of LED lighting deployment completed in 1 centre.

Priority sites for rollout selected and funding program commencing.

Deploy LED lighting in 8 centres.

Responsible investment

Review Sustainability Policy. Policy review in progress. Complete policy review.

Review and improve Sustainability Report. 2017 Sustainability Report produced and available on our website.

Ongoing commitment to improving our sustainability reporting.

Review and improve Global Real Estate Sustainability Benchmark (GRESB) survey result.

Several measures taken to improve SCA’s capacity with sustainability and GRESB score.

Review GRESB participation and value proposition to ensure relevancy and assess improvements, as appropriate

Conduct comprehensive materiality assessments every three years, with annual interim reviews.

Complete Review and update materiality assessment every three years.


Through 2016 we have made good progress across our three strategic pillars, as well as our employment and WH&S practices.

Stronger Communities

SCA has developed an approach to Stronger Communities that is both localised with each centre and will allow clear national reporting on the initiatives and their social, environmental and commercial benefits. While the change of property and facility management resourcing across our portfolio delayed progress with this program, we completed the pilot and are refining our approach to implement a more focused program in our centres from July 2017 onwards.

Stronger Communities Framework

SCA’s shopping centres are spread across a highly diverse range of Australian communities, each facing many different social and environmental issues.

The Stronger Communities Framework is a flexible framework allowing each of our shopping centres to implement community strengthening initiatives in response to issues specific to their local community.

As well as fitting within the Framework, all Stronger Communities initiatives are designed to deliver measurable social or enviromental benefits in the shopping centre’s local community as well as commercial benefits to the centre; a ‘shared value’ approach.

Stronger Communities: Sensitive Santa Around Australia young children and families can miss out on the opportunity to enjoy the traditional Christmas visit to their local shopping centre to meet and take a photo with Santa. This is particularly the case for children with autism and disabilities, who often will have to miss out on this experience as they can struggle in large crowds and with social interactions.

This year, in a national initiative, several of our centres held ‘Sensitive Santa’ sessions for children with special needs. These sessions provided an environment that catered to the children’s needs and eased their nervousness, offering the opportunity to meet Santa and creating an enjoyable and memorable experience for them and their families.

At centres such as Kwinana in WA, individual Santa sessions were held in a quiet environment outside of the centre’s usual trading hours. Positive feedback was received at all centres and we will be looking to expand this initiative in 2017/18.

Children enjoying a visit with Sensitive Santa at Murray Bridge Marketplace Dec 2016

Kids/YouthKids education

Kids Sport

DisadvantagedHomelessness

Youth on the streets

Healthy LivingMental health

Physical wellbeing

CommunityConnectivity

Disaster relief

StrongerCommunities

PROGRESS UPDATE

Mount Gambier Marketplace case studyThe centre dedicated a quiet room for Santa photos and received excellent feedback from the families and the local community on social media.

Comments from families included:

“Sensory Santa was a wonderful experience! This is the first year we have had a Santa photo without parents in it, and with our little boy actually smiling.”

“Big thankyou for putting the sensitive Santa on this year, 3 happy boys right here”

16,657 people reached473 Likes, 108 Shares

99 comments

24 Sessions

held

32 Children attended


Environmentally Efficient Centres Case Study: Griffin Plaza Solar

Griffin Plaza, located in Griffith NSW, has been selected as the pilot for the implementation of solar photovoltaic (PV) arrays on the unutilised roof space of the centre.

Recent works at the centre have improved access to the roof along with new air conditioning to enhance the indoor environment, making Griffin Plaza an ideal opportunity to test the effectiveness of solar on a typical neighbourhood centre.

Our solar partner has finalised the design and has received local Council consent to proceed with the installation of a 360Kw capacity solar array. This is capable of generating 470Mwh of energy per annum that will be purchased by SCA and our tenants, with any unused generated energy made available to the local energy grid. The production of renewable energy at the centre will have an estimated effect of reducing centre and tenant GHG emissions of around 332 tonnes of CO2e, which is the equivalent to an average passenger vehicle driving 1.2 million kilometres.

Once complete, the energy produced onsite will be on-sold to our tenants at favourable rates compared to open market retail rates while SCA will benefit from the same discounted rates for common area consumption. SCA will also receive licence fees for the utilisation of the roof space, improving centre income performance and valuation.

We look forward to reporting on the success of this plant in 2017/18 and the additional centre installations planned throughout 2018.

Griffin Plaza solar design

Solar photovoltaic (PV) arrays

Proposed walkway

Main switchboard

Inverted switchboard location

Cable tray

Coles area rooftop

Loading dock

Environmentally Efficient Centres

We have completed an energy auditing and benchmarking program across our portfolio. This included detailed energy audits of our sub-regional centres and the development of an energy audit surveying tool that was applied to our widely-spread portfolio of neighbourhood centres.

The centres were benchmarked with the Green Star Performance rating tool administered by the Green Building Council of Australia (GBCA). While we achieved certified ratings, we are currently using only selected relevant parts of the assessment commensurate with the nature of our properties.

SCA now has a budgeted improvement plan for the energy consumption of its portfolio and has set the following three-year reduction targets for the portfolio on a like-for-like basis and against a CY2016 baseline:

■ Landlord electricity consumption: 4% reduction

■ Landlord greenhouse gas emission reduction: 8% reduction

The installation of solar panels on our centres is a key initiative under this pillar and will provide both significant greenhouse gas emission reductions and financial benefits. This program was delayed in 2016 primarily due to the insolvency of a supplier, and impacts of changing electricity markets, however we have initiated a new contract for the first phase of system deployment in three centres in CY2017.


Responsible InvestmentResponsible Investment is designed to establish transparency around performance relating to environment, social and governance (ESG) for investors and stakeholders. We are achieving this through publication of our annual sustainability reports and through the participation in the Global Real Estate Sustainability Benchmark (GRESB).

GRESB is used by a growing number of investors in Australia and around the world to understand how investment managers are managing ESG risks. As a first-time participant with a new sustainability program, SCA’s first-year result was strong and initiatives implemented in CY2016, such as the energy auditing and benchmarking above, are expected to further improve our score in 2017.

In addition, as part of asset risk management, SCA has commenced a process with AIG to profile the risk to our shopping centres of climate change or extreme weather events. While our portfolio is well diversified by location around Australia, we recognise that such risks are increasing and greater insights into potential risks at specific centres and regions will assist with our forward portfolio planning.

SCA has also been working to reduce the potential for social risks in its supply chain. In 2016 our Facilities Management partner Knight Frank re-tendered the cleaning contracts at our centres. To help ensure the maintenance of cleaners rights and their fair remuneration by contractors, sub-contracting was limited to just one level and audits of remuneration payments, including superannuation entitlements, were implemented.

EmploymentSCA Property Group’s continued success depends largely on our staff who must continually meet the high expectations of investors in the changing and competitive finance and property services industries. To maintain these standards, and to continue meeting our business goals, it is essential that the Group recruits appropriately qualified, experienced and motivated personnel.

SCA Property Group is committed to an inclusive workplace that embraces and promotes diversity. The Group rewards and promotes team members based on assessments of individual performance, capability and potential. The Board is committed to providing opportunities that allow individuals to reach their full potential, irrespective of individual backgrounds or differences.The Group values and respects the unique contributions of people with diverse backgrounds, experiences and perspectives. We recognise that team members will assume changing domestic responsibilities during their careers and are committed to supporting this via flexible work and leave arrangements.

SCA Property Group’s commitment to gender diversity has resulted in the employment of a high proportion of women:

As at 30 June 2016:

■ Female executives in senior management: 40% Senior Management means the CEO, their direct or functional reports or their reports who have responsibility for an area and/

or report regularly to the Board or a committee of the Board on the performance of that area.

■ Female employees: 63%

The Group’s Diversity Policy is reviewed annually and is available at www.scaproperty.com.au/about/governance

However, in view of the Group’s current limited staff numbers of 29, it is the Board’s view that it is impractical to set diversity-related objectives and targets. The Board will continue to monitor this as the Group grows in size. In the reporting period, 30% of Non-Executive Directors on the Board were female which is consistent with current guidance from the Australian Institute of Company Directors (AICD).

The Remuneration Committee closely monitors diversity and receives reports on the levels of gender diversity within the business at each scheduled meeting.

WH&SThe Board and senior management of SCA Property Group are committed to ensuring the ongoing safety and wellbeing of our customers, employees, tenants, visitors and contractors. Safety is a core value across the Group and a key focus at all times and we are constantly striving to improve our health and safety performance across the Group.

The safety performance of the Group is an important agenda item at every Board meeting. The Board receives monthly reports on safety performance from the Group’s management team and is kept informed of key safety risks facing the business. Driving improvements in workplace safety standards and performance has been a major focus since listing. We have a robust work health and safety framework and governance platform in place and we continue to refine and enhance how it operates to ensure it remains fit for purpose.

In 2016 the following initiatives were undertaken:

■ We concluded a strategic Safety Framework Review which will lead to improvements in our existing safety management systems and reporting;

■ We developed a Strategic Vision for safety across the Group which will include a commitment to a unified set of standard safety leadership behaviours and commitments endorsed by our Board;

■ We commenced working with the Shopping Centre Council of Australia to develop industry standards to measure safety performance and ensure that best practice methods are shared across the industry;

■ Our retail property management teams and externally engaged consultants conducted monthly, quarterly and annual safety and property risk audits; and

■ Our retail property management teams developed remote contractor management programs and checklists.


PERFORMANCE DATA

Environmental | Property portfolioCY2015 CY2016 Change Unit

Electricity use - absolute total 18,314 19,748 +7.8% MWh

Electricity use - like-for-like total 17,471 16,627 -4.8% MWh

Gas use - absolute total 208 214 +2.9% MWh

Energy intensity - electricity and gas 0.120 0.117 -2.5% MWh/m2

Greenhouse gas emissions - Electricity absolute total 13,678 14,464 +5.7% tonnesCO2-e

Electricity like-for-like 13,390 12,702 -5.1% tonnesCO2-e

Gas (absolute & like-for-like) 38 39 +2.6% tonnesCO2-e

Total - absolute 13,716 14,503 +5.7% tonnesCO2-e

Total - like-for-like 13,428 12,741 -5.1% tonnesCO2-e

Intensity (absolute) 0.089 0.085 -4.5% tonnesCO2-e/m2

Environmental | GroupCY2015 CY2016 Change Unit

Electricity use - corporate office 30 32 +5.3% MWh

Greenhouse gas emissions - Corporate electricity 26 27 +2.6% tonnesCO2-e

Business flights 144 152 +5.6% tonnesCO2-e

Scope 1 (gas use at centres) 38 39 +2.6% tonnesCO2-e

Scope 2 (electricity at properties and head office) absolute

13,704 14,491 +5.7% tonnesCO2-e

Scope 2 (electricity at properties and head office) like-for-like

13,416 12,729 -5.1% tonnesCO2-e

Scope 3 (business flights) 144 152 +5.6% tonnesCO2-e

Total - absolute 13,886 14,682 -5.7% tonnesCO2-e

Total - like-for-like 13,598 12,920 -5.0% tonnesCO2-e

Paper consumption 1,206 2,779 +130% Reams A4

NABERS Energy Tenancy rating – corporate office 5.5 5.5 0 Stars (out of 6)

Social | Corporate Both genders Male Female Unit

Employee WH&S incidents 0 Lost days

Employee hires +11<30: 1 30-50: 1 >50: 0

<30: 3 30-50: 6 >50: 0

Number by age group

Employee turnover -7<30: 0 30-50: -2 >50: 0

<30: -2 30-50: -3 >50: 0

Number by age group

Gender diversity Employees 29 11 (37%) 18 (63%) Number

Board 6 4 (67%) 2 (33%)

Age diversity Employees <30: 6 (21%), 30-50: 22 (76%), >50: 1 (3%) By age group

Board <30: 0 (0%), 30-50: 2 (33%), >50: 4 (67%)

Employee training Executive: 13.8, Management: 13.4 Other employees: 5.8

Average hours per employee

Employee career development reviews

Executive: 100%, Management: 100% Other employees: 100% 100% 100% Percentage

receiving reviews

Employees with sustainability KPIs 3 (11%) Number


GRI CONTENT INDEX

General standard disclosure LocationStrategy and analysisG4-1 Statement from most senior decision-maker CEO’s Introduction (Page 2)

Organisational profileG4-3 The name of the organisation About SCA (Page 3)G4-4 Primary brands, products, and services About SCA (Page 3)G4-5 Location of headquarters About SCA (Page 3)G4-6 Countries of operation About SCA (Page 3)G4-7 Nature of ownership and legal form About SCA (Page 3)G4-8 Markets served About SCA (Page 3)G4-9 Scale About SCA (Page 3) www.scaproperty.com.auG4-10 Employees Performance Data (Page 12)G4-11 Collective bargaining No collective bargaining agreementsG4-12 Supply chain About SCA (Page 3)G4-13 Significant changes About SCA (Page 3)G4-14 Application of precautionary approach Our Stakeholders & Material Issues (Page 5)G4-15 External principles or other initiatives About SCA (Page 3)G4-16 Memberships of associations and advocacy

organisationsAbout SCA (Page 3)

Notes on data and calculations

1. CY2015 is the base-line year. 2. Like-for-like figures are based on the set of shopping centres owned for the whole of both CY2015 and CY2016. One property has been

excluded from like-for-like calculations this year due to problems with data quality. 3. Electricity data is for internal and external common areas, including car parks. For some centres this will include some centrally conditioned

air used by specialty store tenants.4. Two shopping centres use gas and no centres use diesel. 5. Intensity figures are calculated using occupied floor area (as of the end of the year) excluding the area of the major retailer tenants. This is

the best available intensity figure for areas not under the operational control of tenants as area figures for specialty tenants in neighbourhood centres are typically not available.

6. Greenhouse gas emissions calculated using National Greenhouse Accounts Factors (Aug 2016). 7. Flight emissions calculated using DEFRA emission factors. 8. Scope 3 greenhouse gas emissions from business travel by taxi, hire car or employee travel to and from work are not included due to

insufficient data and being a relatively small source of emissions. SCA does not own cars. 9. Corporate paper use includes copy paper purchased and outsourced printing. 10. Average annual vacancy rate for the like-for-like portfolio for 2016 was 1.3%, the same as in 2015.

Notes on year-on-year changes

1. The increase in electricity and greenhouse gas emission absolute total figures is due to a significant increase in SCA’s portfolio in CY2016. The like-for-like and intensity figures both dropped, indicating an improvement in efficiency.

2. The increase in Electricity used – Corporate office is less than the percentage increase in head count in the office. 3. The increase in Greenhouse gas emissions – Corporate flights is largely explained by the growth in our very widely spread Australian portfolio.4. The large increase in paper use is due to a reporting error in the CY2015 data where a large outsourced printing job was omitted from

data collection. 5. CY2015 Property portfolio electricity use data has been revised due to new data becoming available.


LocationIdentified material aspects and boundariesG4-17 Entities included / excluded About This Report (Page 4)G4-18 Definition of report content and aspect boundaries Stakeholders & Material Issues (Page 5)G4-19 Material aspects identified Stakeholders & Material Issues (Page 5)G4-20 Material aspect boundaries within the organisation Stakeholders & Material Issues (Page 5)G4-21 Material aspect boundaries outside the organisation Stakeholders & Material Issues (Page 5)G4-22 Report restatements Notes (Page 13)G4-23 Changes in scope and aspect boundaries No changes

Stakeholder engagementG4-24 Stakeholder groups engaged Stakeholders & Material Issues (Page 5)G4-25 Selection of stakeholders to engage Stakeholders & Material Issues (Page 5)G4-26 Approach to stakeholder engagement Stakeholders & Material Issues (Page 5)G4-27 Key topics and concerns raised Not reported

General standard disclosureReport ProfileG4-28 Reporting period About this report (Page 4)G4-29 Date of previous report 30 June 2016G4-30 Reporting cycle About this report (Page 4)G4-31 Contact for questions About this report (Page 4)G4-32 ‘In accordance’ option

GRI Content Index External assurance report

About this report (Page 4) This GRI content table This report is not externally assured

G4-33 External assurance policy and practices This report is not externally assured

GovernanceG4-34 Governance structure About SCA (Page 3)

Ethics and integrityG4-56 Values, principles, standards and norms of behavior About SCA (Page 3)

Specific standard disclosureEnvironmentalG4-DMA Management Approach Progress Update (Page 9)G4-EN3 Energy consumption within the organisation Performance Data (Page 12)G4-EN4 Energy consumption outside of the organisation Not reportedG4-EN5 Energy intensity Performance Data (Page 12)G4-EN6 Reduction of energy consumption Performance Data (Page 12)G4-EN15 Direct greenhouse gas emissions (Scope 1) Performance Data (Page 12)G4-EN16 Energy indirect greenhouse gas emissions (Scope 2) Performance Data (Page 12)G4-EN17 Other indirect greenhouse gas emissions (Scope 3) Performance Data (Page 12)G4-EN19 Reduction of greenhouse gas emissions Performance Data (Page 12)CRE3 Greenhouse gas emissions intensity of buildings Performance Data (Page 12)

EmploymentG4-DMA Management Approach Progress Update (Page 9)G4-LA1 Employee hires and turnover Performance Data (Page 12)G4-LA6 Workplace safety Performance Data (Page 12)G4-LA9 Employee training Performance Data (Page 12)G4-LA11 Career development reviews Performance Data (Page 12)G4-LA12 Employee diversity Performance Data (Page 12)


Disclaimer: The particulars contained in this document have been prepared with due care based on data compiled by SCA Property Group in good faith. While every effort is made to ensure all information is void of errors, no warranty is given to the accuracy of the information contained herein, and this document cannot form part of any contract. SCA Property Group reserves the right to vary or amend this document without further notice and recommends that any reader makes and relies upon their own enquiries.

Date post:	04-Aug-2020
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