Professional Documents
Culture Documents
Specialists in creating
SONAE SIERRA
Contents
Corporate Overview
Who We Are CEOs Statement The Year at a Glance Our Company Our Business Strategy 1 2 4 9 15
Social Performance
Suppliers Tenants Communities and Visitors Employees Safety and Health
71 72 78 83 91 96
Economic Performance
The Economic Context Operational Performance Consolidated Accounts
29 30 32 39
104
Environmental Performance
Energy and Climate Water Waste Biodiversity and Habitats
46 47 57 63 68
Environmental Aspects Labour Practices and Decent Work Aspects Human Rights Aspects Society Aspects Product Responsibility Aspects Independent Auditors Review
Feedback Form
157
C+
B+
A+ 3 3
Two important developments took place concerning the GRI framework in 2011. In March, the GRI launched the G3.1 Sustainability Reporting Guidelines, which include expanded guidance for reporting on human rights, local community impacts and gender. In September, the GRI launched the Construction and Real Estate Sector Supplement (GRI CRESS). The GRI CRESS is a version of the GRI G3.1 Guidelines tailored for the construction and real estate sector. It encompasses some specific performance indicators and disclosure requirements, as well as general guidance, so as to ensure that companies in this sector report most effectively on the industrys key economic, social and environmental sustainability issues. Sonae Sierra has developed this report in line with the GRI 3.1 guidelines and has also followed the GRI CRESS wherever possible. We have included a column in our GRI Content Index on pages 109 to 154 to show which of our GRI performance indicators have been reported in line with the GRI CRESS. However, since these guidelines were only released in September 2011, we have not been able to apply them 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.
Further reference:
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
CORPORATE OVERVIEW
SONAE SIERRA Who We Are CEOs Statement The Year at a Glance Our Company Our Business Strategy 1 2 4 9 15 Back to main contents Economic, Environmental and Social Report 2011
Loop5, Germany
Who We Are
Sonae Sierra is a specialist at the cutting edge of shopping centre development, ownership, management and the delivery of services to third parties in markets as diverse as 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.
CORPORATE OVERVIEW
SONAE SIERRA Who We Are CEOs Statement The Year at a Glance Our Company Our Business Strategy 1 2 4 9 15 Back to main contents Economic, Environmental and Social Report 2011
CEOs Statement
A conversation with Fernando Guedes Oliveira, Sonae Sierra CEO Q: How has Sonae Sierras business fared overall during the past 12 months and has the year turned out as you expected? A: Im really proud of the results we are able to report for the past 12 months, in spite of the challenging market conditions. We increased our net profit in 2011 by successfully sustaining income streams and reducing costs. Overall, global tenant rents are up on a like-for-like basis and our occupancy levels remained above 96% throughout the year a significant achievement in some markets where tenant sales were affected by lower consumer purchasing power. We have also mitigated some of the market risks outside our 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, what would you say have been your greatest achievements in 2011? A: Despite the increasing challenges of securing new capital and refinancing debt in Europe in particular, we have continued to sustain the growth of our business through new developments, with two new centres starting construction; one in Germany and one in Brazil. This has been made possible through our proactive capital recycling strategy, which in Brazil saw the successful Initial Public 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 European markets have undoubtedly affected consumer purchasing power and reduced tenant sales, we have succeeded in protecting our income streams and maintaining high levels of occupancy amongst our tenants. This has been achieved through the efficiency and attentiveness of our property management, as well as our willingness to work closely with tenants to protect their business viability. Finally, we continue to benefit from international expansion, and our growth in rapidly growing economies like Brazil hedges our risk in other markets where GDP is flatter. In 2011 we established a presence in Morocco and Algeria as a service provider to third parties, as well as delivering development services to a client in Croatia. The growth in our third party service provision is another success factor that has enabled us to retain talent, develop new income streams, and gain insights into new markets.
Q: What does 2012 look like for Sonae Sierra? Are business prospects likely to get worse before they can return to growth? A: The last couple of years have required us to focus on maintaining our financial stability, increasing operational efficiencies, controlling costs and retaining our core competencies. As a business, we have proven extremely resilient and we should emerge from the current financial crisis in a strong position to return 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 particular impact 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 positive results, thanks in part to our geographical spread, which enables us to be present in countries where economic growth is a reality. For instance in Brazil, we have two inaugurations scheduled for 2012: Uberlndia Shopping and Boulevard Londrina Shopping. In mature markets, we will maintain our efforts to improve operational efficiency, and we will continue to search for new investment opportunities, with a focus on Germany and also Italy, where in March 2012 we will inaugurate Le Terrazze in La Spezia.
IM REALLY PROUD OF THE RESULTS WE ARE ABLE TO REPORT FOR THE PAST 12 MONTHS, IN SPITE OF THE CHALLENGING MARKET CONDITIONS. WE INCREASED OUR NET PROFIT IN 2011 BY SUCCESSFULLY SUSTAINING INCOME STREAMS AND REDUCING COSTS.
Fernando Guedes Oliveira Chief Executive Officer
CORPORatE OvERvIEw
SONAE SIERRA Who We Are CEOs Statement The Year at a Glance Our Company Our Business Strategy 1 2 4 9 15 Back to main contents Economic, Environmental and Social Report 2011
Q: Can you comment on Sonae Sierras overall environmental and social performance over the past year? What have been the key highlights and challenges, and how has CR contributed to your wider business objectives? a: We are already reaping financial benefits from increased ecoefficiency across our portfolio for example, we have calculated that in 2011 we avoided costs of 7.3 million as a result of the energy efficiency measures we have implemented since 2002. With regards to social aspects we have also maintained a strong performance, sustaining levels of tenant and visitor satisfaction, our investment in local communities and reducing accidents among our workforce.
For Sonae Sierra, sustainability means the continuous evaluation of our economic, social and environmental performance, seeking to achieve a harmonious balance between all three areas. We continue to be viewed as an international benchmark of sustainability excellence in the shopping centre sector, as proven most recently by our funds being ranked as the most sustainable in Europe according to the Global Real Estate Sustainability Benchmark. We believe that sustainability will increasingly become a decisive factor in our relationship with our stakeholders. Society is becoming more and more aware of environmental and social questions and is rewarding those companies that have responsible and resilient business strategies. Legislation reflects this trend, and is progressively more demanding. Finally, through careful cost benefit analysis, we are able to prove that sustainability principles incorporated in all business areas can result in lower operational costs, which in turn lower our service charges for tenants and contribute to higher occupancy and satisfaction levels.
Q: Last year you highlighted a number of opportunities for expansion into new and emerging markets. Have these materialised, and do you plan to continue growing the business in new geographies? a: We believe we have the right combination of skills to tap into
the potential offered by new and emerging markets. We continue to actively explore opportunities to export our business model and have created a new department for this purpose. Some of the key principles underpinning our growth strategy into new and emerging markets include: Delivering third party services prior to direct investment, to learn first-hand about the market characteristics and key risks and opportunities. Disposing of some of our operational centres in established markets, to rebalance the weighting of our portfolio in favour of faster growing economies. Entering into partnerships with like-minded shopping centre investors/operators, to share skills and capabilities as well as investment risks. Currently, we are actively exploring further opportunities in the Mediterranean Basin (Morocco and Algeria) and Colombia.
CORPORATE OVERVIEW
SONAE SIERRA Who We Are CEOs Statement The Year at a Glance Our Company Our Business Strategy 1 2 4 9 15 Back to main contents Economic, Environmental and Social Report 2011
DEVELOPMENT
Commenced construction of a new project, Passeio das guas Shopping, in Goinia, Brazil Announced a joint venture with MAB Development to develop a shopping centre in Solingen, Germany Entered the final stage of construction of Le Terrazze in Italy and Uberlndia Shopping in Brazil Proceeded with the development of Boulevard Londrina Shopping in Brazil
MANAGEMENT
Proceeded with the letting of Le Terrazze (Italy); Uberlndia Shopping and Boulevard Londrina Shopping (Brazil) Initiated the letting of Solingen in Germany
Entry into
AlgarveShopping, Portugal
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 and Environment Management System (SHEMS) procedures for development on this project. Therefore, no information regarding this completed projects energy and water consumption; 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 consider adequate reporting on the existence of these works.
CORPORATE OVERVIEW
SONAE SIERRA Who We Are CEOs Statement The Year at a Glance Our Company Our Business Strategy 1 2 4 9 15 Back to main contents Economic, Environmental and Social Report 2011
9.7m
2011 2010 2009 2008
112.8m
2011 2010 112.8 123.4 108.8 105.9
2009 2008
-116.1
6,320m
2011 2010
1,173m
2011 2010 2009 2008
2009 2008
96.7%
8,495
2011 2010 2009 2008
1,924
2011 2010
2,234
1,924 2,017 2,059 1,963 2011 2010 2009 2008
2009 2008
CORPORATE OVERVIEW
SONAE SIERRA Who We Are CEOs Statement The Year at a Glance Our Company Our Business Strategy 1 2 4 9 15 Back to main contents Economic, Environmental and Social Report 2011
0.028
2011 2010 2009 2008
Greenhouse gas (GHG) emissions of our owned portfolio and corporate offices (tCO2e/m2 GLA)
0.028 0.034 0.067 0.071
Electricity efficiency (excluding tenants) of our owned portfolio (kWh/m2 mall and toilet area)
2011 2010 2009 2008 514 514 527
514
553
3.7
2011 2010 2009 2008
Total waste recycled as a proportion of waste produced (% by weight, across our owned portfolio)
2011 2010 2009 2008 46 53 51
53%
42
ArrbidaShopping, Portugal
CORPORatE OvERvIEw
SONAE SIERRA Who We Are CEOs Statement The Year at a Glance Our Company Our Business Strategy 1 2 4 9 15 Back to main contents Economic, Environmental and Social Report 2011
4.6
2011 2010 2009 2008
1.484m
Marketing investments in CR and other community contributions ( million)2
2011 2010 2009 2008 1.484 1.219 1.143 2.380
528
2011 2010 2009 2008
7.8
2011 2010 2009 2008
900
passionate about
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 donations collected from shopping centre visitors. 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 see page 102.
CORPORATE OVERVIEW
SONAE SIERRA Who We Are CEOs Statement The Year at a Glance Our Company Our Business Strategy 1 2 4 9 15 Back to main contents Economic, Environmental and Social Report 2011
3 6
Target achievement
1 3
23
Parque D. Pedro Shopping, Brazil 2011 CR target achievement by impact area CR Impact Area Environmental Management Energy and Climate Water Waste Biodiversity and Habitats Suppliers Tenants Communities and Visitors Employees Safety and Health Number of targets 0% 1 1 1 3 1-25% 26-50% 51-75% 76-99% 1 1 1 100% N/A 1 1 1
TOTALS
3 2 2 5 2 3 4 2 2 11 36
1 1
3 2 4 1 2 1 1 2 7 23
To ensure that we make progress towards our long-term CR objectives, we set 69 additional CR actions to be implemented in 2011 and commissioned 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.
Further reference:
http://www.sonaesierra.com/en-gb/corporateresponsibility/reportsandfeedback/reports/2011reports.aspx
CORPORatE OvERvIEw
SONAE SIERRA Who We Are CEOs Statement The Year at a Glance Our Company Our Business Strategy 1 2 4 9 15 Back to main contents Economic, Environmental and Social Report 2011
Our Company
Sonae Sierra is the international shopping centre specialist that is passionate about bringing innovation and excitement to the shopping industry. Incorporated in Portugal in 1989, Sonae SGPS (Portugal) and Grosvenor (United Kingdom) each own 50% of the Company. We have an integrated business which encompasses owning, developing and managing shopping centres as well as the provision of services to third parties in markets as diverse as Europe, South America and North Africa. Our proactive approach to the business ensures that we have the necessary capital required to maintain and market our shopping centres, attract new and innovative tenants and to increase our centres asset values. This strategy has allowed us to develop a unique know-how and has earned us international recognition for the development of innovative products and delivery of highquality property management services. This in turn has enabled us 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, Colombia and Brazil4. We were also providing services to third parties in Croatia. We owned 49 shopping centres with a total Gross Lettable Area (GLA) of 1,924,117m2. We had five projects under construction, with a combined total GLA of 237,800m2, and six new projects in different phases of development in Portugal, Italy, Germany, Greece, Romania and Brazil. We also managed and/or leased a further 22 shopping centres and two new projects on behalf of others. As a pioneer in the creation of themed shopping centres, Sonae Sierra remains a leader in the development of unique concepts for exceptional shopping centres that offer great experiences and turn customers into fans. In 2011 our total portfolio under management including shopping centres owned by third parties welcomed 428 million visits.
operations in
49 owned
shopping centres in operation
8,495
contracts with tenants
5 shopping centres
under construction
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 these from 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 and social 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.
CORPORATE OVERVIEW
SONAE SIERRA Who We Are CEOs Statement The Year at a Glance Our Company Our Business Strategy 1 2 4 9 15 Back to main contents Economic, Environmental and Social Report 2011
10
Alexa, Germany
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 provides ultimate 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 our business culture, responsibility towards our staff, the environment and local communities where we operate and independence from political power.
Further reference:
CORPORatE OvERvIEw
SONAE SIERRA Who We Are CEOs Statement The Year at a Glance Our Company Our Business Strategy 1 2 4 9 15 Back to main contents Economic, Environmental and Social Report 2011
11
Corporate Services
SONAE SIERRA
Sierra Investments
Sierra Funds
Sierra Developments
Sierra Management
CORPORATE OVERVIEW
SONAE SIERRA Who We Are CEOs Statement The Year at a Glance Our Company Our Business Strategy 1 2 4 9 15 Back to main contents Economic, Environmental and Social Report 2011
12
Key Countries where we are present Other countries where we are providing services to third parties
Brazil
Portugal Number of shopping centres owned5 21 GLA of owned shopping centres (m2)6 806,841 Number of shopping centres managed 12 on behalf of other owners GLA of shopping centres managed 126,830 on behalf of other owners (m2) Visits to owned shopping centres (millions) 176.0 Visits to all shopping centres 184.9 under management (millions)7 Rents received at all shopping centres 191.9 under management ( million)8 Tenant sales at owned 2,010.1 shopping centres ( million)9 Tenant sales at all shopping centres 2,170.9 under management ( million) Costs by country ( million)10 95.6 Number of direct employees11 409
Spain 9 415,650 4 130,810 61.6 73.9 64.9 676.3 839.6 18.9 111
Total 49 1,924,117 20 309,545 396.3 428.0 433.8 5,186.0 5,562.0 170.6 1,090
5 6 7 8 9
10
11
These figures cover shopping centres that are 100% and co-owned by Sonae Sierra. GLA figures are periodically confirmed by technical specialists, sometimes leading to adjustments of these figures with respect to individual shopping centres. 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. Rents have been calculated based on account performance between 1 January 2011 and 31 December 2011. 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. 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 and 31 December 2011. 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 the total number of employees reported in the end column of this table.
CORPORatE OvERvIEw
SONAE SIERRA Who We Are CEOs Statement The Year at a Glance Our Company Our Business Strategy 1 2 4 9 15 Back to main contents Economic, Environmental and Social Report 2011
13
BOARD OF DIRECTORS Non-Executive: Paulo Azevedo (Chairman), Mark Preston, Neil Jones, Nicholas Scarles, ngelo Pauprio Executive: Fernando Guedes Oliveira (CEO), Jos Baeta Toms, Edmundo Figueiredo, Pedro Caupers, Ana Guedes Oliveira, Joo Correia de Sampaio Secretary: Joaquim Pereira Mendes
INVESTMENT COMMITTEE Fernando Guedes Oliveira (Chairman), Neil Jones, ngelo Pauprio, Edmundo Figueiredo, Nicholas Scarles, Pedro Caupers, Ana Guedes Oliveira Secretary: Joaquim Pereira Mendes
FINANCE COMMITTEE FISCAL BOARD Fernando Guedes Oliveira (Chairman), Neil Jones, Nicholas Scarles, ngelo Pauprio, Edmundo Figueiredo Secretary: Joaquim Pereira Mendes David Jenkins (Chairman) Effective members: Jorge Felizes Morgado, Antnio Barbosa Santos Alternate: Oscar Alada Quinta SROC: Deloitte & Associates
AUDIT & COMPLIANCE COMMITTEE OMBUDSMAN David Jenkins (Chairman), ngelo Pauprio, Nicholas Scarles Secretary: Joaquim Ribeiro Danilo Picolo
EXECUTIVE BOARD Fernando Guedes Oliveira (Chairman), Edmundo Figueiredo, Pedro Caupers, Ana Guedes Oliveira, Joo Correia de Sampaio.
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
SONAE SIERRA Who We Are CEOs Statement The Year at a Glance Our Company Our Business Strategy 1 2 4 9 15 Back to main contents Economic, Environmental and Social Report 2011
14
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 ethical principles which apply to everything we do and outline our commitment to success whilst operating , with
CORPORatE OvERvIEw
SONAE SIERRA Who We Are CEOs Statement The Year at a Glance Our Company Our Business Strategy 1 2 4 9 15 Back to main contents Economic, Environmental and Social Report 2011
15
wE fuNd
We provide effective investment solutions that utilise capital while maximising returns.
wE fINd
With extensive knowledge of the shopping centre business, we perform market, cost, community and environmental studies to identify sustainable retail opportunities.
wE AcQuIRE
We acquire the completed assets, many of which we co-own through investment funds, offering international investors sustainable financial rewards from dynamic, high quality retail assets.
PRE DEVELOPMENT
wE dESIgN
We create innovative schemes to offer exceptional retail experiences and bring vibrancy to the local area whilst sustaining environmental resources.
ASSET MANAGEMENT
INTEGRATED APPROACH
DEVELOPMENT
wE mANAgE
We manage our assets in a way that maximises returns for our clients, tenants and investors whilst also delivering value for communities and visitors and ensuring efficient use of natural resources.
wE dEvElop
Combining know-how and experience, we bring together exceptional construction and marketing support to develop and commercialise sustainable buildings.
PROPERTY MANAGEMENT
CORPORATE OVERVIEW
SONAE SIERRA Who We Are CEOs Statement The Year at a Glance Our Company Our Business Strategy 1 2 4 9 15 Back to main contents Economic, Environmental and Social Report 2011
16
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 INVESTORS & FINANCIERS We received 5,082 cases of press coverage covering economic, environmental and social aspects of our performance, 96% were positive or neutral
98% of our shopping centres achieved a tenant satisfaction rating of 4 or above on a scale of 1 (not satisfied) to 6 (very satisfied)
We have received some positive feedback from our property management services clients
TENANTS
CLIENTS 12% of visitors say that a companys environmental and social track record influences which shopping centre they visit and 23% say it influences what they buy
LOCAL AUTHORITIES We engaged with local authorities during the shopping centre planning, development and operations phases LOCAL COMMUNITY MEMBERS Community Advisory Panels were held across 29 of our shopping centres and new projects in 2011, giving us useful insights on community perspectives SUPPLIERS
EMPLOYEES 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
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 be found in the Suppliers, Tenants, Communities and Visitors and Employees chapters of this report.
CORPORATE OVERVIEW
SONAE SIERRA Who We Are CEOs Statement The Year at a Glance Our Company Our Business Strategy 1 2 4 9 15 Back to main contents Economic, Environmental and Social Report 2011
17
PORTUGAL
P P P P P
THE NETHERLANDS
P P P P
GREECE FRANCE
P P P P P
MOROCCO
C C C
GERMANY
P P C C
Marjane Fonciere Chellah (CDG Group) AUDA Agence durbanisation et de Developpement dAuda
BRAZIL
P P
ITALY
P
Coimpredil
P P
ALGERIA
P
Cvital Group
Grosvenor Fund Management Miller Developments Rockspring Castle City Schroders Investment Management Aberdeen Property Investors Scottish Widows
FINLAND
P P
KEVA Ilmarinen
COLOMBIA SPAIN
P P P P C P
Central Control
GREECE / CROATIA
C
Bluehouse Capital
CORPORatE OvERvIEw
SONAE SIERRA Who We Are CEOs Statement The Year at a Glance Our Company Our Business Strategy 1 2 4 9 15 Back to main contents Economic, Environmental and Social Report 2011
18
Maintain and enhance our shopping centre specialism, continuing to integrate our investment, development and property management business, and focusing on the highest quality product available in any given market. As part of this we will continue to pursue 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 and consumer purchasing power is increasing. We expect to see further growth in our operations in the Mediterranean Basin and Latin America 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. This includes the delivery of third party services and taking minority shareholding positions in new joint venture partnerships. We also anticipate reducing our capital involvement, and in some cases disposing of non-core operational centres in established markets, to free 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 right tenant mix, architecture, ambience, services and customer experience. Our ultimate aim is to become the destination of choice and to provide customers with a venue where their needs, aspirations, desires and expectations come together. For us, each one of our centres is more than a building: it is a living space in continuous evolution. As a company we will continue to focus progressively on prime assets and team up with key tenants and selected partners from other industries to develop new and exciting customer experiences, in line with consumer trends. Undertake dynamic portfolio management allowing us to shift the weighting of our portfolio. For mature markets, this means we are likely to see the sale of more properties and a reduction in our fund stakes; whilst emerging markets and geographical areas with growth potential will gain weight in Sonae Sierras portfolio. We are aware that the negative economic cycle we are presently experiencing brings with it important challenges, but we are confident in our ability to execute the defined strategy and, with rigour, efficiency and determination, to overcome those challenges.
CORPORatE OvERvIEw
SONAE SIERRA Who We Are CEOs Statement The Year at a Glance Our Company Our Business Strategy 1 2 4 9 15 Back to main contents Economic, Environmental and Social Report 2011
19
Risks tenant Default Risk: The trading environment has been tough for tenants in Portugal, Spain and Greece and it has been increasingly difficult for us to collect rents in some areas in these 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 close scrutiny of our tenants business performance. Over the past two years we have increased the efficiency of our property management in order to reduce service charges and have negotiated temporary rental discounts with some tenants. We have also intensified our efforts to increase footfall in shopping centres through our marketing and events programmes. Our geographical spread, and in particular our current presence in the Brazilian market reduces the impact that individual tenant default can have on our business.
Risks Property valuations Risk: Property valuations are affected by the prevailing conditions in the property investment market and the macro economic climate in general, and this impacts on our indirect results. Increased yields in many European markets have been adversely impacting on property values. Liquidity Risk: The lack of availability of bank debt in Europe at present constrains our ability to finance new developments and refinance loans which are maturing.
Mitigation strategy As a counter-measure to mitigate the adverse effects of yield shifts on asset value, we have focused on increasing the operational efficiency of our shopping centres and introducing tighter asset management controls. Our capital recycling approach helps us to offset the lack of available bank debt, the intention being to dispose of or refinance assets in mature markets so as to fund new development activity in rapidly growing economies. We maintain our loan to value ratio at prudent levels (below 43.7%). Our debt is quite long-term, relatively evenly spread throughout the years 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 local debt to finance not only our developments but also some of our operational shopping centres in this country. Sonae Sierra Brasil is a 50/50 joint venture with DDR, and this partnership arrangement also decreases our share of this risk.
Interest Rate Risk: Interest charged on borrowings can constitute a significant cost for our business. Exchange Rate Risk: Brazil is the main market where Sonae Sierra is exposed to exchange rate risk.
12
CORPORatE OvERvIEw
SONAE SIERRA Who We Are CEOs Statement The Year at a Glance Our Company Our Business Strategy 1 2 4 9 15 Back to main contents Economic, Environmental and Social Report 2011
20
s water Sustainable water supply; water efficiency and avoiding water pollution
Risks Fines can be incurred for non-compliance with local wastewater regulations. Increase in water costs could reduce profitability by between 0.15% 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 in shopping centres between 2003 and 2011). Contribute to the recognition of Sonae Sierra as a responsible company. Increase competitiveness and sustain assets value by increasing water efficiency and/or reusing water on site.
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
Opportunities Integrate biodiversity on sites (such as green features that provide natural habitats) to demonstrate commitment; this also may result in visitors staying longer. Biodiversity impacts in the supply chain could lead to commodity price increases, e.g., impact of deforestation on timber prices in China.
13
14
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 to likelihood/ 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 AccountAbilitys 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. According to a pilot study commissioned on two of our assets in Portugal. See page 56 for further details.
CORPORATE OVERVIEW
SONAE SIERRA Who We Are CEOs Statement The Year at a Glance Our Company Our Business Strategy 1 2 4 9 15 Back to main contents Economic, Environmental and Social Report 2011
21
Risks Fines/ reputational damage if contractors do not comply with regulations. Ineffective delivery of suppliers services in shopping centres can reduce tenant and visitor satisfaction. Some supplier businesses may be impacted by commodity price increases.
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 an important 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 demonstrate added value to local communities. Lack of buy-in from local community could reduce footfall. Lack of attentiveness to visitors needs in the long-term decreases appeal and competitiveness of the centre.
Opportunities Maintain good community relations; this is likely to result in higher footfall and sales. Enhance our brand through projects that demonstrate 'corporate citizenship' (e.g., Volunteering Day, CR campaigns, educational projects). Contribute to sustaining high footfall and sales by being attentive to changing 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 policies such as offering flexible work arrangements. Increase competitiveness by retaining talented employees (the estimated value of innovations implemented by Sonae Sierra as a result 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.
Opportunities Reduce insurance costs. Future-proof assets (buildings need to comply with ever-tightening S&H regulations).
Strong stakeholder expectations in relation to this issue, as serious accidents/ fatalities on sites can damage reputation. Enhance reputation through awards and recognition by stakeholders for proactive attitude.
More detailed information about how we manage our environmental and social risks and maximise value generating opportunities is provided in the Environmental and Social sections of this report.
CORPORatE OvERvIEw
SONAE SIERRA Who We Are CEOs Statement The Year at a Glance Our Company Our Business Strategy 1 2 4 9 15 Back to main contents Economic, Environmental and Social Report 2011
22
SoNAE SIERRA opERAtES SIx cR woRkINg gRoupS whIch bEtwEEN thEm govERN All cR ImpAct AREAS. thESE ARE compRISEd of EmployEES fRom AcRoSS thE compANy, At dIffERENt lEvElS of SENIoRIty, who tAkE RESpoNSIbIlIty foR SoNAE SIERRAS cR pERfoRmANcE.
Throughout the business, and across different functions and divisions, individual members of staff have responsibility for implementing specific aspects of CR in their daily activities. Safety, Health and Environment objectives form part of all employees performance appraisals (including Executive Committee members appraisals) which link through to remuneration and bonus schemes. We also carry out an annual evaluation of each Shopping Centre Manager, which takes into consideration results achieved in terms of tenant satisfaction and the corrective measures implemented in response to Tenant Surveys.
Reporting
CR Policy
CR Objectives
CORPORatE OvERvIEw
SONAE SIERRA Who We Are CEOs Statement The Year at a Glance Our Company Our Business Strategy 1 2 4 9 15 Back to main contents Economic, Environmental and Social Report 2011
23
Employees
Suppliers
Water
Tenants
Waste
Risk Management
CORPORatE OvERvIEw
SONAE SIERRA Who We Are CEOs Statement The Year at a Glance Our Company Our Business Strategy 1 2 4 9 15 Back to main contents Economic, Environmental and Social Report 2011
24
Continuous Improvement
Planning Checking and Corrective Actions Monitoring and measurement Conformity evaluation Incident investigation Non conformities, Corrective and Preventive Actions Records control Internal Audits Assessment and control of S&H Risks and Environmental Impacts Legal requirements and others Objectives and Targets Program
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
During the New Business phase of our projects, Environmental Due Diligence and an Environmental Impact Study are developed so that we can understand the potential environmental liabilities that sites may contain (such as contaminated land or materials) and therefore guarantee sufficient budget in our Investment Plans to adequately deal with these issues. Environmental Due Diligence is also implemented upon the acquisition of existing shopping centres. It is reinforced by the execution of S&H Due Diligence, which complements the Technical Due Diligence recommendations and provides Sonae Sierra with information on the capability of the existing shopping centres systems to perform according to Sonae Sierras expectations.
IN 2011 ouR INtEgRAtEd SAfEty, hEAlth ANd ENvIRoNmENt mANAgEmENt SyStEm (ShEmS) bEcAmE fully opERAtIoNAl. It IS bASEd oN thE INtERNAtIoNAl StANdARdS ISo 14001:2004 ANd ohSAS 18001:2007 ANd wAS REcERtIfIEd by lloydS QuAlIty REgIStER ASSuRANcE AccoRdINg to both of thESE StANdARdS IN 2011.
CORPORatE OvERvIEw
SONAE SIERRA Who We Are CEOs Statement The Year at a Glance Our Company Our Business Strategy 1 2 4 9 15 Back to main contents Economic, Environmental and Social Report 2011
25
The SHEDS are revised periodically to ensure that they are kept up to date. All new development projects, major expansions and refurbishments15 are required to achieve 100% compliance with the critical SHEDS standards, a threshold which would allow them to achieve a BREEAM Good certification. Shopping Metrpole, the expansion project which we inaugurated in Brazil in 2011, introduced measures such as minimising the power of lighting in the mall, food-court and car park areas and controlling these areas remotely through 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 in place to ensure that risks and characteristics unique to each site are managed adequately16. As of 31 December 2011, ISO 14001 certifications 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 14001 certification and four have achieved OHSAS 18001 certification, the most recent being Le Terrazze in Italy, which became the first shopping centre in the world to achieve joint ISO 14001 and OHSAS 18001 certifications for the SHEMS of its construction works, and Uberlndia 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 performance of new shopping centres with respect to energy; water; waste and safety, and identify further improvements that need to be made to optimise the buildings performance and reduce S&H risks. Across our operational portfolio, we have been measuring, monitoring and targeting 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 centres BMS, which allows us to have a better control of these utilities use. Data collection and monitoring for energy, water and waste is managed through a centralised online database which allows each of our shopping centre management teams to input environmental performance data and generate reports that can be used to compare performance across Sonae Sierra's portfolio. This information is also used to set annual targets to improve performance and increase staff and tenant awareness of all three issues. We monitor and evaluate safety and health performance on a regular basis using tools such as SHE Preventive Observations (SPO), emergency drills and SHE inspections (covering safety-related equipment and installations in tenant units and technical areas). Furthermore, the annual capital expenditure budget allocated to each of our shopping centres 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 man hours of training (including meetings) on SHE to staff, suppliers and tenants across our shopping centres, development projects and in our corporate offices.
15
16
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 or refurbishment 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 to Sierra 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 cost over 10 million or a construction cost of more than 10% of the centres Open Market Value (OMV) must apply the standard SHEDS procedure. Expansions, refurbishments and other works with a construction cost of over 2.5 million but under 10 million or with a construction cost of less than 10% of the centres 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. 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 to these 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 entirety of our SHEMS procedures for development on this project. See page 4 for further details.
CORPORatE OvERvIEw
SONAE SIERRA Who We Are CEOs Statement The Year at a Glance Our Company Our Business Strategy 1 2 4 9 15 Back to main contents Economic, Environmental and Social Report 2011
26
Ensure that all projects applying the SHEDS (former ESRD version) achieve at least 45% of the available points for applicable Leadership 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 further three shopping centres in operation.
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. Energy and Climate Achieve a 70% reduction in GHG emissions per m2 of GLA, by 2020, compared to the 2005 level (GHG Protocol scopes 1 and 2, plus business 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 and corporate activities, by 2020.
water 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 vulnerable to water shortages, by 2020. Ensure that all discharges to local water courses comply with Sonae Sierras wastewater quality standards and pollutant limits, by 2020
wE hAvE dEfINEd loNgtERm objEctIvES IN RElAtIoN to EAch of ouR mAtERIAl cR ImpAct AREAS. thESE INcludE ouR objEctIvES RElAtINg to ShE.
CORPORatE OvERvIEw
SONAE SIERRA Who We Are CEOs Statement The Year at a Glance Our Company Our Business Strategy 1 2 4 9 15 Back to main contents Economic, Environmental and Social Report 2011
27
Biodiversity and Habitats Promote the use of previously developed land or brownfield land for new Sonae Sierra shopping centre projects and protect and enhance biodiversity wherever possible. Strive to protect and enhance biodiversity on both existing Sonae Sierra sites and new projects and add value to new projects by actively integrating biodiversity whenever possible, taking into account the regional context.
Suppliers 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 more responsible 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 content to be increased, by 2020. tenants Deliver a high quality service to tenants and maintain high levels of satisfaction, striving to achieve an average tenant satisfaction level 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.
Communities and visitors Achieve full implementation of Community Advisory Panels (CAPs) across the whole Sonae Sierra operational and development portfolio, by 2014. Devise and implement a strategy aimed at involving the largest number of shopping centres local communities members, in order to improve communities well-being, by 2012. Enhance visitors recognition of Sonae Sierras shopping centres sustainability performance.
17 18
The proportion of timber products used that are from sustainable sources is calculated by value of spend. Tenant satisfaction is rated on a scale of 1 (not satisfied) to 6 (very satisfied).
CORPORatE OvERvIEw
SONAE SIERRA Who We Are CEOs Statement The Year at a Glance Our Company Our Business Strategy 1 2 4 9 15 Back to main contents Economic, Environmental and Social Report 2011
28
Safety and Health Enhance the well-being of our workforce and reduce the rate and severity of workplace accidents and occupational diseases, aiming towards 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, and promote safety and health conscious behaviour among our tenants, suppliers and visitors.
Safety, Health and Environment Management System (SHEMS) Obtain ISO 14001 and OHSAS 18001 certifications for the SHEMS of all our construction projects and the Sonae Sierra owned assets that we have managed for two or more years, by 2015.
ECONOMIC PERFORMANCE
SONAE SIERRA The Economic Context Operational Performance Consolidated Accounts 30 32 39 Back to main contents Economic, Environmental and Social Report 2011
29
Our integrated approach to shopping centre development, ownership and management enables us to have an impact on the economy which reaches beyond our own direct financial performance and remuneration to our shareholders.
Our business creates employment, stimulates local markets and contributes to economic growth in the communities where we operate.
NorteShopping, Portugal
Through our quest for excellence and our focus on specialisation, we have learned that it is only the creation of unique and exciting shopping and leisure venues that can deliver sustainable value. We sustain economic growth through capital recycling strategies, which allow us to exploit opportunities to develop new shopping centres in markets where we are already present and in new ones. Having established ourselves as a knowledge provider for third parties, we are generating revenue and building our experience in emerging markets where we aim to leverage partnerships with local companies to make our own investments in the future, thus contributing further to economic development in these regions.
Loop5, Germany
ECOnOMIC PERFORManCE
SONAE SIERRA The Economic Context Operational Performance Consolidated Accounts 30 32 39 Back to main contents Economic, Environmental and Social Report 2011
30
wIth dIREct REfERENcE to ouR pRofIt ANd loSS AccouNtS, It IS ESpEcIAlly plEASINg to NotE thAt wE SuccEEdEd IN gRowINg ouR dIREct RESultS by 6% IN compARISoN wIth 2010. thIS REflEctS two kEy StRENgthS to ouR mANAgEmENt StRAtEgy, NAmEly ouR StRoNg opERAtIoNAl pERfoRmANcE ANd ouR RIgoRouS AppRoAch to coSt coNtRol.
In Europe on the other hand, and particularly in Southern Europe, many of our key markets have been significantly affected by the austerity measures imposed as a result of the global financial crisis. Scarcity of debt remained a fundamental 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 retail sales, 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 not subject to strict austerity measures for at least part of 2011 (e.g. Italy and Germany), enabling us to compensate for those 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 little fluctuation during the year. Unfortunately, yields suffered an increase in Portugal and Greece in line with these countries overall credit ratings and market perceptions, but fortunately and we are beginning to see some yield contraction taking place in Spain. As a counter-measure to mitigate the adverse effects of such yield shifts on asset values, we have focused our attention on operational efficiency and introduced even tighter asset management controls. Our aim is to deliver the same levels of service quality at lower costs wherever feasible, thereby contributing to overall asset performance.
ECONOMIC PERFORMANCE
SONAE SIERRA The Economic Context Operational Performance Consolidated Accounts 30 32 39 Back to main contents Economic, Environmental and Social Report 2011
31
We will maintain our loan to value ratio at sensible rates (below 45%), also spreading our loan repayments over long timeperiods 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 other property 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.
ECOnOMIC PERFORManCE
SONAE SIERRA The Economic Context Operational Performance Consolidated Accounts 30 32 39 Back to main contents Economic, Environmental and Social Report 2011
32
Operational Performance
Growth in Spite of Capital Constraints
The shopping centre industry is a capital intensive one. To fund and deliver a healthy development pipeline, we are reliant on access to capital and debt structured at sensible commercial rates. Unfortunately, both these factors continued to be adversely affected in 2011 in many of the markets where we operate, partly owing to a re-evaluation of risk within the banking sector at large. The sovereign debt crisis and recent financial instability in Europe inevitably constrained the scale of our development pipeline during 2011, and resulted in some projects being put on hold. Despite such constraints, we had five shopping centres under construction during 2011, representing a total investment of about 522 million.
duRINg thE SEcoNd QuARtER of 2011 wE ANNouNcEd thE coNStRuctIoN of A NEw ShoppINg cENtRE IN SolINgEN, gERmANy, AS A 50/50 joINt vENtuRE wIth mAb dEvElopmENt, REpRESENtINg AN INvEStmENt of AppRoxImAtEly 120 mIllIoN. SolINgEN IS A pRojEct wIth 30,000m2 of glA IN A cAtchmENt AREA of ARouNd 270,000 INhAbItANtS.
ECONOMIC PERFORMANCE
SONAE SIERRA The Economic Context Operational Performance Consolidated Accounts 30 32 39 Back to main contents Economic, Environmental and Social Report 2011
33
2005
ECONOMIC PERFORMANCE
SONAE SIERRA The Economic Context Operational Performance Consolidated Accounts 30 32 39 Back to main contents Economic, Environmental and Social Report 2011
34
AS A RESULT OF THE QUALITY OF OUR ASSETS AND THE ATTENTIVENESS OF OUR MANAGEMENT ACTIVITIES, WE HAVE SUCCESSFULLY MAINTAINED HIGH LEVELS OF OCCUPANCY THROUGHOUT OUR CENTRES IN EUROPE. THIS HAS UNDOUBTEDLY BUFFERED THE POTENTIAL IMPACT THAT TENANT DIFFICULTIES COULD HAVE HAD ON OUR RENTS, AND THESE HAVE REMAINED RELATIVELY STABLE ON A LIKE-FOR-LIKE BASIS OVER THE 12 MONTH PERIOD TO DECEMBER 2011.
ECONOMIC PERFORMANCE
SONAE SIERRA The Economic Context Operational Performance Consolidated Accounts 30 32 39 Back to main contents Economic, Environmental and Social Report 2011
35
Portugal Spain Italy Germany Greece Romania Europe Brazil () Brazil (R$) Total Sierra
Rents in million
187.7 62.7 24.5 44.0 1.5 1.6 321.9 92.3 214.2 414.2
187.7 68.6 23.6 41.4 15.7 2.0 339.0 80.2 186.6 419.2
4.3 2.2 1.0 2.1 0.1 0.0 9.8 9.9 23.0 19.7
6.8 2.4 1.3 1.9 0.7 0.0 13.1 8.2 19.2 21.3
191.9 64.9 25.5 46.2 1.6 1.6 331.7 102.1 237.2 433.9
194.5 71.0 24.9 43.3 16.4 2.0 352.1 88.4 205.8 440.5
-1.3% -8.6% 2.4% 6.6% -90.0% -21.0% -5.8% 15.5% 15.3% -1.5%
-2.0% 2.2% 4.2% 10.9% -24.3% -21.8% 0.7% 15.3% 15.1% 3.8%
Jose Baeta Tomas Director, Chief Executive Officer, Sonae Sierra Brasil
IN BRAZIL, WE HAVE ENJOYED SUBSTANTIAL GROWTH IN BOTH SALES AND RENTS ON A LIKE-FOR-LIKE BASIS: SALES GREW BY 12% IN COMPARISON WITH 2010 AND RENTS WERE UP BY OVER 15% (COMPARING VALUES IN REAIS). THESE RESULTS ARE INFLUENCED BY A VERY DYNAMIC RETAIL ENVIRONMENT AND THE SUSTAINED INCREASE IN THE AVERAGE NET INCOME OF THE POPULATION WHICH HAS A GROWING MIDDLE CLASS SEGMENT.
ECOnOMIC PERFORManCE
SONAE SIERRA The Economic Context Operational Performance Consolidated Accounts 30 32 39 Back to main contents Economic, Environmental and Social Report 2011
36
Through working in close partnership with our joint venture partners and tenants, we seek to improve the value proposition for the visitors of our centres and differentiate these further from the competition. As a result, Sonae Sierras shopping centres have shown far greater resilience to retail market declines due to our unique value proposition. Our centres are managed by specialist professionals who implement innovative solutions such as improving the tenant mix, prioritising customer service and creating sound marketing campaigns whilst 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.
Sales % 11/10 total like-for-like -8.9% -2.7% 9.9% 1.2% -8.6% 68.0% -4.9% 12.2% 12.0% -0.2% -9.7% -2.8% 1.1% 1.1% -8.7% -1.0% -6.0% 12.2% 12.0% -1.0% Portugal Spain Italy Germany Greece Romania Europe Brazil total Sierra
Visits in million
visits % 11/10 total like-for-like -4.8% -2.5% 17.4% 2.7% -78.6% 72.9% -3.3% 1.6% -2.1% -5.3% -2.5% 0.5% 2.6% 2.2% 12.7% -3.2% 1.6% -2.1%
2011 Portugal Spain Italy Germany Greece Romania Europe Brazil () Brazil (R$) total Sierra
Sales in million
2010 2,383.5 863.0 281.7 495.3 16.2 10.0 4,049.7 1,523.8 3,545.3 5,573.5
2011 184.9 73.9 22.1 38.1 1.6 4.8 325.5 102.5 428.0
2010 194.3 75.8 18.8 37.1 7.6 2.8 336.4 100.9 437.3
2,170.9 839.6 309.6 501.0 14.8 16.8 3,852.7 1,709.3 3,969.4 5,562.0
ECONOMIC PERFORMANCE
SONAE SIERRA The Economic Context Operational Performance Consolidated Accounts 30 32 39 Back to main contents Economic, Environmental and Social Report 2011
37
OMV in million
6,320 3,328
2010
6,481 3,504
2009
6,340 3,595
2008
6,166 3,598
2007
6,147 3,786
2006
4,741 2,745
2005
4,096 2,498
6%
Brazil
As a counter-measure to try to minimise the negative effect of yield expansions, we have increased the efficiency of the centres we manage and we have implemented measures that allowed us to deliver good quality services with lower costs. This has enabled Sonae Sierra to achieve performance gains that have minimised expansion of yields, especially in Portugal. In Brazil, on the other hand, property values continued to rise in 2011, mostly fueled by the operational performance of our centres. At least for the moment, no significant compression of yields has occurred which translates into a very conservative approach to future value in spite of a very busy Merger & Acquisition (M&A) market.
ECOnOMIC PERFORManCE
SONAE SIERRA The Economic Context Operational Performance Consolidated Accounts 30 32 39 Back to main contents Economic, Environmental and Social Report 2011
38
uNtIl fINANcE bEcomES REAdIly AvAIlAblE, ANd At REASoNAblE pRIcES, wE muSt coNtINuE to fINd INNovAtIvE wAyS to RAISE cApItAl ANd to RAtIoNAlISE coStS ANd cApItAl ExpENdItuRE IN opERAtIoNAl ShoppINg cENtRES, So AS to pRotEct ouR cAShflow.
ECOnOMIC PERFORManCE
SONAE SIERRA The Economic Context Operational Performance Consolidated Accounts 30 32 39 Back to main contents Economic, Environmental and Social Report 2011
39
Consolidated accounts
The following Financial Statements consolidate all the companies by the proportional method.
NAV as per the financial statements Revaluation to fair value of developments Deferred tax for properties Goodwill related to deferred tax Gross-up of Assets NAV
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 cashin generated by the Brazilian IPO and, to some extent, from the sales of El Rosal and Plaza boli. The lower gearing ratios result primarily from the Brazilian business which presents a negative gearing level. The improvement trend in both gearing indicators is a result of the decrease in net debt (external debt less cash). The Company also measures its exposure to the retail real estate development risk through the Development Ratio, by monitoring the weight of the funds already spent in all its committed and noncommitted developments and those still to be spent in all its committed developments in relation to its total real estate portfolio (including the funds still to be spent in its committed projects). The Development Ratio is slightly below that of December 2010 due to the decrease in Investment Properties (the Brazilian IPO) and also the decrease in the overall committed developments with the inauguration of Colombo office Tower Ocidente.
Ratios 31 Dec 11 31 Dec 10
ECOnOMIC PERFORManCE
SONAE SIERRA The Economic Context Operational Performance Consolidated Accounts 30 32 39 Back to main contents Economic, Environmental and Social Report 2011
40
2011 Direct Income from Investments Direct costs from investments EBItDa Net financial costs Other non-recurrent income/cost Direct profit before taxes Corporate tax Direct net profit Gains realised on sale of investments Impairment & Development funds at risk provision value created on investments Indirect income Deferred tax Indirect net profit net profit 209,287 96,487 112,800 35,799 -3,241 73,760 12,663 61,097 -8,226 -6,977 -33,741 -48,944 2,405 -51,349 9,748
2010
% 11/10
226,881 103,465 123,416 44,101 -6,583 72,732 15,193 57,539 -1,707 -29,425 18,205 -12,927 35,918 -48,845 8,694
-8% -7% -9% -19% 51% 1% -17% 6% -382% 76% -285% -279% -93% -5% 12%
Consolidated Balance Sheet (000) 31 Dec 2011 31 Dec 2010 Var. (11-10)
Investment properties Properties under development and others Other assets Cash & Equivalents total assets net worth Bank loans Deferred taxes Other liabilities total liabilities net worth and liabilities
2,058,594 255,841 135,300 113,798 2,563,533 941,090 1,107,428 286,956 228,058 1,622,443 2,563,533
2,284,916 223,484 139,709 54,252 2,702,360 1,000,431 1,198,091 304,627 199,212 1,701,929 2,702,360
-226,321 32,356 -4,409 59,546 -138,828 -59,341 -90,662 -17,671 28,847 -79,487 -138,828
ECOnOMIC PERFORManCE
SONAE SIERRA The Economic Context Operational Performance Consolidated Accounts 30 32 39 Back to main contents Economic, Environmental and Social Report 2011
41
ECOnOMIC PERFORManCE
SONAE SIERRA The Economic Context Operational Performance Consolidated Accounts 30 32 39 Back to main contents Economic, Environmental and Social Report 2011
42
Retail Net Operating Margin Parking Net Operating Margin Cogeneration Net Operating Margin Shopping Centre net Operating Income Offices Net Operating Income Asset Management Net Operating Income net Operating Income (nOI) Net financial costs Other non-recurrent income/cost Direct profit before taxes Corporate tax Direct net profit Gains realised on sale of investments Value created on investments Indirect income Deferred tax Indirect net profit net Profit
101,550 1,478 508 103,536 0 1,881 105,417 36,331 -5,808 63,279 10,117 53,162 -8,079 -76,302 -84,381 -8,529 -75,852 -22,690
109,103 1,588 544 111,235 73 2,501 113,810 42,616 -6,672 64,522 11,150 53,372 -3,549 -13,637 -17,186 23,339 -40,525 12,847
-7% -7% -7% -7% -100% -25% -7% -15% 13% -2% -9% 0% -128% -460% -391% -137% -87% -277%
Consolidated Balance Sheet (000) 31 Dec 2011 31 Dec 2010 Var. (11-10)
Investment properties & others Other assets Cash & Equivalents total assets net worth Bank loans Deferred taxes Other liabilities net worth and liabilities
ECOnOMIC PERFORManCE
SONAE SIERRA The Economic Context Operational Performance Consolidated Accounts 30 32 39 Back to main contents Economic, Environmental and Social Report 2011
43
Project Development Services Rendered Value created in projects Operating Income Operating costs Net Operating Income (NOI) Depreciation and provisions Net financial costs Other non-recurrent income/cost Income tax net Profit
Consolidated Balance Sheet (000) 31 Dec 2011 31 Dec 2010 Var. (11-10)
Properties under development Other assets Cash & Equivalents total assets Net worth Bank loans Shareholder loans Deferred taxes Other liabilities net worth and liabilities
187,888 70,690 7,244 265,822 19,403 40,570 89,955 3,531 112,363 265,822
164,128 77,364 5,585 247,077 -68,465 9,320 175,476 4,063 126,682 247,077
23,760 -6,674 1,659 18,746 87,868 31,249 -85,521 -532 -14,319 18,745
ECOnOMIC PERFORManCE
SONAE SIERRA The Economic Context Operational Performance Consolidated Accounts 30 32 39 Back to main contents Economic, Environmental and Social Report 2011
44
Total Income from Management Services Operating Costs net Operating Income (nOI) Net financial costs Other non-recurrent income/cost Income tax net Profit
Consolidated Balance Sheet (000) 31 Dec 2011 31 Dec 2010 Var. (11-10)
Other assets Cash & Equivalents total assets Net worth Other liabilities net worth and liabilities
ECOnOMIC PERFORManCE
SONAE SIERRA The Economic Context Operational Performance Consolidated Accounts 30 32 39 Back to main contents Economic, Environmental and Social Report 2011
45
Retail Net Operating Margin Parking Net Operating Margin Shopping Centre net Operating Income Total Income from Services Rendered Overheads net Operating Income (nOI) Net financial costs/(income) Other non-recurrent income/cost Direct profit before taxes Corporate tax Direct Profit Value created on investments Deferred tax Indirect net profit net Profit
21,744 3,301 25,045 5,910 7,803 23,152 -3,022 -220 25,953 3,570 22,383 39,630 14,620 25,010 47,393
24,772 3,253 28,026 7,401 9,270 26,157 10 -2,824 23,322 3,548 19,774 25,102 10,481 13,863 33,637
-12% 1% -11% -20% -16% -11% 92% 11% 1% 13% 58% 39% 80% 41%
Consolidated Balance Sheet (000) 31 Dec 2011 31 Dec 2010 Var. (11-10)
Properties Other assets Cash & Equivalents total assets Net worth Bank loans Deferred taxes Other liabilities net worth and liabilities
ENVIRONMENTAL PERFORMANCE
SONAE SIERRA Energy and Climate Water Waste Biodiversity and Habitats 47 57 63 68 Back to main contents Economic, Environmental and Social Report 2011
46
eco-efficient
and begun to futureproof our assets against natural resource shortages
ArrbidaShopping, Portugal
Our shopping centres were among the first in their countries to pilot environmental practices and technologies and our Company has received numerous international awards for demonstrable improvements in environmental performance. We have a robust system in place to monitor our environmental impacts and measure performance across all the sites where we operate. Improving our environmental performance across all our activities has benefitted our business in several ways. We have saved costs by making our operations more eco-efficient; enhanced our reputation, and begun to future-proof our assets against natural resource shortages. Moreover, we are helping to lead our sector towards a more sustainable way of doing business: in 2011, our property funds were ranked as the most sustainable in Europe and third worldwide by the Global Real Estate Sustainability Benchmark (GRESB).
EnvironMEntAl PErforMAncE
SONAE SIERRA Energy and Climate Water Waste Biodiversity and Habitats 47 57 63 68 Back to main contents Economic, Environmental and Social Report 2011
47
IncreaSIng the energy effIcIency of our actIvItIeS and In partIcular of our buIldIngS conStItuteS one of the maIn StrategIeS to help uS to achIeve our ghg emISSIonS reductIon goal.
Alongside our efforts to manage our shopping centres energy use as efficiently as possible during the operations phase (as described on page 25), we investigate opportunities for onsite generation of renewable energy and procurement of green electricity through the grid. Three of our shopping centres are supplied by a certified renewable energy provider with a CO2 emissions factor 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 indirect activities. These include transport emissions generated by people visiting our shopping centres; by our staff travelling to and from work and 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 (or the SHE Management Plan for major refurbishments and expansions) which include guidelines for monitoring energy consumption and implementing best practices in energy conservation in order to achieve greater energy efficiency. By giving preference to the reuse of demolition materials and use of materials sourced within a 500km distance, we seek to avoid indirect GHG emissions associated with the transport of building materials to and from our construction sites. During the operations phase, we strive to maximise the accessibility of our centres to those using alternative transport modes. Most of our centres have dedicated spaces for the provision and display of travel information, including public transport timetables, and cycle storage facilities for tenants and visitors. We have also established Green Travel Plans at 13 shopping centres and two corporate offices to analyse the existing transport infrastructure and implement measures to 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 Challenge Communiqu. The Communiqu supports a robust, equitable and effective United Nations agreement on climate change, built on existing foundations. It calls upon governments to undertake a variety of actions, including international collaboration; creating effective market mechanisms; financing the transition to a low-carbon economy; incentivising innovation and encouraging efficiency. It is the fifth statement of its kind which is being issued to governments by leaders of companies from around the world, organised by the Corporate Leaders Network for Climate Action, The Prince of Waless Corporate Leaders Group on Climate Change and the University of Cambridge Programme for Sustainability Leadership.
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 Sonae Sierra owned shopping centres.
EnvironMEntAl PErforMAncE
SONAE SIERRA Energy and Climate Water Waste Biodiversity and Habitats 47 57 63 68 Back to main contents Economic, Environmental and Social Report 2011
48
correspond to GHG emissions from sources owned or controlled by Sonae Sierra, such as the company car fleet19, air-conditioning equipment, boilers and cogeneration plants.
are GHG emissions that are generated as a result of Sonae Sierras activities but are owned or controlled by another organisation, e.g., emissions produced by the electricity and heating and cooling which we purchase from energy companies.
associated with our activities that are also owned or controlled by another entity. The GHG emissions data which Sonae Sierra collects and reports for scope 3 covers emissions generated by: visitors travel to and from shopping centres; staff commuting; business air and rail travel; waste produced in our shopping centres and in corporate offices and the treatment of wastewater generated by our shopping centres20.
Scope 2 emissions
Scope 1 emissions
692,541 / 30,627 / 21,136 897,223 / 22,422 / 41,116 939,597 / 82,157 / 42,775 871,330 / 85,721 / 44,835
19
20
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 So Paulo office started to report 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 the lack of reliable data. 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 to set an implementation plan with specific targets and deadlines, but we aim to do that next year.
ENVIRONMENTAL PERFORMANCE
SONAE SIERRA Energy and Climate Water Waste Biodiversity and Habitats 47 57 63 68 Back to main contents Economic, Environmental and Social Report 2011
49
Boilers and natural gas Owned vehicles Combined Heat and Power (CHP) Refrigeration equipment and HFCs leakages Total scope 1
Electricity Chilled and hot water consumption Total scope 2 Total scopes 1 and 2
Business train travel Business air travel Employee commuting Visitors travel to and from our shopping centres Wastewater treatment (co-workers) Wastewater treatment (visitors) Waste treatment Total scope 3 Total scopes 1, 2 and 3
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 in tonnes 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 the various 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 value provided 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 and Germany, 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 2009 and 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 in tCO2e 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 where Sonae 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 accordance with 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 Conversion Factors 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 assumed that 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 disposal methods: 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 Matrise de l' Energie. June 2010. For incineration and landfill, we used the emission factor published in: Company certified by Carbon Disclosure Project: Ecometrica - 2011 (http://emissionfactors.com/ (for incineration with energy recovery the emission factor is always assumed to be zero). Sonae Sierra also produces waste 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.
Further reference:
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
EnvironMEntAl PErforMAncE
SONAE SIERRA Energy and Climate Water Waste Biodiversity and Habitats 47 57 63 68 Back to main contents Economic, Environmental and Social Report 2011
50
Data Qualifying note: This indicator includes all shopping centres owned by Sonae Sierra and in operation during the full reporting year. Not all of our shopping centres performed Mall Tracking studies (which allow us to identify the number of visits made by private car) in 2011. In these cases, data from previous years studies has been used.
Further reference:
Historical data from earlier years is available on our corporate website at http://www.sonaesierra.com/en-gb/corporateresponsibility/ourprogress.aspx
In 2011 We reduced our total Scope 1 and Scope 2 ghg emISSIonS by 19% In comparISon WIth 2010. overall, We have reduced theSe emISSIonS by 61% SInce 2006.
EnvironMEntAl PErforMAncE
SONAE SIERRA Energy and Climate Water Waste Biodiversity and Habitats 47 57 63 68 Back to main contents Economic, Environmental and Social Report 2011
51
GHG emissions of our owned portfolio and corporate offices GHG Protocol scopes 1 and 2, plus business air travel (tCO2e/m2 mall and toilet area)
Electricity efficiency (excluding tenants) of our owned portfolio (kWh/m2 mall and toilet area)
Data Qualifying note: The GHG emissions indicators include all shopping centres owned by Sonae Sierra and in operation for the full reporting year as well as Sonae Sierras eight main corporate offices. The electricity efficiency indicator includes all shopping centres owned by Sonae Sierra and in operation for the full reporting year. In 2011, C.C. Continente de Portimo in Portugal was undergoing refurbishment works from September to December. During this period, electricity consumption for the refurbishment project was provided 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 exclude consumptions from the refurbishment works.
Further reference:
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: http://www.sonaesierra.com/en-gb/corporateresponsibility/reportsandfeedback/reports/2011reports.aspx
The charts above show that we have continued to increase the energy and carbon efficiency of our business. Since 2005, our baseline year, we have reduced GHG emissions per m2 GLA by 67%, meaning that we are on track to meet our 2020 objective. In 2011 alone, we reduced our GHG emissions per m2 GLA by 18% and saved 10.1 million kWh of energy across our shopping centres and offices on a likefor-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 increase in 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 with consumptions lower than the portfolio average (El Rosal and Plaza boli in Spain) were sold and were therefore not considered in this years 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.
EnvironMEntAl PErforMAncE
SONAE SIERRA Energy and Climate Water Waste Biodiversity and Habitats 47 57 63 68 Back to main contents Economic, Environmental and Social Report 2011
52
Data Qualifying note: This indicator includes seven out of eight of our main corporate offices. Data from the Maia office was not included because the space in this office is shared with employees from other Sonae companies, therefore, no individual consumptions are available.
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 on page 4. The values reported are indicative of the quantity of electricity consumed during construction on these projects. The indicator is calculated for each project by dividing the total electricity consumed on the construction site by the total construction cost of the project. Electricity consumption is monitored and recorded on a monthly basis at each project, from the start to the completion of the works. The total construction cost of the Shopping Metrpole expansion was based on the best predicted value.
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.
ENVIRONMENTAL PERFORMANCE
SONAE SIERRA Energy and Climate Water Waste Biodiversity and Habitats 47 57 63 68 Back to main contents Economic, Environmental and Social Report 2011
53
Since 2002, we have reduced our Shopping centreS electricity conSumption per m2 of mall and toilet area by 30%. the electricity efficiency meaSureS which we have introduced Since then enabled uS to avoid the conSumption of an additional 100,000,000Kwh of electricity in 2011, which iS equivalent to over 7.3 million in energy coStS.
Installing LED lamps in different areas in four shopping centres in Spain (GranCasa, Luz del Tajo, Parque Principado and Plaza Mayor). Purchasing new, more efficient HVAC equipment for Valle Real in Spain. Shutting down the HVAC system during the winter months at Gli Orsi in Italy. Replacing the chiller at Airone and the chiller and cooling tower at Valecenter in Italy with more efficient ones. Substituting lamps in WCs and/or office areas at Manauara Shopping, Ptio Brasil Shopping, Parque D. Pedro Shopping, Shopping Metrpole and Shopping Penha (all in Brazil) with more efficient ones. Substituting the air-conditioning equipment at Ptio Brasil Shopping
Click here for a full list of energy conservation actions implemented in our shopping centres, corporate offices and on completed development projects in 2011.
22
EnvironMEntAl PErforMAncE
SONAE SIERRA Energy and Climate Water Waste Biodiversity and Habitats 47 57 63 68 Back to main contents Economic, Environmental and Social Report 2011
54
Hours in operation per day before Hours in operation per day after KWh per year before KWh per year after kWh saving per year cost saving per year ()
All light bulbs that need replacing at Luz del Tajo will from now on be substituted with LED light bulbs.
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.
EnvironMEntAl PErforMAncE
SONAE SIERRA Energy and Climate Water Waste Biodiversity and Habitats 47 57 63 68 Back to main contents Economic, Environmental and Social Report 2011
55
Locations where Sonae Sierra owns shopping centres Locations where Sonae Sierra has shopping centres under development and in the pipeline
region
Potential impacts
Increased coastal erosion and flooding. Loss of ecological habitat. Storm risk in winter. Increased likelihood of winter flooding. Health risks as a result of heat waves. 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. Higher temperatures and more heat waves. Lower rainfall and risk of drought. Higher temperatures and more heat waves. More periods of intense rainfall. More periods of intense rainfall. Higher temperatures and more heat waves. Less frosts in the So Paulo region.
Brazil north region Brazil central West region Brazil South East region
24
Source: Intergovernmental Panel on Climate Change (IPCC), Climate Change 2007: Synthesis Report.
EnvironMEntAl PErforMAncE
SONAE SIERRA Energy and Climate Water Waste Biodiversity and Habitats 47 57 63 68 Back to main contents Economic, Environmental and Social Report 2011
56
The increased demand for energy and the anticipated increase in the price of energy is expected to reduce profitability by a maximum of 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 of increases 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 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 operational shopping centres profitability in the long-term: for example, at NorteShopping, an estimated reduction of profits between 2% and 5.7% could occur in 2030. Water costs are also expected to rise, but estimates vary significantly and the impact on profitability would be less significant; for example, 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 risks associated with climate change. The impact on profitability is likely to be around 0.1% at NorteShopping and 0.7% at AlgarveShopping.
In 2010 we commissioned the Centre for Molecular Biology and Environment of the University of Minho in Portugal to perform a study on ecosystems services dependency focused on the same two pilot shopping centres, AlgarveShopping and NorteShopping. This study used the outputs of the previously mentioned study and highlighted other potential risks associated with climate change, such as seasonal water 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, increasing operational efficiency and improving drainage systems on shopping centre sites. These are strategies which Sonae Sierra is already actively pursuing. Nonetheless, we are aware that climate change is a complex phenomenon that could have further ramifications for our business activities in the different locations where we 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.
25 26
Intergovernmental Panel on Climate Change (IPCC), Fourth Assessment Report; Working Group II Report: Impacts, Adaptation and Vulnerability, 2007. Sergio Margulis (Banco Mundial) and Carolina Burle Schmidt Dubeux (COPPE/ UFRJ), eds., Economia da Mudana do Clima no Brasil: Custos e Oportunidades (2010).
EnvironMEntAl PErforMAncE
SONAE SIERRA Energy and Climate Water Waste Biodiversity and Habitats 47 57 63 68 Back to main contents Economic, Environmental and Social Report 2011
57
Water
Designing and operating water efficient buildings
We aim to ensure a secure water supply at all of our shopping centres, with a particular focus on locations that are vulnerable to water shortages. For this reason, in 2010, Sonae Sierra started to use the World Business Council for Sustainable Development (WBCSD) Global Water tool to identify the areas in which 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 Environmental Development Standards (SHEDS) define that specific equipment (like water chillers) must be avoided in order to minimise our vulnerability to water shortages. We also ensure that water efficient design, including equipment specifications and water recycling engineering solutions, is maximised.
Where feaSIble, We Integrate raInWater harveStIng and greyWater recyclIng SyStemS on neW projectS to reduce the need for freShWater or maInS Water conSumptIon.
Where feasible, we integrate rainwater harvesting and greywater recycling systems on new projects to reduce the need for freshwater or mains water consumption and we have set an objective for at least 10% of total water consumed at our shopping centres to be reused greywater or harvested rainwater by 2020. During the fit out process, we set requirements for water efficient sanitary equipment (such as sensor spray taps, waterless urinals and 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 water consumption 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, to prevent pollution from rainwater run-off we specify filter drains and porous paving in external paved areas and stormwater management plans are implemented to contain or decrease stormwater run-off, according to the sites characteristics. Additionally, our SHEDS guarantee that equipment like oil and hydrocarbon separators or wastewater treatment plants is installed, minimising pollution through the pre-treatment of these effluents before they are discharged. Our shopping centres may have up to five separate wastewater collection 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 are analysed regularly by externally certified laboratories, in order to control the contamination levels of our water discharges to municipal sewers, 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 from construction activities.
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 the use 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 the cooling 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 comply with Sonae Sierra's wastewater quality standards and pollutant limits.
ENVIRONMENTAL PERFORMANCE
SONAE SIERRA Energy and Climate Water Waste Biodiversity and Habitats 47 57 63 68 Back to main contents Economic, Environmental and Social Report 2011
58
Water continued
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 the past 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 water consumption was withdrawn from mains water supplies and at least 20% was supplied by groundwater and rainwater collected by our shopping centres.
Water Source (m3)
2011
Data Qualifying Note: This indicator includes 46 out of 49 shopping centres owned by Sonae Sierra and in operation for the full reporting year. Alexa in Germany was excluded as it was not possible to determine rainwater consumptions for this shopping centre due to the lack of meters. Loop5 in Germany was excluded due to problems with the water meters and due to this shopping centres Building Management System (BMS) not being fully operational. Pantheon Plaza in Greece was excluded because it was not possible to distinguish rainwater withdrawal and water withdrawn from mixed sources. In 2011, C.C. Continente de Portimo, in Portugal had refurbishment works from September until December. During this period, water consumed for the works was provided by the shopping centre and could not be metered separately. Consequently, water consumption values for this centre were estimated for this period in order to exclude consumptions from the refurbishment works. Across the portfolio, water withdrawal from wastewater was not included in 2011 as in previous years, since the wastewater used is not sourced from another organisation.
Ground water Rainwater collected directly and stored by the reporting organisation Municipal water supplies or other water utilities Mixture of ground water and municipal water Total water withdrawal
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 shopping centres excluded are those mentioned under the indicator Total water withdrawal by source. The percentage of water recycled or reused is determined by the following formula: (Water reused/recycled (m3) / Total water withdrawal (m3))* 100. The shopping centres which are contributing to water recycled/reused are: CascaiShopping; Centro Colombo; CoimbraShopping and LoureShopping in Portugal; Gli Orsi and Freccia Rossa in Italy and Parque D. Pedro Shopping and Shopping Plaza Sul in Brazil. Centro Colombo started to collect rainwater and also reuse water from cooling towers in November 2011, and these consumptions were included. For Dos Mares in Spain, it was considered that the methodology used in 2010 to estimate the amount of water reused/recycled was very imprecise, and consequently, data from this shopping centre was not reported in 2011. 8a Avenida, LeiriaShopping and ArrbidaShopping in Portugal, Pantheon Plaza in Greece and Shopping Penha in Brazil have water reuse systems in place but currently are not able to measure the real amount of water reused.
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 rainwater harvesting systems at ArrbidaShopping, 8a Avenida and Centro Vasco da Gama in Portugal and set up water reuse systems in cooling towers at LoureShopping and GaiaShopping in Portugal. We also proceeded with the implementation of a rainwater harvesting system GaiaShopping in Portugal and water reuse systems at NorteShopping (Portugal) and Parque D. Pedro Shopping (Brazil). In total, 11 Sonae Sierra shopping centres have rainwater harvesting systems in place; 21 are harvesting groundwater and nine are reusing water from their cooling towers. At Gli Orsi in Italy, the installation of the water reuse system is planned for 2012.
Further reference:
Historical data from earlier years is available on our corporate website at: http://www.sonaesierra.com/en-gb/corporateresponsibility/ourprogress.aspx 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
ENVIRONMENTAL PERFORMANCE
SONAE SIERRA Energy and Climate Water Waste Biodiversity and Habitats 47 57 63 68 Back to main contents Economic, Environmental and Social Report 2011
59
Water continued
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 on page 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 annual renewable water supply per person and two are located in areas of medium scarcity. All other projects are located in areas where the water 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.
Data Qualifying Note: This indicator includes 48 out of 49 shopping centres owned by Sonae Sierra and in operation for the full reporting year. This indicator refers to the amount of water consumed by each shopping centre, excluding tenants, during the reporting year, divided by the number of visits to the shopping centre in that year. Loop5 from Germany was excluded for the same reasons explained on page 58.
Further reference:
Historical data from earlier years is available on our corporate website at: http://www.sonaesierra.com/en-gb/corporateresponsibility/ourprogress.aspx 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
EnvironMEntAl PErforMAncE
SONAE SIERRA Energy and Climate Water Waste Biodiversity and Habitats 47 57 63 68 Back to main contents Economic, Environmental and Social Report 2011
60
Water continued
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 over water 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 does not include consumptions for the Lisbon office (see explanations in the data qualifying note below), but does include the Bucharest office, 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 to the value obtained on its twin project, the Colombo office Tower Oriente. On the Shopping Metrpole expansion, water consumption was aligned with similar Sonae Sierra projects.
Water efficiency in corporate offices (litres/worker)
2011 2010 2009 2008 6,416 6,836 5,432 5,772
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 the reporting year divided by the number of workers at each office (including all Sonae Sierra direct employees, supervised and independent workers who are working at each office). Data from the Maia office was not included because toilets in this office are shared with employees from other Sonae companies. Data from the Milan and So 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 Sierras Invoice the irrigation water, which was estimated as no separated network existed. As the value was believe to be very high, it was decided to separate the irrigation network from the condominium and these works were only concluded at the end of November 2011. With these works it was also installed a water meter in order to report accurate values of this offices consumption.
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 on page 4. The values reported are indicative of the quantity of water consumed during construction on these projects. The indicator is calculated for each project by dividing the total 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 the Shopping Metrpole expansion was based in the best predicted value.
EnvironMEntAl PErforMAncE
SONAE SIERRA Energy and Climate Water Waste Biodiversity and Habitats 47 57 63 68 Back to main contents Economic, Environmental and Social Report 2011
61
Water continued
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 introduced since 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 toilet areas 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 of water, and we installed sensor taps (to avoid the water from running when not needed) in two shopping centres. All our shopping centres 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 further six shopping centres (LoureShopping, GuimareShopping and CoimbraShopping in Portugal; Valecenter in Italy and Parque D. Pedro Shopping and Shopping Metrpole in Brazil) and additional water meters which connect automatically to the existing BMS at a further two shopping centres (Pantheon Plaza in Greece and Parque D. Pedro Shopping in Brazil). We also installed additional meters necessary to 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.
SInce 2003, We have reduced ShoppIng centreS Water uSe per vISIt by 12%, and the Water effIcIency meaSureS WhIch We have Introduced SInce then enabled uS to avoId the conSumptIon of an addItIonal 212,422m3 of Water equIvalent to 814,962 In coStS In 2011.
ENVIRONMENTAL PERFORMANCE
SONAE SIERRA Energy and Climate Water Waste Biodiversity and Habitats 47 57 63 68 Back to main contents Economic, Environmental and Social Report 2011
62
Water continued
Investment in shopping centres water efficiency pays off (continued) EFFICIENT EQUIPMENT AND CREATIVE CAMPAIGNING SAVE WATER AT GRANCASA
Sonae Sierras shopping centres in Spain are among the most water efficient in the portfolio using 2.3 litres of water on average per visit in 2011. GranCasa decided to implement a programme to reduce visitors water consumption in the shopping centre even further by acting on two different fronts: awareness raising 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 everyday activities, these campaigns used different media such as awareness messages; television; leaflets with water saving tips and even a competition to incentivise shopping centre visitors to take shorter showers. Furthermore, improvement works being undertaken in the shopping centre toilets were seen as an opportunity to procure and install waterless urinals which would allow significant water savings. However, we faced some challenges: the work had to be done outside of business hours and the necessary investment had to fit within our existing budget. We were able to complete the work by spreading it between January and September 2011 and by rationalising costs, managing to fund the whole 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 raising events have also inspired staff, tenants and visitors to use water more efficiently both inside and outside of the shopping centre.
EnvironMEntAl PErforMAncE
SONAE SIERRA Energy and Climate Water Waste Biodiversity and Habitats 47 57 63 68 Back to main contents Economic, Environmental and Social Report 2011
63
Waste
our progressive approach to waste management
Our Safety, Health and Environment Development Standards (SHEDS) include a series of design requirements to maximise the waste separation potential of every shopping centre we develop, so that once the shopping centre is in operation waste can be effectively sorted and sent for recycling and recovery. A site specific Waste Strategy Study is undertaken during construction to establish adequate provision 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 construction companies, 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 by tenants' activities. Aside from seeking to influence tenants practices, there is little that we can do to reduce waste production in our centres. Therefore, our waste management efforts are focused on waste segregation, management and disposal. Beyond legal requirements, we aim to progressively improve each shopping centre's waste recycling rate, and have set an objective to obtain a minimum average recycling rate of 55% (and a maximum average landfill rate of 30%), aggregated across all our owned shopping centres by 2020. Over the past years, we have successfully achieved significant reductions in the amount of waste sent to landfill. This is largely due our efforts to increase recycling and recovery rates, by investing significant resources in waste separation; finding new waste disposal opportunities (like on-site composting and incineration with energy recovery), and carrying out awareness raising and training activities among 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), and we continue to investigate the feasibility of applying similar systems in the other countries where we operate.
tArgEtS for 2012
over the paSt yearS, We have SucceSSfully achIeved SIgnIfIcant reductIonS In the amount of WaSte Sent to landfIll. thIS IS largely due our effortS to IncreaSe recyclIng and recovery rateS, by InveStIng SIgnIfIcant reSourceS In WaSte SeparatIon; fIndIng neW WaSte dISpoSal opportunItIeS and carryIng out aWareneSS raISIng and traInIng actIvItIeS among our Staff, tenantS and ServIce SupplIerS.
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).
EnvironMEntAl PErforMAncE
SONAE SIERRA Energy and Climate Water Waste Biodiversity and Habitats 47 57 63 68 Back to main contents Economic, Environmental and Social Report 2011
64
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, incineration with energy recovery and anaerobic digestion. Our completed construction projects generated a total of 13,259 tonnes of waste, of which 5,824 tonnes (44%) were disposed of in landfill and the remaining 7,435 tonnes were disposed of through reuse and recycling; hazardous waste treatment; waste composting and incineration with energy recovery.
total weight of waste by type and disposal method Shopping Centres and Corporate Offices (tonnes) Disposal Method Hazardous waste Non-hazardous waste Total
Anaerobic Digestion Composting Incineration with energy recovery Incineration without energy recovery Landfill Recycling Reuse Treatment/Elimination totals
1 80 2 28 111
Completed Projects (tonnes) Disposal Method Hazardous waste Non-hazardous waste Total
Landfill Treatment/Elimination (includes waste composting, energy recovery, treatment of hazardous waste, reuse and recycling processes) totals
2 2
44% 56%
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 major development projects completed during 2011, the Colombo office Tower Ocidente in Portugal and the Shopping Metrpole expansion in Brazil. The Shopping Campo Limpo expansion in Brazil was not 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 completed development 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, these soils are sent to external valorization and reuse options.
Further reference:
Historical data from earlier years is available on our corporate website at: http://www.sonaesierra.com/en-gb/corporateresponsibility/ourprogress.aspx 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
EnvironMEntAl PErforMAncE
SONAE SIERRA Energy and Climate Water Waste Biodiversity and Habitats 47 57 63 68 Back to main contents Economic, Environmental and Social Report 2011
65
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 in 2010, produced 9,184 tonnes of waste during its construction phase, which was equivalent to around 20% of the annual amount of waste generated by the 51 shopping centres in operation which we owned in 2010. Construction and demolition waste is one of the heaviest and 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 creates six jobs, but recycling the same 10,000 tonnes creates 36 jobs27. We have set an objective to maintain high performance in terms of waste 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 Ocidente project achieved a recycling rate above our target value of 85% for new projects, the recycling rate of the Shopping Metrpole expansion represented a poor performance that was below our expectations.
Total waste recycled as a proportion of waste produced (% by weight, on completed projects)
Colombo office Tower Ocidente (2011) Shopping Metrpole expansion (2011) Colombo office Tower Oriente (2010) Centro Colombo expansion (2010) Parque D. Pedro Shopping expansion (2010) 92% 39% 72% 100% 100%
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 on page 4. The construction recycling indicator is calculated for each major individual project completed during 2011. The indicator covers waste recycling for the whole of the construction period. It includes waste that is recycled, recovered and reused.
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.
27 28
Source: Green Facts by Ecoforce (http://www.ecoforce.co.uk/green-facts.htm). With the exception of the Shopping Campo Limpo expansion in Brazil, which is explained on page 4.
EnvironMEntAl PErforMAncE
SONAE SIERRA Energy and Climate Water Waste Biodiversity and Habitats 47 57 63 68 Back to main contents Economic, Environmental and Social Report 2011
66
Waste continued
increasing our shopping centres recycling rates reduces costs (continued)
Total waste recycled as a proportion of waste produced (% by weight,
across our owned portfolio)
2020 2011 2010 2009 2008 55 53 51 46 42
Data Qualifying note: These indicators include all shopping centres owned by Sonae Sierra and in operation for the full reporting year. Waste recycled includes waste that is recycled and recovered.
Further reference:
Historical data from earlier years is available on our corporate website at: http://www.sonaesierra.com/en-gb/corporateresponsibility/ourprogress.aspx 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
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 GuimareShopping was remodelled to improve its capacity, and in Centro Vasco da Gama, the food court service station containers were replaced. In Spain, our team at GranCasa identified that the waste compactor for recyclable cardboard was not located conveniently, and the space was reorganised to move it closer to the undifferentiated waste compactor. Between March and October 2011, this simple measure improved the cardboard recycling 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 the system was approved for implementation in 2012. At Shopping Campo Limpo and Ptio Brasil Shopping in Brazil, we implemented the recommendations of the Waste Characterisation Studies which were performed in previous years. In Portugal, Spain, Italy and Brazil we performed studies to identify whether it would be feasible to set up polluter payer waste management schemes for our tenants, following the success of this system in Germany. In Spain and Brazil we concluded that this system would not be feasible to implement. In Portugal and in Italy, Sonae Sierra will consider the possibility 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.
EnvironMEntAl PErforMAncE
SONAE SIERRA Energy and Climate Water Waste Biodiversity and Habitats 47 57 63 68 Back to main contents Economic, Environmental and Social Report 2011
67
Waste continued
increasing our shopping centres recycling rates reduces costs (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 end up being disposed of in landfill sites, taking up valuable land space and causing pollution to the air, soil and water. Since most shopping centre waste is produced by our tenants, influencing tenants practices is one of the principal strategies we can adopt in order 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 waste management scheme whereby tenants waste is separated by type and the associated cost is allocated directly to the tenant through 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 sessions for tenants and delivers brochures to explain the recycling programme and procedures. The shopping centre team analyses each tenants waste production by type on a monthly basis. Tenants identified as having a low recycling rate are asked to meet regularly with the shopping centre team, who explain to them the environmental and economic benefits of waste recycling. Tenants identified 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% in 2009 (during its first three months of opening). The increase in the recycling rate allowed us to reduce waste management costs by 19% in 2011 in comparison with 2010, and generated a cost saving of around 20,000. Following negotiations with our waste management supplier in September 2011, it also became possible for us to dispose of more recyclable materials (paper and cardboard, organic waste and wood) free of charge. This enabled us to make a final cost saving of around 35,000, a 33% reduction in comparison with 2010. All waste from Loop5 that is not recycled or composted is disposed of through incineration with energy recovery, meaning that the shopping centre does not send any waste to landfill.
Data Qualifying note: These indicators include all eight main Sonae Sierra corporate offices. Waste recycled includes waste that is recycled and recovered.
EnvironMEntAl PErforMAncE
SONAE SIERRA Energy and Climate Water Waste Biodiversity and Habitats 47 57 63 68 Back to main contents Economic, Environmental and Social Report 2011
68
Achieve 100% compliance with the approved recommendations of the PEE (or equivalent study) on new completed projects.
conStructIng on prevIouSly developed land and enhancIng the ecologIcal value of contamInated SIteS can brIng benefItS to the local economy, envIronment and communIty.
EnvironMEntAl PErforMAncE
SONAE SIERRA Energy and Climate Water Waste Biodiversity and Habitats 47 57 63 68 Back to main contents Economic, Environmental and Social Report 2011
69
Data Qualifying note: This indicator includes all Sonae Sierra development projects completed during the reporting year, with the exception of the Shopping Campo Limpo expansion in Brazil which is explained on page 4. In 2011 this applied to one project, the Shopping Metrpole expansion in Brazil. It did not apply to the Colombo office Tower Ocidente because this project involved development inside shopping centre building boundaries.
Further reference:
Historical data from earlier years is available on our corporate website at: http://www.sonaesierra.com/en-gb/corporateresponsibility/ourprogress.aspx
Our shopping centre expansion project which was completed in 2011, Shopping Metrpole in Brazil, complied with all the EIS recommendations for this site. This included, for example, setting up control points on the construction site for waste management and regularly monitoring fossil-fuel powered equipment and vehicles on site. At Passeio das guas Shopping, our project under development in Goinia, Brazil, we are committed to restoring a degraded forest area of 57,641m2 around the River Caveirinhas. We are developing an Environmental Recovery Plan which will involve reforestation of the area with native tree species and the preservation of wild fauna.
EnvironMEntAl PErforMAncE
SONAE SIERRA Energy and Climate Water Waste Biodiversity and Habitats 47 57 63 68 Back to main contents Economic, Environmental and Social Report 2011
70
29
For more information about our Community Advisory Panels, see page 87.
SOCIAL PERFORMANCE
SONAE SIERRA Suppliers Tenants Communities and Visitors Employees Safety and Health 72 78 83 91 96 Back to main contents Economic, Environmental and Social Report 2011
71
Our approach to social issues focuses on the stakeholder groups most affected by our operations: our suppliers; tenants; visitors; employees and the communities close to our shopping centres and new projects.
First and foremost, we are committed to conducting our activities so that risks towards people and assets are minimised, and to achieving excellent levels of social responsibility. We formalised this commitment in 2004 with the introduction of our Safety and Health Policy, and in 2008 our Safety and Health Management System became the first in the shopping centre sector to achieve certification in accordance with the OHSAS 18001 standard.
It is part of our day-to-day operations to make sure that our tenants and our shopping centres visitors are satisfied with the quality of service they receive from our Company and results have shown that, in spite of the challenging economic conditions, our shopping centres remain attractive to both. Beyond our emphasis on customer satisfaction, we have developed significant programmes to actively engage with our stakeholders on wider sustainability issues, including the Person and Planet Sierra Tenant Awards; our Community Advisory Panels; campaigns to promote responsible behaviour among visitors and innovation programmes for employees. Our studies suggest that there may be further opportunities to exploit growing consumer appetite for more environmentally sustainable and health-orientated products and services, and we are beginning to explore these through our tenant mix and marketing strategies.
SOCIAL PERFORMANCE
SONAE SIERRA Suppliers Tenants Communities and Visitors Employees Safety and Health 72 78 83 91 96 Back to main contents Economic, Environmental and Social Report 2011
72
Suppliers
Our Responsible Procurement Policy
We engage with our suppliers with the aim of encouraging them to adopt more responsible business practices. In 2007, we formally approved 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 environmental performance 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 can be 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 Property Management define the various steps that should be followed from the pre-selection and bidding process through to contract closure and post-contract evaluation. Both our Development and Property Management businesses have integrated the requirements of Sonae Sierras Safety, Health and Environment Management System (SHEMS) into their Service Suppliers Management Procedures, so that these are set up in a way that ensures that our main suppliers performance meets with Sonae Sierras Safety, Health and Environmental (SHE) requirements.
Within the scope of these procedures, all contracts with critical suppliers30 must include SHE clauses, and sub-contractors have the same level of SHE requirements as 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 also established SHE regulations for service providers, which include, for example, the obligation for 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.
BOTH OUR DEVELOPMENT AND PROPERTY MANAGEMENT BUSINESSES HAVE INTEGRATED THE REQUIREMENTS OF SONAE SIERRAS SAFETY, HEALTH AND ENVIRONMENT MANAGEMENT SYSTEM (SHEMS) INTO THEIR SERVICE SUPPLIERS MANAGEMENT PROCEDURES.
We collaborate closely with our critical suppliers on specific issues relating to SHE through our SHEMS procedures such as those described 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 the identification 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 development contractors source materials (generally pre-manufactured goods) on our behalf. This compromises our ability to gauge a clear understanding of the scale of our impacts in terms of raw materials consumption. Nonetheless, through our SHEDS and our Service Suppliers 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. The SHEDS prohibit the use of materials which are known to have negative impacts on the environment and on the health and well-being of building occupants and timber products derived from non-sustainable managed forestry.
TARGETS FOR 2012
Ensure that at least 50% of timber used in new shopping centre projects or refurbishments is procured from certified sustainable sources. Ensure 100% of relevant suppliers answer the CR questionnaire and receive feedback with the aim of assessing their baseline CR 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 include clauses 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 owned shopping centre using the check-list created during 2011, and reduce non-conformities to a maximum of 15%.
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 considered to be main shopping centre service providers: cleaning, security, maintenance and waste management.
SociAl PErforMAncE
SONAE SIERRA Suppliers Tenants Communities and Visitors Employees Safety and Health 72 78 83 91 96 Back to main contents Economic, Environmental and Social Report 2011
73
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 with critical 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 high proportion of spend on locally-based suppliers. On new projects, supporting local suppliers can have considerable benefits for the local economy. For example, we estimated that 6 million was invested in the regional economy through the use of regional service providers and resources for the construction of LeiriaShopping in Portugal, which was completed in 2010.
Proportion of suppliers with ISO 14001 certification (%)
2011 2010 2009 2008 38 27 17 58
Data Qualifying note: This indicator includes all Sonae Sierra suppliers with a total transaction value superior to 50,000 (n= 369 in 2011) with the exception of Brazil, where only suppliers of So Paulo office were included. The indicator is calculated as the total number of suppliers with ISO 14001 certification (n= 61) divided by the total number of applicable suppliers who responded to this question (n= 160).
Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation ( million)
2011 2010 2009 1,012 / 42 970 / 62 1,382 / 76
Data Qualifying note: This indicator includes the suppliers of our Property Management and Development businesses, as well as corporate services suppliers.
on neW projectS, SupportIng local SupplIerS can have conSIderable benefItS for the local economy. for example, We eStImated that 6 mIllIon WaS InveSted In the regIonal economy through the uSe of regIonal ServIce provIderS and 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.
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.
SociAl PErforMAncE
SONAE SIERRA Suppliers Tenants Communities and Visitors Employees Safety and Health 72 78 83 91 96 Back to main contents Economic, Environmental and Social Report 2011
74
Suppliers continued
Embedding our sustainable supply chain procedures (continued) EngAgEMEnt WitH SuPPliErS At lE tErrAzzE BringS 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 be the biggest shopping centre in La Spezia province. Since the beginning of the construction works, we have been implementing our SHEMS on site to reduce risks for workers and the community, and lower our impact on the environment. We have faced several difficulties: on a practical side, the relatively small size of the site made it difficult to store some materials or install some equipment needed to implement the good practices prescribed by the SHEMS, and the characteristics of the site made it prone to flooding. We also had to challenge the conventional habits and attitudes of our suppliers, 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 our suppliers and assessing their SHE performance. We delivered extensive training every month, totalling 1,876 man hours since 2010, to ensure that all new staff were appropriately informed about different SHE aspects. We tracked the water and energy consumption and waste production associated with the construction activities and dedicated considerable effort to minimise the amount of waste sent to landfill. For example, the soil removed from the construction site was used for nearby areas construction works and waste separation was improved thanks to clearer instructions on waste compactors. We installed a rainwater collection system to spray roads for dust prevention and reused water to wash trucks. We adopted a series of measures to minimise safety risks and hazards and carried out observation exercises every month to establish and report on potential non-conformities with our SHEMS. We kept a record of every incident and near-miss, and although we recorded six staff accidents, auditors established that they were circumstantial and did not reflect the quality of our SHEMS. Our external project manager, Jacobs, also held regular SHE meetings with managers of all construction suppliers working on site. After inspecting the construction site in July 2011, auditors from Lloyds Register Quality Assurance recommended Le Terrazze for ISO 14001 and OHSAS 18001 certification, and Le Terrazze became the first construction site in the world to simultaneously obtain this double certification.
I think that le terrazzes Safety, health and environment management System (certified according the ISo 14001 and ohSaS 18001 norms) is very robust and well-structured. the starting point was the corporate Sonae Sierra management system that was enriched with the jacobs She programme. the final result was very positive and effective. the commitment to continuous improvement is evident; by december 2011 we had registered more than 2,300 S&h observations from all people involved! the involvement of contractors is always crucial, and we reinforced this throughout the construction phase by organising four She leadership meetings with them. to further strengthen the involvement of workers, we put in place a recognition programme with coupons for workers who followed the She procedures and best practices with excellent results.
Maria Elena gasperini, Quality Manager, Jacobs Italia
SociAl PErforMAncE
SONAE SIERRA Suppliers Tenants Communities and Visitors Employees Safety and Health 72 78 83 91 96 Back to main contents Economic, Environmental and Social Report 2011
75
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 distributing questionnaires 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 allocated a 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, we hope 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 to assess suppliers knowledge about our shopping centres SHE procedures and the conditions of their equipment. The audits were carried out 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 Sierras fire, accident and evacuation procedures could be improved. Some non-conformances were also detected in some countries regarding the use of protective clothing and the delivery of training and medical check-ups for staff. Among our maintenance suppliers, the use of protective equipment and clothing required improvement. Non-conformances were also detected 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 the use 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 will then perform another round of CR audits for all critical property management suppliers across all our shopping centres.
SociAl PErforMAncE
SONAE SIERRA Suppliers Tenants Communities and Visitors Employees Safety and Health 72 78 83 91 96 Back to main contents Economic, Environmental and Social Report 2011
76
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 activities because the sustainability of these products depends on a number of factors, including: the raw materials used in the product; the environmental and ethical impacts associated with the raw materials extraction; the distance that the product and its various components have travelled; the eco-efficiency of the processes used to manufacture the product and its potential to be recycled or reused 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 materials and 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) to identify the eco-efficiency of different types of materials which can be used for each key building element, with attention to factors listed on page 72. This enabled us to create a sustainable materials checklist, using colour codes to grade different types of materials according 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 full checklist32. In future, we intend to set targets for the use of Gold and Silver materials.
Building element Gold materials Silver materials
Faades
Ceramics with recycled content (e.g., incorporating recycled glass) Concrete panels from a certified sustainable manufacturer Organic floor e.g. bamboo; cork; certified timber Recycled rubber Recycled ceramic or ceramic containing recycled material In-situ concrete with recycled aggregate (crushed structures) Cement with green certificate e.g. Ecooperando by Cemex Timber from certified sustainable sources Insulation comprising organic materials e.g. sheeps organic wool; wood fibre; cellulose Thermo insulated paint VOC-free paint Eco-labelled paints
Flooring
Secondly, we carried out a preliminary study to evaluate the viability of developing a standard specification which could be incorporated into all contracts on all development projects in order to ensure that materials come from reliable sources in respect of child labour and working conditions. Among the materials we identified for appraisal were light fittings; sanitary fixtures; furniture; pipework; ductwork and cabling; solar panels; air-conditioning equipment and any other equipment manufactured in Asia (except Japan) and Africa. We developed a questionnaire for our suppliers to establish whether any of these materials procured on our behalf came from regions with child labour risks 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 in the Paran State in Brazil. We assessed the recycled content of a number of materials used during this projects construction phase. The study showed, for example, that whilst the recycled content of cement blocks was only 2% and the recycled content of the cement used for the buildings foundations was 14%; the recycled content of the steel bars used was between 60 and 70%. We will use the methodology developed for this pilot project to assess the recycled content of key materials used on future development projects. The findings can also help us to identify which materials we might prioritise for seeking more sustainable alternatives.
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; artificial mineral fibres; lead; ozone depleting substances; silica; sea-dredged aggregates; Volatile Organic Compounds (VOC); pesticides and timber products derived from non-sustainably managed forests. Sonae Sierra prohibits the use of these materials in all development and property management activities.
SociAl PErforMAncE
SONAE SIERRA Suppliers Tenants Communities and Visitors Employees Safety and Health 72 78 83 91 96 Back to main contents Economic, Environmental and Social Report 2011
77
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, and identified the proportion of materials used that were recycled input materials. The table below shows that we reduced our consumption of materials in comparison with 2010, which was due both to budget reduction measures and the increased reuse of materials such as paper; archive folders; document dividers and plastic bags. We increased the percentage of materials used that were recycled input materials to 90%, and we also reduced the amount of paper consumed per worker by 15% in comparison with 2010.
Materials used by weight or volume in corporate offices and shopping centre offices
Tonnes used in 2011 Tonnes used in 2010
Material category
Percentage of materials used in corporate offices and shopping centre offices that are recycled input materials (%)
2011 2010 90 85
Archive folders Binder clips Business cards Document dividers Envelopes Markers Paper Pencils Pens Plastic bags Post it notes total
30 1 1 2 23 1 376 0 5 2 1 442
68 1 2 8 76 2 1,406 1 13 69 2 1,648
Data Qualifying note: These indicators include materials consumed in the offices of all shopping centres owned by Sonae Sierra and in operation for the full reporting year, as well as our eight main corporate offices. The reported materials are considered to be the most relevant in the activity of Sonae Sierra. All materials listed are direct materials; no non-renewable materials are consumed in Sonae Sierras offices. The percentage of recycled input materials used is calculated by applying the following formula: (total recycled input materials used/input materials used) x 100.
SociAl PErforMAncE
SONAE SIERRA Suppliers Tenants Communities and Visitors Employees Safety and Health 72 78 83 91 96 Back to main contents Economic, Environmental and Social Report 2011
78
tenants
A 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 those managed on behalf of third parties. We view our tenants as strategic partners; the financial performance of our tenants impacts directly on our own business performance through occupancy rates and rental income. It is our objective to deliver a high quality service to tenants and maintain high levels of tenant satisfaction, and we have set ourselves the goal of achieving an average tenant satisfaction level of 4 or above33 in all Sonae Sierra owned shopping centres by 2015. It is also our aim to engage with tenants to help them to improve their safety, health and environment performance.
It IS our objectIve to delIver a hIgh qualIty ServIce to tenantS and maIntaIn hIgh levelS of tenant SatISfactIon.
Our shopping centre management teams work with tenants on a daily basis to ensure that they are treated fairly and in a way to improve 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 surveys in all our owned shopping centres, and use the results to develop action plans to address aspects which received low scores and ultimately 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 invite tenants 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 units and following-up on any non-conformances detected. We monitor tenants employees work practices through our SHE Preventive Observations (SPO), a form of audit carried out in our shopping centres and corporate offices to observe workers, detect any instances of behaviour that present safety and health risks or environmental impacts and engage with the person(s) involved to make them more aware of SHE. We also invite tenants to compete for our Best Tenant Awards; the Person Award for best practice in S&H and the Planet Sierra Award for best practice in environmental management. Each of these Awards is presented bi-annually, meaning that each year there 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 our shopping 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 owned shopping centres. Organise at least four meetings with tenants on CR issues, in each Sonae Sierra owned shopping centre.
33
SOCIAL PERFORMANCE
SONAE SIERRA Suppliers Tenants Communities and Visitors Employees Safety and Health 72 78 83 91 96 Back to main contents Economic, Environmental and Social Report 2011
79
Tenants continued
Maintaining 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 the average level of tenant satisfaction at 4.6. An occupancy rate of over 95% was achieved at 36 out of 49 of our centres. We narrowly missed our targets for all shopping centres to achieve an average tenant satisfaction rate of 3.75 or above (98% of shopping centres achieved it) and for 85% of shopping centres to achieve an average tenant satisfaction rate of 4.25 or above (84% of our shopping centres achieved it). These results are nonetheless impressive taking into account the difficult economic environment in most countries where we operate, and have been achieved by working together with tenants, shopping centre owners and visitors to improve the value proposition of our centres and differentiate them from competition.
Global Tenant Satisfaction Index
2011 2010 2009 2008 2007 4.6 4.6 4.6 4.2 4.0
Data Qualifying Note: This indicator includes all shopping centres owned by Sonae Sierra and in operation for at least six months as on 31 December 2011. Sonae Sierras tenant satisfaction index is derived from tenants response to two questions: (1) Relationship with the Sierra Management Team, and (2) Degree of satisfaction with Sonae Sierra. For both questions, tenants can answer on a scale of 1 (not satisfied) to 6 (very satisfied) or 9 (no opinion).
IN 2011 WE INCREASED THE GLOBAL OCCUPANCY RATE OF OUR OWNED SHOPPING CENTRES TO 96.7%, AND MAINTAINED THE AVERAGE LEVEL OF TENANT SATISFACTION AT 4.6.
Further reference:
Historical data from earlier years is available on our corporate website at: http://www.sonaesierra.com/en-gb/corporateresponsibility/ourprogress.aspx 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
We also received positive feedback from some of our property management services clients for whom we manage shopping centres.
"We have every confidence that Sonae Sierra can provide high quality services and deliver fast and solid results, during a challenging time for the Romanian retail market."
Peter Kotsikis, Pradera Head of Greece and Romania.
Sonae Sierra manages the Militari Carrefour Gallery in Romania on behalf of Pradera Real Estate.
SociAl PErforMAncE
SONAE SIERRA Suppliers Tenants Communities and Visitors Employees Safety and Health 72 78 83 91 96 Back to main contents Economic, Environmental and Social Report 2011
80
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 main cost items in the service charge, we performed energy audits with tenants in each country in order to identify best practices that can be shared with all tenants in 2012. At River Plaza Mall in Romania, for example, we identified a series of actions with our largest energyconsuming 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 centres also enabled us to pass on cost savings to tenants.
rEDucing coStS for tEnAntS WitH An EnErgy SAving Solution At gli orSi
A common challenge in the property industry is that buildings which are designed to meet high standards of eco-efficiency do not always perform well in practice, and this 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. Although the shopping centre was developed in accordance with our environmental standards, its electricity consumption in operation has been relatively high; in 2010 Gli Orsi consumed an average 601kWh per m2 of mall and toilet area compared to a portfolio average of 514kWh during the same time period. Gli Orsi shopping centre consists of four main buildings. We identified that the high demand for electricity was specifically connected with building A, which had a total annual consumption of 3,501,000kWh, accounting for 67% of the shopping centres total electricity consumption. Within this building, there was a chocolate store 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 seek a solution which would enable us to improve the shopping centres environmental performance and at the same time allow us to reduce service charge costs. We found that the best approach was to install a small dedicated cooling system in the chocolate store which would avoid the need to keep the main chillers running to meet this one shop units cooling needs. This initiative resulted in considerable benefits: on a like-for-like basis, we reduced the total electricity consumption of building A by 31% in comparison with 2010 during the winter months, enabling the shopping centre to save 536,000kWh of electricity and avoid costs of 64,000 on its energy bill. Moreover, Gli Orsi was able make a saving of around 180,000 on its service charge, mainly as a result of reductions in energy consumption achieved, and this saving will be passed back to tenants through a credit note in 2012.
SociAl PErforMAncE
SONAE SIERRA Suppliers Tenants Communities and Visitors Employees Safety and Health 72 78 83 91 96 Back to main contents Economic, Environmental and Social Report 2011
81
tenants continued
understanding our tenants attitudes and expectations around cr
In 2011, we included some new CR questions in our Tenants Survey which is completed by tenants in each Sonae Sierra shopping centre. The results of the survey revealed that: 26% of our tenants agreed that a shopping centres commitment to environmental and social responsibility was an important factor that their company considers when making decisions to lease new space. Agreement with this statement was highest in Greece (38.5%) and lowest in Germany (6.4%). 68% agreed that a shopping centres commitment to environmental and social responsibility was an important factor that contributed to their overall satisfaction with the shopping centre, but only 30% agreed that this was an important factor that contributed to their overall satisfaction with Sonae Sierra as a landlord. Increasing energy efficiency and reducing GHG emissions are the most important environmental issues for our tenants. Most tenants agreed that Sonae Sierra is meeting their expectations concerning environmental responsibility; in particular with regards to waste recycling and minimising water consumption. The survey identified that Sonae Sierra could perhaps do more in terms of working jointly with tenants to improve environmental performance and reduce costs and to help tenants to promote environmentally-friendly products. With regards to social issues, providing good customer care for visitors is seen as being the most important social responsibility issue. 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 Sierras efforts to engage with and 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 with tenants to improve the CR performance of our shopping centres as a whole.
26% of our tenantS agreed that a ShoppIng centreS commItment to envIronmental and SocIal reSponSIbIlIty WaS an Important factor that theIr company conSIderS When makIng decISIonS to leaSe neW Space.
SOCIAL PERFORMANCE
SONAE SIERRA Suppliers Tenants Communities and Visitors Employees Safety and Health 72 78 83 91 96 Back to main contents Economic, Environmental and Social Report 2011
82
Tenants continued
Challenging 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 Person Tenant Award for Safety and Health, which distinguishes tenants who demonstrate an outstanding commitment to S&H. In 2011, over 80 tenants competed for the Award, and 15 winners were selected. They were:
PORTUGAL
RR Center CascaiShopping Elena Mir NorteShopping Continente AlgarveShopping
GREECE
Media Markt EXE (both in Pantheon Plaza)
ROMANIA SPAIN
Pepe Jeans GranCasa Joyera Montaesa Luz del Tajo McDonalds Pizza Star (both in River Plaza Mall)
BRAZIL ITALY
Primigi Gli Orsi Progetto Vista Airone Magazine Luiza Roasted Potato (both in Shopping Penha)
GERMANY
C&A Reformhaus Escher (both in Loop5)
We also worked with three tenants in each country to identify best practices in energy saving that can be shared with all tenants in 2012 as part of our strategy to reduce tenants costs. Further information about this project can be found on page 80. We held a total of 502 meetings with tenants on CR issues across all our owned shopping centre and engaged with tenants through SHE training.
CR and SHE meetings organised by Dos Mares shopping centre are always interesting, and I participate in all of them. In our view, Sonae Sierras CR initiatives are aligned with McDonalds policy. I believe it is vital to develop a workplace policy that respects people and the environment around us.
Francisco Jos Paredes, McDonalds Restaurant Manager, Dos Mares, Spain
We believe that tenants are increasingly seeing the value of CR initiatives, particularly as we have been able to achieve significant improvements in energy efficiency and waste management which benefit our tenants indirectly through reductions in service charge costs. In 2012, we will aim to continue to work with tenants to identify opportunities to reduce energy consumption.
SociAl PErforMAncE
SONAE SIERRA Suppliers Tenants Communities and Visitors Employees Safety and Health 72 78 83 91 96 Back to main contents Economic, Environmental and Social Report 2011
83
We develop projects in compelling locations, creating shopping centres with a long-term market perspective which offer leisure and entertainment and a broad, innovative tenant mix. We create convenient and efficient layouts to offer visitors an experience that fits with the local setting by generating strong, meaningful links with community values. Many of our shopping centre projects involve considerable improvements to the urban infrastructures that surround the site. These improvements are always part of the base project and in some cases, are also part of protocols with local authorities. Through our Community Advisory Panels (CAPs) programme, we integrate community consultation and engagement into the development and operation of each of our shopping centres and seek to build on-going relationships with local communities that will facilitate environmental, social and economic improvements in the areas in which we operate. We aim to achieve full implementation of the CAPs across our whole development and operational portfolio by 2014.
We Seek to generate local economIc benefItS by creatIng local employment, InvItIng local buSIneSSeS to rent Space In our ShoppIng centreS and InveStIng In InItIatIveS that Improve the Well-beIng of local people.
We recognise that by minimising adverse environmental impacts generated by our activities we can increase local communities support for our shopping centre projects. To this end, we promote sustainable transport and uphold eco-efficient management practices within the scope of our Safety, Health and Environmental Management System (SHEMS) that reduce waste production, water and energy consumption. In Portugal and Spain we also implement procedures to improve accessibility, with reference to the UNE 170001-2:2001 standard. We acknowledge that the creation of new shopping centres can also have an adverse impact on local businesses and to mitigate this impact, we offer local retailers high quality accommodation in our centres. In 2011, 33% of the shops within our shopping centres were occupied by local retailers (i.e. businesses based in the local catchment area of each centre). We also offer an alternative retail format, Shop Spots, which is ideal for new entrepreneurs and small businesses to market their products in a prime location in our stores at a competitive cost. During the operations phase, besides ensuring that the tenant mix, facilities and events offered by the shopping centre are suited to visitors needs and interests, we undertake to play a proactive role in raising visitors awareness of CR concerns, promoting a large number of events and campaigns with environmental and social themes. We also support charitable initiatives to promote community members 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.
tArgEt for 2012
Invest a proportion of the total marketing budget of every operational shopping centre and project under development in community-related initiatives (at least 3% for sites in Europe and 1% for sites in Brazil).
SociAl PErforMAncE
SONAE SIERRA Suppliers Tenants Communities and Visitors Employees Safety and Health 72 78 83 91 96 Back to main contents Economic, Environmental and Social Report 2011
84
Data Qualifying note: This indicator includes Sonae Sierras corporate businesses; all shopping centres owned by Sonae Sierra and in operation for the full reporting year; all projects under development during the reporting year, and all Sonae Sierra direct employees and shopping centres visitors. The currency rate used to convert Reais into Euros was 0.43061 and RON into Euros was 0.23618.
Further reference:
Data on our marketing investments in CR and other community contributions by country is available in our Country CR Summary Report at: http://www.sonaesierra.com/engb/corporateresponsibility/reportsandfeedback/reports/2011reports.aspx
Across our operational shopping centres, we achieved our target to invest a minimum percentage of our shopping centres marketing budget in community-related initiatives (3% in Europe and 1% in Brazil); in fact, our shopping centres invested an average of 4% of their marketing budget in community initiatives (aggregated across the operational portfolio). However, whilst our two development projects in Europe invested an average 11% of their marketing budget in community initiatives, none of our three projects under development in Brazil achieved the target. In total, we supported 766 charitable organisations35 with a wide range of causes and implemented 684 actions, events and campaigns with a social or environmental theme, representing 42% of the total actions, events and campaigns held in our shopping centres. Across all shopping centres in Europe, we launched a campaign using digital media and indoor advertising to inform visitors about Sonae Sierras commitment to CR and our achievements to date. The campaign used consumer-friendly language to present key messages around performance 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 of children with cancer. Called Msica por uma Ca(u)sa (Music for a Cause, for a Home), the campaign involved the use of music to raise funds for the construction of an Acreditar home in Porto to host around 220 families of children with cancer from the northern region of the country, during the periods of out-patient treatment at the Portuguese Institute of Oncology and the S. Joo 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.
34
35
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 centre visitors. 4,800 other items were donated by Sonae Sierra employees, and 27,639 were donated by shopping centre visitors. 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 the same charitable organisation, this has been counted twice (or more times), in order to reflect each individual shopping centres commitment.
SociAl PErforMAncE
SONAE SIERRA Suppliers Tenants Communities and Visitors Employees Safety and Health 72 78 83 91 96 Back to main contents Economic, Environmental and Social Report 2011
85
I am very satisfied with the course. I am a bus driver and work at dawn, so I couldnt enrol in classes, but now this opportunity 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 my time 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 great opportunity.
Antonio de oliveira Sales niccio, Metrpole Educa Student
In the future, we will investigate the possibility of making partnerships with companies to allow students who have completed their course greater potential access to the labour market.
SociAl PErforMAncE
SONAE SIERRA Suppliers Tenants Communities and Visitors Employees Safety and Health 72 78 83 91 96 Back to main contents Economic, Environmental and Social Report 2011
86
Data Qualifying note: These indicators include all Sonae Sierra direct employees as on 31 December 2011. The number of hours spent by employees in charity organisations is the sum of all hours spent by employees who volunteered. The proportion of volunteering day entitlements spent by employees in charity activities is determined by the following formula: % = total number of hours spent by employees in charity activities/(total number of volunteer hours available (8)*number of Sonae Sierra direct employees)).
Further reference:
Historical data from earlier years is available on our corporate website at: http://www.sonaesierra.com/en-gb/corporateresponsibility/ourprogress.aspx
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 of these hours were contributed through the Sonae Sierra Community Day. We invested 36,176 in Community Day activities, benefitting 61 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 and a social lunch, held by AlgarveShopping and AlbufeiraShopping in Portugal. The refurbishment of a childrens centre and participation in activities with children at the Santos-o-Velho Parish Association, supported by employees in the Lisbon office. Serving food to homeless people at a nearby day-centre near the Luz del Tajo shopping 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 Mnsters animal shelter, where employees from Mnster Arkaden in Germany delivered goods and foods and helping staff with 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 Alzheimers Disease which allowed employees in Brazil to visit nursing homes and disseminate information about the disease and to conduct workshops for disease prevention.
there is no doubt that we owe our ability to put quality into our institutions operations to all this support. thank you very much!! I also want to congratulate the individuals you have in your service. each role was executed with an incredible spirit of mutual assistance. each person took care to make the best effort they could, demonstrating great positivity and satisfaction at all times.
Maria do carmo ribeiro, Director of Santos-o-Velho Parish Association
As well as the specific events which took place as part of the Sonae Sierra Community Day, Sonae Sierra staff contributed to local communities through some unique and on-going initiatives. In total, we welcomed 283 school visits to our shopping centres, which involved 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 several schools to visit the technical areas of Tivoli Shopping to learn about eco-efficiency and safety practices in the centre and we invited them to participate in a competition to create a model eco-school by implementing similar practices to those they had seen in the shopping centre. We supported the winning school, EE Prof. Risoleta Lopes Aranha, to implement their eco-school project within the school grounds.
SociAl PErforMAncE
SONAE SIERRA Suppliers Tenants Communities and Visitors Employees Safety and Health 72 78 83 91 96 Back to main contents Economic, Environmental and Social Report 2011
87
through our cap project, We aIm to Integrate communIty conSultatIon and engagement Into the development and operatIon proceSS of our ShoppIng centreS. over the paSt fIve yearS, We have eStablIShed capS at 29 Sonae SIerra ShoppIng centreS and development projectS.
At Shopping Plaza Sul in Brazil we received very positive feedback from the CAP members about the refurbishment activities which had taken place in the shopping centre; CAP members agreed that investments in the shopping centre also benefitted the local community.
cr initiatives such as the community advisory panel were fundamental for us in getting buy-in when we first entered this city. the cap and community day activities helped us to develop relationships with the local community and they enable us to find partners for collaboration in new projects on an on-going basis.
Manauara Shopping Management team
Besides our CAPs, we receive feedback from local communities through our Geo Tracking surveys, media coverage and compliments and complaints that are presented to our shopping centres. In 2011, we received 873 cases of press coverage on social and environmental issues. Of these, only two (less than 1%) were unfavourable. Favourable press coverage focused on our Water Saving Campaign held in shopping centres in Portugal, Spain and Italy; activities undertaken as part of our Community Day; the Planet Sierra Tenant Awards; our Green Sales campaign in Brazil and the environmental and safety and health certification achieved at various shopping centres.
SociAl PErforMAncE
SONAE SIERRA Suppliers Tenants Communities and Visitors Employees Safety and Health 72 78 83 91 96 Back to main contents Economic, Environmental and Social Report 2011
88
I was born in this neighbourhood 45 years ago and Shopping metrpole has always been part of my life, from the time before the food court existed and shopping was the main entertainment for young people. now I have brought my children here to see father christmas and it was lovely to see how happy and excited they were. Shopping metrpole will always be a part of our lives.
Edilson cirello, Visitor, Shopping Metrpole, Brazil
In 2011, we implemented measures to improve visitors satisfaction across all shopping centres; in Brazil, this included the expansion of Shopping Campo Limpo; the inauguration of three new food court stores, the revitalisation of the internal landscaping and the construction of a more secure motorcycle parking lot at Franca Shopping; and the creation of new rest lounges and the refurbishment and expansion of the food court area at Tivoli Shopping (which helped us to achieve a 12% increase in sales in food court shops in 2011).
Visitor satisfaction index old methodology
(Italy, germany, greece, romania and brazil)
72.8 72.2 70.8 70.9 2011 2010 2009 2008 3.2 3.2 3.3 3.1
Data Qualifying note: The new visitor satisfaction methodology includes all 30 shopping centres owned and in operation for the full reporting year in Portugal and Spain. The old visitor satisfaction methodology includes 16 out of 19 shopping centres owned and in operation for the full reporting year in Italy, Germany, Greece, Romania and Brazil. Shopping Metrpole, Shopping Plaza Sul and Manauara Shopping in Brazil were excluded because data was not available from these centres. The visitor satisfaction results are based on a sample of 500 interviews which are proportionally stratified according to shopping centre traffic. The survey takes the form of a personal interview based on a structured questionnaire. The number/type of visitors who receive the interview are selected through systematic counting during one week. The old methodology is based on a survey in which 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 5 very satisfied and between 15 and 20 items are valued. Taking these values we create an indicator in a scale 1 to 100.
SociAl PErforMAncE
SONAE SIERRA Suppliers Tenants Communities and Visitors Employees Safety and Health 72 78 83 91 96 Back to main contents Economic, Environmental and Social Report 2011
89
36 37
Source: Deloitte; Green Shopper Study (2009). Source: Deloitte, Natal 2011: Indispensvel ou suprfluo? (Study of Christmas Shopper Habits in 2011).
SociAl PErforMAncE
SONAE SIERRA Suppliers Tenants Communities and Visitors Employees Safety and Health 72 78 83 91 96 Back to main contents Economic, Environmental and Social Report 2011
90
I thought the eco bag was a really good idea. now that plastic bags arent 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 am taking home something that will help me protect the environment.
Maristela Domene, Visitor, Parque D. Pedro Shopping
At Mnster Arkaden in Germany, we collaborated with members of the shopping centres CAP to organise a Fair Trade Week38 for visitors to promote the fair trade products available in the shopping centre and support the City of Mnster 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 varied programme of activities including: An oriental dance and story-telling for children to promote fair trade carpets sold 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.
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 requiring companies to pay sustainable prices (which must never fall lower than the market price), Fair Trade addresses the injustices of conventional trade, which traditionally discriminates against the poorest, weakest producers. It enables them to improve their position and have more control over their lives.
SociAl PErforMAncE
SONAE SIERRA Suppliers Tenants Communities and Visitors Employees Safety and Health 72 78 83 91 96 Back to main contents Economic, Environmental and Social Report 2011
91
Employees
our 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 survey helped 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 ergonomic assessments across our corporate and shopping centre offices and introducing new policies to promote better work-life balance, such as our Part Time Working Policy, Working From Home Policy and Flexible Work Schedule Policy. We also promote initiatives to increase staff well-being, such as Healthy Month in Europe and workplace gymnasiums in Brazil (which involve a physical exercise routine in the workplace). Since 2009, we have performed an Employee Survey bi-annually, our most recent survey having been completed in June 2011. We have set a long-term objective to offer our employees more flexible work arrangements with the aim of becoming a recognised leader in this area by 2020. We are also aiming to create the best possible work conditions (including ergonomic conditions) for all our staff by 2015. In 2008, we introduced a formal non-Discrimination and Diversity policy, which states our commitment to a meritocracy culture and our objective to become a best practice reference in this aspect of CR. This is reinforced by our Code of Conduct which outlines our commitment to creating a workplace where each individual is treated fairly and where we recruit, select, train and remunerate based on merit, experience and other professional criteria. To further enforce these principles and policies, the Sierra Ombudsman is a formal procedure which employees (and other stakeholders) can use to report work related issues including breaches in our Code of Conduct. We nurture our employees talents through our professional development programmes which include training, knowledge sharing, technical support and encouragement. 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 testimony to the talent and skills of our employees. Talent developed and retained by Sonae Sierra enhances our know-how, which boosts Sonae Sierras reputation. In turn, our strong reputation contributes substantially to attracting new talent, thus perpetuating the cycle.
We belIeve that provIdIng our Staff WIth addItIonal knoWledge, confIdence and SkIllS haS benefItS for both the IndIvIdual and the WIder fIrm.
It is our objective to encourage our employees to develop their skills and expertise and to foster a culture of innovation. We operate an innovation 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 business improvement. These are analysed by a specific team on a regular basis, and the most promising are discussed by our Innovation Steering Committee. Challenges, a programme to identify solutions to key challenges which are identified by Sonae Sierras senior management. Each challenge 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 our employees 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 more efficiently. We use Key Performance Indicators (KPIs) to measure how individuals are contributing to Sonae Sierras business goals. These help employees 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.
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.
SociAl PErforMAncE
SONAE SIERRA Suppliers Tenants Communities and Visitors Employees Safety and Health 72 78 83 91 96 Back to main contents Economic, Environmental and Social Report 2011
92
Employees continued
our workforce in 2011
As of 31 December 2011, we directly employed 1,090 people and supervised a further 18 people employed by other companies and 17 independent contractors. 1,053 (97%) direct employees were permanent employees and 1,080 (99%) worked full-time. Our employees are a vital asset to our Company, and we seek to maintain high levels of staff retention by ensuring that our staff are given 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.
aS of 31 december 2011, We dIrectly employed 1,090 people and SupervISed a further 18 people employed by other companIeS and 17 Independent contractorS.
Proportion of staff who agree or strongly agree that there is a positive working environment at Sonae Sierra (%)
2011 2009 2008 2007 76.8 81.9 79.7 82.2
Data Qualifying note: These indicators correspond to two of the questions asked in Sonae Sierras Employee Survey which are representative of overall staff satisfaction and satisfaction with the work environment.
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 from Home and Flexible Work Schedule). We found that a small number of employees had adopted flexible work arrangements, constituting just over 1% of our direct employees. We therefore decided to reinforce communication on the flexible work arrangements available and 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 findings to 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 of Sonae 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 as relaxation 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 reported positive 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 career steps and theoretical careers paths within the Sonae Sierra business. This project is on-going and will be communicated to our employees 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 revision process and the other to track individual employees Key Performance Indicators (KPIs).
SociAl PErforMAncE
SONAE SIERRA Suppliers Tenants Communities and Visitors Employees Safety and Health 72 78 83 91 96 Back to main contents Economic, Environmental and Social Report 2011
93
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 that 80% of our employees agree or strongly agree that discrimination on the grounds of race, religion, gender or sexual orientation does not exist 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 and percentage of employees by gender and age group, per employee category <35 Female Male
Global Senior Executive, Senior Executive and Executive Senior Manager Manager Team Leader Project Team Specialist Team Member 1 2 19 39 209 8 20 35 101
270
164
202
233
68 6.2%
96 8.8%
8 0.7%
41 3.8%
3 0.3%
5 0.5%
1,090 100%
24.8% 15.0%
18.5% 21.4%
Data Qualifying note: These indicators include all of Sonae Sierras direct employees on 31 December 2011.
Male
Total
Global Senior Executive, Senior Executive and Executive Senior Manager Manager Team Leader Project Team Specialist Team Member total
3 1 4
1 2 3
3 2 2 7
Global Senior Executive, Senior Executive, Executive Senior Manager Manager Team Leader Project Team Specialist Team Member
82 96 85 87 89 126
Global Senior Executive, Senior Executive, Executive Senior Manager Manager Team Leader Project Team Specialist Team Member
87 98 86 87 91 130
Data Qualifying note: These indicators include all of Sonae Sierras direct employees on 31 December 2011. Both ratios are calculated by dividing the total remuneration received by men and by women in each employee category by the total number of employees in that category. The average female salary is then divided by the average male salary in order to generate a ratio. The remuneration ratio includes the annual basic salary plus the variable remuneration received by employees. In the case of Sonae Sierra, variable remuneration represents the bonuses fraction, which is considered to be most significant (over 90% of the total benefits received by the employees). The basic salary ratio considers only the annual basic salary received by direct employees. Sonae Sierra demonstrates its commitment to non-discrimination in recruitment and treatment of staff in the workplace by monitoring the workforce diversity according to a range of different characteristics. Within our code of conduct, we pledge to treat each individual fairly and recruit, select and train and remunerate based on merit, experience and other professional criteria. It is in our interest to ensure that the human resources, talents and skills available throughout the community are considered when employment opportunities arise, thereby selecting the most suitable person for the job, based on their qualifications and experience.
SociAl PErforMAncE
SONAE SIERRA Suppliers Tenants Communities and Visitors Employees Safety and Health 72 78 83 91 96 Back to main contents Economic, Environmental and Social Report 2011
94
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 the economic constraints on our Company in 2011. To compensate for this as far as possible, we increased the delivery of internal training to staff, and succeeded in providing employees with an average 48.9 hours of training during the course of the year, an increase of 28% in comparison with 2010. This meant that we achieved our target to maintain the total number 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 deliver recruitment interviews; foreign languages; first aid; meeting management; stress management and advanced negotiation skills training.
In 2011, We InveSted 528 per capIta In Staff traInIng and development. thIS value IS loWer In comparISon WIth prevIouS yearS, and reflectS the economIc conStraIntS on our company In 2011. to compenSate for thIS aS far aS poSSIble, We IncreaSed the delIvery of Internal traInIng to Staff, and Succeeded In provIdIng employeeS WIth an average 48.9 hourS of traInIng durIng the courSe of the year, an IncreaSe of 28% In comparISon WIth 2010.
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 opportunities offered by Sonae Sierra has improved over the last five years, this is still an aspect which could be further enhanced. In 2011, we provided a 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.
Investment in staff training and development
( per capita)
2011 2010 2009 2008 528 776 1,195 900
Type of training
2011 2010 2009 2008 48.9 38.1 40.2 38.3
Data Qualifying note: These indicators include all of Sonae Sierras direct employees on 31 December 2011. A breakdown of the average hours of training per year per employee by employee category is provided in the Global Reporting Initiative chapter of this report, under LA10, on page 142.
Further reference:
Historical data from earlier years is available on our corporate website at: http://www.sonaesierra.com/en-gb/corporateresponsibility/ourprogress.aspx 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
39
This included all Sonae Sierra direct employees on 31 December 2011: 551 female employees (100%) and 539 male employees (100%).
SociAl PErforMAncE
SONAE SIERRA Suppliers Tenants Communities and Visitors Employees Safety and Health 72 78 83 91 96 Back to main contents Economic, Environmental and Social Report 2011
95
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 of projects that are in the pipeline is estimated at 91.8 million, totalling 98.7 million in all. In 2011 we continued to promote innovation among 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 of 13 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 Back Office costs, bureaucracy and the balance between rents and service charges in shopping centres. As a result, we implemented six new measures 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/ or implemented during 2011. A further 21 ideas are under analysis by our team of evaluators. The ideas implemented or scheduled for implementation 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 this age 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 kitchens caused 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 is more 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 for all Sonae Sierra teams to address questions such as What do we do that we should not do?; What dont we do, but should do? and What should 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 Sierras efforts to solve some of the challenges we have identified. This programme is currently being piloted with a strategic initiative developed called Consumer and Retail Knowledge and involves engagement with tenants and other relevant external entities. It is expected to be concluded during 2012.
SociAl PErforMAncE
SONAE SIERRA Suppliers Tenants Communities and Visitors Employees Safety and Health 72 78 83 91 96 Back to main contents Economic, Environmental and Social Report 2011
96
Zero accIdentS IS our ultImate goal and We aIm to achIeve thIS through the creatIon of a Safety-conScIouS culture acroSS our entIre organISatIon.
We strive to continually minimise the occurrence of workplace incidents and occupational diseases, as well as to promote good health and well-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 are required by law. All new shopping centre development projects must implement a site-specific SHEMS and achieve certification in accordance with the OHSAS 18001 standard for the entire construction phase. Additionally, a Safety Plan is drawn up for each of our construction sites and compliance with this plan is compulsory for all contractors. Contractors cannot begin any activity without the validation of this document by the sites S&H Coordinator and Sonae Sierras prior approval. Each of our development projects has a full time S&H Coordinator to validate contractors risk assessments and, if necessary, establish additional control measures. The S&H Coordinators 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 improve construction site safety can be found on pages 99 and 100. In respect to expansions and refurbishments a simplified SHEMS version is also implemented (see page 25 for further details). 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. The SHEDS aid us in minimising S&H risks from the outset of each shopping centres development and into the operations phase. The implementation of the standards is mandatory for all projects with an investment proposal approved after December 2009 and is checked through a final audit carried out by a third party. Compliance with local S&H regulations is also confirmed by competent authorities prior to opening as part 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 aim of guaranteeing the safety of all building users. We monitor and evaluate S&H performance on a regular basis using tools such as SHE Preventive Observation (SPO), emergency drills and SHE inspections (covering safety-related equipment and installations in tenant units and technical areas). We hold regular SHE meetings at all shopping centres during which we encourage suggestions, participation and engagement from Sonae Sierra staff and service suppliers. Open SHE committees with tenants covering CR themes are also held at all our shopping centres, during which S&H issues are discussed and tenants are asked to actively participate in shopping centres S&H management. Any issues identified by these procedures are followed-up and corrective actions are taken. We also investigate the cause of 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 the S&H data reported by all sites and internal audits are developed yearly to follow-up on each sites implementation of our corporate SHEMS requirements.
SociAl PErforMAncE
SONAE SIERRA Suppliers Tenants Communities and Visitors Employees Safety and Health 72 78 83 91 96 Back to main contents Economic, Environmental and Social Report 2011
97
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 Sonae Sierra sites. Achieve OHSAS 18001 certification in an additional three shopping centres in operation and in all construction works of new centres opening in 2012.
Injury rate Occupational disease rate Lost day rate Absentee rate Fatalities
40 41 42
This includes accidents which may occur during travel to and from the workplace. The workforce covers Sonae Sierras direct employees and supervised workers. Same comment as above. 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.
SOCIAL PERFORMANCE
SONAE SIERRA Suppliers Tenants Communities and Visitors Employees Safety and Health 72 78 83 91 96 Back to main contents Economic, Environmental and Social Report 2011
98
2011
2010
2009
2008
Data Qualifying Note: The S&H training and awareness indicator includes all shopping centres owned by Sonae Sierra and in operation for the full reporting year; all shopping centres managed but not owned by Sonae Sierra during the reporting year; all projects under development and Sonae Sierras eight main corporate offices. It includes hours spent in SHE meetings. The SHE Global Achievement includes all eight main corporate offices and comprises the average of the following four elements: (1) The percentage of SHE meetings provided during reporting period, in relation to the target set; (2) The percentage of hours of SPOs undertaken during the reporting period in relation to the target set; (3) The percentage of emergency practice drills undertaken during the reporting period in relation to the target set; (4) The percentage of incidents investigated during the reporting period in relation to the number of incidents that must be investigated.
Further reference:
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
The World Day for Safety and Health at Work (28 April) is the occasion for all workers to remember the victims of occupational accidents or diseases, and for Sonae Sierra, an opportunity to reinforce the importance of preserving the safety and health of all. We celebrated this day 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 specifically urged staff to Expect the Unexpected on their way to and from their workplace, as we have identified that half of the accidents involving members 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 on health, we are committed to helping employees that might be suffering from it. We organised a training programme called Personal and Professional 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.
SociAl PErforMAncE
SONAE SIERRA Suppliers Tenants Communities and Visitors Employees Safety and Health 72 78 83 91 96 Back to main contents Economic, Environmental and Social Report 2011
99
43 44
Instituto Nazionale per LAssicurazione contro gli Infortuni sul Lavoro. 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 (but less serious) incidents.
SociAl PErforMAncE
SONAE SIERRA Suppliers Tenants Communities and Visitors Employees Safety and Health 72 78 83 91 96 Back to main contents Economic, Environmental and Social Report 2011
100
Data Qualifying note: This indicator includes projects under development as on 31 December 2011 as well as projects completed during the reporting year. The LWCAFR is the number of incidents resulting in one or more lost work days (incident category level 4) per million hours worked on construction sites.
Data Qualifying note: This indicator includes projects under development as on 31 December 2011 as well as projects completed during the reporting year. The SPI is obtained through the weighted average of SPI values for the reporting year. This indicator covers all projects with an SPI programme in place. This includes the CC Continente de Portimo refurbishment and the Colombo office Tower Ocidente project in Portugal; Le Terrazze and the Valecenter refurbishment in Italy; Solingen Shopping in Germany and the Shopping Metrpole expansion; Boulevard Londrina Shopping and Uberlndia Shopping in Brazil.
This logbook is a document that every worker is required to carry when on site. Their use was suggested by our demolition phase S&H coordination team, GeoExperts. We explained to our suppliers how to use them and they have been well-accepted by all. The use of the logbooks has improved the efficiency of our S&H coordination by identifying workers who should or should not carry out specific tasks; who need training or special authorisation in certain cases; and those who might have recurrently been exposed to safety hazards or involved in incidents. Although we cannot accurately measure or anticipate how many accidents were avoided thanks to this measure, we expect that it has played a part in the good S&H results achieved so far, as no incidents have been reported. Another important benefit is that this logbook has contributed to increasing workers S&H awareness by being part of their daily routine. It also establishes clear responsibilities and allows supervisors to check workers certificates as and when needed.
SociAl PErforMAncE
SONAE SIERRA Suppliers Tenants Communities and Visitors Employees Safety and Health 72 78 83 91 96 Back to main contents Economic, Environmental and Social Report 2011
101
Data Qualifying note: This indicator includes all shopping centres owned by Sonae Sierra and in operation for the full reporting year, as well as a further six shopping centres which we managed on behalf of other owners in both 2010 and 2011. The frequency rate of accidents occurring among shopping centre visitors is calculated as the number of level 3, 4 and 5 category accidents divided by the total number of visits. In accordance with Sonae Sierras SHE procedures, we identify the following levels of incidents in shopping centres according to their severity: Level 1: Critical near miss (an S&H incident 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 disrupting case, temporary or partial incapacity or minor occupational disease; Level 5: Fatality or permanent disability or serious occupational disease.
Global Lost Workday Case Accidents Frequency Rate (LWCAFR) among suppliers in shopping centres
2011 2010 2009 2008 2.88 3.88 2.76 1.39
Data Qualifying note: This indicator includes all shopping centres owned by Sonae Sierra and in operation for the full reporting year, as well as a further six shopping centres which we managed on behalf of other owners in both 2010 and 2011. The LWCAFR is the number of incidents resulting in one or more lost work days of accidents per million hours worked by suppliers who are based in our shopping centres (i.e., cleaning, maintenance and security staff).
We continue to promote safe behaviour, prevent accidents and make sure that we know how to respond in emergency situations across all our shopping centres. When incidents do occur, we issue safety alerts to all our shopping centres and update our SHEMS procedures with the aim of preventing any similar incident from occurring again. In 2011 a further five of our shopping centres SHEMS were certified in accordance with OHSAS 18001: GuimaresShopping and LoureShopping in Portugal; Parque Principado and GranCasa in Spain and Mnster Arkaden in Germany. In 2011 we delivered training to shopping centre suppliers and tenants on the SHEMS; emergency procedures and fire fighting; hazard identification and risk assessment; first aid and ergonomics, as well as induction training for new staff. We also performed 10,580 hours of SPO45 across our shopping centres (including some of those which we manage on behalf of other owners). The number of hours of SPO 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 centre management 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 partly reflects the change in the methodology used to calculate this indicator (see the data qualifying note for further details). However, it is also consistent with an increase in the number of non-conformities detected across all SPO performed.
45
Safety, Health and Environment Preventive Observations formerly Safety Preventive Observations, SPO allow us to identify and correct behaviour which could potentially lead to incidents, 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 Management Systems, the SPO included environmental as well as S&H criteria.
SociAl PErforMAncE
SONAE SIERRA Suppliers Tenants Communities and Visitors Employees Safety and Health 72 78 83 91 96 Back to main contents Economic, Environmental and Social Report 2011
102
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 12 out of 20 shopping centres managed by Sonae Sierra on behalf of other owners where the SPO tool is applied.
Data Qualifying note: This indicator includes all shopping centres owned by Sonae Sierra and in operation for the full reporting year. In 2011, the methodology used to calculate this indicator changed. In previous years, reference SPOs (which are included in this indicator), only included SPOs performed by Country S&H Coordinators or by the Sustainability Office team on so called reference sites, a sample of sites which were intended to represent a proxy for our whole portfolio. In 2011, this was changed to avoid the need for additional travel to be made specifically to these sites. Reference SPOs are SPOs performed by any Country SHE Coordinator or by the Sustainability Office team on any Sonae Sierra site. In 2011 the calculation method for non-conformities also changed to account for the fact that environmental criteria are now included. The number of nonconformities per hour of SPO is now calculated as the total number of S&H and SHE non-conformities divided by 80% of SPO hours performed, multiplied by the total number of SPO hours.
Further reference:
Historical data from earlier years is available on our corporate website at: http://www.sonaesierra.com/en-gb/corporateresponsibility/ourprogress.aspx 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
2011
2010
2009
2008
SociAl PErforMAncE
SONAE SIERRA Suppliers Tenants Communities and Visitors Employees Safety and Health 72 78 83 91 96 Back to main contents Economic, Environmental and Social Report 2011
103
Data Qualifying note: This indicator includes all shopping centres owned by Sonae Sierra and in operation for 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 environment emergency drills carried out across all sites of operation and corporate offices, divided by the number of sites. In 2011, environmental drills, which previously were excluded from the scope of this indicator, were included together with safety and health emergency drills due to the integration of these two procedures.
We continue to raise awareness among our suppliers, tenants and visitors about S&H issues. In 2011 we put together a leaflet explaining the most common sources of accidents in our shopping centres and how to avoid them, and disseminated it among all our tenants. We held a range of events to celebrate World Day for Safety and Health at Work on 28 April, including training about road safety, occupational diseases and safety rules in our shopping centres. Many of our shopping centres also held campaigns for visitors with S&H themes at different 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 childrens 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 a different theme relating to the areas found in a shopping centre (e.g., escalators, lifts, restaurant areas) where children can have different experiences whilst learning basic safety rules so that they can learn how to be safe in each of these areas.
104
Degree in Chemical Engineering, cole Politechnique Federal de Lausanne; MBA, ISEE, University of Porto.
Mark Preston joined Grosvenor in 1989. He was appointed leader of the companys fund management operations in 1997. In 2006, after four years in San Francisco, he became CEO of Grosvenor Britain & Ireland before being appointed Group CEO in 2008. He currently sits on the Board of the Association of Foreign Investors in Real Estate and is a member of the North West Business Leaders Trust.
Academic achievements
Mark Preston Non-Executive Director
BSc Hons degree in Land Management, Reading University; member of the RICS; International Executive Programme at INSEAD.
ngelo Pauprio has been a Non-Executive Director of Sonae Sierra since 2000. He is also Chairman of Sonaecoms Executive Committee, Executive Vice-Chairman of Sonae SGPS and sits on the Board of Sonae Distribuio, all of which are companies in the Sonae Group.
Academic achievements
Nicholas Scarles joined Grosvenor in 2004 as Finance Director, Grosvenor Fund Management and Director of Corporate Finance, Grosvenor Group, before being appointed Group Finance Director in 2006. Prior to Grosvenor, Nick was CFO of Centrica plcs North American operations, following a number of years at Price Waterhouse and Coopers & Lybrand in London and New York.
Academic achievements
Nicholas Scarles Non-Executive Director
Degree in law from Trinity College, Cambridge; Masters of Law from the University of Virginia; Fellow of the Institute of Chartered Accountants in England and Wales; Member of the Institute of Taxation (UK); Certified Public Accountant (Colorado, USA).
Neil Jones has been a Non-Executive director of Sonae Sierra since 1999. He is Managing Director of Almacantar, a property investment and development company. He was CEO of Grosvenor Continental Europe from 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.
Academic achievements
Neil Jones Non-Executive Director
Degree in Estate Management, University of West of England; General Management Programme, Harvard Business School.
105
Academic achievements
Degree in Civil Engineering, University of Porto; MBA, ISEE, University of Porto; AMD, Harvard Business School. Edmundo Figueiredo joined the Sonae Group in 1989, as Financial Controller of the companys real estate activities. As Sonae Sierras Chief Financial Officer and a member of the Sonae Group Finance Committee, Edmundos responsibilities include Internal Audit; Legal, Fiscal and Mergers & Acquisitions; Finance, Planning & Control, Information Systems and Back-Office.
Academic achievements
Pedro Caupers joined Sonae Sierra in 1997. In 1999 he was appointed Board Director, with responsibilities for all the companys European property management and leasing activities. Since 2009 he has been in charge of the investment division and its portfolio. He is also manager of the Sonae Sierra Funds.
Academic achievements
Degree in Electrical Engineering, Instituto Superior Tcnico; PhD, Paris University; MBA, INSEAD.
Pedro Caupers Director, Investment and Asset Management
Ana Guedes Oliveira has been with Sonae Sierra since 1987. Having managed the development of two major centres in Portugal, she moved to portfolio management in 1999. In 2008 she took over responsibilities for all Sonae Sierras European investment activities. Since 2009 she has overseen all aspects of the companys development programme in all markets except Brazil. She is the Co-Chair of the CR Suppliers Working Group.
Ana Guedes Oliveira Director, Developments
Academic achievements
Degree in Civil Engineering, Porto University; MBA, ISEE, University of Porto; AMP, INSEAD.
Joo Correia de Sampaio joined Sonae Sierra in 1992, since when among other duties in the property management area he was Managing Director of Sierra Management Portugal and Sierra Management Spain. Since 2009 he has been responsible for all Sonae Sierras property management and leasing activities, with the exception of Brazil. He is the Chair of the CR Tenants Working Group and Co-chair of the CR Suppliers Working Group.
Joo Correia de Sampaio Director, Property Management and Leasing
Academic achievements
Degree in Military Sciences, Academia Militar, Lisbon; MBA, Nova University of Lisbon. Having joined the Sonae Group in 1982, Jos Baeta Toms was appointed General Manager of Sonae Distribuio in 1983. He joined the Executive Committee in 1985 and, in 1995, created Sonae Distribuio in Brazil. From 2003 to 2009 he managed Tafisa Brazil and supervised the development of SonaeCom, two Sonae companies operating in Brazil. In 2010 he was appointed CEO of Sonae Sierra Brasil.
Academic achievements
Jos Baeta Toms Director, Chief Executive Officer, Sonae Sierra Brasil
Degrees in Finance, ISE, Lisbon, and Retail Marketing, Management Centre Europe, Oxford.
106
Degree in Civil Engineering, University of Porto; MBA, Kent State University, Ohio.
Joo Pessoa Jorge Development Services, New Markets
Joaquim Pereira Mendes joined Sonae Sierra in 1989 and is responsible for the companys Legal, Tax and Mergers & Acquisitions activities.
Academic achievements
Jos Quintela has been with Sonae Sierra since 1986, and is, since 1992 leading the team responsible for the concepts and design of all the companys shopping centres across all the countries Sonae Sierra is active in.
Academic achievements
Jos Quintela Conceptual Development and Architecture
Degree in Architecture, School of Fine Arts, Lisbon; MBA, Nova University of Lisbon; AMD, Harvard Business School.
Jos Falco Mena joined Sonae Sierra in 1989. He has overseen the companys expansion in Iberia since 1998 and been responsible for shopping centre development in the same region since 2004. In 2010 he become responsible for the expansion of the development services area in Maghreb region and in 2011 he was designated Director of the new EMEA Services department.
Academic achievements
Jos Falco Mena EMEA Sierra Services
Degree in Civil Engineering, Instituto Superior Tcnico, Lisbon; Management Graduated, ISCTE, Lisbon; Advanced Marketing Studies, Catlica Lisbon School of Business and Economics.
Joaquim Ribeiro joined the Sonae Groups holding company in 1985, before transferring to Sonae Indstria. He then moved to London for six years, where he worked for Sonae International. In 1995 he joined Sonae Sierras financial department, where since 2006 he has been responsible for Finance, Planning and Control.
Academic achievements
Degree in Economics, Faculdade de Economia do Porto; MBA, Nova University of Lisbon; MSc in Property Investment, City University, London.
107
Degree in Civil Engineering, Technical University, Braunschweig; PhD, Technical University, Munich.
Ingo Nissen Development, Romania
Thomas Binder has more than 20 years experience of project and lease management in the German shopping centre, business parks and commercial property sector. He joined Sonae Sierra in 2006, and has responsibilities for the companys shopping centre developments in Germany.
Academic achievements
Thomas Binder Development, 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 previously led the Sierra Management support team responsible for 17 shopping centres in Spain. Since 2007, his responsibilities have been focused on the companys non-Iberian operations, particularly those in Italy, Greece and Romania. In 2012 he also become responsible for the expansion of the property management services in new markets, including Algeria.
Academic achievements
Vitor Nogueira Property Management, in Italy, Greece, Romania and 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. Manuela was the first Portuguese woman to join McKinsey at management level. At Sonae Sierra, she is responsible for marketing all the companys European operating shopping centres and development projects. She is the Chair of the CR Communities and Visitors Working Group.
Manuela Calhau Marketing and Innovation
Academic achievements
Degree in Economics, Catlica 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 became the centres Director. She subsequently transferred to the companys central Property Management division and is now the Managing Director of Sierra Management Portugal, with special responsibilities for property management and letting.
Academic achievements
Cristina Santos Property Management, Portugal
Alexandre Fernandes joined Sonae Sierra in 1997 as Project Manager of NorteShopping, later becoming the centres General Manager. In 2000 he was appointed Asset Manager for Portugal. In 2002 he added Greece and Romania to his portfolio. Since 2008, Alexandre has overseen all Sonae Sierras real estate investments in Portugal and Spain.
Academic achievements
Alexandre Fernandes Asset Management, Portugal and Spain
108
Degree in Law, UNED, Madrid; Studied General Management, London Business School.
Alberto Bravo Property Management, Spain
Carlos Alberto Correa joined Sonae Sierra Brasil as Deputy CFO in 2007, having spent a number of years with some of Brazils larger companies, where he acquired extensive experience in the financial field. In February 2009 he was appointed CFO of Sonae Sierra Brasil, with overall responsibility for the companys financial area.
Academic achievements
Degree in Accounting & MBA, Universidade Presbiteriana Mackenzie, So Paulo; Studied Finance at Fundao Getlio Vargas.
Jerry Boschi joined Sonae Sierra in 2002, as its the third employee in the Italian office. In 2012 he was appointed Director, Development, Italy, with particular responsibilities for the companys shopping centre development activities in that country.
Academic achievements
Degree in Civil Engineering, UMIST, University of Manchester; MBA, Cranfield School of Management
Jerry Boschi Development, Italy
Pedro Soveral Rodrigues joined Sonae Sierra in 1998 as Deputy Manager of Centro Colombo. Since then he assumed different responsibilities at the company including the Expansion role in Iberia, the leadership of the Safety & Health area, as well as the responsibility of Property Management in Italy. In 2010 he was appointed as Head of Human Resources.
Academic achievements
Degree in Mechanical Engineering, IST, Lisbon; MBA, Nova University of Lisbon; PED, IMD, Lausanne.
Pedro Soveral Rodrigues Human Resources
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's shopping centres, with a particular emphasis on the evolution of the day-to-day management aspects of each asset.
Academic achievements
Waldir Chao Property Management and Leasing, Sonae Sierra Brasil
Degree in Industrial and Management Engineering, U.S.P., So Paulo; MBA, California State University, San Diego.
109
This report
Alexa, Germany
110
profile Disclosures
Strategy and Analysis
1.1 Statement from the most senior decision-maker of the organisation about the relevance of sustainability to the organization and its strategy Description of key impacts, risks and opportunities. CEOs Statement, pages 2 and 3.
1.2
Sonae Sierra has identified nine environmental and social impact areas that are most important for 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 outcomes of this review enabled us to identify a total of 23 CR material issues; which are shown in the chart below. The impact areas form the cornerstone of our CR strategy and management system and the environmental 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 Our Business Strategy, Risk Management, pages 20 and 21.
S&H of workforce
Visitor satisfaction
Tenant satisfaction
llt
l n
Construction site safety
Talent management
l
Community consultation and engagement
l
Employee satisfaction and retention
l
GHG emissions and energy efficiency
l
Shopping centre safety
3 Likelihood
nnl
Tenant CR engagement Equal opportunities
ls
low RISK
2
l
Suppliers CR performance
Sustainable Ethical conduct buildings Efficient water use Sustainable energy supply
l
Climate change adaptation
s
Sustainable water supply
l
Materials
1 KeY
l s t n
2 Impact
46
The Materiality Report Aligning Strategy, Performance & Reporting; Maya Forstater, Simon Zadek et al., AccountAbility, BT Group plc & LRQA, 2006.
111
Operational structure of the Our Company, Organisational Structure, page 11. organisation, including main divisions, operating companies, subsidiaries and joint ventures. Location of the organisations headquarters. Our headquarters are located in Maia, Portugal.
2.4 2.5
Number of countries where the Our Company, page 9, and Our Company, Where We Operate, page 12. organisation operates and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report. Nature of ownership and legal form. Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries). Scale of the reporting organisation. Significant changes during the reporting period regarding size, structure, or ownership. Our Company, Corporate Governance, page 13. Our Company, page 9, Our Company, Where We Operate, page 12.
2.6 2.7
2.8 2.9
Our Company, page 9, Our Company, Where We Operate, page 12. The Year At A Glance, Key Activities, page 4.
2.10
Awards received in the reporting period. A summary of the most important awards and acknowledgements we received at a corporate level in 2011 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 shortlisted for others at a corporate level: Centro Colombo was elected Best Shopping Centre in Portugal for the second time in a row at the Hipersuper Awards and was distinguished by the Revista Imobiliria Special Magazine Award in the National Real Estate Awards 2011 in Portugal for its refurbishment project. LeiriaShopping in Portugal was honoured with the Revista Imobiliria Eurohypo Real Estate Oscar Award 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 Related Marketing for the campaign Cycle and switch on our Christmas tree which was intended to increase environmental awareness among the local community. We were shortlisted for the Edie Awards for Environmental Excellence 2011 in the category Green Corporate Initiative. We were shortlisted for the DuPont Safety Award for our innovative approach to creating safer shopping centres for children. We were shortlisted for the Digital Communication Award 2010 for outstanding accomplishment in 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 GUIO project to help blind people and those with visual impairment to use our shopping centres. La Farga in Spain was awarded the Humana Foundations Textile Recycling Prize in the Private Enterprise category for having collected the largest amount of clothing for charitable causes.
112
Reporting cycle (annual, biennial, etc.). We report on a calendar year cycle. Contact point for questions regarding the report or its contents. Process for defining report content, including: Defining materiality; Prioritising topics within the report; and Identifying stakeholders the organisation expects to use the report. Nuno Rafael Alves Corporate Responsibility Reporting Coordinator Email: cr@sonaesierra.com The GRI framework includes principles to help organisations develop a balanced and accurate account of their sustainability performance. Here we describe how Sonae Sierra has applied each of these principles to this report.
3.5
Materiality
Our latest full Materiality Review was performed in December 2010 (see page 110 for further details). The contents of this report are based around the 23 material issues which were identified through 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 revealed that indoor air quality is an important issue for our tenants in particular. Whilst this issue is addressed through our Safety, Health and Environment Management System (SHEMS), we have included some further information about our management of indoor air quality in this report (see page 125).
Sustainability Context
Where applicable, this report includes objective information with reference to broader sustainable development concerns and trends, as recognised in regional and/or global publications and links between sustainability topics and Sonae Sierras organisational strategy. We have also identified sustainability initiatives undertaken within our Company which we believe to be particularly innovative in the shopping centre sector. These are shown by the innovation star symbol.
balance
This report discloses both favourable and unfavourable aspects of our performance. Where possible we have included positive and critical feedback received from our stakeholders. We also present and comment on our performance data in a way that enables the reader to easily interpret trends and to understand the factors that may have influenced our performance.
113
Completeness
See Boundary of the report under Global Reporting Initiative, Profile Disclosures, Report Parameters, 3.6, below.
3.7
The completeness of the data used to compile our Key Performance Indicators (KPIs) is explained 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.
114
3.9
In this report, actual measurements are presented whenever possible. Any estimates, underlying assumptions, or limitations on the values presented are explained using data qualifying notes beside each performance indicator. In all cases, we are confident that the margin of error associated with quantitative data will not affect stakeholders ability to reach accurate conclusions about our performance. 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) and Romanian 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 KPI in cases where these are not obvious to the reader. In cases where Sonae Sierras response does not exactly meet all of the GRI requirements, explanations can be found in the data qualifying notes.
3.10
Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement (e.g., mergers/acquisitions, change of base years/periods, nature of business, measurement methods). Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report. Table identifying the location of the Standard Disclosures in the report. Policy and current practice with regard to seeking external assurance for the report. If not included in the assurance report accompanying the sustainability report, explain the scope and basis of any external assurance provided. Also explain the relationship between the reporting organisation and the assurance provider(s).
Any re-statements of previously reported values are explained using data qualifying notes beside each performance indicator.
3.11
The most significant change in terms of scope in comparison with the previous reporting period was the sale of Plaza boli and El Rosal in Spain, meaning that on 31 December 2011 we had 49 shopping centres in our operational portfolio compared with 51 at the end of 2010. Any other changes in scope, boundary or measurement methods with respect to individual performance indicators are reported in the data qualifying notes besides each indicator. This section of our report (pages 110 to 154) is comprised of tables which make up the GRI Standard Disclosures. This report has been externally assured by an independent auditor to ensure that data and information is accurate and complies with GRI G3.1 guidelines. The independent auditors review can be found on pages 155 to 156.
3.12 3.13
115
Governance body/committee
Board of Directors Investment Committee Finance Committee Audit & Compliance Committee Compensation Committee Fiscal Board Executive Board
9% 14% 0% 0% 0% 0% 20%
4.2
Indicate whether the Chair of the highest governance body is also an executive officer (and, if so, their function within the organisations management and the reasons for this 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 independent and/or non-executive members. Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body. Our shareholders are represented on both the General Shareholders Assembly and the Board of Directors, providing them with an opportunity to express their views to these bodies. We also hold meetings with the Boards of each of the Sierra Funds, which provide Fund investors the opportunity 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 for employees 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 another opportunity for employees to make suggestions to the Board of Directors. The Explore programme is described on page 91.
4.4
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 organisations performance (including social and environmental performance).
116
4.8
Our Vision and Mission are presented in Our Company, page 10. Our CR Management System is underpinned by several public policies, including our over-arching CR Policy, all of which can be found on our corporate website: http://www.sonaesierra.com/en-gb/corporateresponsibility/crmanagement.aspx
4.9
Procedures of the highest Our Business Strategy, CR Governance and Management System, pages 22 to 23. governance body for overseeing the organisations 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. Processes for evaluating the highest governance bodys own performance, particularly with respect to economic, environmental, and social performance. Explanation of whether and how the precautionary approach or principle is addressed by the organisation. We do not have a formal process for evaluating the performance of the Board of Directors with respect to economic, environmental and social issues because there is not an intermediary body between the Board of Directors and the General Shareholders Assembly that could effectively 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. The precautionary principle is addressed through our approach to safety, health and environmental (SHE) issues. We operate a Safety, Health and Environmental Management System (SHEMS) certified in accordance with ISO 14001 and OHSAS 18001 standards at a corporate level and local 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 new projects and our Safety, Health and Environment Development Standards (SHEDS), also described on pages 24 to 25, enable us to minimise SHE risks and enhance the eco-efficiency of our shopping centres in operation during the design phase. We also demonstrate a precautionary approach to climate change risks; see pages 55 to 56 for further details.
4.10
4.11
117
Global Compact
Sonae is a signatory of the Global Compact, a voluntary contract between the United Nations and the worldwide business community. It is designed to encourage companies to embrace, support and enact, within their sphere of influence, a set of core values in the areas of human rights, labour standards, the 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.
Our Global Compact Report can be found on our website at: http://www.sonaesierra.com/en-gb/corporateresponsibility/reportsandfeedback/reports/2011reports.aspx
Greenprint Foundation
In 2009, Sonae Sierra became a Founding Member of the Greenprint Foundation, a global industry initiative supported by key players in the property sector. The mission of the Greenprint Foundation is to enable its members to reduce the carbon footprint of their portfolios in an economically feasible manner in line with the current Intergovernmental Panel on Climate Change (IPCC) goals for global greenhouse gas stabilisation by 2050. Key programmes to achieve this aspiration include helping members to improve the energy efficiency of their buildings by piloting technological and management improvements and sharing the results. In 2011, Sonae Sierra participated in the Greenprint Performance Report Volume 2 (previously called Greenprint Carbon Index). We submitted energy consumption and Greenhouse Gas (GHG) emissions data from 47 shopping centres, which were analysed and compared to other Greenprint members portfolios.
118
* **
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.
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. Approaches to stakeholder engagement, In the tables below we have provided a summary of the stakeholder engagement techniques we employed including frequency of engagement in 2011 and key feedback received. More detailed commentary on feedback received from stakeholders by type and bystakeholder group, and in 2011 and the ways in which we responded to this feedback can be found in the Suppliers, Tenants, Communities and Visitors and Employees chapters of this report. Key topics and concerns that have been raised through stakeholder engagement, and how the organisation has responded to those key topics and concerns, including through its reporting.
4.17
our Investors
How we engaged and informed
General Shareholders Assembly Annual Reports and Quarterly Reports Regular meetings and presentations about our financial performance and risk management practices INREV Sustainability Working Group
Example in focus
In 2011 we were invited by one investor to participate in the Global Real Estate Sustainability Benchmark (GRESB). We participated in the GRESB and our property funds were ranked as the most sustainable in Europe.
119
Example in focus
1,490 ideas were submitted by employees to our Explore programme in 2011. 32 of these have been implemented or are under implementation. One of these ideas was to develop shopping centre services and a retail offer for customers aged 55 and over. Another was to develop different types of gardens in our shopping centres that need little or no water, in order to reduce our water consumption.
our tenants
How we engaged and informed
SierraCentres network and newsletter Tenant Satisfaction Surveys Top Tenant Survey Management meetings SHE Open Committees SHE training, SPO and emergency practice drills Energy reduction programme with tenants that consume the most energy
Example in focus
At GaiaShopping in Portugal, one of our tenants suggested that the shopping centre could organise a walk in the interest of promoting health and fitness and consideration for the environment. In response to the suggestion, GaiaShopping organised an 8km walk for tenants staff to a water treatment plant where they were given a talk about water management.
our Suppliers
How we engaged and informed
CR Questionnaire for critical, repeat development 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
Example in focus
Our suppliers at shopping centres in Spain informed us that the regular SHE meetings are helpful because staff responsible for workers have the opportunity to raise S&H issues and agree corrective actions which can be put in place to address them.
120
Example in focus
At Manauara Shopping in Brazil, one of our CAP members raised the question about how we were helping people with mobility difficulties to have access to the shopping centre. We identified a project which was being carried out by the Federal University of the Amazon State (UFAM), the Programme for Motor Activities for People with Disabilities (PROAMDE), which we contributed to through a campaign to raise awareness about respecting the use of parking spaces which are reserved for people with disabilities. We also installed signs in the shopping centre car park to make people aware about the reserved parking spaces.
School liaison and staff volunteering activities According to our Mall Tracking survey, 12% of visitors say that a companys environmental and Awareness-raising events with Safety and Health and Environmental themes, including social track record influences which shopping centre they visit and 23% say that a companys the celebrations of World Day for S&H at environmental and social track record influences Work and World Environment Day what products they buy. We have developed a strategy orientated towards visitors with this profile.
Further details can be found under Communities and Visitors, pages 83 to 90.
local Authorities
How we engaged and informed
Community Advisory Panels (CAPs) Engagement at the shopping centre level during the planning, development and operations phases
Example in focus
For several years, MaiaShopping in Portugal has held emergency drills in close collaboration with the municipal civil protection, police and fire services. Having worked together in emergency drills, these teams collaborated for another type of challenge: a football tournament which was organised by MaiaShopping in July. The teams drew, and the event helped to solidify the good relationships built up over the past years.
the Media
How we engaged and informed
Conferences and presentations Publication of articles in press covering economic, social and environmental issues Interviews
Example in focus
Favourable press coverage focused on our Water Saving Campaign held in shopping centres in Portugal, Spain and Italy; activities undertaken as part of our Community Day; the Planet Sierra Tenant Awards; our Green Sales campaign in Brazil and the environmental and safety and health certification achieved at various shopping centres.
Besides the specific feedback methods listed above, the Sierra Ombudsman is available for all stakeholders to present their complaints with the guarantee that these will be responded to. In 2011, the Sierra Ombudsman received 149 complaints from employees, suppliers and tenants. 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 complaints were responded to by email or letter and, in some cases, a meeting. Operational adaptations and improvements were made in response to some requests.
121
economic Aspects
Disclosures on Management Approach
economic 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 be found 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 and Our 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 pages 32 to 38. Information about key economic successes and shortcomings, major changes and key strategies for implementing policies or achieving performance can be found in Our Business Strategy, Our Medium- to Long-Term Strategy on page 18 and The Economic Context on pages 30 to 31.
performance Indicators
Indicator Compliance with Compliance with GRI G3.1 GRI CRESS
eC1 Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments. (Core)
Data Qualifying note: This indicator covers all company activities. Property taxes recharged to tenants or land owners by Sonae Sierra are considered to be immaterial. Operating costs by country are reported on page 12.
Full
Full
201.1
250.9
Operating Costs Employee wages and benefits Payment to capital providers Community Investment Payments to Government
economic value Retained
eC2 Financial implications and other risks and opportunities for the organisations activities due to climate change and other sustainability issues. (Core)
Full
Full
Sonae Sierras CR Steering Committee, which is chaired by the CEO and includes other representatives of the Executive Board, has identified that climate change can present risks and opportunities for the business and Sonae Sierra has already performed studies to identify the potential financial risks 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 described the 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 have also reported on the proportion of our assets which are located in areas where water is stressed or scarce.
122
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 where we 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 enough resources 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 perform a 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 our value 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 not through a fund held and maintained exclusively for the purpose. This does not constitute an indefinite liability to the employer; the liability is limited to the 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 the employee and the remainder for the employer. eC4 Significant financial assistance received from government. (Core) 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) 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 management business, when suppliers are considered to be of equal merit we do give preference, according to internal procedures established, to locally based suppliers. 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 and sub-contractors hired from the local community at significant locations of operation. (Core) Full Full Full Full Full Full
The hiring policy of Sonae Sierra is based on merit, experience and other professional criteria, regardless of nationality. There is no policy that guarantees preference to local employees. eC8 Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement. (Core)
Infrastructure investments ()
Full
Full
Portugal
1,164,657.32
Data Qualifying note: This indicator covers all company activities. This investment was made as a result of a contractual agreement with the local council, and involved investments in developing the infrastructure surrounding the LeiriaShopping centre.
eC9 Understanding and describing significant indirect economic impacts, including the extent of impacts. (Additional) Not reported.
123
environmental Aspects
Disclosures on Management Approach
overall
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 environmental management procedures which occurred during the reporting year can be found in Our Business Strategy, Safety, Health and Environment Management System on pages 24 to 26 and in each environmental impact area chapter under Environmental Performance on pages 47 to 70. Policy Our Environmental Policy establishes our responsibility to be proactive in safeguarding the environment for both todays and future generations 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.
Our Environmental Policy, which is available on our corporate website at http://www.sonaesierra.com/en-gb/corporateresponsibility/crmanagement.aspx
Organisational Responsibility Ultimate responsibility for environmental aspects lies with Sonae Sierras CEO and Executive Committee. The Safety, Health and Environment (SHE) Steering Committee constitutes the senior level of decision making. This Committee establishes the Environmental policy, goals and objectives and monitors progress in respect of these objectives. The Sustainability Office actively supports the SHE Steering Committee and advises on environmental policies and standards. Responsibility for the implementation of Safety, Health and Environment Development Standards (SHEDS) and Safety, Health and Environment Management System (SHEMS) procedures is assigned to all leaders 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, environmental management 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, the Sustainability Office and Human Resources (HR) Department use a competence matrix to define the skills and knowledge required for each aspect of the SHEMS to be effectively implemented by Sonae Sierras employees. Each year, our HR Department identifies SHE training and awareness needs with reference to the staff assessment process, with a particular focus on those employees whose job role impacts on SHE issues, or who have responsibilities for SHE management. General training needs are also identified by the Sustainability Office with support from the Country SHE Coordinator. All training needs are recorded in the Corporate Training and Awareness Plan and communicated to all employees involved and their line managers. Site Training and Awareness Plans are also developed based on the Corporate Plan, and cover initial and continuous training and awareness for personnel such as new employees, service suppliers workers and tenants. An evaluation process 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 on a regular basis. A series of tools and applications exist to assist the monitoring and reporting tasks, such as the SHE Portal and the CR Portal. Performance results are evaluated on a timely basis by all the involved entities, including the SHE Steering Committee, Executive Committee 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 further accidents. Relevant importance is given to the communication of incidents; their investigation; the determination of their root cause; the definition of proper corrective and preventive measures, and also the communication of learning points throughout the organisation.
124
Total number of complaints Total number of environmental complaints Proportion of complaints about environmental issues (%) projects under development Total number of environmental complaints
10
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, on pages 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.
125
Compliance
Our SHEMS ensures that, as a minimum, Sonae Sierra complies with all SHE legislation and regulations in the countries where it operates. The legal and other requirements procedure is established and maintained to identify the legal and other requirements that are applicable to Sonae Sierras activities and periodically evaluate compliance with these.
transport
See Energy and Climate, pages 47 and 50.
126
en1 Materials used by weight, value or volume. (Core) Suppliers, page 77. en2 Percentage of materials used that are recycled and reused input materials. (Core) Suppliers, page 77. en3 Direct energy consumption by primary energy source. (Core)
Full
Partial
Full
Partial
Full
Partial
Fuel Type
Use
kWh
GJ
CHP at MaiaShopping and NorteShopping Boilers Fleet cars and business travel in staff's own cars Fleet cars and business travel in staff's own cars Fleet cars and business travel in staff's own cars
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 Dsseldorf 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 So 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 based on publicly available information. The conversion factor used to convert kWh to GJ is 0.0036, as defined by the GRI G3.1 Guidelines.
127
Full
Partial
Sonae Sierras 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 losses which occur in electricity production, transportation and distribution. Indirect energy consumption by primary source and by country is presented in the table below.
electricity
Non-renewable energy Country GJ kWh Renewable energy GJ kWh GJ Total kWh
heat
Non-renewable energy Country GJ kWh Renewable energy GJ kWh GJ Total kWh
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 Portimo in Portugal was undergoing refurbishment works from September to December. During this period, electricity consumption for the refurbishment project was provided 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 exclude consumptions 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 River Plaza 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 in January 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 conversion factor 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 of OECD and non OECD Countries published in 2011.
128
Partial
Country
Building Energy Intensity, Shopping Centres (kWh/ m2 mall and toilet area)
Data Qualifying note: See the data qualifying note for indicator EN4 above. This indicator includes 48 out of 49 shopping centres owned by Sonae Sierra and in operation for the full reporting year and six out of eight main corporate offices. The Dsseldorf office was also excluded from this indicator since there are no meters in place to enable us to measure natural gas consumed by boilers.
Full
Partial
GJ
kWh
56 36,396
15,556 10,110,000
Data Qualifying note: This indicator includes 47 out of 49 shopping centres owned by Sonae Sierra and in operation 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 Portugal were excluded because data was not available for 2010 and/or 2011. The conversion factor used to convert kWh to GJ is 0.0036, as defined by the GRI G3.1 guidelines.
36,452 10,125,556
Relevant financial data, actual or estimated, such as money invested in conservation and efficiency improvements, and money saved through energy reduction initiatives is presented on page 53.
129
en6 Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives. (Additional)
Full
Full
Initiative description
Reduction (GJ)
GranCasa; Luz del Tajo; Plaza Mayor; Parque Principado (Spain) Manauara Shopping; Parque D. Pedro Shopping; Ptio Brasil Shopping; Shopping Metrpole; Shopping Penha; Shopping Plaza Sul (Brazil) CascaiShopping (Portugal) Valle Real (Spain) Airone; Freccia Rossa; Valecenter (Italy) Ptio Brasil Shopping (Brazil) Centro Colombo; Centro Vasco da Gama; GaiaShopping; NorteShopping (Portugal) Plaza Mayor (Spain) Alexa; Loop5 (Germany) River Plaza Mall (Romania) Zubiarte; La Farga (Spain) Mnster Arkaden (Germany) LoureShopping (Portugal) Freccia Rossa (Italy) MadeiraShopping; Parque Atlntico (Portugal) Gli Orsi (Italy) Mnster Arkaden (Germany) Shopping Plaza Sul (Brazil) Parque Principado (Spain) NorteShopping (Portugal) Athens office (Greece)
55447
24,427
Installation of new, more efficient HVAC equipment (including Air Treatment Units, chillers and cooling towers).
57648
24,236
Installation of electric car battery charging systems. Improvement of the lighting management system and/ or installation of lighting sensors. Improvement of the energy monitoring and/or metering system. Improvement of the buildings insulation. Implementation of free cooling. Shut-down of the HVAC system during winter. Installation of energy sensors and equipment to turn off heating consumption during the summer. Installation of paper disposal to clean hands in the toilets, in order to decrease the use of electric hand driers. Radiation reduction inside the mall. Replacement of electric reactive armour in the car park. Replacement of electric ballasts. .
n.d. n.d.
n.d. n.d.
Initiative description
Reduction (GJ)
The office building faade was designed in a way that allows a high degree of thermal insulation. The HVAC system introduced in the offices is an induction system with units 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, which allows for low energy use and maximises the dispersion of light.
n.d. n.d.
n.d. n.d.
n.d. n.d.
n.d. n.d.
Introduction of thermal insulation and high efficiency electric motors 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.
47 48
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. 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.
130
en7 Initiatives to reduce indirect energy consumption and reductions achieved. (Additional)
Partial
Partial
Initiative description
Reduction (GJ)
Identified the three tenants with the highest energy consumption in each country and engaged with them in an energy reduction programme. Use of video conference which will decrease business travel to join meetings. Letter sent to tenants asking them to turn off lighting when the shopping centre is closed.
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.
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 and estimated), such as money invested in conservation and efficiency improvements, and money saved through water reduction initiatives is 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) Water, page 58. CRe2 Building water intensity. (Core)
Partial
Partial
Full
Building Water Intensity (litres/visit) 6.64 5.55 6.21 3.01 7.84 4.70 9.29 6.88
Data Qualifying note: This indicator includes 47 out of 49 shopping centres owned by Sonae Sierra and in operation for the full reporting year. Building water intensity is determined by the following formula: (Total Water Consumption (excluding tenants) + Total Water Consumption purchased on behalf of tenants)*1,000)/"Number of visits in the reporting year across the owned portfolio). Parque Atlntico in Portugal was excluded because the shopping 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 not being fully operational during 2011. Tenants water consumptions from AlbufeiraShopping and RioSul Shopping in Portugal; GranCasa in Spain and Airone in Italy were excluded because tenants at these centres pay for their own water consumption directly.
131
en11 Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high 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 and areas of high biodiversity value outside protected areas. (Core) Biodiversity and Habitats, page 69. en13 Habitats protected or restored. (Additional) No habitats were protected or restored during 2011. en14 Strategies, current actions, and future plans for managing impacts on biodiversity. (Additional) Biodiversity and Habitats, page 68. 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) Energy and Climate, pages 48 and 49. en17 Other relevant indirect greenhouse gas emissions by weight. (Core) 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) Reported under EN6 on page 129. en19 Emissions of ozone-depleting substances by weight. (Core)
Full
Full
Full
Full
Full
Full
Full
Full
Full
Partial
Full
Full
Full
Full
Not applicable. We have not reported on emissions of ozone-depleting substances because the only emissions of ozone-depleting substances that result from our activities are during the usage and replacement of air conditioning systems. We operate a procedure defined under our SHEMS regarding the management of equipment that uses ozone-depleting substances and this includes a programme to replace equipment that uses HCFC.
en20 NOx, SOx, and other significant air emissions by type and weight. (Core)
Full
Full
NOx Non Methane Volatile Organic Compounds (NMVOC) Particulate Matter (PM) SOx Volatile Organic Compounds (VOC) totAl
Data Qualifying note: This indicator covers all shopping centres owned by Sonae Sierra and in operation for the full reporting year as well as all eight main corporate offices. The information reported covers NOx, SOx and other significant air emissions from boilers at shopping centres and from on-site cogeneration systems at two of our centres in Portugal (MaiaShopping and NorteShopping). Emissions from mobile sources such as the company car fleet and the emergency generators have not been included here. Data from boilers at the Dsseldorf office were unavailable. The calculations of emissions from boilers have been made using the figures for natural gas consumption and associated emissions conversion factors. The methodology used is consistent with the Intergovernmental Panel on Climate Change (IPCC) and the Portuguese Environmental Agency (Agncia Portuguesa do Ambiente, APA). The calculations of emissions from cogeneration have been made based on direct measurements of the NOx, SOx and other significant air emissions. The total values for these emissions in 2011 have been calculated using the average of the two most recent measurements from each engine and multiplied by the total number of hours of their operation during the year.
132
Not applicable. Sonae Sierra does monitor wastewater quality at all owned shopping centres, but the wastewater produced is domestic rather 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) Waste, page 64. en23 Total number and volume of significant spills. (Core)
Data Qualifying note: This indicator refers to all spills of over 2.5 litres. This indicator includes all the significant spills of chemicals, oils, fuels, waste and other type of spills in shopping centres owned by Sonae Sierra and in operation for the full reporting year. It also includes Sonae Sierras eight main corporate offices and projects that were under development and/or completed during the reporting year. In 2011, four spills were reported in Sonae Sierra shopping centres: two fuel spills in Shopping Campo Limpo in Brazil; one oil spill in Plaza Mayor in Spain and one food oil spill in Loop5 in Germany.
Full
Full
Full
Full
1 4
Operations
Shopping
Campo Limpo
Plaza
Mayor Loop5
60
4 114
50
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 organisations 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 according to applicable legal designations. (Core)
Data Qualifying note: This indicator covers all projects under development during the reporting year.
Full
Site
Area/Volume decontaminated
Le Terrazze
Brownfield
59,250m2
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.
133
en26 Initiatives to enhance efficiency and mitigate environmental impacts of products and services, and extent of impact mitigation. (Core)
Shopping centres in operation, corporate offices and completed projects
Full
Full
Initiative description
All shopping centres All shopping centres in Portugal, Spain and Italy GranCasa (Spain) Mnster Arkaden (Germany) Boavista Shopping; Ptio Brasil Shopping; Shopping Campo Limpo; Shopping Metrpole expansion; Shopping Penha; Tivoli Shopping (Brazil) Centro Vasco da Gama; GuimareShopping; RioSul Shopping (Portugal) Parque Principado (Spain) Loop5 (Germany) River Plaza Mall (Romania) Ptio Brasil Shopping (Brazil) ArrbidaShopping; MadeiraShopping; RioSul Shopping; ViaCatarina (Portugal) La Farga (Spain) Mnster Arkaden (Germany)
Communication of Environment Tips and Quick Wins to all Sonae Sierra employees to increase environmental awareness. Awareness campaign to encourage water saving. Installation of equipment to reduce water use in toilets (e.g., waterless urinals, flow reduction devices on taps and flushes).
Installation of equipment to improve waste segregation, recycling and/ or reduce waste production in the shopping centre.
Additional four tonnes of waste recycled in 2011 at River Plaza Mall; 94.2 tonnes of non-recyclable glasses sent to incineration instead of landfill at RioSul Shopping50 ViaCatarina: Improvement in wastewater quality against the COD and Sulphides parameters51 La Farga: Improvement in wastewater quality against the COD, BOD, Oils/fats and inhibitor materials parameters52 n.d.
8a Avenida; MaiaShopping (Portugal) La Farga (Spain) Alexa; Mnster Arkaden (Germany) Pantheon Plaza (Greece) CoimbraShopping; LoureShopping (Portugal) Parque D. Pedro Shopping; Shopping Metrpole (Brazil) Centro Colombo (Portugal) Shopping Plaza Sul (Brazil) C.C. Continente de Portimo; MadeiraShopping (Portugal) Airone (Italy)
n.d.
Centro Colombo: 1,168m3; and Shopping Plaza Sul: 61.69m3 rainwater collected n.d. Eliminates the risk of releasing R22, which has higher Global Warming Potential than R407c 2,000m3 of water saved
Installation of Ponto Electro, an electronics recycling point for communal use. Substitution of the older chiller which used R22 with a new one which uses R407c.
Valecenter (Italy)
Adjustments to the operation of the existing chiller and installation of a more efficient cooling tower.
49
50 51 52
53
Includes five out of eight shopping centres listed in the left-hand column. Data was not available from Mnster Arkaden in Germany and Ptio Brasil Shopping and Shopping Metrpole in Brazil. 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. 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. 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. 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.
134
en26 (continued)
Shopping centres in operation, corporate offices and completed projects
Initiative description
8a Avenida (Portugal) AlgarveShopping (Portugal) GaiaShopping (Portugal) NorteShopping (Portugal) Pantheon Plaza (Greece) Parque D. Pedro Shopping Maia office Athens office Shopping Metrpole expansion
Noise reduction measures. Awareness campaign on environmental damage caused by of plastic bag use. Implementation of water management measures, including changes to the irrigation system. Implementation of a system for filtering water withdrawn on site. Installation of gas leakage sensors on chillers. Updating of AS-BUILT. Awareness session on eco driving. Binding of scrap paper to make notebooks. Use of materials with recycled content and materials sourced locally or regionally.
n.d. n.d. n.d. n.d. n.d. n.d. n.d. 12kg of paper reused 27% of materials had recycled content; 88% of heavy materials were of local or regional origin; 84% of the light materials were of local or regional origin54
Substitution of plants in the food court with ones which require less water. n.d.
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 Sierras 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 with environmental laws and regulations. (Core)
operations and offices Monetary value paid of significant fine () Number of cases brought through dispute resolution mechanisms
Full
Full
GaiaShopping La Farga
Development
0 6,010
Monetary value paid of significant fine ()
1 0
Number of cases brought through dispute resolution mechanisms
0 1
Number of monetary sanctions received
0 0
Number of non-monetary sanctions received
200 0
0 0
1 0
1 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, and GaiaShopping 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.
54
The proportion of materials with recycled content and local and regional origin were calculated by value of spend.
135
en29 Significant environmental impacts of transporting products and other goods and materials used for the organisations operations, and transporting members of the workforce. (Additional)
Full
Full
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 and management activities), it is not possible to quantify their impact, although measures to mitigate such impacts are implemented (for example, the implementation of the SHEDS during the construction phase, and promoting local procurement). Sonae Sierras corporate SHEMS encompasses a methodology for the Identification and Evaluation of Environmental Aspects and Impacts. In the guidelines for environmental significance assessment the different energy uses and their sources are taken into account. The environmental impacts of transporting members of the organisations workforce are mitigated by: The full implementation of the SuperCom project across our offices, which has helped us to reduce emissions associated with staff business travel. SuperCom has involved the installation of video- and audio-conferencing facilities in all meeting rooms and enabling staff 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.
Full Full
Prevention and environmental management costs Waste disposal, emissions treatment, and remediation costs totAl
total environmental investments () by type for corporate offices
Prevention and environmental management costs Waste disposal, emissions treatment, and remediation costs totAl
total environmental investments () by type for projects under development
Prevention and environmental management costs Waste disposal, emissions treatment, and remediation costs totAl
Data Qualifying note: This indicator includes all shopping centres owned by Sonae Sierra and in operation for the full reporting year; all eight main corporate offices and all projects concluded during the reporting period (including the Shopping Metrpole expansion project which was completed during the reporting year). Environmental investments for shopping centres are based on the values obtained from Sonae Sierras Environmental Management Accounting (EMA) Model. Information for all countries where Sonae Sierra has shopping centres in operation is available in the EMA. The values extracted from the EMA were arranged using a matrix which matched the main environmental activities defined in the model with the corresponding categories required for EN30 as defined by the GRI guidelines. Environmental investments for offices include costs related with internal audits; services for legislation updates, and measures to improve water and energy efficiency. Environmental investments for the Shopping Metrpole expansion project include costs related with waste management activities; wastewater monitoring; noise measurements; internal audits and other items. The conversion factor used to convert Brazilian Reais into Euros was 0.43061. The conversion factor used to convert Romanian RON into Euros was 0.23618.
136
We also have four other policies in place in relation to employment issues. These are: Non-Discrimination and Diversity Policy Working From Home Policy Part-Time Working Policy Flexible Work Schedule Policy
Organisational Responsibility Ultimate responsibility for Employees aspects lies with Sonae Sierras CEO and the Executive Committee. Operational responsibility is 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 and policies and providing quality HR advice to business leaders. Training and Awareness We provide a regular integration scheme for new employees, called JUMP, which includes a specific sustainability programme and an explanation of Sonae Sierras 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 which focus on specific HR issues (e.g., information on legal requirements and Sonae Sierra HR procedures). HR Knowledge Pills have already been held in Spain and Italy focusing on Maternity and Paternity Leave, and we will roll them out across other countries where we operate in 2012. We also developed and carried out two internal training initiatives; LISTEN, which intends to raise awareness about the importance of 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. Monitoring and Follow-up 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 career development reviews, and have the opportunity to comment on the assessment made by their line manager. We have developed guidelines to conduct 360 appraisals for all managers and team leaders who have more than five employees reporting directly to them, and the 360 appraisals now occur every two years. Managers and team leaders who are subject to this process are encouraged to meet with the HR team to better understand their results, and they may select one competency to improve and establish a development 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. Additional Contextual Information Details of the employees-related risks and opportunities that we have identified as being most relevant for our business are provided on 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 selling property services to third parties. This is also a strategy that will allow us to maintain our people and their know-how and expertise.
137
Our Responsible Procurement Policy commits us to integrating CR criteria into our Service Suppliers Management Procedures so as to ensure that the social and environmental performance of our suppliers is considered when tendering, managing and evaluating supplier contracts.
Our Responsible Procurement Policy is available here on our corporate website http://www.sonaesierra.com/en-gb/corporateresponsibility/crmanagement.aspx
Organisational Responsibility Ultimate responsibility for S&H aspects lies with Sonae Sierras 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 and objectives and monitors progress with respect to these objectives. The Sustainability Office actively supports the SHE Steering Committee and advises on S&H policies and standards. Responsibility for the implementation of our Safety, Health and Development Standards (SHEDS) and Safety, Health and Environment Management System (SHEMS) procedures is assigned to all leaders 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 and technical issues. Training and Awareness 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 and function during the annual personal assessment process. For example, all new Sonae Sierra employees must receive S&H induction training, and all Site Managers, Site Correspondents and Country SHE Coordinators must attend training on all the S&H procedures within 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. Monitoring and Follow-up 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 chapter on pages 72 and 75.
138
139
lA1 Total workforce by employment type, employment contract, and region, broken down by gender. (Core)
Full
Partial
Portugal Spain Italy Germany Greece Romania Algeria Colombia Brazil The Netherlands total
5 2 1 1 9
5 1 2 8
10 1 4 1 1 17
542 9 551
538 1 539
2 4 1 1 3 11
2 3 1 1 7
4 7 1 1 2 3 18
527 24 551
526 13 539
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 workers or independent contractors in Brazil; Colombia; The Netherlands and Algeria. There are also no independent contractors in Italy.
140
lA2 Total number and rate of new employee hires and employee turnover by age group, gender and region. (Core)
Full
Full
Less than 35 years 35-44 years 45-54 years 55-64 years More than 64 years total number
76 67 18 6 1 168
Less than 35 years 35-44 years 45-54 years 55-64 years More than 64 years total number
18 4 3 25
turnover by gender
Number Ratio (%)
97 71 168
8.9% 6.5%
12 13 25
7.9% 8.6%
turnover by region
Number Ratio (%)
Portugal Spain Italy Germany Greece Romania Colombia Brazil The Netherlands total number
38 9 6 11 7 2 0 94 1 168
Portugal Spain Italy Germany Greece Romania Colombia Brazil The Netherlands total number
2 1 1 21 25
Less than 35 years 35-44 years 45-54 years 55-64 years More than 64 years total number
108 33 9 2 152
78 74 152
7.2% 6.8%
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 the reporting period. The rate (%) of new employee hires leaving employment was calculated using the following formula: Number of new employee hires leaving employment divided by the total number of new employee hires as on 31 December 2011.
Portugal Spain Italy Germany Greece Romania Colombia Brazil The Netherlands total number
20 2 10 7 2 110 1 152
141
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) 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 agreements. (Core) Full Full Full Full
Sonae Sierras 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, by region and by gender. (Core) Safety and Health, page 97. CRe6 Percentage of the organisation operating in verified compliance with an internationally recognised health and safety management system. (Core) Full Partial Partial
Direct Employees
Supervised Workers
Independent Contractors
Total workforce and independent contractors Total number of direct employees, supervised workers and independent contractors, externally verified to be operating in compliance with OHSAS 18001 Percentage of direct employees, supervised workers and independent contractors, externally verified to be operating in compliance with OHSAS 18001 (%) Total number of direct employees, supervised workers and independent contractors, internally verified to be operating in compliance with the safety and health management system (S&HMS) 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) (%)
1,090
18
17
Data Qualifying note: This indicator includes all Sonae Sierra direct employees, all supervised workers and all independent contractors as on 31 December 2011.
477
13
44%
50%
76%
1,041
17
17
96%
94%
100%
142
lA8 Education, training, counselling, prevention, and risk-control programmes in place to assist workforce members, their families, or community members regarding serious diseases. (Core)
Full
Full
Coverage of programmes
Education/Training
Counselling
Prevention
Treatment
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 and their 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 enjoyable while 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. Legionnaires disease: Some members of our staff in our Lisbon office completed a basic training about Legionellosis.
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)
Average number of hours per employee
Partial
Partial
Employee Category
Number of employees
Number of hours
Global Senior Executive, Senior Executive, Executive Senior Manager Manager Team Leader Project Team Specialist Team Member total
Data Qualifying note: This indicator includes all Sonae Sierra direct employees as on 31 December 2011. To obtain the average hours per employee (AHE), by employee category and by type of training, the following formula was applied: AHE (by employee category and by type of training) = total hours of training per employee category and type of training, divided by total employees per employee category.
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) Employees, page 94. lA13 Composition of governance bodies and breakdown of employees per employee category according to gender, age 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 of operation. (Core) Employees, page 93.
Full
Full
Full
Full
Full
Full
143
performance Indicators
Indicator Compliance with Compliance with GRI G3.1 GRI CRESS
hR1 Percentage and total number of significant investment agreements and contracts that include clauses incorporating human rights concerns or that have undergone human rights screening. (Core)
Full
Full
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 on joint 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 critical development 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 rights screening and actions taken. (Core) Full Full
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) 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 critical development 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. hR3 Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained. (Core) Full Full
The internal training package called JUMP, which is delivered to new employees, covers issues related to human rights, such as the Code of Conduct and Non-Discrimination Policy. During 2011, a total of 552 hours of JUMP training was provided, involving 23 employees (representing 15% of the total new employee hires in 2011 and 2.1% of the total direct employees). hR4 Total number of incidents of discrimination and corrective actions taken. (Core) 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 collective bargaining may be violated or at significant risk, and actions taken to support these rights. (Core) Full Full Full Full
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 corporate decision-making in a number of areas, e.g., Safety and Health.
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 considered to be main shopping centre service providers: cleaning, security, maintenance and waste management.
144
hR6 Operations and significant suppliers identified as having significant risk for incidents of child labour, and measures taken to contribute to the effective abolition of child labour. (Core)
Full
Full
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 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. hR7 Operations and significant suppliers identified as having significant risk for incidents of forced or compulsory labour, and measures to contribute to the elimination of all forms of forced or compulsory labour. (Core) Full Full
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 working conditions 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 organisations 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 impact assessments. (Core) Full Full
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 involved identifying 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 grievance mechanisms. (Core) No grievances related to human rights were registered within the Company in 2011. Full Full
145
Society Aspects
Disclosures on Management Approach
local communities
Goals and Performance 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 in the 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 and awareness-raising campaigns, by capitalising on our ability to communicate with the public who visit our shopping centres.
CR Policy is available here on our corporate website: http://www.sonaesierra.com/en-gb/corporateresponsibility/crmanagement.aspx
Organisational Responsibility Ultimate responsibility for Communities aspects lies with Sonae Sierras CEO and the Executive Committee. During the shopping centre development phase, the Country Marketing Manager is responsible for all issues concerning public relations and community activation marketing programmes; all other local community issues are managed by the Development Project Manager. Guidelines and a macro Activity Plan is approved by the Board Members of the Company responsible for the project. Operational responsibility for local communities and visitor satisfaction aspects during the shopping centre operations phase lie with our Shopping Centre Managers, supported by the central Marketing Department. Training and Awareness We provide training to shopping centre management teams and development managers regarding community relations, with a particular focus on the implementation of Community Advisory Panels (CAPs). Our employees are also made aware of community issues through surveys, participation in volunteering activities and school liaison projects. Monitoring and Follow-up During the development stage we carry out feasibility studies to identify consumers needs in retail, services and leisure activities, in order to design shopping centres that match market needs and the existing retail offer. These studies consider factors such as demographics 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 shopping centres and development projects. CAPs aim to create trust and co-operation between Sonae Sierra shopping centres and local community representatives. Community representatives are invited to raise ideas and concerns and present potential projects for collaboration 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 local consumer habits. These studies assess among other things the degree and quality of the existing commercial supply and the shopping facilities used by local residents. Information is collected through telephone interviews and structured questionnaires, and results are used to define the centres marketing strategy to ensure that it is tailored to the catchment area. Geo Tracking surveys also include questions about social and environmental aspects of our shopping centres. Additional Contextual Information Details of the communities-related risks and opportunities that we have identified as being most relevant for our business are provided on page 21. Key strategies for implementing our Communities objectives and targets are explained in the Communities and Visitors chapter on page 83. Apart from GaiaShopping in Portugal, which was completed in 1989, none of our projects have ever involved the displacement of local community members. In the case of GaiaShopping, we constructed new houses in order to resettle the people who used to live in the area.
146
public policy
Essentially, Sonae Sierra supports political endeavours to encourage greater social cohesion and environmental responsibility, although we resist changes in legislation that are likely to significantly and adversely affect our business. Lobbying activities which took place in 2011 are reported under GRI Performance Indicator SO5 on page 148.
147
So1 Percentage of operations with implemented local community engagement, impact assessments and development programmes. (Core)
Full
Full
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 87 in 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 major expansions. They include specifications such as the identification of locations of historical, architectural and archaeological value and data on important socio-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 local consumer 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 Metrpole 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 transport infrastructure around new shopping centre sites (including roads, bicycle paths and parking spaces, footpaths, etc.) is another example of infrastructure developed 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, crche 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 by project. (Core) Full
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 guas 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
Total number of business processes analysed for risks related to corruption Percentage of business processes analysed for risks related to corruption
7 54%
Data Qualifying note: This indicator includes all business activities. Our Code of Conduct states that is forbidden to give or accept any reward (or benefit) with the purpose of influencing someones behaviour to obtain a commercial advantage. We ensure compliance with this obligation by incorporating corruption risk into the annual Internal Audit plan of activities, which is aligned with the Sonae Sierra Risk Matrix through the audit work carried out by business process areas. During 2011, the Internal Audit activities covered all the core business risks included in the Risk Matrix and 54% of the corresponding business processes. In 2011, no instances of corruption were detected. The Risk Management Working Group approved the Anti-Corruption Guidelines that will enable the development of anti-corruption awareness through the provision of staff training.
148
So3 Percentage of employees trained in organisations anti-corruption policies and procedures. (Core)
Data Qualifying note: This indicator includes all Sonae Sierras direct employees as on 31 December 2011. In 2011, one BEST (Behaviour with Ethics Sierra Training) session was held for employees, with the total duration of two hours. The percentage and the total number of employees in each employee category who have received anti-corruption training during the reporting year was calculated using the total number of Sonae Sierra direct employees as on 31 December 2011.
Full
Full
Employee Category
Number of Employees
Senior Executive Senior Manager Manager Team Leader Project/ Team Specialist Team Member total %
1 5 2 2 5 7 22 2%
So4 Actions taken in response to incidents of corruption. (Core) 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
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 Sierras shopping centres have their own waste management system. Suggestion to the Vila Nova de Gaia, Seixal and Covilh 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 Federations (EPF) responses to 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 EUs 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 Commissions 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 Sundays and festive days and additional flexibility for stores opening hours, as well as simpler and less restrictive regulations for the creation of new shopping centres, in keeping with the EU Directives and court rulings on competition. As current chairman of the CNCC and responsible for Sierra Institutional Relations in Italy, Pietro Malaspina promoted this viewpoint in a number of congressional events and interviews, as well as in meetings with government officials. This action, combined with similar lobbying activities by other industry associations, was instrumental in bringing about the decisions taken by the Italian Government in June and in December 2011, that liberalised retail opening hours and set the basis for deep changes in retail laws at regional level, towards the elimination of limitations to the creation of new shopping centres, except in cases of proven conflict with public interest. Although these legislative measures are being challenged at the Italian Constitutional Court by regional governments, it is generally felt that they have established a turning point from a very restrictive legislation towards a more liberal one.
56
149
So6 Total value of financial and in-kind contributions to political parties, politicians, and related institutions by 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 their 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 and regulations. (Core)
Full
Full
Full
Full
Full
Full
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 and there were no cases brought through dispute mechanisms. Last year, Sonae Sierra reported three cases brought against the Company through dispute resolution 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.
150
151
Marketing Communications
Sonae Sierra does not currently monitor marketing communications to evaluate conformity and/or good practices with respect to transparency 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 in marketing communications.
152
performance Indicators
Indicator Compliance with Compliance with GRI G3.1 GRI CRESS
pR1 Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures. (Core)
Full
Full
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 centre development projects must implement a site-specific Safety, Health and Environment Management 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 procedures defined 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 Sierras SHEMS at corporate and site levels on an annual basis. This covers expansion and refurbishment activities. The same procedures apply as those described in relation to New construction above.
Development/redevelopment
100%
153
pR2 Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle, by type of outcomes. (Additional)
Incidents of non-compliance with regulations resulting in a fine or penalty Incidents of non-compliance with regulations resulting in a warning
Full
Full
Country
4 1 1 1 7
3 3 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 services subject to such information requirements. (Core)
Full
Full
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, management, occupation and redevelopment. (Core) In 2011 we achieved a total of 12 new sustainability certifications for construction sites and operational shopping centres.
Shopping Centres Development Projects
Data Qualifying note: This indicator includes all shopping centres owned by Sonae Sierra and in operation for the full reporting year; all eight main Sonae Sierra corporate offices and all projects under development during the reporting year.
Full
Offices
3 5
2 2
For details of the type and number of sustainability certifications achieved by our business to date, see Our Business Strategy, Safety, Health and Environment Management System, page 25.
154
pR4 Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service
information 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)
Tenants, pages 78 to 81. Communities and Visitors, pages 83 and 88.
Full
Full
pR6 Programmes for adherence to laws, standards, and voluntary codes related to marketing communications,
including advertising, promotion, and sponsorship. (Core)
Full
Full
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
use of products and services. (Core)
Full
Full
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.
155
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 Sierras 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 Sierras 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 Sierras 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.
156
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 Joo Carlos Frade
157
Feedback Form
At Sonae Sierra we aim to conduct our business in a way that is sensitive and responsive to our stakeholders 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 minutes to provide us with some feedback on this report. Please complete the questions below and return your form either by email to Global@sonaesierra.com or by post to Rua Amlcar Cabral, n 23, Quinta do Lambert, 1750-018 Lisbon, Portugal.
3. Using a scale of 1 to 6 (1 = Very Poor; 6 = Excellent), how do you rate: 1 1 1 1 1 1 2 2 2 2 2 2 3 3 3 3 3 3 4 4 4 4 4 4 5 5 5 5 5 5 6 6 6 6 6 6 The financial information presented in this report? Sonae Sierras economic performance during the course of 2011? The environmental information presented in this report? Sonae Sierras environmental performance during the course of 2011? The social information presented in this report? Sonae Sierras social performance during the course of 2011?
4. Is there any information on Sonae Sierras economic, environmental and social performance which you felt was missing from this report? If yes, please describe what this was. ...................................................................................................................................... ......................................................................................................................................
5. Are there any particular aspects of economic, environmental and social performance which you feel that Sonae Sierra needs to improve on? If yes, please explain which ones. ...................................................................................................................................... ......................................................................................................................................
continued
158
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? ...................................................................................................................................... ......................................................................................................................................
Please use the space below to provide your own comments on this report or any other aspect of Sonae Sierras economic, environmental and social performance. .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... .......................................................................................................................................... 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
poRtUGAl
lISboA RUA AMLCAR CABRAL, 23 1750-018 LISBOA TELEPHONE: +351 21 751 5000 FAX: +351 21 758 2688 poRto LUGAR DO ESPIDO,VIA NORTE 4471-909 MAIA TELEPHONE: +351 22 948 7522 FAX: +351 22 010 4698
ColoMbIA
CAlI CARRERA 98 NRO 16 -200 OFICINA DE ADMINISTRACIN - CALI VALLE- COLOMBIA TELEPHONE: +57 2 324 7225 FAX: +57 2 324 72 25 (EXT. 107)
lUxeMboURG
lUxeMboURG AV. JOHN. F. KENNEDY, 46 A 1855 LUXEMBOURG TELEPHONE: +352 26 00 52 13 FAX: +352 26 005 803
RoMAnIA
bUChAReSt BANEASA BUSINESS & TECHNOLOGY PARK BUILDING B, THIRD FLOOR, WING 1, 42-44 BUCURESTI PLOIESTI, SECTOR 1 013696 BUCURESTI ROMANIA TELEPHONE: +40 21 36 10 910 FAX: +40 21 36 10 988
MoRoCCo GeRMAnY
DSSelDoRF PETER-MLLER-STR. 18 40468 DSSELDORF TELEPHONE: +49 211 4361 6201 FAX: +49 211 4361 6202 CASAblAnCA ZNITH MILLNIUM IMMEUBLE 1 LOTISSEMENT ATTAOUFIK 4ME TAGE SIDI MAROUF 20190 CASABLANCA TELEPHONE: +212 (0)522879490 FAX: +212(0)522879494
SpAIn
MADRID C/ CONDE DE ARANDA, 24, 5 28001 MADRID TELEPHONE: +34 91 575 8986 FAX: +34 91 781 1960
AlGeRIA
KoUbA ILOT D N6 ZHUN, GARIDI II, KOUBA ALGER TELEPHONE: +213 (0) 21 56 38 02 FAX: +213 (0) 21 44 58 55
GReeCe
AthenS CHATZIYIANNI MEXI, 5 6 11528 ATHENS TELEPHONE: +30 210 725 63 60 FAX: +30 210 729 25 00
the netheRlAnDS
hooFDDoRp POLARISAVENUE, 61 2132 JH HOOFDDORP TELEPHONE: +31 23568 50 80 FAX: +31 23568 50 88
bRAzIl
So pAUlo AV. DR. CARDOSO DE MELO, 1184 12,13,14 FLOORS VILA OLMPIA, SO PAULO SP CEP: 04548 - 004 TELEPHONE: +55 11 3371-4133 FAX: +55 11 3845-4522
ItAlY
MIlAn CORSO GARIBALDI 86 20121 MILAN TELEPHONE: +39 02 62369001 FAX: +39 02 623690230/1
www.sonaesierra.com