Our materiality review process

Our business operates in a constantly changing environment and it is important that we anticipate and adapt to these changes, managing our risks and leveraging opportunities.

In FY18, we completed a materiality review to update our understanding of evolving issues and expectations of Vicinity from the point of view of management internally as well as our external stakeholders with regards to environmental, social, governance and long-term economic sustainability risks and opportunities for Vicinity. 

During FY20 we undertook a materiality pulse check in response to the changing operating context in Australia and globally relating to the COVID-19 pandemic. This involved a desktop scan of industry reports and media coverage, and direct consultation with key external stakeholders, to understand how our material issues may have changed in priority and check for the emergence of any new material issues.

The results of our materiality assessments, including our 2020 pulse check, are considered in the regular review process for Vicinity’s enterprise risk register and in our annual risk disclosure.

For more information see our 2020 Annual Report (Page 20).

 

The materiality assessment process is outlined below: 

 

Important issues for Vicinity

Our FY18 materiality assessment identified Vicinity’s most prominent issues to be:

  • Vicinity’s response to risks and opportunities arising from climate change (adaptation and mitigation);
  • Providing relevant local community experiences and access to services that complement and enrich the retail experience; and
  • Responding to changing retail market conditions, trends and consumer preferences to create an environment where our retailers can thrive.

Additionally, the materiality pulse check undertaken during FY20 found that responsible supply chain (including addressing modern slavery risks) and data privacy and cyber security issues have risen in prominence in the views of our external stakeholders.

 

Vicinity’s material long-term sustainability issues

 

#

Material issue

 

Description

 

Where our impacts occur

and how we are involved

Our response

 

1

Climate change (adaptation and mitigation)

Vicinity’s management of and response to physical risks and opportunities posed by climate change and transitioning towards a low carbon economy. This includes our centres’ ability to withstand climate impacts and support community resilience during extreme weather events, as well as investment in renewable energy and energy efficiency technologies to ensure energy security for our operations and reduce carbon emissions across the portfolio. 

Inside and outside Vicinity; 

Direct contribution and through our operations and business relationships

Climate change approach

Climate resilience

Low carbon smart assets

2

Community hubs and consumer experience

Providing relevant local community experiences and access to services that compliment and enrich the retail experience.  This includes reinforcing our centres as integral parts of their local communities through the creation of inclusive spaces which offer a range of experiences where people love to connect, promoting a sense of local ownership. 

Inside and outside Vicinity

Direct contribution and through our operations and business relationships

Shaping better communities

Community hubs

2020 Annual Integrated Report (p. 13, 32-33)

 

3

Retail trading conditions

Responding to changing retail trends such as the rise of e-commerce, global competition, trading hours and changing societal and consumer needs by creating an environment that maximises the ability of our retailers to be profitable and thrive.

Inside and outside Vicinity;

Through our operations and business relationships

Partnering with our retailers

Community engagement 

2020 Annual Integrated Report (p. 4-8, 10, 20, 21, 24, 26-29, 30-31)

 

4

Cyber security and data privacy*

Protection of both critical business information technology, infrastructure and data, as well as customer and supplier information and privacy.

Inside and outside Vicinity;

Direct contribution and through our operations and business relationships

 

2020 Annual Integrated Report (p. 23, 30-31)

Data and insights

Vicinity Centres Privacy Policy

5

Responsible supply chain incl. modern slavery*

Managing a responsible supply chain across our business, including implementation of the pending Modern Slavery Act in Australia and responding to any potential human rights, labour, governance and environmental risks and opportunities.

Inside and outside Vicinity;

Direct contribution and through our business relationships

Working with our suppliers

6

Diversity, inclusion and wellbeing

Maintaining a diverse and inclusive workplace and responding to our people’s needs through flexible working arrangements, focusing on health and wellbeing and celebrating diversity, recognising this as a key strength to enhancing our connection with the diverse communities in which we operate.

Inside and outside Vicinity;

Direct contribution and through our operations

Diversity, Inclusion and Belonging

Our Reconciliation Action Plan (RAP)

Health and wellbeing

2020 Corporate Governance Statement (p. 11-12)

2020 Annual Integrated Report (p. 22-23, 35)

7

Physical safety

Ensuring the safety and security of our people, consumers, retailers and contractors, through safety systems and emergency preparedness, technology and building design, and our response to the threat of terrorism or hostile aggression incidents.

Inside and outside Vicinity;

Direct contribution, through our operations and business relationships

Focus on safety

2020 Annual Integrated Report (p. 22-23)

8

Tenant engagement and retention

Supporting our retailers and investing in strong relationships to ensure tenant attraction, retention and satisfaction.

Inside and outside Vicinity;

Direct contribution, through our operations and business relationships

Partnering with our retailers

2020 Annual Integrated Report (p. 22, 25, 28-29, 30-31)

9

Waste management and recycling

Maintaining effective waste management and recycling practices, including responding to possible external risks to recycling program access in Australia, assisting our retailers to improve their own recycling practices, and Vicinity’s participation in the circular economy.

Inside and outside Vicinity;

Direct contribution and through our business relationships

Low carbon smart assets

Waste and recycling

10

Changes in consumer behaviour

Vicinity’s response to broader macroeconomic and business trends such as low wages growth and online retailing and its impact on consumer behaviour.

Outside Vicinity;

Through our business relationships

Community hubs

Community engagement 

2020 Annual Integrated Report (p. 10, 20, 24, 28-29, 30-31)

11

Corporate governance

Having a strong governance framework, ethics and conduct, including Board engagement. 

Inside Vicinity;

Direct contribution

Sustainability governance

Sustainability policies

Ethics and risk management

2020 Corporate Governance Statement

12

Transparency of disclosure

Disclosure of information in a transparent, relevant, understandable and comparable manner to build and protect stakeholder trust and reputation.

Inside and outside Vicinity;

Direct contribution and through our business relationships

Industry collaborations

Reporting and transparency

Sustainability reporting

2020 Corporate Governance Statement (p. 13)

13

Shareholder returns

Generating strong long-term returns for shareholders and focusing on ESG matters to appropriately manage business risks and take advantage of opportunities. 

Inside and outside Vicinity;

Direct contribution, through our operations and business relationships

2020 Annual Integrated Report (p. 10, 12-14, 16-18, 20-23, 73, 42-45)

Our Group Strategy

Sustainability strategy

2020 Corporate Governance Statement (p. 8)

14

Social cohesion and integration

Designing and operating our centres to promote greater accessibility, inclusion and social cohesion locally, and support this through our targeted community investment activities.

Inside and outside Vicinity;

Direct contribution, through our operations and business relationships

Community hubs

Investing in our communities

Our Innovate RAP

Community engagement

Procurement through social and Indigenous enterprises

15

An engaged workforce-innovative and collaborative culture

Attracting and retaining people with the appropriate capability and experience, fostering collaboration and maintaining their engagement levels to successfully deliver on Vicinity’s organisational strategy and future business needs.

Inside Vicinity;

Direct contribution

Our people and culture focus

Developing talent and capability

*Issues that have risen in prominence in external stakeholder interviews undertaken during FY20.