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 refreshed our 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.

The results of our materiality assessment are considered in the regular review process for Vicinity’s enterprise risk register and in our annual risk disclosure through our Annual Integrated Report.

The materiality assessment process is outlined below: 

Important issues for Vicinity

The figure below shows the list of material issues for Vicinity ranked in terms of priority for both Vicinity and its stakeholders, the most prominent of which are:

  • 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.

Our Sustainability approach focuses our efforts on our most material issues, where we have the greatest opportunity to create shared value for Vicinity and our 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 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

2018 Annual Integrated Report (p. 12, 22, 26, 31-39)

 

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 

2018 Annual Integrated Report (p. 22, 26, 31-34, 38-39)

 

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

 

2018 Annual Integrated Report  (p. 25, 38-39)

Community engagement – 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 and inclusion

Health and wellbeing

2018 Corporate Governance Statement (p. 12-14)

2018 Annual Integrated Report (p. 24, 40)

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

2018 Annual Integrated Report (p. 24)

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

2018 Annual Integrated Report (p. 22, 26, 31-34, 38-39)

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 

2018 Annual Integrated Report (12, 22, 31-35, 38-39)

11

Corporate governance

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

Inside Vicinity;

Direct contribution

Sustainability governance

Ethics and risk management

2018 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

2018 Corporate Governance Statement (p. 15)

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

2018 Annual Integrated Report  (12, 16, 22-25, 78, 48-51)

Our Group Strategy

Sustainability strategy

2018 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 Reflect RAP

Community engagement

Social procurement

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

Employee engagement