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.

We completed a formal materiality review in 2016 with internal and external stakeholders to identify our long-term economic, environmental and social sustainability risks.

The materiality assessment process is outlined below:

 

Identification

Validation and prioritisation

Strategy and reporting

  • Considered the outcomes of previous materiality reviews.
  • Engaged an independent consultant to review the latest external property, retail and consumer trends and consult a number of external stakeholders.
  • Internal workshop with a cross-functional group of senior leaders to validate and prioritise material issues for both Vicinity and our stakeholders.

 

 

  • Findings informed the focus of our Sustainability strategy, which was established in 2016, as well as our sustainability reporting.
  • Results were also integrated into Vicinity’s enterprise risk profile

 

Important issues for Vicinity

The figure below shows the prioritised list of material issues for Vicinity, as determined by our key internal and external stakeholders.

The most material issues for Vicinity broadly relate to how our business is equipped to adapt and respond to changing retail markets conditions, consumer behaviours and the physical environment.

Our Sustainability strategy is designed to focus on areas 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 Vicinity's involvement with impacts Our response
1 An engaged workforce An engaged and high performing workforce with the right skills and capability to deliver our strategy Inside Vicinity Direct contribution Creating a great place to work
2 Changes in consumer behaviours The agility and capacity to innovate and strategically respond to disruptive forces that impact consumer behaviours Inside and outside Vicinity Linked through business relationships Engaging with our communities
3 Changing market dynamics Managing business risks from economic and market trends that impact real estate, retail and consumer markets Inside and outside Vicinity Linked through business relationships 2017 Annual Report (page 18) 
4 Climate change resilience Creating a more climate-resilient portfolio to withstand long-term physical risks from climate change, support community resilience and energy security, and leverage commercial opportunities Inside and outside Vicinity Direct contribution  Climate resilience
5 Health and safety Managing the health, safety and wellbeing of employees, consumers, retailers and contractors, including emergency preparedness. Inside and outside Vicinity Direct contribution  Health and wellbeing, Focus on safety 
6 Understanding retailers Supporting retailers through shopping centre design and management and creating engaging consumer experiences for local communities to drive foot traffic Inside and outside Vicinity Direct contribution Partnering with our retailers
7 Supply chain impacts Mitigating the social and environmental impacts of our supply chain, and creating economic opportunities for local communities Inside and outside Vicinity Linked through operations and business relationships Working with our suppliers
8 Supporting local communities Community investment programs that deliver shared value for Vicinity and our communities, and proactively engaging in dialogue with the community Inside and outside Vicinity Direct contribution and linked through operations Shaping better communities
9 Changing government policy/regulations Impacts of changing government policy that may affect our financial success. Inside Vicinity Linked through operations Industry collaborations
10 Disclosure of information – transparency Open, timely, transparent and balanced communication of Vicinity’s approach and performance to key stakeholders Inside and outside Vicinity Direct contribution  Transparency to our investors, Engaging with our stakeholders
11 Energy and carbon emissions Managing the energy use and carbon emissions from our operations, and investing in energy efficiency initiatives and renewable energy Inside and outside Vicinity Direct contribution Low carbon smart assets, Sustainable operations
12 Waste management Managing waste from operations and construction to ensure responsible disposal and diversion from landfill Inside and outside Vicinity Direct contribution and linked through operations and business relationships Sustainable operations
13 Tax transparency Open and transparent disclosure of our management of tax affairs, compliance with tax laws and financial contribution to Australian society Inside and outside Vicinity Direct contribution  2017 Annual Report (page 40) 
14 Data privacy and confidentiality Reducing risks related to increased collection and storage of consumer data Inside and outside Vicinity Direct contribution and linked through operations and business relationships 2017 Annual Report (page 19) 
15 Strategic partnerships Engagement with strategic partners to ensure support for and alignment with Vicinity’s vision and strategy Inside and outside Vicinity Direct contribution  Engaging with our stakeholders