Page 1

Corporate Responsibility Report 2009

The Challenge of a

Sustainable

Business in

balance

Future

Disclaimer

REDEVCO Board Members This Redevco’s Corporate Responsibility Report is made for the purpose of informing our stakeholders and to give details of Redevco’s commitment and performance in the area of corporate responsibility. Nothing in this document is intended to extend or amend Redevco’s existing obligations to its tenants, shareholder or other stakeholders. All policies, procedures, guidelines, statements or anything similar that have been mentioned in this report, are intended for Redevco’s internal purposes only, and under no circumstance should they be construed as creating any rights whatsoever to third parties. In assessing compliance with any of the policies and guidelines, the standards applied are subjective and any decision in relation thereto remains within Redevco’s discretion. Redevco does not accept liability for whatever consequences may result from its not adhering to these policies, procedures, guidelines and statements at its discretion at any time and can, at its own discretion, decide to make available to third parties (details of ) policies, procedures, guidelines, statements or anything similar that have been mentioned in this report.

This report refers, by hyperlinks or other means to information provided by third parties. The reasonableness, accuracy or completeness of such information has not been verified by Redevco and links to other sites do not constitute Redevco’s approval or endorsement of such sites or their products or advertisements. Redevco accepts no liability whatsoever in connection with any such information that has been or will be provided by third parties.

Redevco B.V. Wibautstraat 224 1097 DN Amsterdam The Netherlands P.O. Box 94277 1090 GG Amsterdam T +31 (0) 20 599 6262 F +31 (0) 20 599 6263 E info@redevco.com

It is our pleasure to offer this Corporate Responsibility Report to all external and internal stakeholders who are interested in our social, ethical and environmental performance. We have made progress in the past few years. We are proud of our achievements so far. At the same time, we realise that a number of challenges still lie ahead. That is why we have defined additional and further-reaching objectives for 2010 and beyond. As a company with strong values, we want to involve our stakeholders closely in achieving these objectives to create better retail environments for future generations. Our first Corporate Responsibility Report on our activities in 2008 received positive feedback. This prompted us to report on our non-financial performance this year as well, rather than waiting until 2010. We hope you will find this report interesting and challenging. We welcome any feedback you might have. Indeed, listening to our stakeholders is an integral part of our Corporate Responsibility Policy.

www.redevco.com This brochure is printed on TOP10 Green Gloss paper 100% post-consumer FSC Recylced certified fibres and PCF (Process Chlorine Free). Amsterdam, September 2010 Realized by: Mobile Generation www.mobgen.com

Dominic Brenninkmeyer Chairman


Business in

balance

REDEVCO Board Members

How to read this report: The scope of this report is our performance on Corporate Responsibility (CR) issues in 2009.

It is our pleasure to offer this Corporate Responsibility report to all external and internal stakeholders who are interested in our social, ethical and environmental performance. We have made progress in the past few years. We are proud of our achievements so far. At the same time, we realise that a number of challenges still lie ahead. That is why we have defined additional and further-reaching objectives for 2010 and beyond. As a company with strong values, we want to involve our stakeholders closely in achieving these objectives to create better retail environments for future generations. Our first Corporate Responsibility report on our activities in 2008 received positive feedback. This prompted us to report on our non-financial performance this year as well, rather than waiting until 2010. We hope you will find this report interesting and challenging. We welcome any feedback you might have. Indeed, listening to our stakeholders is an integral part of our Corporate Responsibility policy.

Dominic Brenninkmeyer Chairman

The report consists of four main chapters describing firstly Redevco’s business activities and CR priorities, secondly our approach, thirdly how Redevco is addressing CR issues, and finally how we engage with our key stakeholders. On each issue we report what we set out to do in 2008 for the year 2009, and then describe what we achieved. We conclude the section with a statement from a stakeholder and list what we aim to do in 2010 and beyond. In the annexes you will find details about the data collection methodology and a quality statement. For more details of our Corporate Responsibility programme, please visit our website: www.redevco.com/cr

This report is also available for iPad, iPhone and iPod Touch.


Business

Corporate Responsibility Report 2009

in

balance

CHINA - Wuhan

Wuhan Tiandi Riverview Plaza, strategic partnership with Shui On Land, kicked off BREEAM assessment

BELGIUM - Antwerp Meir, redevelopment has started in 2010 (Listed Building)

THE NETHERLANDS - Rotterdam The HUF building, redeveloped in 2009 (Listed Building)

GERMANY - Mainz

How to read this report:

C&A Eco-Store, BREEAM Certificate ‘Very Good’

UNITED KINGDOM - Glasgow

Princes Square, redevelopment has started in 2010 (Listed Building)

The scope of this report is our performance on Corporate Responsibility (CR) issues in 2009. The report consists of four main chapters describing firstly Redevco’s business activities and CR priorities, secondly our approach, thirdly how Redevco is addressing CR issues, and finally how we engage with our key stakeholders. On each issue we report what we set out to do in 2008 for the year 2009, and then describe what we achieved. We conclude the section with a statement from a stakeholder and list what we aim to do in 2010 and beyond. In the annexes you will find details about the data collection methodology and a quality statement. For more details of our Corporate Responsibility programme, please visit our website: www.redevco.com/cr

UNITED KINGDOM - London

Connaught Place, BREEAM Certificate ‘Very Good’ and BREEAM Certificate Eco-Homes ‘Good’

SPAIN - Guadelajara

Implementation of a water drainage system

TURKEY - Ezurum

2

CONTENTS

3

ADDRESSING THE IMPACT OF OUR BUSINESS

4

OUR BUSINESS ACTIVITIES

6

A YOUNG ORGANISATION WITH A RICH HISTORY

6

CORPORATE RESPONSIBILITY ISSUES IN THE REAL ESTATE SECTOR

8

OUR CORPORATE RESPONSIBILITY APPROACH

8

CORPORATE RESPONSIBILITY ORGANISATION

8

REDEVCO’S CORPORATE RESPONSIBILITY MANAGEMENT FRAMEWORK

9

CORPORATE RESPONSIBILITY PRIORITIES

10

CORPORATE RESPONSIBILITY ISSUES IN THE REAL ESTATE SECTOR

10

ENERGY USE AND CO 2 EMISSIONS

12

WATER USE

20

LISTED BUILDINGS & PROTECTING CULTURAL HERITAGE

24

BUSINESS INTEGRITY

28

SUPPORTING LOCAL COMMUNITIES

30

EMERGING CORPORATE RESPONSIBILITY ISSUES

36

Listening to AND learning from our key stakeholders

42

EMPLOYEES – BEING A RESPONSIBLE AND PREFERRED EMPLOYER

43

TENANTS – GREEN LEASES

45

SUPPLIERS – SOURCING RESPONSIBLY

49

Ezurum Shopping Center: BREEAM Certificate ‘Very Good’

This is a selection of the sustainable properties in Redevco’s portfolio. These properties have been awarded with BREEAM certificates or have been redeveloped by Redevco in 2009. TURKEY - Ankara

Global Reporting Initiative (GRI) Application Level Check

Gordion Shopping Center: BREEAM Certificate ‘Very Good’

The Global Reporting Initiative (GRI) is a network-based organization who has developed international standards for sustainability reporting. There are three different levels (A, B and C), and these can be self-declared by a reporting organization, checked by a third party or checked by GRI.

2002 C C+ B B+ A A+

CRI Checked

Report Externally Assured

Third Party Cheked

Report Externally Assured

Self Declared

In Accordance

Report Externally Assured

Mandatory

The GRI 3 principles and recommendations were taken into account for the writing of this report. GRI has performed the Application Level Check to show to which extent the GRI guidelines have been utilized in the report. The check confirmed the self-declared B Level. The complete GRI indicators table can be found on the Redevco website www.redevco.com/cr

Optional

This report is also available for iPad, iPhone and iPod Touch.

BUSINESS IN BALANCE

SHAREHOLDER – CLOSE COOPERATION

49

SOCIETY AT LARGE – BEING A RESPONSIBLE CORPORATE CITIZEN

50

ANNEXES

52

ABOUT THIS REPORT – DATA COVERAGE AND QUALITY

52


Corporate Responsibility Report 2009 CHINA - Wuhan

Wuhan Tiandi Riverview Plaza, strategic partnership with Shui On Land, kicked off BREEAM assessment

TURKEY - Erzurum

Erzurum Shopping Center: BREEAM Certificate ‘Very Good’

TURKEY - Ankara

Gordion Shopping Center: BREEAM Certificate ‘Very Good’

BUSINESS IN BALANCE

2

CONTENTS

3

ADDRESSING THE IMPACT OF OUR BUSINESS

4

OUR BUSINESS ACTIVITIES

6

A YOUNG ORGANISATION WITH A RICH HISTORY

6

OUR CORPORATE RESPONSIBILITY APPROACH

8

CORPORATE RESPONSIBILITY ORGANISATION

8

REDEVCO’S CORPORATE RESPONSIBILITY MANAGEMENT FRAMEWORK

9

CORPORATE RESPONSIBILITY PRIORITIES

10

CORPORATE RESPONSIBILITY ISSUES IN THE REAL ESTATE SECTOR

10

ENERGY USE AND CO 2 EMISSIONS

12

WATER USE

20

LISTED BUILDINGS & CULTURAL HERITAGE

24

BUSINESS INTEGRITY

28

SUPPORTING LOCAL COMMUNITIES

30

EMERGING CORPORATE RESPONSIBILITY ISSUES

36

Listening to AND learning from our key stakeholders

42

EMPLOYEES – BEING A RESPONSIBLE AND PREFERRED EMPLOYER

43

TENANTS – GREEN LEASES

46

SUPPLIERS – SOURCING RESPONSIBLY

49

SHAREHOLDER – CLOSE COOPERATION

49

SOCIETY AT LARGE – BEING A RESPONSIBLE CORPORATE CITIZEN

50

ANNEXES

52

ABOUT THIS REPORT – DATA COVERAGE AND QUALITY

52


Addressing

impact the

Business

of our

Our achievements The real estate business is constantly changing, and so is the economic, social and environmental landscape of companies active in this sector. This constant flux creates an extra challenge to us in upholding our core value, which is keeping business in balance with our surroundings. The importance of socially responsible entrepreneurship and integrity in business is summarised by our key principle, ‘Business in Balance’. ‘Business in Balance’ means strengthening the positive impact of our activities on society as a whole while reducing any negative effects. People and their surroundings are inseparably linked, in our view. So we do not just meet the minimum legal requirement. Our aspirations reach further; where possible we try to stay ahead of the regulations. As an international company we aim to have our projects conform to the most stringent laws and regulations, even in countries where the prescripts are less strict.

Listening and learning We recognise that we cannot address the impact of our business on our own. We therefore seek close cooperation with our clients and partners. To engage our stakeholders we must ‘listen and learn’. That is why we are developing an elaborate reporting and communication framework for dialogue with external and internal parties. Engaging with tenants is a particularly important aspect of this.

4

Redevco Corporate Responsibility Report 2009

We are pleased to confirm that 2009 was a year of many successes. These were our key achievements: • •

• •

We increased the energy data coverage on Redevco’s investment portfolio from 28% to 66%. Two development projects in Turkey - in Erzurum and Ankara - were awarded a BREEAM ‘Very Good’ certificate. A development project in the United Kingdom, - in London – was awarded two BREEAM certificates, one rated ‘Good’ and one rated ‘Very Good’. Redevco participated in various focus groups, such as the Sustainability Taskforce of the IVBN (Dutch Association of Institutional Property Investors), the Board and the Advisory Group of the Dutch Green Building Council and the ICSC EU Public Affairs Committee. Around 30 of our employees completed an internal BREEAM Awareness Training. Redevco conducted a Hay survey, which yielded an overall good result.


Our challenges Corporate Responsibility is an ongoing process, and we cannot rest on our laurels. There is still a lot of work to be done before we reach a satisfactory standard. Among the challenges facing us for the years to come are the following: •

• • •

Our biggest challenge remains that of integrating Corporate Responsibility into our day-to-day business. Senior management across the company are committed to embedding our Corporate Responsibility priorities as a central part of decision-making. We will be focusing in the coming years on formulating clear objectives, setting targets and developing procedures at the country level, in close cooperation with our local offices. They know best what is feasible and what is required. There is still room to improve data quality and coverage. One of the problems we have to solve is the uncertainty that arises when different sources report different data for the same asset. We must develop a responsible sourcing policy both at corporate and local level to ensure that our purchasing fully considers environmental and social issues. We aim to review supplier contracts over the coming years. Developing and structuring our stakeholder engagement, especially as regards our tenants, is a challenging process, requiring a step-by-step approach.

In 2010 and 2011 we will set targets to further integrate our long-term Corporate Responsibility objectives with our business goals. As well as setting targets, raising awareness and prioritising, it is essential to set a Corporate Responsibility agenda. This must include the topics affecting our company, and the ways in which we will deal with them. As stated above, we cannot address the impact of our business on our own. That is why we seek cooperation and are making a great effort to engage our stakeholders. You, as a reader of this report, are likely one of our stakeholders – a tenant, supplier, employee or just a member of society interested in our activities. We would appreciate your engagement through feedback on our efforts to keep our business in balance. You can find the evaluation form on our website www.redevco.com/cr.

On behalf of the Board Jaap G. Blokhuis, CEO

Redevco Corporate Responsibility Report 2009

5


business activities

Our

Investment and development Redevco’s principal activity is managing an investment portfolio of retail properties and developing new retail projects. Retail properties account for around 90 per cent of our portfolio, which consists of prime retail properties on A1 locations in the centres of major cities. Our main tenants are C&A, Carrefour, Maxeda, Primark, LVMH (Sephora), H&M, GAP, Next, Metro, Dinosol Supermercados, Inditex and Birkart. See the figures below and www.redevco.com for further information.

A young organisation with a rich history

Our investment activities involve the active and professional management of our assets with a view to optimising the return on our investment. Redevco pursues a longterm strategy. Creating value for all our stakeholders, governments, consumers, tenants and shareholders is a central consideration in everything we do.

Redevco is an independent, international real estate company managing and developing one of the largest retail portfolios in Europe. The portfolio was valued at â‚Ź 7.2 billion at the end of 2009 and comprised over 750 properties at top locations in 19 countries. We have also started operating in Asia, where we are building up a retail portfolio in the larger metropolitan areas, with a focus on China. It is our ambition to develop Asia as our second home market.

Project development has become an integral element of our real estate activities. Our main focus is on retail-related projects that enable us to respond even more effectively to the needs of international clients. We develop real estate ourselves and in principle remain involved in our projects for many years. This enables us to make our knowledge and expertise available to our clients along the entire value chain.

It is Redevco’s business to offer the right type of retail space to the market and to create sustainable retail solutions in urban environments that are inspiring and will appeal to future generations. Our main focus is city-centre retail, but we develop and invest in retail parks and shopping centres as well.

All of our new development projects are assessed against international green building standards, so that we can be sure of best practice in sustainable design. In addition, we want to comply with or stay ahead of all legislation that relates to our activities.

8 7 6 5 4

Portfolio in billions

3

Year

2 1 0 1999

2000

2001

2002

2003

2004

Portfolio growth up to 31.12.2009

6

Redevco Corporate Responsibility Report 2009

2005

2006

2007

2008

2009


PR & Corporate Communications

Tax

Redevco Concepts & Sustainability

Legal

Information Technology

Poland

Hungary

Czech Republic

Slovakia

MD

Austria

China

MD

Luxembourg

Belgium

MD

Switzerland

France

MD

MD

MD

The Netherlands

Finance

Italy

Portugal

Spain

Germany

Human Resources

MD MD

MD

Finland

Sweden

United Kingdom

MD MD

Research

Turkey

REDEVCO BOARD

Company structure Redevco has a decentralised organisational structure with offices in the countries we operate in. The structure reflects the fact that market conditions vary from country to country and real estate is very much a local business. The activities in the different countries are supported at the strategic level by the Redevco Head Office in Amsterdam, which coordinates all Redevco’s international operations.

ITALY – Bari

Total (Cofra)

Retail (incl. Development)

Offices

Industrial

Other

100%

80%

60%

40%

20%

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Tenant and sector spread up to 31.12.2009

Redevco Corporate Responsibility Report 2009

7


Our Corporate business Our activities& Responsibility approach Corporate Responsibility priorities

Corporate Responsibility organisation Corporate Responsibility working group Redevco believes that Corporate Responsibility can best be embedded in the organisation through the businesses rather than by appointing a separate director for Corporate Responsibility. In our decentralised organisation most activities are managed locally, although strategy on certain issues is determined at corporate level. Accordingly, we delegate the local management of our Corporate Responsibility activities to the Managing Directors. They are supported by the Corporate Responsibility Working Group (WG), which reports to the Board. We believe that this approach works best in the long run in fostering genuine commitment to the principles of Corporate Responsibility. The focus of the Redevco Corporate Responsibility WG in 2009 was on getting Corporate Responsibility up and running in the organisation. Our main challenge is to integrate Corporate Responsibility into daily business operations, a process that takes time. In the short term, the Corporate Responsibility WG is making intensive efforts to raise awareness, set targets, establish priorities, formulate procedures and support the Board and Managing Directors in setting the agenda for Corporate Responsibility.

Targeted working groups In 2009 the Corporate Responsibility WG established the following targeted and issue-specific working groups: • • • •

Green Leases WG Corporate Giving WG Stakeholder Engagement WG Green IT WG

In 2010 new working groups will be established (e.g. Responsible Sourcing WG). Working groups may be dissolved once their specific task has been completed.

Redevco Board (5 people)

Redevcoʼs Corporate Responsibility Committee (3 people) Director Human Resources Head of PR & Corporate Communications Manager Sustainability, Energy & Environment

Redevco Region (Managing Directors, 9 people)

Data Handlers (9 people)

Hierarchy

8

Redevco Corporate Responsibility Report 2009

Functional Cooperation


Redevco’s Corporate Responsibility management framework Redevco’s Corporate Responsibility management framework aims at a continuous improvement process focusing on strengthening the positive impact of our activities on society while reducing their negative effects. It should ensure that we stay ahead of existing and impending legal requirements. Through a process of stakeholder engagement and desk research Redevco identifies Corporate Responsibility priorities (see ‘Corporate Responsibility issues in the real estate sector’, page 10/11). Ideally, objectives and targets are defined for each issue. Then data is gathered to measure our performance against predefined performance indicators and reported. When new issues are introduced, we first track performance prior to setting targets and reporting. Supporting local communities and listed building & cultural heritage have been approached in this way. The challenge is to align locally and regionally formulated objectives with Head Office and vice versa. We want to support a bottom-up approach with clear principles and scope by setting general targets and objectives, leaving room for local interpretation and implementation. To increase robustness of the management framework it is important to increase our data quality and coverage. Through audits, internal at first and then by a third party, we will increase commitment and reliability, as well as the quality of our data. More information on this can be found in the annex.

Stakeholder engagement To get into a dialogue with our stakeholders we must first develop a reporting and communication framework as explained in the section entitled ‘Listening to and learning from our key stakeholders’. This format will be the basis for clear and effective reporting for the coming years. The development of a structured stakeholder dialogue has started and will be explored further in 2010. Engaging with tenants as one of our main stakeholder groups is especially important here. We will start this challenging process in a step-bystep approach involving small pilots with tenants in 2010.

Corporate Responsibility issues

Management process steps

Corporate Responsibility Key Principles

Energy use and CO2 emissions Water use Listed buildings & cultural heritage Business integrity

Objectives & targets

Gathering data & measuring Corporate Responsibility performance indicators

Non conformities/ corrective and preventive actions

Internal audit

Annual review & progress reporting

Supporting local communities Emerging Corporate Responsibility issues

Redevco Corporate Responsibility Report 2009

9


Corporate

Responsibility

priorities

Corporate Responsibility issues in the real estate sector

Energy use and CO2 emissions (page 12 to 19)

Reducing energy demand and CO2 emissions caused by human activity is a major challenge worldwide. For an international real estate investor and developer like Redevco, energy use and the associated CO2 emissions is a key environmental issue. Buildings account for more than 40% of global energy demand and 30% of the world’s carbon emissions. This fact has been recognised by the European Commission, which has adopted a binding target that renewable energy should account for 20% of energy consumption by 2020. Other targets that have been adopted are a 20% increase in energy efficiency and a 20% reduction in greenhouse gas emissions. Accordingly, the forthcoming EU Energy Performance of Buildings Directive will require that all new buildings must be ‘nearly zero energy’ by 2020. Since the vast majority of existing buildings will still be standing in 2020, the existing built environment is key to the success of the EU objective of reducing carbon emissions. Furthermore, climate change may affect the buildings we own, so we need to adapt them to more extreme weather patterns, more frequent flooding and so on.

Water use (page 20 to 23)

Water scarcity and droughts affect many parts of Europe. Climate change and population growth are predicted to exacerbate water problems in many regions. The European Union has recognised the acuteness of water scarcity and drought challenges. The Commission is exploring ways in which the European Union can address these. A number of assumptions were made in the Commission Work Programme 2010, including a Directive on Water Efficiency of Buildings. The potential for water savings in the EU is estimated at 40%. Binding rules could be envisaged to promote water savings in public and private buildings. As part of this process the Commission is considering developing water efficiency labelling schemes for products such as taps and showers, the inclusion of water-saving standards in national building regulations and efforts to encourage the re-use of grey water (roof water) to flush toilets or water gardens. As a developer, Redevco can ensure that water-efficient appliances, remote water metering and detection systems for major leaks are specified and installed in the buildings it develops. As a large owner of retail properties, Redevco can influence its occupiers to use water sparingly.

Listed buildings & cultural heritage (page 24 to 27)

As of this year Redevco will pay special attention to the listed and architecturally protected buildings in its portfolio, for several reasons. Redevco’s main focus is on city-centre retail and many of these properties are historic buildings in unique cultural environments. In economic terms these buildings represent a value of € 533 million, which is more than 7.5% of Redevco’s investment portfolio. From a social perspective, these buildings have an architectural singularity, represent the physical survival of our past, and have cultural value. The challenge is to balance the protection of our inheritance from past generations with the environmental needs of today that will affect generations to come.

10

Redevco Corporate Responsibility Report 2009


Business integrity (page 28 to 29)

For Redevco the principle of ‘Business in Balance’ implies doing business in an ethical manner. From the start of our company this has been the keystone of our values, culture, business strategy and actions. Integrity is particularly relevant in our business sector – real estate. Our emphasis on ethical behaviour and business integrity is manifest in our openness to feedback from external and internal stakeholders, in our treatment of these stakeholders and the environment with respect, and in our clear and honest communications. Human rights, in terms of labour conditions and gender diversity, are another aspect of business integrity policy. So far we have addressed this issue implicitly, with human rights issues being managed by our Human Resources department. From now on we intend to make this topic more explicit, and will include it in the objectives for coming years.

Supporting local communities (page 30 to 35)

Companies do not operate in a vacuum, but in an exchange with their surroundings, including local communities. Through their buildings, real estate companies contribute directly to the quality of the local community and vice versa. Redevco has been involved in local communities by participating in committees and stimulating the sharing of knowledge and expertise that benefit the community at large and the sector in general. In addition to benefitting society through our business activities, we support many educational, health and cultural projects, and projects to help the homeless. We believe that, with the resources at our disposal, we have a duty to actively contribute to improving the quality of local communities. Our contribution to local communities is in line with the current shift from pure ‘giving’ to ‘making an impact’. Redevco wants to make an impact that will create value for the community and have a positive effect on the company and its employees as well.

Emerging Corporate Responsibility issues (page 36 to 41)

Emerging Corporate Responsibility issues include other environmental issues for the real estate sector derived from internally recognised green building rating systems such as BREEAM. In addition to water and energy, a BREEAM assessment includes aspects like transport, waste, materials, health & wellbeing, management, land use & ecology, and pollution. Further information on these issues can be obtained at www.breeam.org. Through stakeholder engagement we aim to keep track of emerging issues relevant for the real estate sector in general and Redevco in particular.

The following chapters describe in detail the type of action we have undertaken in response to each issue. They also set out our objectives for each issue for the coming years.

Redevco Corporate Responsibility Report 2009

11


Energy use

and CO2 emissions

The biggest opportunity to address our environmental impact lies in better management of energy use and CO2 emissions of the building stock in our portfolio. We are committed to staying ahead of new legislative requirements on the energy performance of buildings. We realise that we cannot reduce energy consumption and CO2 emissions in isolation, as to a large extent we share our responsibility in this area with our tenants. Our tenants are accountable for the vast majority of energy use and CO2 emissions in our investment portfolio. We have also started to focus on activities we can influence directly, like the way we commute and travel for business, and the energy use and carbon footprint of the offices occupied by Redevco itself.

What we set out to do in 2009

Status

Review the company car policy with a view to reducing the average carbon emissions per kilometre caused by Redevco’s car fleet

Achieved

Analyse and review video conferencing pilot in Amsterdam, Istanbul and Hong Kong, and identify actions

Achieved

Obtain Energy Performance Certificates for all EU properties by 2012

In progress

Develop climate change risk assessment for all assets

Not started

Explore opportunities to install more energy-efficient equipment

In progress

Perform annual review of energy issues in Redevco’s Programme of Requirements for development of new shopping centres

12

Redevco Corporate Responsibility Report 2009

Achieved


Reduce CO2 emission per employee by

30%

in 2020.

Investment portfolio: lower energy use and CO2 emissions The total energy consumption of buildings owned by Redevco is estimated at 1,046 GWh, while the associated emissions amount to 404,000 tonnes of CO2e or 89 kg CO2e/m2 GLA. In 2009 the like-for-like energy usage of Redevco’s investment portfolio declined from 168 to 164 kWh/m2 GLA. This corresponds to a decline in carbon emissions from 81 to 80 kg CO2e/m2 GLA. In 2011, Redevco will define medium- and long-term targets towards 2015 and 2020 regarding energy use and CO2 emissions in the investment portfolio, with a 3-year average (2008 – 2010) as the baseline. In the meantime we will continue to implement measures yielding further improvements.

Energy efficiency

Carbon intensity

2008

2009

2008 - Like-for-like

2009 - Like-for-like

Industrial

2009 2009 - Like-for-like

Industrial

Office

Office

Asset Class

Asset Class

2008 2008 - Like-for-like

Retail Box/Park/Supermarket

Retail High Street

Retail Shopping Centre

Retail Box/Park/Supermarket

Retail High Street

Retail Shopping Centre

Redevco’s Investment Portolio

Redevco’s Investment Portolio 0

50

100

150

200

250

300

Energy efficiency (kWh/m2 )

0

20

40

60

80

100

120

Carbon intensity (kgCO2e/m2)

For details on the methodology and parameters, see annex.

Redevco Corporate Responsibility Report 2009

13


Energy use

and CO2 emissions

TURKEY - Ankara, absorption chiller, generates cooling using waste heat – as part of a tri-generation system.

Increased on-site energy generation Prompted by pending EU legislation, over time real estate properties will become energy-producing units within a decentralised energy network. In order to monitor this trend and assess its own performance in this area, Redevco collects data regarding on-site energy generation. In 2009 the volume of energy generated on-site increased from 1,368 to 7,495 MWh. Some of the assets produced energy year-round (e.g. Mainz), while others began production in the course of 2009 (including Ankara and Erzurum). Energy generated on-site is expected to increase further over the next few years. As of 2010 Redevco will proactively manage on-site generation, aiming to increase the share to 10% of total energy consumption in Redevco’s investment portfolio by 2020. In 2008 and 2009 this share was 0.2% and 0.7% respectively. To achieve the 2020 target, on-site energy generation for new developments must be maximised to an economically feasible level. This was achieved in the recently completed centres in Turkey by incorporating tri-generation systems, resulting in lower CO2 emissions than for any other shopping centre in Turkey. In the Connaught Place development, the primary heating and cooling is provided by ground source heat pumps. An open loop system abstracts ground water from the subterranean aquifer. The water is used in the heating and cooling process and is then injected back into the aquifer.

Energy generated on-site

Share energy produced on-site 12%

10% 2008

2009

8%

Total generated on-site

Share Energy Produced On-site

6%

Low Carbon technologies (requiring imports)

Renewable technologies (not requiring imports of fossil fuels) 0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Energy generated on-site (MWh)

14

Redevco Corporate Responsibility Report 2009

4%

2%

0% 2008 Year

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020


181 new energy performance certificates As required by the EU Energy Performance of Buildings Directive, Redevco has continued to obtain Energy Performance Certificates (EPCs). In 2009 the number of EPCs it secured rose from 79 to 260. Of these 260 certificates, 179 (69%) are rated A, B or C, or perform better than reference. Redevco is working to obtain EPCs for all its properties in EU countries by 2012. In addition, Redevco formulated a new target for the share of green labels (A, B, C or better than reference). Its aim is to increase this share to 80% (by number of required certificates) in the EU by 2015. To this end, the national Redevco organisations will be invited to develop Environmental Improvement and Action Plans for properties performing worse than A, B or C. When it was amending the Energy Performance of Buildings Directive, the EU decided not to harmonise the EPCs. However, the amended Directive is expected to be accompanied by a voluntary common EU certification scheme to be developed by 2011. Redevco supports this move as it will make it easier to compare performance over countries. Listed buildings - Energy Performance Certificates

Listed buildings - Energy Performance Certificates

Energy performance certificates 2008 G: 6%

Energy performance certificates 2009 F: 4%G: 4% A: 7%

A: 6% E: 8%

B: 11%

B: 8%

F: 17%

E: 6%

D: 26% C: 44%

C: 33%

D: 22%

A

B

C

D

E

F

A

G

B

Better than reference

Worse than reference

3

0

1

Equal to reference

0

0

0

Better than reference

19

0

38

Worse than reference

Electricity

Electricity

Equal to reference

D

E

F

G

Heating

Heating Worse than reference

C

Equal to reference

Better than reference

Worse than reference

9

0

22

Equal to reference

1

0

0

Better than reference

24

0

57

BREEAM Performance new developments on energy In 2009 two BREEAM certificates were awarded to completed developments in Turkey. Both developments achieved a BREEAM ‘Very Good’. The Gordion Shopping Center in Ankara and the centre in Erzurum scored 72% and 64% respectively for energy. In the UK the property at 1-3 Connaught Place in London was also certified ‘Very Good’ by BREEAM, scoring 33.33% on energy use. 4 Connaught Place Eco-homes was rated ‘Good’ by BREEAM with a score of 29.2%. The study encompasses the environmental, legal and economic aspects of different concepts and the aim is to reduce energy demand and associated carbon emissions. The preferred energy concept will be selected on the basis of this feasibility study.

Redevco Corporate Responsibility Report 2009

15


Energy use

and CO2 emissions

Better understanding of performance of Redevco-occupied offices The extrapolated energy use at Redevco-occupied offices rose from 1,191,063 kWh in 2008 to 1,761,612 kWh in 2009. The increase is due to the mall management offices in the new shopping centres in Turkey and the offices in China and India (which were occupied for a full year this year). In 2009 the energy efficiency of Redevco-occupied offices was 183 kWh/m2 and the associated carbon intensity 76 kgCO2e/m2. Given our expansion in regions with a national energy mix yielding higher CO2 emissions it will be a challenge to reduce the CO2 emissions for Redevco-occupied offices. As we mostly rent our offices from third parties, we understand how important it is that the landlord is willing to cooperate. We plan to conduct a Green IT scan and explore energy-saving measures relating to all IT. In addition, Redevco Head Office will review its lighting system.

Business & commuter travel: we ­travelled more but more sustainably

Business and commuter travel (%) 2008

2009

30%

In 2009, Redevco employees travelled 31,012 kilometres per employee (2008: 30,791 km). Figure “Business and Commuter Travel (%)” provides a breakdown of the total distance travelled per mode of transport. The share of public transport and walking/cycling in the total distance travelled increased from 11% to 16%. Emissions from cars owned and leased by Redevco declined from 171 grams/km to 169 grams/km. Redevco reformulated its company car policy with the aim of further reducing carbon emissions associated with its car fleet. Whereas employees were formerly encouraged to lease more energy-efficient cars by awarding a higher budget for cars with an A, B or C energy label, they are now allowed to lease only cars in these categories. Since energy labels for cars are not used in all the countries where Redevco has a foothold, the company car policy will be reviewed in 2010 to facilitate an international roll-out that will cap the emission rate of new company cars. It is proposed that this cap be subject to an annual depreciation factor for subsequent years. Due to the length of lease contracts, it will be possible to measure the effect of a stricter car policy only after a few years.

25% 20% 15% 10% 5% 0% Air Domestic

Air Short-haul

GERMANY - Mainz, C&A Eco-Store

16

Redevco Corporate Responsibility Report 2009

Air Long-haul (business class)

Business Owned/lease Private car / Owned/lease Walk/cycle cars motorcycle cars Travel Rail (excl. (commuting commuter only) travel)

Public transport


GERMANY - Mainz, C&A Eco-Store

Redevco aspires to be carbon neutral Since 2006 Redevco’s policy has been to voluntarily offset the residual carbon emissions relating to corporate activities by purchasing voluntary emission rights (VERs). In 2010 Redevco used the Gold Standard VERs it acquired to offset its corporate emissions in 2009 for a project involving the installation of a landfill gas (LFG) collection system and an electricity generator at a landfill site near the Turkish capital of Ankara. The site receives approximately 3,500 tonnes of municipal solid waste every day from around 3.6 million inhabitants in the Ankara Greater Municipality, including waste from the Gordion Shopping Center. Prior to the project’s realisation, the landfill site was emitting huge quantities of methane gas directly into the atmosphere. Within the scope of the project, an LFG collection system was installed and the gas recovered is now used to fuel several electricity generators at the site. Emission reductions are achieved through the combustion of the methane that is collected and displacement of grid electricity produced by fossil fuel based plants.

CO2 emission account

%

2008 kgCO2e

Business Travel

%

2009 kgCO2e

Air - Domestic

55.805

3%

76.107

Air - Short-haul

257.846

13%

183.874

9%

Air - Long-haul (business class)

375.131

19%

313.522

15%

Business Travel Air - subtotal

688.782

Business Travel Rail Owned/lease cars (excl. commuter travel) Total Emissions Business Travel

36%

4%

573.502

28%

15.907

1%

12.315

1%

444.302

23%

393.936

19%

1.148.991

60%

979.753

48%

Commuter Travel Private car/motor cycle

61.168

3%

68.217

3%

Owned/lease car (excl. business travel and other)

152.109

8%

209.836

10%

Walk/cycle

0

0%

0

0%

Public transport

34.969

2%

50.710

Total Emissions Commuter Travel

2%

248.247

13%

328.763

16%

531.038

28%

732.139

36%

Office Energy Use Energy Use occupied offices Total Corporate Emissions Before Offsetting

1.928.276

100%

2.040.656

100%

Aversion and Offsetting Averted Emissions through purchasing at green tariff

0

0

Purchased Voluntary Emission Rights (VERs)

1.933.000

2.041.000

Total Averted and Offset Total Corporate Emissions After Offsetting

1.933.000

2.041.000

- 4.724

- 344

Redevco Corporate Responsibility Report 2009

17


Energy use

and CO2 emissions All of the projects exemplify originality and functionality as well as particularly high energy efficiency. One of the aims of our competition is to sensitise developers and architects to the issue of energy efficiency. We will award ‘Prom of the Year’ to owners and architects who develop ecologically innovative yet economically viable solutions in the area of energy-efficient commercial real estate.

Statement from a key stakeholder

Prom of the Year Award, Mainz

Dr. Knut Zschiedrich RWE Energy’s Head of Sales

Video-conferencing facilities installed at 5 locations After a successful pilot project in 2009, we acquired video-conferencing facilities for our offices in Amsterdam, Istanbul and Hong Kong. A video-conferencing system was installed in the newly opened shopping centres in Ankara and Erzurum. In Vienna, Düsseldorf and Zug, we have access to COFRA Holding AG’s video-conferencing system. As a result, business travel by air (short-haul and long-haul) declined by 25%. However, we realise that a lower level of business activity may also have contributed to this reduction.

Reduced carbon emissions per employee

CO2 emission account 8,000 7,000 6,000

30% reduction

5,000 kgCO2 emissions per employee

As of 2009 Redevco introduced a new performance indicator to monitor carbon emissions related to energy use of offices occupied by Redevco, company lease/owned cars and air travel. In 2009 the CO2 emissions per employee were 6,917 kg. Our target is to cut this by 30% in 2020. We realise that this will be a challenge, especially if we open more offices in countries with high emission factors like in China.

4,000 3,000 2,000 1,000 0 2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Year Energy use redevco offices

Lease cars

Air travel

Other

Case study

FRANCE: business and commuter travel In France fewer business flights took place. A reduction of approximately 30% was achieved for national flights and 70% for international flights compared to 2008. For commutes of less than 3 hours per day a reduction of 70% was achieved. Less use was made of taxis and car rentals through the voluntary use of Vélib – a self-service bicycle subscription scheme – for business appointments. Redevco France uses a bicycle courier service and has set up a Prius carpool for internal needs.

18

Redevco Corporate Responsibility Report 2009

2020


Objective/targets/actions

By When

Reduce CO2 emissions per employee by 30%, aiming at 4,842 kgCO2/employee

2020

Obtain Energy Performance Certificates for all EU properties

2012

Increase the share of green certificates (A, B, C or better than reference) to 80% (by number of required certificates) in EU countries

2015

Increase share of on-site energy production to 10% of total energy consumption in Redevco’s portfolio

2020

Offset our residual carbon emissions

Annually

Develop climate change risk assessment for all assets

2012

Calculate 3-year average of energy efficiency and carbon intensity for the investment portfolio and formulate a 2020 target per asset class by country

2011

Reporting our energy consumption and working with our tenants - the actual consumers of the energy - to achieve carbon savings and efficiencies where possible

2010

Conclude study on low- and zero-carbon technology systems for the Wuhan Tiandi Riverview Plaza, China

2010

Conduct annual commuting survey among employees

Annually

Review company car policy with a view to reducing average carbon emissions per km from Redevco’s car fleet

2010

Explore feasibility of extending video-conference facilities e.g. Spain

2010

Explore opportunities to install more energy-efficient equipment e.g. review lighting system at Redevco Head Office

2010

Redevco’s Corporate IT Department will carry out a Green IT scan. Equipment will be examined to identify ways of reducing the environmental impact and cutting costs

2010

Germany Specific measures to save energy and raise awareness among colleagues are being implemented in the Redevco office UK Conduct feasibility study to reduce environmental impact of Redevco UK office UK Improve standing of Redevco UK in the Carbon Reduction Commitment (CRC) league table, to be set up in April 2010 Spain Reduce air travel and increase travel by train

2010/2011

2010

Annually

Starting 2010

Redevco Corporate Responsibility Report 2009

19


Wateruse Water is often undervalued. Fresh water is frequently wasted even though it is becoming an increasingly scarce global resource. Due to climate change, more and more countries may place temporary limits on water use in order to prevent overuse during dry seasons. After energy production and agriculture, water-using products in buildings are among the most important uses of water in terms of total water abstraction. However, it is important to note that water use in buildings appears to vary widely across Europe as the water source, living conditions, and water supply systems differ a lot between countries. Water-using products in retail properties include toilets, urinals, taps, washing machines, dishwashers, ice makers, car washes, pressure washers, cooling systems and various outdoor water-using products. In order to identify the opportunities and risks associated with water, our company is committed to monitoring and improving its water footprint. We not only use water directly, but are also an indirect user since the efficiency of our buildings affects the volume of water used by the occupants of properties in our investment portfolio. The challenge is to increase water efficiency and address problems associated with increased water run-off due to more extreme weather patterns, not only when developing new buildings, but in the properties in portfolio as well.

What we set out to do in 2009 Annual Review on water issues in Redevco’s Programme of Requirements for development of new shopping centres

Status Achieved

0.21

m3/m2

Water efficiency improved in 2009

20

Redevco Corporate Responsibility Report 2009


Improved water efficiency

Water efficiency

In 2009 water efficiency improved from 0.22 m3/m2 to 0.21 m3/m2 on a like-for-like basis. The extrapolated water consumption is estimated at 1,135,613 m3 compared with 880,814 m3 in 2008. Given the higher data coverage (see annexes), it is expected that the extrapolated figure for 2009 is more accurate.

2008

2009

2008 - Like-for-like

2009 - Like-for-like

Industrial

Office

Water use and the distribution of water-using products in commercial buildings depends on the principal activities and use of the building (e.g. restaurant, laundry, car wash, supermarket, shopping centre). As a consequence, water efficiency may differ between asset classes, as the graph illustrates. Supermarkets and commercial offices are good examples to illustrate water-use disparities in commercial buildings. Supermarkets rely heavily on cooling towers for refrigeration and air conditioning, and thus these represent the major water needs of this sector. Although office buildings also rely heavily on cooling towers, water consumption in restrooms contributes to a greater proportion of water use in this type of building.

Asset Class

Retail Box/Park/Supermarket

Retail High Street

Retail Shopping Centre

Redevco’s Investment Portolio 0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

0.45

Water efficiency (m3/m2)

When data over three years is available, we will calculate a three-year average in 2011 and formulate a 2020 target per asset class by country. Redevco will liaise with an expert NGO aiming to pilot a water footprint methodology for buildings in 2010 and 2011.

Redevco Corporate Responsibility Report 2009

21


Wateruse BREEAM performance of new developments on water The two development projects in Ankara and Erzurum that were awarded a BREEAM certificate achieved a score of 66.67% on the criterion of water use. In both shopping centres the following six BREEAM-related measures were taken before the assessment: •

• • •

Toilets were fitted with 6/3L dual flush cisterns to minimise the consumption of potable water. Dual flush toilets give the user the choice of pressing a small or a large button depending on how much water is required to clear the toilet bowl. Research has proved that only one out of five visits to the WC warrants a full flush. Water meters with a pulsed output were installed on the main supplies to each building, and sub-meters to tenancy areas were installed. Pulsed water meters allow us to monitor the water use of a building through the Building Management System and contribute to efficient water data collation. A major leak detection system was installed. This system raises the alarm in the event of unusually high consumption, so that we can take action to repair the water leak. Proximity detection shut-off was fitted in the water supply to all urinals and toilets. This device prevents water waste by shutting off the water supply when no activity is detected. Rainwater is collected and used for irrigation. Using rainwater is an excellent way to save water when maintaining gardens and lawns.

These measures resulted in the final design score of 66.67%. 1-3 Connaught Place scored 66.67 % on water use and BREEAM EcoHomes at 4 Connaught Place scored 33.33%.

Case study

SPAIN

In 2008 Redevco decided to undertake a significant redevelopment of a property in Guadalajara in Spain. Due to difficulties with the building contractor, the expenditure overran the initial budget. Nevertheless, Redevco decided to increase expenditure by approximately 2% to improve the water drainage system in order to ensure compliance with corporate values.

22

Redevco Corporate Responsibility Report 2009


The Water Footprint Network

“

Statement from a key stakeholder The interest in the concept of the water footprint and the accompanying methods and tools is overwhelming. We are pleased to welcome Redevco as a regular partner of the Water Footprint Network and look forward to cooperating with Redevco in 2010 and beyond. The application of the water footprint methodology to existing buildings and new developments is a new area for us too. We hope to use the partnership to explore the water footprint of buildings and assess whether current performance indicators on water use in buildings are appropriate. Prof.dr.ir. Arjen Y. Hoekstra Professor in Multidisciplinary Water Management - University of Twente & Scientific Director - Water Footprint Network

Our objectives and targets for 2010 and beyond Become a regular partner of the Water Footprint Network Liaise with Water Footprint Network on water efficiency in the built environment and pilot a water footprint analysis for an existing building Calculate a three-year average per asset class by country and formulate a 2020 target Germany Specific measures to save water and to raise awareness among colleagues are being implemented in the Redevco office

“

The basis for the water footprint concept and methodology was laid by Professor Arjen Hoekstra at UNESCO-IHE and further developed at the University of Twente in the Netherlands. The concept and methods have been firmly established in scientific literature. To date, dozens of institutions and thousands of individuals have expressed interest in further developing and/or applying the water footprint methodology. The interest focuses on questions such as: How can I implement proper water footprint accounting in the context of my country or organisation? How can we identify the places where water footprints have the greatest impact? How can those impacts be reduced and possibly offset? A big gap has grown between the demand for support in application and implementation and the capacity to supply this support. There is also a need to bring together on a structural basis developers of methods and tools and institutions that seek to apply these. In order to coordinate efforts to further develop and disseminate knowledge on water footprint concepts, methods and tools, a number of institutions have established a Water Footprint Network. The network is unique in that it brings together partners from diverse origins - knowledge institutions, nongovernmental sector, private sector, government agencies and UN. Source: www.waterfootprint.org

By When 2010 2010/2011 2010

2010/2011

Redevco Corporate Responsibility Report 2009

23


Listed

buildings&

cultural heritage Protecting cultural heritage As a responsible investor we are aware that historic buildings are often unique and irreplaceable relics of the past, and that the responsibility for preserving them lies with the current generation. This heritage is an important aspect of the character and appearance of our towns, and adds to the quality of our lives. We recognise this and it inspires us to further improve environmental performance together with our tenants, and at the same time to protect the historical value of our buildings. Redevco owns thirty buildings throughout Europe in historic areas or city centres which are listed as buildings of cultural significance. The buildings represent a total value of around € 533 million, i.e. more than 7.5% of Redevco’s investment portfolio. Understandably, these buildings are often well protected from substantial alterations, which make it a challenge to meet our environmental commitments. As part of our ‘Business in Balance’ principle, we seek a balance between the protection of our cultural history and the environmental needs of today.

Finding the right balance Besides the environmental issues, a number of other aspects play a role in the use, preservation and restoration of these heritage buildings, such as the historic construction materials; the public interest; users; interior elements; construction regulations and environmental taxes. Other forces at play are the maintenance needs, the municipality, the interests of the owners, and changing demands in terms of the environment, convenience and facilities. The goal is to strike a balance between the various interests to ensure that future generations too can experience, use and appreciate these unique historic buildings.

Our progress against 2009 objectives and targets As cultural heritage is a new issue in our Corporate Responsibility report, we did not set any objectives for 2009 that can be reviewed. Objectives and targets will be formulated in 2010. In formulating our cultural heritage policy we will adhere to the following basic principles:

24

Redevco Corporate Responsibility Report 2009

30

Redevco owns

listed buildings


• •

When building new shopping centres we will assess whether a site is known to or likely to contain archaeological remains. When important remains are present on our sites, we will see to it that our project design avoids unnecessary damage or disturbance. To understand local opinion we will involve community representatives in the design process. We will retain, as far as possible, significant features in the exterior or interior of buildings, particularly the façades.

While these basic principles are being laid down and worked out in concrete prescriptions and protocols, we will ensure that the restoration or refurbishing of our listed buildings helps preserve cultural heritage.

Water efficiency

The graphs on the right and below on energy efficiency, carbon intensity, water efficiency and energy performance certificates of our listed buildings show that their environmental performance lags our average portfolio performance. This means that in the coming years we must make an extra effort to bring our historic buildings up to the energy efficiency standards of our overall portfolio. Connaught Place in the UK, a listed building, set the example by receiving a BREEAM ‘Very Good’ certificate in 2009 and a BREEAM EcoHomes ‘Good’ in 2010. In Central Europe discussions with monument protection agencies took place in Lublin regarding preservation of the pedestrian zone, and in Toruń regarding the planned purchase of a historic retail building dating back to the 15th century.

Industrial

2008

2009

2008 - Like-for-like

2009 - Like-for-like

not applicable

Offices

Asset Class

Current performance

Retail Box/Park/ Supermarket

not available

Retail High Street

not available

Retail Shopping Centre

Redevco’s Listed Buildings

0.0

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

Water efficiency (m3/m2)

Carbon intensity

2008

2009

2008 - Like-for-like

2009 - Like-for-like

Listed buildings - Energy Performance Certificates

Industrial

Offices

Asset Class

Listed Buildings - Energy Performance G ­Certificates F

not applicable

C

E

Retail Box/Park/ Supermarket

Retail High Street

not available

Retail Shopping Centre

Redevco’s Listed Buildings

0

40

Energy efficiency B

C

D

E

2009 Worse than reference Worse than reference

0

F

G

Industrial

Heating

Equal to reference

60

80

100

120

0

2008

2009

2008 - Like-for-like

2009 - Like-for-like

not applicable

Offices

Better than reference

0

Asset Class

Asset Class

D

A

Electricity

20

Carbon intensity (kgCO2/m2)

Retail Box/Park/ Supermarket

Retail High Street

Retail Shopping Centre

Equal to reference

0

0

0

Better than reference

1

0

3

not available

Redevco’s Listed Buildings

0

50

100

150

200

250

300

Energy efficiency (kWh/m2)

Redevco Corporate Responsibility Report 2009

25


Listed

buildings&

cultural heritage It was quite a challenge to create a sustainable environment behind the 1950s single-glass-and-steel façade of the HUF building in Rotterdam. We succeeded by using a unique kind of ultra-thin double glazing especially designed for renovation projects and by reintroducing a remake of the original awnings.

Robert Bakker Development Manager Redevco Netherlands

Statement from a key stakeholder

Historic buildings in Spain, Portugal and Italy Around 30% of the Redevco portfolio in Spain, Portugal and Italy are listed as historic buildings. In cities like Madrid, Barcelona, Palma de Mallorca, Lisbon, Porto and Bari we devote time and resources to preserving these buildings. Below are some examples of recent interventions: • • • •

At Rua Santa Catarina, Porto, Portugal, we restored the sculptures that crown the beautiful Palladium building. At Rua Santa Catarina, Porto, Portugal we engage a specialist to carry out periodic maintenance on the clock in the building. At Rua Augusta, Lisbon, Portugal we have managed to combine commercial use with the exhibition of archaeological remains. At Conde de Peñalver-Goya, Madrid, Spain we have conducted periodic cleaning and restoration of the façade.

We believe that keeping these properties in good condition not only contributes to preserving their value, it also preserves the city centres where they are located. In this way we serve our goal of preserving our cultural heritage. We should not forget that the properties themselves have a rich history, having been able to adapt to different customer needs through the centuries.

Case study

UNITED KINGDOM - Glasgow, Princes Square The original buildings of what is now Princes Square Shopping Centre were built in blonde sandstone to a design by the celebrated Glasgow architect John Baird, and were completed in the mid-1800s. Originally a hotel, converted into business chambers and for commercial usage, the buildings have been Grade B listed since 1970. During the 1980s Princes Square was redeveloped into a covered indoor shopping centre by the addition of a glazed pitched roof. The addition of continuous balconies on the first, second and third floors created a galleried atrium space around which shop units were forged from within the retained Victorian sandstone buildings, preserving the original façades. Over the coming years, starting in 2010, the look and feel of the building will be refreshed without impacting its architectural and historic integrity.

26

Redevco Corporate Responsibility Report 2009


Case study

THE NETHERLANDS Rotterdam, HUF Building Redevco Netherlands acquired the HUF Building in 2007. The building was designed in 1953 by architects Van den Broek & Bakema and comprises 1,250 m2 of retail space and 1,300 m2 of office space. The Huf building is widely recognised as one of Rotterdam’s finest monuments. After years of neglect, it was aquired by Redevco and restored to its former glory. The upper floors have been redeveloped to provide modern office space, while retaining the distinctive postwar architecture. The characteristic glass facade has been preserved, along with the striking details of the steel sections. Good climate control has been ensured by reintroducing a remake of the original awnings. Work on renovating the entire building commenced in 2008 and was completed in 2009.

Case study

BELGIUM - Antwerp, Meir One of the many titles bestowed on Antwerp in the 16th century was ‘triomfelycke coopstad’, meaning ‘triumphant shopping city’. Today, shoppers are still wild about Antwerp’s pedestrian zones, historic dwellings and bustling shopping centres. Meir is the main shopping street. It is pedestrian-only and lined with 18th and 19th century façades. Redevco owns two adjacent listed buildings on Meir, which house the Inno department store. Meir 82 was built in 1901 for the Tietz department store, renowned for its straw hats. The marvellous neo-classicist façade is topped by three glass domes. Meir 84 was built in 1903 for the Moyson electrical store. The building has a splendid neo-classicist façade decorated with several statues. The roof is topped with a golden statue of the goddess Electra. Redevco will commence a complete renovation of the façades and roofs in 2010. By the end of 2011 the building will shine again as in its early years.

By When

Objectives/Targets/Actions Central Europe Increase share of assets that are protected buildings and are under development to 15%

2015

Germany Carry out robust renovation of a gallery in the side wing of the Hansakontor, a listed building in Dortmund. Measures must be implemented in strict compliance with conservation practices and regulations

2010/ 2011

Central Europe Redevelop the Lublin property while preserving the historic pedestrian zone

2011

Redevco Corporate Responsibility Report 2009

27


Business Integrity Redevco’s Business Integrity Policy stems from our shareholder’s Code of Conduct. We have not yet initiated a review of our core values and business principles, since we wish to conduct that review together with our shareholder, COFRA Holding AG.

What we set out to do in 2009

Status

Review our core values and business principles

Not started

Review supplier contracts with reference to the Business Integrity Policy and other relevant Corporate Responsibility issues

Not started

Conduct annual review of business integrity issues in Redevco’s Programme of Requirements for development of new shopping centres

Achieved

The evaluation of the contracts with suppliers has not yet commenced, but remains an objective for the coming years. The process will start in 2010 as part of the Responsible Sourcing project. Redevco’s 283 employees all signed the Business Integrity Policy at the beginning of 2009, thereby reaffirming their commitment to the policy. Implementing this policy in day-to-day business decisions remains a profound challenge. As part of this policy, Redevco Netherlands discusses ethics and dilemmas at sessions every Tuesday morning with staff.

283

employees all signed the Business Integrity policy at the beginning of 2009

28

Redevco Corporate Responsibility Report 2009


Values and ethics In 2010 Redevco and COFRA Holding AG will jointly develop a format for keeping the Business Integrity Policy alive. A special working group will be appointed to address the issue of implementation and to come up with practical tools. Measures planned for 2010 include developing overall business principles for COFRA Holding AG as a group. Each business line will be responsible for highlighting those issues relevant for their area. In addition we will develop a Maturity Programme to track progress with implementation.

By When

Objectives/Targets/Actions Develop a format for keeping the Business Integrity Policy alive. A special working group – the Ethical Committee – will be appointed to address the issue of implementation and to come up with practical tools

2010

Review overall business principles in cooperation with COFRA Holding AG. Each business line will be responsible for highlighting issues relevant for their area

Starting 2010

Develop a Maturity Programme to track progress with implementation

Starting 2010

Statement from a key stakeholder

Business Integrity – incidents

In the last few years Redevco has implemented the Business Integrity Policy, nominated a Compliance Officer and introduced a Whistleblower Policy. Only a limited number of incidents were reported and these have been dealt with. The fact that we are still a small organisation in terms of fulltime employees may help a lot. Like in a village where the social control mechanism is quite strong, it would be difficult to misbehave without anybody noticing.

Arjen Laan Former Human Resources Director Redevco Head Office

Employees playing the COFRA integrity game.

Redevco Corporate Responsibility Report 2009

29


local communities

Supporting

COFRA Holding AG has a long tradition of supporting local communities, which includes corporate giving. Redevco’s policy is based on the COFRA policy on communities and donations, and has evolved gradually over the years. The basic principle of ‘acting as a responsible local citizen towards local communities’ has been interpreted in various ways and consequently the range of groups that have received donations is diverse.

Status

What we set out to do in 2009 Review corporate donations policy and identify clear targets and objectives related to Redevco’s core business Engage with local Green Building Councils Continue engagement with working groups and expert panels

In progress Achieved Achieved

In addition to the budget spent by COFRA – which is partly funded by Redevco – we made donations in 2008 of € 292,063. In 2009 Redevco donated a total of € 251,000 to good causes. That sum does not include the hours of voluntary work performed during the social events described below. The amount is lower than in 2008 because we received fewer requests for donations.

24

non-profit organisations received a form of grant

30

Redevco Corporate Responsibility Report 2009


Making an impact In 2009 we expressed a desire to identify alternative ways of engaging with the community. The donations we made had lost their impact as the focus was too broad. It was decided to review the Corporate Giving policy and identify clear objectives related to Redevco’s core business, as well as targets, focus, budget, output, procedures and instruments. The review concluded that our Corporate Giving programme should add value to society in general, our employees and Redevco as a whole. In 2010 we aim to develop objectives which include: • • •

helping the less privileged and ‘giving back to society’ within the communities where Redevco is active; motivating and involving staff, stimulating team building; acting as a responsible corporate citizen.

We plan to set targets on the number of employees involved, the budget and the impact a project should aim for. Based on the output of interviews with several board members and Managing Directors, a workshop was planned at which the participants developed policy, described the beneficiaries and identified the expected input and output, including the use of different instruments. The results were presented during the Redevco Social Event 2010. The meeting also defined a Guiding Principle describing in general what we aim for and what investment in the local community or project with an NGO should entail: ‘Invest in the living environment, for example housing, education and the natural urban environment of the less privileged within the communities where Redevco is active.’

1) We were able to fund spa treatment for Martina Mateova, a severely handicapped 13-year-old girl. Martina has spastic paraplegia and can only lie down, sit or kneel. Given the political and regional situation of the Roma in Slovakia, her mother has no way of earning money herself to pay for this treatment. Her father died two years ago. With just € 290 a month to survive on, mother and daughter live in a garage of about 12 m2. Redevco’s sponsorship helped to not only stop the girl’s condition from deteriorating, but also substantially alleviated the symptoms. 2) As in 2008, Redevco also supported our gherkin project in eastern Slovakia. This project aims to create jobs for the Roma people in the region, helping them to help themselves. Redevco’s donation went towards financing seeds, jars and various ingredients. We organise the work locally and sell the finished products in Austria. With Redevco’s support, this project encourages the people in this region to take responsibility for themselves through their own labour. We would like to offer Redevco our sincere thanks for its support. Heinz Kumpf Direkthilfe: Roma

Statement from a key stakeholder

Redevco’s donation enabled us at Direkthilfe Roma to finance two projects in 2009:

Redevco Corporate Responsibility Report 2009

31


Supporting

local communities Case study

Turkey: Women’s Club

Redevco Turkey launched a Women’s Club in December 2009 to coincide with the opening of the Gordion Shopping Center. The objective of this club is to empower women and give them a sense of being part of the local community. It is a platform for members to embrace opportunities such as invitations to exclusive product launches, free lessons in areas such as painting, crafts and cooking, but above all to be a part of the Gordion community. The Gordion Women’s Club offers the local women of Ankara a forum to express themselves. In this way, we have created a safe environment that fosters social bonds among consumers. It is free of charge and members receive substantial discounts on various products at the Gordion. The club is a unique concept in Turkey.

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Redevco Corporate Responsibility Report 2009


Engagement and participation We addressed Corporate Responsibility in consultation with peers and lobby groups through our continued participation in various committees, working groups and similar. The following table gives examples of local engagement.

Country

Institution

Short description

Central Europe

Austrian Sustainable Building Council – ÖGNI

Became founding member

The Netherlands

Dutch Green Building Council

Discussion in BREEAM In-Use working group

NRW – Dutch Council for Shopping Centres Frontrunners in the retail on sustainability - initiative of IVBN, DGBC, NRW, Nevap, Neprom, Vastgoedmanagement Nederland, and Agentschap.nl

Redevco is a member of the Contracts & Sustainability working group within the Sustainability Taskforce. Redevco shared its Green Lease format with the working group

Municipal authority of Leidschendam

Discussing the sustainability ambitions of the municipality and other issues

Sweden

Working group of Landlords (www.trettongruppen.se)

This working group is setting up BREEAM in Sweden

United Kingdom

Member of the British Council of Shopping Centres

Redevco is on the organising Committee

Spain

Spanish BREEAM Council (www.breeam.es)

In 2009 Redevco Spain became a founding member of the Spanish BREEAM Council

Municipal authority of Chiclana

Discussion with municipal and railway authorities on building an eco car park in relation to redevelopment project

BREEAM

Colleagues attending the BREEAM assessor training

German Sustainability Building Council (DGNB)

Founding member

Scientists/universities

Contact because of the ‘Prom des Jahres’ award or several publications

CNCC – French branch of ICSC

Permanent membership of commissions set up a by the CNCC: Sustainable Development Commission and Technical Commission

Seine Rivoli: clean building site charter

This charter was about noise and traffic regulation to protect the neighbourhood; applied by most contractors working with Redevco

BREEAM meetings

Attendance of meetings organised by BREEAM

Turkish Green Building Council TGBC conferences

Some employees attended a conference of the Turkish Green Building Council

Germany

France

Turkey

Redevco Corporate Responsibility Report 2009

33


Supporting

local communities Overview of corporate giving projects in 2009 Country

Institution

Short description

Central Europe/ Poland

Nuns of Warsaw

The Polish team spent a day doing voluntary work in an orphanage managed by the nuns of Warsaw

Direkthilfe Roma

Donation for a truck to bring used goods from Austria to the Roma-people in Southeastern Slovakia and bring cucumbers back to Austria to sell to Austrian consumers. Donations for a motor repair of the truck in November 2009

Arche Noah

Renovating new home of foundation for underprivileged children

Orphanage

Help and sponsorship to enable the children of the orphanage to go on a summer vacation

Paint a Future

Donation and exhibition, Office Redevco Netherlands

Zinnige Zaken

Social event

Het Dolfijntje (Alpe d’Huez)

EU colleagues climbed the Alpe d’Huez (by bike and on foot) to raise money for a swimming pool for disabled children

De Eglantier

Sponsoring of clinic for therapeutic day care for children

Turkey

Rotary Istanbul

Supporting nursery centre for disabled children

Head Office

IMC weekend school

Weekend school for international students

NCPG

Horse riding for handicapped children

Habitat for Humanity

Building houses in South Africa

St. De Opkikker

Colouring book for hospitalised children

Foundation Endiga (Alpe d’Huez)

EU colleagues climbed the Alpe d’Huez (by bike and by foot) and raised money for a school renovation project in Uganda

COR foundation

Helping less privileged children

Terre des Hommes

Project in Indonesia

Cordaid

Project in Bangladesh

Cordaan

Renovation of old canal boat for use by clients of care organisation in Amsterdam

Germany

Clinic Bad Sassendorf

Spending a day with children with mental disorders

Spain

Cycling tour

Cycling with disabled people in Madrid, in cooperation with Fundación Deporte y Desafio

Fundación Apsuria

Donation to cover running costs

India

Sukhdham Old Age Home

Improve living conditions

United Kingdom

Oasis Venture Playground in London

Rebuilding an adventure playground in London

Sweden

The Municipality of Varmdo (near Stockholm)

Taking disabled children out for the day in the Nordics

The Netherlands

Belgium

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Redevco Corporate Responsibility Report 2009


Our buildings and the local community Various social and ethical issues were addressed during the development and launch of the Gordion Shopping Center in Turkey. For instance, an educational programme for children was launched on how to deal with waste. See ‘Emerging Corporate Responsibility issues’ for details page 40. In the Gordion and Erzurum shopping centres there is a room available during prayer time. Between 20 to 40 people make use of this room during the day.

Dutch Green Building Council

Statement from a key stakeholder As the frontrunner in Europe on sustainability in retail real estate, Redevco is stepping up the pace of the sector as a whole on sustainability. Redevco is the initiator of several councils, including the Dutch Green Building Council (DGBC). Redevco continues to contribute strongly to the DGBC, with its COO acting as chairman and several other employees participating in advisory bodies. Redevco helps the council’s work towards permanent change in the field of sustainability by taking ambitious but realistic steps to embed sustainability in business processes. Stefan van Uffelen Director of the Dutch Green Building Council

By When

Our objectives and targets for 2010 and beyond Evaluate the Corporate Giving policy, develop procedures and implement policy Turkey Roll-out the environmental awareness programme for children in 2010

2010 2010

Redevco Corporate Responsibility Report 2009

35


Emerging

Corporate Responsibility Issues

In addition to energy use, CO2 emissions and water use, Redevco’s activities have an impact on wider environmental issues, including transport, materials & waste, land use & ecology, pollution, health & wellbeing, and management. Further informa­ tion on the background of these issues, and effective measures to minimise the impact, can be obtained at www.breeam.org. Redevco is committed to minimising this negative environmental impact. Although third-party certification is not always preferred, it is a means of achieving this. For new development projects with a construction spend larger than € 10 million Redevco requires a BREEAM assessment to be carried out, aiming for at least a ‘Very Good’ rating. Furthermore, we aim to ensure that our management systems are compliant with ISO 14001 standards. We have no permanent programme to manage and measure the performance of the existing investment portfolio and our corporate offices in terms of emerging Corporate Responsibility issues. Nevertheless, a number of case studies will illustrate the effort we make in this Redevco Netherlands regard. Once the BREEAM in Use scheme is launched for the European market, we was awarded an will consider using this system to monitor the performance of our investment portfolio on these issues. This prompted us to become a founding member of the International Sustainability Alliance (see ‘Society at large’, page 50).

ISO 14001 certificate

What we set out to do in 2009 Complete development projects (> EUR 10 million): 100% BREEAM assessed and at least rated Very Good Start ISO 14001 certification procedure for 100%-owned shopping centres Annual Review on environmental issues in Redevco’s Programme of Requirements for development of new shopping centres

36

Redevco Corporate Responsibility Report 2009

Status Not achieved In progress Achieved


Four BREEAM certificates awarded In 2009 Redevco completed two new shopping centres in Turkey, one in Ankara and one in Erzurum. Both projects were certified ‘Very Good’ under the BREEAM criteria, making them the first BREEAM-certified buildings in Turkey. Both projects served as pilot projects for the development of the BREEAM Europe Retail scheme. Redevco completed its development at Connaught Place, London, which was awarded a BREEAM ‘Very Good’ in 2009; the development also received a BREEAM EcoHomes ‘Good’ at the beginning of 2010.

Towards the end of 2009 a joint venture involving Redevco and Shui on Land in China began working with BRE Global to formulate suitable criteria for the BREEAM assessment of the Wuhan Tiandi Riverview Plaza. The aim is to meet high standards of sustainability, using BREEAM to benchmark and improve performance. The construction of the retail complex is expected to commence in the fourth quarter of 2010, with completion scheduled for 2013. The assessment will be carried out under BREEAM International Bespoke 2008 (see www.breeam.org/international for details), which is involved in developing specific criteria tailored to local conditions and standards within an overall BREEAM framework. The target is to secure a rating of ‘Very Good’ for this development.

Environmental management system certified under ISO 14001

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In 2009, Redevco Netherlands implemented a third-party audited environmental management system. Thanks to these efforts we were awarded the ISO 14001 certificate on 13 January 2010, applicable to all of Redevco Netherlandsâ&#x20AC;&#x2122; business activities. This makes Redevco one of the first companies in the real estate business in the Netherlands to operate an environmental management system that conforms to the ISO 14001 standard. In Spain, four shopping centres â&#x20AC;&#x201C; Glories, La Vaguada, Los Arcos and Parquesur â&#x20AC;&#x201C; were awarded an ISO 14001 in 2008 and 2009. We are co-owner of these shopping centres and Redevco had no direct involvement in this certification process. Redevco aims to apply for ISO 14001 certification for all its 100%-owned shopping centres in 2011.

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Redevco Corporate Responsibility Report 2009

37


Emerging

Corporate Responsibility Issues

Case study FRANCE: Internal environmental management France has various environmental measures in place to reduce negative impact and increase positive impact. Some examples are the use of water fountains instead of individual water bottles; use of recyclable plastic cups, FSC copy paper (produced from recyclable material and with recyclable packaging), FSC pencils, refillable ballpoint pens made of recycled plastic bottles, and recycled post-it refills bought from a CAT (Centre d’Aide par le Travail), employing handicapped people; fruit baskets bought from ‘Ferme de Gally’, whose profits go to cancer research; recycling of toner cartridges by a specialised company (CONIBI); recycling of used batteries; turning off office lights at noon break or at the end of the working day; double-sided and black & white printing whenever possible.

FRANCE: Vitrification of asbestos Instead of being buried, asbestos removed from the C&A store in Maine Montparnasse was destroyed completely through vitrification in a factory in the Bordeaux region.

38

Redevco Corporate Responsibility Report 2009


United Kingdom, United Kingdom, London: London: 4 Connaught Place 1-3 Connaught Place BREEAM Offices

BREEAM EcoHomes

BREEAM Very Good.

BREEAM Good.

A BREEAM assessment was carried out and a certificate awarded based on the following performance:

A BREEAM assessment was carried out and a certificate awarded based on the following performance:

Management Health & Wellbeing Energy Transport Water Materials & Waste Land Use & Ecology Pollution

Management 80.00% Health & Wellbeing 25.00% Energy 29.20% Transport 87.50% Water 33.33% Materials & Waste 51.60% Land Use & Ecology 66.70% Pollution 45.50%

88.89% 61.54% 33.33% 66.67% 66.67% 58.33% 40.00% 40.00%

Turkey, Ankara: Gordion Shopping Center

Turkey, Erzurum: Erzurum Shopping Center

BREEAM Very Good.

BREEAM Very Good.

A BREEAM assessment was carried out and a certificate awarded based on the following 足performance:

A BREEAM assessment was carried out and a certificate awarded based on the following performance:

Management Health & Wellbeing Energy Transport Water Materials & Waste Land Use & Ecology Pollution

Management Health & Wellbeing Energy Transport Water Materials & Waste Land Use & Ecology Pollution

46.67% 63.64% 72.00% 100.00% 66.67% 33.33% 50.00% 47.06%

50.00% 81.82% 64.00% 66.67% 66.67% 33.33% 33.33% 62.50%

Redevco Corporate Responsibility Report 2009

39


Emerging

Corporate Responsibility Issues

Case study

Turkey: Waste

During the development of the Gordion Shopping Center in Ankara Redevco discovered that the local municipality had very little awareness of waste and scarcely any strategy for waste management. Redevco has formed a joint venture with a private company to manage the different waste streams, which allows plastic, cardboard and metals to be separated and recycled. Linked to this project, Gordion has started a special educational programme for children. The programme is called YESIL, which means â&#x20AC;&#x2DC;greenâ&#x20AC;&#x2122;. The objective is to teach children in a playful manner about recycling of waste and what you can do with waste.

40

Redevco Corporate Responsibility Report 2009


Statement from a key stakeholder Recycling and collecting waste is important. Recycling one tonne of paper saves 17 pine trees and 54,000 litres of water. Recycling one aluminium can means a computer can be run for 3 more hours. Shopping centres are among the top packaging waste producers. Each day, thousands of visitors buy products, eat, and produce waste – mostly composed of recyclables. It is important to collect this packaging waste effectively to preserve natural resources and extend the operational lifetime of landfills. Gordion AVM is a frontrunner in its environmental approach. Unlike many shopping centres, it recycles in strict compliance with legal requirements. Since October 2009, packaging waste has been collected separately and picked up by a licensed packaging waste collection and sorting facility, ITC. To increase the effectiveness of its current packaging waste management activities, Gordion AVM will continue to support the collection of recyclables throughout the shopping centre and increase the quality of these activities by training shopping centre staff, both in the offices and working at strategic points that produce the most packaging waste (e.g. food courts).

Gordion Shopping Center Ankara - waste partner

Suna Ercan Trade & PR Manager ITC Invest Trading & Consulting AG

Objectives/Targets/Actions

By When

Obtain ISO 14001 certification for all 100%-owned shopping centres and Head Office Identify emerging corporate responsibility issues through different forms of stakeholder engagement

2011 Annually

Germany Conceptualise all new projects as green buildings from the outset Dual green building certification – BREEAM and DGNB standard – for Alexanderplatz in Berlin

2013

China Obtain BREEAM ‘Very Good’ rating for the Wuhan Tiandi Riverview Plaza development

2010

Spain Apply for BREEAM certification for Chiclana redevelopment project in Cadiz

2010

Spain Upgrade maintenance standards for some of our less well maintained assets through monitoring, i.e. implement an external audit system for the whole portfolio

2010

UK Secure planning permission for redevelopment of George House, Glasgow rated BREEAM ’Excellent’

2011

Central Europe – Poland Implement sustainability in the Lublin redevelopment

2010

Central Europe – Austria Identify possible sustainability measures in planned refurbishment of Generali Centre in Vienna

2010

Redevco Corporate Responsibility Report 2009

41


Listening to and

learning

from our

key stakeholders

We recognise the importance and added value of establishing partnerships with stakeholders to discuss Corporate Responsibility issues that affect both them and us in the short and long term.

What we set out to do in 2009

Status

Establish a permanent system of internal and external communication on Corporate Responsibility, including internal reporting, external reporting, newsletters, intranet and website

In progress

Establish structure for dialogue with and feedback from stakeholders

In progress

We aim to provide information to our key stakeholders frequently, at their request and proactively. We are currently defining a policy for regular, direct communication with our stakeholders on corporate strategy issues. As well as our corporate website, we intend to use tools like an electronic newsletter and an annual meeting to engage with key stakeholders such as our tenants. The main result in 2009 in terms of establishing a structure for dialogue was that we started to identify our stakeholders, our respective impact, and the various issues relevant for them. This process will continue in 2010 and beyond. In this section we will report on the progress we made in five main stakeholder categories: • • • • •

Employees Tenants Suppliers Shareholder Society at large, including governments, trade associations, NGOs and community groups

We have added an evaluation form to the report last year and we have recieved many reactions about our report. The conclusions from these can be summarised as follows: Redevco did well to publish a Corporate Responsibility report. The many informal reactions led to the decision to publish annually instead of biannually. We are grateful to those who provided us with feedback, which has encouraged us to continue in the direction we are heading. As we want to listen to and learn from our key stakeholders, we welcome any comments or feedback on this year’s report. Please visit our website to fill in the evaluation form, www.redevco.com/cr

Objectives / targets / actions Work in alignment with the AA1000 principles Structure engagement at corporate level aligning local structures Identify new forms of engagement with stakeholders

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Redevco Corporate Responsibility Report 2009

By When Starting in 2010 2011 2010/2012


Employees – being a responsible and preferred employer Status

What we set out to do in 2009 Conduct employee engagement survey once every two years (next in 2010)

Achieved

Conduct annual commuter survey

Achieved

Organise in-company BREEAM training

Achieved

The overarching principle behind the HR policy is that it enables Redevco to achieve its growth strategy by having the right leaders and professionals in the right place, with the right skills, at the right time. This implies that all HR-related issues – culture, organisational structure, remuneration, secondary benefits, succession planning and training & career opportunities – should be geared to the size of the business and the principle of subsidiarity (1). The key principles of the HR policy are: • •

Continuous improvement of all employees. Responsibility of all employees for their own personal development. Redevco facilitates this development with due regard to the interests of the individual and the business.

The Managing Directors have their own responsibility for shaping HR policy in line with the established HR framework and principles. In view of the significant geographical spread of the company’s activities, practices vary greatly but within a solid framework.

Key figures 2008/2009 as of 31-12-2009 29,3

Redevco employees

6,28 8 1

2008

2009

54,3 age 0-20

# of employees

305

280

age 21-30

# of FTEs

300

275

age 31-40

# of women in headcounts

128

134

% of women

43%

48%

age 41-50

79,2

age 51-60

104,23

age>60 unknown

Statement from a key stakeholder

The challenge of managing climate change and reducing carbon emissions lies in the fact that the objectives can be achieved only through the combined efforts of tenants and landlords. The first accomplishment has been to increase the availability of data from the majority of our tenants. This has raised awareness among tenants and landlords. Dirk van Belleghem Head of Building and Maintenance Redevco Belgium 1 The principle that a central authority should have a subsidiary function, performing only those tasks that cannot be performed effectively at a more immediate or local level.

Redevco Corporate Responsibility Report 2009

43


Listening to and

learning

from our

key stakeholders

Statement from a key stakeholder

The Hay Engagement Survey provided us with a very clear insight into the internal dynamics of the organisation and the key issues that we face. The structured feedback allowed us to identify and address these key issues and thus eventually improve morale and performance. This included improving the training for new employees, focusing more on coaching and ensuring challenging work was found for all employees.

Mark Siezen Former Managing Director Redevco Netherlands

Hay Engagement Survey At the beginning of 2009 Redevco participated in the Hay Engagement Survey conducted throughout COFRA Holding AG. This survey is held every 18 months in order to obtain a clear picture of the major strategic HR issues and to reconcile the company’s strategy with the results. Hay issued invitations to take part in the survey to all of Redevco’s 283 employees. Of them 250 responded, giving a response rate of 88%. The Hay survey is normally only conducted at senior management level, but Redevco chose to engage all of its employees in the survey. The outcome of the survey was generally positive, with relatively high scores on Quality and Customer Focus (85% favourable), Clear and Promising Direction (80% favourable), Respect and Recognition (79% favourable). Furthermore, 87% of respondents indicated that they are proud to work for Redevco. Areas in which improvement is needed are Development Opportunities (8% unfavourable), Pay & Benefits (13% unfavourable) and Training (15% unfavourable). The results differed from one country to another, so specific action plans have been drawn up at local level. On the issue of training, one of the conclusions from the survey was that there is a specific need for new employees to receive proper training. In Central Europe a programme is being developed to familiarise newcomers with the internal systems and procedures. In Germany the total training budget has been increased, as it has in Spain, where agreements were made during the year-end interviews on the training courses to be followed in the coming year. In general our professional development strategy is based on 1. horizontal growth by assigning greater responsibilities, 2. vertical growth through regional and professional exchanges, i.e. giving individuals the opportunity to gain experience in international working groups engaged in areas such as Finance, Mall Management or large transnational acquisitions, and 3. acceptance of the fact that people will leave.

Management review system In 2009 we strengthened the planning and coordination of the placement of potentials, especially financial professionals, in other business units within COFRA Holding AG. Since the placements last 1-2 years, we expect to see the first results in 2010. The total number of these transfers will, however, remain limited. As part of this process we introduced a digital group-wide management review system for the 45 key positions within Redevco in 2009. This performance management system rates individuals on eight different competencies: innovation, visionary leadership, strategic planning, market orientation, business understanding, achieving business results, getting the best out of others, and personal influence.

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Redevco Corporate Responsibility Report 2009


Training and awareness

H1N1 response

Every employee has the opportunity to take training courses relevant to their position. In 2009 around 80% of employees received training. Around 30 employees participated in the BREEAM training, where they learned to support the business in securing certificates and implementing the management systems needed to meet the criteria for the BREEAM certificate.

In April 2009, a new strain of influenza A(H1N1) virus was found to be spreading among humans. Redevco’s prime objective in its response was to protect the health and safety of its employees and stakeholders. The secondary objective was to ensure business continuity.

The total budget for training was € 591,000, compared with € 614,000 in 2008. This figure excludes all internal training, such as the Redevco Business School, BREEAM training, introduction days, courses at INSEAD and Ashridge and other corporate courses. These are partly organised in cooperation with COFRA Holding AG.

Redevco took the following actions:

• Through COFRA Holding AG, Redevco participates in two major training programmes for potentials. The first is at Ashridge University in the UK for employees who are being groomed for a senior management role. Five employees participated in the programme in 2009 and were promoted to a senior management role after completing the programme. The second programme is a Mini MBA Programme at INSEAD in Fontainebleau in France for employees aged 25-30. After an initial assessment, five Redevco employees were selected for this two-year programme.

Redevco set up an Influenza Crisis Team consisting of the CFO, CEO, Finance director, HR director, PR manager and IT manager. All Managing Directors received an Influenza Pandemic Contingency Plan to be implemented and adapted at local level. All employees were requested to familiarise themselves with that document. All employees were asked to take responsibility for their own health and, if in doubt, to contact their family doctor for advice. Special items on the Influenza Pandemic Contingency Plan and a reference to the WHO website http://www.who.int/csr/disease/swineflu/frequently_ asked_questions were published on the Redevco intranet.

In 2009 no employee fell sick or was diagnosed with symptoms of the H1N1 virus.

By When

Our objectives and targets for 2010 and beyond Repeat Hay Survey

2010

Identify ways to engage directly and indirectly with employees on Corporate Responsibility

2010

Address Corporate Responsibility issues during general meetings and secure the involvement of employees in every discipline

2010

Germany Send one employee to train as DGNB consultant

2011

Redevco Corporate Responsibility Report 2009

45


Listening to and

learning

from our

key stakeholders

Tenants – Green Leases What we set out to do in 2009 Identify Corporate Responsibility issues in existing lease contracts

Status In progress

Redevco engages with its tenants at corporate, country and individual building level. Establishing sound cooperative business relations with this stakeholder group is a key area of Redevco’s Corporate Responsibility policy. We share with them the responsibility to improve the environmental performance of the properties they rent.

Working group on Green Leases In 2009 a working group on Green Leases was set up to define Redevco’s ambition in this area and explore the concept of Green Leases. The working group is chaired by Redevco’s CFO. With the introduction of the Green Lease concept, we intend to form partnerships with retailers to improve performance on at least the two key environmental issues - energy use/CO2 emissions and water. In 2010 the working group will organise talks with experts in these fields and interview all Redevco regions on these topics. The working group will contact some key tenants to exchange views and discuss Green Leases.

What is a Green Lease? The term ‘Green Lease’ has no fixed meaning. It is commonly used to cover any initiatives taken by landlord or tenant regarding the environmental performance (or the use) of a property. It can range from a non-binding to a legally binding document. It can cover only a clause about data-sharing on energy or set shared targets and penalties when these are not met. A Green Lease could take the form of a general agreement between a landlord and a tenant covering a number of properties in a certain country or region. It could also be entered into with respect to a specific building. Green Lease clauses could be included in traditional lease agreements (upon closing or renewal) or in a separate document. A Green Lease is not a stand-alone topic, but a means to achieve our Corporate Responsibility objectives within a sound cooperative relationship with our tenants.

Green covenant in the Netherlands In 2009 Redevco Netherlands developed a green covenant aiming to share environmental data with tenants and set shared targets to improve the environmental performance of specific buildings. By the end of 2009 the first tenant, Game Mania, had signed. In 2010 Redevco Netherlands will continue to approach its tenants to sign green covenants.

Sharing data with tenants is key A huge flow of data is needed to calculate the environmental performance of an asset for Corporate Responsibility reporting. Data coverage on energy use and CO2 emissions for the buildings we let to our tenants increased in 2009 compared with 2008, thanks to the willingness of many tenants to share this information with Redevco (see annex ‘Data quality and coverage’, page 52).

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Redevco Corporate Responsibility Report 2009


The response from our tenants was quite diverse. Only one or two retailers did not want to share information with us, for various reasons. Others even provided us with information about properties they do not rent from us. Some asked us to sign a separate confidentiality agreement to ensure we would not disclose their individual information.The more organisations that start to report on Corporate Responsibility, the more data needs to be exchanged between all stakeholders on each asset. Though Redevco has a lot of information about its properties, it often has no access to environmental data that relates directly to areas let to tenants. Conversely, we have information that tenants need to report on their environmental performance. Redevco believes it is important to combine these flows of information to develop a long-term programme aimed at raising the environmental performance of its portfolio to a level that is future-proof. This was one reason why Redevco became a founding member of the International Sustainability Alliance. The property environmental database created by the ISA will enable its members to upload and exchange environmental data for multiple purposes, such as internal/external reporting, benchmarking and certification.

Redevco becomes a founding member of the International Sustainability Alliance The International Sustainability Alliance (ISA) is a new initiative by the BRE Trust, supported by BRE Global, that brings together a global network of real estate developers, owners, occupiers and investors dedicated to achieving a more sustainably built environment by driving global carbon reduction commitments. BRE Global is owned by the BRE Trust, a not-for-profit charitable institution. ISA will help members create a more sustainably built environment and improve return on investment by creating the world’s largest and most comprehensive property environmental database. ISA is gathering data on members’ portfolios to help create the world’s largest sustainability database. This will enable an organisation to assess its impact on the environment at individual building and portfolio level, thereby identifying which properties are performing at optimal level and which are sub-optimal, so that appropriate strategies can be created. The database includes Key Performance Indicators (KPIs) and consistent metrics that cross national boundaries. It will enable REDEVCO to produce accurate and verifiable Corporate Responsibility reporting. Source: www.internationalsustainabilityalliance.org

Engaging with C&A in Germany In Germany the success of the C&A Eco-Store in Mainz is being used as an incentive to sustainably enhance the energy efficiency of the entire portfolio. One milestone planned is to reduce annual energy consumption (heating and electricity) for every property in the portfolio to less than 235 kWh/(m²a) by 2015 – a saving of up to 35% for some buildings. This target is based on the German Energy Performance Certificate and reflects the reference for Retail Buildings. To pursue this ambitious goal, we have formed a joint task force with our main tenant, C&A, to formulate and implement specific strategies and measures to improve the energy status of buildings with above-average energy consumption. In 2010 Redevco Germany will continue its task force with C&A Germany. In other countries Redevco also engaged on environmental issues with its tenants:

Region/Country

Tenant

Topics discussed

Spain

C&A, Dinosol, Eroski, H&M and Barclays

Energy, CO2 , water consumption

Central Europe/ Austria

C&A

Discussions with C&A regarding Green Building

The Netherlands

Game Mania, Ado Bike, VDM, Finace, Praxis, Mexx, The Phone House, Van Haren, H&M and Douglas

Signing of green covenants. Discussing Green Leases / energy

Select retailer group

Redevco gave an internal sustainability presentation

France

All tenants

A national enquiry was sent to collect carbon performance data

Turkey

All tenants

Tri-generation system was discussed: its benefits, what it is, how it works and its positive environmental impact

Redevco Corporate Responsibility Report 2009

47


Listening to and

learning

from our

key stakeholders C&A and Redevco have a long association as business partners, and given that increasing focus on sustainability requires even closer partnerships for success, our cooperation has grown closer in recent years. This includes, for example, the sharing of important data, which will help both C&A and Redevco to be able to measure environmental performance within the building and real estate area, with efficient asset management an important part of our overall CSR startegy. We see this relationship therefore as delivering a win for both C&A, Redevco in support of our commitment to sustainability.

Statement from a key stakeholder

Phil Chamberlain Head of Sustainable Business Development C&A

Our objectives and targets for 2010 and beyond Meet experts in the field of green leases Organise meetings with our main tenants in order to exchange views and ideas on improving the environmental performance of their stores and discuss green leases Review and analyse structure of tenant engagement at country level

48

By When 2010

2010

2010/2011

Central Europe - Austria Plan discussions with Unibail-Rodamco and C&A on sustainability refurbishment of SCS shopping centre

2010

Central Europe - Austria Continue to discuss green building in Graz with C&A

2010

Germany Continue green building working group and engage with several external companies (suppliers)

2010

Netherlands Continue working with tenants on discussing and agreeing on green covenant to collect data on environmental performance

2010

United Kingdom Work with our tenants - the actual consumers of the energy - to achieve carbon savings and efficiencies where possible

2010

Spain Discuss with tenants adding a non-binding ‘green annex’ to standard leases

2011

Redevco Corporate Responsibility Report 2009


Suppliers – sourcing responsibly Status

What we set out to do in 2009 Identify possibilities for including Corporate Responsibility issues and specific Business Integrity issues in supplier contracts

In progress

As a real estate investor and developer we rely on the services and products delivered by our supply base. It is important to have a responsible sourcing policy in place at a corporate and local level to ensure that purchasing fully considers environmental and social issues. The review of supplier contracts will remain an objective for the coming years. We will make a distinction between suppliers of office equipment and suppliers for development projects, contractors, etc. Since the impact of suppliers varies depending on their relationship with Redevco and the Corporate Responsibility issues concerned, a complete list of the different groups of suppliers will be drawn up, with a focus on the suppliers who have the greatest impact.

Our objectives and targets for 2010 and beyond

By When

Establish Responsible Sourcing Working Group

2010

Responsible Sourcing Working Group Select top 10 purchasing categories and develop responsible sourcing criteria for each category

2010

Review supplier contracts

2010/2011

The Netherlands Put into practice the green clause included in the contract with Fortrus, a maintenance management partner of Redevco Netherlands

2010/2011

Shareholder – close cooperation Redevco’s values and business principles correspond with those of our shareholder COFRA Holding AG. In 2009 COFRA appointed a Chairman for Corporate Responsibility to coordinate the group’s Corporate Responsibility activities. The Chairman works with the various professional communities within the group, including the HR community and environmental professionals, to encourage attention to business ethics and carbon emissions. In 2009 two main themes were identified as relevant for all businesses within the COFRA group, including Redevco. They are (1) creating uniform standards of ethical behaviour in the different Codes of Conduct and (2) the issue of carbon emissions. In 2009 various meetings were held with COFRA. All the business units, including Redevco, attended a COFRA workshop on strategic risk management associated with Corporate Responsibility. The purpose was to identify the most relevant issues for the different business units. The topics that were identified were fraud, corruption, business integrity and environmental issues such as carbon emissions. All these topics are already on Redevco’s Corporate Responsibility agenda.

Global Corporate Responsibility Committee Members of the Corporate Responsibility Working Group also sit on COFRA’s Global Corporate Responsibility Committee. This facilitates the exchange of best practice and the consistency of Corporate Responsibility plans and their implementation across all COFRA divisions. The team meets four times a year to discuss their local division Corporate Responsibility performance.

Redevco Corporate Responsibility Report 2009

49


Listening to and

learning

from our

key stakeholders

Society at large – being a responsible corporate citizen What we set out to do in 2009 Continue to engage in working groups and expert panels Identify other forms of engagement with the community Engage with local green building councils

Status Achieved In progress Achieved

We continued our membership of national and European shopping centre councils, in which we addressed and actively sought solutions for Corporate Responsibility issues in consultation with peers and lobby groups. We will expand our membership of national green building councils in the countries where they exist.

At corporate level we engaged with various institutes and initiatives.

50

What

Institution

Speaker presenting on ‘Retail Vastgoed: verandering in denkpatronen. Het zal toch echt anders moeten...’/ ‘Corporate Responsibility. High time for change’

-

NRW annually conference in the Netherlands

-

Seminar organised by Retail Bouw Management (RBM) in the Netherlands

-

Winkellocatiemarkt in the Netherlands

-

Expo Real in Germany

-

Real estate debate in the Netherlands

Various sustainability topics

ICSC Congress in Spain

Two lectures on sustainability in real estate

Amsterdam School of Real Estate

Various topics e.g. recycling real estate

ICSC International Advisory Committee Meeting in USA

Redevco Corporate Responsibility Report 2009


The following table gives examples of local engagement in general – not only related to Corporate Responsibility.

Region/Country

Institution

Short description

Central Europe

RICS group – professional body for qualifications and standards in land, property and construction

Active participation in discussions on business integrity

Verein zur Förderung der Qualität in der Österreichischen Immobilienwirtschaft

Participation in the foundation that promotes quality in the Austrian real estate business

IVBN – Association of Institutional Investors – Sustainability Task Force

- Discussions on integrity, sustainability and employee development - Ethical dilemma workshop

Provada

Redevco NL was moderator for forum on sustainability

The Netherlands

United Kingdom

Member of the British Property Federation Investment Property Forum

CNCC – French branch of ICSC

Permanent membership of commissions: member of the Sustainable Development Commission and of the Technical Commission

Green Lease conference in September 2009 organised by law firm Salans

Attendance

Statement from a key stakeholder Engagement. That was the word, which immediately came to mind as I read the Redevco Corporate Responsibility Report for 2008. The report clearly conveys the very important human measure. A company with a close team of employees, worldwide. Employees who accept their responsibility, dedicated and ethical. For me, this makes Redevco an example of a company setting the tone in terms of Corporate Responsibility. Not because it is sexy or because it is a hype, but from within. I would advise everybody to take notice of the Corporate Responsibility Report, and learn from it.

France

Linda Kruit Managing Director NRW (Dutch Council of Shopping Centres)

By When

Our objectives and targets for 2010 and beyond Germany Hold a presentation at Cleantech conference in Munich

2010

Germany Use trade fairs such as Expo Real and conference like ICSC, to interact with various stakeholders

2010

Central Europe Become founding member of Qualitätsverein

2010

Redevco Corporate Responsibility Report 2009

51


Annexes

About this report -

Data coverage

and

quality

This annual report covers the period January 1, 2009 through December 31, 2009. Where we include events which occurred after this period, we quote the date. The Corporate Responsibility Working Group exercised oversight on the production of the report. The information contained in this report was provided by local data handlers appointed by the Managing Directors. The report was reviewed and approved by the Managing Directors and the Board. This is the second report on our performance in the area of Corporate Responsibility and therefore our first opportunity to provide a full progress update on the first year since we published our first report in October 2009.

Environmental Data 2008

2009

Target

By when

28%

66%

90%

2013

- Industrial

27%

34%

90%

2013

- Offices

26%

78%

90%

2013

- Retail Box/Park/Supermarket

3%

70%

90%

2013

- Retail High Street

58%

82%

90%

2013

- Retail Shopping Centre

40%

66%

90%

2013

Redevco Occupied Offices

51%

78%

90%

2011

Development projects

n.a.

100%

100%

- Air travel

100%

100%

100%

- Company owned/leased cars

100%

100%

100%

60%

74%

95%

2010

Redevco始s Investment Portfolio

28%

66%

90%

2013

- Industrial

34%

36%

90%

2013

- Offices

41%

66%

90%

2013

- Retail Box/Park/Supermarket

7%

74%

90%

2013

- Retail High Street

55%

82%

90%

2013

- Retail Shopping Centre

29%

49%

90%

2013

Redevco Occupied Offices

9%

25%

90%

2011

Development projects

n.a.

100%

100%

n.a.

100%

Redevco始s Listed Buildings

n.a.

68%

90%

2013

- Industrial

n.a.

n.a.

n.a.

n.a.

- Offices

n.a.

64%

100%

2010

- Retail Box/Park/Supermarket

n.a.

100%

100%

2010

- Retail High Street

n.a.

72%

100%

2010

- Retail Shopping Centre

n.a.

0%

100%

2010

Data Coverage Energy Use & CO2 Emissions Redevco始s Investment Portfolio

Business & Commuter travel

- Commuter survey (response rate) Water Use

Other Environmental Issues Development projects Listed Buildings & Cultural Heritage

52

Redevco Corporate Responsibility Report 2009


Investment portfolio and Redevco occupied offices Environmental data for buildings, including Redevco’s investment portfolio and Redevco Occupied Offices, were processed, checked and compared with data for 2008 by the UK-based Building Research Establishment (BRE). We also asked that organisation for an external evaluation of the quality and coverage of the data. Since BRE was involved in the data collection process, its review should not be interpreted as an independent verification or assurance statement. Besides collecting detailed environmental data for our existing investment portfolio, we are also undertaking the major task of improving the reliability and accuracy of the data that were collected. For this purpose, we have joined the International Sustainability Alliance (ISA), through which we will closely monitor and benchmark our performance against peers. To ensure consistency in the long term, we have signed a three-year contract with BRE to evaluate the complete environmental footprint of all buildings owned, managed or occupied by Redevco. As most of our offices are rented from third parties, we are dependent on the cooperation of our landlords. In some countries, the collection of environmental data for 2009 was complicated by the fact that information could not be provided until October 2010.

Like-for-like data Like-for-like data on energy use & CO2 emissions encompass 140 properties. Properties with an annual change of more than approximately 40% are excluded in the like-for-like analysis. That is the case with 38 properties. The like-for-like water dataset encompasses 142 properties with an annual change of less than approximately 40%. By applying this rule, 46 properties were excluded from the like-for-like analysis. This is a clear point of attention for coming years to ensure the data is reliable and accurate.

Business & Commuter Travel We repeated our employee survey to calculate the commuter data in 2009. The response rate rose from 60% in 2008 to 74%, which also improves the accuracy of the estimated emissions related to commuter travel. The commuter survey was translated into more languages than in 2008 (Turkish, French, Dutch and German), which may have contributed to the higher response rate. The environmental footprint left by business and commuter travel was calculated in-house. The data for business travel were provided by local travel agencies. Consequently, the data do not include journeys that were not booked through travel agencies, i.e. all business journeys by taxi and private car and some train journeys. It is assumed that the vast majority of the business journeys in the calculations were booked through travel agencies. A software tool, developed by Redevco’s IT department, was used to collate data on commuter travel and to calculate the associated emissions. To calculate the carbon emissions related to business and commuter travel, the UK-based Defra 2008 conversion factors have been used. The emissions per employee are based on 295 employees. The number of employees is ten fewer than in 2008.

Development projects Following our policy, the environmental performance of our new developments exceeding 10 million Euros in construction cost spent, is included. For these developments we aim to secure a BREEAM certificate with a ‘Very Good’ rating. A BREEAM assessment is carried out by an independent third-party assessor. The BREEAM rating is based on the performance for each of the nine assessment areas – Energy, Water, Transport, Management, Health & Wellbeing, Land Use & Ecology, Pollution, Materials and Waste. In 2009 Redevco completed two new development projects and both were awarded a BREEAM certificate with a Very Good rating. A development project in the United Kingdom, - in London – was awarded two BREEAM certificates, one rated ‘Good’ and one rated ‘Very Good’. The performance of these projects is disclosed in sections ‘Energy Use & CO2 emissions’, ‘Water Use’ and ‘Other Environmental Issues’.

Total GHG Emissions by weight and scope The GHG Protocol defines direct and indirect emissions as follows: Direct GHG emissions are emissions from sources that are owned or controlled by the reporting entity. Indirect GHG emissions are emissions that are a consequence of the activities of the reporting entity, but occur at sources owned or controlled by another entity. The GHG Protocol further categorizes these direct and indirect emissions into three broad scopes: • Scope 1: All direct GHG emissions. • Scope 2: Indirect GHG emissions from consumption of purchased electricity, heat or steam. • Scope 3: Other indirect emissions, such as the extraction and production of purchased materials and fuels, transport-related activities in vehicles not owned or controlled by the reporting entity, electricity-related activities (e.g. T&D losses) not covered in Scope 2, outsourced activities, waste disposal, etc.

Redevco Corporate Responsibility Report 2009

53


GHG emissions by weight (tCO2e) and scope (1, 2 and 3)

Scope 1

Scope 2

Scope 3

237

403,499

Redevco’s investment portfolio Energy use Redevco occupied offices

120

426

- Energy use Redevco offices in Redevco owned properties –/–

(237)

Business travel - Air - Company owned/leased cars

574 394

- Rail

12

Commuter travel - Private cars - Company owned/leased cars

68 210

- Public transport

51 724

426

404,204

Investment portfolio (kWh)

Redevco occupied offices (kWh)

Total energy use by fuel source (kWh)

Electricity

479.299.545

668.471

479.968.016

Gas

191.516.659

432.665

191.949.324

Fuel oil

13.671.325

29.837

13.701.162

District heating

42.816.115

169.260

42.985.375

District cooling

1.968.184

11.100

1.979.284

Total energy use by fuel source (kWh) For Redevco’s Investment Portfolio and offices occupied by Redevco, the energy use by fuel source (kWh) was calculated by BRE. The amounts are not extrapolated and relate to 66% (by GLA) of Redevco’s Investment portfolio and 78% of Redevco Occupied Offices. The energy use related to business & commuter travel is not recorded.

Social data The basic figures on the number of employees, data on FTEs, the number of women employed and the age distribution of the workforce, training, corporate giving, values and engagement with stakeholders, etc. were supplied by the HR Department at Head Office level. The Managing Directors provided data on corporate giving, local communities and engagement with stakeholders through the local offices. The reference date is 31 December 2009. The results of the Hay survey were processed by the Hay Company, with February 2009 as the reference date.

Our objectives and targets for 2010 and beyond

54

By When

Redevco wants to increase the availability of Corporate Responsibility data on all issues see table on enviromental data

2010

Prepare and conduct internal audits

2010

Prepare and conduct third party audit

2013

Achieve GRI application level B+

2011

Collating data by means of the ISA environmental data base of investment portfolio and Redevco occupied offices

2010

Redevco Corporate Responsibility Report 2009


The objectives regarding data coverage and quality of this report are the same as those of last year. The intention was to continue gathering data about assets over which we have direct and indirect control and influence, to establish a structure to improve the quality of internal reporting and to increase the accuracy and completeness of the data provided . We find that the quality and robustness of the data collection process needs to improve further to give us a clearer picture of the environmental performance of our portfolio and allow us to set detailed targets and drive continuous improvement.

Quality statement by BRE on a selection of environmental data BRE was asked to gather the data on energy and water consumption for assets owned and occupied by Redevco in 2009 and to analyse the level of carbon emissions, energy and water efficiency by validating and assessing the quality of the data. The data-collection process was divided into different stages. In order to ensure that all relevant assets were included in the analysis, information from the company’s own Property Management Systems was used to identify all assets owned and occupied by Redevco during the reporting period. Assets that were only partly owned/occupied were identified so that the consumption data could be adjusted accordingly. The assets’ energy and water consumption data, as well as other relevant environmental information, were then collected. The emphasis was on the design of the data collection methodology, primarily with a view to identifying the types of energy sources used by assets, to allow for the identification of full versus partial data availability. Validation was performed to identify potential mistakes during data entry and asset allocation by checking the data entered against the previous year’s reported consumption and against the asset area, to identify inconsistencies and “rough” data. Any such data found was either cleaned or rejected from the analysis as unreliable. This process is believed to have substantially increased the quality of the data for the analysis. Once the environmental information was collected and validated, its completeness was assessed. Assets for which no data on water consumption were available were identified and excluded from the water performance analysis. Similarly, assets for which there were no reports or only partial reports on consumption were also excluded from the energy analysis. These procedures led to the inclusion of 57% (by number) of all Redevco-owned assets in the energy analysis and 61% (by number) in the water analysis; 63% (by number) of all Redevco-occupied assets were included in the energy analysis and 37% (by number) in the water analysis. For the evaluation of scope emissions, the analysis used the “Categorizing GHG Emissions Associated with Leased Assets - Appendix F to the GHG Protocol Corporate Accounting and Reporting Standard – Revised Edition June 2006, Version 1.0”. Scopes 1 and 2 included some upstream emissions from fuel use which are normally assigned to Scope 3 because the carbon-emission factors used included upstream emissions which could not be separated out. Relevant and up-to-date emission factors have been applied to the data supplied. The electricity emission factors used are based on EcoInvent 2007 emission factors for national electricity grids. For countries not covered in the EcoInvent database, the following assumptions were made: • India’s electricity emission factor is equivalent to China’s • Hong Kong’s electricity emission factor is equivalent to China’s • Turkey’s electricity emission factor is equivalent to Greece’s

Lessons learned and recommendations Data for one and the same asset were sometimes collected from different sources (for example, Redevco’s property management system and information provided by tenants). In some instances, discrepancies were discovered between the data reported from the different sources for the same asset, particularly as regards asset classification (type) and reported areas. This has introduced a degree of uncertainty in analyses where these data are involved. To address this problem in future, further validation will be introduced to cross-reference these discrepancies as they occur, and data agreed and cleaned between the different sources. In a few instances, the analysis appeared to suggest that the reported asset areas might not correspond with the areas for the reported energy and water consumption. The two might in fact have differed even within an asset. This could have been a result of breaking down the data collection into different stages, one for the information about the asset and another for the environmental information. We believe that these issues were identified in most cases (because the results in terms of efficiency by area were either too high or too low) and suspect cases were excluded from the analyses. To overcome this problem, we propose collecting additional items of data as follows in future: in addition to the asset area, which needs to be known to assess the full area of the portfolio, when collecting the environmental data emphasis should be placed on including the “area of energy consumption” and/or “area covered by the water consumption”. It is not clear whether data providers understood that these could be different and therefore energy and water consumption need to correspond to a specific area, which may be different from the total asset area. This is not believed to have been a widespread problem, since data were produced at different levels (for the total asset and per individual lease within assets), but introducing additional clarity may make the data collection and validation process easier for all parties. BRE Global

Redevco Corporate Responsibility Report 2009

55


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