Material sustainability matters
Material sustainability matters
Hektar REIT acknowledges the material sustainability matters by taking into account the potential risk in our business activities in relation of our social and environmental needs and the economic factors impacting the real estate industry. Our material areas were also identified based on inputs from both internal and external stakeholders through observation and enquiries received. An internal materiality assessment was carried out to map out our sustainability matters in the steps described in the diagram below.
Aspects considered when identifying material items:
- Strategic policies
- Considerations discovered during stakeholder surveys and interviews
- Risk Management program
- Changes in internal and external operating environments including trends
- Industry Best Practices and benchmarking
- Framework of Sustainable Development
- Principles regarding the scope of reporting
Upon completing all four steps, the list of sustainability matters material to our business and to our stakeholders can be summarized as follows:
Sustainability goals: resilient assets, robust governance and relevant investments
Prioritising optimal health and well-being by
- ensuring that employees lead a balanced lifestyle and encouraging healthy activities;
- organising regular staff gatherings to promote bonding and appreciation; and
- continuous education provided to employees, tenants, shoppers and the community.
Prioritising safety of employees, tenants, and shoppers by
- maintaining best practices in health and safety management to the benefit of tenants, contractors, customers, and employees;
- maintaining zero fatalities at the workplace;
- periodically reviewing safety procedures and responses towards safety issues; and
- educating tenants and shoppers on safety issues and emergency responses.
Observing a high standard of corporate conduct which is integral to ensuring the sustainability of the organization’s business as well as safeguarding shareholders’ interests and maximizing long-term shareholders value. We seek to operate in a manner that fosters open stakeholder engagement and demonstrates best practices in risk management. This means
- adherence to corporate governance and the practice of high standards of discloses, bilateral communication, manage risk and internal auditing; and
- implementing a whistle-blowing reporting program.
Reducing the environmental impact by continuing initiatives and introducing new measures to reduce impact on the environment such as energy and water conservation, water management and paper conservation with the aim of
- achieving a minimum of 10% reduction in energy consumption across our investment portfolio on a like-for-like basis by the end of 2022;
- introducing an energy benchmarking system across our investment portfolio;
- engaging with our new and exiting tenants within our multi-tenant buildings to encourage optimum operational efficiency of their premises; and
- reducing wastage at our offices, including defaulting to double-sided, black and white printing, encouraging the use of e-mails, e-fax and encouraging employees to reduce paper and paper wastage.
Maintaining financial performance and governance by
- ensuring sustainable returns to unitholders, stability in capital structure and continuity of growth in DPU through our strategies; and
- monitoring and measuring our resource consumption to identify productivity improvements.
Engaging and contributing to the community with the aim of
- supporting the communities in which we operate; being responsible neighbors and developing and maintaining strong relationships;
- collaborating with tenants in organizing and promoting community projects;
- understanding our roles as place makers by focusing on creating opportunities in the areas of our assets, organizing relevant events and becoming venue sponsors to enable community projects; and
- engaging with local authorities and supporting the community campaigns.
Ensuring a higher level of tenant satisfaction by
- analyzing information received from tenant feedback from marketing events and their correlation with tenant performance;
- collation and analysis of data from tenant survey results;
- strengthening relationship with tenants by educating and engaging tenants with periodic and annual events; and
- addressing key topics to tenants such as building maintenance and visitor traffic.
Reducing inequalities in employment, training, career advancement and top positions by
- providing an inclusive, open environment for our employees with equal opportunities for individuals and teams to realize their full potential and enable the business to meet its strategic objectives; and
- commitment to having an appropriate level of diversity that reflects the nature of the operations which best supports the achievement of our objectives.
Our sustainable procurement consists processes involving search acquisition and purchase of goods and services from external sources, predominantly via a competitive tender bidding process through
- fair opportunities: encouraging local procurement and Small-Medium Enterprise (SME) as our supply chain partners; and
- developing a competitive and sustainable supply chain by maintaining or improving the procurement process through competitive markets.
An analysis of the data from recent two years was conducted to determine our performance in achieving these goals and qualified areas for improvement through the respective management approaches employed. We have reviewed its relevance to our overall sustainability performance to help improve our list of material factors for the next reporting cycle.