Sustainability report 2021

Material sustainability matters

 

Material sustainability matters

Hektar REIT defines material sustainability matters as areas with significant ESG impact on Hektar REIT and its stakeholders. Hektar REIT conducted a comprehensive stakeholder engagement exercise to gather insight on the relative importance of specific economic, environmental, social and governance issues.

The methodology

We commissioned an external consultant to conduct a comprehensive study of the most material aspects of our sustainability programme in the last quarter of 2021. An impartial external party was chosen to secure the anonymity of the respondents. We sought feedback from representatives of all major stakeholder groups:

We asked stakeholder representatives to rate the importance they placed on 17 areas of sustainability. We asked respondents to indicate how important each criterion was, from a scale of 'very unimportant' (1) to 'very important' (5). A 5-point Likert Symmetric Scale was chosen so respondents could specify their level of agreement with (3) being neutral.

Sustainability Pillars Focus Areas What it means to Hektar REIT GRI Topics Boundaries
Economic Financial Returns & Stability Delivering healthy financial returns and growth potential for the benefit of unitholders
  • Economic performance
Shoppers, Tenants and prospects, Property manager, Investment community, Industry
  Corresponding UNSDGs
Regulatory Compliance Ethical business conduct and complying with all applicable social and environmental regulations including anti-bribery and corruption
  • Anti-corruption
  • Anti-competitive behaviour
  • Environmental compliance
  • Socioeconomic compliance
Tenants and prospects, Property manager, Investment community
  Corresponding UNSDGs
Sustainable Supply Chain Management Integrating social and environmental factors into the supply chain
  • Procurement practices
  • Supplier environmental assessment
  • Supplier social assessment
Tenants and prospects
  Corresponding UNSDGs
Industrial Advancement & Nation Building Advancing the real estate industry and contributing to economic growth through Hektar REIT's operations
  • Indirect economic impacts
Property manager, investment community and industry
  Corresponding UNSDGs
Environment Energy & Climate Change Managing energy and greenhouse gases effectively to reduce them whenever possible
  • Energy
  • Emissions
Tenants and prospects, Property manager, Joint Management Body and Management Corporation
  Corresponding UNSDGs
Waste Minimising all types of waste and recycling whenever possible
  • Waste
Shoppers, Tenants and prospects, Property manager, Joint Management Body and Management Corporation
  Corresponding UNSDGs
Water Using water efficiently
  • Water and effluents
Shoppers, Tenants and prospects, Property manager, Joint Management Body and Management Corporation
  Corresponding UNSDGs
Social Diversity, Equal Opportunity & Non-Discrimination Promoting diversity and equal opportunities and eliminating all forms of discrimination in the workplace
  • Diversity and equal opportunity
  • Non-discrimination
Employees
  Corresponding UNSDGs
Community Engagement and Contributions Having a positive influence on local communities through charitable contributions and Corporate Social Responsibility initiatives while maintaining active engagements with them
  • Local communities
Tenants and prospects, Property Manager, Community, Joint Management Body and Management Corporation
  Corresponding UNSDGs
Human Rights Protecting all aspects of human rights including protecting staff welfare and ensuring no child or forced labour
  • Human rights assessment
  • Rights of indigenous peoples
  • Security practices
  • Child labour
  • Forced labour
Employees, Joint Management Body and Management Corporation
  Corresponding UNSDGs
Training and Development Providing training and education to employees to expand their knowledge base for career development
  • Employment
  • Training and education
Employees
  Corresponding UNSDGs
Occupational Health & Safety Keeping all workers safe and free from injury and both non-communicable and infectious diseases
  • Occupational health and safety
Property manager, Employees, Joint Management Body and Management Corporation
  Corresponding UNSDGs
Public Safety and Security Enhancing security measures and monitoring infrastructure
  • Customer health and safety
Shoppers, Tenants and prospects, Property Manager, Community, Joint Management Body and Management Corporation
  Corresponding UNSDGs
Tenants' Satisfaction Ensuring high levels of tenants' satisfaction
  • Non-GRI topic
Tenants and prospects
  Corresponding UNSDGs
Customers' Satisfaction Ensuring high levels of shoppers' satisfaction
  • Non-GRI topic
Shoppers
  Corresponding UNSDGs
Customer Privacy and Cybersecurity Protecting customers' and tenants' privacy through safe data management
  • Customer privacy
Shoppers
  Corresponding UNSDGs
Responsible Operations Being a responsible and considerate asset owner and manager by offering facilities such as disabled access, mothers' rooms and shuttle transportation services
  • Non-GRI topic
Shoppers, Tenants and prospects, Property manager, Investment community, Community, Industry, Joint Management Body and Management Corporation
  Corresponding UNSDGs

We discovered a natural skew in the results, with each stakeholder group not represented equally. We received the most responses from our shoppers and employees with fewer received from 'government, regulators, trustees, local councils & other local authorities', 'tenants & prospects' and 'community & NGOs'.

We calculated an average score for all areas within each stakeholder group to rectify the sample imbalance before obtaining an average rating from all 11 stakeholder groups.

We also asked members of our Board of Directors to complete the survey. Their views represented Hektar REIT.

The results

We considered all scores of 3 as medium importance. Stakeholder scores ranged from 4.24 to 4.61; Hektar REIT's was between 3.80 and 5.0. All issues are important to some degree. We adopted a scale from high to highest as even the lowest scores fell into the important category. The materiality assessment results are presented in the following materiality matrix.