Sonae Sierra
Review- of Progress Against 2011 CR Actions
Report
March 2012
Contents
1
2
3
4
5
Introduction ............................................................................................................................................................ 2
Methodology........................................................................................................................................................... 3
Summary of progress ............................................................................................................................................ 5
Comment on progress against each 2011 CR action ......................................................................................... 6
List of evidences reviewed ................................................................................................................................. 17
COPYRIGHT © JONES LANG LASALLE IP, INC. 2012. All Rights Reserved
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1 Introduction
In addition to the 36 public targets published in Sonae Sierra’s CR Report 2010, Sonae Sierra also defined 69
Corporate Responsibility (CR) actions to be achieved before the end of 2011. This report, which has been
prepared by Jones Lang LaSalle’s Upstream Sustainability Services team, is intended to provide an external
review of Sonae Sierra’s progress towards meeting these 69 CR actions. It is divided into four main sections:
1. Methodology.
2. Summary of progress.
3. Comment on progress against each CR action.
4. List of evidences reviewed.
A report on Sonae Sierra’s progress towards meeting its 2011 CR targets has also been developed and is
available in the CR section of the Company’s website.
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2 Methodology
The level of progress achieved towards each action has been established by scrutinising documented evidence
provided by Sonae Sierra (see section 5 for further details). In cases where actions were applicable to around 20
or more different sites or other entities, a sampling approach was used, whereby random samples of additional
evidences were requested from a summary list of items. Where further explanations were deemed necessary,
direct communication was made with individuals within the Company who were responsible for completing the
action. The methodology used in order to determine how complete each action is, as a percentage, varies
according to the type of action set.
Performance actions
Performance actions are those concerned with achieving performance against a standard (e.g. ISO 14001, or
relevant government standards) or a threshold of performance (e.g., a recycling rate).
These actions have been evaluated and awarded a percentage towards completion. This is calculated by dividing
the actual level of performance achieved by the level of performance which the company was aiming to achieve
in 2011.
Of the actions set for completion in 2011, eight out of 69 were considered to be ‘performance’ related actions.
Performance action evaluation – worked example
Action: Reduce the proportion of total waste (by weight) that is sent to landfill by one percentage point, across our
offices.
Evaluation: In 2011, the landfill rate (by weight) across the main corporate offices was 11%, compared to 13% in
2010, meaning that the landfill rate had been reduced by two percentage points. The action was therefore
evaluated as 100% achieved. If the landfill rate had not been reduced by one percentage point or more in
comparison with the 2010 result, the action would have been evaluated as 0% achieved.
Management actions
Management actions relate to a management process or procedure. Management actions may contain
quantifiable elements, but do not measure actual performance relative to a threshold or standard.
Upon setting management actions, Sonae Sierra anticipates the steps required to achieve each action. For each
step, a weighting (%) is set on an “effort” basis by applying professional judgement. This weighting determines
the extent to which the completion of each step contributes to the overall achievement of the action. Management
actions have, therefore, been awarded a percentage of achievement in view of the evidence towards completion
received by Jones Lang LaSalle in relation to each step necessary for the whole action to be completed, and in
accordance with the weighting (%) attributed to each step. In cases where management actions are applicable to
more than one site, the extent of completion of each step by site is considered in order to establish the overall
rate of action achievement, as in the example below.
Of the actions set for completion in 2011, 61 out of 69 were considered to be management actions.
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Management action evaluation – worked example
Action: Improve the wastewater networks at four shopping centres in Portugal.
Evaluation: At the beginning of 2011, Sonae Sierra established the following ‘steps’ and ‘weightings’ to guide the
implementation of the action:
1.
Identify the precise works that should be implemented in each centre in 2011 - 10% weighting
2.
Select service providers and award the contract - 10% weighting
3.
Commence the works required to improve wastewater networks - 10% weighting
4. Complete the works needed to improve wastewater networks - 70% weighting
Wastewater works that should be implemented were identified at the following four shopping centres in Portugal:
ArrábidaShopping, CoimbraShopping, MadeiraShopping, and Via Catarina. Service providers were selected at all
sites, and contracts awarded and all works were carried out before the end of 2011.
This action was considered to be 100% achieved since all steps had been completed in all applicable shopping
centres. If only three out of four shopping centres had achieved the action, it would have been considered as 75%
achieved. If all shopping centres had achieved only steps 1 and 2, it would have been considered as 20%
achieved.
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3 Summary of progress
3.1
Summary of progress against 2011 CR actions
In 2011, Sonae Sierra fully achieved 54 out of 69 CR actions (78%) and partially achieved 11 actions (16%). Two
actions (3%) were not achieved, and two actions (3%) were considered to be not applicable.
Figure 1: Pie chart
2 2 21
2
0%
6
1-25%
26-50%
51-75%
76-99%
100%
54
N/A
Figure 2: Summary of progress against 2011 CR actions, by impact area
CR Impact Area
Number
of actions
0%
1-25%
26-50%
51-75%
76-99%
100%
N/A
Environmental
Management
Energy and Climate
1
-
-
-
-
-
-
1
10
-
1
-
-
1
8
-
Water
14
-
-
-
2
3
8
1
Waste
Biodiversity and
Habitats
Suppliers
10
-
-
-
-
1
9
-
2
1
-
-
-
-
1
-
5
-
-
1
-
-
4
-
Tenants
Communities and
Visitors
Employees
2
-
-
-
-
-
2
-
4
-
-
-
-
-
4
-
7
-
-
-
-
-
7
-
Safety and Health
9
1
-
-
-
1
7
-
Risk Management
5
-
1
-
-
-
4
-
GLOBAL TOTAL
69
2
2
1
2
6
54
2
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4 Comment on progress against each 2011 CR action
The following table provides a comment on the extent of accomplishment for each action. It should be noted that
CR actions are applicable only to shopping centres which are owned or co-owned by Sonae Sierra, and not those
managed by Sonae Sierra on behalf of other owners.
2011 CR actions
%
achievement
Comment on extent of action achievement
ENVIRONMENTAL MANAGEMENT
Foresee BREEAM Good certification in a
new project with Investment Proposal
approved in 2011.
N/A
This action was not applicable as there were not any new Investment
Proposals approved for new projects in 2011.
ENERGY AND CLIMATE
Evaluate the performance of Green Travel
Plans at shopping centres where these have
been developed to date by reviewing
whether the use of different modes of
transport has increased at these centres.
Analyse zero emissions vehicles available in
the market and make a proposal to the
CRSC in order to ensure that 20% of fleet
renewal (Portuguese company's share
service vehicles) is zero emissions, by the
end of 2012.
Install electric car battery charging systems
in shopping centre car parks in Portugal.
Identify all options available for renewable
energy at Gli Orsi in Italy, make a cost
benefit evaluation, and establish a roadmap
for implementation.
Liaise with Sonae Group to submit a public
response to the Carbon Disclosure Project
100%
This action was applicable to Centro Vasco da Gama in Portugal; GranCasa
and Plaza Mayor in Spain; Valecenter, Gli Orsi and Freccia Rossa in Italy and
Alexa in Germany. Each shopping centre carried out a study analysing the
change in visitors' modes of travel. At most shopping centres the use of
sustainable modes of transport, such as walking, cycling or using the train, had
increased, although at one centre private car usage remained particularly high.
100%
After receiving proposals from different service providers, including available
options for different cars and contract durations, two potential scenarios were
presented at the Corporate Responsibility Steering Committee meeting on 13
September 2011. The CRSC elected to purchase two electric cars for 2012,
which is equivalent to 20% of the vehicles used as shared service vehicles.
19%
Sonae Sierra set up meetings with suppliers of electric car battery charging
systems covering all Portuguese shopping centres. However, an agreement
could not be reached for all shopping centres as the Return On Investment for
setting up this system is currently poor due to the lack of available electric cars
on the market. Sonae Sierra therefore decided to go ahead with installing
electric car battery charging systems at just four centres: Centro Colombo;
NorteShopping; GaiaShopping and Centro Vasco da Gama (representing 19%
of the shopping centre portfolio in Portugal).
100%
A renewable energy feasibility study was carried out at Gli Orsi by service
provider Ambiente Italia, including cost benefit analyses for solar thermal, solar
photo-voltaic and geothermal energy options. Sonae Sierra developed a
Renewable Energy Action Plan for 2012 which includes actions for further
investigation of all three of these options.
100%
This year Sonae Sierra contributed for the first time to the Sonae Group's
Carbon Disclosure Project submission, providing comprehensive information
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(CDP).
on CR policies, goals, achievements and GHG emissions.
Implement the energy saving measures that
were approved for 2011 at the Athens office.
100%
The only energy saving measures which were approved for 2011 at the Athens
office were the replacement of electric ballasts and the purchase of equipment
to reduce computers’ energy consumption. Both of these measures were
implemented.
Install the equipment necessary to monitor
individual energy uses (individual meters) at
La Farga in Spain and Freccia Rossa in Italy.
100%
Energy meters were installed to monitor individual energy uses at both La
Farga and Freccia Rossa.
100%
This action was applicable to Loop5 in Germany. An energy audit was
completed there by an external service provider and the energy audit report
was delivered to Sonae Sierra in December 2011.
Implement the recommendations made by
energy audits and other rationalisation
measures at shopping centres where audits
have been undertaken.
91%
This action was applicable to 11 shopping centres. The approved
recommendations of the energy audits were implemented at ten of these,
meaning this action was 91% achieved. The measures included: installing
lighting sensors; improving the efficiency of boilers; replacing obsolescent
chillers; adjusting controls on Building Management Systems, and replacing
electric armour in car parks. The target was not achieved at Valle Real in
Spain, as the investments required to implement the recommendations were
not approved by the shopping centre owners.
Conclude the implementation of free-cooling
systems at Parque Atlântico and
MadeiraShopping in Portugal.
100%
Both Parque Atlântico and MadeiraShopping successfully concluded the
implementation of free-cooling systems during 2011.
100%
The feasibility study carried out at Gli Orsi indicated that the shopping centre
had enough storage space to accommodate a water treatment unit to reuse
water from the cooling towers. The study provided a list of required equipment
along with costing, which was subsequently included in Gli Orsi’s 2012
Investment Plan.
55%
A system was installed to reuse water from the cooling towers at
LoureShopping. At Parque D. Pedro Shopping, approval was given for similar
works to go ahead in October 2011, but the supplier was unable to secure the
equipment needed before the end of 2011. The project is now scheduled for
completion by May 2012. Full completion of the project at LoureShopping was
equal to 50% achievement of this action, and the steps taken at Parque D.
Pedro Shopping accounted for the additional 5%.
Perform energy audits in sites where these
have not been carried out within the last six
years.
WATER
Perform a study to look for opportunities to
reuse the water in cooling towers at Gli Orsi
in Italy.
Implement a water reuse system in cooling
towers at LoureShopping in Portugal and
Parque D. Pedro Shopping in Brazil.
Implement alarms for water leaks through
the Building Management System (BMS) at a
further six shopping centres.
100%
During 2011, Sonae Sierra installed alarms for water leaks at the following six
shopping centres: CoimbraShopping, LoureShopping and GuimarãeShopping
in Portugal; Valecenter in Italy and Parque D. Pedro Shopping and Shopping
Metrópole in Brazil. This will help building managers to spot and fix water leaks
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as rapidly as possible, reducing wasteful water consumption.
Perform water audits at sites where these
have not been carried out within the last six
years.
100%
This action was applicable to Loop5 in Germany. A water audit study was
performed at Loop5 by an external service provider in October 2011. The
water audit report was reviewed by Sonae Sierra and some actions proposed
for implementation in 2012.
Improve the landscape irrigation system in
order to lower water consumption at
CascaiShopping in Portugal.
100%
CascaiShopping implemented the SMART H 2 0 intelligent irrigation system in
order to lower water demand for irrigation.
N/A
This action was considered not applicable as no new shopping centres were
inaugurated during 2011.
For new shopping centres with green areas,
guarantee that the plants used are ones that
need less water.
At shopping centres which performed water
audits in 2010, implement at least 75% of
water audit management recommendations
and develop a four-year plan to implement
the remaining ones (including management
and investment measures).
At shopping centres which performed water
audits before 2010, implement the
recommendations from audits according to
the action plans.
Continue to install the necessary
infrastructure to measure and monitor
individual water uses separately at shopping
centres where this was not already
completed in 2010.
Develop the project to implement rainwater
harvesting system at GaiaShopping in
Portugal.
100%
This action was applicable to GaiaShopping; MadeiraShopping;
NorteShopping; MaiaShopping and 8a Avenida in Portugal and Gli Orsi in Italy.
All six shopping centres implemented over 75% of the approved water saving
recommendations in 2011. Where applicable, action plans were developed to
implement the remaining ones. Measures implemented in 2011 included:
installing flow reduction devices; fitting leak prevention devices on irrigation
systems; replacing water meters; installing water reuse systems and raising
awareness about efficient water use.
85%
This action was applicable to ten shopping centres. Eight out of ten
implemented all approved water saving recommendations. One shopping
centre, Alexa in Germany, did not implement any recommendations in 2011
(works were postponed to 2012). Another shopping centre, Parque D. Pedro
Shopping, implemented one out of two applicable actions. The action was
therefore calculated as being 85% achieved overall. Recommendations that
were implemented included: installing of sensor taps and waterless urinals;
replacing plants with varieties that require less water; fixing leaks; regulating
WC flushes; repositioning water tanks, and holding meetings to raise
awareness of water use.
70%
This action was applicable to three shopping centres: 8a Avenida in Portugal;
La Farga in Spain and Alexa in Germany. 8a Avenida and La Farga both
installed meters to monitor individual water uses in 2011. However, at Alexa,
although a contractor was appointed to perform the work required, the
installation of the water meters was postponed to April 2012. Considering that
the action was fully completed at two centres and one first step was taken at
the third, overall it was considered to be 70% achieved.
80%
A study was completed to evaluate the feasibility of implementing a rainwater
harvesting system at GaiaShopping. However, the final step of this action
(which carried a 20% weighting), which was to include the costs of installing
the system in GaiaShopping’s 2012 Investment Plan, was not completed.
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Report on water collected from rainwater
harvesting systems where these are
implemented.
80%
This action was applicable to five shopping centres: Centro Colombo in
Portugal; Freccia Rossa and Gli Orsi in Italy; Pantheon Plaza in Greece and
Shopping Plaza Sul in Brazil. Water collected through rainwater harvesting
systems was reported and verified by Deloitte for all shopping centres except
for Pantheon Plaza in Greece, where reliable data could not be obtained.
Since the action was completed at four out of five applicable shopping centres,
it was considered 80% achieved overall.
Run the new version of the World Business
Council for Sustainable Development
(WBCSD) Global Water Tool and update the
conclusions of the study performed in 2010.
100%
Sonae Sierra re-ran the WBCSD Global Water Tool and found out that no
significant changes affected the 2010 results.
Improve the wastewater networks at four
shopping centres in Portugal.
100%
Improvement works were carried out on the wastewater systems at four
shopping centres in Portugal: Via Catarina; MadeiraShopping;
CoimbraShopping and ArrábidaShopping.
100%
All countries carried out assessments of wastewater quality at their shopping
centres and held a meeting to discuss the results. For those shopping centres
where corrective actions were required, action plans were put together to
ensure that wastewater effluent will comply with Sonae Sierra’s standards in
future.
100%
Feasibility studies were carried out to assess the potential of installing pay-asyou-throw waste systems in Portugal, Spain, Italy and Brazil. In Portugal and
in Italy, Sonae Sierra will consider the possibility of setting up pilot systems
starting in 2012 and 2013 respectively.
100%
In 2011, Sonae Sierra implemented improvements to waste infrastructures at
GuimarãeShopping and Centro Vasco da Gama in Portugal. At
GuimarãeShopping this involved increasing the capacity of the waste
separation room, and at Centro Vasco da Gama this involved replacing the
food court service station containers.
85%
Pátio Brasil Shopping implemented all approved recommendations of the
waste characterisation study, which related to labelling of waste containers.
Shopping Campo Limpo implemented two out of three approved
recommendations relating to provision of containers for different types of
waste. However the third recommendation was not implemented. Overall, this
action was considered to be 85% achieved.
Study what actions need to be taken in each
country to ensure that all shopping centres’
wastewater complies with the Sonae Sierra
standard.
WASTE
Evaluate the necessary changes in tenants
contracts; common charges; SAP, etc. and
the feasibility of the installing pay-as-youthrow waste systems in Portugal, Spain, Italy
and Brazil.
Improve waste infrastructures at two centres
in Portugal.
For each shopping centre where waste
characterisation studies have been
performed, Shopping Campo Limpo and
Pátio Brasil Shopping, implement approved
recommendations according to the action
plans.
Investigate the possibility of introducing onsite composting facilities at Luz del Tajo in
Spain.
100%
Sonae Sierra investigated the possibility of introducing on-site composting
facilities at Luz del Tajo. The system was deemed to be feasible and was
approved for installation in 2012.
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Reduce the proportion of total waste (by
weight) that is sent to landfill by one
percentage point, across our offices.
100%
In 2011, the landfill rate (by weight) across the main corporate offices was
11%, compared to 13% in 2010, meaning that the landfill rate had been
reduced by two percentage points.
Identify the equipment that has to change in
each main corporate office in order to reduce
the use of paper (i.e., by printing on both
sides) and evaluate how much this would
cost.
100%
Sonae Sierra assessed the printers and photocopiers in all corporate offices to
see whether equipment already had the capacity for double-sided printing, or
whether new equipment needed to be purchased. All equipment in Italy,
Germany and Romania was identified as already having the capacity for
double-sided printing. For Portugal, Spain and Greece, Sonae Sierra has
evaluated the costs of installing alternative equipment. Due to the high costs of
replacing equipment, a proposal was approved to carry out a full cost-benefit
analysis in 2012 and to develop a business plan for optimising all IT
equipment. In Brazil, the two remaining pieces equipment which did not have
the capacity for double-sided printing were replaced with printers with this
capacity.
Reduce the total amount of paper consumed
by worker by 1%, compared to 2010.
100%
In 2011, Sonae Sierra reduced paper consumption per employee by 15% in
comparison with 2010.
100%
A waste characterisation study was performed at the São Paulo office. It was
found that there were opportunities to reduce waste sent to landfill by
improving the separation of recyclable waste. This could improve the recycling
rate by 10%.
100%
All eight main corporate offices carried out campaigns to raise awareness
about the importance of waste recycling. The campaigns involved actions such
as: displaying posters and photographs about recycling; carrying out training
sessions; informing employees about recycling guidelines; holding a
competition to make Christmas decorations from recycled materials, and
providing data on existing recycling rates to motivate employees to improve
performance in future.
100%
All applicable offices investigated options for recycling organic waste. In the
Athens and São Paulo offices, very little organic waste is produced, so it was
concluded that a separate collection would not be feasible. At the Bucharest
and Düsseldorf offices, the building service suppliers unfortunately will not
collect organic waste. In Milan, the city council will not collect organic waste.
In Madrid, facilities are not available to collect organic waste separately but it
is sent to a plant where it is separated and treated through composting or
anaerobic digestion.
Perform an internal waste characterisation
study at the São Paulo office in order to
obtain the proportion of recyclable waste that
is still sent to landfill and analyse the
possibility of collecting new waste streams.
Hold an awareness event or campaign in
each main corporate office to raise
awareness about the importance of waste
recycling.
Investigate the possibility of collecting
organic wastes from kitchens at our offices in
Athens, Bucharest, Düsseldorf, Madrid,
Milan and São Paulo.
BIODIVERSITY AND HABITATS
Evaluate and plan the implementation of
sensible recommendations in this area from
the Ecosystem Services Review performed
in 2010.
0%
This action was not performed in 2011.
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For each operational shopping centre and
projects under development where a
Community Advising Panel (CAP) existed
before 2011, include in one CAP meeting
one topic dedicated to land use and
biodiversity protection.
100%
In 2011, all shopping centres and projects under development which had a
CAP in place before 2011 included a discussion dedicated to land use and/or
biodiversity protection in one CAP meeting.
100%
Sonae Sierra gathered information about recycled content in all materials that
it plans to use in the Boulevard Londrina Shopping development project. Due
to the nature of the construction works which took place in 2011, the most
relevant materials were steel and concrete used for the foundations. Sonae
Sierra carried out an analysis concluding that the steel in the foundations
contained 72% recycled materials and the concrete in the foundations
contained 14% recycled materials. Further materials will be analysed in 2012
as the construction of Boulevard Londrina Shopping continues.
100%
Sonae Sierra adapted criteria for sustainable materials and a methodology for
product selection, and proposed 'gold' and 'silver' materials for use in building
and site elements according to their sustainability credentials. Sonae Sierra
already has a ‘black list’ of prohibited building materials which is used within
the Safety, Health and Environment Development Standards.
50%
During 2011, Sonae Sierra developed a list of materials and regions which
present potential risks regarding child labour, with reference to Unicef and ILO
guidelines. A report was drafted proposing ways of minimising risks such as
potentially banning imports of these materials from those regions, or to only
accept materials from reputable suppliers. Discussions have since been
carried out in 2012 to ask suppliers about their child labour policies and
regions of operation, but as this next stage of work did not commence until
2012, the action is considered only 50% achieved.
100%
A CR check-list was developed and used to audit all maintenance, security,
cleaning, and waste management suppliers in all owned shopping centres
during 2011. A report was issued for each country analysing the results.
Sonae Sierra will develop an action plan to follow-up on these results in early
2012 and will then perform another round of CR audits with a target of a
maximum of 15% non-conformities.
100%
According to performance data verified by Deloitte, the proportion of materials
consumed that came from recycled sources in 2011 was 90%, compared with
85% in 2010 (a 6% increase).
SUPPLIERS
Identify and carry out a pilot project to collate
information and assess present performance
in terms of materials with recycled content at
Boulevard Londrina Shopping.
Create a materials checklist for sustainable
materials, establishing colour codes
according to sustainability performance,
based on a set of evaluation criteria.
Perform a preliminary study to evaluate the
viability of developing a standard
specification to incorporate into contracts on
all development projects, establishing
procedures to ensure that materials come
from reliable sources in respect to child
labour and working conditions.
Develop a check-list of CR issues for all
maintenance; security; cleaning and waste
management suppliers and use it to audit
these suppliers in all owned shopping
centres during 2011. Create a monitoring
process and a CR indicator to be followed in
2012.
Increase the proportion of materials
consumed that came from recycled sources
by 1% in comparison with the 2010 result.
TENANTS
Organise at least three meetings with
tenants on CR issues, in every Sonae Sierra
100%
All shopping centres held at least three meetings with tenants on CR issues in
2011. Topics discussed included: first aid; hygiene and safety risks in
11| Page
owned shopping centre.
restaurants; energy, water and waste management; food safety and sales
quality.
100%
The Sierra Update newsletter is sent to tenants in Portugal, Spain, Italy and
Greece. The 2011 issues of the newsletter included articles on the Personæ
Tenant Awards; the Planet Sierra Tenant Awards; water consumption
awareness; Sonae Sierra’s CR policy, Sonae Sierra’s Community Day, and
awards received by Sonae Sierra for its commitment to CR.
Consolidate the existing Community
Advisory Panels (CAPs) by delivering
training to all shopping centre teams that
operate a CAP, identifying local stakeholders
who should be represented on the CAPs and
important issues for each local community
that should be addressed in CAP meetings.
100%
A training presentation was developed and delivered to shopping centre teams
that operate a CAP. Jones Lang LaSalle selected a random sample of
applicable shopping centres and was able to confirm that each of these had
also identified a list of relevant stakeholders and their most pressing issues.
Promote two CAP meetings in all centres
where the CAPs existed before 2011.
100%
At least two CAP meetings were held at all sites which had a CAP in place
before 2011.
Increase CR awareness among tenants by
introducing a specific message in Sierra
Update (e-newsletter) at least twice a year.
COMMUNITIES AND VISITORS 1
Develop and implement a long-term action
plan to deliver a sustainable shopping
experience to our visitors.
100%
Sonae Sierra has developed a three-year marketing strategy for shopping
centres in Europe. The action defined for 2011 was to create and implement a
campaign focused on raising awareness of the CR achievements that Sonae
Sierra has already accomplished. This campaign included physical materials
(such as posters and banners) inside all our European shopping centres,
digital advertisements and an on-line presence.
In Brazil, a marketing strategy has not been developed. However, all shopping
centres held a Green Sales Campaign and continued to implement other
actions to promote awareness about CR in shopping centres.
Increase visitors' awareness of Sonae
Sierra's "sustainability story”.
100%
For Europe, this action was assessed based on the proportion of Advertising
Equivalent Value (AEV) obtained from CR. For all countries where AEV is
tracked, more than 3% of total AEV was related with CR. The actual proportion
ranged from 4% in Italy to 55% in Spain.
In Brazil, a senior management decision was taken to implement a different
approach, and it was decided instead to implement measures at each
shopping centre to improve visitors' comfort. All Brazilian shopping centres
implemented measures to improve visitors’ comfort in 2011.
EMPLOYEES
All Communities and Visitors actions exclude Münster Arkaden and Alexa in Germany and Freccia Rossa in Italy.
1
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Sonae Sierra aimed to increase overall employee satisfaction by implementing
the following measures, among others:
• Awarding an extra day’s holiday to all staff in Europe by closing offices on
23 December 2011.
Aim to increase overall employee satisfaction
with Sonae Sierra, in relation to the 2009
results.
100%
• Issuing certificates and letters of appreciation to employees with five, ten
or 15 years’ employment with Sonae Sierra.
• Conducting an Employee survey.
The results of the survey showed that overall employee satisfaction had not
actually increased in comparison with 2009, but achievement on this action
was based on whether measures were taken with the intent to increase
satisfaction, and on that basis it was considered achieved.
Perform a salary and benefits review,
involving comparison with other
companies/industry benchmarks where
possible.
Improve the proportion of Sonae Sierra
employees who are satisfied with their
ergonomic conditions in comparison with
2009 level.
Correct 10% of the non-conformities
identified in the 2010 ergonomic
assessments.
Identify challenging projects within Sonae
Sierra and pinpoint high potential employees
suitable to participate in those projects.
Provide a greater level of information for
employees on training and development
opportunities available.
Review training and career development
opportunities that are currently provided to
staff and develop a business strategy to
address serious gaps.
100%
In Europe, Sonae Sierra compared the salary and benefits of all employees
against market data provided by Hay Group. In Brazil, market data has been
worked into the online salary system. In both Europe and Brazil, this
information is being taken into account for the 2012 review of salaries, closing
gaps between Sonae salaries and the general market wherever possible.
100%
In 2011, 67.9% of Sonae Sierra employees responding to the Employee
Survey agreed or strongly agreed that their workstation was comfortable and
adapted to their needs; compared with 65.3% in 2009.
100%
Sonae Sierra corrected 34% of the non-conformities that were identified in the
2010 ergonomic assessments. Actions taken to resolve non-conformities
included: purchasing ergonomic armrests; re-arranging desks; changing
computer equipment, and installing spot lights to improve light levels.
100%
The challenging projects identified related to ‘less bureaucracy’, ‘balance
rents/service charges’ and ‘internal training’. High-potential employees were
identified to participate in these projects and they produced project outputs
such as presentations, survey results and agreed actions.
100%
During 2011, a training plan was developed for each country, prioritising
training needs. Courses were developed in line with these plans, and
information was circulated to employees informing them of when training
courses were due to take place and attaching materials explaining the aims
and objectives of the courses. Sonae Sierra emphasised in staff
communications that priority for places on courses would be given to those
employees who had identified a training need in that area.
100%
In 2011, Sonae Sierra took part in a project run by Sonae Group which
involved developing a strategy to promote personal growth and advance
professional development among employees. This project involved an
evaluation of talent potential within the Company as well as an assessment of
Peer Best Practices relative to the identification, assessment and development
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of high potential employees.
Based on these reviews, a strategy was developed to implement a
development programme based around four axes: Educational; Action
Learning; On-the-job Experiences and Relationship/ Feedback. Alongside
these, key training areas were identified (business skills, personal &
interpersonal skills and leadership skills), along with suggestions for how each
one could be further developed.
SAFETY AND HEALTH
Integrate in one regular Safety, Health and
Environment (SHE) meeting, in all main
corporate offices, a workshop on manual
handling and musculoskeletal disorders.
100%
Workshops on manual handling and musculoskeletal disorders were held as
part of regular SHE meetings at all eight main corporate offices.
100%
Awareness campaigns were held at all eight main offices with initiatives such
as: safety awareness posters and e-mails on the theme ‘Expect the
Unexpected’ and presentations on housekeeping; sanitation, and what to do in
an emergency. One office also held health checks, nutritional checks and
massages.
Perform an ergonomic assessment
according to the ergonomic procedure at all
corporate and shopping centre offices which
are either new or which did not perform an
assessment in 2010.
97%
This action was applicable to 31 shopping centre offices and corporate offices
across Portugal, Germany, Italy, Romania and Brazil. All applicable shopping
centres and offices completed an ergonomic assessment, with the exception
of Pátio Brasil Shopping in Brazil. The action was therefore considered to be
97% achieved.
Achieve 100% accomplishment with the
target number of Safe Practice Index (SPI)
hours by the end of the year.
100%
Develop an awareness campaign/
event/initiative related with S&H at work in all
main corporate offices.
Develop an awareness campaign/
event/initiative related with S&H at work on
construction sites.
Implement the construction Safety, Health
and Environment Management Plan
(SHEMP) in order to prevent accidents.
100%
100%
Sonae Sierra exceeded the target number of Safe Practice Index hours,
averaged across all applicable sites.
This action was applicable to the following construction sites for new projects,
expansions and refurbishments: Torre Ocidente and Centro Comercial
Continente de Portimão in Portugal; Le Terrazze in Italy; Solingen Shopping in
Germany and Boulevard Londrina Shopping, Uberlândia Shopping, and
Shopping Metrópole in Brazil. S&H campaigns were held on all sites on topics
such as: handling chemical products; Dengue Fever control; preventing
accidents to hands; indoor air quality control, and keeping fit through the
winter.
This action was applicable to the following construction sites for new projects,
expansions and refurbishments: Torre Ocidente and Centro Comercial
Continente de Portimão in Portugal; Le Terrazze in Italy; Solingen Shopping in
Germany and Boulevard Londrina Shopping, Uberlândia Shopping, Passeio
das Águas Shopping and Shopping Metrópole in Brazil. All sites implemented
the SHEMP, and three of these sites already achieved OHSAS 18001 and ISO
14001 certifications as a result.
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Perform a study to define the best solution to
make the service suppliers’ underground
workplace at Valle Real in Spain legally
compliant.
Implement the actions defined in the Three
Year Marketing Strategy to raise awareness
on S&H awareness among our visitors.
Distribute a leaflet to tenants with ‘eye
witness accounts’ of incidents that happened
with tenants or a history of typical incidents
involving tenants in Sonae Sierra shopping
centres during the last three years.
100%
0%
100%
Sonae Sierra commissioned a study which highlighted several areas for
improvement in order to ensure legal compliance in the service suppliers’
workplace at Valle Real. A range of measures were included in the 2012
Investment Plan, such as the acquisition of an air quality measurement device;
the installation of an emergency lighting system and improvement of access
and passageways conditions.
This action was not performed in 2011. This was because the focus of the
2011 CR Communications Plan was to gain awareness of our objectives and
achievements in terms of environment (an area of particular interest to our
visitors). To ensure a strong result, we had to concentrate all our available
resources on this objective, meaning that we were not able to simultaneously
implement our S&H Communications Plan. The S&H area will now be the
object of a stronger focus on 2012.
A flyer was developed at the corporate level for distribution in all shopping
centres, with information provided by the Incident Investigation SubCommittee. The flyer was translated into local languages where relevant and
distributed to tenants at all shopping centres.
RISK MANAGEMENT
100%
Sonae Sierra created an Ethics Training Plan, which was formally approved by
the Risk Management Working Group. The Company’s Anti-Corruption
Guidelines were circulated to all staff along with a message from the CEO. A
two-hour training session was held on 27 December 2011, and was attended
by 20 employees. Further training sessions are scheduled for 2012.
100%
In 2011 Sonae Sierra held Risk Management Working Group meetings to
discuss the risks identified in the risk matrix. Three areas were selected for
further analysis - political risks, rental sustainability and contract integrity.
Individuals were assigned responsibility for these and, following discussions,
detailed documents were drafted outlining the risks posed and how Sonae
Sierra will monitor and mitigate these risks.
Implement the project ledger on at least one
project under development in Brazil.
10%
Sonae Sierra had originally planned to implement the project ledger at the
Boulevard Londrina Shopping construction site and all sites opening
thereafter. However, since that decision, Sonae Sierra has decided to start
transitioning to a new SAP system and the project ledger has been postponed
to 2012 once this new system is in place. It will be piloted first at Goiânia
(Passeio das Águas Shopping) which is scheduled to open in 2013.
Considering that only the first step of this action was achieved (to identify the
pilot site(s)), the action was considered to have been 10% achieved overall.
Undertake a risk-assessment of the transferpricing area.
100%
Deliver training on Sonae Sierra’s AntiCorruption Policy.
Analyse in detail three risks in the Sonae
Sierra Risk Matrix.
Propose a Policy for Medium-term Liquidity
100%
Sonae Sierra completed a risk-assessment of the transfer-pricing area in
September 2011.
A Medium-Term Liquidity Policy was developed, finalised and approved by the
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Management.
Risk Management Working Group during 2011.
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5 List of evidences reviewed
In order to confirm the statements made in section 4 above, Jones Lang LaSalle reviewed a range of documents
provided by Sonae Sierra and, in some cases, verified by an independent auditor. A list of the principal
documents reviewed with respect to each CR impact area (including Risk Management) is provided below.
Energy and Climate
• Copies of the reports analysing the change in visitors’ modes of travel at shopping centres with Green Travel Plans, and planned
or recommended next steps.
• Requests for Proposals issued to different service suppliers and quotes received for the provision of electric vehicles; guidance
on the Portuguese government programme for electric vehicles; copy of the presentation and minutes of the Corporate
Responsibility Steering Committee meeting approving the purchase of electric vehicles for the Company Car Fleet.
• Draft contract for the partnership between Sonae Sierra and service provider Park Charge for the installation of electric car
charging stations in shopping centres in Portugal; confirmation from Sonae Sierra that electric car park charging stations would
only be installed at four shopping centres; photographic evidence of the charging stations installed.
• Renewable Energy Study report performed by Ambiente Italia for Gli Orsi, which includes cost benefit analyses for solar thermal,
solar photovoltaic and geothermal energy options; copy of the Renewable Energy Action Plan for 2012 including further
investigations on all three renewable energy options.
• Email providing information and proposed answers to the Carbon Disclosure Project and link to Sonae Group’s on-line
submission to the Carbon Disclosure Project.
• Copies of the invoices for the equipment purchased to reduce computers’ energy consumption in the Athens Office.
• Copies of the suppliers’ invoices and photographic evidence of energy meters installed at La Farga and Freccia Rossa shopping
centres.
• Energy audit report for Loop5 and corresponding list of measures proposed to be implemented in 2012.
• Spreadsheet detailing the list of recommendations following previous energy audits at NorteShopping, Gli Orsi, Münster
Arkaden, La Farga, Valle Real, Gran Casa, Luz del Tajo, Plaza Mayor, Parque Principado, Zubiarte, and Max Center, and copies
of suppliers’ invoices or photographic evidence to demonstrate that recommendations had been implemented.
• Copies of contracts with suppliers and final invoices for the completed work to implement free-cooling systems at Parque
Atlântico and MadeiraShopping.
Water
• Feasibility study identifying opportunities to reuse water in cooling towers at Gli Orsi and a copy of Gli Orsi’s 2012 Investment
Plan including the cost of the water reuse equipment installation.
• Copies of supplier invoices’ to implement a water reuse system at LoureShopping; the contract signed with the supplier at
Parque D. Pedro Shopping and confirmation from Sonae Sierra that the work was not completed there in 2011.
• Various evidences including statements from suppliers; copies of suppliers’ invoices; screenshots and photographic evidence to
confirm that equipment was installed to detect water leaks at CoimbraShopping, LoureShopping, GuimarãeShopping,
Valecenter, Parque D. Pedro Shopping and Shopping Metrópole.
• Water audit report for Loop5 and confirmation by Sonae Sierra that the recommended measures were proposed for 2012.
• Copy of the suppliers’ invoice for the work completed to implement the Smart H 2 0 irrigation system at CascaiShopping.
• Various evidences including copies of water audit reports, Action Plans or lists of management and investment
recommendations; photographic evidence; contracts signed with suppliers; copies of suppliers’ invoices and statements from
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suppliers to confirm that the approved recommendations of water audits performed in previous years were implemented at the
applicable shopping centres.
• Copies of contracts; suppliers’ invoices and/or photographic evidence of individual water meters installed at 8a Avenida and La
Farga.
• Supplier’s proposal and study report on the rainwater harvesting system to be implemented at GaiaShopping. Confirmation from
Sonae Sierra that an additional cost benefit analysis would be performed to determine the feasibility of the project.
• 2011 performance data for the indicator “Total water withdrawal by source”, verified by Deloitte.
• WBCSD Global Water Tool analysis performed by Sonae Sierra in 2011 (excel template completed with input data) and the
updated report explaining the conclusions of the analysis.
• Lists of the work required to improve the wastewater networks at ArrábidaShopping, CoimbraShopping, MadeiraShopping, and
Via Catarina and copies of contracts signed with suppliers; suppliers’ invoices and/ or statements confirming that the work was
carried out.
• Analysis reports of wastewater quality for each Sonae Sierra shopping centre; confirmation from Sonae Sierra that a meeting
was held on 14 June 2011 with Environment Responsibles for each country to discuss the results of the wastewater analyses;
and a strategy plan listing the actions required where needed to correct non-conformances.
Waste
• Study reports on the viability of implementing a 'Pay As You Throw' system in Portugal, Spain, Italy and Brazil; including
conclusions.
• Copies of suppliers’ invoices for the works carried out to improve the waste infrastructures at GuimarãeShopping and Centro
Vasco Da Gama.
• Document listing the approved recommendations from the waste characterisation studies performed at Shopping Campo Limpo
and Pátio Brasil Shopping and photographic evidence of the works carried out.
• Waste composting feasibility study performed at Luz Del Tajo and confirmation from Sonae Sierra that the installation of the
waste composting system was approved.
• 2011 performance data for the indicator “Proportion of waste that is sent to landfill at offices”, verified by Deloitte.
• List of printers in each Sonae Sierra office in Europe, indicating whether they allowed printing on both-side; list of alternative
equipment, where applicable; emails confirming that the proposal to carry out a project evaluating costs and benefits of replacing
equipment in Lisbon, Maia and Madrid offices was approved. A report from the São Paulo office explaining the work done to
complete the action.
• Waste characterisation study report for the São Paulo office identifying waste types that could be diverted from landfill and
measures to improve the percentage of waste recycled.
• Awareness messages distributed to staff by email or photographs of awareness messages on display at Sonae Sierra’s eight
main corporate offices to promote recycling.
• Paper consumption data record covering Sonae Sierra’s eight main corporate offices and copies of invoices received for paper
purchased at a random sample of offices/time periods.
• Study reports or note from office staff responsible on the possibility of collecting organic wastes from office kitchens.
Biodiversity and Habitats
• For each applicable site where the action was achieved, meeting minutes of the CAP meeting in which biodiversity was
discussed, except for the Parque D. Pedro Shopping, where written confirmation was given that biodiversity was included in one
CAP meeting.
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Suppliers
• Declarations from service suppliers showing the recycled content of foundation materials and email from Sonae Sierra indicating
that other building materials will be evaluated in 2012.
• Report setting out the adapted criteria for sustainable materials establishing silver and gold colour codes according to
sustainability performance.
• Report listing materials to be checked and regions presenting a risk regarding child labour and working conditions, and
questionnaires distributed and completed by suppliers at Le Terrazze.
• Completed CR checklist for maintenance, waste management, cleaning and security suppliers; report analysing the check-list
results for each country; e-mail explaining that CR audits will continue to be implemented in 2012, with a target of max 15% nonconformities.
• 2011 and 2010 performance data for the indicator ‘Percentage of materials used in corporate offices and shopping centres that
are recycled input materials’, verified by Deloitte.
Tenants
• List of CR meetings held with tenants at Sonae Sierra shopping centres during 2011 and, for a random sample of these,
evidences to demonstrate that the meeting was held (e.g., signed list of attendees).
• Sierra Update e-newsletter issues 5, 6 and 7, which included messages to raise awareness about CR.
Communities and Visitors
• Attendance list to the Community Advisory Panel training and; for a randomly selected sample of shopping centres: lists of CAP
stakeholders and pressing issues which have been identified.
• Signed list of attendees and meeting minutes to the CAP meetings held at the applicable Sonae Sierra shopping centres,
showing that at least two CAP meetings were held at each centre during 2011.
• List of applicable actions set out in the marketing strategy defined for Europe; copy of the plan developed by an external service
supplier including the images and messages to be used in each shopping centre to inform visitors about Sonae Sierra’s
sustainability story and, for a random sample of shopping centres, copies of the invoices for audio-visual and graphics production
and/or evidences of banners and posters displayed in the centres.
• Public relations reports showing that all countries in Europe which track Equivalent Advertising Value (AEV) were able to pinpoint
at least 3% of the AEV of total events to CR initiatives. Confirmation from Sonae Sierra that for Brazil it was decided instead to
implement actions at each shopping centre to improve visitors' comfort; and photographic evidence of measures implemented to
improve visitors’ comfort at each Brazilian shopping centre.
Employees
• Email informing staff in Europe that Sonae Sierra offices would be closed on 23 December 2011; certificates and letters sent to
employees with five, ten or 15 years or more employment in Sonae Sierra and a copy of the Employee Survey results.
• Excel file showing Sonae Sierra staff salaries benchmarked against general market levels provided by the Hay Group, for each
country where Sonae Sierra operates; screenshots and emails from Sonae Sierra to explain how salary gaps were used to
inform the 2012 salary review process.
• Results of the 2011 and 2009 Employee satisfaction surveys, including responses to questions about ergonomic conditions.
• List of non-conformities identified in the 2010 ergonomic assessments, and various evidences for a randomly selected sample of
sites (such as emails, photographs, copies of lease contracts) to confirm that 34% of non-conformities were corrected.
• Excel file showing the ‘challenging projects’ identified and the list of high-potential individuals selected for involvement in these,
and various evidences (presentations, emails, reports, etc.) showing the results and outputs of the work.
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• Lists of employees prioritised to receive training in every country where Sonae Sierra operates and emails sent to staff providing
details of the training courses available.
• Copy of the strategy to promote personal growth and advance professional development among employees developed together
with Sonae Group.
Safety and Health
• Various evidences to confirm that workshops on manual handling and musculoskeletal disorders were held in each main
corporate office, including presentations; meeting minutes and signed lists of attendees.
• Various evidences to show that S&H campaigns were held in each main corporate office, including photographs, presentations
and copies of campaign materials.
• List of offices where an ergonomic assessment needed to be performed in 2011 and ergonomic assessment reports for all
applicable sites where the action was achieved.
• A summary list of Safe Practice Index (SPI) hours performed at all sites under development during 2011 compared to the SPI
hours target set, and access to the Sonae Sierra S&H Portal in order for a sample of the SPI reports to be checked. The SPI
reports matched with the summary list for the sample checked.
• List construction sites where an S&H campaign should be performed and various evidences to show that the action was
achieved, including copies of campaign materials; signed attendance lists and training certificates.
• Lists of construction sites where the SHEMP should to be implemented and various evidences to confirm that the SHEMP was
implemented, including action plans; SPI reports; ISO 14001 and OHSAS 18001 audit reports and SHE site reports.
• Audit report identifying the failures to comply with legal safety requirements at the service suppliers’ underground workplace at
Valle Real and the cost proposal from an external supplier to perform the corrective works required.
• Copy of leaflet developed to inform tenants about most frequent accidents which occurred in Sonae Sierra shopping centres in
the last three years and, for a randomly selected sample of sites, photographic evidence or signatures lists showing that tenants
received the leaflets.
Risk Management
• Sonae Sierra Ethics Training Plan, including training sessions planned in 2011 and 2012 and attendance list to the sessions held
in 2011.
• Agenda and minutes of the Risk Management Working Group meeting where three risks were identified to be analysed in detail,
and a copy of the final analysis report for these three risks.
• Email confirming the selected sites for the Project Ledger (Passeio das Águas Shopping and Uberlândia Shopping).
• Transfer pricing status report and minutes of Risk Management Working Group meeting approving the report.
• Medium-Term Liquidity Policy and minutes of Risk Management Working Group meeting approving the policy.
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