Sonae Sierra
Review of Progress Against 2013 Sustainability Targets
Final Report
24th March 2014
Contents
1
2
3
4
5
Introduction ............................................................................................................................................................ 2
Methodology........................................................................................................................................................... 3
Summary of progress ............................................................................................................................................ 5
Targets by Level of Attainment ............................................................................................................................ 6
Concluding Observations ................................................................................................................................... 10
1
1 Introduction
In December 2012, Sonae Sierra committed to work towards the accomplishment of 27 sustainability targets by
the end of 2013. This report, which has been prepared by Jones Lang LaSalle’s Upstream Sustainability
Services, is intended to provide an external review of Sonae Sierra’s progress towards meeting these
sustainability targets. The report is divided into four main sections:
1. Methodology.
2. Summary of progress.
3. Targets by level of Attainment.
4. Concluding Observations.
By providing further information and explanations about the target evaluation process and its outcomes, this
document is intended to be a point of reference for Sonae Sierra’s stakeholders and to provide further clarity on
the statements relating to target achievement made in the Environmental, Economic and Social Report 2013. In
addition, 64 further management actions were also reviewed and a report into progress against these is available
on the Sonae Sierra website.
2
2 Methodology
The level of progress achieved towards each target has been established by scrutinising documented evidence
provided by Sonae Sierra. In cases where actions were applicable to five or more different sites or other entities,
a sampling approach was used, whereby random samples of evidence were requested from a summary list of
sites. Where further explanations were deemed necessary, direct contact was made with individuals within Sonae
Sierra who were responsible for meeting the target. The level of completeness for each target is represented as a
percentage.
Performance targets
A performance target is a target which relates to achieving performance against a standard (e.g. ISO 14001, or
relevant government standards) or a threshold of performance (e.g. a recycling rate).
Of the public targets set for completion in 2013, 21 out of 27 targets were considered to be performance targets.
Performance target evaluation – worked example
Target: Attain a minimum average recycling rate of 55.1% across our owned shopping centres
Evaluation: According to data verified by Deloitte, the recycling rate across Sonae Sierra’s shopping centres was
59%. As a result Jones Lang LaSalle determined that this target should be assessed as 100% achieved.
Management targets
Management targets relate to a management process or procedure. Management targets may contain
quantifiable elements, but do not measure actual performance relative to a threshold or standard.
Upon setting management actions, Sonae Sierra identifies the steps that are required to achieve each action. For
each step, a weighting (%) is set on an “effort” basis by applying professional judgement. Management actions
have, therefore, been awarded a percentage of achievement in view of the evidence 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 achievement, as
in the example below.
Of the public targets set for completion in 2013, 6 out of 27 targets were considered to be management targets.
3
Management target evaluation – worked example
Target: Improve the wastewater networks by taking corrective actions to ensure that discharges to water courses
comply with Sonae Sierra's wastewater quality standards and pollutant limits
Evaluation: Sonae Sierra assigned the following ‘steps’ and weightings to achieve this target:
1. Select service providers and award the contract to complete the works required at each shopping centre
(10%)
2. Complete the works needed to improve wastewater networks in each applicable shopping centre (60%)
3. Confirm that waste water quality complies with Sonae Sierra standards (30%)
This target applied to CascaiShopping and Shopping Plaza Sul. Both centres provided evidence showing
how each step had been completed, including; a contract showing a supplier selected to carry out
improvement works, photographs of new systems in place and water analysis results showing that
discharges to water courses comply with Sonae sierra's waste water quality standards and pollutant limits.
As a result, Jones Lang LaSalle determined that this target should be assessed as 100% achieved.
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3 Summary of progress
Status of 2013 Public targets (27 Targets)
Number
of targets
0%
1-25%
26-50%
51-75%
76-99%
100%
11
1
-
-
-
-
10
Energy & Climate
2
-
-
-
-
-
2
Water
3
-
-
-
-
-
3
Waste
5
1
-
-
-
-
4
Biodiversity & Habitats
1
-
-
-
-
-
1
Safety & Health
8
2
-
-
1
-
5
SHEMS
4
-
-
-
-
-
4
Employees
1
-
-
-
-
-
1
Communities & Visitors
1
-
-
-
-
-
1
Risk Management
2
-
-
-
-
-
2
GLOBAL TOTAL
27
3
-
-
1
-
23
Sustainability Impact Area
Environment
5
4
Targets by Level of Attainment
This table lists targets and there overall attainment status. Where appropriate, comments about the assessment
process are included as well as any interesting observations:
2013 Sustainability Targets
%
achievement
Comments
ENVIRONMENT
WATER
Attain a level of water consumption at
or below 3.82 litres per visit
(aggregated across all Sierra owned
shopping centres
Achieved a level of 3.70 litres per visit to shopping centres.
100%
Implement wastewater/grey water
reuse or rainwater harvesting
systems according to studies
previously done
100%
Improve the wastewater networks by
taking corrective actions to ensure
that discharges to water courses
comply with Sonae Sierra's
wastewater quality standards and
pollutant limits
100%
The innovative grey water recycling system at Centro Vasco da Gama,
which reuses the condensation that collects on internal car park walls
in the centre’s toilets, exemplifies Sonae Sierra’s strategic investment
for the future of its portfolio.
WASTE
Attain a minimum average recycling
rate of 55.1% across our owned
shopping centres
100%
Guarantee that the proportion of
waste (by weight) sent to landfill,
across Sonae Sierra owned shopping
centres does not exceed 28.6%
100%
Attain a minimum average recycling
rate of 78% in Lisbon, Maia and S.
Paulo Office
100%
Attain a maximum average landfill
rate of 6% in Lisbon, Maia and S.
Paulo Office
The attainment of this target represents continued progress in Sonae
Sierra’s global recycling rate. The global recycling rate well exceeded
the target set for 2013 reaching 59%. This is an increase of 7%
compared to 2012.
This target was exceeded by some margin, with only 20% of waste
globally going to landfill.
Performance was exceeded by 4 percentage points reaching 82%.
0%
15% of waste from offices went to landfill. It should be noted that this
was as a result of the Lisbon office’s performance as regional targets
were met at the Maia and Sao Paulo offices.
6
Achieve an overall recycling rate of
85% considering all projects
completed in 2013 (including
refurbishments and expansions)
100%
The recycling rate reached 98.75%, a slight increase from 2012 when it
was 98.33%.
ENERGY AND CLIMATE
Attain a maximum value of 0.044 ton
of GHG emissions per square metre
of GLA (GHG Protocol scopes 1 and
2, plus business air travel)
Attain a maximum value of electricity
consumption of 488 kWh/m2 (mall +
toilet area) across Sierra owned
shopping centres.
Achieved a global intensity metric of 0.021 tCO2e/m2 which represents
a significant reduction of 51% from 2012.
100%
Achieved a consumption intensity rate of 444 kWh/m2, down from 479
kWh/m2 in 2012.
100%
BIODIVERSITY AND HABITATS
Implement 100% of approved
recommendations of the Preliminary
Environmental Evaluations (or
equivalent study) on completed
projects
100%
SAFETY AND HEALTH
Reduce the number of work accidents
(per million hours worked) with
workforce absence, in comparison
with 2012.
Reduce the severity of work
accidents and occupational diseases
with workforce absence, in
comparison with 2012
Achieve zero fatalities due to
accidents within the Sonae Sierra
workforce
Attain a maximum of 12.0 Lost
Workday Case Accidents Frequency
Rate (LWCAFR) of all projects
completed in 2013 (considering whole
the project duration).
In 2013 the average number of accidents per one million hours worked
was 5.79, up from 2.89 in 2012.
0%
The lost day rate as a result of work related injury or disease for 2013
was 51.14 which is an increase from 50.18 in 2012.
0%
100%
All completed projects met this target with the exception of the
expansion at Centro Colombo to accommodate a new Primark Store.
75%
7
Achieve zero fatalities due to
accidents on Sonae Sierra
Construction Works
100%
Achieve 100% accomplishment of
SPI hours across all development
projects completed in 2013
(considering whole the project
duration)
100%
Reduce the LWCAFR of shopping
centres' service suppliers by at least
3% in comparison with 2012
100%
Achieve zero fatalities due to
accidents in Sonae Sierra Shopping
Centres
100%
In 2013, Sonae Sierra reduced their Lost Workday Case Accidents
Frequency rate to 2.17 amongst their centres’ service suppliers, which
is equivalent to over a 3% reduction compared to 2012.
SAFETY HEALTH AND ENVIRONMENT MANAGEMENT SYSTEMS
Achieve OHSAS 18001 certifications
for the SHEMS of 1 further shopping
centre in operation
Achieve ISO 14001 and OHSAS
18001 certifications for the SHEMS of
2 further shopping centres in
operation
Ensure that all new shopping centre
development projects have a valid
ISO 14001 and OHSAS 18001
certificate upon opening
Ensure that at least 85% of the SHE
data audited is correctly reported
considering the average of all
projects completed in 2013 (including
refurbishments and expansions)
OHSAS 18001 certificate submitted as evidence.
100%
100%
ISO 14001 and OHSAS 18001 certificates submitted as evidence for
both shopping centres.
100%
ISO 14001 and OHSAS 18001 certificates submitted as evidence for all
shopping centres.
100%
RISK MANAGEMENT
Detail and quantify three risks
included in the Risk Matrix
100%
Sonae Sierra displayed a joined up approach to risk management
through which risks are identified, quantified and communicated
effectively throughout the business.
Increase business teams awareness
regarding specific risk topics
100%
8
COMMUNITIES AND VISITORS
Invest a proportion of the promotional
variable marketing fund of every
operational shopping centre and
project under development in
community-related initiatives (at least
2% for sites in Europe and 1% for
sites in Brazil).
100%
EMPLOYEES
Organize a Community Day.
100%
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5 Concluding Observations
Sonae Sierra’s 2013 sustainability targets clearly reflect a focus on ‘safe people’ and ‘eco-efficiency’. With 85% of
sustainability targets achieving a 100% attainment score, compared to 67% in 2012, it is clear to see that significant
progress has been made over the year to improve Sonae Sierra’s performance in relation to its impact on environment,
safety & health and community issues. Some of Sonae Sierra’s key successes in 2013 were:
The outcome of public performance targets show that Sonae Sierra is exceeding all but one of its water, waste
and energy & climate targets.
Investment in lighting upgrades, water systems and waste segregation facilities continues to deliver efficiencies.
Sonae Sierra achieved a 100% attainment rate for 6 out of 8 of the safety and health performance targets.
Sonae Sierra has reduced its lost workday case accident frequency rate for its development and management
services, achieving a decrease in the length of employee’s absence after a work related injury.
Sonae Sierra has successfully implemented its first grey water recycling system at Centro Vasco da Gama in
Portugal.
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