Sonae Sierra
Review of Progress Against 2011 Public CR Targets
Report
March 2012
Contents
1
2
3
4
5
Introduction ............................................................................................................................................................ 2
Methodology........................................................................................................................................................... 3
Summary of progress ............................................................................................................................................ 5
Comment on progress against each 2011 CR target .......................................................................................... 6
List of evidences reviewed ................................................................................................................................. 11
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1 Introduction
In 2010, Sonae Sierra publicly committed to work towards the accomplishment of 36 Corporate Responsibility
(CR) targets by the end of 2011, covering all nine CR impact areas (as well as Environmental Management). 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 CR targets. It is divided into four
main sections:
1. Methodology.
2. Summary of progress.
3. Comment on progress against each publicly reported CR target.
4. List of evidences reviewed.
By providing further information and explanations about the target evaluation process, 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 CR Report 2011.
To support the accomplishment of the Company’s long-term objectives, Sonae Sierra also defined 69 additional
CR actions to be achieved before the end of 2011. Progress with respect to these actions has also been reviewed
by Jones Lang LaSalle and a separate report is available in the CR section of the Company’s website.
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2 Methodology
The level of progress achieved against each of the targets set has been established by scrutinising documented
evidence provided by Sonae Sierra. In cases where targets 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 also made with individuals within the Company responsible for target accomplishment. The
methodology used in order to determine how complete each target is, as a percentage, varies according to the
type of target set.
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).
Performance targets have been evaluated and awarded a percentage towards completion. This is calculated by
dividing the actual level of performance achieved by the target level of performance which the Company was
aiming to achieve in 2011.
Of the public targets set for completion in 2011, 33 out of 36 were considered to be performance targets.
Performance target evaluation – worked example
Target: Maintain the 2010 value of electricity consumption per m2 (mall and toilet area) on a like-for-like basis
across Sonae Sierra owned shopping centres.
Evaluation: According to performance data verified by Deloitte, in 2011 Sonae Sierra’s electricity consumption
per m2 of mall and toilet area, aggregated across the owned shopping centre portfolio, was 514kWh. Comparing
like-for-like (i.e., the same portfolio of properties), the result achieved in 2010 was 523kWh. This target was
therefore considered to have been fully achieved. If the 2011 result had been greater than 523kWh, the target
would have been considered to be 0% achieved.
Management targets
A management target is a target which relates 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 targets, Sonae Sierra anticipates the steps which are required to achieve the target.
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 target.
Management targets 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 target to be
completed, and in accordance with the weighting (%) attributed to each step.
Of the public targets set for completion in 2011, three out of 36 were considered to be management targets.
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Management target evaluation – worked example
Target: Identify three tenants in each country and engage with them to develop an energy reduction programme
that can be rolled out to other tenants during 2012.
Evaluation: Sonae Sierra assigned the following ‘steps’ and weightings to achieve this target:
1.
Identify three tenants per country (one in each business area, for example: fashion, restaurants and
services) - 20% weighting.
2.
Identify a list of suitable good practices to be implemented through energy reduction programmes - 30%
weighting.
3.
Engage with the tenants identified in step 1 and agree to an energy reduction programme - 30%
weighting,
4.
Identify additional tenants where a reduction plan should be agreed in 2012 - 20% weighting.
Sonae Sierra teams in each country identified three tenants with whom to engage, based on their energy
consumption. They listed a series of best practices adapted to each of the selected tenants to begin engaging
with them, such as: energy efficient light bulbs; energy consumption monitoring; green electricity supply and
switching-off equipment. Each of the tenants’ units was audited to determine the energy management and
equipment in place and to help decide on an energy reduction programme. Further tenants were identified to go
through the same process in 2012. The target was therefore considered to have been fully achieved. If only six
out of seven countries where Sonae Sierra operates had completed the target, it would have been considered as
86% achieved. If only steps 1 and 2 had been achieved, the target would have been considered as 50%
achieved.
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3 Summary of progress
3.1
Summary of progress against 2011 CR targets
In 2011, Sonae Sierra fully achieved 23 out of 36 CR targets (64%) and partially achieved four targets (11%). Six
targets (17%) were not achieved, and three targets (8%) were considered to be ‘not applicable’ (N/A).
Figure 1: Pie chart
3
6
0%
1
51-75%
3
76-99%
100%
N/A
23
Figure 2: Summary of progress against 2011 CR targets, by impact area
Number of
targets
0%
1-25%
26-50%
51-75%
76-99%
100%
N/A
Environmental Management
3
-
-
-
-
-
3
-
Energy and Climate
2
-
-
-
-
-
2
-
Water
2
1
-
-
-
1
Waste
5
1
-
-
-
-
4
-
Biodiversity and Habitats
2
-
-
-
-
-
1
1
Suppliers
3
-
-
-
-
-
2
1
Tenants
4
1
-
-
1
1
1
-
Communities and Visitors
2
-
-
-
-
1
1
-
Employees
2
-
-
-
-
-
2
-
Safety and Health
11
3
-
-
-
-
7
1
GLOBAL TOTAL
36
6
0
0
1
3
23
3
CR Impact Area
-
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4 Comment on progress against each 2011 CR target
The following table provides a comment on the extent of accomplishment of each target. It should be noted that
CR targets 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 Targets
%
achievement
Comments on the extent of target achievement
ENVIRONMENTAL MANAGEMENT
Ensure that all completed projects
achieve at least 45% of the maximum
possible points for applicable
Environmental Standards for Retail
Development (ESRD) 1 leadership
standards.
100%
This target was applicable to the expansion project of Shopping
Metrópole in Brazil, which achieved 49% of the maximum possible
points for applicable ESRD leadership standards.
Achieve ISO 14001 certification for three
further shopping centres in operation.
100%
Sonae Sierra obtained ISO 14001 certification for the Environmental
Management Systems (EMS) implemented at LeiriaShopping
(Portugal), Loop5 (Germany) and River Plaza Mall (Romania).
Achieve ISO 14001 certification at 100%
of Sonae Sierra construction sites prior
to their inauguration (including major
refurbishments).
100%
In 2011, Sonae Sierra inaugurated one new project, the Colombo office
Tower Ocidente in Portugal, which had already obtained ISO 14001
certification in December 2010.
100%
According to performance data verified by Deloitte, in 2011 Sonae
Sierra's GHG emissions (scopes 1, 2 and business air travel) per m2 of
GLA were 0.028 tCO 2 e, corresponding to an 18% reduction in
comparison with 2010.
100%
According to performance data verified by Deloitte, in 2011 Sonae
Sierra’s electricity consumption per m2 of mall and toilet area,
aggregated across the owned shopping centre portfolio, was 514kWh.
Comparing like-for-like (i.e., the same portfolio of properties), the result
achieved in 2010 was 523kWh.
ENERGY AND CLIMATE
Maintain the 2010 value of GHG
emissions per square meter of GLA
(GHG Protocol scopes 1, 2 and business
air travel).
Maintain the 2010 value of electricity
consumption per m2 (mall and toilet
area) on a like-for-like basis across
Sonae Sierra owned shopping centres.
WATER
Attain a level of water consumption at or
below 3.63 litres per visit (aggregated
0%
According to performance data verified by Deloitte, Sonae Sierra’s
water consumption per visit, aggregated across the owned shopping
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across all Sonae Sierra owned shopping
centres).
Implement wastewater reuse or
rainwater harvesting systems at a further
four 2 Sonae Sierra owned shopping
centres.
centre portfolio, was 3.66 litres in 2011.
83%
This target was applicable to 8a Avenida, Centro Vasco Da Gama,
ArrábidaShopping and MadeiraShopping, all located in Portugal. 8a
Avenida installed a water re-use system for its cooling towers;
ArrábidaShopping and Centro Vasco Da Gama installed rainwater
harvesting equipment. Unfortunately, MadeiraShopping did not achieve
the full score, as it failed to complete the installation of the rainwater
harvesting system in time, although the work began in 2011.
WASTE
Achieve a minimum average recycling
rate of 52% across Sonae Sierra owned
shopping centres.
100%
According to performance data verified by Deloitte, Sonae Sierra
achieved an average recycling rate of 53%, aggregated across its
owned shopping centre portfolio, in 2011.
Guarantee that the proportion of waste
(by weight) sent to landfill across Sonae
Sierra owned shopping centres does not
exceed 38%.
100%
According to performance data verified by Deloitte, the landfill rate of
Sonae Sierra’s owned shopping centre portfolio in 2011 was 36%.
Increase the proportion of total waste (by
weight) that is recycled or recovered in
order to obtain a minimum recycling rate
of 71% across our corporate offices.
100%
According to performance data verified by Deloitte, Sonae Sierra
achieved an average recycling rate of 80%, aggregated across its main
corporate offices, in 2011.
Achieve a recycling rate of at least 60%
on all new refurbishment projects
completed in 2011.
0%
This target was applicable to the expansion project of Shopping
Metrópole in Brazil. According to performance data verified by Deloitte,
the recycling rate achieved by this project was 39%.
Achieve a recycling rate of at least 85%
on all new projects completed in 2011.
100%
This target was applicable to the Colombo office Tower Ocidente
project in Portugal. According to performance data verified by Deloitte,
the recycling rate achieved by this project was 92%.
100%
This target was applicable to the expansion project at Shopping
Metrópole in Brazil. All the recommendations from the PEE were
implemented, including pedestrian crossing, and the close control of
locations in the site presenting an environmental risk.
BIODIVERSITY AND HABITATS
Achieve 100% compliance with the
approved recommendations of the
Preliminary Environmental Evaluations
(or equivalent study) on new completed
projects.
Guarantee that at least 20% of
uncovered parking areas use permeable
This target was not applicable in 2011 as no new shopping centres
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pavement surfaces (all new shopping
centres with Investment Proposal
approved after 1 January 2009).
N/A
were inaugurated.
SUPPLIERS
100%
This target was applicable to 21 suppliers across Italy, Germany and
Brazil as we did not have significant construction activities commencing
or underway in the other countries where we operate in 2011. All critical
suppliers were sent the CR questionnaire. Sonae Sierra evaluated the
completed questionnaires and informed the suppliers about the scores
which they achieved.
Ensure that 100% of bids and contracts
signed during 2011 with critical property
management service suppliers (i.e.,
cleaning, security, maintenance and
waste removal for owned shopping
centres) include clauses for minimum
requirements in relation to safety and
health, social and environment
standards.
100%
For this target, a sample of shopping centres was selected by Jones
Lang LaSalle and checks were made to identify: (1) whether any new
contract with a critical property management service supplier had been
signed; and (2) whether the contracts signed included clauses for
minimum requirements in relation to safety and health, social and
environment standards. In all cases, it was found that the target had
been accomplished.
At least 50% of timber used in new
shopping centres or refurbishments to be
procured from certified sustainable
sources.
N/A
This target was not applicable in 2011, as now new shopping centres
were inaugurated and because wood products were not used in the
Shopping Metrópole expansion project.
98%
According to performance data verified by Deloitte, 48 out of 49
shopping centres (98%) owned by Sonae Sierra and in operation for
the full reporting year achieved an average tenant satisfaction of 3.75
or above.
0%
It had been defined that this target should be calculated on the basis
that if 85% of shopping centres achieved the level of 4.25 of above, it
would be 100% achieved, if not, it would be 0% achieved. According to
performance data verified by Deloitte, 41 out of 49 shopping centres
(84%) owned by Sonae Sierra and in operation for the full reporting
year achieved an average tenant satisfaction of 4.25 or above. This
target was therefore narrowly missed.
73%
According to performance data verified by Deloitte, 36 out of 49
shopping centres (73%) owned by Sonae Sierra and in operation for
the full reporting year achieved an average occupancy index of 95% or
above.
Ensure that 100% of critical development
suppliers complete our CR questionnaire
so that we can assess their baseline CR
performance and identify if
improvements have been made.
TENANTS
Achieve an average tenant satisfaction
level of 3.75 or above in each Sonae
Sierra owned shopping centre.
Achieve an average tenant satisfaction
level of 4.25 or above in at least 85% of
the Sonae Sierra owned shopping
centres.
Achieve an average occupancy level of
at least 95% (measured by GLA) in all
Sonae Sierra owned shopping centres.
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Identify three tenants in each country
and engage with them to develop an
energy reduction programme that can be
rolled out to other tenants during 2012.
100%
Sonae Sierra teams in each country identified three tenants with whom
to engage, based on their energy consumption. They listed a series of
best practices adapted to each of the selected tenants to begin
engaging with them, such as: energy efficient light bulbs; energy
consumption monitoring; green electricity supply and switching-off
equipment. Each of the tenants’ units was audited to determine the
energy management and equipment in place and to help decide on an
energy reduction programme. Further tenants were identified to go
through the same process in 2012.
94%
The target was applicable to 46 operational shopping centres and five
projects under development. According to performance data verified by
Deloitte, the target was achieved at all operational shopping centres
and two out of five development projects; 48 out of 51 sites in total
(94%).
COMMUNITIES AND VISITORS
Invest a proportion of the total marketing
budget of every shopping centre under
management and project under
development in community-related
initiatives (at least 3% for sites in Europe
and at least 1% for sites in Brazil).
Maintain overall Sonae Sierra employee
community involvement, through the
organisation of a Community Day.
100%
According to performance data verified by Deloitte, in 2011 Sonae
Sierra employees dedicated 3,059 hours of their time to community
volunteering. This marked an 11% increase in comparison with 2010,
when 2,746 hours of time were dedicated.
100%
All staff members in Europe and Brazil were made aware of the flexible
working arrangements adopted in 2010. Sonae Sierra kept records of
the policies’ uptake among staff, and recommendations were
formulated to maintain those policies; reinforce communication and
define new policies which could be adopted to improve employees’
work-life balance.
100%
According to performance data verified by Deloitte, Sonae Sierra
delivered an average 48.9 hours of training per employee in 2011,
compared with 38.1 in 2010. A peer review benchmark established that
the number of training hours per employee in Sonae Sierra was high
compared to peers.
100%
According to performance data verified by Deloitte, the number of
accidents with workforce absence per million hours worked decreased
from 2.40 in 2010 to 2.37 in 2011.
EMPLOYEES
Implement all approved flexible work
arrangement policies and monitor the
uptake of those policies among Sonae
Sierra staff.
Maintain the total number of training
hours per employee (in comparison with
2010 levels) and seek to identify a
benchmark for good practice in
employee training hours that Sonae
Sierra should aim to meet on an annual
basis.
SAFETY AND HEALTH
Reduce the number of accidents with
workforce absence due to work
accidents or occupational diseases per
million worked hours, in comparison with
2010.
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Reduce the severity of accidents with
workforce absence due to work
accidents or occupational diseases, in
comparison with 2010.
100%
According to performance data verified by Deloitte, the lost day rate
caused by work accidents and occupational diseases decreased from
14.88 in 2010 to 11.84 in 2011.
Ensure that there are zero fatalities due
to accidents with Sonae Sierra
workforce.
100%
According to performance data verified by Deloitte, there were no
fatalities due to work accidents among the Sonae Sierra workforce in
2011.
Decrease Lost Workday Case Accidents
Frequency Rate (LWCAFR) in
construction works by at least 5% in
comparison with the 2010 result.
0%
The average LWCAFR for 2011 at year end was of 17.2, which marked
an increase in comparison with 2010.
Ensure that there are zero fatalities due
to accidents in Sonae Sierra construction
works.
100%
According to the 2011 construction works accidents record and the
Quarterly Safety, Health and Environment (SHE) Reports, no fatalities
occurred on Sonae Sierra construction sites in 2011.
Reduce the frequency rate of levels 3, 4
and 5 category accidents per million
visits.
0%
According to the shopping centres accidents record, the frequency rate
of level 3, 4 and 5 accidents increased from 1.02 in 2010 to 1.48 in
2011.
Reduce the Lost Workday Case
Accidents Frequency Rate (LWCAFR) of
service suppliers in operations by at
least 5% in comparison with the 2010
result.
100%
According to the shopping centres accidents record, the LWCAFR of
service suppliers in operations decreased from 3.81 in 2010 to 2.88 in
2011, which represents a 24% reduction.
Ensure that there are zero fatalities due
to accidents in Sonae Sierra shopping
centres.
0%
Unfortunately a fatal incident occurred at a shopping centre involving a
tenants' service supplier.
100%
Sonae Sierra renewed the OHSAS 18001 certification for its corporate
SHEMS in November 2011.
100%
This target was applicable to GuimarãesShopping and LoureShopping
in Portugal; Parque Principado and GranCasa in Spain and Münster
Arkaden in Germany. All five shopping centres achieved OHSAS 18001
certification in 2011.
Renew OHSAS 18001 certification for
Sonae Sierra's Safety, Health and
Environment Management System
(SHEMS) at corporate level.
Achieve OHSAS 18001 certification for a
further five shopping centres.
Achieve OHSAS 18001 certification for
all construction sites of new shopping
centres opening in 2011 (with
Investment Proposal approved or
updated after January 2010).
N/A
This target was not applicable in 2011 as no new shopping centres
were inaugurated.
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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 independent auditor Deloitte. A list of the principal
documents reviewed with respect to each CR impact area (including Environmental Management) is provided
below.
Environmental Management
• Scanned copies of the ISO 14001 certificates awarded to LeiriaShopping, Loop5 and River Plaza Mall by Lloyds
Quality Register Assurance.
• Scanned copy of the ISO 14001 certificate awarded to Colombo office Tower Ocidente by Lloyds Quality
Register Assurance.
• Environmental Standards for Retail Development (ESRD) Audit Report developed by the ESRD auditor Edifícios
Saudáveis for the expansion project of Shopping Metrópole.
Energy and Climate
• 2010 and 2011 performance data for the indicator ‘GHG emissions of our owned portfolio and corporate offices
(tCO 2 e/m² GLA)’, verified by Deloitte.
• 2010 and 2011 performance data for the indicator ‘Electricity efficiency (excluding tenants) of our owned portfolio
(kWh/m2 mall and toilet area)’, verified by Deloitte.
Water
• 2011 performance data for the indicator ‘Water efficiency (excluding tenants) of our owned portfolio (litres/visit)’,
verified by Deloitte.
• Copies of final invoices for the water re-use system installed at 8a Avenida and the rainwater harvesting systems
installed at Centro Vasco Da Gama and ArrábidaShopping. Copies of the initial invoices for the rainwater
harvesting equipment to be installed at MadeiraShopping.
Waste
• 2011 performance data for the indicator ‘Total waste recycled as a proportion of waste produced (% by weight,
across our owned portfolio)’, for shopping centres and corporate offices, verified by Deloitte.
• 2011 performance data for the indicator ‘Proportion of total waste sent to recycling or recovery on completed
projects’, verified by Deloitte.
Biodiversity and Habitats
• Summary of Environmental Aspects and Impacts and Mitigation Measures from the Environmental Impact Study
of the Shopping Metrópole expansion project, dated March 2011. Five measures were recommended and
implemented where applicable. Supporting evidences included: copy of the site plan showing car parking
arrangements; photographs of pedestrian crossings and control points; and a description of the inspection
register.
Suppliers
• List of critical development suppliers for each relevant project, copies of the questionnaires completed by those
suppliers, and copies of the feedback letters sent by Sonae Sierra informing suppliers of their score.
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• For a randomly selected sample of shopping centres, copies of the contracts signed with new property
management suppliers or, if the target was not applicable, confirmation that no new contracts were signed.
Tenants
• 2011 performance data for the indicator ‘Tenant satisfaction index’, verified by Deloitte.
• 2011 performance data for the indicator ‘Average occupancy index (% by GLA)’, verified by Deloitte.
• Lists of selected three tenants in each country where Sonae Sierra operates; copies of the energy audits carried
out at the tenants’ unit to identify energy consumption and management practices; lists of findings and
recommendations made to tenants and agreed upon, and lists of further three tenants per country selected to go
through the same process in 2012.
Communities and Visitors
• 2011 performance data for the indicator ‘Hours spent by employees in charity organisations’, verified by Deloitte.
• Record of the total available marketing budget for 2010 for each Sonae Sierra shopping centre and 2011
performance data for the indicator ‘Marketing investments in CR and other community contributions (€)’, verified
by Deloitte.
Employees
• Record of flexible working requests from staff, showing date, content of request and whether the requests were
approved; copies of communications (email to staff, Horizon magazine) on the approved flexible policies; copy of
the recommendations made on those policies going forward.
• 2011 performance data for the indicator ‘Average hours of training per year per employee by employee category’,
verified by Deloitte.
• Sonae Sierra Peer Review and Target Setting Report which included a review of CR/sustainability information
from 12 companies and recommended maintaining the average number of training hours per employee at or
above 40 hours.
Safety and Health
• 2011 performance data for the indicator ‘Rates of injury, occupational diseases, lost day´s and absenteeism, and
total number of work-related fatalities, by region and by gender’, verified by Deloitte.
• Record of the Lost Workday Case Accidents Frequency Rate (LWCAFR) on construction works in 2010 and
2011.
• Quarterly Safety, Health and Environment Reports for 2011.
• Record of the LWCAFR for shopping centre suppliers in 2010 and 2011; and reports on 2011 lost workday case
incidents.
• Incident report about the fatality which occurred in Parque D. Pedro Shopping on 14 October 2011.
• Record of the Frequency Rate of Levels 3, 4 and 4 Category Accidents per Million Visits in 2010 and 2011.
• Copy of the OHSAS 18001 certificate awarded to Sonae Sierra by Lloyds Quality Register Assurance for its
corporate Safety, Health and Environment Management System (SHEMS) on 28 November 2011.
• Copies of the OHSAS 18001 certificates awarded to GuimarãesShopping, LoureShopping, Parque Principado,
GranCasa and Münster Arkaden by Lloyds Quality Register Assurance.
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