Our strategy
Procurement is particularly complex in the retail property industry. We have an extensive supply chain in place, and depend on our service suppliers to help us to meet our business objectives, including CR objectives. In 2007, we introduced a Responsible Procurement Policy, which encourages the inclusion of environmental and social criteria in our procurement decisions. Since 2008, we have monitored the performance of our critical suppliers against a range of social, ethical and environmental criteria and included clauses relating to safety and health, social and environmental standards in key contracts.
Our business also requires large quantities of basic materials and their manufacture, transportation and use can have adverse environmental and social impacts. Our Responsible Procurement Policy and Environmental Standards for Retail Development (ESRD) include criteria to help our staff and suppliers to select sustainable materials. |
Long-Term Objectives
| Engage with our development suppliers with the aim of encouraging them to adopt more responsible business practices. |
| Foster loyalty amongst frequently used property management suppliers, seeking to help and encourage them to adopt more responsible business practices themselves. |
| Increase the proportion of materials used in development, expansions and refurbishment projects that are sustainable materials, aiming for 100% of timber1 used to be certified sustainable timber and for the percentage of materials comprising recycled content to be increased, by 2020. |
Targets for 2011
| 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. |
| 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, health, social and environment standards. |
| Ensure that at least 50% of timber used in new shopping centres or refurbishments is procured from certified sustainable sources. |
1 The proportion of timber products used that are from sustainable sources is calculated by value of spend. The same applies to the target for 2011.
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