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CORPORATE
RESPONSIBILITY
REPORT
2005
It’s about Value...
Sonae Sierra
Company profile
Sonae Sierra is an international company specialising in the ownership, development and management
of shopping and leisure centres. Operating across Portugal, Spain, Italy, Germany, Greece and Brazil,
Sonae Sierra aims to achieve a leading position in its sector in all of these markets.
Sonae Sierra was incorporated in 1989 in Portugal and is now 50% owned by Sonae SGPS (Portugal)
and 50% by Grosvenor (United Kingdom).
Sonae Sierra's strategy is multifaceted, encompassing sustained growth based on international
expansion and a culture of innovation and excellence. Indeed, Sonae Sierra has had a significant role
in the modernisation of the shopping centre concept, having introduced new formats and integrating
retail and leisure. Other innovative concepts in the shopping centre industry introduced by Sonae Sierra
include themed and “green” shopping centres.
Report scope
This Corporate Responsibility (CR) Report should be
read alongside the Annual Review 2005 as all the
data and information presented relates to the year
ending 31 December 2005. This is Sonae Sierra’s
second CR Report, the first having been published
in March 2005.
As far as possible, the data contained within this
report covers all of Sonae Sierra’s operations across
Europe and Brazil. Where this is not the case, detailed
data qualifying notes indicate the scope of the
operations covered. It is intended to cover all business
activities, including ownership, development and
management of shopping and leisure centres.
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12
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29
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CEO STATEMENT
CR MANAGEMENT SYSTEM
STAKEHOLDER ENGAGEMENT
OUR PERFORMANCE AT A GLANCE
ECONOMIC PERFORMANCE
SOCIAL PERFORMANCE
ENVIRONMENTAL PERFORMANCE
STATEMENT FROM CR ADVISORS
GRI CONTENT INDEX
FEEDBACK FORM
The scale of Sonae Sierra’s activities, and hence the
scope of information included in this report, has
increased to 38 centres owned and co-owned by
Sierra (up from 31 in 2004), and 14 projects under
development during 2005 (up from 12 in 2004).
For further information on any aspect of this report,
please contact:
Elsa Monteiro
Head of Institutional Relations,
Environment and Communication
Email: [email protected]
p.2
p.8
p.12
p.22
CR Management
System
Economic
Performance
Social
Performance
Environmental
Performance
CEO’s Statement
“We recognise CR reporting as
a dynamic way of engaging
with our stakeholders on
issues that matter to them.
We owe them a responsibility
to be honest and transparent
about our performance ,
both good and bad,
and to continuously
improve this over time.“
It is only 15 years since we opened the first
major regional shopping and leisure centre
destination in Portugal (CascaiShopping) and
less than four months since we opened our
38th shopping centre (Serra Shopping). Yet in
that short space of time, Sonae Sierra has
made a substantial contribution to local and
national social and economic systems, and
directly affected the quality of life of hundreds
of millions of human beings. In the past year
alone: some 420 million visits were recorded
at our centres; the sales generated by our
retail tenants in the centres that we manage
generated €3,604 million; 5,400 jobs were
created as a result of our 2005 completed
developments; and we directly employed over
700 people worldwide. To Sonae Sierra,
therefore, Corporate Responsibility (CR) is not
just a ‘nice to have’ but rather a fundamental
principle of our core business!
A key component of our growth strategy is
our programme of new developments, and a
significant opportunity to operate responsibly
arises from our policy of retaining long-term
ownership in the shopping centres that we
develop. Our ongoing ‘development pipeline’
depends upon our ability to deliver innovative
and modern design solutions, which respond
to the needs of the local community and
public authorities, both now and in the future.
Ultimately, our economic success is reliant on
our shopping centres’ continuing capacity to
satisfy social needs. Throughout this report,
we provide case studies of projects at
different phases of development to illustrate
particular aspects of our CR performance.
Similarly, in managing properties already in
operation, our focus is not just on short term
gains from rental income, but rather on the
long term relationships that we nurture with
our tenants. After all, it is their strong sales
performance that underpins their ability to
pay us rent in the first place. It makes sense
for us to work in partnership with our
tenants, helping them to succeed and
allowing them to operate to maximum levels
of efficiency. Within this report, we provide
case studies of operational shopping centres
to demonstrate how CR underpins our
management activities.
We recognise CR reporting as a dynamic way
of engaging with our stakeholders on issues
that matter to them. We owe them a
responsibility to be honest and transparent
about our performance, both good and bad,
and to continuously improve this over time.
In this, our second stand-alone CR Report, we
outline our 2005 performance across a range
of Key Performance Indicators (KPIs) and
targets set in 2004. We seek to avoid
repetition with our first CR Report by placing
a lot more information on our corporate
website. Here we publish details of notable
successes, such as the certification of our
Environmental Management System (under
ISO 14001: 2004), and account for instances
of poorer performance, which we hope to
learn from and improve in future.
Finally, I am deeply inspired by, and grateful
for, the continued efforts made by Sonae
Sierra staff across all countries, to find
innovative and better ways of doing business,
which make a positive contribution to society,
the economy and the environment. In the
same way that we strive for perfection in all
our activities, we have high expectations
when it comes to CR. It is the commitment
and creativity of our staff that will ultimately
make this happen!
We appreciate all your feedback. If you are
able, please send us your suggestions and
comments which will be used to further refine
our approach. We promise to respond
individually to those who want us to.
Álvaro Portela
CEO
Of course, while it is important to evaluate
where we have come from, we also recognise
the need to set our sights firmly on the
future, towards the key challenges that lie
ahead. For a property investor such as Sonae
Sierra, we believe one critical challenge will be
the impact of climate change. We will need to
find increasingly sophisticated means of
avoiding greenhouse gas emissions, as well as
adapting against the inevitable climatic
changes that may impact on our physical
assets. To assist us in this task we already
measure, monitor and target energy use
across all of our sites and calculate the
associated carbon dioxide emissions.
Corporate Responsibility Report 2005
1
CR Management
Sonae Sierra’s approach to CR is built around a cyclical
management system, whose ultimate goal is to drive
continuous improvements in performance.
> The Company’s mission is to create value for its shareholders while taking into account
its social responsibilities towards the other important stakeholders such as partners,
tenants, employees, and local communities. We firmly believe that this balance is crucial
to achieve the sustained development of the Company. In order to achieve its vision and
mission, Sonae Sierra guides itself by corporate values and key principles of economic,
social and environmental responsibility.
Sonae Sierra’s CR policy encapsulates the Company’s commitment to sustainability, and
is accompanied by a set of long-term objectives that reflect the most significant risks
and opportunities to the business. The implementation of the CR objectives through
a set of annual targets provides the means by which the Company translates core values
into actions.
➠
➠
VISION &
MISSION
CR POLICY
Environment Policy
Safety and health policy
Etc
➠
REPORTING
➠
Corporate Values
& Key Principles
CR
OBJECTIVES
➠
➠
VERIFICATION &
VALIDATION
MONITORING
& PROGRESS
REVIEW
➠
TARGETS
& KPIs
CR Governance
The ultimate responsibility for CR rests with the CEO of Sonae Sierra, who reports to the Executive Board on all CR issues, including
environmental performance, and safety and health. In 2005, we established a CR Working Group made up of senior executives
across the business, each of whom is allocated responsibility for one or more of the significant risks/opportunities listed on the
opposite page. The Working Group meets quarterly and oversees the implementation of the CR policy, objectives and targets,
tracks progress against these, and ensures effective communication of CR, both internally and externally.
Throughout the business, and across different functions and divisions, individuals have responsibility for implementing specific
aspects of CR in their daily activities. Where applicable to their core jobs, this forms part of performance appraisals and links
through to remuneration and bonus schemes.
2
Sonae Sierra
System
CR headline objectives and significant risks/opportunities
Listed below are the headline objectives of the Sonae Sierra CR strategy, followed by the issues which we believe continue to be our
most significant business risks/opportunities. For each one of these, we have detailed objectives, targets and key performance
indicators (KPIs), around which we have structured the information included in this report and on our website (www.sonaesierra.com).
Making a positive contribution to
economic prosperity
>
Business strategy and planning
>
Business ethics
>
>
>
>
Ensuring that core business
activities improve the quality of
life of those people that they
affect
>
Safety and health
Corporate governance and risk
management
>
Employee relations
Local economic benefits
>
Tenant and visitor satisfaction
Job creation
>
Community care
Financial impact on key stakeholder
groups
>
Supplier loyalty
>
Other stakeholder concerns
Safeguarding the environment for
both current and future
generations
>
Land use
>
Emissions to air, land and water
>
Energy consumption
>
Water consumption
>
Waste production
>
Transport
Sonae Sierra corporate
responsibility website
review
During 2005, we undertook a comprehensive review of the CR
content of our corporate website (www.sonaesierra.com in the
corporate responsibility area) and the Environment Portal
(www.environment.sonaesierra.com). A key outcome of the review
was a decision to include greater detail on our environmental impacts
and performance, in addition to existing content on our approach to
CR and environmental management.
The Sonae Sierra Environment Portal currently provides complimentary
information on our environment policy, objectives and management
system. Once relaunched, in the Summer of 2006, the Environment
Portal will contain more comprehensive descriptions of our activities,
environmental impacts and management procedures, and case studies
of our approach in action. Several interactive features will also be
included.
As such, the Environment Portal will complement the annual CR
reports, including more detailed information and regular environmental
news updates.
3
Stakeholder Eng
> Stakeholder engagement is integral to an effective CR strategy. Indeed, understanding and
responding to stakeholder concerns and aspirations is a critical part of Sonae Sierra’s CR
strategy. We employ a wide range of communication methods to engage with each
stakeholder on their terms and in a way that suits their needs.
Over the past year, we have sought to further improve our understanding of the concerns
and CR expectations of some of our critical stakeholders. The two case studies contained
on the opposite page provide a summary of the findings from two extensive surveys
carried out, one with employees and the other with tenants.
Media
Investors &
Financiers
Sonae Sierra
Local
Community
Tenants
Government
Authorities
Suppliers
Visitors
4
Sonae Sierra
Employees
agement
Feedback from
employees on 2004
CR Report
As part of our commitment to stakeholder engagement, we asked
for feedback from all employees (as well as other stakeholders) on
the Company’s first CR Report. Out of the near 3,000 people to
whom we distributed the report, 4% responded with feedback,
the majority of these being employees. Contributions were also
received from investors, visitors and suppliers.
Overall, employees indicated strong support for the content of the
2004 CR Report, with the vast majority either agreeing or strongly
agreeing that the content and KPIs covered the issues they
consider to be most relevant to Sonae Sierra’s business. Over 75%
of employees who responded thought that the length of the report
was good or excellent, and graphic representation was also rated
as good or excellent by over 80%. A number suggested that the
report was too long and that a summary report may be a useful
addition for next year. This has prompted us to include a loose-leaf
Executive Summary in this 2005 CR Report.
Feedback from 2005
tenants survey
During 2005, Sonae Sierra undertook some research into the CR
related values of several major occupiers, who occupy retail units in
Sierra shopping centres in several different countries. This research,
undertaken in-house, will be supplemented by more in-depth face
to face interviews and questionnaires with a small handful of major
occupiers during 2006.
In addition, in January 2006, some CR related questions were
incorporated into the tenant surveys which are issued to
managers of all retail units throughout the shopping centre
portfolio in Europe. In analysing the responses, Sierra included
only those shopping centres where at least 40% of tenants
responded to the survey questionnaire. The initial findings
suggest that:
>
10% of tenants in Portugal, and just under 30% of tenants in
Spain, claim to have a CR programme for their retail units.
>
23% of tenants in Portugal, and 19% of tenants in Spain,
claim that their retail unit staff participate in social projects.
The targets set by Sonae Sierra were also generally seen as very
effective, although in the detailed comments, some felt that the
targets should be more specific and performance related.
>
69% of tenants in Portugal, and 42% of tenants in Spain,
claim to have an Environment Policy in place within their
retail units.
Below we list some specific comments made by employees,
alongside our response:
>
Respondents in both Portugal and Spain rated the following
characteristics as being the most important environmental
actions that could be taken within individual centres:
“The report is too extensive. It is hard to assess whether
some of the goals have been achieved or not. The goals
should be more specific.”
Response: For 2006, we have only included in this printed CR
Report our performance related CR targets.
“Excessive use of foreign expressions and ‘neologisms’ in the
Portuguese text.”
– Natural plants within the centre and in car park areas.
– Ecological messages for tenants and visitors throughout the
centre.
– Segregated waste bins.
Response: We are trying to improve the quality of translation from
English to Portuguese.
Sonae Sierra is a member of the Property Environment Group – this is a sustainability benchmarking network for property companies and
shopping centres in the UK and mainland Europe (www.upstreamstrategies.co.uk/peg).
5
Our Performance
at a Glance
> Listed below is a series of absolute performance indicators that are intended to provide a
quick summary of the scale of our CR impacts during 2005. They are not intended to provide
an indication of efficiency, nor to demonstrate performance over time. They are simply
provided as measures of the overall impact of our activities in 2005.
Headline Performance Indicators
2005 Performance
Economic
EBITDA (€ million)
Dividend payout (%)
125.7
50.0*
Rental income (€ million)
269.7
Number of jobs created (No.)
5,400
Total taxes paid (€ million)
Total customer sales (€ million)
48.6
3,604
Social
Total number of Safety and health accidents amongst staff that led to injury
lost time (No.)
4
Total spent on employee training and development (€ million)
0.66
Total spent on community investment activities (€ million)
0.16
Environmental
Total electricity consumption in owned centres under management (Gigajoules)
Total associated C02 emissions from building electricity use in
owned centres under management (Tonnes)
Total water use in owned centres under management (Cubic metres)
Total weight of waste to landfill / incineration in owned centres under
management (Tonnes)
Total weight of waste reused / recycled / reclaimed in owned centres
under management (Tonnes)
682,894
69,380**
1,133,708
23,139
7,771
Total number and value of environmental fines paid (No. and €)
*
Sonae Sierra dividend payout policy is to distribute 50% of the consolidated direct net profit after taxes and minorities.
** Conversion factors using the International Energy Agency data as outlined by GHG Protocol Initiative.
6
Sonae Sierra
0
Progress against 2005 targets
Sonae Sierra set itself 33 public targets in relation to different aspects of CR, for achievement during 2005. The table below summarises
how we performed against these, using the following classifications of achievement:
Percentage completion
Level of progress achieved
0%
25%
50%
75%
100%
No progress
Action initiated but little progress
Some progress, action half completed
Substantial progress
Target fully achieved
Our CR advisors, Upstream, have undertaken an audit of our performance against these targets to establish the level of progress achieved in
each case. For further details of their findings, see the Statement from CR advisors (page 29) of this report.
Table 1 Progress against targets 2005
CR impact area
Number of
targets
0%
25%
50%
75%
100%
Business Management
2
1
Tenants & Visitors
3
1
Employees
4
1
Community
4
1
3
2
5
11
7
6
15
Other Stakeholders
1
1
2
1
1
1
1
Environment
19
1
TOTAL
33
3
2
For further details on these targets and a description of the extent to which each one was achieved, please see our website, www.sonaesierra.com in the corporate
responsibility area.
Targets for 2006
Each year, Sonae Sierra sets itself a number of targets against
each CR objective, which form the basis of the following year’s
CR action plan and seek to ensure that we meet our goal of
continuous improvement in both management and performance.
Responsibility for each target is allocated to senior executives
within the Company who are responsible for overseeing their
delivery.
Listed below are only those 2006 targets that are quantitative
performance improvement targets. Related to the same period, we
have also set ourselves a wide range of management targets which
can be found on our website. Please see: www.sonaesierra.com for
more details. In our 2006 CR Report, we will report on progress
against all 2006 CR targets – both management and performance.
2006 CR Performance Targets
Social
Safety and health
Achieve zero injury lost days amongst Sierra's direct employees
as a result of workplace accidents.
Achieve zero fatalities or preventable major injuries across the
Sierra portfolio.
Environmental
Environment: Development – Corporate Wide
Ensure that all projects achieve 100% of compliance with critical
environmental standards (ESRD).
Environment: Operations – Greece
Increase the proportion of total waste recycled (by weight) by 10
percentage-points in 2006 in the Greek centre.
At the time of each centre’s opening day, to have achieved ISO
14001 certification for 100% of construction sites (by number).
Environment: Operations – Brazil
Increase the proportion of total waste recycled (by weight) by
6 percentage-points in 2006 compared to 2005, aggregated across
all Brazilian centres.
Environment: Operations – Portugal
percentage-points in 2006 compared to 2005, aggregated
across all Portuguese centres.
Environment: Operations – Spain
percentage-points in 2006 compared to 2005, aggregated
across all Spanish centres.
Environment: Occupied Offices
Corporate wide: Increase the proportion of total waste recycled
(by weight) by 10 percentage-points in 2006 compared to 2005,
aggregated across all Sonae Sierra offices.
São Paulo offices: Reduce the total amount of paper/cardboard
waste (by weight) produced by 5 percentage-points in 2006
compared to 2005.
7
Economic Perform
> “At Sonae Sierra, we believe that securing sustainable financial returns depends upon our
continued ability to provide high quality services to our tenants and the visitors to our
centres, while simultaneously securing social and environmental benefits so as to ensure
buy-in from local communities. We also consider that our contribution to economic wealth
creation goes clearly beyond the profit generated for shareholders. We pay taxes in
significant amounts, we maintain and continue to create highly qualified job positions in
the Company, and we generate business both for our suppliers and tenants.”
Joaquim Ribeiro, Head of Finance, Planning and Control
Business strategy and planning
Sonae Sierra’s business strategy remains the same, which is to
ensure growth through developing new shopping centres in
locations where there is demand. Additionally, we continue to
retain a substantial investment interest in these centres once they
become operational, and to add value through intensive
management of the whole portfolio. The success of this strategy is
evident in the continuing growth in EBITDA over time.
Figure 1 Continuous growth in EBITDA over five year period
01
73.8
02
96
03
98
04
107.6
05
126
Business ethics
One of our targets for 2005 was to develop and publish a formal
Code of Conduct for employees and suppliers, principally to
address bribery and corruption, and to link this to a whistle
blowing procedure for employees.
Published in December 2005, the Code of Conduct establishes and
promotes fundamental aspects of ethical behaviour that Sonae
Sierra’s Board believes should be adopted across all our activities.
Over the course of 2006, we will be promoting the Code, issuing a
printed brochure and running workshops to explain to staff what
sits behind the Code of Conduct, and how it works.
Corporate governance and risk management
The Board of Directors of Sonae Sierra has been expanded by the
appointment of two new Directors, an Executive Director, and a
Non-Executive Director.
Sonae Sierra’s ownership structure also changed as Grosvenor
increased its shareholding from 33% to 50% in December 2005.
For more details on corporate governance at Sonae Sierra, please
visit: www.sonaesierra.com.
In terms of risk management, the Company continues to show a
solid Balance Sheet, with a very comfortable level of indebtedness
(asset gearing of 31.9%) and a high level of interest-rate hedging
(66.1% of the interest-bearing debt).
➠
EBITDA (€ million)
Data qualifying note: Please note that the data in Figure 1 of the 2004
CR Report was incorrect, it has been rectified here.
Figure 2 Continuous growth in the number of tenant contracts
and gross lettable area (GLA – 000m2) under management over
five year period
01
3,949
02
5,089
03
5,398
04
6,134
05
7,166
0
8
1000
537,000 m2 GLA in 14 projects under
development in Portugal, Spain, Italy,
Germany, Greece and Brazil
Sonae Sierra
2000 (000 m2)
Figure 3 Geographical breakdown of markets (total rent received
per country – € million) [GRI Reference: EC2]
Portugal 04
05
156
161
Spain 04
05
2 million m2 of gross lettable area (GLA) in
38 shopping centres owned or co-owned
in Portugal, Spain, Italy, Greece and Brazil
1500
Number of tenant contracts under management
GLA under management (000 m2)
47
64
23
Brazil 04
05
35
Italy 04 0
05
8
Greece
➠
500
04 0
05 1
Total rent received (€ million) 2004
Total rent received (€ million) 2005
Data qualifying note: The 2005 data encompasses the total rent received in
100% Sonae Sierra’s owned shopping centres under management.
mance
Luz del Tajo: the experience
of Gálvez Joyeros
“As a traditional high-street retailer, we approached the
opportunity of expanding our business into Luz del Tajo with
caution. After careful consideration of the statistics provided
by Sonae Sierra, we were confident that Luz del Tajo would
be a commercially sound investment for our business, and
also economically beneficial for Toledo and its region, which
had historically looked to Madrid for shopping.
Local economic benefits
In our new developments, we continue to allocate a number of
units specifically for local retailers. In the case study to the right,
Gálvez Joyeros, a high quality jewellers based in Toledo, and
established in 1990, describe in their own words the experience
of expanding their business from the high street to a shopping
centre environment.
Where Gálvez Joyeros is concerned, Luz del Tajo has had a
highly positive effect on our business and changed our way
of thinking and our opinion of the possibilities that these
shopping centres can offer to retailers. Statistics have even
shown that customers at Luz del Tajo are becoming loyal to
our brand, visiting our store many times each year, unlike our
high street stores which are more dependent on catching the
attention of passing customers.
Job creation
We continue to monitor the number of jobs created by our
new developments, although to date this has principally been
done for marketing purposes. We are keen to standardise the
calculation methodology that we use to estimate the number
of jobs created, and to revisit the accuracy of such figures after
inauguration to compare them with actual numbers of jobs
created. This is something which we will be looking to refine
and formally approve during 2006.
As a company, we feel that Sonae Sierra has done a good job
at Luz del Tajo, with accurate forecasts and a responsive
approach to problem solving. We look forward to many more
years of successful trading in Luz del Tajo.”
Juan Francisco Gálvez Soto, Manager, Gálvez Joyeros
Table 2 Job creation resulting from completed developments [GRI Reference: LA2]
2
Total GLA of completed construction (m )
Construction cost (€ million)
Number of jobs created
LoureShopping
Plaza Éboli
Serra
Shopping
Mediterranean
Cosmos
TOTAL
38,943
31,070
17,681
45,958
133,652
55
32
24
66
177
1,000
1,100
800
2,500
5,400
Number of jobs created per € million of construction cost
18
34
33
38
31
Number of jobs created per 100m2 of GLA
2.6
3.5
4.5
5.4
4
Data qualifying note: This data encompasses all 4 developments that were completed and inaugurated in 2005.
➠ EBITDA of
€125.7 million
➠ Net Profit of
€148.1 million
9
Financial impact on key stakeholders
We are aware of the significant financial impact we have on a wide range of stakeholders, be they our tenants, suppliers, investors or
employees. The diagram below builds on the 2004 CR Report (page 12), and depicts the financial and non-financial flows between Sonae
Sierra and some of our key stakeholders.
Figure 4 Illustration of Sonae Sierra’s financial impact on key stakeholder groups, and derived value of the relationships
Suppliers
Investment in
local infrastructure
and equipment
€8.6 million
[GRI Reference: EC12]
Total spend on supplies
€129.3 million
[GRI Reference: EC3; EC11 (partial)]
➠
Planning permission
➠
Local taxes
€48.6 million
➠
Subsidies received €0
➠
➠
➠
Goods
and
Services
➠
Public Authorities
Rental income €269.7 million
Sonae Sierra
Customers
Business space and
growth opportunities
➠ ➠
➠
➠
➠
Employees
Productivity
and
innovation
➠
Dividend
payouts
50%
Distributions to
providers of capital
€43.1 million
Capital
Investors / Financiers
Data qualifying note: The data in this diagram encompasses all centres under management.
10
Sonae Sierra
➠
Total payroll and
benefits €43.3 million
[GRI REference: EC5]
Tenant sales performance
€3,604 million
[GRI Reference: EC13 (partial)]
Case studies: Shopping centres
under management
Safety & Health
Parque D. Pedro – setting the
standard in Brazil
The Sierra team at Parque D. Pedro is taking
the lead in the Personæ project in Brazil, by
involving contractors and tenants in a range
of innovative ways to implement an integrated
Safety & Health Management System.
Implementation of the system includes:
>
The creation of an accident investigation commission that
treats accidents as a learning opportunity, and actively
communicates its findings to all stakeholders and also to
other Sierra shopping centres.
>
The launch of a Safety Championship, based on the
popular "Damas" game (checkers), the main objective
being to train contractors on the technical aspects of
inspections.
>
A partnership with a local disabled peoples' NGO,
identifying physical barriers, high risk areas and
emergency evacuation procedures.
>
Regular Safety Preventive Observations, by the main
stakeholders (Sierra employees, contractors and tenants).
More than 250 took place in the second half of 2005.
Personæ in Spanish shopping centres
The exemplary adoption of the Personæ
project in Sierra’s shopping centres in Spain
is the result of effective teamwork by all
members of Property Management Spain.
ISO 14001
certification
Centro Colombo and NorteShopping were
awarded certification in accordance with
ISO Standard 14001:2004 in December
2005. This was the culmination of a long
journey for both centres.
Starting from initial concept stages, Centro Colombo and
NorteShopping were carefully designed to satisfy Sonae
Sierra’s Environmental Management System requirements.
Examples of innovative environmental practices implemented
at both centres include:
>
Optimised energy consumption by way of an intelligent
Building Management System (BMS);
>
Minimized water consumption through the use of
sophisticated timer systems for taps, and other
equipment;
>
Installation of the latest waste segregation equipment.
ISO 14001 certification has had a positive impact at both
centres by providing a means for engaging with interested
stakeholders (visitors, tenants, employees and suppliers).
Whilst we recognise that ISO 14001 certification does not
represent an end in itself, we view certification as one more
step to more sustainable development, and an important tool
to achieve our corporate commitment of continuous
improvement. There are also commercial benefits of cost
savings associated with environmental efficiencies, which we
firmly believe have the potential to enhance the Company’s
asset value.
It is also testament to the visible commitment of the
Operations Manager in Spain, who has been instrumental to
Personæ’s success in this country. The approach taken in
Spain includes:
>
Communication of at least two safety and health best
practices per month by each centre, based on the Quick
Wins concept of Personæ, available to all via the
Company’s intranet.
>
High frequency of Safety Preventive Observations on
all sites, including by Regional Managers and Country
Manager, allowing for early detection and correction
of serious ‘non-conformances’.
>
Involvement by Site Managers in the development of
Sierra’s corporate Safety & Health Management System.
11
Social Performan
Sonae Sierra’s impacts on society are many, varied and wide
ranging. Many are positive, some, unfortunately are negative.
This section explores both these positive and negative impacts
and Sonae Sierra’s performance relating to them.
> “At Sonae Sierra, the safety and health of all our staff and those people we affect is of
paramount importance. Through implementing a new proactive risk assessment and
awareness-raising methodology of Safety Preventive Observations, we seek to embed a zero
accident culture across all our business activities. Of course, with a portfolio as geographically
spread as ours and the interdependence our activity has with contractors and tenants, this is a
major challenge, and we still have a long way to go. But we believe it is a critical area of
responsibility for us as an employer, landlord, client, partner and investor.”
Pedro Soveral Rodrigues, Head of Safety & Health
Safety and health
Launched in September 2004 and devised in
partnership with Dupont (specialist safety and
health advisors), Personæ is fundamental to
the sea change in safety and health culture
that Sonae Sierra hopes to embed amongst
our staff, contractors and tenants.
2005 was very eventful for all involved in
Personæ, not least because the programme
was successfully launched across all countries
in which Sonae Sierra operates. This included
the roll out of Safety Preventive Observations
(SPO), as a key tool in the delivery of safer
working environments for all our
stakeholders. SPO visits identify ‘nonconformances’ which become opportunities
to engage in awareness-raising interviews
with the people that can prevent those non
conformances to occur again. In essence, the
system pre-empts safety and health hazards
before they occur. During 2005, 1203 hours
of SPO were performed. We will look to
increase this yet further next year, as Sonae
Sierra employees and contractors become
more accustomed to our safety and health
practices. Furthermore, there were 11.24
‘non-conformances’ per hour of SPO. This
suggests that on average, a little more than
11 unsafe acts or behaviour-created unsafe
conditions were detected per each hour of
observation. We would expect this figure to
initially increase over time (i.e. in the first half
of 2006) as people become more capable in
identifying ‘non-conformances’. However, by
the second half of the year ahead, we would
expect to see the trend reverse, as people
working in our sites become aware of their
own contribution to everyone’s safety, and
the average level of ‘non-conformances’ per
hour consequently decreases.
12
Sonae Sierra
Figure 5 Total safety and health training
provided (number of man hours)
Sonae Sierra and Dupont have trained site
managers, tenants, and even Sonae Sierra
top management representatives in
undertaking effective SPOs. Centres across
the portfolio have also been sharing best
practice, in some cases collaborating with
larger tenants, who have jointly delivered on
the Company’s safety and health objectives.
04
2006 is set to be yet another crucial year
for Personæ, as we seek to consolidate the
lessons learnt so far, and further embed the
safety culture throughout our own
operations and those of the main key
stakeholders, the tenants.
Data qualifying note: The data only relates to
safety and health training provided under the Personæ
programme. Please note that the data in Table 6 of
the 2004 CR Report was incorrect, it has been
rectified here.
840
05
4,396
0
1000
2000
3000
4000
Number of man hours 2004
Number of man hours 2005
During 2005, we provided 201 hours of
safety and health training. In all, 1,821
people participated in this training,
including Sonae Sierra staff and contractors.
Figure 5 also shows how we substantially
increased the number of man hours of
safety and health training, largely due to
the launch of the Personæ programme.
During 2005, we also increased the number
of drills performed, with a total of 57 drills
across 38 sites. This represents a total of
1.5 safety and health drills per site over
the year.
Table 3 Total safety and health incidents which occurred during 2005 (Sonae Sierra staff) [GRI
Reference: LA7]
Safety and health incidents
Total
Fatalities
0
Accidents (injuries with lost staff time)
No. of accidents with lost workday, per 100,000 hours worked
4
0.36
Data qualifying note: The data relates to incidents incurred as a result of work-related incidents amongst
Sonae Sierra’s direct employees only. It does not include tenants, visitors or suppliers.
nce
➠
709 Employees worldwide,
87% located in Europe
> “A company is nothing without its people. This is especially so for Sonae Sierra, as we
require inspired and visionary staff to deliver our commitment to innovation and excellence,
and to achieve our mission of being a leader in all the markets in which we operate.
By investing in our staff, and respecting each individual for their unique potential, we
aim to create a culture which aligns and integrates both our corporate objectives and
our employees’ personal goals.”
Luis Carvalho Marques, Director, Human Resources and Back Office
Employee relations
Employee satisfaction
Sonae Sierra believes that, to some extent, the number of years that
employees spend within the Company reflects their general contentment
levels. However, due to rapid growth in employee numbers, we continue
to have significant proportions of staff who joined the Company less
than five years ago (see Figure 6, right).
During 2005, Sonae Sierra launched a new project aimed at developing
and gradually implementing best practice ergonomic standards across all
its relevant activities. The need arose in recognition of the very wideranging working environments which directly employed staff might be
operating in – ranging from Head Office staff to centre management
office staff and security control room staff.
Figure 6 Length of service at 31 December
2005 (years)
<2
31%
2 to 5
34%
6 to 10
22%
>10
13%
Overseen by a cross-functional Working Group made up of both staff
and external experts, the standards will include the following issues:
>
Lighting levels and controls
>
Noise levels
>
Space requirements
>
Furniture (desks and chairs)
>
Furnishings (carpets and paints)
>
IT equipment and accessories
During 2006 and 2007, ergonomic analyses will be conducted across
different workplaces within the Company in Iberian Peninsula –
including design and construction, management and procurement
functions – and staff will be interviewed to determine baseline
performance against the ergonomic standards. On the basis of the
findings of these analyses, Sonae Sierra will be putting into place a longterm action plan to address issues of non-compliance. At the same time,
Sierra’s aim is to embed the ergonomic standards within standard safety
and health procedures that must be complied with at all sites and offices
across all countries.
13
Remuneration and benefits
Sonae Sierra continues to pay careful thought to the appropriate levels of remuneration and benefits for staff, introducing differing
packages at different levels of responsibility within the Company. During 2005, the Company spent a total of €43.3 million across all
countries. See Table 4 below.
Table 4 Total Sonae Sierra payroll and benefits in 2005, broken down by country (€)
Payroll
(€)
Portugal
Benefits
(€)
Total
(€)
21,821,387
418,913
22,240,300
Spain
6,354,772
111,958
6,466,730
Brazil
7,706,521
230,191
7,936,712
Germany
4,173,528
40,914
4,214,442
Italy
1,342,486
390,851
1,733,337
631,377
12,278
643,655
42,136,975
1,205,105
43,342,080
Greece
Total
Data qualifying note: The total payroll figure includes Sonae Sierra spending in Holland. Benefits include Safety and Health at Work; Accidents at Work Insurance; Life
Insurance; Personal Accident Insurance; Health Insurance.
Equal opportunities
Sonae Sierra remains committed to the principal of equal opportunities and continues to monitor workforce diversity according to a range
of different characteristics. See Figures 7, 8 and 9: Composition of workforce by gender and Figure 10: Composition of workforce by age
[GRI Reference: LA1; LA11]
Figure 7
Workforce (All staff)
Male
Figure 8
Workforce (Management staff)
50%
Male
Female 50%
80%
Female 20%
Figure 9
Workforce (Directors)
Figure 10
Workforce profile by age
93%
20-29 30%
Female 7%
30-39 44%
Male
40-49 19%
50-59
6%
>60
1%
Training and development
Figure 11 Investment per capita in staff training and development for
Portugal and Spain (€ per capita) [GRI Reference: LA9]
04
Figure 12 Proportion of training undertaken by type (by number of
employee hours)
1,503 (Portugal and Spain)
05
966 (Portugal and Spain)
05
935 (All countries)
Languages
56%
Behavioural
25%
Technical
19%
€ per capita
Data qualifying note: The data from 2004 refers to investment in training and
development for Portugal and Spain only. The 2005 figures include one for Portugal
and Spain only and another one for all countries in which Sonae Sierra has
operations, including also Portugal and Spain.
During 2005, Sonae Sierra continued to deliver extensive staff
training and development opportunities, as illustrated by the
following examples:
14
>
Several employees attended sustainability workshops organised
by the Business Council for Sustainable Development –
Portugal. On the back of this, we are looking to develop tools
during 2006 to facilitate the lessons learnt, being disseminated
to wider groups of staff.
>
Over 20 different environmental training sessions took place
during the year, ranging in duration from 45 minutes to one
whole day. These were targeted at a range of different business
activities, environmental impacts, staff levels, and countries of
operation. Examples of training provided including induction to
the corporate policy and EMS for new starters, waste
management training for centre management and technical
staff, environmental communications for marketing executives,
and implementing Environmental Standards for Retail
Developments (ESRD) for project managers and architects.
Sonae Sierra
>
Continuing with our brand realignment programme, 47
internal workshops took place during the year, involving staff
across all countries. The workshops served two main objectives:
to inform staff about the purpose and meaning of the new
brand, highlighting the individual attitudes and values required;
and to receive suggestions from staff about things which they
consider should be changed within the Company. This resulted
in a number of new procedures being introduced to address
employees’ suggestions.
>
Following a 360 degree evaluation, top management staff
received coaching on how to bridge the gap between their
performance in principle and in practice. In 2006, this
programme will be rolled out for middle management staff.
We are also putting in place a series of informal meetings
between staff at all levels and Executive Board Members, as
well as inviting external speakers and opinion makers to make
presentations at more social events.
>
Safety and health training was of 5 different kinds: a Personæ
Road Show (started in late 2004) with 25 sessions performed in
2005; a Foundation Training (basic explanation of the Safety &
Health Management System) with 7 sessions; 5 “Train-thetrainer” sessions (where training was provided to sites on how
to make effective safety presentations for staff, contractors and
tenants); Safety Preventive Observations’ training (9 sessions);
and, finally, 28 Foundation Training sessions delivered locally by
Site Correspondents having previously attended the “Train-thetrainer”, to staff, contractors and tenants of each site.
Openness and communication
During 2005, Sonae Sierra launched an internal quarterly magazine
called Horizons, created as a communication tool to inform all
employees of the latest news about the Company but also to
reinforce the new brand attributes and image. Horizons is a useful
tool to share good practices across all of Sonae Sierra’s operating
countries, and to relay important corporate messages and
behaviours to employees. By sending the magazine directly to
employees’ home addresses, we have found that family members
also benefit from being more informed about the Company.
Tenant satisfaction
Sonae Sierra continues to monitor tenant satisfaction through
bi-annual surveys covering all centres under management. We
strive to maintain high levels of satisfaction amongst our tenants,
as reflected in part by the high occupancy ratios across our
portfolio (see Figure 13). Figure 14 also shows how tenants
evaluated our performance in 2005 against a range of operational
factors, including aspects such as safety and cleanliness.
Figure 13 Average occupancy index at 31 December each year, by GLA
[GRI Reference: PR8 (partial)]
04
93.3%
05
93.9%
Occupancy index at Dec 2004
Occupancy index at Dec 2005
Data qualifying note: This data encompasses all centres under management.
Be Innovative programme
Be Innovative, launched by Sonae Sierra during 2005, is
designed to inspire new ideas and foster innovation throughout
the organisation, regardless of function or position.
Under the programme, employees are encouraged to submit
new ideas, all of which are evaluated by a representative
panel from across the business for their innovation and ease
of implementation. Every quarter a winner is selected, and
rewarded with a celebratory box of champagne. Every year,
the best overall suggestion entitles the winner to €1,000
vouchers to spend on a personal trip or adventure of their
choice. All interesting suggestions are automatically sent to
managers and directors for consideration and potential
implementation.
In all, 113 suggestions were received during 2005, and next
year employees will be encouraged to submit ideas related to
specific issues of relevance to Sierra’s business.
Tenant and visitor satisfaction
“Without tenants and visitors, our
shopping centres would be empty and we
would be out of business. Their success
and satisfaction is our most valuable asset.
Not only does our growth go hand in hand
with that of our tenants, but we also
recognise that we have valuable lessons to
learn from both them and their customers.
Ultimately our challenge as a business is to
ensure that we continue to deliver a service
offer which meets their own thoughts and
aspirations, and that requires very careful
listening and tuning in.”
Antonio Casanova, Executive Director, Key Accounts, Marketing
and New Technologies Business
Figure 14 Tenant evaluation of selected operational factors
during 2005 tenant surveys [GRI Reference: PR8 (partial)]
Shopping centre 04
cleaning 05
Flowers and plants
3.20
3.06
04
05
3.02
2.95
Safety of people 04
and goods in the
shopping centre 05
2.84
2.74
Safety of people and 04
goods in the car park 05
2.72
2.71
Temperature of 04
the shopping 05
centre
2.67
2.61
Average Tenant evaluation: 1 (very bad) to 4 (very good)
2004 Average (Portugal and Spain)
2005 Average (Portugal, Spain and Brazil)
Data qualifying note: This data encompasses tenant survey findings at 13 shopping
centres in Portugal and Spain (2004), and 23 in Portugal, Spain and Brazil (2005).
Brazil does not include Shopping Plaza Sul. The figures are derived from overall
averages using results obtained from bi-annual tenant surveys undertaken at centres
under management, where tenants are asked to rank certain centre management
factors on a scale of 1 (very bad) to 4 (very good).
International growth for Loja
do Gato Preto
Loja do Gato Preto is a home equipment store which was
originally founded in Portugal in 1986. Having successfully
designed a unique style of its own, and thereby built the
brand, the Company now operates more than 20 stores in
Portugal and 6 in Spain. The Company has grown successfully
alongside Sonae Sierra, and boasts an impressive reputation
in both of these countries. With more than one third of the
company's stores located in Sierra Centres, fostering positive
relationships has been crucial to the continued growth of Loja
do Gato Preto as a successful and strong brand.
In 2005, this culminated with a nomination for the MAPIC
awards to recognise those retailers that have demonstrated
the most rapid and dynamic international growth in the
previous year. This was the first such nomination to be
received by a Portuguese company, and is testimony in part to
the success that the tenant has benefited from in partnering
with Sonae Sierra.
15
Quality of visitor experience/satisfaction
Sonae Sierra continues to undertake twice yearly visitor surveys at
each of our operational centres. These surveys are crucial tools in
evaluating visitor experiences, and we are grateful for all the
feedback received. A summary of the 2005 visitor feedback survey
results can be found in Figure 15.
Figure 15 Visitor feedback on selected operational factors during 2005
visitor satisfaction surveys [GRI Reference: PR8 (partial)]
Perceived hygiene
and meal preparation
Shopping centre
staff attendance
(security, cleaning etc.)
04
05
3.10
04
05
3.10
3.27
3.39
Bathroom 04
cleaning 05
3.15
3.18
Access facility to 04
the SC interior 05
3.15
3.12
Tenant mix 04
variety 05
3.05
3.03
Temperature 04
inside the SC 05
2.95
3.01
04
05
2.72
2.78
Car park security
Visitor feedback: 1 (very bad) to 4 (very good)
Data qualifying note: A survey of visitor feedback has been undertaken in Brazil,
though it did not use the same criteria as in Portugal and Spain. It is, therefore,
excluded from the data above. Additionally, the 2005 average for 'Perceived
hygiene and meal preparation' excludes Spain, though in 2004 'Perceived hygiene
and meal preparation' includes both Portugal and Spain. The figures are derived
from overall averages using results obtained from visitor surveys undertaken at
centres under management, where a random sample of visitors are asked to rank
certain centre management factors on a scale of 1 (very bad) to 4 (very good).
Ensuring highest standards
of food hygiene for visitors
In 1999, Sonae Sierra demonstrated its concern for food
safety and hygiene by awarding exclusive responsibility for
auditing and monitoring the legal compliance of restaurant
and catering installations to the Portuguese Vocational
Training Centre for the Food Sector (CFPSA). This partnership
now extends to the auditing of hygiene in catering
equipment and operations at all shopping centres operated
by Sonae Sierra throughout Portugal. Such audits include
food sampling, cleanliness swabs, quality checks on frying oil,
air quality monitoring, and training.
Sonae Sierra continues to take seriously its responsibility for
ensuring that the public can rely on the safety and hygiene of
food eaten in Sierra centres.
“A simple business relationship has evolved organically into a
very healthy technical partnership which we believe leads to
high levels of quality in service, and that is becoming both
partners’ trademark.”
Maria Gracinda Ramos, Director, CFPSA
Accessibility
2005 saw a record 150 events for disabled persons across 15 of our centres.
NorteShopping: Access
In response to comments received from physically disabled visitors, NorteShopping (Portugal) decided to create 20 exclusive parking
spaces barred with a lockable chain and to distribute the access keys to regular customers with physical disabilities.
Applicants for a key were invited to fill in two forms, stating the nature of their physical disability. A direct mailing was also sent to all
the physically disabled people who had written to NorteShopping in the past, to inform them of this new service.
To date, 144 keys have been registered. Interest in the scheme has been far greater than expected, especially given the absence of
advertising. NorteShopping has been able to successfully connect with a traditionally marginalised group of visitors, who now feel a
greater affinity to the centre due to the special arrangements that have been put in place.
CR/Environmental Engagement
Over the course of 2005, Sonae Sierra has rolled out a range of environmental and safety awareness and
training activities, as a tool to promote better performance across the Company's centres.
Arrábida Shopping: Environmental and Safety Workshop
Arrábida Shopping (Portugal) provides an innovative example of environmental engagement with tenants. In November 2005,
environmental and safety issues were combined, as part of a dynamic workshop for all tenants. Several experts were invited to provide
training on specific environmental and safety themes, providing both technical and practical information on issues such as internal air
quality, energy efficiency, waste and effective fire management. Key messages from the workshop were disseminated through a notebook,
which was made available to all participants after the event.
The session was well received, and many participating tenants suggested that similar practical and technical training events would be
of use again in the near future.
16
Sonae Sierra
Community care
“Our shopping centres are more successful the more they interact with the communities
around them. Through active dialogue with local organisations and continued investment,
we seek to improve local community facilities, services and cultural events. Shopping
centres are an integral part of community life. We wish to integrate our centres into the
local fabric of towns and communities, such that they play an important role in the lives of
local residents, businesses and municipalities.”
Ana Guedes Oliveira Sierra Investments, Managing Director
Sonae Sierra seeks to use its shopping and leisure centres for the benefit of the community where
possible, and one important way of doing this is to hold events for particular groups or around specific
themes. During 2005, we held a total of 15 cultural events for centre visitors.
Mediterranean Cosmos:
Community involvement Local clean the beach
campaign
Mediterranean Cosmos, the first Greek shopping and leisure
centre that Sierra Charagionis and Lamda have developed in
Greece, organised its first environmental event in July 2005
“Mediterranean Cosmos: Clean Cosmos”.
The event was run in collaboration with the local municipality
and charity groups. Its purpose was to clean the beautiful
beach of Afytos, a traditional village beach resort, situated in
Halkidiki, and only a short distance away from Mediterranean
Cosmos. Hundreds of volunteers of all ages gathered on a
sunny day to clean the beach. All helpers received a gift pack,
containing a hat, t-shirt, beach bag, beach towels and snacks.
Centro Colombo: “Stories
that Count” Christmas book
In December 2005, Centro Colombo (Portugal) published
“Stories that Count”, a book about human stories, hope,
altruism, solidarity and care. 12 Portuguese writers were
invited to publish stories in the book, and all contributed to
the idea with enthusiasm, believing in its value to encourage
people to read.
Costing just €3 each, 50,000 books were published, 20,000
of which were sold with “Público” newspaper. The other
30,000 were made available at Centro Colombo.
Furthermore, for every book sold, €1 was donated to the
“Instituto de Apoio à Criança”, a social care charity for
unprotected children. The money raised from total books
sales was to put towards the construction of a pedagogic
centre.
17
Community investment
During 2005, Sonae Sierra donated a total of €360,175 on
charitable and cultural initiatives, which includes donations
associated with centres under development and owned centres
under management in all countries where Sierra operates.
During the year, Sonae Sierra also launched a formal employee
volunteering policy, under which all employees are entitled to 1 day
of work time per year to contribute to a charitable or community
initiative of their choice. In the coming year, we will seek to identify
three or four strategic partnerships to enable us to contribute to
similar objectives through both charitable giving and staff time.
In addition, partly as a result of Sonae Sierra allowing fundraising
within its owned centres under management, a total of €128,196
was donated by visitors of Sonae Sierra centres to local charities
and non-governmental organisations during 2005.
Parque D. Pedro, Brazil:
Parque Linear
Parque D. Pedro Shopping in Campinas, São Paulo, has been
involved since 1998 in a project to recover the primitive
woodland around the river “Ribeirão das Pedras”.
Recognising the importance of Parque Linear to local people,
Parque D. Pedro privately financed three sections of the
woodland’s restoration (all located in the vicinity of the
shopping centre) – an area equivalent to 38 football fields.
With intense environmental degradation through long term
human abuse and neglect, Parque D. Pedro Shopping’s
investment focus has been on:
1. The recovery of primitive woodland.
➠
18
€128,196 donated to local
charities and non-governmental
organisations by visitors of
Sonae Sierra centres during
2005.
Sonae Sierra
2. The preservation of wild fauna.
3. The control of overflow rain water.
4. The implementation of a cycle way and walking paths,
to promote positive human use of the area.
Over the 5 years that Parque D. Pedro has been involved in
the project, 35,000 native trees have been planted.
Furthermore, this flora improvement has provided better food
supply and shelter to the existing wildlife. Indeed, from the
first year, this project has identified the growth in 26 species
of animals, including new migratory species.
“At Sonae Sierra, we believe that our
suppliers represent an extension of our
back office – largely invisible but crucial
in their contributions. We respect and
acknowledge their expertise, seeking to
learn from them in a partnership based
approach. Their loyalty and commitment
is essential, and one key challenge is to
help and encourage them to improve
their own social and environmental
performance.”
João Correia Sampaio, Director, Property Management, Portugal
Supplier loyalty
Sierra continues to try to pay suppliers within a 30 day period. Indeed,
in 2005, our average payment period (all countries), was 27.3 days.
The graph below (Figure 16) shows our average payment period by
country.
Figure 16 Average number of days within which supplier invoices are
paid (by country) [GRI Reference: EC4]
Spain 04
05
35
35
Portugal 04
05
31
31
Germany 04
05
26
26
Italy 04
05
26
26
Greece 04
05
25
26
Brazil 04
05
20
20
Global
Average
27.3
Number of days
2004
2005
Data qualifying note: This data averages the number of days within which
invoices were paid for all countries where Sonae Sierra operates.
Other stakeholder concerns
Media
Following the publication of Sonae Sierra’s first CR Report in 2005, we made a series of presentations on its content to the media in and
around shopping centres, and co-ordinated one principal media event. Given that many journalists writing about Sierra focus on the
Company’s financial performance, it has been an awareness-raising and educational exercise to better inform the media of our wider
CR performance. Figure 17 summarises our media profile in relation to different aspects of our sustainability performance.
Figure 17 Media coverage received by Sonae Sierra during 2005
according to areas of performance
Other
(non CR related press)
Economic
Environmental
Social
71%
9%
9%
11%
Data qualifying note: The data in this chart includes both positive and negative
press coverage for Sonae Sierra. It includes press coverage received by Sierra
Charagionis in Greece and Sierra Enplanta in Brazil.
19
Case studies: Projects under development
Planning & Design – Freccia Rossa
Italy
Sonae Sierra created its Environmental Standards for Retail Development (ESRD), a tool designed
to ensure that environmentally preferable technologies are included at the planning and design
stages of a development so that its operational impacts are minimised. The efforts employed
during the development of Freccia Rossa Shopping Centre in Brescia, Italy, positively demonstrate
the application of the ESRD. Due for completion in Spring 2007, the designers are set to
implement 100% of the mandatory requirements contained in the ESRD (where applicable) and a
significant number of the voluntary (non-critical) ones, including:
Construction waste
> Excavation soil to be reused on site and the remainder recycled off site.
>
Demolition materials to be crushed to be reused for foundations or recycled off site.
Construction materials
> Materials selected will have low toxic contents, low embodied energy, and be recyclable where possible.
Energy, heating and daylight
> Glass surfaces to encourage natural light.
>
An air curtain system and a floor radiation heating system to avoid thermal waste through the entrances automatic doors.
Water
> A rainwater reservoir will be integrated into the basement to supply water for the toilets.
Transport
> Cycling facilities will be provided on the public square.
>
Cycle lanes running alongside the centre will be linked into existing city centre cycle networks.
Fulfilment of the non-critical guidelines is set to add value to the project, and be of major benefit for the local community.
Construction – RioSul
Portugal
RioSul Shopping, in Seixal, Portugal, has attained the highest possible safety and health standards,
with the help of a dedicated Safety Coordinator and Safety Technician, and permanent on-site
safety and health contractors. Indeed, the standards set at RioSul Shopping have had a positive
knock-on effect for all other construction site managers in Portugal, and top level management
staff within Sierra, all of whom look to RioSul Shopping as a best practice example.
Site staff have been encouraged to change working practices and to apply the prevention principles on all technical processes and high risk
activities. A risk prevention system has been introduced, incorporating safe working procedures and risk assessments for construction
activities and equipment. Site managers have also been making direct interventions where high risks have been detected.
Other best practice observed at RioSul Shopping construction site includes:
>
Work platforms with anti-fall protection
>
A requirement to perform all ‘formwork’ with a safety line and harness
>
Guard rails surrounding all slab edges
>
Emergency evacuation plans placed across the site
Sonae Sierra's Safety & Health team has performed training sessions with contractors and subcontractors, informing them of major safety
risks, and preventive measures. Workers were also given special access to the safety team so that they could contact them in an emergency.
In addition, RioSul was an exemplary construction site in its implementation of environmental management procedures, and is the only
Sonae Sierra construction project to date that has achieved ISO 14001:2004 certification for the EMS with zero non-conformances.
20
Sonae Sierra
Completion – LoureShopping
Portugal
The concept of a “green” shopping centre was incorporated into LoureShopping right from its
design inception, and it became the first Sierra shopping centre in Portugal to receive ISO 14001:
2004 certification, in recognition of its strong environmental management practices during
construction works. The EMS also addressed economic and environmental objectives, and is set to
become a role model for future projects. Some of the most innovative features include:
Energy Efficiency
>
Distinct illumination circuits and networks allowing partial
lighting of areas according to the light requirements and the
existing day light.
>
Glassed roofing to guarantee acceptable levels of natural
lighting in the Mall areas without causing excessive heating and
lighting.
Water efficiency and Wastewater
> Taps triggered by infrared motion sensors, in order to increase
water consumption efficiency.
>
Separate wastewater network for the wastewater produced in
car parking areas, in order to retain oils spills that may occur
and for the food court areas.
Waste Management
> Infrastructures and necessary equipment for waste separation,
transportation and temporary storage were developed.
Noise and Vibration
> The development of a specific project to comply with acceptable
and legal levels of noise emission to surrounding areas and to
optimise noise levels inside the Shopping Centre.
Air Pollution
> Air Conditioning Equipment set up for use within the
development with an Ozone Depletion Potential (ODP) of zero
and low Global Warming Potential (GWP).
Materials
> Setting of strict rules in order to prevent the use of
environmentally hazardous materials, to reduce the
environmental impact and also to improve and guarantee the
indoor air quality.
Ecology
> The preservation, in the land modelling phase, of all the
existing trees within the construction site area and its
maintenance and preservation during the construction works.
>
The plantation, in the Green Park, of more than 800
autochthon specimens of trees and vegetation, which have very
low needs in terms of water.
Management
> Automated Building Management System set up to provide
real time data on various environmental indicators and help the
management team enhance the Mall’s daily operation.
Green Park
The Green Park area, perhaps the most visible aspect of
LoureShopping’s commitment to the Environment. Green Park is a
12.5 acre space opened up to the community and all visitors, which
included the planting of more than 800 new specimens of trees and
vegetation, a cycling lane and a twelve-pit maintenance circuit with
exercise equipment.
If all of the above was not enough, LoureShopping also
implemented the Global Accessibility norm, which included the
following:
>
Stairs with double handrail.
>
Lifts with voice system in order to help people with difficulties
of vision.
>
Detection systems to open doors.
>
Toilets designed with disabled users in mind.
LoureShopping is a landmark development for Sonae Sierra.
21
Environmental P
> At
Sonae Sierra, we believe that economic and environmental
success can co-exist. We strive to be a leader in environmental
management, integrating environmental design features into
our developments, which, we believe, ultimately leads to
greater economic profitability.
“Our approach to
environmental management
is inherently driven by a
long-term approach to risk
management. Our efforts to
conserve natural resources,
prevent pollution, and
reduce waste reflect our
determination to maintain
a leadership position in
business efficiency and
environmental management.
We also believe that strong
environmental performance
contributes to market
differentiation and
competitive advantage.”
Elsa Monteiro
Head of Institutional Relations,
Environment and Communication
➠
During 2005 Sonae Sierra achieved
certification of the Environmental
Management System (EMS)
according to the international
standard ISO 14001:2004.
Environmental Management
System
provides a breakdown of our achievement
levels against the environmental
management and performance targets set
for 2005. We are pleased to announce that
84 per cent of our environmental targets
were either fully achieved or substantially
progressed during the year, with only 5 per
cent (one target) remaining unachieved.
One of the biggest successes achieved by
Sonae Sierra during 2005 was the formal
certification of the corporate Environmental
Management System (EMS) according to
the international standard ISO 14001:2004.
We believe that we might be the first
property company in Europe to achieve this
across the entire business. Similarly, we
continue to achieve ISO14001:2004
certification for the on-site construction
works of several of our major new
developments, and for a growing number
of our owned shopping and leisure centres
under management.
An illustration of our commitment to the
environment is our endeavour to quantify
the investment made by the Company in
improving its environmental performance.
One aspect of this is the total capital
investments on environmental
improvements (development, owned
centres under management, and our own
office occupation), which has been 1,477
(€000s) in 2005.
At the heart of our EMS is the annual
target-setting programme, which has now
been incorporated within the wider CR
target-setting process. Table 5 below
Table 5 Summary of progress against environmental targets 2005
Environmental
impact areas
Development –
corporate wide
5
Operations – Portugal
3
Operations – Spain
3
Operations – Brazil
4
Management systems
– corporate wide
Total
% of Total
22
Sonae Sierra
Number of
targets
0%
25%
50%
100%
3
2
3
1
2
2
2
4
19
75%
2
2
1
0
2
5
11
5%
0%
11%
26%
58%
Performance
Table 6 Portfolio coverage of environmental performance data presented in the 2005 CR Report (% by GLA floor area)
Electricity consumption
Water consumption
Waste
Visitors Transport
1
2002
2003
2004
2005
62
50
92
100
0
78
82
80
51
50
90
94
100
100
100
100
1 From visitor surveys undertaken on a random sample at individual centres.
Monitoring and targeting programmes
During the year Sonae Sierra has been working to further improve the accuracy and timeliness of environmental data reporting. The new
improved online EMS data collection tool will make this easier, and will also give onsite staff a user-friendly means of checking their
performance against other centres in the portfolio. All property staff have been trained to use the online EMS data collection tool – which
was re-launched following major improvements in 2005.
Similarly, environmental performance reporting at all different levels of management has been comprehensively overhauled to ensure
consistency across centres, construction sites and countries. Corporate performance against both management and development KPIs has
been reported quarterly to the main Sierra Board throughout 2005.
Sonae Sierra continues to take part in industry initiatives such as the Environmental Benchmarking for Shopping Centres project
coordinated by Upstream, UK-based strategic sustainability advisors. We participate in this survey to benchmark our portfolio and properties
against European peers and promote the adoption and sharing of good practice (GRI Reference: EN17). Industry initiatives, as well as
internal ‘league tables’, play a key part in motivating employees and ensure that Sierra remains at the forefront of the industry.
The table below provides a snapshot of some of Sonae Sierra’s absolute environmental impacts (unadjusted and non-normalised) arising
from the owned centres under management. This gives a sense of the scale of the impacts and is in keeping with the requirements of GRI
core indicators.
Table 7 Absolute impacts against selected GRI core indicators for calendar year 2005
Performance indicator and unit
Sonae Sierra owned centres under
management (aggregated)
Total electricity consumption [GRI Reference: EN4 partial]
682,894 Gigajoules
Total water use, [GRI Reference: EN5]
1,133,708 cubic metres
30,910 tonnes
Total amount of waste (See Figures 22 and 23 on pages 26 and 27 for waste destinations), [GRI Reference: EN11]
Data Qualifying Notes
Operation and management
>
All data in this section relates to owned centres under management, that have been in full operation for all 12 months of a calendar year. For 2005, this
includes 14 centres in Portugal, 10 centres in Spain and 7 centres in Brazil.
>
Utility consumption that relates specifically and directly to individual tenants is not included here. For example, water data is principally for common service
provision. Inevitably, however, Sonae Sierra’s impacts are entwined with those of its stakeholders, e.g., the waste tonnage relates to waste also produced by
tenants but handled by Sonae Sierra as a service.
>
Data is now collected direct from properties as part of Sonae Sierra’s internet-based EMS, actual measurements are used wherever possible, with estimation
kept to a minimum.
>
Sonae Sierra is striving to improve and assure the quality of the data used in its monitoring systems. Obvious anomalies (e.g. due to broken water meters in
Spain) have been removed from the dataset presented here, and reflected in the reduced comprehensiveness of coverage. For electricity and transport,
however, the coverage of centres reported on here is now 100%.
>
In a small number of cases, it has become clear that the 2004 data was incorrect. Where this is the case, we have updated such data in this report.
>
It is estimated that aggregated data is accurate within a margin of ±5% for metered utilities and ±20% for waste and transport data.
Development
>
Sonae Sierra reports only on the environmental performance of completed and inaugurated centres that were under development. Of the 12 projects under
development during 2005, only 4 were completed and inaugurated during the year. These were Plaza Éboli (Spain), LoureShopping (Portugal), Serra Shopping
(Portugal) and Mediterranean Cosmos (Greece). The data in this section covers three of the four (Mediterranean Cosmos is excluded) – with another project
(Luz del Tajo – Spain) from the previous year by way of comparison.
23
Land use
Energy
Sonae Sierra continues to be conscious of the need to make
efficient use of available land, often siting new shopping centres
on previously developed land, and requiring remediation and cleanup techniques.
Owned and managed portfolio
[GRI Reference: EN6] Sonae Sierra owns zero hectares of land located in areas
defined as biodiversity rich habitats.
[GRI Reference: EN7] Construction projects have the potential to damage natural
habitats, threatening wildlife and plant species through disturbing activities.
Similarly, careless property management and landscaping practices can cause
damage to biodiversity. At Sonae Sierra, conservation and sensitive landscaping
continue to form part of our standard procedures and, wherever possible, we
seek to enhance the local wildlife quota.
The slight uplift in consumption in the most recent year, by just 1%
(see Figure 18), is largely explained by new properties – whose data
is included in the portfolio total for the first time this year – as
some of these are more energy-intense than other properties in the
portfolio. The change for just those centres under management
that were owned in both 2004 and 2005 is a 0.2% increase.
Figure 18 Electricity efficiency (excluding tenants) of the owned under
management portfolio
Emissions to air, land and water
02
Sonae Sierra continues to implement the detection, prevention
and monitoring procedures, for both development and operation,
for emissions to air, land and water.
03
[GRI Reference: EN16] No legitimate environmental fines were received by Sonae
Sierra during 2005.
[GRI Reference: EN13] In part due to active prevention procedures, there were zero
significant spills of chemicals, oils, and fuels in 2005.
Plaza Mayor: Nature
conservation
Plaza Mayor centre is located in Málaga, Southern Spain.
Before excavation works commenced in September 2005, a
protected species of turtle was identified so Sonae Sierra
contributed to their relocation before the breeding season
commenced.
The turtles were collected during 5 days of field work
undertaken by specialist scientists and transferred to the
recovery centre of threatened fauna of Andalusia (Centro de
Recuperación de Fauna Amenazadas de Andalucía, CREA).
Each turtle was individually tagged, and its weight, sex and
size recorded. Once released the turtles will be able to live in
freedom nearby to their original habitat.
Furthermore, during the work, one species of eel (Anguilla
anguilla), thought to be extinct in that region, was found in
the Guadalhorce area.
747
748
04
586
05
591
kWh/m2
(mall and toilet area)/year
Demand for electricity varies in different years depending on
weather conditions – in fact weather-driven variations can often
account for as much as 10% of the total consumption (see Figure
19 below). This may be part of the explanation for increases at
several centres – particularly in Spain and Portugal. In fact, in
Spain, one centre (Max Center) achieved energy reductions since
last year. The other Spanish centres increased consumption by 1 to
6%, except La Farga, where the refurbishment led to an increase in
electricity consumption by 21% (through the works themselves as
well as through the higher level of service provision installed at the
centre). In any case, Sonae Sierra uses environmental data and KPIs
to actively understand its performance on a regular basis – and
uses this to drive actions to rectify problems and seek continuous
improvement.
Figure 19 Electricity efficiency (excluding tenants) of the owned under
management portfolio, by country
Portugal
Spain
02
03
04
05
747
748
705
718
02 not known
03 not known
04
05
343
423
02 not known
03 not known
Brazil
04
05
kWh/m2 (mall and toilet area)/year
24
Sonae Sierra
600
572
Development portfolio
It should be noted that direct comparisons cannot be drawn between development projects – as their circumstances are so different. This is
true of all impact areas, not just energy. Nonetheless, through monitoring consumption during construction and upon completion, Sonae
Sierra seeks to ensure efficient use of these resources. With time, Sonae Sierra’s awareness of the energy requirements of different
construction techniques and practices will be factored into design considerations. The higher level of construction electricity consumption
at LoureShopping seen in Table 8 could, in principal, be explained by the testing of external feature lighting prior to opening (the tests
were done during a long period of time).
Table 8 Construction electricity indicator (completed projects)
Completed projects during 2005
Completed projects KPIs
Construction electricity indicator (kWh/€ 000 construction cost)
Project completed
in 2004
(as broad
comparator)
Serra Shopping
LoureShopping
Plaza Éboli
Luz del Tajo
4.84
20.05
9.66
5.97
Data qualifying note: This data only relates to electricity consumed during the construction process, and does not yet include other energy such as diesel.
Sonae Sierra and Climate Change –
Committed to Climate
Following a pilot project to calculate greenhouse gas emissions associated with three Sonae Sierra sites undertaken in 2004 (see CR Report
2004), Sierra sought in 2005 to use a similar methodology for emissions arising from all its shopping centres and offices in Europe and
Brazil. The preliminary results are presented below.
Scope
1–Direct Emissions from:
2–Indirect Emissions from:
Activity
CO2e Emissions(t)
Fuel combustion on Company vehicles
HFC leakage from cooling and refrigeration systems
Cogeneration systems
Heat production in boilers
613
1,084
37,579
749
Production of electricity used
74,279
114,304
Total
Emissions presented in the table above are Scope 1 and 2, as classified by the Greenhouse Gas Protocol guidelines. In due course, Sonae
Sierra intends to calculate and publish Scope 3 (indirect emissions – voluntary reporting) and to publish Scope 1 and 2 emissions at regular
three months intervals.
Sonae Sierra is currently analysing potential greenhouse gas emissions reduction measures to be applied in relation to the three sites
included in the pilot so as to further improve its performance in mitigating climate change. Some of the measures being considered
include:
>
Introducing carbon dioxide emissions as a selection criteria for Company fleet vehicles.
>
Training on eco-driving for Sonae Sierra staff.
➠
Sonae Sierra also achieved in 2005 the first place in the Index “Climate Change and Corporate Management – a Response
Index”, promoted by Euronatura, a Portuguese non-governmental organisation. The company has committed to continue
participating in the Index, aiming to rank high. For more on the Index, see www.responsabilidadeclimatica.org.
Sonae Sierra is a “Carbonfree – The Seal of Climate Responsibility“ company, which implies that it
has made a strong corporate commitment to reducing and addressing its climate change impacts.
For further details of the specific commitments required by this initiative see www.carbonfree.pt.
25
Water
There has been, overall, an increase in the amount of water
consumed per visitor, but there are significant variations between
properties in different countries. See Figure 20 below.
Figure 20 Water efficiency (excluding tenants) of the owned under
management portfolio
02 not known
03
Problems with consistent and reliable metering have been greatest
in Spain and Brazil. The 2005 figures for Spain and Brazil are higher
than 2004 because centres whose data is included in the
aggregated consumption for the first time are more water-intense
(per visitor) than other properties in the portfolio. Nevertheless,
2 out of 8 Spanish and Brazilian centres (with at least 2 years of
reliable data) managed to decrease water consumption per visitor.
For this reason, Sonae Sierra is considering extending water audits
this year to Spain and Brazil. These will aim to improve end-use
metering, and thereby leads to better understanding and control of
major water uses, such as cooling towers.
4.3
04
Figure 21 Water efficiency (excluding tenants) of the owned under
management portfolio, by country
3.8
05
4.4
02 not known
03
Portugal
04
05
litres/visitor/year
The trend for Portugal (see Figure 21) is encouraging, and shows
the benefits of the extensive programme of water audits and
metering of specific end-uses. Improved efficiency is particularly
marked at NorteShopping (Portugal), where water consumption
dropped by 20% since last year.
4.8
4.2
4.0
02 not known
03
Spain
04
05
Brazil
3.2
2.9
4.8
02 not known
03
04
05
3.0
2.6
5.0
litres/visitor/year
There is a greater degree of consistency in the amounts of water consumed in different development projects. The consumption of water at
the most recently completed projects is in line with expectations, and is slightly lower than previous projects. See Table 9 below.
Table 9 Construction water indicator (completed projects)
Construction Water indicator (m3/€ 000 construction cost)
Solid Waste
There are two positive trends for reduced environmental impact
demonstrated in Figure 22 below. Firstly, the amount of waste
being recycled at Sonae Sierra shopping centres is steadily
increasing. Secondly, the amount of waste per unit of sales is
decreasing. Whilst it is too early to be certain, it is possible that
retailers are beginning to require less packaging (by weight) per
unit of goods sold.
Figure 22 Total waste throughput and disposal method in the owned
under management portfolio
02
8.5
8.1
03
04
7.1
05
6.3
2.0 (19%)
1.9 (19%)
1.9 (21%)
2.1
(25%)
tonnes / € million sales (Purchasing Power Parity adjusted)
Reused/reclaimed/recycled
Landfilled/incinerated
26
Sonae Sierra
Project completed
in 2004
(as broad
comparator)
Serra Shopping
LoureShopping
Plaza Éboli
Luz del Tajo
0.20
0.18
0.20
0.26
Composting organic
waste
Following the huge success of NorteShopping’s (Portugal)
waste segregation of organic matter – and its ensuing sale
through composting - Sonae Sierra decided to extend this
project to other centres in Portugal, namely Arrábida Shopping,
MaiaShopping and CascaiShopping in the last quarter of
2005. The roll out continues at GaiaShopping, where facilities
have been installed in January 2006.
Each scheme starts with an analysis of the types of waste
being produced that lend themselves to composting. Then,
special containers are distributed to tenants who segregate
organic waste before delivering it to the composting station.
With this initiative, in Portugal, Sonae Sierra has managed to
recover about 620 tonnes of organic matter, representing 6%
of the total waste produced in 2005 at the four centres
where this separation process is already in place. For 2006 it
is expected that this proportion will increase further, as more
and more centres begin to separate their organic waste and
sell it for composting purposes.
The recycling rate has increased at 19 out of 23 shopping
centres with data for both 2004 and 2005. This is reflected
in the performance for each country in Figure 23. Nonetheless
Sonae Sierra is undertaking further waste audits to identify
opportunities to improve waste management as well as enhance
its data collection methodology – especially where waste cannot
be weighed.
Figure 23 Total waste throughput and disposal method in the
owned under management portfolio, by country
02
03
Portugal
04
05
8.5 2.0 (19%)
8.1 1.9 (19%)
2.3 (22%)
7.9
2.7 (26%)
7.5
02 not known
03 not known
Spain
04
05
Brazil
11.8
11.6
2.7 (19%)
3.1 (21%)
02 not known
03 not known
04
3.6 1.0 (22%)
05
2.7 1.0 (26%)
tonnes / € million sales (Purchasing Power Parity adjusted)
Reused/reclaimed/recycled
Landfilled/incinerated
The amounts of waste produced per unit of construction costs has been fairly similar across the projects completed in the recent past as
shown in Table 10 below. Encouragingly, the recycling rate is high. Whilst the rate for Serra Shopping is lower than hoped, this is in part
due to the fact that it is located in Covilhã (centre interior of Portugal) where there are fewer providers of waste recycling services.
Table 10 Construction waste and recycling indicator (completed projects)
Project completed
in 2004
(as broad
comparator)
Serra Shopping
LoureShopping
Plaza Éboli
Luz del Tajo
Construction Waste indicator (tonnes /€ 000 construction cost)
0.15
0.11
0.12
0.11
Construction Recycling indicator (% of total waste sent for recycling or recovery)
62%
86%
89%
45%
Data qualifying note: The data relating to Plaza Éboli is for a 6 month period only (representing only part of the total construction period).
Transport
Overall, the amount of visitors to our shopping centres has risen
(see Figure 24), as the number of owned centres under
management has increased. Further, the proportion of visitors
arriving by means other than the private car has risen slightly.
Figure 24 Number of visitors (millions) arriving by different modes of
transport in portfolio of owned centres under management
04
92 (34%)
175
198
05
109 (35%)
The transport survey data, in Figure 25 below, suggests that there
has been the most significant drop in the proportion of visitors
travelling by means other than the private car at Brazilian centres,
whilst it has increased at Spanish centres. Sonae Sierra will continue
to incorporate alternatives to the private car in its development
planning, as well as making alternatives to the car as attractive as
possible at its shopping centres. Travel trends will continue to be
monitored to assess the effectiveness of new initiatives on sites.
Figure 25 Number of visitors (millions) arriving by different modes of
transport in portfolio of owned centres under management, by country
Visitors (millions)
Arriving by all other forms (other than private car)
Arriving by private car
Portugal
04
05
Spain
04
05
Brazil
04
05
115
115
49 (30%)
46 (29%)
36 17 (32%)
41
28 (41%)
24
42
26 (52%)
34 (45%)
Visitors (millions)
Arriving by all other forms (other than private car)
Arriving by private car
27
Lessons to be learnt
At Sonae Sierra, we are very conscious of the need to be honest and transparent about all aspects of our performance. This means being
able to disclose the instances where things went wrong, as well as those where things went well. In this section, therefore, we have sought
to do just that – by picking out particular events and initiatives that took place during 2005 that we feel we should have done better. It is
intended to demonstrate that we take all failures in our performance seriously, and that corrective actions are instigated to ensure that we
learn from our mistakes.
Importance of
tenant relations
in Mediterranean
Cosmos, Greece
Unfortunately, due to unforeseen difficulties arising during
the construction of the Mediterranean Cosmos shopping
centre in Greece, it opened with some defects thereby
adversely affecting a number of the tenants. It has been very
difficult for Sonae Sierra to respond to tenant enquiries, due
to its inability to control the construction works necessary to
resolve the defects. This situation has meant that Sonae
Sierra’s ambition to be an open and responsive landlord has
been compromised.
However, the situation is now improving, as good
relationships with tenants have become of paramount
importance in solving the problems experienced. The centre
management team has established an elected tenant
association and is liaising directly with this body to ensure
that all tenants are informed of continued works and
completion timetables.
This experience has reinforced a lesson that Sonae Sierra
has always known, which is that good relationships
with tenants are critical to business success. It has also
highlighted the importance of setting exacting standards
for construction quality to avoid any problems arising
after inauguration.
Communication
with local
community during
development of
Alexa, Germany
During the construction of our new shopping centre in Berlin,
Alexa, a number of complaints were made about noise by local
neighbours and other representatives in the local community. As
a result of a misunderstanding with our principal construction
contractor concerning who would be responding to these
complaints, Sonae Sierra’s response was not as rapid as it should
have been and the situation received negative press coverage.
Once aware of the gravity of the community’s concerns,
Sonae Sierra rapidly took steps to engage with those persons
and organisations concerned, and put in place an extensive
community liaison programme to satisfy their enquiries.
We set up a direct line for all questions related with the
development, and clarified communication channels between
Sonae Sierra, the contractor, and local stakeholders.
The main lesson learnt is that noise problems should be
eliminated through proper implementation of the EMS for
construction works. If the EMS procedures are followed,
noise levels should never reach levels where they give rise
to complaints from neighbours, thereby contributing to
the management of community relations. Of course, the
second lesson learnt from this project is that local community
representatives need open and regular communications
about plans and progress of construction projects.
Safety and health, LoureShopping,
Portugal
On 15 January 2005, a fatal accident occurred during the construction of LoureShopping. Tragically, this
led to a sub-contractor losing his life. The immediate cause of the accident was a heavy container which
fell from an elevated area 8m above ground. The worker, who had only been on site for 2 days, had not
been provided with adequate training from the principal contractor regarding working practices in elevated
areas. The lifting equipment used had been subject to a modification, without a proper risk analysis.
Of course, Sonae Sierra was deeply saddened by this accident and distressed that it should have
happened on one of its own construction sites. It is of course difficult to eliminate risks on a construction
site, and it is not easy for Sonae Sierra to control all sub-contractors and their own sub-sub-contractors in
a robust way. Nonetheless, Sierra is keen to ensure that such an accident should never happen again.
In terms of learning from the experience, we have re-enforced the following key messages:
28
>
Reinforce the practice of isolating areas under works being done at heights.
>
Analyse the risk of changes in equipments.
>
Conduct audits to see if people are following the safety rules, and to ensure that all of them received proper
training about their jobs’ risks.
Sonae Sierra
Statement from CR advisors
At Upstream, we continue to be impressed with the level of commitment that Sonae Sierra
demonstrates towards environmental excellence and, in particular, its efforts to further formalise
the Company approach to wider socio-economic areas of performance.
2005 was the first year in which Sonae Sierra set itself Corporate Responsibility (CR) targets covering social impacts rather than just
environmental ones. Upstream has undertaken an audit to review the Company’s progress in achieving these targets, on the basis
of the following:
>
Meetings and face to face interviews with members of the Sonae Sierra CR Working Group to establish progress made and to identify
future challenges.
>
A review of internal reports of progress against targets prepared for the Board of Directors by the Environment Department.
>
A review of other documents and records demonstrating actions completed in support of management related targets.
>
A detailed review of environmental performance data collected across the Company’s portfolio of owned centres under management.
This involved a certain degree of error checking, validation and verification, but does not amount to a comprehensive audit covering
the data source.
On this basis, Upstream’s audit concludes that a total of 45% of the targets have been fully achieved, three quarters of which are
environmental. A further 39% of the CR targets have been substantially progressed, and many of these are likely to have been completed
by the time this report goes to print. This is a good performance, and reflective of a company that is taking its publicly stated commitments
seriously. There are, however, 15% (a total of five) of the targets against which little or no progress has been made during the year. Most
of these relate to social rather than environmental impact areas, which is perhaps unsurprising given the relatively recent introduction of a
formal CR programme.
It is Upstream’s professional opinion that Sonae Sierra is now demonstrating a well developed awareness of its environmental and safety
and health risks, and that the management systems for such risks are increasingly embedded into its mainstream business conduct. There
are nonetheless a series of challenges facing a company as complex as Sierra, many of which relate to management processes and control.
These include the rate of growth of the Company – in terms of the number of employees and the scale of its activities, the geographical
spread of its activities, and associated cultural and language differences; and, linked to both of these, the data collection and information
management tasks that underpin good management systems and controls.
In addition, in the 2004 CR Report, Upstream suggested a number of future priorities for Sonae Sierra in terms of CR. Whilst we recognise
that the Company has begun to address these under the auspices of the CR programme of work, we would suggest that they continue to
be appropriate focus areas for future years. Of most relevance is the importance of stakeholder dialogue and ensuring that the Company is
both aware of, and responsive to, the changing needs and concerns of its various stakeholder groups.
At Upstream, we very much look forward to our work with Sonae Sierra in 2006 and beyond, helping the Company to continue to
improve its performance, and to uncover the value associated with good economic, social and environmental performance.
Julie Hirigoyen, Director, Upstream, UK-based strategic sustainability advisors
29
GRI Content index
Sonae Sierra continues to use the internationally recognised Global Reporting Initiative (GRI) 2002 Sustainability Reporting Guidelines as
a framework to inform the structure and content of its annual CR Reports. Having published a full CR Report in 2004, containing detailed
descriptions of Sonae Sierra’s CR vision and strategy, governance structure and management systems, we have decided this year to publish
a shorter report focusing on progress and performance during 2005. This is supplemented by a more comprehensive section on CR on the
Company website.
The list below should enable users of Sonae Sierra’s 2005 CR Report to gauge the extent to which we have included content prescribed by
the GRI Guidelines (2002) and to access relevant information contained elsewhere.
Vision and strategy
Statement of organisation’s vision and strategy regarding its contribution to sustainable development
Statement from the CEO describing key elements of the report
See website: www.sonaesierra.com
CR Report 2005 page 1
Profile
Organisational profile
Brief summary in CR Report 2005
Inside Front Cover
Report scope
CR Report 2005 – Inside Front Cover
Report profile
CR Reports, Annual Reports, website
Governance structures and management systems
Structure and Governance
Stakeholder engagement
Overarching policies and management systems
CR Report 2005 pages 4-5
Performance indicators
Economic Performance Indicators
30
Social Performance Indicators
Environmental Performance Indicators
Sonae Sierra
we care what you think
Feedback Form
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Media
2. How strongly do you agree that the 2005 CR Report content and key performance indicators
(KPIs) cover the issues you consider to be of most relevance to Sonae Sierra’s business?
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(please state which issues or KPIs you would like to see covered
in future CR Reports in the Comments space below)
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.........................................................................................................................................
.........................................................................................................................................
3. Please rate the different aspects of the 2005 CR Report using the numbers below:
[Scale: 1 = Excellent; 2 = Good; 3 = Average and 4 = Poor]
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Length:
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4
Layout and design:
1
2
3
4
4. How effective do you believe the 2006 targets will be in enabling Sonae Sierra to further
improve its economic, social and environmental performance?
Very effective
Effective
Not very effective
Not at all effective
.........................................................................................................................................
.........................................................................................................................................
5. To what extent does the quantitative data presented in this report provide meaningful
measures of our performance in practice?
The way we do business
Completely
To some extent
Not at all
To some extent
Not at all
To some extent
Not at all
To some extent
Not at all
To some extent
Not at all
To some extent
Not at all
To some extent
Not at all
To some extent
Not at all
To some extent
Not at all
Our investors and financiers
Completely
Our tenants
Completely
Our visitors
Completely
Our employees
fold here
Completely
Our suppliers
Completely
Local communities
Completely
Government authorities
Completely
The Media
Completely
6. To what extent does reading this CR Report demonstrate that Sonae Sierra
is a responsible corporate citizen?
Completely
To some extent
Not at all
7. What do you see as the key challenges for Sonae Sierra, over the next few years?
Please describe..................................................................................................................
Please provide any additional comments or suggestions in the space below
.........................................................................................................................................
fold here
.........................................................................................................................................
Thank you!
If you would like to receive a personal response to this feedback, please tick here
(and provide your email address)
................................................................................................................................
Please send the feedback form to:
Sonae Sierra Environment Department
by FAX
+351217582688
or
EMAIL
[email protected]
MAIL
Rua Amílcar Cabral, nº 23,
Quinta do Lambert
1750-018 Lisboa
Portugal
Designed and produced by MAGEE
Printed by CTD
Printed on Accent White
Accent White is manufactured with 75% recycled fibre, comprising of 25% post consumer waste,
50% mill broke and 25% chlorine free fibre.
This grade is fully recyclable and the mill has been accredited with ISO 14001 certificate,
and complies with Pan European Forestry Guidelines.
PORTUGAL
ITALY
NETHERLANDS
PORTO
CORSO MAGENTA 85
POLARISAVENUE, 61
LUGAR DO ESPIDO, VIA NORTE
20123 MILANO
2132 JH HOOFDDORP
4470 MAIA
TELEPHONE: +39 02 4654 621
TELEPHONE: +31 23568 50 80
TELEPHONE: +351 22 948 7522
FAX: +39 02 4391 2531
FAX: +31 23568 50 88
GERMANY
BRAZIL
LISBOA
KENNEDYDAMM 55
RUA GOMES DE CARVALHO, 1327, 2º
RUA AMÍLCAR CABRAL, 23
40476 DÜSSELDORF
VILA OLÍMPIA, SÃO PAULO – SP
1750-018 LISBOA
TELEPHONE: +49 211 4361 6201
04547 – 005
TELEPHONE: +351 21 751 5000
FAX: +49 211 4361 6202
TELEPHONE: +55 11 3371 4133
FAX: +351 22 010 4698
FAX: +351 21 758 2813
FAX: +55 11 3845 4522
GREECE
SPAIN
CHATZIYIANNI MEXI, 5, 1º
C/ CONDE DE ARANDA, 24, 5º
11528 ATHENS
28001 MADRID
TELEPHONE: +30 210 725 6340
TELEPHONE: +34 91 575 8986
FAX: +30 210 729 0988
FAX: +34 91 781 1960
www.sonaesierra.com

PDF 1.453 KB - Sonae Sierra

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