Improving the way we operate across the business to drive efficiency and effectiveness.
|Recognised as Global Real Estate Industry Leader in the Dow Jones Sustainability Index for 2015–16|
|Retained our Employer of Choice for Gender Equality WGEA citation|
|Improved ROE from 9.9% to 11.0%|
|Established Stockland Support Centre offshore team, adding capacity and capability across a range of finance and IT activities|
|Significant progress improving Group system capabilities including commitment to implement SAP and Salesforce as core systems
Our proactive focus on operational excellence means we are always looking for better ways to work and deliver improved outcomes for our customers and ultimately our securityholders. After centralising and standardising our support activities in recent years, we are now focused on embedding operational improvements and empowering our employees to both work more efficiently and innovate.
During the year we made significant progress on improving the Group’s IT systems capabilities, as we began the largest investment in our systems in Stockland’s history through the Core Systems Program. This program aims to reduce the number of legacy systems we use around our business to simplify and streamline our activities, reduce costs, and take advantage of rapid developments in technology to improve customer outcomes.
As part of the feasibility phase of the program this year, we have committed to implement SAP as our core enterprise resource planning system and Salesforce as our customer relationship management system. Deployment will take place during the next two years. Acknowledging the Our Voice feedback that our work process and systems are an area for improvement, we will continue to maintain two-way engagement with employees across the business about the program and system implementations to enable a smooth transition.
This year we also embedded the Stockland Support Centre (SSC) within our business. The SSC is an outsourced offshore team that provides support to Stockland employees across a range of business activities. We decided to establish the SSC permanently in June 2015, after an initial six month pilot proved successful in providing more flexible and scalable support for our in-house teams and achieving the estimated benefits in the business case. Since then, we have transitioned a number of finance and IT activities to the team.
As this change led to a number of redundancies, a key priority was to support our people through this transition. We mitigated the number of redundancies through the use of fixed term contracts and by redeploying impacted employees. We were committed to open and honest communication throughout the process and provided employees with access to emotional and professional support options, including the Employee Assistance Program and career transition support.
Our people remain highly engaged, delivering exceptional outcomes and contributing to a range of initiatives that improve the way we work. Stockland launched a company-wide innovation program called Ideas@Stockland in August 2015 to encourage and foster the commercialisation of innovation. Rapid technology advancements and other converging mega trends are changing consumer behaviour. We are focused on creating opportunities from these changes. To that end, we are introducing support and tools for our employees to foster innovation and make it easy to implement ideas quickly.
In the first 12 months of Ideas@stockland, more than 100 new ideas were submitted and over 800 people across the organisation participated in some way in an innovation challenge. Of those 100 ideas, nine have been chosen to be developed and resourced, and six ideas are progressing towards working pilots. In addition, 20 employees were selected to receive training on leading innovation methodologies and tools. These ‘Innovation Champions’ are now assisting business units or functional teams with their own ideation or innovation initiatives.
Sustainability remains a key focus for Stockland. We have continued our commitment to engage effectively and improve the liveability, convenience and efficiency of our communities and commercial operations, and to continue to reduce our impact on the environment, particularly by improving energy and water efficiency.
Recognising these efforts, we were proud to be named the 2015–16 Global Real Estate Industry Leader in the Dow Jones Sustainability Index, the third time we have received this outstanding acknowledgement. It is also the ninth consecutive year that we have been listed in the Index. In addition, we were awarded 2015 Australian Diversified Property Sector Leader on the Global Real Estate Sustainability Benchmark (GRESB). We also maintained our listing on the FTSE4GoodIndex and retained our Employer of Choice for Gender Equality citation with Australia’s Workplace Gender Equality Agency.
Our vision is to foster a culture where health, safety and wellbeing are considered core values and continuous improvement of our safety performance is part of our normal business practice.
In FY16, we continued to improve health and safety compliance across all business units through our operational risk assurance program. Compliance scores have progressively improved since the inception of this assurance program in FY14, achieving a combined average score of 94% in the FY16 health and safety audits, which is up from 78% in FY14 and translates to a reduction in required audit actions from 2,869 in FY14 to 563 in FY16.
Our employee wellbeing score, as measured in our annual Our Voice survey, was 75% in FY16. While this represents a two point decline on FY15, our score remains eight points above the Australian National Norm (ANN). Find out more in A better way to enrich our value chain. We also scored 13 points above the ANN for the question “I often feel anxious at work”. These results parallel those for the Work Life Quality category of Our Voice, which also declined two points in FY16 to 67%, but remains above the ANN by two points. A key driver of these results has been identified as frustration with work systems and processes. We are addressing this through the Core Systems Program, which will be key to improving our systems (see above).
This year we achieved the lowest Lost Time Injury (LTI) metrics in the last five years, including 11 LTIs and the associated Lost Time Injury Frequency Rate (LTIFR) of four. Various remedial activities implemented progressively throughout the year have contributed to this reduction, including refresher training in workers’ compensation and injury management, manual handling training, an increased focus on incident reporting and the engagement of injury management specialists to assist in the management of work related injuries (including stress).
Stockland has experienced an increase in the amount of built-form development works over the last 12 months, which may have attributed to the increase in contractor LTIs reported over the same period. As our construction activities are conducted by our contractors, we require principal contractors on all of our major projects to have comprehensive Workplace Health and Safety (WHS) management systems. This is verified in the tender review process and we continue to communicate our expectations and manage health and safety risks through our ongoing project-level safety management systems, project inductions, risk reviews and WHS performance monitoring of project delivery.
|Health and Safety Performance1||FY16||FY15||FY14||FY13||FY12|
|Total average workforce2||1,507||1,4383||1,695||1,7364||1,384|
|Total hours worked (million)||2.75||2.53||2.97||3.03||2.42|
|Contractor lost time injuries5||126||5||10||14||11|
|Number of lost time injuries (LTI)7||11||12||18||17||18|
|Lost time injury frequency rate (LTIFR)8||4.0||4.7||6.1||5.6
|Number of injuries requiring medical treatment (MTI)9||12||14||14||11||13|
|Medical treatment injury frequency rate (MTIFR)10||4.4||5.5||4.7||3.6||5.4|
|Frequency rate (LTI and MTIFR)11||8.4||10.2||10.7||9.2||12.8|
|Occupational diseases instances||0||0||0||0||0|
|Lost days (total for the recorded lost time injuries)||59912||267||817||417||257|
|Average lost day rate13||27.114||22.2||45.3||24.5||14.3|