|Drive operational efficiency|
|Continue to improve technology use and systems|
|Strong commitment to safety|
|Maintain high employee engagement|
|Achieve leading sustainability credentials|
||Return on equity: Improved return on equity (excluding workout assets) from 11.0% to 11.4%
|Core systems: Successful implementation of Salesforce and SAP SuccessFactors modules with further deployment of SAP systems over the next year|
|Safety: Reduced LTIFR to lowest rate in six years to 1.8|
||Employee engagement: Maintained high employee engagement of 82% – seven points above the Australian Norm|
|Recognised as Global Real Estate Sector Leader on the Dow Jones Sustainability Index (DJSI) for 2016-17, the second consecutive year|
|Global Sector Leader 2016 on Global Real Estate Sustainability Benchmark (GRESB) for Diversified – Office/Retail sector|
|Recognised by CDP with a position on the Climate A list for leading global climate performance
|Received Employer of Choice for Gender Equality citation from WGEA three years in a row
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.
During the year we made significant progress on improving the Group’s IT systems’ capabilities, in particular the roll out of our Core Systems Program. The Program represents the largest investment in our systems in Stockland’s history and supports our business strategy by delivering business tools that empower employees to work more efficiently. This involves reducing 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.
In FY17, we rolled out our new SuccessFactors Performance Module across the business, and Salesforce customer relationship management tool in our Residential and Retirement Living businesses. The remainder of the Human Resources and Finance modules are scheduled for FY18.
Our Collaboration project is also underway with the rollout of Office 365. This will enable the business and our partners to create, store and share content securely, anywhere, anytime, using Office 365 technology. The project is already delivering improved document management protocols, accessibility and supporting flexible work practices. The improvements that have been delivered through the Collaboration project will be further enhanced as we transition to mobile laptop technology and activity based working as part of our Digital Workplace Strategy.
Part of creating a better way to work is our focus on flexible work. We continued to promote flexibility with employees through our ‘Flex in Feb’ campaign which aimed to increase participation in ‘One Simple Thing’, an initiative encouraging employees to identify an activity that enhances their work life quality. The campaign attracted positive participation, with 70 per cent of employees recording their ‘One Simple Thing’ or with a formal flexible work arrangement in place.
In a constantly evolving modern workplace it is also important that we enhance the capabilities of our senior leaders. In October 2016 we completed the development of the Stockland Leadership Experience for senior leaders and delivered the program to our first cohort of leaders. The Program is designed with our purpose at its core and focuses on improving customer-led innovation, inclusive leadership and collaboration to enhance people and enterprise leadership capability.
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.
Recognising these efforts, we were proud to be named the 2016–17 Global Real Estate Industry Leader in the Dow Jones Sustainability Index. This is the fourth time we have received this outstanding acknowledgement and the tenth consecutive year that we have been listed in the World DJSI. In addition, we were awarded 2016 Global Sector Leader for Diversified Listed REITs on the Global Real Estate Sustainability Benchmark (GRESB) and were one of two Australian companies listed on the CDP Climate A List for climate change action. For the third consecutive year we received an 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 core values and to continually improve our safety performance as part of our normal business practice.
In FY17, we reported a total of five lost time injuries (LTIs) with an associated Lost Time Injury Frequency Rate (LTIFR) of 1.8. This represents the lowest figure we have achieved in the last six years. The result can be attributed to various remedial activities implemented progressively throughout the year, including refresher training in workers’ compensation, injury management, increased focus on reducing incident reporting times and the engagement of injury management specialists to assist in the management of work-related injuries (including stress).
Our employee wellbeing score (as measured in our annual employee engagement survey, Our Voice survey) was 75 per cent. Whilst this represents a one point decline on FY16, our score remains six points above Willis Towers Watson’s Australian National Norm (ANN). We also scored 12 points above the ANN for the question “I often feel anxious at work”. These results parallel those for the Work Life Quality category, which also declined one point in FY17 to 75 per cent, but remains five points above the ANN. 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.
We engage our supply chain on health and safety matters in key areas including: the direct and indirect procurement process, development and implementation of project level safety management systems, project inductions, risk reviews and health and safety performance monitoring of project delivery.
In addition to these processes, in December 2016 we commenced a series of joint discussions with our development contractors in each state to drive safety behaviours and advance best practice in the construction industry, with a particular focus on plant rollovers and services strikes. Named ‘Sights on Safety’, the initiative focuses on collaboration with our construction project delivery partners to identify and implement measures to help reduce the number of serious incidents occurring at our development sites.
The focus on plant rollovers and service strikes followed a review of serious incidents across our development projects from FY15 to date, which identified these types of incidents as priority areas. The review found over 80 per cent of these incidents were primarily caused by operator error and required safety performance improvement by our delivery partners. Since starting the Sights on Safety initiative, we note a reduction of rollover incidents towards the second half of FY17. We are working with our delivery partners through FY18 to communicate and implement agreed standards for mitigating the risk of these incidents.
|Key Health and Safety Metrics||FY17||FY16||FY15||FY14||FY13||FY12|
|Total average workforce1||1,578||1,507||1,4382||1,695||1,7363||1,384|
|Total hours worked (million)||2.83||2.75||2.53||2.97||3.03||2.42|
|Number of lost time injuries (LTI)4,5||5||11||12||18||17||18|
|Lost time injury frequency rate (LTIFR)6||1.8||4.0||4.7||6.1||5.6
1 Total average workforce uses monthly employee totals rather than the end of financial year figure used in Our People metrics.
2 Total average workforce in FY15 reduced as a result of the sale of the Aged Care business in FY14.
3 Total average workforce was updated in FY13 to include Aevum payroll employees.
4 Includes injuries incurred as a result of a work related incident. Does not include commuting/recess injuries.
6 Number of LTIs/total hours worked from July 2016 to June 2017 x 1,000,000 hours.