Stockland is one of the largest diversified real estate groups in Australia with $18.2 billion of real estate assets. We are Australia's largest community creator covering whole of life housing solutions. We own, manage and develop retail town centres, workplace and logistics assets, residential and retirement living communities.
Our vision is to be a great Australian real estate company that makes a valuable contribution to our communities and our country. Founded in 1952, today we leverage our diversified model to help create thriving communities with dynamic town centres where people live, shop and work.
We have three strategic focus areas:
Our sustainability strategy integrates with our business strategy and priorities, providing a better way to deliver shared value for all stakeholders. We have three core sustainability priorities:
Each sustainability priority is pursued through action in several focus areas. We explore our sustainability priorities and focus areas throughout our Annual Review.
Stockland adopts a rigorous approach to understanding and proactively managing the risks faced in the business.
We recognise that making business decisions that involve calculated risks, and managing these risks within sensible tolerances, is fundamental to creating long-term value for securityholders and meeting commitments to our employees, tenants, customers, business partners, consultants and the communities in which we do business.
There are various risks that could impact our business. The nature and potential impact of these risks change over time. Our risks include, but are not limited to, the list below.
The retail landscape is constantly evolving. Within the last 10 years the sector has seen a convergence of technological advances, in particular e-commerce, the entry of new, international retailers and changes in underlying consumer behaviour. These changes have challenged some of our retailers. We have been proactive and have pre-empted many of the changes and will continue to:
Our Residential business is influenced by the dynamics of the Australian housing market. Housing affordability remains of key concern for Australians. We consider a suite of measures is required to unlock housing supply and address affordability, including early planning and delivery of infrastructure, and simplified development controls to enable housing diversity. To address affordability, we will continue to:
Substantial policy reform presents both opportunities and potential impacts for our business and customers. Planning, infrastructure and tax reform remain key policy areas where we will continue to engage with industry and government. We will also continue to:
To remain competitive, we must continually assess and leverage digital innovation. This includes facilitating a connected and agile workforce, more efficient business and supply chain processes, and digital lead nurturing and customer-centric innovation.
In March, the executive level position, Chief Technology and Innovation Officer, was created to enhance our ability to progress commercial outcomes from innovation projects.
To remain competitive, we will also continue to execute our Information Technology strategy with a focus on long-term strategic investment, and the identification and integration of technical enhancements across the business. This includes developing online residential and retirement living engagement opportunities, improved development and management processes and e-enabled retail town centres.
The safety of our customers and employees is a key priority. Managing their safety and the resilience of the communities in which we operate is becoming increasingly complex. This includes safety and security risks associated with terrorism, cyber threats and extreme weather events.
To make our business more resilient we will continue to:
We also have strategies in place for unexpected market events that may impact business continuity such as potential volatility within our supply chain and energy price shocks.
Extreme weather and other climate change related events have the potential to damage our assets, disrupt operations and impact the health and wellbeing of our customers and communities.
We are committed to creating climate resilient assets that operate with minimal disruption in the event of increased climate events, as well as building strong communities that are equipped to adapt to climate change risks and opportunities.
To do this, we will continue to:
To further demonstrate our commitment to climate action and best practice disclosure we were an early adopter of the Financial Stability Board Task Force on Climate-related Financial Disclosures (TCFD) recommendations. Our response is detailed on page 19 of the Annual Report.
Our ability to develop products that meet anticipated future customer and societal demands is crucial to the sustainability of our business, particularly considering Australia’s changing demographics, including an aging population and more socially conscious millennials.
We will remain focused on:
Our long-term growth is dependent on our ability to access capital at the appropriate time and cost as capital markets fluctuate in response to domestic and global economic shifts. Variable economic activity and changing capitalisation rates may impact the valuation of our assets and our ability to access capital.
So that we can continue to raise sufficient capital to fund growth, we will continue to:
Community expectations on the social and behavioural operations of a “good corporate” are changing. Corporates are increasingly expected to work in partnership with the community and government on societal issues.
Corporate leaders are also expected to create a positive corporate culture by shaping business outcomes through a system of beliefs, values and behaviours and a focus on customers.
We are well placed to meet these expectations and have a strong reputation for sustainability leadership and community development. We use a variety of tools to assess the health of our culture including our annual employee engagement survey to capture employee feedback and our Stockland Leadership Experience to build leaders that align with our values.
The ability to attract, engage and retain our employees is critical to our overall business performance. Similar to customer experience, employee experience is becoming increasingly important. Employees expect a work environment that enables greater flexibility in both where and how they work.
We are focused on how we actively set employees up for success and will continue to:
We have a commitment to developing and maintaining strong relationships with a broad range of stakeholders across our diverse business, and understanding and responding to their unique perceptions, needs and concerns. We practice open, honest, two-way communication and recognise the mutual benefits that result from genuine engagement for both our business and our stakeholders.
At Stockland, we recognise the importance of engaging regularly and directly with all our stakeholder groups so that we understand their expectations, issues and concerns.
We have 1,690 employees in Australia.
Our annual Our Voice employee survey measures employee engagement across the organisation. Employees are also provided with opportunities to provide feedback on specific issues throughout the year. Our intranet, stockXchange, is a key source of business news, activities and policies, and is updated each business day.
Our annual roadshows provide an opportunity for our Executive Committee to interact with employees in each capital city where we operate and provide an update on our strategy and performance.
For more information on our engagement with employees refer to our Employee Engagement and Development Deep Dive.
Government and regulators
Federal, state and local governments set the regulatory environment in which we operate.
We engage regularly with all levels of government in New South Wales, Victoria, Queensland, Western Australia, South Australia and the Australian Capital Territory, both directly and through industry associations. We also engage with the federal government.
For more information on our engagement with government and regulators refer to our Stakeholder Engagement Deep Dive.
Securityholders and the investment community
We have over 52,000 securityholders in Australia and overseas.
We provide investor briefings on our strategy and financial results. At our Annual General Meeting (AGM), retail securityholders can engage with our Board of Directors and are updated on our strategy and performance. Our management also meets regularly with institutional investors.
For more information on our engagement with securityholders and investors refer to our Stakeholder Engagement Deep Dive.
We have daily contact with a diverse range of customers, including commercial, retail and logistics tenants, shoppers in our retail town centres, our residential community customers, and residents in our retirement villages.
We regularly seek feedback from customers through surveys and research, and we incorporate feedback into our product design and service offerings.
Customer Relations Management Systems are in place across all of our businesses to support regular, effective and responsive engagement with our customers.
For more information on our engagement with our customers refer to our Customer Engagement and Experience Deep Dive.
We procure services and products from over 3,600 active suppliers with the top 100 suppliers representing approximately 75 per cent of our spend.
Spend associated with the development of our assets accounts for approximately 80% of our annual direct procurement spend, with operational and corporate procurement each representing approximately 10% of annual procured spend.
We actively monitor and engage with our suppliers. Our strategic suppliers (predominantly involved in the development and construction of our assets) are prequalified to ensure they have the ability to meet general and project-specific sustainability and quality requirements. This involves an assessment of the occupational health and safety systems, financial viability, environmental, social and sustainability capabilities of suppliers.
For more information on our engagement with suppliers refer to our Supply Chain Deep Dive.
The people that reside, work or engage in the areas where we operate.
Our engagement with communities includes community and consultation forums, one-on-one meetings with community groups and local leaders, as well as surveys and research.
We interact with journalists across a wide spectrum of local, regional, metropolitan and national print and electronic media outlets.
We regularly engage with the media to provide information about our business that supports clearer and more accurate reporting.
We aim to respond promptly to requests for information about our business activities.
For more information on our engagement with media refer to our Stakeholder Engagement Deep Dive.