The primary objective of our Group business strategy is to deliver earnings per security growth and total risk-adjusted securityholder returns above the Australian Real Estate Investment Trust index average, by creating quality communities and property assets and delivering great customer experiences.
Our Group business strategy has three strategic priorities:
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:
We pursue each sustainability priority through action in several focus areas. We explore our sustainability priorities and focus areas throughout this review.
Stockland adopts a rigorous approach to understanding and proactively managing the risks faced in its 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. Various risks could impact our business, and the nature and potential impact of these risks change over time. For example, climate change risks and opportunities are reflected in several risks listed below: extreme weather events, changing regulation, and the ability to develop products that meet anticipated future demand.
Our risks include, but are not limited to, the list below.
As part of our continued investment in the efficiency of our operations, we have made significant progress on improving the Group’s systems capabilities including the successful implementation of Salesforce and SAP Success Factors. Deployment of further SAP and Salesforce capabilities will continue during next year. We continue to maintain two-way engagement with employees across the business to enable a smooth transition.
Our Residential business is influenced by the dynamics of the Australian housing market. Housing affordability remains of key concern for Australians as the price of housing and rental properties continues to increase. We believe a suite of measures is required to unlock housing supply and address affordability. Our affordability initiatives in Queensland, New South Wales and Victoria have given first home buyers priority to purchase land and get a foothold in the market.
We will also continue to:
The retail landscape is constantly evolving. Within the last 10 years the sector has sen a convergence of technical advances, in particular e-commerce, changes in underlying consumer behaviour, and the entry of new, international retailers. These changes have challenges some of our retailers.
We have been proactive and have pre-empted many of the changes. We continue to:
Our long-term growth is dependent on our ability to access capital at the appropriate time and cost even 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.
So that we are able to continue to raise sufficient capital to fund growth, we will continue to:
Physical and organisational boundaries are becoming increasingly blurred as new technology enables greater workplace flexibility, including when and where employees work, and encouraging creative and adaptive teamwork. This year we successfully deployed Office365, Salesforce, and SAP SuccessFactors to improve collaboration and flexible working. 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. We are well placed to meet these expectations and have a strong reputation for sustainability leadership and community development.