CSR REPOR T 2010
CSR REPORT 2010
CREATING
VALUE
TOGETHER
CONTENTS
HIGHLIGHTS 2010
4
WHO WE ARE
6
KEY ELEMENTS OF OUR STRATEGY
8
PERFORMANCE HIGHLIGHTS
10
STATEMENTS OF THE MANAGEMENT BOARD
11
ABOUT THIS REPORT
14
CSR STRATEGY, GOVERNANCE AND ENGAGEMENT
16
SHIFTING INTO A HIGHER GEAR
20
HOW WE ENGAGE AND INFORM OUR STAKEHOLDERS
22
PUTTING CONSUMERS FIRST
24
ROOTED IN SOCIETY
28
LEADERSHIP IN OUR CULTURE
32
SUSTAINABILITY IN OUR OPERATIONS
36
CREATING SUSTAINABLE CENTRES
40
WE ARE AT THE DAWN OF A NEW ERA
44
TARGETS 2010
50
DEFINITIONS 51
ADDRESSES AND OTHER INFO
52
HIGHLIGHTS 2010
MARCH
Corio acquires an operational and development portfolio in Germany. The portfolio includes Forum Duisburg, with a BREEAM ‘Very Good’ rating and winner of the ICSC Resource Award in 2010. Centrum Galerie Dresden (pictured), the first European shopping centre with a BREEAM ‘Excellent’ rating, is also part of this portfolio.
APRIL
The inaugural meeting for founding members of ISA (the International Sustainability Alliance), a global network of leading real estate organisations dedicated to achieving a more sustainable built environment takes place. Together with the ISA, Corio developed KPIs which will provide the basis for benchmarking our environmental performance. Corio is one of the founding partners of ISA.
MAY
Corio publishes a separate report on CSR for the first time.
Corio adds a female member to the Management Board: Francine Zijlstra takes the position of Chief Operating Officer.
JUNE
Corio Nederland organises its second ‘Summer Night Event’, a roundtable with top ten tenants on CSR.
JULY
Corio participates in the international research programme of the Sustainable Investment in Real Estate Centre (s-i-r-e), which was initiated by the Royal Institution of Chartered Surveyors (RICS) together with Kingston University London and Krems Danube University.
It is the first empirical study to explore the measurable impact of sustainability characteristics on the financial performance of retail properties in Europe.
AUGUST
As a member of the United Nations (UN) Global Compact, Corio reported on the implementation of the ten UN Principles by means of a Communication on Progress. It also included the Millennium Development Goals.
SEPTEMBER
Corio is included in the Dow Jones Sustainability World Index.
An international Corio CSR meeting is held in Forum Duisburg. During this meeting we officially launch the Corio CSR performance management system.
Corio was included in the ASPI (Advanced Sustainable Performance Indices) register.
OCTOBER
The Corio HR Performance Management System is finalised for all Corio employees and ready to be implemented in 2011.
NOVEMBER
Corio’s shopping centre Tarsu in Tarsus, Turkey, receives a BREEAM ‘Very Good’ certificate.
Corio is ranked 12th in the Carbon Disclosure Project out of 60 Dutch companies.
DECEMBER
The International Leadership Academy in Istanbul, founded by Save the Children, in collaboration with Youth for Habitat, WALD and UCLG and supported by Corio, goes live. In Corio Italia a Great Place To Work survey is carried out amongst over 100 companies. Corio ranks 35th in that list.
5
Performance management at corio Manual for Managers and eMployees6
C O R I O C S R R E P O R T 2 0 1 0OUR STRATEGY
OUR AMBITION
• Creating Favourite Meeting Places
• Shopping centres that are dominant in their
catchment area
• Local+ and hands-on management
• Critical mass in each of our ‘home markets’
• A strong focus on stable markets (82% of portfolio value)
• Corporate Social Responsibility as an important pillar
• Solid financial structure
• Predominantly located downtown, transit-oriented and
at the heart of large communities
Our vision is to create sustainable places where people
like to meet. First and foremost, Corio believes shopping
centres can and should perform an important social
role. Our vision of a shopping centre is of a meeting
place where individuals can relax, socialise, feel at
home and be inspired. We are convinced that the
creation of appealing and successful shopping centres,
when managed properly, will generate greater economic
activity. In doing so, we recognise the importance of
being alert to the changing demands of people in the
catchment area and the need to adapt quickly to their
demands. To be successful, we believe our centres
should be sustainable in every respect: situational
(location), conceptual, aesthetic, social, environmental
and financial. We create to adapt.
WHO WE ARE
Corio is a retail property company. Our core business is to select, invest in,
develop, redevelop and manage shopping centres in Europe. Our mission is
to create favourite meeting places: sustainable centres where people meet
up, spend their time off, and shop; places they want to keep coming back to.
Value operational portfolio
€
6.9 billion
Pipeline investment
€
3.0 billion
Assets under management
€
9.9 billion
Gross rental income
€ 451.6 million
Market capitalisation
€
4.4 billion
Listed on Euronext in Amsterdam
Headquarters located in Utrecht, The Netherlands
GEOGRAPHIC SPREAD
STRUCTURE
OF CORIO
PIPELINE SPREAD
SECTOR SPREAD
Netherlands 27%
France 26%
Italy 20%
Spain/Portugal 10%
Germany 9%
Turkey 8%
Netherlands 34%
France 4%
Italy 30%
Spain 1%
Germany 26%
Turkey 5%
Retail 96%
Offices 4%
Industrial 0.2%
CEO|CFO|COOLEASING CENTRE MANAGEMENT
BUSINESS SUPPORT OFFICE SUPPORT
ACQUISITION|DEVELOPMENT
SUPERVISORY BOARD BAS VOS CHAIRMAN
ROBERT VAN DER MEER VICE CHAIRMAN WIM BORGDORFF
DERK DOIJER GOBERT BEIJER
INVESTOR RELATIONS
HUMAN RESOURCES MANAGEMENT CORPORATE PR & COMMUNICATIONS INVESTMENT STRATEGY & RESEARCH CORPORATE SOCIAL RESPONSIBILITY
MANAGEMENT BOARD GERARD GROENER CEO BEN VAN DER KLIFT CFO FREDERIC FONTAINE CDO FRANCINE ZIJLSTRA COO
LEGAL/COMPLIANCE RISK MANAGEMENT TREASURY
FINANCE & CONTROL TAX
INFORMATION MANAGEMENT
OUR CENTRES ARE DOMINANT
IN THEIR CATCHMENT AREA
We own and manage shopping centres that are perceived as leading within their respective markets. This enables us to draw large numbers of consumers from their catchment area. Dominance strengthens our position in our relations with retailers, local authorities and consumers.
MANAGEMENT, LETTING AND
DEVELOPMENT IS DONE
HANDS-ON, IN-HOUSE
Management, letting and development are performed in-house. This enables us to stay in close contact with the shopping centres, retailers and consumers in the catchment areas. This closeness enhances Corio’s ability to react quickly and appropriately to changes in consumer preferences. Local management and operating teams are closely involved in the operations of their shopping centre. Reviews of shopping centres’ operations are generally conducted every month on the basis of a number of key performance indicators. Each shopping centre’s competitiveness and ability to draw consumers in its catchment area is thus assessed and monitored regularly, enabling any corrective measures to be taken in a timely way.
OUR MANAGEMENT MODEL IS
DECENTRALISED: ‘LOCAL+’
Our management approach, which we call ‘local+’, gives substantial latitude to the local Business Units in each home market, whose in-depth local knowledge they apply to their markets, supported by professional support, operational frameworks and financing from central headquarters.
CRITICAL MASS IN EACH HOME
MARKET TO SUPPORT
PROFES-SIONAL IN-HOUSE MANAGEMENT
Corio only enters a new home market if it sees potential to achieve critical mass, based on the size and number of participants in the market. Critical mass enables Corio to maintain and reinforce its position in its home markets. It makes Corio an attractive partner for retailers from outside Europe, and facilitates the expansion of retailers within Europe.
IN SOURCING OF DEVELOPMENT
ACTIVITIES
Corio manages property development activities in-house. This enables us to control risks and product quality more effectively and run a more profitable business. We expect our in-house development activities to boost our overall profit margin. Corio will develop a site only when the land has been fully secured and zoning is in place. Construction costs are always capped, before the start of construction, to avoid the risk of budget overruns.
C O R I O C S R R E P O R T 2 0 1 0
KEY ELEMENTS OF OUR
STRATEGY
OPTIMISING PROFITABLE GROWTH
THROUGH AN ACTIVE ACQUI
SI-TION AND DISPOSAL POLICY
Corio pursues an active policy on acquisitions and disposals, to support the portfolio’s quality and realise value on a continuous basis.
EXPOSURE TO EMERGING
MARKETS LESS THAN 20%
Corio’s retail property portfolio is geographically diversified across regions whose markets are in various stages of development. While stable mature markets and growth markets will continue to account for the bulk of the portfolio, Corio aims to grow its share of activities in the emerging markets to no more than 20% of total investments, with a maximum of 10% per geographic region. This split is aimed at maintaining profitable growth and a sound risk-return profile.
EFFECTIVE RISK MANAGEMENT
Effective operational and financial risk management is underpinned by monthly key performance indicator reporting, monthly country CEO meetings, and quarterly management and financial reporting by the different Business Units. We use an integrated model for strategic, operational and financial risk management
LEADERSHIP WITHIN CORIO
Leadership is all about having a great idea, engaging people to believe in your idea and getting the idea realised. Leadership is not merely a management skill, it is an attitude which we cherish and develop in our people. We believe that more than ever, our success will depend on leadership that focuses on talent: talent as a description of certain skills people excel in, and not as a description of an employee. Leadership is finding that talent, deploying it in the best way and giving it room to flourish. Corio recognises the fact that skills are more important than knowledge. Skills such as communication combined with knowledge such as law and finance and consumer needs. Attitude, and passion are becoming more important than experience. Having an open mind and being receptive to things are very important in the evolving Corio culture. We find it essential that our people, throughout Europe, share important values and competencies and feel that they belong to a truly exciting, professional and leading company. A place where they can make a difference, where they can develop themselves and their environment. No matter where their office is located, employees should feel that Corio is their Favourite Working Place.
TOTAL CORIO
Holding Netherlands France Italy Spain/Portugal Germany Turkey Total
Gross rental income (€ million) 147.7 117.0 86.9 54.2 26.5 19.3 451.6
Property operating expenses (€ million) 24.8 11.9 9.0 10.4 2.2 6.5 64.8
Net rental income (€ million) 122.9 105.1 77.9 43.8 24.3 12.8 386.8
Administrative expenses (€ million) 13.8 9.6 5.4 3.0 1.1 0.3 6.3 39.5
Audit fee (€ thousands) 1,758
Total portfolio value retail incl. associates (€ million) 1,961.6 1,901.2 1,428.2 753.4 606.4 571.4 7,234.9* * Including Bulgaria (€ 12.7 million)
RETAIL
Holding Netherlands France Italy Spain/Portugal Germany Turkey Total
Annualised rent (€ million) 126.1 101.3 90.3 57.1 32.5 40.3 447.6
Rent per square metres per year (€ /m2) 224 261 361 308 264 178 258
No. Shopping centres 38 23 9 12 2 6 90
Leasable floor area (x 1,000 m2) 562.0 388.8 250.2 185.4 123.0 226.8 1,736.2
Retail contracts 2,140 1,206 919 952 195 635 6,047
Operational portfolio value incl. assoc. (€ million) 1,847.4 1,618.0 1,384.2 748.0 512.0 527.7 6,637.5
Occupancy rate (% financial) 98.0 92.3 98.9 93.9 99.8 95.3 96.2
PIPELINE
Holding Netherlands France Italy Spain/Portugal Germany Turkey Total
Total pipeline (re)developments (€ million) 1,044.7 118.2 913.8 24.5 779.7 157.4 3,038.3
Committed pipeline (re)developments (€ million) 321.6 59.0 224.1 9.2 514.0 54.2 1,182.1
Committed pipeline added on completion (x 1,000 m2) 79.7 22.1 60.8 4.2 125.1 27.6 319.5
HUMAN RESOURCE
Holding Netherlands France Italy Spain/Portugal Germany Turkey Total
Employees female (headcount) 28 73 51 41 30 NA 46 269
Employees male (headcount) 31 79 38 28 22 NA 26 224
Managers female (% of total managers per unit) 36 33 55 8 25 NA 39 38
Managers male (% of total managers per unit) 64 67 45 92 75 NA 61 62
Absenteeism (% of total working days) 1.4 3.9 3.6 0.8 1.4 NA 0.5 3.0
Employee turnover (%) 3.4 4.6 3.4 0.0 0.0 NA 18.1 5.9
ENVIRONMENTAL DATA RETAIL
Holding Netherlands France Italy Spain/Portugal Germany Turkey Total
Electricity intensity (KWh/m2) 155.7 138.6 114.1 96.6 NA 57.5 94.4
Carbon intensity (CO2/m2) 0.092 0.024 0.053 0.034 NA 0.068 0.107
PERFORMANCE
HIGHLIGHTS
1 1
LOOKING TO THE NEXT YEARS,
WE SINGLED OUT THREE MAIN
AREAS FOR ACTION: CSR
MANAGEMENT, REACHING FOR
ZERO AND SPREADING OUR
ROOTS.
Corporate Social Responsibility (CSR) has become an integral part of the way we do business. It is part of our strategy, decision-making and everyday work. We came a long way in a short time. It is our nature to create a long-term view and sustain value creation. We started CSR as a separate discipline in 2007, researching, inventorying and discovered many things, part of our business, were already in line with CSR objectives. In 2009 we issued our first CSR report and only a year later, in 2010, we were included in the world most credible indices: the Dow Jones Sustainability Index World (DJSI) and the Advanced Sustainability Performance Index (ASPI).
ACHIEVEMENTS IN 2010
Next to the inclusion in the DJSI and ASPI, Corio was ranked 12th in a group of 60 Dutch companies in the ‘Carbon Disclosure Project 2010 Netherlands’ report. The leadership we established, focused on developing human capital and based on our corporate values, has been implemented in a new code of conduct. We obtained ratings from BREEAM both on development projects and on ‘projects in use’, ranging from ‘Good’ to ‘Excellent’.
LOOKING FORWARD
The success of our centres, in all aspects, will depend on our ability to respond to changing consumer demands and performing beyond their expectations. Those consumer demands primarily come from the catchment areas in which our centres are embedded. It is therefore that we put much emphasis on ‘spreading our roots’, into that local community, learning what that community is all about and enriching the lives of our consumers, using that knowledge. To expand this shared value approach further we have initiated a collaboration with the department of business economics of the Erasmus University, Rotterdam (The Netherlands).
To further improve the implementation of our CSR strategy, measures and results, within our organisation a specific ‘CSR-management’ program has been set up. Even though CSR is formalised both at holding and local level, it has to become more and more part of people’s passion, beliefs and therefore everyday’s (working) life. Surveys, research and connecting to local stakeholders such as authorities, schools, sports clubs, etc are essential. In that sense we find that, much like our own convincement, people are getting more and more conscious of the environment and the impact we can have. ‘Reaching for Zero’ anticipates on that, ahead of expected European regulations. It prepares the company to tackle these challenges. With the dedication of our people based on our company’s vision and values we can make it onto the next CSR-gear for the benefit of all stakeholders.
G.H.W. GROENER (GERARD, 1958)
Chief Executive Officer and chairman of the Management Board
STATEMENTS OF THE MANAGEMENT BOARD
1 2
“
As a business we have a responsibility towards
all stakeholders, including shareholders, who invested
their funds into our business. We ensure our economic
sustainability both today and in the future by investing
in the social development of the communities we
operate in and in the sustainable development of our
centres. This shared value perspective will provide new
catalysts for economic growth and the next wave of
innovation and productivity.
”
B.A. VAN DER KLIFT (BEN, 1959)
Chief Financial Officer and member of the Management Board
“
In the process of redeveloping our existing shopping
centres we focus on adding value by revitalising them.
To do this, we believe in preserving the existing soul of
a centre while improving and breathing new life into it.
When we build a new centre, we always keep in mind
that it will be inherited by future generations. We ensure
that the centres are able to deal with the flexibility this
demands. All our developments strive to adapt to the
needs of individuals, now and in the future.
”
F.Y.M.M. FONTAINE (FREDERIC, 1958)
Chief Development Officer and member of the Management Board Chief Executive Officer of Corio France
1 3
F.J. ZIJLSTRA (FRANCINE, 1963)
Chief 0perating Officer and member of the Management Board
OUR START
Looking back to when we began to incorporate Corporate Social Responsibility (CSR) into our activities, I am proud to see how our management and performance has progressed so rapidly and yet organically. We successfully linked our CSR strategy to our company goals and found that CSR is an essential driver in realising our mission of creating Favourite Meeting Places; it creates stronger shopping centres. By proactively engaging with our stakeholders we are not only able to respond effectively to their expectations but we are able to create value together, both for society and for Corio. Corporations are in a powerful position to make a positive impact on society. We must therefore integrate social causes into our everyday business. Shared value will reinforce Corio’s unique strategic positioning in creating Favourite Meeting Places.
WHERE WE ARE NOW
Through extensive research, it became evident that consumers and business partners value social and environmental performance. Corio lives up to that expectation by offering more and more transparency in our use of resources, by integrating sustainability in design, construction and management of our assets, and by investing in our communities with a focus on employment, entrepreneurship and education. These areas are closely linked to our business success and the ones that we can have a maximum positive impact on. Our employees play a central role to further embedding CSR into Corio. Their mindset and engagement are essential in achieving our goals. Leadership is a central theme in our approach to talent development and retention, now and for years to come. Innovative and lasting partnerships with suppliers, tenants and authorities are emerging, realising benefits for all stakeholders.
LOOKING FORWARD
As a retail property company, we need to look beyond the obvious, beyond the here and now. Examining future trends such as urbanisation, demographic shifts, sustainability, and the changing expectations and role of consumers will increasingly influence us in everything we do. We believe in adapting to the changes taking place and to anticipating what lies ahead of us. As consumers increasingly play a central role in society, they are also central to our business strategy. Catering to people in urban environments requires a local, dedicated approach to the products, services and campaigns that fulfil the needs of our stakeholders. Integrating CSR into our operational dashboard, will help us to think out of the box and to create new sustainable partnerships that will help make our centres Favourite Meeting Places.
AS CONSUMERS INCREASINGLY
PLAY A CENTRAL ROLE IN
SOCIETY, THEY ARE ALSO
CENTRAL TO OUR BUSINESS
STRATEGY.
C O R I O C S R R E P O R T 2 0 1 0
1 4
C O R I O C S R R E P O R T 2 0 1 0
1 4
HOW TO READ THIS REPORT
Corio’s CSR Reporting cycle is annual and is aligned with our financial reporting cycle. The data and information presented in this report relate to the financial year beginning at 1 January 2010 and ending at 31 December 2010. It should be read together with the Annual Report & Accounts of 2010. This CSR report is intended as a tool for discussions with stakeholders, whose confidence and trust we want to retain and strengthen. We see it as an opportunity to identify the areas where we can add value for our stakeholders. This is our second seperate CSR report and has been written in accordance with the GRI 3 guidelines. This overarching standard is appropriate for our business: it can be used as a benchmark, both internally and externally and will be the basic structure to keep track of our year-to-year improvement. The GRI Index table with references to the applicable pages in this report or other reference documents are available as a separate document online (www.corio-eu.com/csr.html).
In this report we first of all set out the importance of CSR within Corio’s strategy and then describe how we have embedded this strategy into the organisation and relevant networks. Finally we have included a chapter for each strategic CSR topic, thus ensuring that the most relevant issues are covered extensively. Each topic is illustrated by an example from one or more Business Units.
CRITERIA
We have this CSR report live up to the following criteria:
RELIABILITY
The information and processes used in the preparation of this report are gathered, recorded, compiled, analyzed and disclosed in a way that could be subject to examination and that establishes the quality and materiality of the information. We have done this in the preparation for the audit we have planned for 2011.
CLARITY
Information has been made available in a manner that is
understandable and accessible to stakeholders using the report, as we have used the GRI 3 guidelines for reporting. These guidelines are internationally accepted as a benchmark. We therefore refer to the GRI table online for illustrations as regards content.
BALANCE
The report reflects positive and negative aspects of Corio’s performance to enable a reasoned assessment of our overall performance. We list our performance of 2010, including highlights, but also issues we need to work on; translated into concrete targets.
COMPARABILITY
Issues and information is selected, compiled, and reported consistently, which enables our readers to analyze changes in the organization’s performance over time, and could support analysis relative to other organizations.
ACCURACY
The reported information is in our view sufficient accurate and detailed for our readers to assess the reporting organization’s performance.
TIMELINESS
We give insight in the reporting cycle (in this chapter), which occurs on a regular schedule and the information is available in time for stakeholders to make informed decisions.
SCOPE
In terms of scope, this report reviews all our CSR related business activities, including the investment, (re)development and management of our shopping centres. It also covers key aspects of our economic, environmental and social performance in relation to our five key topics that have been identified in our CSR Strategy. Unless stated otherwise, the calculations and performance data mentioned in this report: • include all of Corio’s operations in its five out of six home markets: the Netherlands, France, Italy, Spain and Turkey. The centres of Corio Deutschland have not been in portfolio for the whole of 2010 and have therefor not been included in this report;
• include the shopping centres that have been in portfolio for the full twelve months of 2010;
• include the service areas of centres where we have management control: where we can make a difference;
• include shopping centres in our operational portfolio, larger than 5,000 m2;
• include electricity use of covered parking garages. M2 of these garages have not been taken into account as this would compromise the reliability of the intensity (KWh/m2)
• exclude the impact of tenants, except for the shopping centres for which we have such data available.
INFORMATION SYSTEMS
We use a company-wide Environmental Information System that contains data on energy use, water use and waste. The energy usage allows for breakdowns of: purchased electricity, sustainable electricity, heating fuel, district heating, self-generated sustainable electricity and gas. The water use categories are: drinking water, grey water and sewage water. The waste is reported on by origin: glass, paper/ cardboard, oil/fat, organic waste, hazardous waste and refuse (which
1 5
1 5
is the only component sent to landfill).
With this information system we can benchmark our data within Corio. Anticipating on an external assurance audit in future years, we have incorporated an internal assurance tool in the Environmental Information System. This will enhance access to comprehensive data for analysis, benchmarking and Key Performance Indicators (KPIs) and will simplify reporting under GRI.
Our HR data is gathered through a specific questionnaire about our international workforce.
ANNUAL REPORTING CYCLE
Resulting from our environmental and social data gathering, we have a consolidated data set, ready to be reported on and to be incorporated into CSR management. The reporting cycle as below will be repeated four times from 2011 onwards.
COVERAGE TABLE
2008 (%) 2009 (%) 2010 (%) Corio Nederland 59 88 88 Corio France 40 70 70 Corio Italia 100 100 100 Corio España 100 100 100 Corio Türkiye 100 100 100These are the shopping centres that are reported on as percentage of total shopping centres that meet all requirements under CSR scope as mentioned above.
CONTACT
We welcome any feedback from readers on this report. We look forward to drawing on your valuable suggestions to improve the way we approach and manage CSR.
For any questions about this report or information found online, you can contact us via telephone +31 30 234 64 64 and e-mail [email protected].
Other contact information can be found on the last page of this report.
Measuring our effect on people
and planet by company own Analysis of data specialists Internal and external benchmarking Data review by data owners Report on data Target and action plan setting
STRATEGY
Corporate Social Responsibility is a central part of how we do business. As a developer, owner and operator of retail
property, we have a responsibility towards our stakeholders. Towards consumers and visitors, in providing them a
safe and healthy environment, where they can relax, connect and get inspired. Towards the people who live around
our centres, by minimising our impact on the environment and maximising our impact on the social and economic
development of society. Towards our employees, by providing them a sound working environment, where they can
get the best out of themselves. By operating efficiently and effectively, we provide businesses that operate in our
centres a sustainable and attractive environment, where they can be successful. It is by creating value for these
stakeholders that we create value for our shareholders.
Up until 2009 we based our CSR strategy on five CSR pillars, mainly reflecting material areas and stakeholders:
Community, Employees, Tenants, Suppliers and Environment. To bring focus to our approach and make it more
company specific, we identified five key topics. By actively engaging with our stakeholders on the following key
topics, we can create synergy, innovation and therefore value, together. The key topics are elaborated on the next
page. We have defined a long-term goal (with a five-year horizon) and a mid-term goal (in three years’ time).
CSR STRATEGY,
GOVERNANCE AND
ENGAGEMENT
C O R I O C S R R E P O R T 2 0 1 01 6
IN THIS CHAPTER
Key topics P 17 Key performance indicators P 18 CSR management within Corio P 18 Affiliations and partnerships P 19 Stages in our CSR strategy P 20Stakeholder engagement P 22
WWW.CORIO-EU.COM/CSR.HTML
CSR policyCorporate Governance statements Legal structure
CSR risks and opportunities
NOT REPORTED
We do not cover topics that:
• have already been addressed in previous reports
• we cannot influence through management • do not significantly impact our business
KEY
TOPICS
1 7
PUTTING CONSUMERS FIRST
Long-term goal: To enable, engage with and inspire consumers to enrich their lives, make responsible purchasing choices and reduce the impact on the environment.
Mid-term goal: To monitor and translate the results of consumer behaviour into the daily management of our shopping centres.
Rationale: Consumers and visitors are what we are all about. We strive to create Favourite Meeting Places where they can feel comfortable and happy and want to come back to, again and again. This ambition is both an aspiration and a responsibility.
ROOTED IN SOCIETY
Long-term goal: To enhance community development by providing lasting social and economic opportunities.
Mid-term goal: To measure the Social Return on Investment and make it part of our company strategy.
Rationale: Our centres play an important social and economic role in the community, not only as a place to meet but also as a source of Employment, Education and Entrepreneurship: the Triple-E scope. There is a strong connection between the social and economic development of the communities we are rooted in and the vitality of our centres. A targeted community investment approach is bound to create value both for society and for Corio; the more embedded our centres are in society, the better.
LEADERSHIP IN OUR CULTURE
Long-term goal: To foster a culture of leadership that emphasises the connection between trust and transparency and where freedom and accountability go hand in hand.Mid-term goal: To uphold our company values and maintain a leadership style that preserves these anchors of our culture.
Rationale: Our people are our future and future leaders need to be developed and inspired continuously. We are therefore implementing a group-wide HR management approach that incorporates Corio’s core values: team play, empathic, inspiring, reliable and daring.
SUSTAINABILITY IN OUR
OPERATIONS
Long-term goal: To realise the sustainability potential of our portfolio through partnerships with tenants and suppliers.
Mid-term goal: To manage our shopping centres in such a way that our environmental impact is minimised and the collaboration with our partners is maximised.
Rationale: To us sustainability means fin -ding the balance in the integration of social, environmental and economic quality. Partnering with our tenants and suppliers is conditional on achieving this. We focus on resource efficiency, reduction of CO2 emissions and pro moting wellbeing within our centres. By developing Green Leases together with our tenants and co-creating workable and inno vative solutions with our suppliers, we are working to realise the sustainability potential of our portfolio.
CREATING SUSTAINABLE CENTRES
Long-term goal: To create flexible, future-proof and viable centres.
Mid-term goal: To integrate sustainability fully in the design and (re) development of our centres.
Rationale: Corio ensures its economic sustainability by investing in the ecological and social development of its centres. We strive for BREEAM ‘Good’ ratings as a minimum for all our redevelopment and BREEAM ‘Very good’ for development projects.
MANAGEMENT
CSR is integrated both within the local Business Unit and Corporate Management Board responsibilities. Recognising the importance of CSR at the strategic level, the Chief Operating Officer is directly responsible for CSR. In addition, Corio recently created a position for a Head of CSR at the corporate level. The head of CSR reports to the COO.
To ensure alignment with other disciplines on the corporate level, a CSR steering committee chaired by the COO meets six times a year and is made up of representatives from compliance, legal, human resources, and risk management. The committee ensures our adherence to the UN Global Compact standards and to practices related to sustainability. It also advises on the implementation of policies and procedures and acts as a sounding board for specific CSR topics.
Every Business Unit has a CSR committee that consists of managers from various disciplines that are responsible for the execution of our CSR strategy. The committees monitor and report on the performance of CSR initiatives and implement strategy into the operational processes and organisational structure of the Business Units. They also integrate CSR objectives into the profiles and responsibilities of employees. As of 2011, CSR is tied to the formal appraisal procedure of every employee.
Since 2008, an international CSR meeting is organised at least once a year together with local CSR committee members, the CSR department at the group level and the COO. At this meeting, CSR strategy and tactics are explained, new insights are shared and best practices are exchanged.
MONITORING AND REPORTING
KEY TOPICS AND MAIN KPI’S
In 2010, CSR was further integrated into our operations, decision-making and management processes. We fully integrated CSR criteria into strategic business plans for existing assets and investment proposals both for acquisitions and (re) developments.
To monitor CSR performance throughout our organisation, we defined our main KPI’s, which will form the basis of our quarterly and annual measurement and management reporting as of 2011.
PUTTING CONSUMERS FIRST
To ensure we remain alert to consumer demands and trends, we ask consumers their opinions on a regular basis. We integrate the findings into our day-to-day management. Consumer needs are also integrated into the design of our centres. We include consumer wellbeing criteria into our quality assessments of existing assets and investment proposals.
We start performance tracking by measuring the percentage of shopping centres that survey consumers yearly (KPI 1). This is, however the first stage of our performance management KPI setting. The next step is to measure consumer satisfaction levels throughout our portfolio in a consistent manner. This adaptation of KPI 1 is to be implemented in 2012.
The second KPI relates to our quality assessments and the outcomes of this yearly recurring exercise. Once a year, all Business Units are asked to assess every shopping centre in terms of quality regarding design aspects. We integrated CSR criteria into this quality assessment rating in 2010 and will be able to measure CSR scores of each and every centre starting in 2011. This score is our second KPI.
ROOTED IN SOCIETY
We are developing a Social Return on Investment methodology. This will make our impact on society’s health and wellbeing measurable and manageable. To reach our mid-term goal, we have launched a series of initiatives that promote Education, Employment and Entrepreneurship. The programme, which we call the 3Es, will also measure the benefits of projects initiated by our Business Units within that scope.
Our KPI is: the number of projects initiated in operational centres within the 3E scope. As soon as we have defined a SROI methodology, SROI will become the KPI for this key topic.
LEADERSHIP IN OUR CULTURE
We measure three elements we find essential to assess our workforce: sick leave/absenteeism, employee turnover and gender diversity. Other criteria such as fairness of remuneration and training hours per employee are measured as well, but are not within our chosen set of main KPIs.
Our KPIs are: % absenteeism, employee turnover and diversity in our workforce on management level.
SUSTAINABILITY IN OUR OPERATIONS
In defining KPIs for assessing the sustainability in our operations, we had a lot to choose from. Water, waste, energy and biodiversity are all very important issues. Electricity is the biggest contributor to our carbon emissions total. If we achieve energy-efficient centres, we can minimise carbon emissions. The key to achieving energy efficiency lies in working closely together with tenants.
Our main KPIs are: the level of electricity intensity (kWh/m2), carbon emissions intensity (tonnes CO2/m2), the percentage of Green Leases signed as part of all new contracts, and the percentage of green clauses signed to regular contracts with suppliers.
CREATING SUSTAINABLE CENTRES
More than 70% of the assets under management consist of existing assets. However, our pipeline of developments and redevelopments is important for the future. They provide an opportunity to integrate sustainability right from the start, from the conceptual phase, to the design and construction. We targetted BREEAM ‘Good’ as the minimum level for all new developments and BREEAM ‘Very Good’ for redevelopments. Collaboration with our main suppliers in this process is essential in achieving this target. We therefore measure the percentage of suppliers that have signed the Corio code of conduct. The next step is to measure levels of compliance with the code, by measuring the number of breaches of the code.
Our KPIs are: The percentage of BREEAM ‘Good’ certificates or higher as part of all (re)developments, the percentage of suppliers who have signed the code of conduct.
CSR RISKS
Corio has a structured, pro-active risk management framework and focuses on material strategic, operational, compliance and financial reporting risks. The business units and the holding company go through a systematic process of identifying and evaluating risks and controls and, where necessary, improving the way in which risks are managed. We identify these material risks for CSR:
• Management risks: Corio’s sustainability targets are set centrally and reviewed regularly together with the Business Units to ensure that they are feasible and realistic but also meet our company objectives. Corio’s decentralised business model allows the Business Units to execute strategy in accordance with local requirements, which is a mitigating factor.
• Regulatory risks are managed by monitoring changes in relevant legislation and tenant/sector demands on CSR. Corio strives to run its business in compliance with current (and future) laws and regulations and in a transparent way. We are conscious of the economic benefits of greater environmental efficiency and thus take advantage of any available subsidies and generally seek to reduce operating costs where possible.
• Physical risks: These are taken into account as part of the investment decision and decisions on the insurance coverage. For existing shopping centres, where possible adjustments are made to meet the changing demands of tenants and visitors as a result of climate change.
• Social risks: Corio is aware of the impact a CSR policy can have on investors, consumers, tenants, employees and other stakeholders and therefore communicates this in order to manage perceptions and expectations.
AFFILIATIONS AND PARTNERSHIPS
ACTIVITIES AND RESULTS IN 2010:
• Corio became a founding member of the International Sustainability Alliance (ISA), a global network of real estate organisations dedicated to achieving a more sustainable built environment. Together with the ISA, Corio is creating a benchmarking tool to measure the performance and environmental impact of existing commercial buildings.
• Corio is collaborating in academic research, such as the
international research programme of the Sustainable Investment in Real Estate Centre (s-i-r-e), which was initiated by RICS, together with Kingston University London and Krems Danube University. This project is the first empirical study to explore the measurable impact of sustainability characteristics on the financial performance of retail properties in Europe.
• Corio is collaborating with Erasmus University in Rotterdam to develop a Social Return on Investment measurement methodology specifically designed to quantify the value Corio creates for society. • Corio is a member of the International Council of Shopping Centers
(ICSC), the European Public Real Estate Association (EPRA) and Urban Land Institute (ULI) and cooperates with these associations in CSR.
• As a member of the UN Global Compact we issued an annual Communication on Progress in August 2010, which included a public disclosure to stakeholders on progress made in implementing the ten principles of the United Nations (UN) Global Compact, and in supporting the broader UN Millennium Development Goals.
• Corio and Save the Children have a partnership whose goal is to create an International Leadership Academy in Istanbul. The Academy was unofficially opened in 2010 after which train-the-trainer courses started. The official opening will be in spring 2011.
SHIFTING INTO A
HIGHER GEAR
C O R I O C S R R E P O R T 2 0 1 0
2 0
THE FOLLOWING STAGES OF ACTIVITY AND GENERAL MILESTONES
ALONG OUR CSR JOURNEY ARE REPRESENTED AS GEARS*
•Reactive •Compliance •Public relations •Philanthropy • Awareness • Measuring and managing environmental impact • Eco efficiency • Risk management • Commitment • Wider societal expectations • Multi-sector alliances in stakeholder engagement • Engagement • CSR embedded in all processes and systems • Two-way stakeholder engagement • Public private partnerships
* Based upon SustainAbility’s Corporate Responsibility Gearbox framework as outlined in its report for the UN Global Compact Office entitled Gearing Up
PARTNER,
ENGAGEMENT
We have several criteria of this stage already in place, but want to fully reach it in the medium term (next
three years).
INTEGRATE,
COMMITMENT
This is our long term ambition (next five years).
1
3
2
4
COMPLY
SHARED
VALUE
VOLUNTEER,
RAISING AWARENESS
We relate this stage to our current situation and will focus in 2011 on consolidating this stage and entering into the next phase.
SUMMARY
To Corio, CSR is like a wheel in constant motion. As the world we live in and the needs and expectations of stakeholders change, it is important that our approach to CSR continues to evolve. We need to continuously monitor trends and developments, integrate them into our approach and refine our strategy. Over the past few years we have transformed our approach from a generic and systematic one to a more company-specific and strategic approach. In order to get to the next level at which we can increase the positive impact we have on society, we need to step up our efforts. To this end we regularly review and update our CSR strategy and policy. We are also working to enhance the measurability and hence manageability of CSR within our organisation. It is our long term ambition to reach the stage of Integrate in the figure above. We have evaluated our performance and defined three points of interest we will focus on during 2011. Next step is to initiate corresponding programmes to pave the way for reaching the stage of Integration. These programmes are designed to anticipate future trends and to embed CSR further into our organisation. Every programme has a programme manager, team and reports to a steering committee. Reaching the objectives in the programmes are not goals in themselves; they make for a comprehensive tool that will help us to reach the next level of CSR maturity. Taking continuous and steady steps that add value to all stakeholders is essential to us in realising our company vision of creating Favourite Meeting Places.
PROGRAMME 1 ‘CSR MANAGEMENT’
What gets measured gets managed. In order to improve our measurement and therefore management capabilities, we started the implementation of a CSR performance management approach throughout the group. Together with all Business Units, the first steps were defined by agreeing upon methodology, metrics and ownership. The objective is to give all layers within the Corio organisation the instruments to manage CSR in an effective and consistent way. This will help our Business Units to align in terms of CSR performance while respecting local laws and regulations using expertise of specific staff and partners. To that end, we will implement a CSR competence centre, effectively creating a platform and network from which to share best practices, develop internal education programmes and engage employees.
PROGRAMME 2 ‘REACHING FOR ZERO’
In the light of upcoming EU regulation requiring new buildings to be energy neutral as of 2020 and our commitment to maximise energy efficiency and minimise CO2 emissions, we will establish an international project team of colleagues from our Business Units. This team will work on an approach to tackle regulatory challenges, foster innovation and increase our knowledge on this specific subject to achieve tangible results.
PROGRAMME 3 ‘SPREADING OUR ROOTS’
The objective of this programme is to create measurable value through the incorporation of feedback from structured stakeholder dialogue into our daily operations. We will incorporate the findings of the academic research we participate in into our daily business and operations (please see ‘Affiliations and partnerships’, page 19). We will start two pilot projects within the programme to apply our findings at centre level and measure the value creation at all levels by means of a Social Return on Investment methodology.
INVESTORS
• Annual Report and Accounts, Half Year Report • Quarterly press releases on financial results
• Regular press releases on major operational issues such as acquisitions, (re)developments, etc.
• Regular meeting and presentations with respect to financial performance • Property tours
CONSUMERS
• Consumer satisfaction surveys • Signs with health and safety information throughout the centres • Online consumer panels • Consumer information desks • Shopping centre websites with feed back sectionsCOMMUNITIES
• Community and visitor surveys • Events to enhance awareness of social and environmental themes • Newsletters, websites and other ways of communication with services and events at local shopping centres• Taking action and providing space for local health care, employment or education
EMPLOYEES
• Increasing the CSR awareness through newsletters • Presentation strategy, CSR Policy and Code of Conduct • Addressing common values • Tips to improve workplace conditions and personal health • Intranet • CSR SharePoint • Incorporating CSR in the annual evaluationHOW WE ENGAGE
AND INFORM OUR
STAKEHOLDERS
TENANTS
• Regular contacts with tenants to discover wishes and needs, which is the core of our hands-on centre management approach • Roundtable meetings with main tenants • Collaboration with tenants on Health and Safety issues in the centres • Tenant satisfaction studies
SUPPLIERS
• Main suppliers sign our Code of Conduct • Informing and setting requirements on labour and working conditions (health and safety) and care for the environment• Cooperation with suppliers to enable innovation
LOCAL AUTHORITIES
• Engagement with municipalities as part of the planning and development process • Engagement with local authorities as part of the shopping centre operation2 3
PUTTING CONSUMERS
FIRST
C O R I O C S R R E P O R T 2 0 1 0
2 4
86% OF GLOBAL CONSUMERS BELIEVE THAT CORPORATIONS
SHOULD PLACE AN AT LEAST EQUAL WEIGHT ON SOCIETY’S
INTERESTS AS ON BUSINESS’ INTERESTS. 80% SAY
CORPORATIONS ARE IN A UNIQUELY POWERFUL POSITION TO
MAKE A POSITIVE IMPACT ON GOOD CAUSES AND 64% BELIEVE
IT IS NO LONGER ENOUGH FOR CORPORATIONS TO JUST DONATE
MONEY; THEY MUST INTEGRATE SOCIAL QUESTIONS INTO THEIR
EVERYDAY WORK.
SUMMARY
Consumers and visitors are what we are all about. We strive to create Favourite Meeting places where they can feel relaxed, comfortable, have fun, mingle with others and want to return to again and again. This ambition is both our inspiration and our responsibility. We want to enable, engage with and inspire consumers to enrich their lives, to help them make responsible purchasing choices and reduce their climate impact.
MANAGING ‘PUTTING CONSUMERS FIRST’
We have integrated wellbeing factors such as health and safety into our quality assessments of existing assets in order to determine a score for each and every shopping centre based on objective criteria. These quality assessments take place every year and are the basis for further action and improvements to our centres. These criteria are also integrated into investment proposals to ensure the investment decisions we make take into account the wellbeing of consumers and visitors inside our centres. This way, we are embedding the interests of consumers into our decision-making processes. Corio stimulates Business Units to organise activities within our centres that focus on social and environmental themes in order to entertain and educate consumers.
ACTIVITIES AND RESULTS IN 2010
To measure our progress regarding the integration of consumer opinions and needs, we defined the following set of KPIs in 2010: • Consumer satisfaction surveys must be in place in all centres
throughout the company and the results are to be integrated into the day-to-day management of the centres. We will therefore measure the percentage of consumer satisfaction surveys in place, after which we will measure the average score.
• We regularly perform quality assessments of our existing portfolio in terms of building design and building related criteria, transport facilities and location. Other criteria examined relate to wellbeing, health and safety such as proximity of the building to air pollution sources, daylight provision, internal acoustics, floor to ceiling heights, the presence of areas for relaxation and areas that cater to children and the elderly. Corio has integrated consumer needs related to CSR in these quality assessments, thus giving us a clear picture of the actual situation per asset. We therefore measure the average CSR quality assessment score on portfolio level as a KPI. This is the first time we are focusing on consumers as a separate key topic and will therefore report on progress throughout the year 2011. Achievements will be reported in our mid-year update of the CSR section of our website.
2 5
IN THIS CHAPTER
Quality assessments Consumer satisfactionTargets regarding our consumers Wellbeing
WWW.CORIO-EU.COM/CSR.HTML
Health and safetyConsumer satisfaction surveys
NOT REPORTED
We do not cover topics that:
• have already been addressed in previous reports
• we cannot influence through management • do not significantly impact our business
C O R I O C S R R E P O R T 2 0 1 0
2 6
CORIO PARTNERS WITH SLOW FOOD ITALY TO PROVIDE
WORKSHOPS TO CONSUMERS
Corio Italia and Slow Food Italy conducted a series of tasting workshops which featured wine, cheese and beer. The Slow Food movement which began in Italy 25 years ago considers itself a crossroads of ecology and gastronomy. They have evolved into a global grassroots movement associated with promoting the consumption of sustainable, fair and good food. These four-day workshops were free to Slow Food members, who increased their knowledge of food and beverages and received a diploma at the end of the series. The course was organised in collaboration with the Caserta professional school for tourism, catering and hotel management.
RATIONALE
Improving the wellbeing of consumers and helping them adopt a healthy lifestyle is key to Corio’s vision of putting consumers first.
PROVIDING TRANSPORT FOR THE ELDERLY TO OUR
GROENHOF CENTRE IN THE NETHERLANDS
Corio Nederland, along with local partners, has established a bus system for the vulnerable older residents of the Amstelveen area where our shopping centre Groenhof is located. It is an area where 60% of the residents are over 45 years old and 35% are older than 60.
This service allows the elderly to come to the centre so they can attend to their shopping needs and socialise. The bus picks up each resident from their home and drops them off again on their doorstep once their shopping is done. The service also takes residents to local markets, garden centres and concerts or film nights at nursing homes in the area.
RATIONALE
By understanding the demographics of its communities, Corio Nederland and its centres are able to respond to the needs of consumers by creating programmes such as this one, which helps the elderly gain independence in their lives.
CORIO PARTNERS WITH SLOW FOOD ITALY TO PROVIDE
WORKSHOPS FOR CONSUMERS
Adapt concepts and management to expected
demographic shifts such as ageing and single
households.
Inform consumers about the activities we undertake in
making our centres more sustainable through various
modes of communication, both on site and online.
Inform consumers about actions they can take to
integrate sustainability into their lives, inspire them to
see sustainability as a source of value creation.
Further enhance consumer satisfaction measurement
and integrate findings into strategy and operations.
Further engage with tenants to optimize and realise
common objectives.
Relevant targets to reach these goals are included in appendix A of this report and online on www.corio-eu.com/csr.html
2 7
OUR GOALS
70%
In 70% of our shopping centres consumer satisfaction
studies were held which included CSR topics
400
MILLION
ROOTED IN SOCIETY
C O R I O C S R R E P O R T 2 0 1 0
2 8
COMPANIES MUST TAKE THE LEAD IN BRINGING BUSINESS AND
SOCIETY BACK TOGETHER. THE SOLUTION LIES IN THE PRINCIPLE
OF SHARED VALUE, WHICH INVOLVES CREATING ECONOMIC
VALUE IN A WAY THAT ALSO CREATES VALUE FOR SOCIETY BY
ADDRESSING ITS NEEDS AND CHALLENGES. BUSINESSES MUST
RECONNECT COMPANY SUCCESS WITH SOCIAL PROGRESS.
The Big idea: Creating Shared Value in Harvard Business Review February 2011 by Michael E. Porter, who is the Bishop William Lawrence University Professor at Harvard University. He is a frequent contributor to Harvard Business Review and a six-time McKinsey Award winner.
SUMMARY
Our centres play an important social role in the communities they operate in, not only as a place to meet but also as a source of Employment, Education and Entrepreneurship: our ‘3E’ approach. There is a strong connection between the social development of the communities we are rooted in and the vitality of our centres. A targeted community investment approach is bound to create value both for society and for Corio. It is by cooperating with tenants, local authorities, NGO’s and other relevant stakeholders that we aim to raise the bar in this area.
MANAGING BEING ROOTED IN SOCIETY
We invest in social and economic development with a focus on the 3E approach since benefits to the local community will also benefit our shopping centres. Public-private partnerships are a means to that end. By developing a social return on investment measurement system we are able to maximise our inpact on society while realising our ambition as a company.
ACTIVITIES AND RESULTS IN 2010
Over the course of 2010, our Business Units produced inspiring examples of social value creation within the community. The following examples illustrate our community investment strategy.
EMPLOYMENT:
• One of Corio’s community goals is to assist job seekers in their catchment area. Corio Italia set-up a programme with tenants and employment agencies to assist visitors of Le Gru (in the Grugliasco area) in finding jobs with the help of Le Gru shopping centre tenants, giving priority to the catchment area residents.
• Corio France organised job fairs within several of its centres in partnership with municipalities, 6,000 people attended these job fairs that resulted in 300 jobs.
• Maremagnum shopping centre in Barcelona assisted in finding employment with its suppliers of cleaning and security services for people from inner city area with high unemployment rates.
EDUCATION:
• Corio N.V. is investing in a leadership academy in collaboration with Save the Children. The goal of the Leadership Academy in Istanbul is to provide 3,000 disadvantaged young adults (between 15-25 years of age) with life skills education over the next three years. The programme will develop participant knowledge of their international rights and communication, social and negotiation skills and will generally improve the position of young girls. During the summer of 2010, instructors were trained and the programme will enrol its first students in 2011. Corio Türkiye is the delegate of Corio N.V. in this and monitors and supports the Academy locally.
• Corio N.V. partnered with the Erasmus University of Rotterdam to jointly develop a Social Return on Investment methodology that is specific for our business. We want to measure the value our company creates for society. After the definition and implementation of this methodology, we will be able to set informed and realistic targets and KPIs.
2 9
IN THIS CHAPTER
Social development of our communities and the vitality of our centres
Employment, education and entrepreneurship
Wellbeing
WWW.CORIO-EU.COM/CSR.HTML
Health and safetyEnvironmental impact Save the Children Volunteering opportunities
NOT REPORTED
We do not cover topics that:
• have already been addressed in previous reports
• we cannot influence through management • do not significantly impact our business
C O R I O C S R R E P O R T 2 0 1 0
3 0
The Maremagnum Centre in Barcelona is located about two kilometres from a poor inner city neighborhood called El Raval. In an effort to help the catchment area, Maremagnum embarked on a collaborative venture with a local NGO, “Casal Del Raval”, which works to improve the lives of the underprivileged in this area. The collaboration began with Maremagnum providing a refuge for mothers and their children, but quickly
evolved into a more personal relationship where the centre manager regularly volunteered his time, to the extent that he is now a member of the management of ‘Casal Del Raval’.
As part of the programme, Corio and its tenants offer free events for children from the neighbourhood in the centre’s Imax theatre and the playground area. Maremagnum also links up people from El Raval with its
contractors and tenants, for example with cleaning and security firms, thus creating jobs for the locals.
This collaboration between Maremagnum and its stakeholders and the tireless volunteering of Maremagnum’s manager have given members of the El Raval community a real sense of belonging.
OUR GOALS
ENTREPRENEURSHIP
• Gran Reno in Bologna allotted free store space to a local charity to create the Piquadro Temporary Shop during the 2010 holiday season. The store sold products created by disabled children. Revenues from the products sold went to community projects that support the social integration of people with disabilities in the catchment area.
Develop and implement a company-wide and
company-specific Social Return on Investment
methodology.
Increase innovative use of vacant retail or common
area space in our shopping centres to further the E3
goals.
Increase collaboration and partnerships with NGO’s,
local authorities and educational institutions with
the aim of spreading our roots in our communities
and contributing to the wellbeing of residents in our
catchment areas.
Relevant targets to reach these goals are included in appendix A of this report and online on www.corio-eu.com/csr.html
3 1
300
JOBS
Corio France organised job fairs, resulting in 300 actual
jobs for inhabitants of our catchment areas
LEADERSHIP IN OUR
CULTURE
C O R I O C S R R E P O R T 2 0 1 0
3 2
COMPANIES CAN ONLY SUCCEED IN THE LONGTERM IF THEY
RECRUIT AND MOTIVATE PEOPLE WHO ARE ABLE TO RESPOND
TO AND SHAPE THE CHALLENGES OF THE FUTURE. THESE ARE
THE INDIVIDUALS WITH THE CAPACITY AND LEADERSHIP SKILLS
TO CREATE COMPETITIVE ADVANTAGE FROM THE OPPORTUNITIES
PRESENTED BY CHANGING MARKETS. THEY HAVE THE DESIRE TO
LEARN FROM CUSTOMERS, SUPPLIERS AND COLLEAGUES AND
HAVE THE ABILITY TO BUILD AND INFLUENCE LONG-LASTING AND
EFFECTIVE PARTNERSHIPS.
SUMMARY
Leadership is all about having a great idea, engaging people to believe in your idea and getting the idea realised. Leadership is not merely a management skill, it is an attitude that we cherish and develop in our people. We believe that more than ever, our success will depend on leadership that focuses on talent: talent as a description of certain skills people excel in, and not as a description of an employee. Leadership is finding that talent, deploying it in the best way and giving it room to flourish.
MANAGING LEADERSHIP IN OUR CULTURE
Corio recognises the fact that skills combined with knowledge are more important than knowledge alone. Attitude and passion are becoming more important than experience. Having an open mind and being receptive to things are very important in the evolving Corio culture. We find it essential that our people, throughout Europe, share important values and competencies and feel that they belong to a truly exciting, professional and leading company. A place where they can make a difference, where they can develop themselves and their environment. Employees should, no matter where their office is located, feel and experience that Corio is their favourite workplace.
ACTIVITIES AND RESULTS IN 2010
• In 2010 Corio employed 493 people in five countries. Ten years ago there were only 143. Recognising the need to take a more concerted and systematic approach towards Human Resource management and talent management, Corio appointed a Group Director of Human Resources in 2010 with the mandate of applying best international practice and developing human resources in a consistent way across the six Corio home countries.
• In 2010 Corio developed a HR Performance Management system as part of our general approach to managing people and therefore a cornerstone of Corio’s leadership. The Performance Management system consists of four steps: business planning & alignment, target setting, development and an end-year review. It is aimed at creating transparency, clarity and commitment to the development of our employees. In 2011 all managers and employees throughout Corio will be trained in each step of the Performance Management process.
• We launched our brand passport, consisting of a clear statement of our mission, vision, culture and core values, in 2009. In 2010 each country organised activities and workshops to make the brand passport and the values we stand for their own. We believe it is of utmost importance that leadership embraces our values and we incorporated it in HR profiles.
• Although our business is still mainly conceived as a ‘men’s business’, our retail customers are mainly women. We consider it highly important that Corio’s workforce reflects this and in fact approximately 60% of our employees are women. The number of male managers currently outweighs female managers, which has our attention. In 2010 our Management Board included a female member for the first time.
3 3
IN THIS CHAPTER
Human Resource Management Composition workforce (metrics 2010) Employee satisfaction
Skills and knowledge
WWW.CORIO-EU.COM/CSR.HTML
Other aspects of composition workforce (metrics 2008-2010)HR policy Code of Conduct
NOT REPORTED
We do not cover topics that:
• have already been addressed in previous reports
• we cannot influence through management • do not significantly impact our business
C O R I O C S R R E P O R T 2 0 1 0
3 4
As part of its ongoing efforts to strengthen trust between employees and management, a key element to creating great workplace relationships, Corio partnered with the Great Place to Work® Institute Netherlands in 2010.
The Great Place to Work Institute is a US-based research and management consultancy with international offices and affiliates around the world. The Institute helps organisations create cultures where trust flourishes, providing them with a benchmark and information about the best practices of the best ‘great place to work companies’. Studies on the peculiarities of best workplaces show that:
• Trust-based relationships are at the heart of every great workplace
• The business benefits of a great workplaces are measurable
• Better workplaces lead to a better society Each year the Great Place to Work Institute draws up the “List of Best Places to Work” that represent companies in 40 countries around the world surveying over 1.5 million employees.
CORIO NEDERLAND
Corio Nederland conducted an employee survey that covered such areas as credibility, respect, fairness, pride, and camaraderie. Corio began addressing what it anticipated would be areas for improvement even before the survey was completed. We initiated a culture change programme where all employees participated and chose 10 key topic areas that they wanted Corio to address. One of the results of these working groups was the creation of the Corio Academy: a clearinghouse of knowledge where employees can learn more about all the aspects of the business. Another of these working groups helped design our new head office with an open-space character, on top of one of our shopping centres.
CORIO ITALIA
Corio Italia was ranked 34th among best
Italian workplaces as a result of a Great Place to Work survey in 2010. More than 100 companies were evaluated.
The idea was triggered by the launch of the Brand Passport in 2009, which made Corio Italia think about who we are, how we act and what identifies and distinguishes us most, both as a company and as a team of people sharing the same values. It led to a re-design of our whole approach to Human Resources and the start of discussions and trainings addressing creativity, teamwork and promotingthe sharing of knowledge between the various centre management teams. The time had come to raise the bar and compare our practices with those of the best Italian workplaces, both for benchmarking purposes and to get an external evaluation of our practices.
CORIO NEDERLAND AND CORIO ITALIA CONDUCT EMPLOYEE
SATISFACTION SURVEYS
OUR GOALS
3 5
EMPLOYEE TURNOVER (%)
2008 female 2008 male 2009 female 2009 male 2010 female 2010 male 2008 female 2008 male 2009 female 2009 male 2010 female 2010 male 20 15 10 5Implement the performance management system
throughout the company, including CSR-relevant
targets.
Start leadership programme for Corio management.
Measure employee satisfaction in every Business Unit
by means of a bi-annual survey.
Relevant targets to reach these goals are included in appendix A of this report and online on www.corio-eu.com/csr.html
TOTAL ABSENTEEISM (%)
GENDER DIVERSITY: FEMALE AND MALE IN
MANAGEMENT POSITIONS (%)
80 70 60 50 40 30 20 10Corio N.V. Netherlands France Italy Spain Turkey
493
Total employees in 2010 excluding Germany
55/45
Female/male ratio (%) 2010 for total company
2008 2009 2010 5 4 3 2 1SUSTAINABILITY IN OUR
OPERATIONS
C O R I O C S R R E P O R T 2 0 1 0