CR&S Committee Message
It gives us great pleasure to present Stockland’s 2008 CR&S Report.

We are strongly committed to being an ethical, responsible organisation. When it comes to sustainability we are very proud of what we have achieved.

This is our third CR&S Report, which, together with our 2008 Financial Report, gives an account of our environmental, social, governance and financial performance for the year.

We are strongly committed to being an ethical, responsible organisation. When it comes to sustainability we are very proud of what we have achieved.

For Stockland, corporate responsibility and sustainability is about doing the right thing – achieving the right balance and integration of environmental, social and financial dimensions.

This year our achievements were recognised with our listing on the Dow Jones Sustainability Index World (DJSI World). We have also been listed on the FTSE4Good Index and as property funds managers, we became signatories of the Investor Group on Climate Change and the United Nations Principles for Responsible Investment.

We measure and monitor our performance and progress in CR&S in many ways, guided by our CR&S Strategy. In particular, we have improved our GHG emissions reporting. Our National Australian Built Environment Rating System (NABERS) Energy average portfolio rating for our office portfolio is 2.9 stars. This has remained constant as we now include our whole portfolio for assessment.

Our long-term approach
Despite challenging economic conditions, we have not changed our view that sound corporate responsibility and sustainability policies are fundamental to our business. They are not fair-weather policies to be put aside when times are tough. Rather, we confidently believe that our approach will ensure the long-term success of our business.



Addressing climate change
Climate change is now well recognised as being a new challenge with far reaching implications. While global warming and carbon abatement create potential challenges for our business, they also present opportunities for innovation.

To tackle these issues we are committing ourselves to implementing a Climate Change Action Plan. This comprehensive plan guides our approach to minimising our carbon emissions.

Fundamental to our plan is accurate measurement of carbon emissions, and energy and water use across our business. In the past year we stepped up our use of energy efficiency measurements and achieved significant energy intensity reductions, which will deliver long-term cost benefits across our portfolios.

With our new data capture system, we are preparing to report on emissions as required under the new National Greenhouse and Energy Reporting Act 2007 (NGERA). We will continue to improve our carbon data management and reduce the intensity of emissions across our portfolios in future years.

We also address climate change by creating and managing more environmentally-sensitive developments that will be of enduring value to our customers, tenants and business partners – as well as our investors.

While our individual efforts will benefit our business and positively address environmental risks, industry-wide changes are needed to meet the challenges of climate change. We encourage our Governments to introduce complementary policies and programs that promote energy efficiency in the built environment. In particular, we have put the case forward for tax-based incentives to encourage environmentally efficient retrofitting of commercial buildings. We also support adoption by our industry of well developed rating tools and streamlined reporting requirements.

Innovative solutions
Over the past year we have adopted a range of innovative policies, programs and initiatives to embed corporate responsibility and sustainability across our business.

For example, our new Residential Sustainability Policy sets stretch targets for all our housing developments. We have also rolled out a green Retail Design and Fitout Guide for our shopping centre tenants.

We have invested resources to better understand ways to deliver more affordable housing in Australia. These initiatives are supported by our new Design and Delivery Group, that provides innovative design leadership and streamlined delivery of projects across our business.

Stakeholder engagement
This year we have focussed on understanding our stakeholders better – learning from projects where relationships with local communities have been strained. Our new stakeholder engagement approach is now integrated with our project management processes so that we can respond earlier and better to the concerns of local communities.

We are proud of the high degree of engagement of our employees and particularly the way the organisation has embraced corporate responsibility and sustainability. For the fourth year running our employee engagement score was more than 80 per cent, with our commitment to social and environmental responsibility being a major contributing factor.

In the UK, the integration of the business we acquired is now complete. Over the past year, employees from both countries have travelled to build relationships, and share knowledge and business practices. In particular, high levels of commitment to sustainability in the UK were reflected in our employee survey results. This year, our UK business is included in our report for the first time, covered in a separate section.



Raising the bar
The bar is continually being raised when it comes to corporate responsibility and sustainability and we are proud to be taking a leading role in this.

While some parts of our business have more readily embedded concepts of sustainability, others are only beginning to grapple with the risks presented by climate change. We recognise that we have more work to do as we continue to review our strategy and set goals for our organisation.

We thank all our people for the contribution they have made to strengthen our strategies and practices.

With our commitment to environmentally and socially responsible practices, our people and stakeholders can be confident we will continue to focus on doing the right thing.

Graham Bradley
Chairman

Nick Greiner
Deputy Chairman,
Chair of CR&S Board Committee

Matthew Quinn
Managing Director