Core to corporate responsibility at Stockland is balancing the needs of our different stakeholder groups. Our key stakeholders include customers, suppliers and partners, Government, communities, shareholders and the investment community, industry and the media.

We seek to understand the interests and concerns of our stakeholders. We identify our major stakeholders as:

Governments and regulators
Federal and State Governments set the regulatory and legislative environment within which Stockland operates. We engage with Governments and regulators at Local, State and Federal levels directly and through industry associations.

Customers
Our customer groups are diverse. They include commercial, industrial and retail tenants, as well as shoppers in our retail centres. Customers also include residential purchasers. Customers are generally concerned with product quality, cost and the delivery experience. Increasingly, customers are also interested in the environmental impacts of products. Over the past year, we have engaged with our customers through surveys and direct interaction.

Suppliers
Over the past year, we procured services and products from over 4,000 suppliers. We recognise that our suppliers form an extension of our business. Through engaging with our partners we are exposed to shared risks and responsibilities – including in relation to CR&S. We’ve commenced engagement of suppliers on CR&S, whereby 10 of our top 100 suppliers have been engaged in a process designed to align CR&S values.

Communities
Our communities include those we create in our residential and retirement living developments, neighbouring residents, tenants and landowners, and the wider communities in which we operate.

Our properties create and change communities through their presence, operation and development. We embrace the community-building facet of our business and actively explore ways in which communities can be enhanced through our involvement.

Employees
We have 1,375 employees in Australia. Just over half are located in our Sydney office, with the rest spread across Australia.

Each year we undertake the ‘Our Voice’⁶ survey to understand our level of employee engagement. In our 2008 survey for example, our employees told us that they felt we were providing opportunities for personal development and growth but that we could do more to improve our work processes.



Shareholders and the investment community
We have a diverse shareholder base, including institutional and retail investors. We also engage with investment analysts, including analysts with a focus on Environmental, Social, Governance (ESG) performance.

There is growing interest among the investment community in our actions towards climate change and addressing our carbon footprint.

We engage our shareholders and analysts through our Annual General Meeting, reports and direct contact.

Media
The media includes print, radio and television. We have a media strategy that ensures that all corporate communication is thorough, consistent and appropriate.

Understanding our responsibilities to stakeholders
Over the past year, we have taken steps to improve our understanding of our stakeholders through surveys. Over the coming year, we aim to improve our response to the concerns, interests and rights of our stakeholders.



Development of our Stakeholder Engagement Framework
Over the past year, we have begun to formalise our approach to stakeholder engagement, recognising that consistent and improved practices will not only help minimise risks to projects but result in better project outcomes.

Our Stakeholder Engagement Framework now provides a clear and consistent approach to how we talk, listen and work with our stakeholders. The framework now provides a common approach to stakeholder engagement for our development and asset teams.

The framework defines a range of techniques and methods for engaging our stakeholders. It sets out the elements of a good stakeholder engagement plan including:

• Designing an engagement plan that is likely to be acceptable to stakeholders
• Keeping the engagement plan current and responsive to circumstances.

The Stakeholder Engagement Framework links into our design and construction project life cycle – the Stockland WAVE. WAVE includes site identification and acquisition, strategic planning, statutory approval, project delivery, completion, marketing and many other aspects of project management at Stockland.

In March 2008 we commenced reporting on stakeholder engagement plans on our projects to the Board and Executive Committee. We report on the number of our large projects with an active stakeholder engagement plan. We also rate the quality of the stakeholder plans. At the end of FY08, 50% of large projects had a stakeholder engagement plan in place with an average score of 2.4 out of 5.

Addressing the new framework, refreshed stakeholder engagement plans are due to be rolled-out to all retail, office and industrial developments and retail operating assets in FY09. The plans provide each project or asset team with a consistent approach for identifying and prioritising key stakeholder relationships. The plans detail the steps required for engagement with these stakeholders throughout the project. This may include a community partnership program that can be incorporated into the development.

We recognise the value of stakeholder engagement. On many projects, stakeholders will hold a range of divergent views. We aim to better understand, respond to and balance these differing views. Navigating this process is not always easy, and is more difficult on those projects where we have had a history of difficult relationships with stakeholders.

6 Administered by Towers Perrin International Survey Research (TP-ISR).