CORPORATE SOCIAL RESPONSIBILITY REPORT

Transcription

1 CORPORATE SOCIAL RESPONSIBILITY REPORT 2011

2 Contents Our Approach to Corporate Social Responsibility Embedding CSR at the Heart of Our Business Tenants and Customers Community and Economic Development Labour Conditions and the Supply Chain Resource Efficiency Partnerships and Stakeholder Engagement Page

3 OUR APPROACH TO CORPORATE SOCIAL RESPONSIBILITY 3

4 INTERVIEW WITH THE CEO CSR IS FORMALISED AND BECOMING PART OF OUR DNA You have been heavily involved in our formal Corporate Social Responsibility (CSR) programme from the start. From your perspective, why is CSR so important to Majid Al Futtaim Properties? Our company was developed based upon an unparalleled commitment to economic and social development across the Middle East and North Africa region. With every mall, hotel, villa, office or even district we build, there is a genuine desire to bring prosperity, excitement and jobs to our customers and communities. This has always been true for Majid Al Futtaim Properties and is certainly true as we look to the future. Our region is facing major social and environmental changes and a responsible business must look to drive growth that is economically efficient, socially fair and environmentally sustainable. That is why Corporate Social Responsibility, or CSR, is so important to Majid Al Futtaim Properties. Ultimately, it contributes to our long-term success. Peter Walichnowski Chief Executive Officer Ibrahim Al Zubi Head of CSR OUR APPROACH TO CORPORATE SOCIAL RESPONSIBILITY 4

5 How has CSR evolved since the formation of the CSR strategy in 2010? Prior to 2010 passionate staff were making a difference through lots of informal initiatives. Now, CSR is formalised and becoming part of our DNA. For example, we have hired Ibrahim Al-Zu bi as Head of CSR, with responsibility for engaging stakeholders in our CSR programme and embedding the strategy throughout the business divisions. We have a defined CSR governance structure, champions are recognised and rewarded for their activities, and one executive board member s renumeration was linked to CSR performance in Our formal annual cycle of targets and data collection enables us to understand the scale of our impact on society and the environment. Where do you focus your efforts? We focus our efforts in five areas of material impact, identified through stakeholder engagement and a detailed risk review. LABOUR CONDITIONS AND THE SUPPLY CHAIN RESOURCE EFFICIENCY COMMUNITY AND ECONOMIC DEVELOPMENT EMPLOYEES CUSTOMERS AND TENANTS OUR APPROACH TO CORPORATE SOCIAL RESPONSIBILITY 5

6 What were Majid Al Futtaim Properties greatest CSR successes in 2011? I am pleased to say that we achieved 78% of our 2011 targets. I am particularly proud of the improvement in accommodation for workers at our properties and developments, achieved through labour accommodation audits aligned to international human rights standards, Deira City Center s Go Red for Women heart health screening project, and the launch of the Majid Al Futtaim Star Rating system for sustainable retail fit-outs. 78% 14 Targets 5% 1 Target 17% 3 Targets What were the greatest CSR challenges in 2011? Health and Safety remain challenges in our countries of operation, as local standards are well below global best practice. We were not able to meet our ambitious target to reduce the Accident Frequency Rate by 15%. Our 2010 AFR was 3.72 and 2011 AFR rose to We remain committed to improving outcomes for the workers on our sites through regular health and safety training, backed up by bi-annual audits. During 2011, 65 Project Managers and Retail Design Delivery staff attended health and safety training seminars. Staff were trained in basic principles of Workplace Health and Safety and also the Majid Al Futtaim Properties procedures for improving health and safety on our construction sites. What are the key changes you would like to see in the coming year? In the coming year, I would like to see everybody in Majid Al Futtaim Properties understand exactly what CSR means to their role. For example, I would like our leasing teams to understand how environmental sustainability can be improved through engagement with our tenants, and I would like our project developers to see how community engagement can add value to major developments. This means that our internal training programme is really important to me in The other element that I would like to see in 2012 is an increased ownership and understanding of CSR data and what it means for the business at all levels within Majid Al Futtaim Properties. We have challenging energy, water and waste targets to meet and it is a collective endeavour to meet those targets. Details of all our 2012 targets may be found throughout this report. Achieved In Progress Not Achieved *Two 2011 targets were deemed not applicable OUR APPROACH TO CORPORATE SOCIAL RESPONSIBILITY 6

7 What value does CSR bring to Majid Al Futtaim Properties? Where do you see Majid Al Futtaim Properties positioned in 3 years time? What role does CSR have in that? There is a lot of value from CSR. When we are developing and constructing in a new market, governments and communities definitely have expectations for Majid Al Futtaim Properties and CSR helps us meet those expectations. Governments want us to be a trusted partner for their economic development and to bring an international standard to the way buildings are designed and operated. Both our customers and our tenants want us to make sustainability easy for them for example, to help them achieve more efficient stores through Majid Al Futtaim Properties Green Star Rating system for sustainable retail fitouts. Part of the value of CSR is that these customers and tenants will remain loyal to us if we innovate with them. And finally, we believe that CSR activities can enhance our profitability as a business. We currently spend AED 120 million on electricity and water in our buildings and we are conscious that prices will rise over time the more efficiently we run our malls, offices and hotels, the more money we can save. It s as simple as that. I see Majid Al Futtaim Properties as an international leader and influencer in the real estate investment, management and development industry. International leadership will require a robust CSR strategy and clear performance improvements. Openly sharing both the successes and the challenges of our CSR journey is part of the broader influence we can have. I am proud of our relationships with CSR partners and our new membership in the Global Real Estate Sustainability Benchmark. OUR APPROACH TO CORPORATE SOCIAL RESPONSIBILITY 7

8 EMBEDDING CSR AT THE HEART OF OUR BUSINESS 8

9 CSR GOVERNANCE STRUCTURE Our CSR strategy s success depends on all Majid Al Futtaim Properties staff sharing an understanding of the objectives and business importance of CSR. We have created a CSR governance structure that distributes responsibility and incentives throughout all levels of Majid Al Futtaim Properties. We expect and support all employees to incorporate our CSR objectives into day-to-day decision making. BOARD Executive Oversight and Strategy CSR STEERING COMMITEE (Delegation of Authority from Executive Board) Executive Oversight and Strategy CSR ADVISORY COMMITTEE Strategy and Accountability NATIONAL CSR COMMITTEES Local Capacity Building CSR CHAMPIONS Delivery Responsibility HEAD OF CSR - Support and Strategic oversight EMBEDDING CSR AT THE HEART OF OUR BUSINESS 9

10 2011 Target Progress Execute the CSR communications plan for the following stakeholder groups: employees, tenants, suppliers, the owner and Board, customers, joint venture partners, and other stakeholder groups Produce quarterly management reports for each CSR impact area (tenants and customers, community and economic development, labour conditions and supply chain, resource efficiency) detailing performance over the last quarter and narrative on performance trends Partially Achieved Achieved Audit the benchmark agreed KPI s for all areas of CSR, aligned to international best practice Achieved Produce the annual CSR document for 2011 results to be issued in Q Achieved 2012 Targets Scope / Asset Class Perform CSR training at corporate, asset and country levels for 150 staff members All Undertake the following actions with regards to the Sustainability Implementation Plan for Developments: - Integrate it within the development gateway procedures for all projects - Pilot full roll out at 3 projects (Mall of the Emirates expansion, Mall of Egypt and Khams Shamat) - Develop guidance for best practice community consultation and engagement to be included in the sustainability implementation plan All EMBEDDING CSR AT THE HEART OF OUR BUSINESS 10

11 Our Performance Motivated, knowledgeable and happy employees are central to embedding CSR at the heart of how we do business. In 2011, we launched a comprehensive plan of training and engagement for staff members, including quarterly CSR breakfasts and a target to train more than 150 staff in CSR, green building and sustainability by the end of A new CSR governance structure distributes responsibility throughout the organisation, including all departments and regions in the management of CSR risks and opportunities. Looking Ahead Embedding a clear understanding of, and responsibility for, CSR across our business is a key focus area for Majid Al Futtaim Properties. Looking ahead we are committed to ensuring: 1. Every employee understands the why and what of CSR 2. Organisational leaders act as role models of expected behaviour 3. All employees are trained on how to incorporate CSR into their jobs 4. Incentives (formal and informal) are adjusted to include CSR achievements 5. In-house LEED and BREEAM green building assessors trained and active Sharing Best Practice Over Breakfast The Hotels business unit welcomed over 250 staff members to eat, laugh and learn about workplace well-being at our first CSR breakfast. Rapidly becoming the most popular and event, the CSR breakfasts are sponsored by a different department each quarter. Our CSR champions volunteer to organise the events and it is an opportunity to share their CSR efforts with the whole company. Environment and well-being feature every time, and future breakfasts will highlight important topics such as recycling, health and safety, and healthy heart. EMBEDDING CSR AT THE HEART OF OUR BUSINESS 11

12 TENANTS AND CUSTOMERS 12

13 2011 Target Progress Carry out the following activities with tenants: a) Launch Tenant Fit Out Guide, incorporating Majid Al Futtaim Properties sustainable fit out Star Rating System and accessibility criteria b) Engage with top ten retailer groups on sustainable fit-outs c) Achieve one exemplar sustainable fit-out Incorporate CSR questions within tenant survey to gauge tenant perspectives on CSR Partially Achieved Achieved 100% of lease renewals to agree to green lease clauses. Achieved Include CSR on agenda for all Mall Annual General Meetings Achieved Implement recommendations from 2010 accessibility audit on assets. Partially Achieved Increase proportion of customers aware of Majid Al Futtaim Properties s CSR activities in relation to 2010 customer survey results Not Applicable TENANTS AND CUSTOMERS 13

14 2012 Targets Scope / Asset Class Ensure all mall tenants are aware of the Majid Al Futtaim Green Star Rating System and communicate best practice results to the tenants Undertake the following tenant engagement initiatives: - Develop and launch an awards programme for tenant sustainability efforts including Fujairah mall ( to be awarded in 2013) - Include CSR on the agenda for all mall Annual General Meetings Develop a CSR page for the tenant operations manual and incorporate this before the end of 2012 Malls Malls Malls Include accessibility criteria within the tenant health and safety audit procedure Malls Undertake the following activities in relation to customer engagement - Develop marketing materials to display on LCD screens in malls that communicate and engage visitors about how to live sustainably within their communities and homes Malls TENANTS AND CUSTOMERS 14

15 Our Performance Majid Al Futtaim Properties biggest environmental and social impacts come from the operation of our buildings; largely influenced by the way they are used by our tenants and customers. We have a wide variety of tenants and customers. Our tenants are predominantly the local franchises of international brands, while our customers are those who visit our hotels and malls and purchase our villas and apartments. We are committed to working with our tenants to improve their impacts and engaging with our customers on key CSR issues. We aim to raise standards over time, for example through improving the sustainability of tenant retail fit-outs and putting targeted customer CSR messages on mall LED screens. Our work in 2011 focused on raising tenant awareness of CSR issues and engaging them in Majid Al Futtaim Properties CSR efforts. Key Achievements 100% of leases signed after 31 August 2011 will include green clauses, contingent on no tenant refusals. The estimated value of green leases signed since 31 August 2011 is AED 206 million. Green Star Rating System for Sustainable Retail Fitouts. Looking Ahead Understanding and influencing customer and tenant behaviour remained a challenge during During 2012, we will be undertaking targeted customer engagement on key CSR issues, accompanied by further extensive roll-out of our Green Star Rating System. Sustainable Fitouts Majid Al Futtaim Properties launched a Green Star Rating System for Sustainable Retail Fitouts. Our first partner to try the system was the Al Tayer Group, which took on the challenge at its GAP store in Bahrain City Centre. The Four Star Rated Gap re-used 40% of the existing store fittings, which reduced waste to landfill, resource use, and costs. Al Tayer s achievement has paved the way for all tenant fit-outs in Fujairah City Centre to be assessed, and the majority of renovations in We plan to improve our Star Rating System continuously, using lessons from our retail partners experiences to improve the sustainability of retail fit-outs across MENAT. TENANTS AND CUSTOMERS 15

16 COMMUNITY AND ECONOMIC DEVELOPMENT 16

17 2011 Target Progress Incorporate community and economic development objectives on key Majid Al Futtaim Properties CSR issues informed by the 2010 Customer Survey Increase UAE National employment in Majid Al Futtaim Properties by 2% over 2010 (15%). For all other countries where Majid Al Futtaim Properties operates, continue promoting new job opportunities to local nationals Develop a programme in collaboration with the Middle East Council for Shopping Centres to give retail skills accreditation to GCC (non Majid Al Futtaim Properties employees), including those from under privileged backgrounds, with rollout to other countries in 2012 Increase total training per head provided to Majid Al Futtaim Properties local employees compared to 2010 performance Achieved Achieved Achieved Achieved Expand the existing summer internship programme to Majid Al Futtaim Properties offices in Oman, Bahrain and Egypt Not Applicable COMMUNITY AND ECONOMIC DEVELOPMENT 17

18 2012 Targets Scope / Asset Class Form a stakeholder panel for Mall of the Emirates and Dubai Community and Theatre Arts Centre (DUCTAC) Malls Increase community investment by 5% (excluding DUCTAC) All Undertake the following employment and training activities: - Hold a local employment fair to promote job opportunities for staff and retailers at one asset - Introductory Training Programme Creating the Vision and operating a Shopping Centre in collaboration with the ICSC Maintain momentum behind the localisation programme including an employment rate of 17% UAE nationals Introduce the formal Majid Al Futtaim Properties summer internship programme and run the programme in all countries of operation Increase total training per head provided to Majid Al Futtaim Properties local employees by 15% compared to 2011 performance Communicate Best Practice community initiatives across teams using the 2011 CSR report, CSR newsletter and Tawasul Select a key CSR issue to engage customers and staff across all assets throughout 2012 Malls All Malls/Hotels All All Malls/ Hotels/ Offices COMMUNITY AND ECONOMIC DEVELOPMENT 18

19 Our Performance Our buildings are often located at the heart of a community and have a key role to play in supporting well-being and economic development. We have both the responsibility and the opportunity to support these communities through our operations. Community and economic development efforts during 2011 focused on internal capacity building through training and community investment. A variety of successful community activities included Denim Day, and Ramadan Charity Drive. On Denim Day we collected used jeans for redistribution to humanitarian causes in the UAE and region, while the Ramadan Charity Drive saw shoppers and retailers donate everyday items to local and underprivileged communities. Key Achievements Training hours for local staff tripled from 3.5 to 11.6 hours per person (normalised average). Employment of UAE nationals increased, from15% to 17%. Community investment was AED 6.34 million, or 0.3% of EBITDA. PR value from community activities was over AED 8.6 million. Looking Ahead We are very proud to adopt Healthy Heart as our key CSR issue for customer engagement in All our mall managers will work together to decrease unnecessary illness and death from heart disease for the women in our communities. COMMUNITY AND ECONOMIC DEVELOPMENT 19

20 Bringing Home Good Ideas From Abroad In Summer 2011, four Majid Al Futtaim Properties managers travelled from Dubai to Paris to participate in an 8 week exchange program with the major European Mall Developer and Manager, Unibail Rodamco. During this time they shadowed shopping centre managers and visited a variety of properties, learning about finance, procurement, asset management, sustainability, operations and leasing departments. This insight into Unibail Rodamco allowed the teams to understand and share best practice between the two companies. We were struck by how similar our businesses really are, despite our different markets, explains Fareed. The best practices we take away from this exchange will serve both companies well, concludes Fuad Al Najjar. Go Red For Women Heart Campaign Heart disease is responsible for 25% percent of the deaths of all women within the United Arab Emirates. Majid Al Futtaim Properties is working hard to help women manage their heart health. Over two weekends at Deira City Centre, nurses and cardiologists from Dubai Hospital donated their time to test the heart heath of 1,340 women. Body mass index, blood pressure, blood sugar and cholesterol were tested, giving women the opportunity to understand, manage and ultimately improve their heart health. The free clinic was a partnership between Deira City Centre and the Dubai Health Authority. We are extremely proud that the Go Red for Women campaign at Deira City Centre won an ICSC Middle East Award and is running for a global cause marketing award. COMMUNITY AND ECONOMIC DEVELOPMENT 20

21 LABOUR CONDITIONS AND THE SUPPLY CHAIN 21

22 2011 Target Progress Reduce the Accident Frequency Rate (AFR) by 15% Not Achieved Conduct at least 2 health and safety and labour conditions and accommodation standards audits (where appropriate to individual countries) at every development site and asset during 2011 to target 80% compliance Achieved 2012 Targets Scope / Asset Class Conduct at least 2 health and safety audits at all developments and assets All Conduct at least 2 labour accommodation audits for developments and assets where appropriate Achieve the following in relation to health and safety: - In the UAE and Oman achieve an AFR of less than 3 for developments. - In all other countries of operation achieve an AFR of less than 4.5 for developments Perform specific engagement activities with the supply chain in our existing assets and review contractual obligations to ensure that environmental and social targets are incorporated All All All LABOUR CONDITIONS AND THE SUPPLY CHAIN 22

23 Our Performance Considerable international press has highlighted the genuine challenges in living and working conditions of labourers in the Middle East, particularly within the construction industry. Local expectations are frequently far below international best practice in our core countries of operation. Majid Al Futtaim Properties is committed to improving the health, safety, and living standards of its labourers, as a matter of human rights. Our work during the past two years is just the beginning of a long-term improvement process. Key Achievements We have made huge strides in improving the conditions of workers through audits of health and safety and labour accommodation at all relevant sites and buildings. Results of the audits were communicated to suppliers and improvement notices issued if further efforts were required to bring the site up to standard. In one instance, noncompliance contributed to the termination of a supplier contract Our 2011 accident frequency rate was Despite our efforts, we failed to achieve our ambitious goal of a 15% reduction against This resulted partly from our growing development activities in countries where health and safety standards lag behind those of Dubai. Positively, no deaths were recorded at Majid Al Futtaim Properties sites during Looking Ahead We will continue to work to improve health, safety and accommodation performance in Reflecting upon challenges experienced in 2011, we have set two separate Accident Frequency Rate (AFR) targets; one for the UAE and Oman, and one for our other countries of operation. From 2011 onwards, all our contractors and service providers will sign a compliance statement for staff treatment, accommodation and safety standards as part of their contractual arrangements. We will continue to review and improve the standards expected with the ultimate goal of them being business as usual rather than imposed. LABOUR CONDITIONS AND THE SUPPLY CHAIN 23

24 Boosting Standards During 2011, 65 Project Managers and Retail Design Delivery staff attended Health and Safety training seminars. Staff were trained in basic principles of Workplace Health and Safety and also the Majid Al Futtaim Properties procedures for improving Health and Safety on our construction Sites. The seminars were such a success that the majority of attendees requested further in-depth and specific training for Majid Al Futtaim Properties staff on Health and Safety. We are investigating how to provide additional training in After all, everybody deserves to go home after a day s work! Investing In Decent Living Space For A Happy Workforce In any business a happy worker is a more productive worker. Here at Majid Al Futtaim Properties we care about how our Contractor staff is treated and is proud to have re-defined standards for staff accommodation. Using the Dubai Municipality rules for labour accommodation as a starting point, we have set higher standards for the staff employed on our properties and audit each accommodation at least twice each year to ensure that these standards are being maintained. The success of our approach is best illustrated in the reactions from our contractors staff when visiting their accommodation. They are happy to know that the people who benefit from their hard work actually care about them. LABOUR CONDITIONS AND THE SUPPLY CHAIN 24

25 RESOURCE EFFICIENCY 25

26 2011 Target Progress Malls and offices target LEED Silver (Core + Shell) on all new developments * Hotels All Majid Al Futtaim Properties hotels managed by Accor to achieve Earthcheck Bronze certification by 2012 * Mall of the Emirates Kempinski to achieve LEED Certified by 2012 * Residential Investigate appropriate green building standards for new dwellings Implement Sustainability Implementation Plan Carry out energy and water audits of mall and office assets to identify potential improvement measures to achieve savings, including investment required and expected payback periods Achieved (hotel standards ongoing) Achieved Achieved 2012 Targets Scope / Asset Class Perform a review of the construction data available regarding energy, water and waste at Fujairah For new developments: - Malls, offices and hotels will achieve LEED Silver (Core and Shell) on all new developments as a minimum - All new residential entering concept master-planning to achieve a sustainable building standard All All RESOURCE EFFICIENCY 26

27 2012 Targets Scope / Asset Class Achieve the following for existing hotels: Hotels - All Majid Al Futtaim Properties hotels managed by ACCOR to achieve Earthcheck Bronze or ISO certification by Mall of Emirates Kempinski to achieve LEED EBOM Certified by Bahrain Kempinski to achieve LEED EBOM Certified by 2013 By the end of 2013 achieve LEED EBOM for Mirdif City Centre and Majid Al Futtaim Tower II Malls/Offices Track the implementation of the selected findings of the energy and water audits, measure their impact and share findings between assets Perform an audit of waste measurement and disposal processes across all assets and roll out a consistent, appropriate measurement approach including training/support for asset and supply chain staff where appropriate to ensure accurate measurement Investigate the partnership opportunities for deriving value from Majid Al Futtaim s waste streams and supporting the development of waste management infrastructure in the UAE All All All RESOURCE EFFICIENCY 27

28 Our Performance Majid Al Futtaim Properties recognises that it operates in a region with some of the largest environmental footprints in the world. Running efficient buildings is a great opportunity to reduce global energy and water consumption and waste generation. We have a further opportunity to reduce our future impact through the use of sustainable design standards on all our developments. We have committed to achieving sustainability standards on all new assets and are also working hard to reduce the environmental footprint of our existing assets. Looking Ahead We are continuing to focus on the achievement of our long term energy, water and waste targets. Consistent implementation and communication of sustainability standards across all developments remains a challenge. This is being addressed through the expansion of our sustainability standards target to ensure all asset classes achieve LEED Silver, or the local equivalent, and also through the roll-out of our sustainability implementation plan for developments. Key Achievements Energy and water audits of all buildings identified potential annual savings of over AED 28 million. Developed and tried a Sustainability Implementation Plan framework to be rolled out to additional developments in Triumph for the Tower II Waste Warriors The waste warriors of Majid Al Futtaim Properties Tower II have conquered, diverting 50% of waste from landfill for two consecutive years. Cleaning staff have triumphed with the support and training of Tower II Facilities Management. Together they have carefully segregated recyclable materials every night and diligently weighed them prior to collection. To minimise recycling risks, all paper is shredded to ensure that sensitive information does not leave the building. During 2012, facilities management staff will be engaging staff to improve recycling levels yet further. CSR awareness training will ensure our 2012 waste victories are even greater than this year. RESOURCE EFFICIENCY 28

29 Performance Against Long Term Targets In 2010, we set ourselves challenging 2013 efficiency targets for overall water and energy consumption and waste generation on a like-for-like basis. We believe we are on track to achieve these targets with the exception of office water consumption. However, as this accounts for just 0.002% of our overall water consumption, we are focusing our efforts predominantly on malls and hotels, which are responsible for the majority of our water use. See a full update on our progress to date below. Achieve the following reductions in water consumption, on a like-for-like basis, by the end of 2013, compared to a 2010 baseline*: Achieve the following reductions in energy consumption, on a like-for-like basis, by the end of 2013, compared to a 2010 baseline*: Achieve the following rates of diversion of waste to recycling by the end of 2013: Asset Class Target 2011 Progress Asset Class Target 2011 Progress Asset Class Target 2011 Progress Malls -15% -6% Malls -15% -7% Malls: 30% 30% 10% Offices -15% +12% Offices -10% -7% Hotels: 30% 30% 18% Hotels -15% -9% Hotels -15% -10% *Offices to be included from 2012 *These targets relate to the properties that were in operation for the full target period. Despite these like-for-like reductions, our absolute resource use has increased since 2010, due to an increase in our portfolio size. Public transparency and accountability are vital to increasing global resource efficiency, so we are pleased to provide a snapshot of our total annual energy and water consumption, waste generation and carbon emissions on the following pages. RESOURCE EFFICIENCY 29

30 2010 Absolute Carbon Footprint 503,752 tonnes CO2e Malls Hotels Offices 2011 Absolute Carbon Footprint 564,346 tonnes CO2e ABSOLUTE ENERGY CONSUMPTION (MWh) ABSOLUTE CARBON FOOTPRINT (Tonnes CO2e) Malls 572, ,281 Offices 3,822 3,562 Hotels 55,412 62,908 TOTAL 631, , Malls 455, ,842 Offices 3,134 2,921 Hotels 45,437 51,584 TOTAL 503, ,346 DATA QUALIFYING NOTES: *2010 Mall scope includes 9 Malls plus Mirdif energy data from September *2011 Mall scope includes all 10 malls *MoE extension opened in September 2010 *Deira City Centre extension opened in December 2011 *2010 and 2011 Office data includes Majid Al Futtaim Tower 2 *2010 and 2011 Hotel scope includes 6 Hotels *Dubai Pullman MoE opened in October 2010 *Dubai Ibis Al Rigga opened in March 2010 *MWh is a common language across regions but variations in the carbon intensity of grid supply can alter the picture significantly. For example, the emissions factor for Egypt is 0.46, whereas the emissions factor for UAE is *Total footprint for 2010 has been restated in order to include all assets which opened in the calendar year 2010, even if there is not a full year of consumption. This presents a true absolute footprint for operational impact. RESOURCE EFFICIENCY 30

31 2010 Absolute Water 3,330,511 m3 Malls Hotels Offices 2011 Absolute Water 3,729,079 m3 ABSOLUTE WATER CONSUMPTION (m3) Malls 2,983,239 3,300,775 Offices 1,023 1,151 Hotels 346, ,153 TOTAL 3,330,511 3,729,079 DATA QUALIFYING NOTES: *2010 Mall scope includes 9 Malls plus Mirdif energy data from September *2011 Mall scope includes all 10 malls *MoE extension opened in September 2010 *Deira City Centre extension opened in December 2011 *2010 and 2011 Office data includes Majid Al Futtaim Tower 2 *2010 and 2011 Hotel scope includes 6 Hotels *Dubai Pullman MoE opened in October 2010 *Dubai Ibis Al Rigga opened in March 2010 RESOURCE EFFICIENCY 31

32 2011 Absolute Waste 37,906 tonnes (1000 kgs) 2011 Non-Recycled 2011 Recycled ABSOLUTE WASTE GENERATION (tonnes) 2010 Recycled 2010 Non-Recycled 2011 Recycled 2011 Non-Recycled Malls 2,029 31,920 3,607 33,369 Offices Hotels No Data No Data TOTAL 2,042 31,925 3,783 34,123 DATA QUALIFYING NOTES: *2010 Mall scope includes 9 Malls *Mirdif is not included in 2010 *2011 Mall scope includes all 10 malls *MoE extension opened in September 2010 *Deira City Centre extension opened in December 2011 *2010 and 2011 Office data includes Majid Al Futtaim Tower 2 *Dubai Pullman MoE opened in October 2010 *Dubai Ibis Al Rigga opened in March 2010 *Hotel waste data is not available for 2010 therefore total absolute waste is not comparable between years *2011 Hotel scope includes 6 Hotels RESOURCE EFFICIENCY 32

33 PARTNERSHIPS AND STAKEHOLDER ENGAGEMENT 33

34 Long-term Partnerships Engaging and collaborating with stakeholders is crucial to delivering on our commitments to customers, tenants and communities. Several 2012 targets will further expand our stakeholder engagement efforts. Majid Al Futtaim Properties is committed to improving CSR standards throughout the real estate development and management industry in the Middle East and North Africa. To increase our impact, Majid Al Futtaim Properties is establishing long-term partnerships with several non-governmental organisations, including the Dubai Carbon Centre of Excellence, Emirates Green Building Council (EGBC), Sustainability Network/Dubai Chamber and the UAE Business Council for Sustainable Development. Looking Ahead In 2012 we will be focusing further on engaging with key stakeholders: Tenants and sister brands Employees Mall customers Hotel customers Residential customers Communities Suppliers Financial institutions Government Joint Venture Partners Peers NGO partners Energy Conference 2011 In the summer 2011, we held our first ever Energy Conference. Over 80 Majid Al Futtaim Properties staff, suppliers and sister brands attended. The event engaged and educated about our CSR strategy and in particular our targets to reduce our energy, water and waste footprint across all building types. PARTNERSHIPS AND STAKEHOLDER ENGAGEMENT 34

35 ADVISOR S STATEMENT For Majid Al Futtaim Properties 2011 Annual CSR Review, Jones Lang LaSalle has been involved in three main capacities undertaking an assessment of Majid Al Futtaim Properties progress against 2011 targets; providing assistance in undertaking limited data validation for the key performance indicators; and assistance with drafting content. Given that Jones Lang LaSalle is Majid Al Futtaim Properties strategic advisor on CSR, this statement does not represent an independent verification but intends to provide a third-party assessment of progress achieved during the year. Our target assessment found 78% of applicable 2011 targets to be fully achieved. Notable successes include: Incorporation of green clauses in all lease templates, recognising Majid Al Futtaim Properties environmental expectations for its stakeholders Launch of the Majid Al Futtaim Properties Green Star Rating for Sustainable Retail Fitouts at Fujairah driving behaviour change Health and safety and labour accommodation audits, improving conditions for labourers Audits of energy and water consumption at all buildings, identifying AED 28 million of potential savings per year Sustainable Implementation Plan approved, bringing the potential for consistent integration of CSR into all development projects Head of CSR appointed to coordinate CSR across the business, supported by a clear governance structure Our target assessment found 22% of applicable 2011 targets to be in progress or not achieved, with two targets deemed not applicable. On the basis of this target review, Jones Lang LaSalle considers attention should continue to be paid to the following areas in 2012: Full roll-out of the communications plan, improving stakeholder awareness of Majid Al Futtaim Properties CSR activities, as success will be increasingly dependent upon the behaviour of tenants, sister brands, suppliers and Joint Venture Partners Health and safety standards differ radically across Majid Al Futtaim Properties countries of operation. Improving standards in all regions is a long term challenge, which Majid Al Futtaim Properties should use to differentiate itself The Majid Al Futtaim Star rating system is an important tool for influencing tenants sustainability. Thorough audits and tenant feedback should be used to improve the rating system over time and to communicate lessons learned In our professional opinion, Majid Al Futtaim Properties has made rapid progress during the last two years, demonstrating an appetite for CSR across all core business activities and continuously setting stretching targets. Looking ahead, it will be important for Majid Al Futtaim Properties to maintain a focus on international standards of CSR best practice and to report transparently, in line with investor expectations. Participation in the Global Real Estate Sustainability Benchmark and publication this first annual CSR Report is a strong initial step towards this. Upstream Sustainability Services Jones Lang LaSalle PARTNERSHIPS AND STAKEHOLDER ENGAGEMENT 35

36 For more information contact P. O. Box 60811, Dubai, United Arab Emirates Tel: , Fax: