A Guide to Corporate Responsibility and Sustainability ... · A Guide to CR&S Reporting in the...

A Guide to Corporate Responsibility and Sustainability Reporting in the

Canadian Real Property Sector

April 2010

A Guide to CR&S Reporting in the Canadian Real Property Sector April 2010

V 1.02 - 2010 2

About REALpac

REALpac, the Real Property Association of Canada, is Canada’s senior national real property association

whose mission is to bring together the country’s real property investment leaders to collectively influence

public policy, to educate government and the public, and to ensure stable and beneficial real estate

capital and property markets in Canada. REALpac members currently own in excess of CDN $150 Billion in

real estate assets located in the major centres across Canada and include real estate investment trusts

(REITs), publicly traded and large private companies, banks, brokerages, crown corporations, investment

dealers, life companies, and pension funds. Visit REALpac at www.realpac.ca .

Released October 2009, revised and reissued April 2010

Please direct any questions or comments to:

Carolyn Lane Vice President, Research & Communications T.: 416-642-2700 x.223 E. [email protected]

Robert Campanelli Vice President, Industry Sustainability Vice President, Marketing & Member Services T.: 416-642-2700 x.223 E. [email protected]

Real Property Association of Canada One University Avenue Suite 1410 Toronto, Ontario M5J 2P1 Canada F.: 416-642-2727 W.: www.realpac.ca The information that may be contained herein has been obtained by or compiled by REALpac from sources believed to be reliable, but no representation or warranty, express or implied, is made by REALpac, its directors, officers and staff or any other person as to its accuracy, completeness or correctness. Opinions, estimates, conclusions, or other information expressed or contained herein constitute REALpac's or the named author’s judgment as of the publication date, are subject to change without notice and are provided in good faith but without representation or warranty as aforesaid.

REALpac and its directors, officers, and staff, assume no liability for damage or loss arising from the use of information contained herein. REALpac is not providing investment, legal or tax advice. Readers are urged to consult their own professional advisors for further confirmation and further information.

http://www.realpac.ca/

http://www.realpac.ca/


V 1.02 - 2010 3

Acknowledgements

REALpac would like to thank the Property Council of Australia (www.propertyoz.com.au) for its generosity in allowing REALpac to use their draft guidelines, “A Guide to Corporate Responsibility Reporting in the Property Sector” as a template for REALpac’s Canadian version entitled, “A Guide to Corporate Responsibility and Sustainability in the Real Property Sector”.

REALpac also acknowledges the valuable contribution of the Property Council of Australia’s working group which is continuing to refine and develop these guidelines.

REALpac would also like to sincerely thank REALpac members and associates for their comments and contributions to the drafting of this document:

Giselle Gagnon, Vice President, Property Management - Bentall LP

Lachlan MacQuarrie, Vice President, Asset Management - IGRI Inc.

Rosemary Martin, Sr. Manager, Environmental Operations Corporate Real Estate - TD Securities Inc.

Darryl Neate, Director, Sustainability - Oxford Properties Group Inc.

Peter Papagiannis, Vice President - First Capital Realty Inc.

Neil Pegram, Corporate Sustainability & Responsibility Specialist - Morguard Investments Limited

Andrew Pride, Vice President, Minto Energy Management - The Minto Group

Jim Steer, Director, Sustainability Programs - First Capital Realty Inc.

Ian Stewart, Vice President, Property Management, Eastern Canada - GWL Realty Advisors Inc.

Kate Hayes, Senior Ecologist, Savanta Inc.

Reg Melanson, Head, Canadian Business and Biodiversity Secretariat

Neal Bach, Vice President, Energy Profiles Ltd.

Your feedback is welcome

If you have comments or questions relating to any of the material in this guide, please email [email protected] or [email protected] and write “Guide to CR&S Reporting” in the subject line.

mailto:[email protected]

mailto:[email protected]


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Contents

SETTING THE SCENE ............................................................................................................... 5

CORPORATE RESPONSIBILITY AND SUSTAINABILITY ................................................................ 6

INTERNATIONAL REPORTING STANDARDS .............................................................................. 7

THE PROPERTY UNIVERSE ....................................................................................................... 8

MATERIALITY ......................................................................................................................... 9

PRINCIPLES OF USE .............................................................................................................. 10

PERFORMANCE INDICATORS ................................................................................................ 11 Economic Performance ........................................................................................................ 12

ECO1: Corporate Overview ................................................................................................... 12 ECO2: Corporate Philanthropy .............................................................................................. 13

Environmental Performance ................................................................................................. 14 ENV1: Building Ratings ......................................................................................................... 14 ENV2: Energy ........................................................................................................................ 15 ENV3: Emissions .................................................................................................................... 16 ENV4: Water ......................................................................................................................... 17 ENV5: Waste ......................................................................................................................... 18 ENV6: Materials .................................................................................................................... 19 ENV7: Biodiversity & Land Use ............................................................................................. 20

Social Performance .............................................................................................................. 21 SOC2: Occupational Health & Safety .................................................................................... 22 SOC3: Training & Education .................................................................................................. 23 SOC4: Community ................................................................................................................. 24 SOC5: Human Rights ............................................................................................................. 25 SOC6: Donations, Compliance & Corruption ......................................................................... 26

APPENDIX A: GRI REPORTING – REFERENCE SHEET ................................................................ 27


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Setting the Scene

In many parts of the world, such as the UK and Australia, real property companies are leading the way in the field of corporate responsibility and sustainability (CR&S) reporting.

In Canada, however, many property companies, small and large, have yet to take on the challenge of providing greater transparency in their social, environmental, and economic practices.

Out of the 3347 corporate responsibility or sustainability reports published in 2008 and compiled on CorporateRegister.com as at August 1st 2009, only 1.73% of them were from the real estate sector (58 reports).

Within those 58 reports released by property companies, 17 were from UK based companies, 10 were from Australia based companies but only two were from Canadian property companies (SITQ Caisse de Dépôt et placement du Québec and Brookfield Properties Corporation).

This guide will help Canadian property companies understand the basic performance metrics that should be tracked and help them report their corporate responsibility performance in a more meaningful and comparable manner.

It provides a voluntary template for corporate responsibility reporting that can be customized to the needs of individual corporations while still outlining common metrics and units to be used. These common metrics and indicators will allow readers to make meaningful comparisons between reports from different companies and across industry sectors.

The metrics provided in this guide deliver a standardised approach for corporate responsibility and

sustainability reporting in the property sector that is based on the trends seen in Australia adapted to the Canadian real property sector.

The purpose of this guide is to:

1. provide a simple, entry level reporting template for property companies;

2. standardise the metrics that property companies use to report corporate responsibility; and

3. provide guidance on determining materiality in the property sector.

The guide:

defines corporate responsibility and sustainability;

sets out a conceptual framework for corporate responsibility reporting;

identifies the touchstones of a robust reporting framework;

relates the template to international reporting schemes;

explores the concept of materiality and its implications for reporting; and

outlines basic reporting metrics.

The template covers:

owners;

fund managers;

property managers;

developers;

construction contractors; and

corporations with property assets.

The template does not provide performance indicators for occupiers or tenants.

Reporting organizations are encouraged to follow the GRI Profile Disclosures provided in the GRI Reference Sheet (Appendix A) as a structure for compiling their reports. However, other formats may be chosen.


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Corporate Responsibility and Sustainability

Corporate responsibility (often also called corporate social responsibility or corporate citizenship) is the view that a corporation ought to deliver social and environmental dividends while pursuing its primary economic interests.

Corporate responsibility commitments or activities typically focus on aspects of a company‟s behaviour

(including its policies and practices) with respect to such key elements as; “health and safety, environmental protection, human rights, human resource management practices, corporate governance, community development, and consumer protection, labour protection, supplier relations, business ethics, and stakeholder rights”.1

Within the real property industry, corporate responsibility is often closely related to sustainable development, in turn defined as that which “meets the needs of the present without compromising the ability of future generations to meet their own needs”.2

In a sustainable society, corporations optimize the development of economic, social, environmental and governance capital to produce diverse community dividends in order to enhance long-term economic interest.

This should be done within a governance framework that legitimizes and renews a company‟s rights and licenses to operate.

Corporate responsibility and sustainability (CR&S) reporting is the accounting and disclosure of a corporation‟s performance in relation to these activities.

This guide provides a template for measuring and disclosing a property company‟s performance in the course of delivering sustainable outcomes.

A simple portrayal of the links between a corporation‟s public activities and its reporting obligations is

shown below.

Figure 1: Community Value Chain

1 Industry Canada, CSR website, http://www.ic.gc.ca/eic/site/csr-rse.nsf/eng/h_rs00094.html, accessed 2 October 2009. 2 From the “Brundtland Report” (1987), as cited in REALpac’s “National Corporate Responsibility and Sustainability Guidelines” (2007)

1

Rights, Licenses &

Obligations

2

Assets/Capital

social natural economic governance

3

Dividends

4

Accounting

& Reporting

Corporate

Commitments

Corporate

Performance

Transparency

Credibility,

Legitimacy

& Renewal of Rights


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International Reporting Standards

There are many different international CR&S reporting programs relevant to the property sector.

The leading schemes are:

Dow Jones Sustainability Indexes (DJSI) – these indices provide asset managers with

benchmarks to manage sustainability portfolios. The Corporate Sustainability Assessment Questionnaire used for evaluation includes sub-sections such as:

o corporate governance, risk and crisis management, codes of conduct/compliance/corruption and bribery, customer relationship management, brand management, privacy protection;

o environmental reporting, environmental policy/management system, operational eco-efficiency;

o labour practice indicators, human capital development, talent attraction and retention, corporate citizenship/philanthropy, social reporting, standards for suppliers, and stakeholder engagement.

FTSE4Good – this series measures the performance of companies that meet globally recognised corporate responsibility standards, to facilitate investment in them. It focuses primarily on the creation of responsible investment products and rates companies on their policies, management, and reporting of the following:

o environmental criteria; o social and stakeholder criteria; o human rights criteria; o supply chain labour standards criteria; and o countering bribery criteria.

Global Reporting Initiative (GRI) – the GRI Reporting Framework is a general outline for reporting on corporate social, environmental, and economic performance. It is designed to be applicable for companies of all sizes, sectors, and locations. GRI is currently developing a construction and real estate sector supplement (“CRESS”) for their guidelines and REALpac is a part of this GRI CRESS project. GRI has developed corporate responsibility reporting metrics and practices and a summary of their framework and guidelines is included in Appendix A.

UNEP Finance Initiative (UNEP FI) – to date, the UNEP FI (and its property working group) has focussed on socially responsible investment. It recently produced a set of case studies on responsible property investing divided into 10 elements:

o energy conservation; o environmental protection; o voluntary certifications; o public transport oriented developments;

o urban revitalisation and adaptability; o health and safety; o worker well being; o corporate citizenship; o social equity and community development; and o local citizenship.

UNEP Sustainable Buildings & Climate Initiative (UNEP SBCI) – a new item in the SBCI business plan is to “develop global benchmarks for sustainable buildings and construction.”

This voluntary guide draws on the thinking contained in these global standards.

The metrics outlined in this guide refer to specific elements of international standards, where relevant.


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The Property Universe

The property universe is divided into five spheres of activity that may operate within a corporation: ownership, funds management, property management, development, and construction contracting.

Many Canadian companies operate across all five spheres. Consequently, this guide proposes an integrated set of corporate responsibility reporting accounts and metrics that covers each area of activity.

It notes those cases where reporting metrics relate to a discrete sphere of activity.

Figure 2: The Five Spheres of Property Activity

Ownership Funds

Management

Property Management

Development

Construction

Contracting

Corporation


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Materiality

How do we define the property sector and the scope of corporate responsibility reporting activities?

In short, how do we identify the material metrics that meaningfully account for corporate responsibility performance?

The Concept of Materiality

The Global Reporting Initiative (GRI) provides the following perspective on the concept of materiality:

The concept of materiality is also used to identify information that, if omitted or misstated, would

misrepresent reported information to the report‟s intended users (stakeholders).

The information that is reported under each indicator (e.g. different energy types) may vary based on the significance of that information to the company‟s overall results and if omitting it would result in discrepancies that would adversely affect its stakeholders, then that information should be reported and be considered material.

Given the complex nature of this exercise, materiality can be assessed in terms of the following criteria:

generic issues/impacts – those that have been recognised as important to society but do not affect, or aren‟t affected directly, by a company‟s operations;

value chain issues/impacts – those that are significantly affected by the company‟s operations in the ordinary course of business; and

competitive context issues/impacts – those that significantly affect the underlying drivers of competitiveness in the places the company operates.3

It is important to note that boundaries for materiality will differ for individual companies. It is the individual company‟s responsibility to determine its relevant areas of materiality.

Companies should also consider engaging with stakeholders to determine their issues, impacts and thresholds.

3 Michael E. Porter and Mark R. Kramer, “The Link Between Competitive Advantage and Corporate Responsibility,” Harvard Business Review (December 2006).

The information in a report should cover topics and indicators that reflect the organization‟s significant economic, environmental, and social impacts, or that would substantively influence the assessments and decisions of stakeholders.


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Principles of Use

1. This guide applies to all property assets, except infrastructure (e.g. rail/road, energy, and exclusions may occur where these projects include built environment e.g. transport hubs).

2. This guide is voluntary. It is not a rating tool and REALpac will not publicly state whether companies comply with the performance indicators or provide advice on the use of the template in individual circumstances.

3. This guide provides performance metrics only and does not claim to summarize or outline the entire CR&S reporting process or report content. Organizations should refer to other Reporting Standards (e.g. GRI, Appendix A) to gain an understanding of general reporting principles, including:

a. defining report content - materiality, stakeholders, context, and completeness; b. defining report quality - balance, comparability, accuracy, timeliness, clarity, and

reliability; and c. setting report boundaries.

4. The guide provides indicators for different spheres of company operations – it does not attempt to cover every performance criteria nominated by other international reporting standards. See International Reporting Standards, above, for the most common Reporting Standards.

5. Companies choosing to report on any of the indicators are advised to use the metrics provided.

6. When applying the metrics users need to exercise their judgement rather than rely on hard rules or „tick the box‟ rating systems.

7. This guide does not cover economic metrics covered by international financial reporting standards.

8. This guide does not identify the legal obligations and reporting responsibilities of a company, the document assumes that all companies comply with applicable Canadian legislation.

9. Users of this document should note that:

a. the applicability or relevance of the indicators to different spheres of activity is identified at the top right hand corner of each page;

b. companies should decide which of the metrics they wish to report against – there is no expectation that all must be used;

c. additional guidance or interpretation is provided in the notes section at the bottom of the page; and

d. for those who wish to apply their results to other reporting schemes, equivalent indicators are listed on the bottom left of each page.

10. Reporting organizations are encouraged to report performance for more than one period/year and to set targets in each category or for each indicator (where applicable) to which performance can be compared.

11. Reporting organizations are encouraged to follow the GRI Profile Disclosures provided in Appendix A as structure for compiling their reports. However, other formats may be chosen.

12. Companies should consider seeking independent assurance before making statements about their performance.


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Performance Indicators

Environmental Performance

ENV1 Building Ratings ..14

ENV2 Energy ..15

ENV3 Emissions ..16

ENV4 Water ..17

ENV5 Waste ..18

ENV6 Materials ..19

ENV7 Biodiversity &

Land Use

..20

Social Performance

SOC1 Employment ..21

SOC2 Occupational Health

& Safety

..22

SOC3 Training & Education ..23

SOC4 Community ..24

SOC5 Human Rights ..25

SOC6 Donations,

Compliance &

Corruption

..26

Economic Performance

ECO1 Corporate Overview ..12

ECO2 Corporate Philanthropy ..13


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Economic Performance

ECO1: Corporate Overview A corporate responsibility & sustainability report is a reflection of the type of business a corporation engages as well as the overall strategy of the company. Long-term viability is also related to corporate strategy and financial stability.

The inclusion of key financial metrics in the CR&S report gives the reader a greater understanding of the business activities and the organization‟s financial health.

A description of the industry category, main business activities, asset class, geographic distribution, and corporate ownership structure provides a general overview of the organization.

Metrics

Corporate overview Explanation (Text)

Financial metrics As appropriate

Links or guidance to Annual Reports or corporate websites Explanation (Text)

Notes:

Many economic performance indicators are currently covered by the requirements of the Canadian Securities Administrators (CSA) and provincial regulatory bodies, and as a result, are not included in this template.

Examples of financial metrics that can be included:

revenues (by country, property type, or business activity); total capitalization; total assets; operating costs(by country, property type, or business

activity); retained earnings; benefit plan obligations; financial assistance from the government; and financial implications of environmental impacts and climate

change.

Companies should provide guidance for locating corporate economic indicators (e.g. annual reports and websites).

ECO

1 :

CO

RP

OR

ATE

OV

ER

VIEW

Reporting Equivalents

GRI EC1, EC2, EC3, EC4

DJSI None

FTSE4GOOD None

Relevant for:

Owners

Fund Managers

Property Managers

Developers

Construction Contractors

Corporations


V 1.02 - 2010 13

ECO2: Corporate Philanthropy A company‟s economic performance covers more than its statement of financial accounts.

Corporate responsibility requires a company to identify its economic contribution on a broader community basis.

This is largely achieved by recording the services and investments provided primarily for public benefit through commercial, in-kind, or pro bono engagement.

Metrics

Cash contributions Total ($)

% of pre-tax profit

In kind/other contribution Total ($)

Explanation (Text)

Employee time contributed Total (hours)

Note:

Companies that report against the London Benchmarking Group4 guidelines could provide that summary as an alternative to the above metrics.

In-kind and employee time contributions should be at-cost and during company time.

Contributions should be grouped by receiving organization type and activity if not individually named and described. For example:

International organizations: o Unicef = $$ o World Wildlife Fund = $

National organizations: o Cultural groups = $$ o Arts programs = $

Community organizations: o Educational programs = $$ o Food Banks = $ o Youth initiatives = $$

4 The London Benchmarking Group (LBG) is a member-driven organization where companies work together to standardize global measures of corporate community investments. More information can be found at http://www.lbg-online.net/lbg


GRI EC1, EC8

DJSI Corporate Citizenship/ Philanthropy

FTSE4GOOD Social & Stakeholder Criteria

Relevant for:

Owners

Fund Managers

Property Managers

Developers


Corporations

ECO

2 :

CO

RP

OR

ATE

PH

ILA

NTH

RO

PY


V 1.02 - 2010 14

Environmental Performance

ENV1: Building Ratings

The property sector is increasingly using rating tools to measure the environmental performance of buildings.

These allow owners to compare their buildings and measure improvements in performance.

Metrics

Type of rating system(s)/tool(s) used (e.g. LEED, BOMA BESt, ENERGY STAR)

Name(s)

Number of buildings rated Total

Proportion of portfolio rated (%) by number

Number of buildings in each rating level Total by level and property type

Indoor comfort and indoor environment quality management

Explanation (Text)

Notes:

Where property owners have gone to the trouble to rate their buildings, they should report the results.

Building ratings should be third-party certified.

Where a company has multinational operations, building ratings should be split by country.

Relevant for:

Owners

Fund Managers

Property Managers

Developers


Corporations


GRI None

DJSI Environment Policy/ Management System

FTSE4GOOD Environmental Criteria

ENV1

: B

UILD

IN

G R

ATIN

GS


V 1.02 - 2010 15

ENV2: Energy

This indicator seeks to measure a corporation‟s use and conservation of energy.

Metrics

Energy used Absolute (ekWh)

Intensity (ekWh/m2 or ekWh/ft2)

By asset type (ekWh)

Intensity by asset type (ekWh/m2 or ekWh/ft2)

By fuel source (ekWh)

Energy saved

(compared to previous year or reporting period)

Absolute (ekWh)

Percent (%)

Intensity (ekWh/m2 or ekWh/ft2)

By asset type (% and ekWh)

By fuel source (% and ekWh)

Initiatives undertaken (programs in place) Explanation (Text)

Incorporation of energy efficient design Explanation (Text)

Renewable energy sources/technologies Explanation (Text)

Notes: Only the energy used by an organization‟s activities and in all building areas, except if sub-metered and paid directly by the tenant, should be recorded.

If a company wishes to report on their tenant energy use, this should be recorded separately.

If a company operates over differing spheres of business activity, consider splitting the reporting for each sphere.

Where a company has multinational operations, energy use should be split by country.

Report should indicate methodology used for recording energy use/savings for assets with only partial year ownership.

Definition: ekWh - Equivalent energy in kilowatt-hours for each fuel source


GRI EN3, EN4, EN5, EN6, EN7

DJSI Operational Eco-Efficiency


ENV

2 :

EN

ERG

Y

Relevant for:

Owners

Fund Managers

Property Managers

Developers


Corporations


V 1.02 - 2010 16

Relevant for:

Owners

Fund Managers

Property Managers

Developers


Corporations

ENV3: Emissions

Climate change is widely recognized as the most significant environmental issue facing the globe.

The commercial building sector alone account for 13% of Canada‟s total greenhouse gas emissions.5

To ensure that the property sector is contributing to greenhouse gas abatement, companies should identify and record their carbon footprints and footprint reduction.

Metrics

Greenhouse gas emissions Absolute (tCO2-e)

Intensity (tCO2-e/100m2 or tCO2-e/1000ft2)

By emissions source (tCO2-e):

Total scope 1 emissions Total scope 2 emissions Total scope 3 emissions

Emissions abated against last year Absolute (tCO2-e)

Percent abated (%)

Intensity (tCO2-e/100m2 or tCO2-e/1000ft2)

By emissions source (scope)(% and tCO2-e)

Initiatives undertaken (programs in place) Explanation (text)

Notes: Only the emissions produced by an organization‟s activities and in all building areas, except if sub-metered and paid directly by the tenant, should be recorded.

If a company wishes to report on their tenant emissions, this should

be recorded separately.

Reporting boundaries for greenhouse gas emissions should be highlighted from the outset. Report should indicate methodology used for recording emissions for assets with only partial year ownership.

Where a company has multinational operations, emissions should be split by country.

Examples of protocols and initiatives for emissions measurement and reduction include ISO 14064 and the Greenhouse Gas Protocol Initiative.

If a company wishes to expand their reporting to include other significant air emissions, such as nitrous oxides (NOx), sulphur oxides (SOx), and ozone depleting substances, this should be recorded separately.

Definitions: tCO2-e- tonnes of CO2-equivalent emissions

5 From the NRTEE and SDTC report, “Geared for Change, Energy Efficiency in Canada’s Commercial Building Sector” (2009), which can be found at http://nrtee-trnee.ca/eng/issues/programs/energy-commercial-buildings/energy-commercial-buildings.php


GRI EN16, EN17, EN19



ENV

3 :

EM

ISSI

ON

S


V 1.02 - 2010 17

ENV4: Water

This indicator seeks to measure a corporation‟s use and conservation of water.

Metrics

Water used Absolute (m3 or ft3)

Intensity (litres/ft2 or m3/m2)

By asset type (m3 or ft3)

By source (m3 or ft3)

Water saved

(compared to previous year or reporting period)

Absolute (m3 or ft3)

Percent (%)

Intensity (litres/ft2 or m3/m2)

By asset type (% and m3 or ft3)

Initiatives undertaken (programs in place) Explanation (Text)

Alternative water source initiatives undertaken Explanation (Text)

Notes: If a company wishes to report on their tenant water use, this should be recorded separately.

Where a company has multinational operations, water use should be split by country.

Report should indicate methodology used for recording water use/savings for assets with only partial year ownership.

Definitions: Measuring “by source” relates to the amount of water drawn from:

potable municipal water; rainwater collection; well water; grey water recycling (onsite and/or offsite); black water recycling (on site and/or offsite); or desalinated water.


GRI EN8, EN9, EN10



Relevant for:

Owners

Fund Managers

Property Managers

Developers


Corporations

ENV

4 :

WA

TER


V 1.02 - 2010 18

Relevant for

Owners

Fund Managers

Property Managers

Developers


Corporations

ENV5: Waste

This indicator aims to record the amount of total tenant, occupant, and construction waste that is sent to landfills and, by extension, the amount that is recycled.

Metrics

Total Waste Absolute (tonnes)

Intensity (kg/ft2 or tonnes/m2)

Total waste recycled and diversion rate of waste from landfill by weight or volume

Total diverted/recycled (tonnes)

Diversion rate (%)

Diversion intensity (kg/ft2 or tonnes/m2)

By waste type (%)

Notes:

Only the waste produced by an organization‟s activities or from their buildings should be recorded for these metrics.

Report should indicate methodology used for recording waste for assets with only partial year ownership.

„Construction materials‟ as a category of waste should be divided into further groupings dependant on type of material.

Soil removed from sites should be included and broken into contaminated and non-contaminated soil.

Waste can also be broken down by source.

It is important to note that hazardous waste not permitted to be sent to landfill should be reported as a separate item.


GRI EN22



ENV

5 :

WA

STE


V 1.02 - 2010 19

ENV6: Materials

A building‟s impact on the environment extends beyond its operation and includes the materials from which it was constructed.

This indicator measures new, recycled, and environmentally responsible material utilized in development projects or major building renovations.

Metrics

Number of development or major building renovation projects Total

Area Total (ft2 or m2)

Weight or volume of material used (kg or m3 or tonne)

Proportion of recycled or reused material by weight or volume (%)

Proportion of accredited environmentally responsible material used by weight or volume

(%)

Proportion of material extracted, manufactured, or sourced locally

(%)

Materials by type List (text)

Notes:

It is up to each company to determine whether they measure material use by weight or by volume, but this decision should be recorded.

Corporations should consider breaking down their report further into the type of material being measured.

Where a company has multinational operations, materials should be split by country.

Corporations should include materials used in major building renovations and tenant improvements.


GRI EN1, EN2



ENV

6 :

MA

TER

IALS

Relevant for:

Owners

Fund Managers

Property Managers

Developers


Corporations


V 1.02 - 2010 20

Relevant for:

Owners

Fund Managers

Property Managers

Developers


Corporations

ENV7: Biodiversity & Land Use

The impact of the built environment on natural ecosystems, especially species at risk and rare habitats, can be significant.6

Companies should report on any (adverse) effect their activities have on biodiversity and habitats or on places of particular indigenous or other heritage significance.

These impacts may be direct (e.g. development) or indirect (e.g. product sourcing), but should be considered holistically.

Metrics

Land affected Total area (hectares)

Category of land affected (i.e. agricultural, aquatic, forested) and its impacts on:

Protected Areas, rare habitats or areas with species at risk and of high ecological importance;

biodiversity conservation, habitat and ecosystem management; the preservation of indigenous or other heritage elements (i.e.

land, flora, fauna, buildings, culture, people); and existing cultural, social or recreational opportunities

Explanation (Text)

Initiatives undertaken, both during and after construction, to protect, conserve, and/or restore biodiversity

Explanation (text)

Number of Greyfield or Brownfield redevelopment projects/buildings Total

Area (ft2)

Notes: Where a company has multinational operations biodiversity and land use should be split by country.

Examples of documents that can be used as guidance include the Canadian Biodiversity Strategy and Provincial/Territorial Strategies as well as policies and programs for the management of biological resources (e.g. The Canada Forest Accord, the Wildlife Policy for Canada, the RENEW strategy, the Federal Policy on Wetland Conservation, the federal Species at Risk Act, and Provincial/ Territorial policies and legislation related to endangered species).

Definitions: Greyfield sites are large developed properties that are due for redevelopment; economically obsolescent, outdated and underutilized, but not significantly contaminated.

Brownfield sites are abandoned, idle, or underutilized industrial and commercial properties where the previous site use caused environmental contamination, thus necessitating remediation

before redevelopment.

6 For more detailed information on the potential impacts of commercial real estate on biodiversity issues, refer to REALpac’s paper, “Biodiversity and the Canadian Commercial Real Estate Industry”, which can be found at http://www.realpac.ca/splash.asp


GRI EN11, EN12, EN14



ENV

7 :

BIO

DIV

ERSI

TY &

LA

ND

USE


V 1.02 - 2010 21

Social Performance SOC1: Employment

This indicator aims to provide a record of the demographic makeup of a corporation.

Metrics

Number of employees Total

By age

Gender by employment band

Full time/Part time/Casual

Turnover (%) by category

Pay parity Gender by employment band (ratio)

Notes:

Where a company has multinational operations, employment data should be split by country

Corporations might also consider whether other employee demographics should be measured, such as:

ethnic diversity; indigenous workforce; employees with disabilities absentee rate; or employee satisfaction.

Definition: “Employment band” relates to the different level of employee within a company. For example:

Executive Management; Senior Management; Management; Professional/technical; and Employee.

Turnover categories can include age, gender, full-time/part-time/casual/contractor, voluntary/involuntary.


GRI LA1, LA2, LA13, LA14

DJSI Labour Practice Indicators


SOC

1 :

EM

PLO

YM

ENT

Relevant for:

Owners

Fund Managers

Property Managers

Developers


Corporations


V 1.02 - 2010 22

SOC2: Occupational Health & Safety

Worker injury and fatality rates are snapshots of the duty of care exercised by a corporation in relation to its employees.

Proactive mitigation strategies should be identified and reported.

Metrics

Notes:

Where a company has multinational operations occupational health and safety data should be split by country.

Definition:

“Employment band” relates to the different level of employee within a company. For example:

Executive Management; Senior Management; Management; Professional/technical; Employee; Contractor; and Non-employees (e.g. customers).

7 As per the Canadian Center for Occupational Health and Safety, http://www.ccohs.ca/oshanswers/information/ injury_statistics.html and the Association of Workers’ Compensation Boards of Canada, http://www.awcbc.org/en/ nationalworkinjuriesstatisticsprogramnwisp.asp, both accessed 8 October 2009.

Lost time due to injury, accident, or medical condition

Total number of incidents

Total accepted time-loss injuries7

Reduction from previous year (%)

By employment sector

Incident rate Number of time-loss injuries/100 workers

Fatalities Total

Reduction from previous year (%)

Number of fatalities by employment band

Safety and risk prevention practices (OH&S Risk Management)

Text about initiatives to improve safety, including „lead‟ indicators

Relevant for:

Owners

Fund Managers

Property Managers

Developers


Corporations

SOC

2 :

OC

CU

PA

TIO

NA

L H

EALT

H &

SA

FETY


GRI LA6, LA7, LA8, LA9

DJSI Labour

Practice Indicators



V 1.02 - 2010 23


GRI LA10, LA11, LA12

DJSI Human Capital Development


SOC3: Training & Education

Employee training rates demonstrate a corporation investment in its staff.

A corporation that spends more on education and training for staff beyond compliance responsibilities is sending a message that its employees are valuable to it.

Companies reporting against this metric should highlight workplace relevant training that is not related to statutory or licensing requirements.

Metrics

Statutory Training Non-Statutory Training

Amount of training Hours per employee per year (hours/p.a.)

Hours per employee per year (hours/p.a.)

By employment band (hours/p.a.) By employment band (hours/p.a.)

By type (text)

Definitions:

“Employment band” relates to the different level of employee within a company.

For example:

Executive Management; Senior Management; Management; Professional/technical; and Employee.

“Statutory” training refers to all training that is mandatory under applicable law.

“Non-Statutory” training refers to employee training and education programs that are not compulsory by law or are not job specific skill training. Examples may include:

CR&S training; environmental system management training; and leadership, communication skills, or management

training.

Relevant for:

Owners

Fund Managers

Property Managers

Developers


Corporations

SOC

3 :

TR

AIN

ING

& E

DU

CA

TIO

N


V 1.02 - 2010 24

SOC4: Community

It is important that the success of a company‟s business activities is reflected in their acceptance by the wider community.

Any potential impacts of these projects should be identified, resolved, and reported.

Metrics

Community initiatives and programs Explanation (Text)

Initiatives to deal with impacts of business activities on communities

Text about nature, scope and effectiveness of any programs and practices that aim to minimise impacts on communities

Development projects or property assets subject to criticism in the past year or period

Number of development projects or property assets

Text about type of difficulties

Actions taken to mediate issues or community concerns (e.g. number and type of engagement activities)


GRI SO1

DJSI Stakeholder Engagement


Relevant for:

Owners

Fund Managers

Property Managers

Developers


Corporations

SOC

4 :

CO

MM

UN

ITY


V 1.02 - 2010 25

SOC5: Human Rights

A company‟s human rights obligations extend to practices explored by its suppliers.

Investment and procurement practices should screen contractors and suppliers for their exposure to human rights violations including:

discrimination; child labour; forced or compulsory labour; worker representation (freedom of association).

This is particularly important if a company is sourcing materials from outside Canada.

Corporations should employ strategies to prevent racial, sex or disability discrimination and to report any incidents that may occur.

Metrics

Corporate policies and statements regarding human rights issues

Explanation (Text)

Human rights violations by contractors or suppliers

Text on strategy to screen and expose human rights violations

Text about incidents and actions taken on reports of violations

Discrimination Number of incidents reported by category

Number of cases verified by category

Number of cases reviewed by category

Text about actions taken

Notes:

Where a corporation has multinational operations human rights violations and discrimination incidents should be reported.

Those violations and incidents should be reported by country.

If a company has obtained assurance from suppliers or contractors this should be reported.

Definitions:

Incident categories can include: age, gender, ethnicity, language, religion, full-time/part-time/casual/contractor.

Relevant for:

Owners

Fund Managers

Property Managers

Developers


Corporations

SOC

5 :

HU

MA

N R

IGH

TS


GRI HR2, HR4

DJSI Labour Practice Indicators, Standards for Suppliers

FTSE4GOOD Supply Chain Labour Standards Criteria, Human Rights Criteria


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SOC6: Donations, Compliance & Corruption

Property companies, like any other corporation, should be free to participate in, and contribute to, the democratic process.

However, in the interests of transparency, any donations made by a company to political entities should be declared.

Such declarations should extend to the funding of special purpose campaigns or organisations.

Metrics

Notes:

Donations and contributions to organizations, groups or individuals with political affiliations should comply with the rules laid out in the Canada Elections Act. Further information can be found at Elections Canada, www.elections.ca.

Most lobbying activity in Canada must be disclosed to the respective governmental bodies. This activity and the activities of registered lobbyists are recorded and incorporated into public record.

If incidents of non-compliance, bribery, or corruption have occurred, organizations should describe the actions taken in response to each incident.

Donations to political parties or individuals Contribution per organisation or per individual ($)

In-kind donations (e.g. ticket purchases, event attendance)

Explanation (Text)

Public policy positions and participation in policy development or lobbying

Explanation (Text)

Compliance with laws and regulations Number of incidents of non-compliance

Value of fines and/or descriptions of sanctions

Principles combating bribery and corruption Explanation of policies (Text)


GRI SO4, SO5, SO6, SO8

DJSI Codes of Conduct/ Compliance/ Corruption & Bribery

FTSE4GOOD Countering Bribery Criteria

Relevant for:

Owners

Fund Managers

Property Managers

Developers


Corporations

SOC

6 :

PO

LITI

CA

L D

ON

ATI

ON

S


V 1.02 - 2010 27

Appendix A: GRI Reporting – Reference Sheet


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Source: Global Reporting Initiative – Sustainability Reporting Guidelines, Version 3.0, www.globalreporting.org


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