CONTENTS CEO'S MESSAGE 5 ABOUT LANDCORP 6 OUR APPROACH TO SUSTAINABILITY 8 SETTING THE BASELINE 10 LANDCORP'S MATERIAL ITEMS 11

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1 SUMMARY SUSTAINABILITY REPORT NOVEMBER 2014

2 CONTENTS MINISTER'S MESSAGE 4 CEO'S MESSAGE 5 ABOUT LANDCORP 6 OUR APPROACH TO SUSTAINABILITY 8 SETTING THE BASELINE 10 LANDCORP'S MATERIAL ITEMS 11 OUR SUSTAINABILITY PRIORITIES 15 CONTENTS 3

3 CEO S MESSAGE The Western Australian landscape is internationally renowned. From the rich red ochres of the Kimberley in the north, to the pristine white sands of Esperance s beaches in the south, we have a natural canvas that is both striking and precious. This is why the State Government s land development agency must lead the way when it comes to sustainable residential and industrial development. At a time of unprecedented growth in Western Australia s population, LandCorp is setting a new benchmark by adopting the Global Reporting Initiative Sustainability Reporting Guidelines. LandCorp s inaugural report marks the beginning of a more rigorous, strategic and holistic approach to sustainability. It is the foundation on which LandCorp will build new measures of accountability and transparency as it continues to address emerging land development challenges and opportunities for the benefit of all Western Australians. The State Government is setting the sustainability bar high because we understand that planning for a sustainable future requires action today. I commend LandCorp for its sustainability vision. THE HON. TERRY REDMAN MLA LandCorp has introduced an annual Sustainability Report using the best practice Global Reporting Initiative Sustainability Reporting Guidelines. Sustainability reporting is the practice of measuring, disclosing and being accountable for an organisation s performance as it moves towards the goal of sustainable development. As a first time reporter, we undertook a process to identify our material issues that included reviewing our corporate commitments, policies, risks and regulation requirements and engagement with staff and external stakeholders. From this engagement with external stakeholders we discovered that stakeholders are increasingly expecting us to lead sustainable development, demonstrate innovative approaches to meet future community needs and support Western Australia s growth. We believe our sustainability reporting will help us improve our management of non-financial impacts and performance; provide an Our stakeholders expect us to be a leader in sustainable development and innovation. We aim to meet this expectation to deliver a sustainable future for all Western Australians. opportunity to communicate our sustainability performance to our internal and external stakeholders and continue to improve our sustainability outcomes. This document summarises our inaugural Sustainability Report which is available in full on our website. Our future annual Sustainability Reports will disclose performance against each of our material issues, towards the goal of improving our sustainable development performance. To support this, in the year ahead we will entrench sustainable values and approaches in our culture and in our business processes, and deliver Sustainability Awareness Training throughout our workforce. In coming months we will undertake a review to assess the material aspects of our business, which will inform the next reporting cycle. We will continue to drive towards best practice and sustainable operations across all of these aspects. FRANK MARRA CHIEF EXECUTIVE 4 MINISTER'S MESSAGE CEO S MESSAGE 5

4 BOUT KEY PROJECTS ACROSS WESTERN AUSTRALIA KUNUNURRA ANDCORP KIMBERLEY Ord-East Kimberley Expansion Project Januburu Six Seasons Broome North Waranyjarri Estate Broome Road Industrial BROOME LandCorp is Western Australia s land and infrastructure development agency. It is a Government trading enterprise, with a vision to lead development on behalf of the State Government, for the benefit of the community. GASCOYNE Carnarvon NorthWater Carnarvon Cornish Street Light Industrial Exmouth Nimitz Residential Estate KARRATHA PORT HEDLAND PILBARA Gap Ridge Industrial Estate Hedland Junction Wedgefield Industrial Estate Newman Light Industrial Area Ashburton North Strategic Industrial Area Karratha City Centre Baynton West Madigan Road Nickol West Estate East Port Hedland/Marina Precinct Newman Town Centre East Newman Residential Estate Mulataga South Hedland Town Centre LandCorp s role is to identify, design and implement major land and infrastructure initiatives across the State, and its projects cover residential, commercial, industrial and tourism development. These projects are designed to meet the needs of a growing and changing population, and foster development which has a lasting and positive impact for all Western Australians. Our values: collaborate, achieve, respect and adapt define the principles that guide our internal conduct as well as our relationships with our partners, stakeholders and customers. Increasingly, LandCorp s role is as a facilitation agency, helping to support and maximise private sector investment in development projects. 6 ABOUT LANDCORP Our services include: Providing sufficient industrial land to ensure the growth of WA s economy Delivering urban development and renewal projects Optimising triple bottom line outcomes from Government-owned land FAST FACTS Providing asset management services to the State Government Supporting growth in regional towns through the provision of suitable land. In LandCorp's Metropolitan program released 1,090 dwelling unit equivalents. The Regional Program delivered land for 760 dwelling unit equivalents. LandCorp has an average of 150 active projects underway at any given time. PERTH Cockburn Central Alkimos Claremont on the Park Rockingham City Centre Western Trade Coast Australian Marine Complex Latitude 32 Forrestdale Business Park Cockburn Coast Cockburn Commercial Park Mangles Bay Marina Tourism Precinct Meridian Park, Neerabup Perry Lakes PEEL Mandurah Junction Mandurah Ocean Marina SOUTH WEST Collie Shotts Buckingham Way Bunbury Waterfront Harvey Kemerton CARNARVON GERALDTON WHEATBELT Avon Industrial Park Various RDAP Projects including: PERTH Dowerin Residential Dalwallinu Residential Hyden Residential BUNBURY MIDWEST Batavia Coast Marina, Geraldton Oakajee Morawa Light Industrial Morawa Residential Narngulu Industrial Estate ALBANY GOLDFIELDS-ESPERANCE GreenView Residential Estate Karlkurla Rise Anzac Drive Industrial Estate KALGOORLIE ESPERANCE GREAT SOUTHERN Albany Waterfront Emu Point Katanning Mirrabeena Industrial Estate Yerriminup Industrial Area ABOUT LANDCORP 7

5 LandCorp has a clear sustainability vision. We are keenly focussed on development which delivers economic, environmental and social prosperity for Western Australians, not only today, but also for future generations. Our sustainability vision is to be a leader and innovator in fostering and delivering sustainable development. This means providing tangible value across our four core sustainability elements. INTEGRATED SUSTAINABLE DEVELOPMENT COMMUNITY WELLBEING Creating communities that are safe, healthy and enjoyable places to live and work, with access to appropriate and affordable housing and creating opportunities to foster active local communities. DESIGN EXCELLENCE A built environment that ensures attractive, accessible and adaptable places that contribute to a distinctive identity and sense of place. These are: Community wellbeing; Design excellence; Environmental responsibility; and Economic health. Our sustainability vision is underpinned by the WA Land Authority Act, which requires LandCorp to balance and combine long-term commercial sustainability with ethical behaviour, social justice and environmental care. ENVIRONMENTAL RESPONSIBILITY Protecting and managing natural systems, habitat and biodiversity, and efficiently and innovatively managing energy, water, resources and materials. ECONOMIC HEALTH Maximising economic development opportunity, while optimising the environmental, social and economic benefits in accordance with State Government strategies. Our sustainable development plan outlines four key objectives: 1 Embedding sustainability into the business managing change to culture, processes, procedures and operations to continually improve sustainability outcomes 2 Strategic sustainability focus addressing sustainability across the environmental, design, community and economic aspects of our business 3 Demonstration projects stimulating innovation in development through demonstration 4 Sustainable reporting in , LandCorp is taking a step to further this commitment, with the release of our first Sustainability Report developed in line with the Global Reporting Initiative (GRI) guidelines. GLOBAL REPORTING INITIATIVE (GRI) GRI is an international not-for profit organisation which has developed a comprehensive Sustainability Reporting Framework. It promotes the use of sustainable reporting as a way for organisations to contribute to sustainable development. GRI has developed a reporting standard that enables companies and organisations to measure, understand and communicate their sustainability goals and achievements. The GRI reporting framework has been adopted by some of the world s leading private, public and community sector organisations. GRI works in partnership with the Organisation for Economic Co-operation and Development, the United Nations Environment Programme and the United Nations Global Compact. We have elected to develop LandCorp s Sustainability Report using the world bestpractice GRI G4 guidelines. This provides a framework for enhanced accountability of our non-financial impacts and performance, along with increased transparency for Government, industry, the community and our employees. 8 OUR SUSTAINABILITY STRATEGY OUR SUSTAINABILITY STRATEGY 9

6 SETTING THE BASELINE LANDCORP'S MATERIAL ITEMS In our first year of reporting under the GRI framework, we have concentrated on identifying materiality the most important and significant aspects of what we do both for our business and for our stakeholders. This involved developing a materiality analysis, led by an independent expert to identify the material aspects of our business, which in turn defined the content and structure of our inaugural Sustainability Report. We undertook a materiality analysis which involved a comprehensive review of the business strategy and risks and relevant industry issues. This was followed by face-to-face interviews with stakeholders from the private, industry, State Government, LandCorp staff and community sectors. In total, 24 material aspects were idenitifed, prioritised and grouped into five key areas aligned with our corporate strategy. The broad range of material aspects identified as most important by our stakeholders included affordability, design, water, carbon and energy, community development and innovation. Importantly, the process of determining our material issues also identified a gap in our internal materiality assessment with a greater focus required on waste management and our broader economic impact. Our stakeholders have set the bar high in their expectations of our leadership role in sustainable development and innovation. They expect sustainability to be an integral part of our business and for us to share the knowledge we gain as a result of meeting development challenges. We understand that our material aspects are likely to evolve over time. It is our intention to proactively manage materiality issues through an annual review process in order to ensure our sustainability performance continues to improve. HIGH STAKEHOLDER CONCERN LOW MATERIALITY MATRIX Strategic Land Supply and Delivery - Metropolitan - Regional - Economic and Employment Government Priorities - Delivering Government policy - Economic performance - Government advisory service Carbon and energy Water Waste Partnerships Relationships and Customers - Partnerships and relationships - Customer satisfaction - Value chain sustainability Sustainable urban and built-form design CONCERN FOR LANDCORP Economic performance Community development Innovation Strategic Land Supply and Delivery Metropolitan, Regional, Economic and Employment Supply-chain sustainability Partnerships and relationships Community engagement Delivering government policy Biodiversity Indirect economic outcomes Office sustainability Employee engagement and wellbeing Training and education Governance Diversity, inclusion and equal employment opportunity Customer satisfaction Government advisory service Indigenous relations Sustainable Development - Sustainable urban and built-form design - Community engagement - Community development - Affordability - Indigenous relations - Biodiversity - Water - Carbon and energy - Waste - Indirect economic outcomes - Innovation Affordability Health and safety HIGH Our Business - Office sustainability - Health and safety - Employee engagement and wellbeing - Training and education - Diversity, inclusion and equal employment opportunity - Governance 10 SETTING THE BASELINE LANDCORP'S MATERIAL ITEMS 11

7 THE IMPACT OF OUR MATERIAL ISSUES ALONG OUR VALUE CHAIN Our people are our greatest asset and provide our point of difference. As such staff engagement and satisfaction, and training and education are critical to our success. We are committed to staff diversity, inclusion and equal employment opportunity and promote a health and safety work culture. Through an integrated triple bottom line approach we balance our economic performance with social and environmental value. INITIATION START-UP Identifying project vision and approach and considering sustainability opportunities. KEY ISSUES/ IMPACTS Impact analysis and due diligence Governance and management Project vision and objective setting Innovation and research Relationship management and stakeholder engagement Business case development and feasibility analysis Our partnerships and relationships with other Government agencies, community sector and private industry allow us to collaborate and co-create to achieve improved sustainable development outcomes. We continually seek to identify innovation opportunities in the delivery of sustainable development and to demonstrate new ways of doing things. NUMBER OF PROJECTS ACCORDING TO THE PROJECT VALUE CHAIN PHASES START-UP: 75, INITIATION AND DEFINITION: 11, EXECUTION AND BUILT-FORM: 203 Identifying land supply opportunities and making decisions about which projects to undertake. KEY ISSUES/ IMPACTS Environmental and social impacts linked to project location Governance and management Innovation and research Pre-feasibility and context assessment Relationship management and stakeholder engagement EXECUTION END-USE Direct impact of the developments occurs during this stage, driven by LandCorp s design guidelines and the behaviour of the customer (e.g. energy and water use efficiency, reduction of waste). KEY ISSUES/ IMPACTS Industry attraction and place activation Energy and water use Material use and waste generation Innovation and research DEFINITION Engage industry expertise to produce project plans which integrate environment, community, economic and design aspects. KEY ISSUES/ IMPACTS Supply-chain procurement and relationships Environmental strategies (water, biodiversity, carbon, energy, waste use) Community strategies (affordability, community engagement, indigenous relations) Innovation and research Delivery of the project which provides business and employment opportunities, establishes economic and service infrastructure and influences environmental and social value through procurement. KEY ISSUES/ IMPACTS Supply-chain procurement and relationships Carbon emissions Construction material use and waste minimisation Occupational health and safety Relationship management and stakeholder engagement Innovation and research Implementation of environmental, design, community and economic strategies BUILT-FORM Employment self-containment Uptake of community development / health and wellbeing initiatives Community engagement Research and customer satisfaction Statutory approvals Economic strategies (local employment, commercial, industrial and business opportunity) Sustainable urban landscape and built-form design Relationship management and stakeholder engagement Implement design guidelines through the tender process and work with the community housing sector, builders and developers to provide affordable housing choices. KEY ISSUES/ IMPACTS Supply-chain procurement and relationships Built-form design Innovation and research Relationship management and stakeholder engagement 12 LANDCORP'S MATERIAL ITEMS LANDCORP'S MATERIAL ITEMS 13

8 STAKEHOLDERS We are accountable to our State Government as LandCorp s shareholder, and to our broader stakeholders. We work closely with all stakeholder groups to ensure we meet expectations across the social, economic and environmental aspects of our work. OUR STAKEHOLDERS COMMITMENT STATEMENT WHAT THEY EXPECT FROM LANDCORP Government Private sector and industry We are committed to working with all levels of Government to deliver Government priorities and support long-term growth in Western Australia We work together to understand and manage the environmental, social and economic impact of our activities LandCorp to ensure strategic land supply to support long-term growth and to deliver Government policy LandCorp to be a leader in sustainable development and innovation OUR SUSTAIN ABILITY PRIORITIES Communities Customers Employees We endeavour to create value for the communities in which we operate We strive to create value for our customers by understanding their needs and providing a sales, marketing and purchase process as well as outcomes that deliver value Our staff provide our point of difference and are critical to our success LandCorp to deliver sustainable developments that create value for the community. LandCorp to address density, affordability, environment, traffic and parking issues LandCorp to satisfy customer expectations in the sales process and deliver quality estates in which people enjoy a sense of community living and working LandCorp to provide a safe and healthy workplace, with diversity, inclusion and equal employment, training and education opportunities We are committed to collaborating with all levels of Government, private and industry sectors, communities and customers as we seek to better understand our stakeholder's business constraints, needs, concerns and expectations. 14 LANDCORP'S MATERIAL ITEMS OUR SUSTAINABILITY PRIORITIES 15

9 STRATEGIC LAND SUPPLY AND DELIVERY Key releases in and corresponding Dwelling Unit Equivalents (DUE s) KUNUNURRA LAKESIDE PARK (37) LandCorp works across three key delivery areas. SOUTH HEDLAND TOWN CENTRE (319) KARRATHA MADIGAN ESTATE (16) ONSLOW RESIDENTIAL (15) Metropolitan Regional Our role is to assist with commercial, retail and residential land supply in line with the Western Australian Government s strategic planning framework Directions 2031 and Beyond. Our focus is on supplementing strategic land supply, developing Government urban projects in Activity Centres and corridors and delivering smaller urban infill developments. Ultimately, this helps create vibrant and sustainable communities, supported by transport infrastructure and amenities. During we delivered land for the equivalent of 1,090 dwellings. Some of our key projects included Alkimos Beach, Carine TAFE and The Springs. A key short-term challenge will be the land supply pipeline, with reduced availability and requirements for environmental offsets. In the face of this issue, combined with increasing population growth and quality of life expectations, we continue to explore innovative ways to address sustainable development requirements while meeting our economic performance objectives. Our regional program supports the delivery of land and infrastructure for regional Western Australia. We work in all of the State s regions fostering economic development and helping create sustainable communities. We also work closely with other Government partners to support key initiatives and policies for regional development, such as the Regional Centres Development Plan, the Regional Development Assistance Program (RDAP) and the Regional Investment Blueprints. In the regional program delivered land able to support 760 dwellings across regional WA, substantially above the target of 550. Our careful investment in estate planning and land release over many years means there is now land supply available in key regional centres. This work has helped stabilise markets and support regional residents and businesses. KALGOORLIE (70) BUNBURY WATERFRONT (125) COLLIE BUCKINGHAM WAY (36) NEWMAN RESIDENTIAL (70) Claremont on the Park artist impression for illustrative purposes only. CLAREMONT (178) COOLBELLUP NORTH LAKE (91) MUNSTER (28) Key releases in and corresponding Dwelling Unit Equivalents (DUE s) ALKIMOS (339) CLARKSON (64) CRAIGIE (47) CARINE (116) CHAMPION LAKES (46) HARVEST LAKES (50) ROCKINGHAM CITY CENTRE (30) WAIKIKI (77) Economic and Employment We help foster State development by delivering industrial and business land and associated infrastructure. We play a key role in bridging the gap between public and private sectors within the industrial land space as an implementation agency to ensure the supply of suitably located land meets demand. This involves working closely with key agencies such as the Department of State Development, Department of Commerce, Department of Planning, Department of Regional Development and Department of Lands. Land sales in were below those of the previous period. This can be attributed to the slowdown in the mining sector and the subsequent reduction in Pilbarabased project sales. Despite these challenges, our Economic and Employment program achieved sales of $56 million during the year. Demand for industrial land is expected to increase in the next five years with increasing demand for larger lot sizes, more office space, increased warehouse size and hardstand areas. 44 general industrial lots released in HEDLAND JUNCTION GERALDTON NARNGULU KARRATHA GAP RIDGE PERTH MERIDIAN PARK WANGARA ENTERPRISE PARK BIBRA LAKE COCKBURN COMMERCIAL FLINDERS PRECINCT ROCKINGHAM INDUSTRIAL ZONE 16 OUR SUSTAINABILITY PRIORITIES OUR SUSTAINABILITY PRIORITIES 17

10 GOVERNMENT PRIORITIES PARTNERSHIPS, RELATIONSHIPS AND CUSTOMERS Economic Performance Our economic performance is critical to our viability. We operate as a commercial Government Trading Enterprise, and our projects are required to be delivered in a cost effective way. In we delivered $362 million in land sales revenue, an increase from the previous year, but below the business plan target of $506 million. Despite being below target, this is our third best result, achieved in a fluctuating economic environment. A large portion of this revenue came from the Metropolitan program, with sales fuelled by historically low interest rates. Last year LandCorp returned over $105 million to Government for reinvestment. Government Advisory Services We provide high-level property advisory and project management services to State and local Government agencies. Our three main objectives are to: Provide project management and property management services Investigate and remediate contaminated sites Act as lead agency for the Property Asset Clearing House and manage disposal of surplus Government assets. In significant project management services were applied to Kununurra Ord Stage 2, Perry Lakes and the Karratha City Centre projects. Property management services were applied to a wide range of projects including the Hay Street Hotel site, Bassendean Oval redevelopment, Gosnells Town Centre and Department of Health surplus hospital sites. During the year, we also helped facilitate $11 million in asset sales on behalf of the State Government, with a dedicated team working with the Property Asset Clearing House. Delivering Government Policy A core LandCorp objective is to identify and respond to Government project delivery requirements and help sustain WA s economic and employment growth. A key driver of this is the State Planning Strategy which provides the road map for planning and development decisions throughout the State. The following key Government policies play a major role in our operations. State Planning Strategy 2050 (2014) Our Cities, Our Future (2011) Sustainable Population Strategy (2011) Directions 2031 and Beyond (2010) Urban Design Protocol (2011) Activity Centres State Planning Policy 4.2 (2010) Liveable Neighbourhoods (2009) Transforming Perth (2013) Better Places and Spaces Policy (2013) Water Forever Strategic Policy (2009) Western Australian Waste Strategy (2012) Better Urban Water Management (2008) Guideline for the approval of non-drinking water systems in WA urban developments (2013) Energy 2031 (2012) Affordable Housing Strategy; Opening Doors (2010) The Housing We d Choose: a study for Perth and Peel (2013) Royalties for Regions Act and Program (2009) Pilbara Cities Program (2010) Regional Development Policy Framework (2011) Regional Centres Development Plan (2011) Regional Planning and Infrastructure Frameworks (2014) Regional Investment Blueprints (2014) Seizing the Opportunity Agriculture (2014) Reconciliation Australia - Reconciliation Action Plans program Economic and Employment Lands Strategy (2012) Heavy Use Industrial Land Strategy (2008) South West Region Industrial Land Study (2013) Partnerships and Relationships Throughout our business, we collaborate with stakeholders including Government, industry, the private sector, communities and customers. Through these relationships we aim to continually improve our response to stakeholder requirements and produce best practice project delivery. We undertake regular stakeholder mapping and research and our most recent stakeholder survey returned positive feedback. A total of 69 per cent of private sector stakeholders said they were satisfied with their relationship with LandCorp and 72 per cent would recommend or speak positively about Case Study Engaging Aboriginal Enterprises LandCorp has sought to increase the participation of Aboriginal Enterprises in the WA economy, through our procurement and supply chain strategies. We are a supporting partner in Project Connect, which developed and manages the Aboriginal Business Directory. The Directory connects Aboriginal businesses in WA with potential customers and buyers. In November 2012, the Government introduced an exemption to the mandatory procurement procedures, which allowed State Government enterprises to directly contract for the provision of goods LandCorp. The survey identified areas for improvement in expressions of interest and tender processes, and the speed at which decision reviews are completed. Residential customers are contacted within three months of settlement regarding their satisfaction with the sales, marketing and purchase process. Research was conducted with 298 of our 2013 residential customers, via a mix of telephone and online surveys. The results for the 2013 post purchase survey were very positive, with overall satisfaction increasing from 81 per cent to 87 per cent and the likelihood of customers to recommend LandCorp increasing from 80 per cent to 86 per cent. and services with Aboriginal businesses for contracts up to $150,000 in value. These businesses must be registered on the Aboriginal Business Directory WA. During the past year, LandCorp has extended the use of the Aboriginal Business Directory across the business and a small number of contracts were negotiated. In addition, our procurement team has compiled a list of Aboriginal contractors in civil and related project works and services (including, electricians, landscaping and surveying) for use by project teams. We have also implemented changes to include Aboriginal-weighted criteria to all aspects of works tendered. A review is scheduled to assess performance of Supply Chain Sustainability We spend a significant amount of our budget on goods and services to deliver our projects and we are committed to ensuring the procurement process is both transparent and fair. We aim to use our influence in the supply chain to enhance social, environmental and economic outcomes. To do this we will focus on key areas of procurement policy, supply chain activities and relationships. Our procurement approach is focused on supporting local suppliers. In we spent approximately 55 per cent of our procurement budget with local suppliers. this reform. 18 OUR SUSTAINABILITY PRIORITIES OUR SUSTAINABILITY PRIORITIES 19

11 SUSTAINABLE DEVELOPMENT LandCorp faces increasing challenges and opportunities with land, resources and infrastructure constraints against a backdrop of rapid population growth and increasing quality of life expectations. Escalating energy costs, water limitations, traffic congestion, the anticipated impacts of climate change and affordability are becoming increasingly important to the community. We lead sustainable development through the consideration of community, design, environment, economic and innovation factors. Case Study Alkimos Beach community development Alkimos Beach is a new community in a greenfield location. LandCorp has been working with its development partner Lend Lease to build a community development program for new residents. This includes creating public space that supports interaction. Extensive research has been undertaken to consider who might live in this new community, what their needs might be, and how the project can deliver a flexible and adaptable space that can change as the community grows and develops. We have created a temporary facility called Sprout, located at Escarpment Park, to provide a community space, kiosk, co-working location, space for hire and an online community portal. Sprout enables us to deliver much needed community facilities for the first wave of residents while more permanent facilities and services are being established. Community Engagement We are committed to ensuring local communities have the opportunity to engage with our projects. As a State Government authority we understand that public endorsement is critical in order to achieve business success. Community engagement takes place throughout the LandCorp project life-cycle, from initiation through to end use. We use a range of tools, including stakeholder mapping, community committees and online avenues to ensure we connect with the people affected by our projects. We recognise that by doing so we can improve outcomes for the community in line with their needs and aspirations. Indigenous Relations LandCorp s land and infrastructure developments provide foundations for healthy communities where people of all cultural backgrounds can come together. We aim to lead by example in providing training and sustainable employment and business opportunities for Aboriginal and Torres Strait Island people. In per cent of LandCorp staff undertook Cultural Awareness Training. Since 2008 we have worked towards improving our reconciliation initiatives and formalised this by way of our Reconciliation Action Plan (RAP). Community Development LandCorp also makes an important contribution to community health and wellbeing through the development of vibrant and sustainable communities. This includes understanding our social impact and initiating community development programs that not only use the local space and amenities but are sutiable to a particular community. Affordability We play a key role in delivering affordable housing and supporting the State Government s affordable housing strategy. This includes supporting the Departmentof Housing and the Community Housing Sector to deliver a diverse range of land and housing options. Affordability is a key challenge for LandCorp and one that is evolving with increasing community diversity and changing demographics. Our approach supports a Government target to dedicate at least 15 per cent of housing land to affordable housing. 15% AFFORDABLE HOUSING We dedicate at least 15 per cent of our land to supply affordable housing for those on low-moderate incomes. 87% 41% BELOW THE MEDIAN LOT PRICE 87 per cent of lots sold across metropolitan Perth in were below the median lot price. $ OR LESS 41 per cent of lots for single dwelling unit equivalents across WA sold at $ or less and 2 per cent of land transactions were to the Department of Housing. 20 OUR SUSTAINABILITY PRIORITIES OUR SUSTAINABILITY PRIORITIES 21

12 Design Good design is essential to achieving sustainable some of the most challenging design issues across the State. for staged sponsorship over a three-year period which outcomes for our projects and the community. We take a life-cycle approach to design with the development of design policies and guidelines in line with sustainable best practice. We are also committed to a range of detailed research projects to identify solutions to During LandCorp undertook eight project design reviews for urban and built-form projects. In June 2014 LandCorp entered into a Memorandum of Understanding with the Australian Urban Design Research Centre (AUDRC) will assist with developing a better understanding of the urban design and sustainability challenges in higher density infill developments in Perth. Our aim is to ensure we balance good design outcomes with other social, economic and environmental considerations. Example: Cockburn Central design and place-making approach Almost 20km south of the Perth CBD, Cockburn Central is expected to ultimately house 2,000 residents in 1,100 apartments. Once fully developed, the town centre will also provide a working environment for around 1,800 people. Retail and commercial space is set to expand, from the existing 15,000sqm to 21,500sqm. Located adjacent to the train station, the key sustainability initiative of this project is the delivery of greater density near rapid transit. Placemaking and activation were embedded in all aspects of planning and delivery from community input into the structure plan, an innovative land sales process, best practice design guidelines, comprehensive development application review process and the place making implementation plan. Cockburn Central won the 2014 Planning Institute awards for placemaking LandCorp facilitated consistent support for intensification throughout all aspects of the project. This included unlimited building heights, other than limits imposed by the Jandakot flyover and no upper R code density limits. Innovation has been delivered through a design philosophy that focused on the public realm, including a multifunctional town square, an active social hub at the heart of the community. Main streets create a safe walkable environment linked to major bus and train transport hubs. Best practice design guidelines provide clear objectives, mandatory controls and guidance by which development proposals can achieve higher levels of sustainability, community interaction and improved design quality for built-form, urban design and landscape. Diversity of product and lifestyle opportunities is also a sustainability objective. Living in a transit-oriented to a diverse range of people, from young professionals to downsizers and fly-in fly-out workers to investors. Living Space by the Department of Housing provides a mixed-use ground floor and 130 one to three bedroom apartments, providing quality lifestyle opportunities to those requiring financial assistance through the Department s shared home ownership and rental schemes. As one of the first Activity Centres in Perth s middle ring suburbs, learnings from this project are immediately transferrable to other Activity Centre projects, with the project serving as a case study for future urban infill projects Environment Biodiversity We understand the community s desire to preserve biodiversity to protect our native species and the beauty of our green spaces. Wherever possible, we seek to minimise impacts on biodiversity, and where unavoidable, we provide offsets in accordance with State and Federal regulations. We undertake environmental due diligence as part of all project plans and retain natural vegetation and habitat on our development sites. Water Water conservation and efficiency is addressed throughout the planning process with the development of integrated water management strategies. These strategies are designed to minimise irrigation demand (both for domestic and public spaces) and consider alternative water sources. We also seek to reduce potable water use by households and businesses through design guidelines, partnerships and demonstrations of new tools Carbon and Energy LandCorp has limited direct control over energy use and associated emissions. However, we aim to add considerable value through climate responsive design (CRD) at the subdivision scale, influencing household energy efficiency through design guidelines and best practice demonstration projects. We also seek to address the impacts of climate change through CRD which optimises natural heating, cooling and light, as well as higher density transitorientated development and the incorporation of renewable energy sources. Waste We aim to consider the management of waste in both the demolition and construction phases of all our developments. Our objective is to maximise resource efficiency and mitigate waste impact on the natural environment. LandCorp will work towards aligning with the WA State Government Waste Strategy which targets 60 per cent recycling of waste by , and 65 per cent by At the recent Perry Lakes development, these strategies resulted in more than 75 per cent of material being diverted from landfill. at the State and National level. community has appealed strongly and Activity Centres. and technology. 22 OUR SUSTAINABILITY PRIORITIES OUR SUSTAINABILITY PRIORITIES 23

13 Innovation and Demonstration Economic Indirect We develop strategically located industrial and commercial land across the State to support economic growth, as well as providing social and economic infrastructure. This is achieved through aligning land delivery with the objectives and strategic direction of Government (i.e. State planning strategies and Regional Investment Blueprints), Local Government, and industry and infrastructure providers. This will help grow sustainable and vibrant communities across Western Australia. LandCorp s industrial, commercial, and mixeduse precincts (including activity centres), in both regional and metropolitan areas, stimulate economic growth, diversification, and community development. Case Study Ord-East Kimberley Development Project The Ord-East Kimberley Development Project is a $517 million investment funded by State and Federal Governments. It delivers 7,500ha of agricultural land in the Goomig Farm Area and includes the release of land from the Knox Plain and Ord West Bank. The project ultimately doubles the amount of agricultural land available and has already delivered 29 social, community and common use infrastructure projects to build a stronger, vibrant and more economically sustainable region. The State Government made $322 million available for the Ord-East Kimberley Expansion Project, which was used to fund the construction of physical infrastructure between 2010 and 2013 and created irrigation channels, drainage and roads to create the farmlands. Kimberley Agricultural Investments was announced as the preferred proponent to lease and develop 13,400ha into irrigated farmland, which is now near completion with the first crop planting anticipated in During the construction phase ( ) 204 Aboriginal people were employed with a peak workforce of 97 Aboriginal workers. Additionally $130 million was spent through local content in over 82 local businesses, 14 of which were Aboriginal-owned. Demonstration Projects In a changing world with high stakeholder expectations, demonstration projects allow LandCorp to test new ideas and solutions and explore how we can extend our influence on sustainable development. We have also fostered industry engagement through design competitions which have produced innovative and sustainable outcomes. Examples of this include the Pilbara Vernacular Handbook and demonstration house, and LandCorp s Gen Y Demonstration House competition. Assessment Tools The use of sustainability rating or assessment tools is a way to demonstrate our commitment to delivering triple bottom line project outcomes that have been verified by a third party. We use the following tools as part of our sustainable development commitment: The Green Building Council of Australia Green Start Communities rating tool in the Alkimos Beach pilot community Urban Development Institute of Australia s EnviroDevelopment various levels of certification achieved for Evermore Heights, Alkimos Beach, Mulataga in Karratha and Carine Rise One Planet Living developed by Bio Regional Australia in White Gum Valley Case Study Pilbara Vernacular Handbook and demonstration house design competition In 2012, LandCorp created the Pilbara Vernacular Handbook to inform future Pilbara projects. The Handbook has been designed to support people working within the Pilbara s land and property development industry, including urban designers, architects, builders, engineers and to support Local Government officers. The Handbook brings together a collection of considerations and suggested strategies aiming to improve built-form design outcomes in the region by: responding to climate; incorporating the natural landscape; building on the Pilbara character and identity; and mobilising for change and innovation. Madigan Estate was selected as the first project to demonstrate the Pilbara Vernacular. To this end we organised a Demonstration House Design Competition which took place in mid to demonstrate the application of the Handbook. The design competition provided an opportunity for the invited architects (Troppo, Gresley Abas and Iredale Pedersen Hook) to showcase the Pilbara Vernacular principles in a demonstration house. Design and features included in the demonstration house; optimal shading, ventilation and other passive devices The building envelope will be protected from solar radiation through orientation and room arrangement. The upper level, sheltered outdoor living area will provide a secondary shade device to the house via a parasol roof to further reduce the heat load on living areas and reduce energy costs associated with air conditioning. The large, sheltered outdoor area to the south of the house provides a comfortable alfresco living space in the cooler months. Deep eaves shield the sun from directly shining through the windows and protect the walls from heat gain. The house makes the most of breezes with wind scoops bringing cooling north easterly breezes into the outdoor living space from the north side of the house, and wind blades to the bedrooms on the northern façade directing the breezes into the bedrooms in the cooler months. Bedrooms oriented to the north, act as a heat barrier to main living spaces during the day, reducing the heat load. It is expected that the passive and mechanical features will result in a reduced running cost for water and electricity consumption facilitating affordable living. 24 OUR SUSTAINABILITY PRIORITIES OUR SUSTAINABILITY PRIORITIES 25

14 OUR BUSINESS Office Sustainability At LandCorp we aim to provide our employees with healthy, productive and environmentally friendly workspaces. Our Office SustainAbility Group promotes the benefits of energy efficiency, recycling and sustainable transport to our staff. We are also committed to the City Switch Green Office program, which supports workplace sustainability. During 2013 LandCorp completed an office refurbishment which delivered several new sustainability initiatives and helped us attain a Green Building Council of Australia 4 Star Green Star Office Interiors v1.1 Certified Rating, representing best practice in environmentally sustainable construction. A subsequent survey demonstrated increased staff satisfaction with regards to layout, views, access to natural light, greenery in the office and improved interaction with colleagues. Health and Safety Staff wellbeing is critical and LandCorp promotes a workplace culture in which health and safety are fundamental. We have a range of comprehensive occupational health and safety related policies and an incident management system known as MyOSH. These initiatives helped increase OHS awareness and culminated in LandCorp receiving Silver Worksafe Accreditation. The improving OHS culture within LandCorp has been clearly demonstrated through the use of MyOSH. Since June 2013, due to the introduction of the new system, there has been a 113 per cent increase in the number of incidents reported and a 56 per cent increase in hazard reports from the previous year. Diversity, Inclusion and Equal Employment Opportunity LandCorp s values collaborate, achieve, respect and adapt guide our internal conduct and our relationships with stakeholders. We are proud to be an equal opportunity employer which promotes diversity of skills, experience and knowledge, as well as culture and social background. Employee Engagement and Wellbeing An engaged workforce ensures workplace harmony, productivity and achievement, and is critical to the successful delivery of corporate strategy. The business has a target staff retention rate of 80 per cent, and in we achieved a retention rate of 86 per cent. Training and Education Our commitment to education and training will enable continual professional growth to meet current and future skills needs. LandCorp is rolling out a new Learning Management System aimed at improving the capture of training activity to better inform our ongoing approach. Governance We aim to uphold the highest standards in all of LandCorp s relationships and to be recognised for achieving our goals through an adaptive, collaborative, respectful and ethical approach. This is guided by a Code of Conduct for all employees and contractors. 26 OUR SUSTAINABILITY PRIORITIES

15 For further information, please visit our website landcorp.com.au/sustainability PERTH HEAD OFFICE Level 6 Wesfarmers House 40, The Esplanade Perth WA 6000 Locked Bag 5 Perth Business Centre Perth WA 6849 T +61 (8) F +61 (8) E landcorp@landcorp.com.au Disclaimer: The information contained in this brochure is in good faith; however neither LandCorp nor any of its directors, agents or employees give any warranty of accuracy nor accepts any liability as a result of reliance upon the information, advice, statements or opinion contained in this brochure. This disclaimer is subject to any contrary legislative provisions. EcoStar is an environmentally responsible 100% recycled paper made from 100% post-consumer waste that is FSC CoC certified and bleached chlorine-free (OCF). The mill operates under the ISO Environmental Management System which guarantees improvement and is PEFC certified for traceability. LandCorp 2014 LAND4704 We acknowledge and respect the Traditional Owners of this country and the diversity of its first peoples. We acknowledge the deep spiritual attachment and relationship of Aboriginal and Torres Strait Islanders to this country and commit ourselves to the ongoing journey of reconciliation.