SUSTAINABILITY REPORT

Transcription

1 SUSTAINABILITY REPORT

2 CONTENTS 1 MINISTER'S MESSAGE 4 2 CEO'S MESSAGE 5 3 ABOUT LANDCORP 6 4 OUR FIRST SUSTAINABILITY REPORT 8 5 EMBEDDING SUSTAINABLE DEVELOPMENT 9 6 MATERIALITY 12 7 ENGAGING WITH OUR STAKEHOLDERS 18 8 OUR SUSTAINABILITY PERFORMANCE Strategic Land Supply and Delivery Metropolitan Economic and Employment Regional Government Priorities Economic Performance Government Advisor Services Delivering Government Policy Partnerships, Relationships and Customers Partnerships and Relationships Customer Satisfaction Supply-chain Sustainability Sustainable Development Design Community Environment Economic Innovation and Demonstration Our Business Office Sustainability Health and Safety Employee Engagement and Wellbeing Training and Education Diversity, Inclusion and Equal Employment Opportunity Governance 128 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 SECTION 1 CHAIRMAN'S MESSAGE SECTION 2 CEO S MESSAGE 5

4 BOUT KEY PROJECTS ACROSS WESTERN AUSTRALIA ANDCORP Head Office Regional Offices KIMBERLEY Ord-East Kimberley Expansion Project Januburu Six Seasons Broome North Waranyjarri Estate Broome Road Industrial BROOME We are the Western Australian Land Authority, trading as LandCorp, a Government trading enterprise established under the provisions of the Western Australian Land Authority Act Our vision is "to lead land development on behalf of the State Government for the benefit of the Western Australian community." 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. As the Western Australian Government s land and property development agency, we operate statewide across residential, commercial and industrial sectors to support regional growth, urban revitalisation and strategic tourism and infrastructure projects. We aim to deliver land, property and infrastructure development which meets the needs of a growing population and changing demographic to help Government achieve its goals and to maximise the level of private sector involvement. This involves the strategic identification, design and implementation of a diverse range of land and 6 SECTION 3 ABOUT LANDCORP infrastructure projects, as well as demonstration initiatives. We aim to deliver land and associated infrastructure that has a lasting and positive impact for all Western Australians. To achieve this we employ a multi-disciplinary team who bring a complementary range of experience to each project. ECONOMIC AND EMPLOYMENT We play a role in supporting the growth of Western Australia s economy by providing sufficient, well-located and well-connected industrial and business land across Western Australia. Through working with others we help build more permanent populations, provide growth opportunities, and improved amenities and services. METROPOLITAN Our work in and around centres of activity, urban infill regeneration, and master planned green field projects involves working with State and Local Government and the private sector to optimise existing infrastructure and create communities with good access to public transport and amenity. REGIONAL We support the growth and revitalisation of regional centres through the provision of suitable residential, industrial and business land that creates new lifestyle opportunities and attracts new residents. By putting important infrastructure in place in our major regional centres we can help address the needs of residents now and in the future. GOVERNMENT SERVICES We provide expert property services to Government by helping to acquire, develop and market individual sites. Our services include the remediation of contaminated sites and property and project management. We also arrange for the preparation and sale of surplus Government sites to the private market on behalf of Government. GASCOYNE Carnarvon NorthWater Carnarvon Cornish Street Light Industrial Exmouth Nimitz Residential Estate PERTH AND PEEL Cockburn Central Alkimos Claremont on the Park Rockingham City Centre Western Trade Coast Australian Marine Complex Latitude 32 Forrestdale Business Park Cockburn Commercial Park Cockburn Coast Mangles Bay Marina Tourism Precinct Meridian Park, Neerabup Perry Lakes Mandurah Junction Mandurah Ocean Marina SOUTH WEST Collie Shotts Buckingham Way Bunbury Waterfront Harvey Kemerton KARRATHA PORT HEDLAND PILBARA Gap Ridge Industrial Estate Hedland Junction Wedgefield Industrial Estate Newman Light Industrial Area WHEATBELT Avon Industrial Park Various RDAP Projects including: PERTH Dowerin Residential Dalwallinu Residential Hyden Residential BUNBURY Ashburton North Strategic Industrial Area Karratha City Centre Baynton West Madigan Road Nickol West Estate MIDWEST Batavia Coast Marina, Geraldton Oakajee Morawa Light Industrial Morawa Residential Narngulu Industrial Estate GOLDFIELDS-ESPERANCE GreenView Residential Estate, Kalgoorlie Karlkurla Rise, Kalgoorlie Anzac Drive Industrial Estate GREAT SOUTHERN Albany Waterfront Emu Point Katanning Mirabeena Industrial Area Yerriminup Industrial Area East Port Hedland/Marina Precinct Newman Town Centre East Newman Residential Estate Mulataga South Hedland Town Centre SECTION 3 ABOUT LANDCORP 7

5 EMBEDDING SUSTAINABLE DEVELOPMENT OUR STRATEGY Our commitment to sustainable development is underpinned by the Western Australia Land Authority Act (1992) which requires us to take account of and balance social, economic and environmental outcomes. This report is a conscious step to further our commitment to take account of our sustainability performance. Since 2007 LandCorp has defined sustainable development through the integration of our four Sustainability Elements: Environmental Responsibility, Community Wellbeing, Design Excellence, and Economic Health. These Elements form our framework to achieve sustainable development across a range of projects in the Metropolitan area and throughout Regional Western Australia. The land development industry faces increasing challenges and opportunities with land, resource and infrastructure constraints, population growth, increasing quality of life expectations and the delivery of sustainable development. We are pleased to present our first sustainability report in accordance with the Global Reporting Initiative (GRI) G4 Sustainability Reporting Guidelines. This report presents LandCorp s sustainability performance for the financial year. It should be read in conjunction with LandCorp s Annual Report which discloses our financial performance and corporate governance. We chose to develop a Sustainability Report using the GRI G4 Guidelines. We believe it provides us with a framework for enhanced accountability over our nonfinancial impacts and performance, as well as increased transparency for Government, industry, community stakeholders and our staff. Importantly, it will also enable continuous improvement; through monitoring and measurement we will enhance the understanding of our performance and our ability to manage, change and improve. Continuous improvement is being embedded through the alignment of our corporate and sustainability strategy development with our sustainability reporting cycle processes. This will evolve over time as sustainability reporting becomes embedded in our business. In developing our first report, the focus has been to undertake a comprehensive materiality analysis process to identify the most important and significant aspects for LandCorp to report on. These aspects also provide us with the areas to concentrate on so that we can improve our sustainability performance over the next financial year. Throughout our focus will be on identifying methods to better capture non-financial information across the business in a consistent and user-friendly way. Once we have an improved process and system in place for capturing information we will seek external assurance for our Sustainability Report. We expect this to occur in 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, adaptable places that contribute to a distinctive identity and sense of place. 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. 8 SECTION 4 OUR FIRST SUSTAINABILITY REPORT SECTION 5 EMBEDDING SUSTAINABLE DEVELOPMENT 9

6 PROJECT APPROACH LandCorp have a series of design and sustainability tools, policies and guidelines which provide direction for the improvement of project sustainability performance across the lifecycle of projects. Some of these tools have already been embedded into our business systems however there are further opportunities to ensure that sustainable development approaches are fully integrated into the business. LANDCORP'S KEY SUSTAINABILITY POLICIES, TOOLS AND GUIDELINES Stakeholders are also increasingly expecting LandCorp to lead sustainable land development and demonstrate innovative approaches to meet future community needs and support Western Australia s growth. Our sustainability vision is to be a leader in facilitating and delivering sustainable development by providing value for present and future generations across the four elements: community wellbeing, design excellence, environmental responsibility, and economic health. We recognise that by considering these four elements in an innovative and integrated way we have the greatest opportunity to deliver more sustainable land development outcomes for the State Government. To achieve our vision, sustainable development values and approaches will be embedded into our culture, procedures and business activities. In the next year we will be rolling out Sustainability Awareness Training to all staff to develop a culture of sustainable development. To optimise sustainable development outcomes we build on natural resources, intrinsic site qualities and place-based knowledge. As our journey continues to evolve we will develop new strategies to address emerging land development challenges and opportunities. We will focus on demonstration projects that may de-risk initiatives for the private sector, as well as facilitating uplift in sustainable development outcomes across our projects to improve and enhance value for communities. We are committed to demonstrating, measuring and tracking our sustainable development performance using the GRI Sustainability Reporting Guidelines. This will enable us to better communicate our sustainable development impact and performance to Government, industry, community stakeholders and staff. Our Sustainable Development Plan titled Paving the Way outlines four key objectives: Embedding sustainability into the business: we are focused on embedding sustainable development values and approaches into the business by managing change to culture, processes, procedures and operations in order to improve project sustainability outcomes; Strategic sustainability focus: we aim to improve our sustainable development performance by strategically focusing on material aspects which span environmental, design, community and economic areas; Demonstration projects: we have a program of innovation through demonstration projects and initiatives. We use our innovative and integrated sustainability approach across environmental, design, community, and economic areas to optimise outcomes in our demonstration projects; and Sustainability reporting: our strategy is underpinned by our commitment to measure, track and demonstrate sustainable development performance annually in accordance with the GRI G4 Guidelines. We seek to enhance accountability, transparency and continuous improvement for our sustainable development performance and improve our capture of non-financial information. The Landform and Biodiversity Retention Policy provides guidance to help optimise opportunities to retain natural land form and protect biodiversity in our land development projects The Urban Water Management Policy ensures our projects achieve better urban water management outcomes through the application of best practice integrated water system management practices and water sensitive urban design principles at all land development stages The Pilbara Vernacular Handbook is a guide to design principles suited to the Pilbara. It supports the development of context appropriate housing and public realm, and outlines strategies for working with the landscape, environment, climate, character, culture, sense of place and lifestyle The Climate Responsive Design Policy provides guidance to ensure our subdivision projects maximise the opportunity to deliver climate responsive design at the subdivision and building level The Affordability Policy provides direction to bring affordable land to the market and reduce housing stress for purchases and tenants. In addition the Policy focuses on affordable living ongoing living costs including electricity, water and transport We have the opportunity to use a suit of Assessment Tools to guide, assess and improve the sustainability performance of our projects. Includes: UDIA EnviroDevelopment, GBCA Green Star Communities and Building rating tools and One Planet Living) The Design Guideline Template System provides a consistent approach for the content and layout of our design guidelines, whilst also allowing for flexibility to respond to the different climatic zones throughout Western Australia The Project Design Review process improves the quality of design and sustainability in our projects through the advice and engagement of independent industry professionals to review projects at key stages of planning and development The Urban Water Management Policy ensures our projects achieve better urban water management outcomes through the application of best practice integrated water system management practices and water sensitive urban design principles during all land development stages The PRECINX modelling tool can be used during early project planning to inform decision making and optimise outcomes for carbon, energy, water, transport and their contribution to living and housing affordability Guidelines for Aboriginal participation in WA civil construction and landscaping industries aims to build relationships; recognise, respect and respond to Aboriginal culture; and create and encourage education and employment of Aboriginal people A Guide to Affordable Housing Initiatives is a resource that outlines initiatives to assist with the development of project specific affordable housing strategies and affordable housing targets Managing Relationships Guide to successful stakeholder engagement outlines the principles underpinning our approach and supports a consistent and shared approach to managing stakeholder relationships and designing and delivering stakeholder engagement Specialised advice from Sustainability Champions. We have in-house skills across design, sustainability, environment, community engagement, indigenous relations, affordability, research which provide strategic oversight and support to our projects 10 SECTION 5 EMBEDDING SUSTAINABLE DEVELOPMENT SECTION 5 EMBEDDING SUSTAINABLE DEVELOPMENT 11

7 As a first time reporter, this past year we have concentrated on developing a materiality analysis to identify the most important and significant aspects to our business and our stakeholders. This analysis was led by an independent sustainability consultancy. The materiality analysis process aligned with the guidance provided in the GRI G4 Guidelines and was used to define the content of the report. As a first step, we undertook an assessment of the impacts resulting from our activities to identify our material aspects. This process drew from the guidance provided in 'AccountAbility's five part materiality test' and consisted of: reviewing our risk and regulation requirements; reviewing our strategy and policy commitments; considering the sustainability disclosure of selected peers; reviewing the relevant issues reported in the media over the reporting period and key issues reported by industry and professional associations for the sector; and undertaking interviews with members of our executive team. 12 SECTION 6 MATERIALITY This provided us with an indicative list of material aspects, which we then validated and prioritised through faceto-face interviews with 15 stakeholders from private industry, Government, and the community sector. In order to further prioritise the material aspects, we then applied documented criteria to determine significance based on the organisation s economic, environmental and social impacts; and the potential to substantively influence the assessments and decisions of stakeholders. As part of this process, we also developed a better understanding of the major stages of our value chain and the extent to which we have the capacity to control and/or influence the material aspects within the value chain. Further workshops with internal stakeholders were conducted to validate and agree the boundaries and level of coverage for each aspect. This enabled us to define the content of our first sustainability report, which was then signed off internally by our senior decision makers. MATERIALITY MATRIX HIGH STAKEHOLDER CONCERN Carbon and energy Water Sustainable urban and built-form design Economic performance Affordability 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 Customer satisfaction Government advisory service Indirect economic outcomes Indigenous relations In total, 24 material aspects were prioritised and grouped LOW CONCERN FOR LANDCORP HIGH into five key areas which align to Strategic Land Supply and Delivery Sustainable Development LandCorp s Corporate Strategic - Metropolitan - Sustainable urban and built-form design Development Areas. - Regional - Community engagement The Materiality Matrix shows - Economic and Employment - Community development the results of our materiality - Affordability Government Priorities - Indigenous relations assessment process. - Delivering Government policy - Biodiversity - Economic performance - Water - Government advisory service - Carbon and energy Partnerships Relationships and Customers - Partnerships and relationships - Customer satisfaction - Value chain sustainability - Waste - Indirect economic outcomes - Innovation Our Business - Office sustainability - Health and safety - Employee engagement and wellbeing - Training and education - Diversity, inclusion and equal employment opportunity - Governance [G4-18; G4-19; G4-20; G4-21; G4-26; G4-27] [G4-18; G4-19; G4-20; G4-21; G4-26; G4-27] SECTION 6 MATERIALITY 13 Waste Office sustainability Employee engagement and wellbeing Training and education Governance Diversity, inclusion and equal employment opportunity Health and safety

8 We expect that our material aspects will evolve over time and as such we will review our materiality annually. We believe that by proactively managing these areas we position ourselves to improve our sustainability performance. Many of the material issues that were rated as important by our stakeholders, through the 15 interviews were expected. In particular affordability, design (housing diversity, density and sustainable design), water use, carbon emissions and energy use, and innovation. However, the interviews also identified an important gap in our internal materiality assessment with a greater focus on waste management and our broader economic impact which at that time had not yet been captured. We expect that our material aspects will evolve over time and as such we will review our materiality annually. We believe that by proactively managing these areas we position ourselves to improve our sustainability performance. Following the release of this report, we will undertake a process of review to assess the material aspects reported to inform the next reporting cycle. The interviews also provided valuable feedback on stakeholder expectations of LandCorp generally, and for the format of the report. Specifically, it highlighted that stakeholder s expected LandCorp should be a leader in sustainable development and innovation in the land and property development industry. Stakeholders also expected sustainability to be an integral part of business as usual and that there would be a consistent approach. Stakeholders also thought that it was important for LandCorp to communicate our sustainability position. They also wanted to learn something from this report through case studies, examples and understanding our challenges. In response, we have provided examples of this work and the challenges we face throughout this report. I can't help thinking that LandCorp is in a position to lead the development community by taking risks that developers are in the first instance unwilling to take. Industry Body I think in some cases LandCorp is expected to show innovation and those sorts of things as a leader in the industry. Public body I see them as potential leaders because they can do demonstrations to the industry which right now might not be economically viable for the industry but LandCorp could lead, that s the difference. Industry Body 14 SECTION 6 MATERIALITY [G4-18; G4-19; G4-20; G4-21; G4-26; G4-27] [G4-18; G4-19; G4-20; G4-21; G4-26; G4-27] SECTION 6 MATERIALITY 15

9 THE IMPACT OF OUR MATERIAL ISSUES ALONG OUR VALUE CHAIN We believe our people 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. NUMBER OF PROJECTS ACCORDING TO THE PROJECT VALUE CHAIN PHASES 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. START-UP: 75 INITIATION AND DEFINITION: 11 EXECUTION AND BUILT-FORM: 203 EXECUTION DEFINITION We create value at this stage by engaging industry expertise in the planning and design consultancy industry. We assemble specialist project teams of internal staff and external consultants who integrate material aspects relating to environment, community, economic and design, into concept and detailed planning on a project basis. As a land developer, significant actual or potential impacts on local communities can occur across all locations as a result of LandCorp changing the local area. As such this is the stage where we create the most direct value and impact through the creation of a plan for development in collaboration with the local community and stakeholders. KEY ISSUES/ IMPACTS Supply-chain procurement and relationships Statutory approvals Environmental strategies (water, biodiversity, Economic strategies (local employment, carbon, energy, waste use and management) commercial, industrial and Community strategies (affordability, business opportunity) community engagement, community Sustainable urban, landscape and built-form development and placemaking and design including design reviews indigenous relations) Relationship management and Innovation and research stakeholder engagement We create value at this stage by providing business and jobs in contractor and construction industries. During this phase we establish economic and service infrastructure including public open space. We influence the environmental performance and social value of our supply-chain through our procurement process. START-UP This stage has far-reaching impacts through our value chain, as it includes all major decisions about which project we will undertake. In consultation with wider Government we identify opportunities for strategic land supply and delivery and partnerships to deliver against broader Government Policy and enabling growth in Western Australia. KEY ISSUES/ IMPACTS Environmental and social impacts and opportunity linked to project location Governance and management Innovation and research Pre-feasability and context assessment Relationship management and stakeholder engagement KEY ISSUES/ IMPACTS Supply-chain procurement and relationships Carbon emissions Demolition waste management 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 Through land development we add value to and influence the built environment through our procurement process, design review process and design guidelines. We also work with the community housing sector, builders, and the development industry to provide affordable housing choices. KEY ISSUES/ IMPACTS INITIATION This stage represents a key decision-making point which has far-reaching impacts throughout our value chain, as it identifies the high level approach for our projects. At this stage, we consider and test high level sustainability opportunities and create the aspirational vision and governance structure for projects in collaboration with Local Government and stakeholders. KEY ISSUES/ IMPACTS Site and context/ 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 END-USE Supply-chain procurement and relationships Built-form design Direct value and impact of our developments occurs during this stage, driven by the behaviour of our customers (i.e. energy and water use efficiency, reduction of waste, local employment self-containment). We try to add value to household sustainability through the application of our design guidelines. To improve our practice and further add value we research customer satisfaction with our sales marketing and purchase process, and are starting to research satisfaction with living within the estate and community. KEY ISSUES/ IMPACTS Industry attraction and place activation Employment self-containment Energy use Uptake of community development/ health Water use and wellbeing initiatives Material use and waste generation Community engagement Innovation and research Research and customer satisfaction Innovation and research Relationship management and stakeholder engagement 16 SECTION 6 MATERIALITY [G4-18; G4-19; G4-20; G4-21; G4-26; G4-27] [G4-18; G4-19; G4-20; G4-21; G4-26; G4-27] SECTION 6 MATERIALITY 17

10 NGAGING ITH OUR TAKE- OLDERS We are held accountable by our shareholder (State Government) and by our stakeholders. We are committed to meeting their expectations to deliver long-term, positive outcomes for Western Australia. We work closely with and engage our stakeholders, and through our business activities we have the opportunity to collaborate with experts and contributors across social, economic, and environmental disciplines. OUR STAKEHOLDERS HOW WE ENGAGE KEY AREAS OF INTEREST GOVERNMENT We are committed to working with all levels of Government to deliver Government priorities and support long-term growth in Western Australia PRIVATE SECTOR, INDUSTRY AND RESOURCE We work together to understand and manage the environmental, social and economic impact of our activities Engagement with our Government stakeholders is guided by targeted relationship management and stakeholder engagement plans which are developed and reviewed annually. State Government stakeholders are engaged formally and informally at both a strategic and operational level. Including: face to face, committee and taskforce meetings; milestone project meetings; open dialogue boardroom lunches; and industry, corporate and project events. Metropolitan and regional Local Government, and Regional Development Commissions stakeholders are engaged formally and informally through: regular face-to-face, milestone project meetings; open dialogue Boardroom lunches; industry, corporate and project events; board and executive regional trips and project site visits. Engagement with our private sector, industry and resource stakeholders is guided by targeted 'relationship management and stakeholder engagement plans' which are developed and reviewed annually. Our corporate and operations project based relationships with our partners (developers and builders), consultants, contractors, developers, builders, selling agents and resource companies involve day to day communication and attendance at project and operational meetings, milestone communication, and industry forums and events. We are members of key industry and business associations including but not limited to the Urban Development Institute of Australia, Property Council Australia, the Master Builders Association, Housing Institute Australia and Real Estate Institute of Western Australia. The Chamber of Commerce and Industry is our key business association. Our staff participate on many industry committees such as the Urban Development Institute of Australia s Urban Planning, Infrastructure, Outlook Committees, and the Property Council s Industrial Property, Planning and Urban Economics and Women in Property Committees. There is an expectation that we work across Government in an open and transparent way to achieve strategic land supply and delivery, and deliver against wider Government policy objectives and Government priority projects. LandCorp continues to provide Government advisory services. Stakeholder engagement and day to day contact highlights this need. For example we currently have one LandCorp officer seconded to the Department of Lands several days a week to assist with property advice. There is also an expectation that we will manage community and sustainability challenges of density, affordability, amenity and ongoing management with Local Government. Interviews with 15 stakeholders from industry, community sector, and Government identified expectations that LandCorp should be a leader in sustainable development and innovation in land, property and infrastructure delivery and provide a consistent approach. Research in 2013 with 283 stakeholders representing the private sector including developers, contractors, consultants, industry associations, selling agents and resource companies identified opportunities for LandCorp to improve overall performance. Issues raised related to activities within our supply-chain and partnership and relationship activities. These were: improving the Expression of Interest and tender process, improving consistency of project management, more collaboration with stakeholders, more communication and relationship building opportunities, improve the efficiency of decision making, and reduce competition with the private sector. 18 SECTION 7 ENGAGING WITH OUR STAKEHOLDERS [G4-24; G4-26; G4-27] [G4-24; G4-26; G4-27] SECTION 7 ENGAGING WITH OUR STAKEHOLDERS 19

11 OUR STAKEHOLDERS HOW WE ENGAGE KEY AREAS OF INTEREST OUR STAKEHOLDERS HOW WE ENGAGE KEY AREAS OF INTEREST COMMUNITIES We endeavor to create value for the communities in which we operate Engagement with communities is guided by our Guide to Successful Stakeholder Engagement and Relationship Management which outlines the principles and approach to engage the community within our projects. We take a risk based and proactive approach to community engagement which often provides opportunities to mitigate and/ or address community concerns. Communities also provide us with feedback through letters, and social media. Our Handling Public Feedback Policy ensures we capture positive and negative feedback from our stakeholders and address this appropriately. We also engage with indigenous communities, traditional owners, Aboriginal Corporations and Native Title Groups around our operations and developments as well as to support the development of our Reconciliation Action Plan. We work closely with not-for-profit organisations and Government agencies to investigate opportunities to support the local community and vulnerable groups, including community housing providers and the Disability Services Commission. We undertake research partnerships to investigate innovative solutions for our future projects. For example we are a contributing partner in the Cooperative Research Centre for the Water Sensitive Cities consortium, and we have a Memorandum of Understanding with the Australian Urban Design Research Centre. We engage with media and communities generally through media releases, marketing and advertising to provide information about our projects. Key community concerns and themes from community consultation are around the following sustainability areas: density, social housing, environmental (impact on existing public open space), traffic and parking, and loss of trees. We are also aware of the broader global trend of growing community expectations of Government to deliver high quality environmental, social and economic outcomes. CUSTOMERS 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 EMPLOYEES Our staff provide our point of difference and are critical to our success We use marketing, advertising and media to provide information about our projects to our potential customers. Customers provide us with feedback through letters, , social media and our Handling Public Feedback Policy ensures we capture positive and negative feedback from our stakeholders and address this appropriately. Residential customers are contacted within three months of settlement regarding their satisfaction with the sales, marketing and purchase process. This information has been collected for the last two years, with 2013 being the most recent annual results. We have also recently started research on two projects to understand the satisfaction of our customers with living within a LandCorp estate and to assess the success of various place-making and community initiatives. Future iterations of this research will be conducted on an as-required basis. As at June 2014, LandCorp has 224 employees, with the majority of staff based at our Perth head office. We also have a regional presence with one employee in each of the following offices: Karratha; Broome; Port Hedland; Bunbury and Fremantle. We conduct internal staff surveys to gain a better understanding of staff opinions and collect feedback. In our survey focused on Gender Diversity and Employee Equity and achieved a 70% response rate. Customer satisfaction with the sales, marketing and purchase process as well as satisfaction with living and working within an estate and community. Employees require a workplace where health and safety is a priority, where diversity, inclusion and equal employment opportunity are valued, where there are training and education opportunities to further develop skills and expertise and high levels of engagement and wellbeing. We are committed to collaborating with all levels of Government, industry, private sector and resources, communities and customers as we seek to better understand our stakeholder s business, constraints, needs, concerns and expectations of LandCorp. 20 SECTION 7 ENGAGING WITH OUR STAKEHOLDERS [G4-24; G4-26; G4-27] [G4-24; G4-26; G4-27] SECTION 7 ENGAGING WITH OUR STAKEHOLDERS 21

12 STRATEGIC LAND SUPPLY AND DELIVERY UR USTAIN- BILITY ERFOR- ANCE 8.1 STRATEGIC LAND SUPPLY AND DELIVERY LandCorp takes a long-term view of State-wide needs, and acquires and develops land to facilitate supply across our three delivery programs: Regional, Metropolitan and Economic and Employment. Our Metropolitan and Regional programs are closely aligned with our Economic and Employment program to leverage development synergies and maximise opportunity. As part of this, we work together with other parts of Government and the private sector, combining efforts and resources to deliver strategic land and infrastructure projects across Western Australia Metropolitan Commitment Our role in the Metropolitan area is to assist with commercial, retail and residential land supply in line with the State s Strategic Planning framework Directions 2031 and Beyond. The focus is on undertaking or facilitating the development of Government prioritised urban projects in Activity Centres and corridors, as well as supplement strategic land supply through a mix of smaller urban infill and greenfield developments. Our vision is to demonstrate best practice and use our limited market share to lead innovation and meet State needs. 22 SECTION 8 OUR SUSTAINABILITY PERFORMANCE SECTION 8 OUR SUSTAINABILITY PERFORMANCE 23

13 STRATEGIC LAND SUPPLY AND DELIVERY Trends The dominant factor that changed in the last half of , and was expected to impact further in , was an improvement in consumer sentiment and confidence. This created an increase in demand and with it an increase in the median house price in Perth (in March 2013 it rose to $510,000). Ongoing high rents and rising housing prices put further pressure on affordability. As a result, LandCorp identified the need to monitor its supply of land, step up speed to market release strategies and re-adjust its capital program. Perth s residential property market is however starting to show some signs of slowdown on the back of a very Our best performing project was Alkimos Beach, however there were several others that had excellent years, including Baldivis Evermore Heights, Harvest Lakes, Carine Tafe and The Springs. strong The median house price decreased slightly in the first three months of 2014, however it is still 5% higher than 12 months ago. The number of listed properties for sale increased and rental vacancy rate is above 4%, with a significant increase in the number of listed properties for rent in the past few months. The impact of this remains a key risk for Perth s property market. In addition, domestic and commercial traffic congestion is an emerging issue. This has brought into sharp focus Perth s growth patterns and the State transport plan s capacity to accommodate Western Australia s burgeoning population. LandCorp is set to play a significant role in alleviating the situation through its work in urban infill, Activity Centres and increasing density along activity corridors, associated with good public transport and potential light rail. We are also in the unique position to coordinate the release of residential and nearby industrial land to improve employment self-sufficiency (local jobs filled by local residents) and more importantly, improve employment selfcontainment (proportion of workers who work locally). Key releases in and corresponding Dwelling Unit Equivalents (DUE s) ALKIMOS (339) CLARKSON (64) CRAIGIE (47) Approach Our Metropolitan program Strategy provides high-level strategic guidance, prioritisation of projects, and provides alignment in order to deliver land supply and implement Government priorities. The strategy also includes work that is based on planning sectors adopted in Directions 2031, which coincide with the Metropolitan Region Scheme sectors: central; north-west; north-east; south-west; and south-east. The Metropolitan program has three focus areas: 1. We play a role in supplementing strategic land supply throughout the Metropolitan area; 2. We facilitate the development of complex and strategic Activity Centre projects; and 3. We facilitate the development of infill developments and masterplanned greenfield projects with close alignment to the Government s Economic and Employment Land Strategy. LandCorp s role is often one of facilitation, undertaking the early de-constraining work to enable the private sector to step in when projects become more viable. The best example of this work is in and around centres of activity in Metropolitan Perth and the revitalisation of suburbs through infill development. By creating vibrant communities around existing transport corridors and amenities, LandCorp can help Government to achieve affordability and density targets. Specifically, playing our part in supporting the State s current and future land supply projections (47% infill and 53% greenfield targets). Our Metropolitan program delivered land for 1,090 new dwelling unit equivalents CLAREMONT (178) COLBELLUP NORTH LAKE (91) MUNSTER (28) CARINE (116) CHAMPION LAKES (46) HARVEST LAKES (50) ROCKINGHAM CITY CENTRE (30) WAIKIKI (77) 24 SECTION 8 OUR SUSTAINABILITY PERFORMANCE SECTION 8 OUR SUSTAINABILITY PERFORMANCE 25

14 STRATEGIC LAND SUPPLY AND DELIVERY Performance Our Metropolitan program delivered land for an equivalent of 1,090 dwellings in The sales in the Metropolitan program have increased significantly on last year, due to strong demand for LandCorp projects. With projects such as Alkimos, Eglinton, Cockburn Coast and Karnup, as well as several smaller infill projects, we expect to have strong sales in coming years. Over specialist property advisory services were applied to a wide range of Government agencies' properties including feasabilities for a Hay Street Hotel Site, CBD Hotel Incentives, Bassendean Oval redevelopment, land owned by Department of Agriculture and Food Western Australia, Department of Health surplus hospital sites, Gosnells Town Centre redevelopment and Mount Claremont redevelopment. Future Focus There are a range of high level strategic Government policies and initiatives that will continue to shape the direction and growth of LandCorp s Metropolitan program in and beyond. This is inclusive of State Planning Policy, Government reform and major infrastructure delivery. We will continue to collaborate with other Government agencies, specifically Local Government, the Western Australian Planning Commission and Department of Housing to deliver Government policy. We will apply a portfolio approach to Activity Centre redevelopment to identify and achieve synergies between strategic centres; we will also link Activity Centre and employment land to deliver a holistic approach to regeneration precincts. We will continue strategic land delivery including acquisition and land swaps of broad acre land in growth corridors identified for major infrastructure and transport upgrades, where program synergies can be achieved (north-east and south-east sectors). LandCorp brings property expertise to asset disposal and development of surplus assets for the State. At the request of Government, LandCorp will continue to add value to surplus State assets through a de-risking process and preparing sites for private sector purchase and development. This work can involve re-zoning, remediation and works. For some challenging sites, there are often more complex processes required to prepare the asset to achieve the optimal return to Government, with this work occurring prior to disposal. In some instances further development of sites in Perth, by LandCorp, creates additional returns to the State via LandCorp payments of taxes, tax equivalents and dividends. In general, our de-constraining and development of surplus property assets in Perth, yields the State a greater return on its asset, compared to an immediate sale in a constrained (risk laden, sub-optimal) condition. Challenges and Opportunities A key short to mediumterm issue for the program will be the land supply pipeline with reducing availability of Government land and requirements for environmental offsets. With increasing resource and infrastructure constraints, population growth and increasing quality of life expectations we will continue to explore new innovative ways to address the infrastructure requirements, as well as the higher costs to deliver Activity Centre and infill developments, whilst maintaining economic performance and a leadership role in supporting affordable and sustainable development. This includes, meeting affordability targets and Aboriginal participation targets. Other issues include commercial independence, retaining a customer focus, and speed to market. We will continue to be responsive to the market context, and stakeholder and Government needs to address these key challenges and opportunities. Our Metropolitan program delivered land for 1,090 new dwelling unit equivalents against the target of 1,250, primarily due to several stages (Baldivis, Harvest Lakes, Champion Lakes) being released to the market in , ahead of schedule, due to strong demand with settlements occurring in Our Metropolitan program delivered above their revenue forecast of $218m achieving $248m for This was the best performance by the program in a financial year. Our best performing project was Alkimos Beach, however there were several others that had an excellent year, including Baldivis Evermore Heights, Harvest Lakes, Carine TAFE and The Springs. We provide approximately 4% of Perth s residential land market. We are also focusing on delivery of various Activity Centres including The Springs, Claremont on the Park, Rockingham City Revitalisation, Cockburn Central and Cockburn Central West, as well as numerous smaller infill projects. 26 SECTION 8 OUR SUSTAINABILITY PERFORMANCE SECTION 8 OUR SUSTAINABILITY PERFORMANCE 27

15 STRATEGIC LAND SUPPLY AND DELIVERY Economic and Employment Commitment The Economic and Employment Lands program supports the development of Western Australia by delivering industrial and business land, and associated infrastructure to improve supply and affordability of land for business. As part of this we implement Government strategy and facilitate an increase in private sector participation in land delivery. Our new vision is that 'by 2025 the majority of affordable industry land areas will be met by the private sector, the Government s role through LandCorp being to support private sector delivery, directly address areas of market failure through major industrial areas and develop and manage strategic infrastructure development to underpin State growth'. Trends Large scale cost cutting in the mining sector led to slowing market conditions in , in particular regional projects (Kimberley and Pilbara) with observable flow-on impacts to regional cities and Perth. Business confidence was soft in Perth and sentiment impacted by the decisions to defer projects or advance alternate proposals. This focus on cost cutting from major operators will encourage future activity in the resources sector at more sustainable levels. Development is mainly pre-commitment driven for large buildings with very few developers in the market building speculatively. New supply levels, in aggregate, have dropped for industrial land in the short to medium term, stocks of land rose due to previously released land being unsold. Demand for business and industrial land is expected to increase over the next five years, where Industrial activity is forecast to underpin further State growth. Business and industrial land needs are changing. For example demand is increasing for larger lot sizes and buildings (predominantly LandCorp s target market). Developments are expected to have increased amenity and be co-located with supporting businesses. There is also demand for more office space, increased warehouse size, more hardstand areas and a requirement for excellent access to road and rail infrastructure. Approach LandCorp s economic and employment program identifies short, medium and longer term actions and tactics, which combine to address land supply, affordability and strengthening private sector activity throughout the State. Due to the changes in business and industrial land needs we undertake regular monitoring and analysis of economic indicators and track land availability and supply quarterly to best meet future needs (i.e. monitoring sectors, lot sizes, prices and business or industry target markets). We also have an in-house rule of thumb to help assess business investment economic output, employment and job creation from our industrial developments based on historic industrial developments (refer example: research to support our industrial projects). We play a key role in bridging the gap between public and private sectors within the industrial land space as an implementation agency. Working with key agencies such as the Department of State Development, Department of Commerce, Department of Planning, Department of Regional Development and Department of Lands, LandCorp assists in working across Government, with Local Government and the private sector to deliver land for economic and employment land uses. The Department of State Development is the lead policy agency for the Heavy Use Industry Land Strategy (HUILs), which aims to deliver project ready land in priority areas across the State. The focus is on Strategic Industiral Areas including Anketell, Ashburton North and Boodarie. LandCorp is the implementing agency and has variously progressed master planning and investigations to secure preliminary approval or address site constraints. The Western Australian Planning Commission and Department of Planning are the lead policy agencies for the Economic and Employment Lands Strategy: non-heavy industrial (EELS), which aims to deliver project ready land in the Perth region over the next 20 years. LandCorp is an implementation/ facilitation agency and in we have worked to support the Commission and Department on addressing constraints to future development. Priority sites include South Bullsbrook, Hazelmere, Forrestfield, the Maddington Kenwick Strategic Employment Area and Whiteman. As part of the EELS program we also released lots to market at Flinders Precinct, Bibra Lake Cockburn Commercial, Wangara Enterprise Park and Rockingham Industry Zone in Perth s Metropolitan area. LandCorp also continued to make land available at Gap Ridge Industrial in Karratha, and Hedland Junction in the Wedgefield industrial area in Port Hedland. In Perth s Metropolitan area, LandCorp s land holdings are primarily in the south west corridor, around the Western Trade Coast. Other significant projects include Neerabup s Meridian Park in the north west corridor and Forrestdale Industrial Park in the south east corridor. These projects are expected to be key focus areas for the EELS program in coming years. In Perth, LandCorp actively avoids operating where the private sector is willing and able to efficiently supply industry land. As such we address market failure. While in overall terms LandCorp supplies less than 30% of total lot production, LandCorp tends to be a significant supplier of larger lot configuration in masterplanned estates. Importantly, the sites for future land supply to Perth (under the Western Australian Planning Commission s EELS) are largely held in private ownership and LandCorp has a (behind the scenes) facilitation role to work with private developers to advance delivery of their land to the market. In many regional communities, LandCorp is the major supplier of land for light, general and special industrial purposes. Our long term aim in these communities is to secure private developers interest in these local economies. In the larger regional centres, LandCorp is only one of many suppliers of general industry land. Private developers are already meeting well over 50% of land supply for light and some other industry land, again our role is one of facilitation and advocacy to support private delivery of land to the market. 28 SECTION 8 OUR SUSTAINABILITY PERFORMANCE SECTION 8 OUR SUSTAINABILITY PERFORMANCE 29

16 STRATEGIC LAND SUPPLY AND DELIVERY LandCorp continued to lead major land and infrastructure projects within the Western Trade Coast (WA s premier industrial area comprising the Rockingham Industry Zone, Kwinana Strategic Industrial Area, Australian Marine Complex and Latitude 32). $56m in sales for the Economic and Employment program in general industrial lots released in HEDLAND JUNCTION GERALDTON NARNGULU Performance LandCorp s industrial land sales in were below those achieved in , primarily due to slowdown in the sales of Pilbara based projects, Karratha Gap Ridge and Port Hedland Wedgefield. The Economic and Employment program fell short of its land sales target ($70m) and achieved $56m in sales for While releases at Pilbara estates have slowed, there is strong demand at Flinders Precinct, Forrestdale and Bibra Lake, as well as at Rockingham Industry Zone, Neerabup, and final lots at Wangara ensured that land release delivery targets were exceeded. Economic and Employment program released 44 general industrial lots, above the targeted 27. LandCorp met its target to support the Industrial Lands Supply Taskforce advance de-constraining 11 significant and priority industrial sites in the Perth area Our top selling project in Perth was Flinders Precinct. That is a significant result in a new estate and is a positive signal for this major project in the future. LandCorp met the milestones for the planning and delivery of the major redevelopment project at Latitude 32 (governed by the Hope Valley Wattleup Redevelopment Act) PERTH MERIDIAN PARK WANGARA ENTERPRISE PARK BIBRA LAKE COCKBURN COMMERCIAL FLINDERS PRECINCT ROCKINGHAM INDUSTRIAL ZONE We met the requirements for progressing towards 'project ready' status on strategic industrial areas in regional Western Australia (e.g. Ashburton North, LNG Precinct, Kemerton, Oakajee) LandCorp released new general industry land to the market in Pilbara Cities Karratha and Port Hedland KARRATHA GAP RIDGE We continued to directly supply industry land in Perth through Wangara, Neerabup, Flinders, Rockingham and Cockburn Commercial estates. LandCorp continued to lead major land and infrastructure projects within the Western Trade Coast (Western Australia s premier industrial area comprising the Rockingham Industry Zone, Kwinana Strategic Industrial Area, Australian Marine Complex and Latitude 32) We continued work on meeting demand for light industry land in many regional communities across the State These positive results were not achieved by LandCorp alone, lead policy agencies (Department of State Development, Department of Commerce, Western Australian Planning Commission and Department of Planning) continued to support LandCorp and its projects. These agencies are a significant contributor and equal partner in the work undertaken to achieve major project milestones. Future Focus We anticipate that our role will change over the next decade and beyond. In the next 10 years LandCorp will increasingly become the implementation agency to demonstrate the Government s strategy with the lead policy agencies setting the policy directions and frameworks. LandCorp will intervene directly by exception in general industry and light industrial land sectors. For example where there is a Government land holding capable of significant supply; a complex site requiring redevelopment; strategic industrial areas; or where Government develops and retains common use infrastructure and land for private sector use through leasehold arrangements. We will also actively encourage private sector investment and participation in the delivery of land for strategic, general, special and light industrial land throughout the State. We will work to ensure the total supply of suitable sized and located land for lease and purchase meets the demand for land throughout the State. In addition through our strategy we will continue to play a significant role in the delivery of Government policy and work in partnership with lead agencies to achieve whole of Government outcomes for the State. We will add value to the Governments investment in strategic land and common use infrastructure specifically through asset management and leasing within strategic industry areas. We will seek to address land affordability, drive delivery costs down and increase the State s competitiveness relative to eastern states of Australia, as well as investigate and engage with firms seeking to relocate or establish in regional Western Australia. LandCorp will continue to work closely with the lead policy agency, the Department of State Development, to give effect to the Heavy Use Industry Land Strategy (HUILS) to make land 'project ready' in Strategic Industrial Areas across the State. Further progress must be made with Anketell, Ashburton North and Boodarie. That work will include master planning, site investigations and infrastructure scoping to secure preliminary approvals and overcome practical development constraints. LandCorp will also maintain its role in the Australian Marine Complex common user facilities and also strategic leasehold land within the Western Trade Coast Kwinana area (Western Australia's premier industrial area in terms of economic output and contribution to State growth). Regional industrial land needs are important also, with LandCorp aiming to play a lead role in the provision of light industrial land within regional communities. Where there is no active developer providing land for local industry business needs, LandCorp will play a role to address market supply failure. Challenges and Opportunities In Western Australia the number of private sector developers entering and operating in the business and industrial land market (compared to other markets in Australia) is quite low. This low base of private sector activity can be attributed to factors such as distances to major markets, expected growth of local markets, volatility of certain sector demand, capital return thresholds, regulatory approval processes, availability of englobo land holdings and timing of project-ready land releases. A key focus and challenge in the future is around the strengthening of the asset and facilities within the Western Trade Coast area. Investment into critical infrastructure, land and facilities will be required to underpin economic performance and private sector operations and investment. There is scope to further expand the Australian Marine Complex in response to the needs of oil and gas, resources and marine sectors of the Western Australian economy. Engaging with key customers and stakeholders is critical to ensure the business and industrial land delivered meets customers needs. Business and industrial land uses will change over the next decade. Whereas Western Australia s economy between 1950 and 2000 was strongly influenced by small and medium size enterprises involved in manufacturing, there is a notable shift in the past decade to businesses that are engaged in the transport and logistics sectors. 30 SECTION 8 OUR SUSTAINABILITY PERFORMANCE SECTION 8 OUR SUSTAINABILITY PERFORMANCE 31

17 STRATEGIC LAND SUPPLY AND DELIVERY Regional Commitment LandCorp s Regional program supports the delivery of State-wide land and infrastructure for regional Western Australia to enable and maximise economic development and the potential to create permanent, sustainable and intergenerational communities. Our vision for the program is we enable growth. Trends There are challenges ahead for the program due to changes in market conditions. In some locations there has been a dramatic drop in the regional housing rental market, particularly in the State s resources hub of the Pilbara. However, key players in Western Australia remain optimistic, buoyed by the State s iron ore production exceeding expectations. The statistics, expert analysis and Government forecasts indicate the mining boom is not over but rather transitioning from a capital investment phase to a production phase. However, this had a major impact on the performance of LandCorp projects in the Pilbara. The confidence in Perth s property markets is having knock-on effects, with property values now climbing in some smaller regional areas. The news of rising property values across a number of markets over the 2013 year was welcomed by the regional markets where, in some cases, they ve been doing it tough. These results suggest it is not just the Perth housing markets benefiting from the low mortgage rate environments, so too are regional areas. In Western Australia a number of lifestyle markets around wellknown coastal areas are improving after years of underperforming. Approach Our Regional program identifies priorities across the program as well as more detailed work plans for the nine regions: Kimberley, Pilbara, Gascoyne, Mid-West, Goldfields-Esperance, Wheatbelt, Peel, South West, and Great Southern. The strategies and tactics combine to address land for housing and business, and to support the development of affordable, permanent, sustainable and intergenerational communities. We have a presence in most regional towns and centres, excluding the markets where the private sector is well established (e.g. Geraldton and most of the South West Region). Our regional program represents a just in time approach to acquisitions, and as a result LandCorp does not have many significant landholdings. Our most significant land holdings include Broome North, Kalgoorlie North West Sector, Kununurra Lakeside Park and Albany Emu Point. We aim to fast-track planning for Government initiatives such as SuperTowns and specifically we are assisting with the release of land to support Government objectives in Carnarvon, Exmouth, Karratha, Kununurra, Newman and Wyndham. We also work on a number of projects where we provide strategic advice or are a facilitator. This involves providing property expertise and assisting with Government s priority projects. Whilst this work may not culminate in a LandCorp project', or generate significant fees for service, it is a key part of our role. The State Government s Royalties for Regions (RfR) investment in rural and regional Western Australia has been an important facilitator for: 1. Building capacity in communities; 2. Retaining benefits in local communities; 3. Improving services to achieve equality with metropolitan communities; 4. Attaining sustainability; 5. Expanding opportunity; and 6. Growing prosperity. LandCorp has directly or indirectly received RfR investment for regional program projects via Ord-East Kimberley; Pilbara Cities; South Hedland Town Centre; Karratha Service Workers Accommodation; North West Planning Fund coastal vulnerability mapping for the Pilbara; and growth planning initiatives in Karratha, Broome, Kununurra and Onslow. To ensure the program continues to meet the land needs of its customers, regular monitoring of economic indicators and property market conditions will be undertaken. The program will also couple this with ongoing dialogue with key resource companies, private sector developers and other stakeholders to ensure the lag currently being experienced for land supply is reduced or eliminated where possible. We work closely with other areas of Government to support key regional initiatives such as Regional Centres Development Plan (RCDP), Regional Investment BluePrints (RIBs), and Regional Planning and Infrastructure Frameworks (PIFs): The Regional Centres Development Plan (RCDP) RCDP was initiated by State Government in 2011 through Phase 1 SuperTowns to enable regional communities to plan and prepare for Western Australia s population growth, which is predicted to more than double to 4.7m over the next 40 years. The RCDP aligns the State Government s objectives for enhancing Western Australia's economic competitiveness, the sustainability of regional communities and managing the distribution of the State s growing population. LandCorp will assist the Government to accommodate the State s anticipated population growth by participating in the delivery of growth plans on behalf of the relevant Regional Development Commissions and Local Governments. Regional Investment BluePrints (RIBs) and Regional Planning and Infrastructure Frameworks RIBs are prepared by Regional Development Commissions and provide the primary, social and economic development strategy for a regional area over the next 30 years. RIBs aim to elevate growth trajectories above historic levels by enhancing the economic performance of a region. They are intended to achieve this by aligning Government and attracting private sector investment through a shared vision and evidence-based economic development strategies and priorities. RIBs are highly complementary to LandCorp s Regional and Economic and Employment programs, and will support their development and implementation from a property perspective. Regional Centres Development Plan Regional Investment Blue Prints Regional Planning and Infrastructure Frameworks This may include collaborating on property market research, reviewing RIBs for private and public sector development opportunities, and becoming the implementation agency for property related initiatives. RIBs will also provide a key economic input to strengthen the development of the Department of Planning s Regional Planning and Infrastructure Frameworks, which will in turn support improved regional infrastructure and service coordination and delivery of LandCorp s projects. Currently regional planning and infrastructure frameworks have been or are being developed for the Pilbara, Mid-West, Great Southern, Goldfields- Esperance, Gascoyne, Kimberley and Wheatbelt. These will then be recommended to the Western Australian Planning Commission. LandCorp is providing advice on its regional infrastructure requirements and proposed planning initiatives to Department of Planning. LandCorp's Regional Program Strategy 32 SECTION 8 OUR SUSTAINABILITY PERFORMANCE SECTION 8 OUR SUSTAINABILITY PERFORMANCE 33

18 STRATEGIC LAND SUPPLY AND DELIVERY The Regional Development Assistance Program (RDAP) RDAP is partially funded by the State Government and enables LandCorp to develop land and make it available for residential, employment generating and commercial purposes, which assists Local Governments to kick-start growth in areas where this would otherwise be difficult to achieve. RDAP was established to support regional communities where there is a recognised need for growth, but where the cost of development may prove prohibitive for private sector interest. The market failure being addressed can be related to supply, diversity, price point, timing or lots produced. Residential, commercial, tourism and light industrial developments all form part of RDAP. The aim is to produce lots that are fit for purpose and stimulate social and economic activity, through consultation with stakeholders. State RDAP State RDAP projects are generally found in major towns and where more than 20 lots have been produced or are conglomerations of several smaller projects in a town. These projects are initiated in response to regional level demand. Regional Centres with active State RDAP projects includes Karratha, Port Hedland, Onslow, Kununurra, Derby, Halls Creek, Carnarvon, Newman, Exmouth, Collie and Harvey. Local RDAP LandCorp s Local RDAP provides land supply ahead of demand and facilitates opportunities for local growth. Local RDAP projects are generally small numbers of lots in small regional towns requested through an application process by Local Governments or as the result of a crown land disposal. The availability of developable land is recognised as a significant factor in stimulating social and economic activity in these small towns. Over the past three years the Local RDAP program has released over 200 lots in 23 regional towns. Over the past three years the Local RDAP program has released over 200 lots in 23 regional towns. A further 24 towns currently have projects in the pipeline and a further seven local authorities are having their development requirements reviewed with LandCorp undertaking project feasibilities. Where we can secure site access in a timely manner, delivery timeframes have been reduced and the capacity to meet the development needs of smaller communities improved. Approved projects are able to move to construction within 12 months, down from a previous average of 19 months. In addition, builder spec homes are currently being advertised as being available on certain Local RDAP project sites and a partnering approach with the Department of Housing is being progressed to promote home ownership projects on available lots throughout the regions. Performance Due to market conditions, sales in were significantly lower than in , primarily due to slowdown in the property markets in the Pilbara towns. As a result, the Regional program delivered $58m in revenue for the After many years of resources being invested into new estate planning, development and release of land to meet rising demand, LandCorp has now reached a position where there is supply available for sale in many regional centres. With land now available, markets have stabilised, people and businesses are better able to plan and make decisions about their land purchase and building investment decisions. Future Focus In we will continue our approach, working closely with other areas of Government to support key regional initiatives and identify development opportunities (including RCDP, RIBs and PIFs). We will also continue to provide high level advisory and project facilitation services to all levels of Government and agencies, Local Government, and Aboriginal Corporations. To ensure consistency in our approach we will also develop a Native Title and Aboriginal Heritage Agreements Register. We will ensure development ready' land for market upswings, including maintaining a business development pipeline of future opportunities to activate, including industry attraction/ relocation/ revitalisation opportunities. We also seek to address and challenge the financial, development, and/ or approval impediments to move towards normalising the regional land market. Key releases in and corresponding Dwelling Unit Equivalents (DUE s) KUNUNURRA LAKESIDE PARK (37) SOUTH HEDLAND TOWN CENTRE (319) KARRATHA MADIGAN ESTATE (16) ONSLOW RESIDENTIAL (15) NEWMAN RESIDENTIAL (70) KALGOORLIE (70) BUNBURY WATERFRONT (125) COLLIE BUCKINGHAM WAY (36) In Regional program delivered land able to support 760 dwellings across the portfolio of projects (against the target of 550). Part of that was: State RDAP, which delivered land capable of supporting 565 dwelling unit equivalents against the target of 350, mainly due to land releases at South Hedland; and Local RDAP, which delivered 54 lots (residential, commercial and industrial lots) against the target of 90. Changes to Native Title processing and the impact of the negotiations towards the South West Settlement meant that targets were not able to be met. Regional program delivered $58m in revenue (target $70m) Best performing regional program projects in terms of sales were Newman Residential and Broome North. Local RDAP applications have been received from six local authorities, covering seven projects, during the 2014 Local RDAP application round. In the 12 months to June 2014 we have progressed and released eight projects under the Local RDAP initiative. LandCorp, along with the Pilbara Development Commission and the Department of Regional Development, were recognised through the 2013 Premiers awards when the Pilbara Cities initiative took out Premier s Regional Development Award. 34 SECTION 8 OUR SUSTAINABILITY PERFORMANCE SECTION 8 OUR SUSTAINABILITY PERFORMANCE 35

19 A new area of focus and challenge for the Regional program will be supporting the drive to increase Western Australia s agribusiness sector as the basis for a developing food economy to feed Asia in the next 30 years. Some of this change will see new entrants into existing agribusiness sectors with the greatest change being the emergence of entirely new industries, especially in the North West, to capitalise on Western Australia s natural advantages. Challenges and Opportunities There are still significant challenges ahead for the program due to changed market conditions. The evolution in the resources sector from a project construction to an operational phase leading to a softening of demand is one of these challenges. Another is the limited number of private sector developers in the market outside the southern regional centres, which reflects an immature regional land market. While major resource projects will continue to be the major drivers of land supply especially in the North West, LandCorp has met demand in most markets and is positioning the regional centres to be development ready for future up-swings in demand. Projections of strong aspirational population growth, low unemployment and significant investment in infrastructure and resource sector projects will continue the pressure/demand for land in hot spot regional towns/cities. The Government is requesting LandCorp to focus more on housing, especially for service/key workers in regional centres, rather than the traditional residential land supply. Some level of government intervention will be required to deliver more affordable housing options especially in the North West, where resource companies and investors have the ability to price lower income earners out of the market. Changes to Native Title and Aboriginal Heritage Agreement processes have the potential to delay land supply in many regional areas not already covered by completed/lodged agreements. 8.2 GOVERNMENT PRIORITIES Economic Performance Commitment Our economic performance is critical to our success and viability, enabling LandCorp to continue to contribute to land delivery, infrastructure needs, and Government priorities across Western Australia. Approach LandCorp, as a Government Trading Enterprise, reports to the Minister for Lands, and was established to undertake the provision of land and infrastructure for the State s social and economic needs. This includes implementing improvements to land, infrastructure, facilities and services in urban renewal areas and centres of population. We operate under the Western Australian Land Authority Act LandCorp has development powers applicable to projects across the State, including master planning, subdivision processes, infrastructure development, land assembly (including compulsory acquisition of land) and private sector partnering. LandCorp also has a facilities management capability, which is applied to strategic industrial and other sites across the State. This involves place making, facilities and asset management functions, and commonuse economic infrastructure management strategies. To ensure our three delivery programs for metropolitan, regional and economic and employment continue to meet land and infrastructure needs and our financial targets we regularly monitor economic indicators and property market conditions. LandCorp operates within a Government Trading Enterprise financial framework in a commercial manner, with projects to be delivered in a cost efficient way exceeding Government s minimum cost of capital (hurdle rate). Full competitive neutrality and transparency principles apply. LandCorp has responsibilities to deliver public policy outcomes, set out in our Annual Statement of Corporate Intent and a fiveyear Strategic Development Plan (approved by the Minister with the concurrence of the Treasurer each year), with the Strategic Development Plan setting five-year financial performance targets. 36 SECTION 8 OUR SUSTAINABILITY PERFORMANCE SECTION 8 OUR SUSTAINABILITY PERFORMANCE 37

20 GOVERNMENT PRIORITIES Performance LandCorp delivered $362m in land sales revenue in ( : $334m), below our Business Plan target of $506m. Two thirds of this revenue came from projects in our Metropolitan program. The key reasons behind this strong metropolitan performance were the impact from historically low interest rates, relatively low unemployment, and strong first home buyer and investor market segments. However, regional and industrial property markets followed the wider trends in the economy, with declining investment in the resource sector, low business confidence and a high Australian dollar resulting in weaker than targeted sales revenue across LandCorp s regional and economic and employment projects. LandCorp delivered $38m in profit against targeted $77m as a result of lower than targeted sales and a change in the sales mix. Careful management of cash flow throughout the year saw LandCorp remain on target for approved borrowings ($160m). During LandCorp invested $256m into development expenditure against a targeted $391m, reflecvtive of the slower economic market. Significant amounts of development works were delayed, particularly within our Economic and Employment and Regional program. In LandCorp invested $23m into land acquisitions. Economic value generated and distributed From an income perspective, in LandCorp s total revenue recognised was $542m, while total expenditure (including income tax equivalents) was $504m. From a cash perspective, total receipts in were $616m, while cash payments were $553m (including dividends and income tax equivalents paid). In terms of LandCorp s revenue, $362m was directly from sales of land, $59m was in operating subsidies for projects, $28m was received in operating subsidies for holding costs (predominantly maintenance at Australian Marine Complex and Burrup Peninsula), whilst the remainder was predominantly from property revenue and recoveries ($61m; net of expenses $28m) and participation fees ($10m). Payments to suppliers and employees of $484m predominantly relates to the cost of land development and property expenses. This also include Native title payments to Native Title claimants on whose land our projects have been delivered, totalling $5.4m. LandCorp spent $576k on corporate sponsorship. In terms of our employee compensation, a total of $30m was paid out in wages, salaries and on costs. LandCorp paid $8m in interest charges on borrowings As a Government Trading Enterprise, LandCorp is expected to pay a dividend to Government every year. The dividend policy agreed between the Department of Treasury and LandCorp generally requires dividend payments to average around 65% of aftertax profit, adjusted for the need to maintain adequate land stocks from retained earnings. A dividend of $32m was paid in In addition to the dividend, LandCorp also pays land tax, stamp duty, income tax equivalents and Local Government rate equvalents. total payment to Government in was $106m. Government support LandCorp continues to undertake land development projects, supported by Government. Section 25A(3) of our Act outlines the circumstances that would lead to a particular project being considered as an operating subsidy supported project. Funding arrangements for operating subsidy projects are negotiated with the Government and meet the commerciality criterion set out in Section 19(1) of the Act. In LandCorp received $87m in operating subsidies, assisting with the delivery of range of projects across the State. Of this funding, $53m stemmed from Royalties for Regions including cost recoupments for projects such as Karratha City Centre Infrastructure, Karratha City of the North and South Hedland Town Centre Redevelopment. Of the remaining $34m, $23m relates to holding costs on strategic land LandCorp holds on behalf of the State and is (predominantly) returned to the State by way of taxes Summary: The Metropolitan program released 1,090 dwelling unit equivalents. and dividends. The remaining $11m relates to projects where LandCorp requires a top up to achieve the minimum rate of return on assets required under the Western Australian Land Authority Act Milestone targets In LandCorp set to achieve milestones on 28 Government priority projects across our three delivery programs. At June 2014, 13 out of 28 projects met their milestones, while another 12 projects were likely to meet their milestones in the following six months. Three of the Government Priority projects failed to meet their milestones or were subject to decisions not to progress: The Karratha Town Centre was delayed due to funding challenges that were subject to review by Treasury and the wider Government. Mulataga was delayed as Karratha is in a good position with existing residential land supply satisfying demand. Earthworks have however been completed The Regional program delivered land for 760 dwelling unit equivalents. for Stage 1 and all relevant approvals have been obtained to allow us to bring land to the market quickly when required. In East Port Hedland we failed to secure a proponent due to the change in market conditions, and Government considered a submission on the Murdoch Mixed-use Precinct and recommended that, while the project has merit, it not be supported at this time due to the project s funding shortfall in the context of the Government s financial situation. LandCorp is now considering alternative delivery strategies for the project. Economic and Employment program released 44 general industrial lots. 38 SECTION 8 OUR SUSTAINABILITY PERFORMANCE SECTION 8 OUR SUSTAINABILITY PERFORMANCE 39

21 GOVERNMENT PRIORITIES Government Advisory Services Commitment LandCorp aims to provide significant value to the State Government and relevant agencies through high-level property advisory and project management services which are responsive to State Government and agencies requirements. This work is underpinned by the Western Australian Land Authority Act Section 16 Functions. Approach The three main objectives of the Government Advisory Services program are to: 1. provide project management and property advisory services to State and Local Government agencies; 2. investigate and remediate contaminated sites, both orphan and those owned by other agencies; and 3. resource the Property Asset Clearing House (PACH) where we are the lead agency in the disposal of surplus Government assets, supported by Treasury funding. Project management fees are generally charged at LandCorp s standard cost recovery rates or a percentage of sale or development expenditure. Property Advisory activities and other general advice are often provided at cost or less (approved where there are broader benefits to agencies and Government). LandCorp has a solid track record of providing property advisory services to Government with a number of significant projects (such as 140 William Street Perth, Department of Fire and Emergency Services Hotel site in Perth, Claremont and Perry Lakes redevelopment projects) originating from past property advisory activities to State and Local Government Authorities. Performance The approach was to keep the program focused on specific projects, leverage property opportunities arising from Government infrastructure projects and build strong wholeof-government relationships with other agencies and stakeholders. Significant project management services were applied to Kununurra Ord Stage II, Perry Lakes and Karratha City Centre Infrastructure projects. Over property advisory services were applied to a wide range of property activities including Hay Street Hotel site, CBD Hotel Incentives, Bassendean Oval redevelopment, Department of Agriculture and Food Western Australia, Department of Health surplus hospital sites, Gosnells Town Centre redevelopment and Mount Claremont redevelopment. In , property advisory fees accounted for just over $1m of LandCorp s total operating revenue. We continued to be active in both areas of asset disposal and development of surplus assets for the State. LandCorp adds value to surplus State assets by de-risking from a property perspective and preparing this for private sector purchase. This can involve re-zoning and remediation or more complex processes prior to disposal. In some instances further development by LandCorp creates additional returns to the State via LandCorp payments of taxes, tax equivalents and dividends. The de-constraining and development of surplus property assets yields the State a greater return on its asset, compared to an immediate sale in a constrained condition. Since 1997, LandCorp continued to be engaged by Government to dispose of surplus assets. Since this time LandCorp has achieved $245m in asset sales on behalf of the State, with a dedicated LandCorp team working with PACH. The majority of these assets have required significant work to de-risk the asset prior to sale. Some $11m of PACH asset sales were achieved in Challenges The State Budget provided funding to establish Land Asset Management Unit (LAMU) within the Department of Lands to provide a coordinated and targeted approach to selling, leasing and/or optimising State owned property (not just Crown land). The key activities of LAMU are in policy development, asset review (asset database creation), governance, asset divestment (strategy) and outcome management (disposal). LandCorp is well positioned to assist with the last two activities, having worked on strategies to dispose of sites as well as managing the disposal processes (and with a small team providing this service to the PACH. In the future LandCorp will be supporting the Department of Lands with achieving the State Government s objectives and providing portfolio advice to the Minister for Regional Development and Lands. Since 1997 LandCorp has achieved $245m in asset sales on behalf of the State, with a dedicated LandCorp team working with the Property Asset Clearing House. 40 SECTION 8 OUR SUSTAINABILITY PERFORMANCE SECTION 8 OUR SUSTAINABILITY PERFORMANCE 41

22 State Planning Strategy 2050 (2014) Our Cities, Our Future (2011) Sustainable Population Strategy (2011) Directions 2031 and Beyond (2010) Urban Design Protocol (2011) The Housing We d Choose: a study for Perth and Peel (2013) Royalties for Regions Act and Program (2009) Pilbara Cities Program (2010) GOVERNMENT PRIORITIES Regional Development Policy Framework (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) Regional Planning and Infrastructure Frameworks (2014) Regional Investment Blueprints (2014) Seizing the Opportunity Agriculture (2014) Regional Centres Development Plan (2011) Western Australian Waste Strategy (2012) Better Urban Water Management (2008) Guideline for the approval of non-drinking water systems in WA urban developments (Dec 2013) Energy 2031 (2012) Affordable Housing Strategy: Opening Doors (2010) Aboriginal Economic Participation Strategy (2012) Reconciliation Australia - Reconciliation Action Plans program Heavy Use Industrial Land Strategy (2008) Delivering Government Policy Commitment Our overall objective is to identify and respond to Government project delivery requirements and ensure Western Australia s economic and employment growth is sustained long into the future. Government policy and strategy, and best practice frameworks and research across the dimensions of sustainability underpin our work and are crucial to our success. Economic and Employment Lands Strategy: non-heavy industrial (2012) South West Region Industrial Land Study (2013) Throughout this report LandCorp s role in implementing wider Government strategic planning direction has been clearly defined. Whilst this is not an exhaustive list of the policy that we respond to, these are some of the key drivers. Primarily this is across the State of Western Australia with the State Planning Strategy, which provides the strategic context for planning and development decisions throughout the State. In Regional Western Australian we have aligned development with the Regional Centres Development Plan, Planning and Infrastructure Frameworks and the Regional Investment Blueprints, aiming to develop regional visions and strategies for economic and social development in alignment with the State Planning Strategy. In the Perth Metropolitan and Peel region we have a key role in implementing the objectives of Directions 2013 and Liveable Neighbourhoods, which sets the planning vision and objectives to develop a more consolidated city, particularly through the Activity Centres State Planning Policy 4.2 which sets the planning framework for the development of activity centres, a key role for LandCorp. Our Econominc and Employment program supports lead Government policy: Economic and Employment Lands Strategy, and Heavy Use Industrial Land Strategy through our role as the implementation/ facilitation agency. Importantly, policy and research aligned to our four Sustainable Development Elements provides strategic direction for the State. Community wellbeing policy drivers include: Affordable Housing Strategy; Opening Doors , environmental policy includes: Energy 2031, Better Urban Water Management, and Western Australian Waste Strategy. The Urban Design Protocol, and Better Places and Spaces Policy provide strategic design guidance. Lastly, economic policy drivers through the Royalties for Regions program, in particular Pilbara Cities and SuperTowns, the Economic and Employment Lands Strategy and Seizing the Opportunity Agriculture all with the intent of encouraging economic growth and diversity. 42 SECTION 8 OUR SUSTAINABILITY PERFORMANCE SECTION 8 OUR SUSTAINABILITY PERFORMANCE 43

23 PARTNERSHIPS, RELATIONSHIPS AND CUSTOMERS 8.3 PARTNERSHIPS, RELATIONSHIPS AND CUSTOMERS Partnerships and Relationships Commitment Through our business activities we have the opportunity to collaborate and partner with experts and contributors across social, economic, and environmental disciplines. We are committed to collaborating and partnering with all levels of Government, industry, private sector and resources, communities and customers as we seek to better understand and respond to our stakeholder s business, constraints, needs, concerns and expectations of LandCorp. Approach We identify stakeholders through a variety of methods and tools, including: attribute based priority models; power and interest grids; stakeholder risk-based mapping; internal and external consultation; State Government round table sessions; project meetings; stakeholder planning sessions; open days where registrations of interest are taken; through our selling agents; electronic mailing lists; or registrations of interest. The majority of our potential customers come through our website by completing a mailing list form. We have a series of key Relationship Management and Stakeholder Engagement Plans for State Government; Local Government; Regional Development Commissions; and private sector, industry and resource; as well as project specific plans. Our key stakeholders and stakeholder groups are listed in these plans as well as objectives, issues, strategies and tactics. Further detail on the stakeholder groups we engage, our engagement approach and key topics and concerns are provided in section 7 Engaging With Our Stakeholders. Each key stakeholder is assigned a LandCorp 'relationship owner' who is responsible for the relationship health and stakeholder engagement. Engagement frequency while based on a minimum of twice yearly can vary enormously dependant on the stakeholder, the relationship, and the current situation (i.e. Government priorities, issues and opportunities), with some stakeholders being engaged annually and others monthly. The plans are audited on a bi-annual basis. LandCorp have a Customer Relationship Management (CRM) system that helps to monitor, manage and report (bi-annually) our stakeholder and relationship interactions. There are no set targets however bi-annual engagement is considered the minimum. Our progress and/ or success in achieving specific objectives are often anecdotal. Performance Stakeholder research Research with our stakeholders is generally conducted every two years. However, a different stakeholder group is consulted each time. This rotational approach has been adopted in order to: avoid respondent fatigue; allow time for results to be communicated across the organisation; and for appropriate strategies to be implemented and take effect before re-consulting. The most recent stakeholder research was conducted in This research consisted of two phases and was conducted with private sector stakeholders including; builders, developers, contractors, consultants, industry associations, selling agents and resource companies. The initial phase was an online survey sent to all of the above stakeholders with 283 surveys completed in August to September The second phase consisted of 52 in-depth interviews designed to further explore and explain the results collected during the phase 1 survey. Overall, 69% of private sector stakeholders were satisfied with their current relationship with LandCorp, with a third being very satisfied. This increased to 81% for those stakeholders who currently work with LandCorp. 72% of private sector stakeholders would recommend (or speak positively about) LandCorp, with a third being highly likely. Overall, the feedback was positive: seven in ten stakeholders were satisfied with their relationship with LandCorp; stakeholders believe we fulfil an important role in Western Australia, due to our ability to take on difficult or complex projects that would not be feasible for the private sector, and to take risks to be innovative; our work in regional and rural Western Australia is seen as very important especially in the North West; stakeholders believe that we facilitate community development, and provide social benefits to local communities not just within our estates; and stakeholders believe we are a leader in industrial land development, with access to strategic industrial sites and the ability to undertake very large and strategic projects. Areas where we need to improve: make our expression of interest and tender processes more transparent and consistent: increase collaboration, work more closely with stakeholders, create more opportunities to improve communication and relationship building; clarify where we will operate in the same space as the private sector; review our decision making process to make it faster and more efficient; and continue to build the skill sets and capabilities of our Development Managers. In response to these results, LandCorp identified and committed to a range of strategies to improve the satisfaction for these stakeholders. Some of the changes recently made by LandCorp included: introducing a new online tender system; developing additional staff training programs; incorporating input from builders into design guidelines for two trial projects; and communicating LandCorp s pipeline of activities to industry. The next round of stakeholder research is earmarked for Challenges We have not yet reached maturity on our relationship management journey. There is still a requirement to improve understanding across the organisation about the concept of true engagement, which involves seeking proactive opportunities to engage with stakeholders rather than an issues based or project business approach. Ideally, regular engagement and open dialogue will mean any concerns are addressed before they become issues. While CRM is now used in most areas of the organisation, consistency could still be improved. We now have several project teams using CRM to document and record their stakeholder engagement. There is ongoing internal engagement to promote CRM and seek new business and user opportunities and encourage consistent use. We are aware that stakeholder fatigue can be an issue, particularly in the regions, where several projects are in the same area. We want to engage face-to-face and build rapport however we also need to be aware that a stakeholder may meet or talk to several LandCorp officers each week. Through recording interactions in CRM, and the creation of locally based relationship management plans, we hope to better manage stakeholder contact and reduce stakeholder fatigue. 44 SECTION 8 OUR SUSTAINABILITY PERFORMANCE [G4-25; G4-26; G4-27] [G4-25; G4-26; G4-27] SECTION 8 OUR SUSTAINABILITY PERFORMANCE 45

24 PARTNERSHIPS, RELATIONSHIPS AND CUSTOMERS Customer Satisfaction Commitment Ensuring customer satisfaction through our service and products is critical to our success. We understand the need to anticipate and respond to our customers needs to meet or surpass their expectations. This is important in order to remain competitive and relevant within the industry, and to provide a legacy for the West Australian community. through reception being directed to a single point of responsibility for response or allocation; the in-house sales phone line number being listed on all project website advertising; and the introduction of clear sales and customer service based key performance indicators into sales agency agreements. 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% to 87% and the likelihood of customers to recommend LandCorp increasing from 80% to 86%. Approach We undertake ongoing research to determine if we have achieved a high level of customer or resident satisfaction with our service and our product. In response to our research findings we implement strategies to respond to customer and resident perceptions, expectations and needs. We also review customer touch-points to identify areas for improvement in our customer service. Performance New website During , we updated our Content Management System by moving to a product which has improved navigation and functionality which made our website easier and more cost-effective to modify. Our website s ability to communicate what we do, promote the benefit we bring and direct customers to our projects is a critical success factor. Residents satisfaction research Research recently commenced with current residents (both renters and owners) in the Baynton West and Broome North estates. This research aims to understand the satisfaction of living within the estate and to assess the success of various place-making and community initiatives. The research consists of a short phone survey, which is then followed up by a number of in-depth interviews. This is the first year that this type of research has been conducted and results will be delivered in Future iterations of this research will be conducted on an as-required basis. Customer satisfaction for our land purchasers Residential customers are contacted within 3 months of settlement regarding their satisfaction with the sales, marketing and purchase process. This information has now been collected for two years, with 2013 being the most recent annual results. Previous results for 2012, although positive, identified some areas of improvement. Based on this, strategies were put in place by the sales and marketing team to address these areas, which now appear to have brought results. These strategies include: LandCorp s sales phone line being moved in-house to the Sales team; all sales enquiries into LandCorp As well as the overall feedback, key insights into the performance of individual projects were also delivered, allowing the opportunity to continually monitor and improve at an estate level. These insights covered; key satisfaction metrics, positive aspects of the estate, main reasons for purchase, other estates considered and areas for improvement. Challenges The key challenges so far are; maintaining accurate and up-to-date contact details for purchasers, getting timely feedback and incorporating key learnings into actionable outcomes. To address these issues LandCorp will start to collect information on a quarterly basis, and when appropriate conduct follow-up in-depth interviews to further explore some results. In addition to this, key informational sessions will be organised in-house to communicate key insights at an overall and project level. Example: Research to understand our potential purchasers in Orelia Orelia is a southern suburb of Perth, located within the City of Kwinana. It is a key infill project outlined in Directions 2031 and Beyond with an ambitious density target, in comparison to the surrounding area. In order to ensure success of the project, and community acceptance, it was important to have a clear understanding of the potential target market along with the key strengths and weaknesses of the planned estate in order to mitigate any risks and take advantage of opportunities. As such, our Research team conducted focus groups, with potential purchasers from the surrounding area. Insights from the research provided an understanding of the target market and potential branding. The main positives to the location were the natural environment and easy access to the City; however the areas reputation still had some negative connotations for some potential purchasers. The concept of the estate was well received; however the relatively small block size for the area made the estate most appealing to first homebuyers and small households. For this group, affordability was seen as the main attractor of the estate. Purchasers wanted something affordable but not cheap. Once the Orelia project has commenced, the research will also be used to inform the marketing and sales strategy. 46 SECTION 8 OUR SUSTAINABILITY PERFORMANCE SECTION 8 OUR SUSTAINABILITY PERFORMANCE 47

25 PARTNERSHIPS, RELATIONSHIPS AND CUSTOMERS Supply-chain Sustainability Commitment We are committed to an ethical, accountable procurement process that maintains probity and fairness. LandCorp spend a significant amount on goods and services in a wide variety of expenditure areas per calendar year. We are committed to using the influence within our supply-chain to achieve best practice procurement for all goods and services so that we can enhance social, environmental and economic outcomes for Western Australia. We have a four tiered approach for our contractor pre-qualification register with strongest compliance for safety, environmental and quality management systems for our Tier 1 contractors. Tier 1: Unlimited value contractors must be full third party accredited to ISO9001 or ISO9002, AS 4801 and AS Tier 2: Greater than $5m contractors must by accredited to Civil Contractor Federation Internal Management System standard as a minimum. Tier 3: Greater than $2m contractors must have documented internal quality, safety and environmental management systems as a minimum. Tier 4: Less than $1m contractors to be used for simple non-complex works. Approach LandCorp has a dedicated specialist procurement team that has strategic oversight for procurement strategy, procedures, policy and reporting, advisory services, knowledge sharing and training to staff. This enables LandCorp to apply a whole of business approach to procurement activities, regular health checks across all aspects including expenditure and performance are reported to Management quarterly. LandCorp seek to provide efficient supply-chain management services by engaging pre-qualified suppliers and achieving value for money and best practice methodologies. The five key areas of focus are: maintain and monitor best practice procurement policy and contract Governance; monitor and report on supplychain activities for optimal business performance; build long-term relationships with our suppliers to maintain business continuity and value for money through the supply chain; provide opportunities for communities to engage in and influence our activities through supplier procurement initiatives; and anticipate and respond to our customers needs by communicating effectively with our suppliers and stakeholders. LandCorp use a panel management system for key consultants and a register process for contractors that screens and pre-qualifies all suppliers based on development expertise, accreditations in quality, safety and environment management systems and Reconciliation Action Plan compliance. By building panels and pre-qualified registers based on demonstrated experience and knowledge we seek to mitigate potential negative impacts and risks across labour practices, society, or on the environment. Panels and registers can be in place for a period of 12 months to five years. Our prequalified consultant panels are for legal, engineering, environmental, accounting and marketing consultants. Our register process is for planning consultants, external project managers as well as contractors for civil works, earthworks, and landscaping. LandCorp monitors market conditions for civil works in terms of market rates, material costs and contractor capacities. For specific projects, we conduct competitive tenders, applying the Australian Standards for tendering for major civil and landscaping works on projects. Prior to tendering, LandCorp obtains expert advice from its consultant engineers about market rates and a detailed pre-tender estimate is provided as an independent estimate of the cost of the works to be conducted. Tender submissions are independently assessed in detail with an assessment report provided to LandCorp, where there is a summary of tenders received and a comparison to the pre-tender estimates. LandCorp receives the report and a controlled approval and authorisation process follows before works commence. Following the award of the contract, the works undertaken by the civil works contractor are supervised by LandCorp s independent consultant engineers to ensure the works are to specification, timeframes and costs set out in the tender and contract. Progress payments claimed by a contractor are coordinated and assessed by the supervisor who provides LandCorp with reports and recommendations. To ensure consistency we have a series of standard Request for Services documents for consultants and contractors that are tailored for each project. This is to ensure LandCorp s expectations are clearly outlined in each brief that is released to potential candidates. Our Sustainability Elements: Community Wellbeing, Economic Health, Design Excellence and Environmental Responsibility and the objectives that underpin them are also included to highlight and ensure our commitment to sustainable development. Some project sustainability objectives are also included in the scope of works on a project-by-project basis depending on the service being requested and the nature of the project. 48 SECTION 8 OUR SUSTAINABILITY PERFORMANCE SECTION 8 OUR SUSTAINABILITY PERFORMANCE 49

26 PARTNERSHIPS, RELATIONSHIPS AND CUSTOMERS In addition one of the key actions to arise from the study is a commitment to establish a landscape architect panel and expanded statewide landscaping contractor pre-qualification process. Performance Occupational Health and Safety In 2013 we actively promoted Occupational Health and Safety (OHS) through our supplychain. This included a detailed review of the OHS components in contracts, greatly enhancing the OHS requirements and updating our construction and standard works contracts. This has strengthened our OHS position and clearly articulates our expectations of OHS at a contractual level. Tendering and construction contract documentation review In the first half of 2014, as part of a procurement business improvement strategy LandCorp s tendering and construction contract documentation was reviewed and standardised across the business (based on an amended form of AS ). LandCorp consulted with Governing industry bodies and legal entities to establish the fundamental documentation toolbox for LandCorp s standardised construction works contracts. The revised documentation incorporates standard clauses to align with sustainability practices, OHS and environmental legislative provisions. Landscape procurement During 2013 we commissioned a landscape procurement review which included an independent assessment of LandCorp s landscape procurement document and reviews of landscaping outcomes on well-established projects. The projects reviewed included: Joondalup; Marlston Hill Bunbury; Harvest Lakes; Clarkson; Nichol West and Bayton West in Karratha; and Enterprise Park Wangara. The purpose of the review was to identify opportunities for improvement in landscaping and sustainable outcomes. The study found that our Development Managers require more guidance to properly scope landscape works using the standardised procurement documentation and that, in some situations, a landscape architect may not be the only service provider and alternative procurement models such as design and construct contracts be considered. The project reviews identified: retained vegetation, street trees and connected pedestrian paths as attributes that performed well. However, some opportunities for improvement that emerged were inappropriate selection of street tree species for the conditions, excessive use of turf, use of plastic playground equipment rather than more natural playscapes, and a lack of native plants. These areas are already being addressed in many of our current projects. In addition one of the key actions to arise from the study is a commitment to establish a Landscape Architect panel and expanded state wide landscaping contractor pre-qualification process. Electronic tendering management system In July 2014 we implemented a centralised electronic tendering management system to streamline the procurement process for our internal use and for our supply-chain. The electronic tender management system speeds up the tendering cycle and reduces the time and costs for both LandCorp and our suppliers. Suppliers are able to receive notifications of new tender opportunities, download and view the documentation electronically, and participate in forums to seek clarification on tender opportunities. Where available, submission of bids can also be completed through the e-tender box facility. Early feedback from engineers, consultants and contractors reflects positively that e-tendering has made doing business with us easier through the bid process. Specifically downloading and accessing tender documentation, lodgement of tenders, multiple users per organisation and increased transparency of our supply-chain activity. Buy local Our procurement approach also includes supporting local suppliers including the ongoing economic development of local Western Australia business ( buy local ) through the implementation of a buy local strategy. The Western Australian Government is committed to maximising opportunities for the development of both Western Australian and Australian businesses by means that are consistent with achieving value for money objectives. To achieve this, the Government s Buy Local Policy contains a range of initiatives and price preferences that provide local Western Australian and Australian businesses with an enhanced opportunity when bidding to supply to the State Government. LandCorp joins with the rest of Government in providing data each year on local purchasing of goods, services and works. Our overall approach includes supporting local business (buy local) by developing a strategy to encourage greater consideration. Our buy local approach reduces purchasing and transportation costs, forges relationships with local businesses, and bolsters the local economy. Buy local is encouraged through tendering and an annual summary on purchasing is sent to the Department of Finance. The summary provides key metrics on all contracts awarded during the previous financial year, with a value equal to or greater than $20,000; and to report on contractors 'local content' commitments such as the use of local suppliers and subcontractors in delivering the contract outcomes. The buy local summary covers three zones and purchases obtained in those zones. LandCorp s percentage of procurement budget used for significant locations of operation spent on suppliers local to that operation was approximately 55% in The percentage shows that almost half of our contracts were not awarded to the local suppliers who located in the same contract region. With LandCorp operating statewide a core set of technical specialists and prequalified suppliers (consultants and works) are head-quartered in Perth, with that expertise and capability then deployed to a regional project. Challenges We are working towards clearly articulating our procurement policies, procedures and process in a corporate Procurement Policy, setting out expectations of performance and outcomes to our key suppliers at initial stages of the project lifecycle. Challenges encountered include maintaining a strong and well balanced supply-chain to deliver our project portfolio, particularly in remote areas of Western Australia. We are strongly focussed on Implementation of our Reconciliation Action Plan and achieving strong economic, social and environmental outcomes for the State of Western Australia, and engaging with suppliers to support these initiatives. 50 SECTION 8 OUR SUSTAINABILITY PERFORMANCE SECTION 8 OUR SUSTAINABILITY PERFORMANCE 51

27 PARTNERSHIPS, RELATIONSHIPS AND CUSTOMERS Our direct, indirect (via contractors) and sponsorship procurement results for Aboriginal engagement and employment are shown below. Overall Procurement Administration, Goods and Services, Project Consultancies and Works Number of Businesses Number of Contracts Amount (GST ex.) Administrative Purchases^ 4 4 $8,765 Example: Aboriginal Enterprises engagement through supply-chain procurement To implement Government's Aboriginal Economic Participation Strategy , LandCorp has sought to, through its own procurement and supply-chain activity to increase the participation of Aboriginal Enterprises in the Western Australian economy. Over the course of the year LandCorp have been challenged on how to better apply its Aboriginal Contractors list and increase its procurement expenditure with Aboriginal Enterprises in Western Australia. The Aboriginal Business Directory WA is a joint project between the Department of Aboriginal Affairs, the Department of Training and Workforce Development, the Small Business Development Corporation and Chamber of Commerce and Industry of Western Australia s Project Connect (who manages and maintains the directory). The directory is a free service which brings together Aboriginal businesses operating in Western Australia with potential buyers. Over the reporting year, LandCorp continued its supporting partner role of the Project Connect Directory (through the provision of financial sponsorship). In November 2012, the Government introduced an exemption to the mandatory procurement procedure for Aboriginal Enterprises that are 50% Aboriginal owned. This exemption allows State Government enterprises to directly contract for the provision of goods and services with Aboriginal businesses for contracts up to $150,000. Aboriginal Businesses must be registered on the Aboriginal Business Directory WA. Over the reporting year, LandCorp promoted the use of the Aboriginal Business Directory WA across the business and a small number of contracts were negotiated (through the exemption) with registered Aboriginal Enterprises for services and materials. In addition to the Aboriginal Business Directory WA on business goods and services, LandCorp s procurement team compiled a list of Aboriginal contractors in civil contracting and related project works and services (including, electricians, landscaping and surveying). We have also implemented changes to include Aboriginal weighted criteria to all aspects of works tendered, not just civil or landscaping contracts. A review is scheduled to assess actual performance. We continue to support industry wide and led initiatives by organisations including the Chamber of Commerce and Industry and the Civil Contractors Federation. We will continue to further enhance Aboriginal engagement through a coordinated approach to our procurement policies, procedures, standard contracts and prequalification documentation. Our direct, indirect (via contractors) and sponsorship procurement results for Aboriginal engagement and employment are shown adjacent. This information does not include in-kind facilitation work, where LandCorp development managers have worked with various representatives from Aboriginal Corporations or local Aboriginal groups to assist in progressing development opportunities. Heritage Consultancy Services 4 7 $146,566 Landscaping Contractors 2 7 $99,089 Site Works and Repairs Contractors 1 5 $1,673,672 Public Art Consultant 1 1 $130,000 ^Aboriginal Business Directory Other Engagements Total $2,058,092 Initiatives Number of Entities Number of Contracts Amount (GST ex.) Civil Start Program 1 1 $139,583 Sponsorship 6 6 $108,500 Indirect Procurement (via our contractors) Total $248,083 LandCorp Project Number of Contracts Amount (GST ex.) Claremont 1 $50,000 Newman Town Centre 1 $4,000 Port Hedland 1 $80,000 Ord East Kimberley Expansion Project 4 $500,000 Karratha 3 $1,050,000 Total $1,684,000 LandCorp continues to be challenged by how it can lift the number of supply contracts, under the Government exemption, given limitations and capacities of individual businesses and enterprises. We will be encouraging businesses with Aboriginal alliances to also nominate for registers, which are then put forward in supplier selection and tender processes. 52 SECTION 8 OUR SUSTAINABILITY PERFORMANCE SECTION 8 OUR SUSTAINABILITY PERFORMANCE 53

28 8.4 SUSTAINABLE DEVELOPMENT Design Sustainable Urban and Built-form Design Commitment Urban design and SUSTAINABLE URBAN AND BUILT-FORM DESIGN LandCorp recognises the benefits of good design and has established a range of tools to ensure that design outcomes are optimised. The land, infrastructure and property development industry faces increasing challenges and opportunities with land, resources and infrastructure constraints, population growth, increasing quality of life expectations and the successful delivery of sustainable development. Escalating energy costs, water scarcity, traffic congestion, expected impacts of climate change, and affordability are becoming increasingly important to the community. We understand the need to manage our natural resources carefully and efficiently. As we adapt and address these needs (as best we can through our activities) we translate these global issues and make them meaningful to our aim for sustainable development. We influence sustainable development through consideration of design, community, environment, economic and innovation on a project-by-project basis. COMMUNITY ENVIRONMENT ECONOMIC Community Affordability Community INNOVATION DESIGN Urban design and Good design is very important to LandCorp because it is essential to achieving sustainable outcomes in our developments and for the communities that visit, live and work in them. Design has the ability to impact every stage of a project s lifecycle and it is crucial to creating high quality public spaces and buildings. We recognise that good design is defined by how it works, the benefits and value it brings and its ability to positively impact people s lives. Approach and Performance LandCorp recognises the benefits of good design and has established a range of tools to ensure that design outcomes are optimised. LandCorp has taken a lifecycle approach to design which is aimed at providing appropriate guidance at each stage of development to ensure that our projects are set up to achieve optimum results from initiation to completion. This process has involved the development of a range of policies, guidelines and processes in line with best practice urban and builtform design. This includes the development of a design review process, design guideline template, climate responsive design policy and a range of innovative research and development projects aimed at improving urban design and builtform outcomes. While some of these have now been embedded in our business systems, work is continuing to ensure design excellence is fully integrated into the business throughout the life of each project. LandCorp often includes specific design objectives in its procurement documents. This includes integrating design criteria into the assessment process for expression of interest from consultant and developers. The submissions received undergo rigorous assessment by internal panels that review the proposal against the design criteria and proponents must demonstrate compliance with the project s vision and objectives. LandCorp's 'vision and objective setting process' has recently been reviewed. Our aim going forward is to ensure that our internal processes allow adequate time and resources during project initiation to optimise opportunities for each of our projects in terms of design and sustainability outcomes. To this end we have updated our high level business case to highlight the need for more rigorous investigations during the feasibility stage of project assessment which can then inform our vision and objective setting for the particular project. Supporting documents including site and context investigations checklists and a vision and objective setting process template have been included in our project procedures manual to provide guidance to development managers and consultants. In addition to improving our internal processes we are also working with a number of industry stakeholders, Government agencies and research institutions to ensure we are positioned to deliver more innovative and sustainable developments into the future. Our approach is consistent with leading agencies in Australia and draws from national and international trends and policies such as the Urban Design Protocol: Creating Places for People, and the Better Places and Spaces policy developed by the Western Australia Office of the Government Architect. LandCorp also has a dedicated resource, sustainability manager design, who is responsible for promoting and supporting design excellence across LandCorp s programs. This also involves participating on industry committees such as the Urban Development Institute of Australia Built-form Committee, the Australian Urban Design Research Centre Education and Professional Practice Committee and a Design Excellence working group with other Government agencies to solve common challenges and promote innovation. 54 SECTION 8 OUR SUSTAINABILITY PERFORMANCE SECTION 8 OUR SUSTAINABILITY PERFORMANCE 55

29 SUSTAINABLE URBAN AND BUILT-FORM DESIGN Urban design and Project design reviews A Project Design Review (PDR) process has been developed which provides a range of options that can be employed depending on the scale and context of a particular project. The purpose of the PDR process is to improve the quality of design and sustainability in urban and regional areas through the engagement of industry professionals who review projects at key stages of planning and design. Options include independent, semi-independent and internal reviews that are undertaken during the concept design phase and during the detailed design phase. PDR's are undertaken for urban design projects as well as for built-form developments and they provide an opportunity for fresh eyes to review the development against the project s vision and objectives. The outcomes of PDR's are incorporated into a summary report that is distributed to the project team for incorporation into the ongoing project planning and design by the consultants. During the past year LandCorp has undertaken seven PDR's for urban and built-form projects. Projects reviewed include: Karratha City Core Hotel & Commercial Building (Built-Form Review) Pilbara Vernacular Demonstration House (Built-Form Review) Newman Town Centre (Urban Design Review) Newman Iron Ore Parade (Built-Form Review) White Gum Valley (Urban Design Review and Built-Form Review) Gen Y Demonstration House (Built-Form Review) Victoria Park (Urban Design Review) In addition to the PDR process outlined above, LandCorp s senior management routinely conducts project reviews to ensure that the planning and design of key projects are in line with Government objectives and meeting organisational goals. During the past 12 months reviews have been undertaken for a number of projects across the State including: Alkimos, Forrestdale Business Park, Murdoch, Jolimont, Knutsford, Geraldton Region and Karnup. Design guidelines LandCorp has also developed a design guideline template which provides a mechanism for the development of project specific design guidelines for a range of development types across the State including, residential, mixed-use and industrial projects. The template provides guidance on building design and performance as well as landscaping design which is tailored to the specific location and climatic conditions The information provided in design guidelines is informed by policy and research as well as by project specific site and context data that is supplemented by diagrams, images and photographs to make them user friendly. Templates are reviewed regularly to update information as new research and data becomes available. Research projects and partnerships In order to inform our design approach, LandCorp has undertaken a number of detailed research studies to investigate and identify particular solutions for some of the most challenging design issues across the State. This work has resulted in the publication of a handbook which provides comprehensive guidance for home owners, builders and developers in the Pilbara covering strategies and design solutions for builtform and the public realm. Refer to the innovation section for more information on the Pilbara Vernacular Handbook and Demonstration House Design Competition. A similar handbook is under development for the Kimberley and is expected to be published by the end of LandCorp has also developed two research programmes which provide opportunities for collaboration with some of the State s leading design institutes including the Australian Urban Design Research Centre (AUDRC) and the School of Architecture, Landscape Architecture and Visual Arts (ALVA) at The University of Western Australia. This collaborative work provides an opportunity for investigation, testing and development of design solutions for a number of challenges in the built environment and provides a range of innovative urban and built-form scenarios that inform our design approach and our project visioning. During the past year LandCorp has used the design guideline template for a number of projects in the Metropolitan, Regional and Economic and Employment programs including: Regional Newman Mixed Business Area Koombana North Precinct Metropolitan White Gum Valley Cockburn Central West Economic and Employment Broome Road Industrial Estate 56 SECTION 8 OUR SUSTAINABILITY PERFORMANCE SECTION 8 OUR SUSTAINABILITY PERFORMANCE 57

30 SUSTAINABLE URBAN AND BUILT-FORM DESIGN Urban design and BILD (Built-form, Infrastructure, and Landscape Design) Innovation Programme The aim of the BILD Innovation Programme is to develop a creative environment for crossagency and cross-disciplinary collaboration resulting in the creation of innovative and place based design solutions for specific challenges in the built environment. The purpose of this innovation 'think tank' is to engage with a range of stakeholders working in the area to ensure that the critical issues of development in the region are fully understood and that practical design solutions for key challenges can be developed. Projects with defined design challenges are selected for inclusion in the BILD Innovation Programme. Depending on the location, context and circumstance, the opportunity for the development to be used for a research project is discussed and an approach to the relevant university faculty or school is made. Senior academics from the chosen institution work in collaboration with LandCorp and a group of students to undertake research and design investigations for the development of design scenarios suited to the project. The programme to date has involved design studios to investigate a range of design challenges in the built environment including: 2010 Program Mandurah Junction Affordable Housing Studio (ALVA) 2011 Program BILD the Pilbara Design Forum (ALVA and AUDRC) 2013 Program Australian Marine Complex User Facility Design Studio (ALVA) Housing, Urban Design and Infrastructure Research Project In June 2014, LandCorp entered into a Memorandum of Understanding (MoU) with the Australian Urban Design Research Centre (AUDRC) for staged sponsorship over a three year period which will assist with developing a better understanding of the urban design and sustainability challenges in higher density infill developments in Perth. The MoU provides opportunities for the development of strategies with potential to result in a range of project benefits including improved design outcomes through research and development in the area of affordable housing, urban design and integrated infrastructure systems. Challenges LandCorp s approach to design will be strengthened through continuous improvement of internal processes and embedding the use of design tools in our project management processes. An expansion of the design guideline template system is already underway which involves reviewing the structure and content of the templates to ensure recent research outcomes are reflected and that the development controls are relevant. While our design review process is generally working well further work is required to ensure that the outcomes are more effective in improving overall project outcomes. An important part of this will be to ensure that the outcomes of It will also provide an opportunity to collaborate with a range of Government Agencies and industry stakeholders to investigate innovative design solutions in line with Federal and State policies and guides. Professor Dr Joerg Baumeister form AUDRC with our CEO Frank Marra the design reviews are better integrated into the overall project reviews. Periodic reviews of the outcomes are underway to identify recurring design issues which will help to inform our project planning and improve our procurement processes in the future. A more consistent approach is required to ensure that LandCorp s projects benefit from a holistic approach to design from project initiation to delivery. This will involve improvements to our project visioning and scoping as well as to our monitoring and review processes to ensure that design quality is optimised in all projects. We recognise the delivery of 'design excellence' can be challenging in a difficult economic climate and that some parts of the industry have mixed views about the use of, for example, design guidelines or design reviews. However, we are confident that a more holistic approach to design which includes consideration of the design process itself as a means to establishing good outcomes will result in more efficient and cost effective solutions for development. Our aim is to ensure that our approach to design is one that balances good design outcomes with a range of other social, economic and environmental considerations for each particular context. Our focus going forward will be to deliver more cost effective solutions that provide diversity and choice for future generations. 58 SECTION 8 OUR SUSTAINABILITY PERFORMANCE SECTION 8 OUR SUSTAINABILITY PERFORMANCE 59

31 COMMUNITY ENGAGEMENT Community 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 across 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 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 Australia awards for placemaking at the State and National level. 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. Main streets create a safe walkable environment linked to major bus and train transport hubs. 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 community has appealed strongly to a diverse range of people. This has attracted young professionals seeking to enter the property market, downsizers seeking low maintenance living, fly-in fly-out workers and investors. Living Space by the Department of Housing provides a mixeduse 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, learning from this project, notably the innovative land sales process, effective design guideline and review process, and placemanagement program are immediately transferrable to other Activity Centre projects. The project serves as a case study for future urban infill projects and Activity Centres as defined by the State Government s Direction 2031 and Beyond policy framework which sets out the principles for a future Perth designed to sustainably accommodate population growth and economic development Community Community Engagement Commitment We are committed to providing communities every opportunity to be engaged in our projects. We recognise that by doing so we can improve outcomes for the community in line with their needs and aspirations. As a State Government authority, our distinction from our industry peers is that the public s acceptability is critical for our business success. We are held accountable by our shareholder (State Government) and our stakeholders and seek to manage expectations and establish high quality engagement. This in turn helps our business perform better by increasing our knowledge and understanding of stakeholders. Approach LandCorp s manager, community relations strategically manages our approach to stakeholder engagement and oversees LandCorp in becoming an engaging organisation. Bi-annual reporting on stakeholder engagement is provided to our board via the Planning Development and Communications Committee. In the last 12 months there has been a focus on developing a consistent approach, as such we developed and rolled out the Guide to Successful Stakeholder Engagement and Relationship Management. This guide outlines LandCorp s principles for engaging and managing stakeholders, providing practical guidance (tools and templates) for developing stakeholder engagement and communication plans that engage the community with our projects. Integrating Community Engagement along LandCorp's project lifecycle Start-up Idea and opportunity Initial social risk assessment Initiation High level business case Definition Detailed business case Ongoing review and monitoring of social risks Community and stakeholder engagement Execution Idea and opportunity As part of this consistent approach, stakeholder mapping and analysis should be initially carried out during initiation and then depending on the level of social risk associated with the project an appropriate stakeholder engagement and communication plan is developed. It is an iterative process and the plan develops as more information becomes available. Stakeholder engagement and communication plan evaluation End use sustainable community Closed project 60 SECTION 8 OUR SUSTAINABILITY PERFORMANCE SECTION 8 OUR SUSTAINABILITY PERFORMANCE 61

32 COMMUNITY ENGAGEMENT Community To improve stakeholder engagement there has been an increased focus on building internal capacity. This has involved providing access to stakeholder engagement tools and increasing understanding of an engagement approach based on proactivity and riskassessment. In the last 12 months an internal training workshop was developed and delivered to 29 LandCorp employees. The training Building an Engaging Organisation is part of LandCorp s broader and ongoing investment in aligning its business with community values a theory and practice model for LandCorp personnel who work at the front line with communities. We also reviewed our complaints policy with the development of the Handling Public Feedback Policy, providing a clear and defined process for handling positive and negative public feedback, with an enhanced recording and reporting framework. We are committed to actively engaging with communities. The deployment of a new community online engagement tool, EngagementHQ, will increase opportunities for community engagement to take place online. The online tool will complement our existing community engagement techniques and our Marketing team will support the promotion and awareness of the tool to relevant sections of the community. Performance Stakeholder engagement plans based on stakeholder mapping Our Guide to Successful Stakeholder Engagement and Relationship Management includes stakeholder mapping and analysis tools to assist in the development of all Stakeholder Engagement and Communications Plans and to help us better understand our stakeholders. Projects that have benefited from stakeholder mapping (including Stakeholder Engagement and Communications Plans) in the last 12 months include: Metropolitan Jolimont St John s Wood Shenton Park Power Station Master Plan (Cockburn Coast) Bassendean Economic and Employment Latitude 32 Regional McLarty Explosives Reserve Newman Town Revitalisation Karratha City Child Care Onslow Ord-East Kimberley We are commited to providing communities every opportunity to be engaged in our projects. Local community consultation committees In support of some community engagement strategies and to ensure broad engagement and representation a number of community committees have been established, including: Onslow Community Reference Group: regarding the development of new residential precincts as part of the wider Onslow expansion plan; Newman Community Liaison Group: providing input into the design of Newman Town Square; Cockburn Central Town Centre Association: to support and promote the interests of the local community and businesses within Cockburn Central; and Latitude 32 Community Group: chaired and facilitated by the community to provide information sharing opportunity for the project. LandCorp also works closely with not-for-profit organisations and Government agencies to investigate opportunities to support the local community and vulnerable groups, including: Community Housing Providers who develop and manage housing for those on lowmoderate income which impacts diverse sections of our community, including key workers, homeless, ageing, and single parents; and Supporting not-for-profits and the Disability Services Commission, this includes supporting universal access, independent living and ageing in place. For example, a group housing site (with a potential maximum dwelling yield of 20 dwellings) is being developed at Craigie as a secure group housing facility specifically for young adults who are able to live independently with some support. We will develop our capacity to broaden engagement across the community, including vulnerable groups through further developing opportunities for the public to engage online for projects where extensive community engagement is required. Where possible, LandCorp works closely with Local Government during the planning stages of the development and through the statutory planning processes. This includes working together during community engagement and to deliver wider Government planning objectives, such as local employment self-sufficiency targets. As Local Governments start to develop their own affordable housing strategies, community development programs, and economic strategies they will provide further opportunity for crosscoordination. Examples include: White Gum Valley: LandCorp worked closely with the City of Fremantle during the planning stages of the development. This helped overcome some community concern over density, traffic control and the loss of some trees; Champion Lakes: the City of Armadale has supported LandCorp to establish a Resident Group at Champion Lakes which has helped resolve some community issues; and Cockburn Coast: working with the City of Cockburn in the planning stages, including being a member of an Affordable Housing Working Group led by the City. This group supported the City to establish an Affordable Housing Toolkit to help develop understanding of affordability and how it can be incorporated in feasibility analysis. Challenges Challenges can arise when development objectives are not aligned between LandCorp and the community representative - Local Government. This is often around density, amenity and ongoing management. We address this challenge by having a dedicated resource for community and stakeholder engagement that can help manage the challenges, learning and opportunity across projects. While we currently track engagement activity through our dedicated resource for community and stakeholder engagement there is scope to improve our tracking and measurement of our practice across projects. As such this will be a focus for the next 12 months, developing performance metrics to measure impact of our community engagement. This will assist in developing strategies for growing value in stakeholder engagement and supporting a more efficient and effective engagement focus and practice. 62 SECTION 8 OUR SUSTAINABILITY PERFORMANCE SECTION 8 OUR SUSTAINABILITY PERFORMANCE 63

33 COMMUNITY ENGAGEMENT Community Whilst online engagement is not intended to replace traditional methods of community engagement the trial did provide an opportunity to test different online tools for both sharing information and listening to feedback from stakeholders. Artist s impression for illustrative purposes only. Example: Online community engagement for Jolimont To enable a broader spectrum of the community to engage with our projects we explored alternative engagement options and trialled an online engagement tool. As part of our broader Community Relations strategy, we undertook a review of the organisation s approach to engaging stakeholders online. The aim was to increase our reach and build trust with a broader spectrum of the community whilst enhancing LandCorp s practice with stakeholder and community engagement. The result was the development of a strategy to establish an online engagement hub to complement the traditional methods of stakeholder engagement. Following a robust selection process, LandCorp entered into a six month trial period with Bang the Table s EngagementHQ platform to develop an online engagement portal specifically for LandCorp s Jolimont Project. Working in collaboration with the Town of Cambridge, we are redeveloping the former Nursery Site on Salvado Road, Jolimont for housing. In August 2013, when the rezoning of the site was advertised for public comment, we asked the local community to have their say on the future of the redevelopment, with the feedback received helping us develop a concept plan for the site. The objective of the trial was to explore alternative options to enable a wide range of stakeholders to engage online with LandCorp so they could provide useful and usable insights into the project and increase the level of transparency and accessibility that stakeholders could have into the project s design and decision making process. A project specific website was developed to gain feedback on the Concept Plan for Jolimont, as well as share iterations of the plan. The website individually addressed the main project concerns previously identified by the community, which resulted in improved design outcomes. This engagement was not part of any statutory planning process however the feedback received helped LandCorp finalise the design of the Outline Development Plan for the site, which is scheduled to be lodged with the Town of Cambridge at the end of 2014 and advertised for public comment. The online engagement hub was promoted widely across the local community using a range of communication mechanisms including; local letterbox drop; advertising in local media; an electronic direct mail to the project s database; and a media release. Over the month of June 2014 the website received 419 unique visits, with 33% of people taking action on the site to learn more about the project (which meant they visited two or more pages to become more informed about the project). In comparison 43 people attended two community information sessions held in June 2014 to engage face to face with the project team. Predominantly stakeholders provided feedback on: access, public realm and housing typology. Whilst online engagement is not intended to replace traditional methods of community engagement the trial did provide an opportunity to test different online tools for both sharing information and listening to feedback from stakeholders. This resulted in a renewed focus on developing communication materials that contributes to increasing the public s understanding of built-form scenarios associated with urban infill developments as well as generating and supporting a dialogue with the community around housing diversity and density. Challenges included ensuring that we managed the risk online engagement poses by relinquishing some control of the discussion and driving enough visitors to the site to generate meaningful feedback. These were successfully mitigated by developing a comprehensive risk management and communication processes, which can now be applied to other online engagement initiatives. Following the trial the business has agreed that when appropriate online engagement will be considered as a tool within the broader mix of stakeholder engagement and communication options. 64 SECTION 8 OUR SUSTAINABILITY PERFORMANCE SECTION 8 OUR SUSTAINABILITY PERFORMANCE 65

34 COMMUNITY DEVELOPMENT Community Example: Alkimos Beach community development approach Community Development Commitment We have an important role in contributing 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 suitable to a particular community. Approach Our approach is to develop land that supports vibrant and sustainable communities. These are places where people can happily live and work now and into the future. LandCorp understands that establishing and/or integrating communities is different from place to place, as such we consider each new development's unique context. While a formal social impact process or methodology has not been established this does not mean that LandCorp does not consider this. During the planning stages of a development Government s strategic objectives and the impacts and needs of the local community are all considered. This influences the placemaking, commercial mix and housing diversity in a development, as well as informing our community engagement and development. In addition, detailed locality research and stakeholder engagement help us to inform and manage the social impact of a development. We consider Local Government plans such as those on community development, affordable housing, and economic development. We are also starting to encourage best practice tools such as Healthy Active by Design which informs the design of communities that support and promote healthy and active living. As a land developer significant actual or potential impacts on local communities can occur across all locations as a result of LandCorp changing the local area. Key community concerns are commonly around density, social housing, environmental (impact on existing public open space) and traffic/parking. We endeavour to take a risk-based and proactive approach to community engagement that can provide opportunities to mitigate and/or address these impacts and community concerns. Performance As each community is different, we work with the local community and new residents to define the community development program. In doing so we hope to build the capacity of the local community to work together and eventually host and manage their own community programs. No persons were displaced or resettled in the financial year. Our approach is to develop land that supports vibrant and sustainable communities. In Alkimos Beach, a new community in a Greenfield location, we have been working with our development partner Lend Lease to build a community development program for new residents. This includes creating public space that supports interaction, particularly as this is a Greenfield development with fewer amenities in the early years. Extensive research has been undertaken to consider who might live there, what might be needed and how we can deliver a flexible and adaptable space that can change as the community develops. This has included 'Sprout' which is a temporary community facility located at Escarpment Park. It is equipped with a kiosk and can cater for business meetings, launch events and training sessions with built-in multimedia and a variety of spaces available to cater for up to 70 people. It provides a community space, co-working location, space for hire and online community portal. Sprout enables the delivery of community facilities for the first residents, building a sense of belonging, which will be further enhanced when permanent facilities and services are established overtime. For further information on Alkimos refer to the environment section. Example: Broome North community development approach In Broome North, the local community and not-for-profits were surveyed to inform the three-year community development program. This considered not only how to develop the community of Broome North but also how to integrate the community with the rest of Broome. This included a resident welcome pack which lists events and clubs in Broome that residents can join, events that include residents in Broome North and the wider community, and facilities that may be included in the local centre that are needed for the whole of Broome. 66 SECTION 8 OUR SUSTAINABILITY PERFORMANCE SECTION 8 OUR SUSTAINABILITY PERFORMANCE 67

35 COMMUNITY DEVELOPMENT Community Example: Focusing on community health and wellbeing through diversity Healthy Active by Design (HABD) is a tool to inform the design of communities that support and promote healthy and active living. Practical guidance, checklists and case-studies are categorised into nine key design features that will assist planners, urban designers and related professionals to design a built environment that enables people to be healthy and active in their community. Other potential users of the resource include professionals from health, community development and sport and recreation who wish to advocate for and promote health and wellbeing across a range of projects. LandCorp sponsored this tool and is on the project management group for its development and implementation. The leader is the Heart Foundation in alliance with other Government agencies and the University of Western Australia. The design features considered are public open space, shared facilities, buildings, town centre/ main street, schools, movement network, mixed-use, housing diversity and sense of place. These design features are best considered at the planning stages of a project. LandCorp s Cockburn Coast is a HABD case study for housing diversity. The Cockburn Coast Masterplan covers a 340ha site strategically located between Fremantle and the employment generator of Kwinana. Cockburn Coast will be home to 10,000 new residents and will provide employment for some 3,000 people. The Cockburn Coast Masterplan, District Structure Plan and Affordable Housing Strategy will deliver housing diversity through local structure plans and local planning policy. LandCorp has put in place a number of planning documents to ensure housing diversity targets at Cockburn. The Cockburn Coast District Structure Plan seeks to provide a community with a diversity of demographics, income and household types. This diversity will contribute to the health, wellbeing and sustainability of the community and the vibrancy of place. The Structure Plan aims to achieve: a diversity of built-form, dwelling types and sizes, attracting a mix of demographics and lifestyles; increased densities focused on the public transport, improving accessibility for a wide range of new residents; and affordable housing targets to enable representation of people in lower income brackets in the area. The Cockburn Coast Masterplan has been prepared based on extensive community consultation. The community, over a number of workshops identified support for: Activity Centres located towards the coast; high-density oriented residential development; strong east-west links to improve movement networks; green links to connect the beach and Beeliar Park; strong main street diagonally off Cockburn Road to allow for views to the coast; and north-south pedestrian and cycle links. An extensive process of market testing and community consultation has informed the final housing diversity targets within the Cockburn Coast District Structure Plan. To ensure the housing diversity is achieved, the Cockburn Coast Masterplan identifies areas and zones for high to medium-rise development. This diversity will contribute to the health, wellbeing and sustainability of the community and the vibrancy of place. Artist s impression for illustrative purposes only. Challenges Measuring the value of community wellbeing and positive legacy impact more generally can be challenging. While we currently do not measure positive legacy impacts from a predevelopment benchmark we are working with Government and industry to develop and use thirdparty assessment tools to consistently improve community wellbeing, and more broadly sustainability (i.e. the Green Building Council of Australia s GreenStar Communities, Bio Regional Australian's One Planet Living, and Urban Development Institute of Australia s EnviroDevelopment). We are also interested in developing a better understanding of the evolving practice of demonstrating social impact. To this end we have begun two pilot research projects. One is to better understand the value of Activity Centres. The purpose of this research is to provide a framework to determine the extra value (i.e social and environmental value) relative to resources invested for an Activity Centre. The second project is a partnership between LandCorp and the Department of Housing who are embarking on a Social Return on Investment study to understand the benefits of Affordable Housing/ Multi Residential Model located within an Activity Centre. This is due to be complete in and the findings will be reported next year. 68 SECTION 8 OUR SUSTAINABILITY PERFORMANCE SECTION 8 OUR SUSTAINABILITY PERFORMANCE 69

36 AFFORDABILITY Affordability We are also establishing partnerships to improve the achievement of affordability. Affordability Commitment LandCorp has a key role in supporting the delivery of the State Government s Affordable Housing Strategy , led by the Department of Housing. This strategy emphasises the importance of delivering a diversity of affordable housing options across the housing continuum, from public housing to private rentals, to home ownership for those on low-to-moderate incomes. LandCorp can significantly help deliver this diversity. We are committed to supporting the delivery of dwellings that are appropriately priced for key workers and households on low-to-moderate incomes, including rental accommodation and low cost house and land packages. This provides housing opportunities that cater for a cross-section of the population and the creation of sustainable communities. The maximum benefit for social opportunity, and the diversity and vibrancy of the community is achieved when affordable housing and living is integrated as part of the overall housing development. Approach For the community an increasing number of West Australians are experiencing housing stress where their mortgage or rent payments exceed their income by more than 30%. It is also recognised that as the cost of electricity, petrol and water is increasing, affordable housing and living presents a major challenge across Australia. Affordability has historically been a strong focus for LandCorp, and continues to be. Our Stakeholders, through the 2014 Sustainability Reporting research identified affordability as the most important material issue for LandCorp. Affordability by far is the greatest issue. Private industry Strategic direction for affordablity LandCorp s primary policy influence to deliver affordable housing are the objectives of the State Government s Affordable Housing Strategy , led by the Department of Housing, including: 1. to dedicate at least 15% of our land housing to supply affordable housing outcomes for those on low-moderate incomes; 2. to strengthen the community housing sector to deliver affordable housing; 3. to provide housing across a continuum; and 4. to deliver an additional 20,000 affordable dwellings by LandCorp s own Affordability Policy directly supports the implementation of this strategy. LandCorp has a dedicated resource, sustainability manager socioeconomics, who is committed to supporting the delivery of the Affordability Policy across LandCorp s projects and reporting to LandCorp s board and Government on performance as required. 70 SECTION 8 OUR SUSTAINABILITY PERFORMANCE SECTION 8 OUR SUSTAINABILITY PERFORMANCE 71

37 AFFORDABILITY Affordability Example: Partnerships to deliver affordability As a land development agency, we believe the delivery of affordable housing, particularly to support the needs across the community, is not just about land supply. We are successfully developing partnerships across Government and with the not-for-profit sector to influence and ensure affordable and appropriate housing outcomes LandCorp continues to work with other Government agencies, namely the Department of Housing, the Metropolitan Redevelopment Authority and the Department of Planning, to develop a consistent reporting approach and shared policy intent to the delivery of affordable housing. Current examples of this activity can be seen at Coolbellup and Waikiki where the opportunity to partner with Access Housing is supporting medium density living and creative group housing at Coolbellup with 16 dwellings and Waikiki with nine dwellings. LandCorp s commitment to affordable housing and community partnerships has translated into practical and deliverable land supply initiatives in locations that support affordable living, typically in locations close to public transport, with strong employment and service infrastructure. For Access Housing this has included projects that will get underway early in in Rockingham, Waikiki and Coolbellup. Garry Ellender, Access Housing CEO 15% AFFORDABLE HOUSING We dedicate at least 15% of our land to supply affordable housing for those on low-moderate incomes. 87% 41% BELOW THE MEDIAN LOT PRICE 87% of lots sold across metropolitan Perth in were below the median lot price. $ OR LESS 41% of lots for single dwelling unit equivalents across WA sold at $ or less and 2% of land transactions were to the Department of Housing. Artists Impression Proposed Access Housing Development on Lot 57 Bottlenose Drive, Waikiki We are also establishing partnerships to improve the achievement of affordability. This includes working with the Department of Planning to demonstrate new approaches in the planning system; and working with builders/department of Housing to deliver turnkey products, particularly through Department of Housing s Shared Equity Scheme. It s going to be a more turnkey product that is required because people can t afford the time to contract on a block of land, wait 6-9 months and wait another 18 months for a home to build and then move in. So one matter of addressing affordability is by turnkey products which is far easier for people to get finance, and far easier for people to purchase and to provide innovation tips for materials and design. Private Industry (source: LandCorp Sustainability Reporting research) Performance Program performance LandCorp s current process to assess effectiveness is to monitor our program performance against the target to dedicate at least 15% of our land and housing to supply affordable housing outcomes for those on low to moderate incomes. This is undertaken in both a quantitative and qualitative manner with key statistics obtained from land sales over a defined period of time and a description of key initiatives. We are keen to communicate these results understand the diversity of affordable outcomes LandCorp are pursuing, particularly in partnership with others, and lead others to do the same. LandCorp is also working toward embedding project specific Affordable Housing Strategies into our business development process. We have developed a Guide to Affordable Housing Initiatives and an Affordable Housing Strategy Template to achieve this. We also use tools such as Precinx to assess market relative affordability and affordable living in the Perth metropolitan area Management System to assess local housing demand and supply in Regional Western Australia. The embedding of affordable housings strategies into the business development and project management process will greatly improve the efficiency of monitoring LandCorp s affordability performance. Specific actions for are to further explore opportunities to make land available to the community housing sector to deliver National Rental Affordability Scheme (NRAS) rentals, shared equity and widely so that our stakeholders and the Housing Online general affordable housing. 72 SECTION 8 OUR SUSTAINABILITY PERFORMANCE SECTION 8 OUR SUSTAINABILITY PERFORMANCE 73

38 AFFORDABILITY Affordability Regional Examples In Kununurra 75% of single Dwelling Unit Equivalents were sold under $195,000 and land was sold to support the Department of Housing s Transitional Housing Program, helping families to transition to home ownership over a two year period into home ownership. In Broome North lots sold to the Department of Housing, Questus and Foundation Housing all delivering a mix of housing Diversity. Broome North also included a successful Commonwealth s Housing Affordability Fund application where rebates were passed on to land purchasers. Throughout the North West we are supporting the Department of Housing, Questus and the community to develop affordable homes through land supply and diversity at Port Hedland, South Hedland, Karratha, Onslow and Newman. Our partnerships We have been working closely with the Community Housing Sector to support NRAs applications and delivery, and supporting land supply in strategic locations that also ensures affordable living. So far this year we have three approvals to sell land to Access Housing to deliver NRAS rentals, shared equity and general affordable housing (rental and full sales): In White Gum Valley approval to explore the opportunity to partner with Access Housing to support affordable housing for Artists and Creatives; Group housing at North Lake (10 dwellings); and Waikiki (nine dwellings). Out partnerships include: Working closely with the Community Housing Sector; Working with the Department of Housing and across State and Local Government; and Working with the community to support housing outcomes that suit community needs. We have also worked with the Department of Housing through knowledge sharing, research, developing supporting tools to deliver affordable housing and exploring new innovative delivery mechanisms. This included working with the Development Commissions and the Department to establish housing needs both now and into the future in Regional Western Australia, and exploring a Regional Home Ownership Scheme on our Regional Development Assistance Program lots bringing shared equity to Regional Western Australia. Challenges Across Government we need to work together to build community support for affordable housing. The definition of affordable housing is generally inconsistent, complex and technical. This often leaves the community confused and with the impression that affordable housing is one dimensional; mainly that it is public social housing. As part of the implementation of the State Affordable Housing Strategy the Department of Housing, Department of Planning, the Metropolitan Redevelopment Authority and LandCorp have come together to develop key communication messages on defining and outlining the importance of 'affordable housing'. Western Australia is also experiencing increasing community diversity and changing demographics. Affordable housing is housing for all including those with disabilities, older people wanting to downsize, our teachers and nurses, and first time home buyers. The Western Australian community is culturally diverse and changing with the baby boomers retiring. As such, LandCorp is working with Government and the private sector to deliver diverse housing and be flexible to try new things, whether that is new tenure arrangements, or housing products. As resources become constrained (both financial and natural) we will need to do more with less and partnerships to deliver affordable housing are going to become inceasingly important. 74 SECTION 8 OUR SUSTAINABILITY PERFORMANCE SECTION 8 OUR SUSTAINABILITY PERFORMANCE 75

39 AFFORDABILITY Affordability Example: Affordability at Mandurah Junction Mandurah Junction is a 15ha site located next to Mandurah train station. The site is being transformed into a high-quality residential development for up to 2,000 people, offering a vibrant community with a distinctive laid-back Mandurah vibe. The development is pedestrian and bicycle-friendly and has retained significant public open space featuring interactive public art. Affordable housing choices offered ensure high sustainability and efficiency standards which help to reduce ongoing household energy. Mandurah Junction s proximity to the train station also assists in reducing household transport costs. Stage 1 of the project has now been completed and three new parks opened to the public. The 4.4ha of public open space features walking and bicycle paths, art pieces, boardwalks, barbecue areas, children s playgrounds, a kickabout area and facilities for a future community garden. The construction of Stage 2 of the Mandurah development is now underway. Some significant elements of sustainable development include: achieving an affordability target of 15%; the retention of over 200 trees, with a further 600 trees due to be planted across the overall development; creation of green corridors to encourage walking and cycling, and reducing the need for private vehicle use; Ensuring the continued supply of affordable and sustainable housing at Mandurah Junction, specifically on the high density, mixed-use lots which have high construction costs in the current Western Australian market will continue to be a challenge. the allocation of $2m from the Commonwealth s Housing Affordability Fund (HAF) over 55 Lots so that purchasers receive a $36,000 rebate, including: single residential lots ranged in size from 251sqm to 343sqm and priced from $130,000 to $140,000. Purchasers claimed the rebate at settlement of $36,383 (including HAF) resulting in a net price of approximately $93, double storey house and land packages ranged in size from 235sqm to 311sqm and priced between $327,950 and $385,706 (full turnkey with solar hot water system included). Purchasers claimed the rebate at settlement of $36,383 (including HAF) resulting in a net price of approximately $291,567 and $349, single storey house and land packages ranged in size from 225sqm to 285sqm and priced between $272,500 and $299,349 (full turnkey with solar hot water system included). Purchasers claimed the rebate at settlement of $36,383 (including HAF) resulting in a net price of approximately $236,117 and $262, x two bedroom units have been sold to purchasers under the Department of Housing s shared equity scheme at an average cost of $240,000 minus the $18,000 per dwelling HAF rebate. In addition, first homebuyers were able to apply for the First Homebuyer Grant of $7,000. a variety of housing choices including medium and high density housing solutions will be offered with high sustainability and efficiency standards to help in reducing ongoing household energy; Mandurah Junction s proximity to the train station will assist in reducing household transport costs; a community garden managed by a not-for-profit organisation which brings together existing Mandurah residents and new purchasers. The garden also assists in providing life skills and a sense of belonging to people in the Mandurah community who suffer from disabilities; and championing of new affordable built-form product maisonettes which are now being replicated throughout the metropolitan area by one of the main Western Australian building companies. Artist s impression for illustrative purposes only. 76 SECTION 8 OUR SUSTAINABILITY PERFORMANCE SECTION 8 OUR SUSTAINABILITY PERFORMANCE 77

40 INDIGENOUS RELATIONS Indigenous Relations Commitment LandCorp acknowledges many Aboriginal and Torres Strait Islander people face significant social and economic challenges and lack opportunity. We want to help address the inequity between Aboriginal and Torres Strait Islanders and other Western Australians. Understanding the unacceptable gaps, especially in employment and business opportunities, we strive to continually improve our daily operations in cooperation with Aboriginal and Torres Strait Islander peoples. Our land and infrastructure developments can provide foundations for healthy communities where Aboriginal and Torres Strait Islander peoples and other Western Australians can come together. We wish to lead by example in encouraging Western Australia s development industry to embrace training, sustainable employment and business opportunities for Aboriginal and Torres Strait Islander peoples. Approach Since 2008 we have worked towards improving our reconciliation initiatives and formalised this by way of our first Reconciliation Action Plan (RAP) which came into effect in Our first RAP, with its land and property development industry focus, was an opportunity to engage with the Aboriginal and Torres Strait Islander peoples of Western Australia by closely aligning our operations and projects so that they take into account the needs of Aboriginal communities. Many of our on-the-ground staff have good experience in dealing with Native Title and heritage issues, while also managing successful projects which aim to deliver economic, social and environmental benefits for our many and diverse stakeholders. As our business has grown and evolved, new opportunities for reconciliation have been identified and been embedded into many of our diverse projects across the State. In recent years we have moved towards finding like-minded partners in our reconciliation journey and will continue to seek to find others so we may collectively make a bigger difference by working together rather than independently. LandCorp s RAP contains the actions and measurable targets we are intending to achieve. Our RAP has been developed under the guidance of the LandCorp management team and in collaboration with staff from across the business, Aboriginal and Torres Strait Islander staff and stakeholders, Reconciliation Western Australia and Reconciliation Australia. Our Executive team has undertaken the role of the RAP Working Group, overseeing the RAP development and six-monthly reporting. Performance at the conclusion of our RAP is made available on our public website. Our current RAP was developed in the first part of 2014 for the period to June 2016 in consultation with staff and external stakeholders. It contains actions which will be progressed over the next two years. These actions focus on Relationships (working together to build better relationships), Respect (recognize and promote Aboriginal and Torres Strait Islander culture and heritage) and Opportunities (creating and encouraging education, employment and economic development opportunities in partnership with Aboriginal and Torres Strait Islander people). This RAP has an increased focus on Aboriginal engagement through procurement opportunities as well as working in partnership with Aboriginal groups/corporations. We wish to lead by example in encouraging Western Australia s development industry to embrace training, sustainable employment and business opportunities for Aboriginal and Torres Strait Islander peoples. Performance Relationships LandCorp has set mandatory cultural awareness training for employees to be undertaken on a regular basis and runs informal diversity awareness building programs for employees. In % of LandCorp staff completed this training. LandCorp has, in the first half of 2014, conducted an assessment of all Native Title Agreements. An assessment of the payments made to date, payments to be made and being held in trust, payments to be paid in the future. Analysis of compliance with Agreement conditions is 90% completed. The Department of Lands presented a detailed briefing to staff of new Notice of Intention To Take (NOITT) processes and Native Title and Land Administration Act obligations that LandCorp would need to manage/navigate working in unison with the Department of Lands and Native Title Groups. A staff bush tucker morning tea was held on 29 May 2014 as part of National Reconciliation Week with a cultural performance incorporated into a Welcome to Country by Uncle Ben Taylor and representatives from HALO Leadership and Development Agency. Through the support of Federal funding and LandCorp sponsorship, HALO is establishing an education program that teaches life skills to its young people, including reading skills. Respect Kwinana Education Precinct a community garden project at Gilmore College has been developed with Clontarf students (from the College). Aboriginal and Torres Strait Islander Students have been involved in the design as well as site preparation and planting of two gardens, which has incorporated transplanting of grass trees from the adjacent, future development site. LandCorp is continuing to progress opportunities across the State which recognises Aboriginal heritage, culture and history as well as street naming including Oakajee Industrial Area, Batavia Coast Marina Stage 2, Exmouth, Halls Creek, Broome, Newman, Kalgoorlie, Carnarvon, Kwinana and Kununurra. Opportunities The Guidelines for Aboriginal Participation in Western Australian Civil Construction and Landscaping Industries (Guidelines) were jointly developed by the industry representative body, Civil Contractors Federation WA and LandCorp in The Guidelines aim to create and encourage education and employment of Aboriginal people; support Aboriginal economic development; recognise, respect Aboriginal culture and heritage; and build better relationships and work together. A review of the Guidelines for Aboriginal Participation in Western Australia was undertaken by LandCorp and the Civil Contractors Federation WA (via its Land Development Group) in June 2014 resulting in some minor edits. The Guidelines have been republished and will be reviewed again in mid In support of the Guidelines for Aboriginal Participation, LandCorp has implemented changes to its AS2124 Standard Contract (on values over $500,000) to include weighted criteria for Aboriginal participation to all aspects of works tendered, not just civil or landscaping contracts. 78 SECTION 8 OUR SUSTAINABILITY PERFORMANCE SECTION 8 OUR SUSTAINABILITY PERFORMANCE 79

41 BIODIVERSITY This allows LandCorp to assign weightings for Aboriginal participation in the evaluation and selection process of tenders, with the aim of engaging contractors to implement Aboriginal outcomes in the wider industry. An audit will be undertaken in mid-2015 to review compliance with criteria versus actual performance. In line with commitments contained within the Guidelines for Aboriginal Participation, LandCorp partnered with the Civil Contractors Federation WA in 2012 to develop an industry owned pre-employment and traineeship entry program called Civil Start, funded by LandCorp and managed and run by Civil Train, the training arm of the Civil Contractors Federation WA. As at June 2014 a total of 124 Aboriginal and Torres Strait Islander people have received training with 88 having been placed into employment since January We are now working with the Civil Contractors Federation WA to implement an indigenous engagement and sustainability strategy to consider opportunities to build on and increase Aboriginal engagement in the civil construction industry beyond December Challenges There will be an ongoing challenge to ensure LandCorp is diligent in meeting its obligations set out in the various project Native Title Agreements. Improvements to systems, process and internal governance is underway, better visibility of information will enable LandCorp to ensure payments and other obligations are made and met in accordance with Agreements. As part of commitments contained within the Guidelines for Aboriginal Participation, LandCorp and the Civil Contractors Federation WA conduct an annual benchmarking survey to measure improvement in Aboriginal engagement across the industry. Three surveys have been conducted which have shown fantastic growth within the industry over the three year period. From those companies surveyed results show: companies with an Indigenous employment strategy has increased from 26% in 2011 to 56% in 2013; companies with a policy to encourage Indigenous owned suppliers has increased from 17% (2011) to 54% (2013); percentage of Indigenous people employed has increased from 3.8% (2011) to 5.06% (2013); and percentage of companies offering Cultural Awareness Training has increased from 25% (2011) to 48% (2013). The challenge for LandCorp and the Civil Contractors Federation WA over the next 6 12 months will be to look at ways to preserve this level of Aboriginal engagement within the industry as well as identify strategies to increase Aboriginal participation further. LandCorp is now working with the Civil Contractors Federation WA to implement an indigenous engagement and sustainability strategy to consider opportunities to build on and increase Aboriginal engagement in the civil construction industry Environment Biodiversity Commitment Protecting and improving biodiversity is an important aspect of our projects. Biodiversity is highly valued by the wider community in terms of both species protection and aesthetic aspects associated with green spaces. We seek to minimise impacts on biodiversity wherever possible, where impacts are unavoidable we provide offsets in accordance with State and Federal regulation. Approach All of our developments are subject to statutory approvals and all relevant State and Commonwealth environmental legislation. We undertake thorough site analysis and surveys at the start of each project to determine the biodiversity, including flora, fauna, and landform present. These surveys inform what approvals are required, and the opportunities for retention and management of biodiversity to improve project outcome through project design. We have a Landform and Biodiversity Policy and Guidance Statement. The Policy states that: LandCorp will ensure all land development projects will optimise the opportunity to ensure greater retention of natural landform and biodiversity through the development of a more integrated and holistic planning and development methodology. This methodology is based upon consideration of environmental, economic and social impacts of land and builtform to deliver positive outcomes from the development process. The Guidance Statement sets out considerations and site characterisation aspects to maximise the retention of natural landforms and retention of biodiversity. LandCorp has a dedicated environment services team to provide advice and support pojects to achieve all relevant State and Federal Government Environmental approvals and ensuring ongoing compliance with environmental conditions. In addition LandCorp's sustanability managers provide advice on minimising environmental impacts beyound statutory compliance. 80 SECTION 8 OUR SUSTAINABILITY PERFORMANCE SECTION 8 OUR SUSTAINABILITY PERFORMANCE 81

42 BIODIVERSITY Performance Habitats protected or restored In line with statutory approvals and the Landform and Biodiversity Policy LandCorp retains natural vegetation and habitat on its development sites. This may be along the boundary of sites, in drainage swales, or conservation areas. On some projects such as those listed below, larger tracts of habitat are retained. Significant areas of retained vegetation are usually transferred to the Local Government authority or to the Department of Parks and Wildlife for ongoing management of vegetation. LandCorp s urban renewal work, involves the investigation and remediation of sites contaminated by historical landuses. Projects Approved by State and/ or Commonwealth Environment Agencies Rockingham Industrial Zone Alkimos Beach Residential Estate Eglinton South Yanchep Residential Estate Buckingham Way Residential Estate Area Protected 91ha of habitat protected in a conservation area to be managed by Department of Parks and Wildlife. 52ha of rehabilitation area including trial recreation of a Threatened Ecological Community 41ha protected in Regional Open Space to be managed by the City of Wanneroo, 126ha habitat protected as off-site offset in Shire of Gingin 185ha protected in Regional Open Space to be managed by the City of Wanneroo, 1060ha habitat protected as off-site offset in Shire of Gingin 8.3ha native vegetation retained on as Bushland Protection Area managed by the Shire of Collie. 200ha habitat purchased as an off-site offset, managed by the Department of Parks and Wildlife Biodiversity is highly valued by the wider community in terms of both species protection and aesthetic aspects associated with green spaces. Location Rockingham Wanneroo and Gingin Wanneroo and Gingin Collie As part of obtaining environmental approval for projects under the provisions of the Commonwealth Environmental Protection and Biodiversity Conservation Act 1999 (EPBC Act) LandCorp purchased four properties amounting to 4,402ha of land in the Shire of Gingin as an Advanced Offset. This Advanced Offset has been endorsed by the Commonwealth Department of the Environment. The land purchased was previously zoned for farming purposes. Purchase of these land parcels has ensured that they are protected as Regional Open Space under the management of the Department of Parks and Wildlife. During ha of native vegetation comprising habitat for the Endangered Carnaby s Black Cockatoo (IUCN Red List species) was cleared for development. This included: Alkimos residential estate, Wanneroo; 43.44ha cleared; and Buckingham Way residential estate, Collie, 4.24ha cleared. Total area of land decontaminated and remediated LandCorp s urban renewal work, involves the investigation and remediation of sites contaminated by historical landuses. LandCorp s Environmental Services team also assists other State agencies to manage their contaminated sites, and acts as Project Manager for the investigation and remediation of orphan sites. During LandCorp project managed the investigation of 12 sites amounting to 295ha of land for its own developments, and a further 43 sites; totalling an area of 5,116ha for other State agencies and programs. Of LandCorp s sites, five were successfully remediated to enable residential landuse: former Craigie Senior High School site, former Carine Tafe site, former Koorilla Primary School site and Claremont Oval. The former timber mill site in Walpole and former railway marshalling yards in Forrestfield were remediated to allow for industrial landuse. The remainder of sites investigated did not require remediation, or have not yet been remediated. The total area of land assessed for remediation but not yet remediated, and total area of land that is potentially contaminated but the level of contamination is not known or assessed is not currently readily available and information will be collected in future reporting periods. 82 SECTION 8 OUR SUSTAINABILITY PERFORMANCE SECTION 8 OUR SUSTAINABILITY PERFORMANCE 83

43 WATER Project Eglinton/South Yanchep Rockingham Industrial Zone Mangles Bay Marina Development Claremont St John s Wood Environmental impact assessment and ongoing monitoring LandCorp undertakes environmental due-diligence as part of project planning to determine what environmental factors are present on, and surrounding a proposed project site. LandCorp obtains relevant State and Commonwealth environmental approvals prior to commencing development Western Australian Environmental Protection Agency Approval Alkimos-Eglinton Metropolitan Region Scheme - Amendment 1029/33, Approved April 2006 via Statement 722 Approval granted May 2011 via Statement 863. Variation to project boundary requested July 2014 Approval granted 19 June 2014 via statement 974 EPA advised in 2012 that no assessment of project required Challenges As part of LandCorp's Internal Audit program, internal auditors (KPMG) undertook an audit of environmental risks. The audit concluded many of the recommendations from the 2013 Audit had been completed including: all employees completing environmental training via the online training system, and all contract documents including clauses requiring contractors to works at a site. During the following environmental approvals were finalised. Each project was open for public comment by the relevant agency. Where required as part of the State and/or Commonwealth environmental conditions of approval LandCorp provides the results of its environmental monitoring programs via project websites. Commonwealth Environment Agency Approval Referred to Commonwealth 17 June Approval granted 14 June 2013 Variation to Approval conditions requested, variation to Conditions approved 7 July 2014 Referred to Commonwealth Final approval granted 30 November LandCorp requested variation to Conditions March Variation to Conditions approved 19 June 2014 Referred to Commonwealth in 2010, awaiting final approval Referred to Commonwealth 20 June advised by agency 17 July 2014 that no assessment of project required comply with the environmental approvals obtained by LandCorp. Future actions arising from the 2014 Audit include: Reporting to senior management on environmental compliance with approval conditions and requirement for improved reporting on environmental compliance by contractors and consultants such as reporting on compliance against sitespecific management plans and approval conditions. Water Commitment LandCorp contributes the greatest direct value to water conservation and efficiency though the structure planning process with the development of integrated water management strategies. These strategies aim to minimise irrigation demands, both domestic irrigation and for public open space which are the largest non-drinking water uses within the structure planning area. The State Government Policy Better Urban Water Management sets the framework for our influence over water impacts. We also factor water efficiency considerations into the design of public open space, including the use of drought tolerant species. Whilst LandCorp does not have operational control over water consumption post construction we seek to influence end-use (i.e. household, commercial use) water efficiency and source substitution though partnerships, design guidelines and demonstration projects. Approach Since 2008 all projects within Western Australia must comply with the State s Better Urban Water Management (BUWM Policy). As such, as part of formal development approval LandCorp s projects comply with this policy by preparing a strategy aiming to achieve a holistic understanding of the water balance of the site and issues impacting storm water recharge and quality. The State Policy requires the development of water strategies appropriate to the development scale. At the regional, district and local scale a Water Management Strategy is required. These strategies require an integrated water cycle management approach taking into account long-term regional and district issues. A Subdivision proposal requires an Urban Water Management Plan. During this phase the focus is on water sensitive urban design that has a local response and built environment focus. In order to facilitate the internal compliance with the State BUWM Policy, LandCorp has developed the Urban Water Management Policy which identifies the procedure and project requirements to implement urban water management. 84 SECTION 8 OUR SUSTAINABILITY PERFORMANCE SECTION 8 OUR SUSTAINABILITY PERFORMANCE 85

44 WATER We are also a contributing partner in the CRC for Water Sensitive Cities consortium which is a nine year national research program into how to make Australian cities more water sensitive, resilient and healthy. The oversight for BUWM compliance and LandCorp s Urban Water Management Policy is administered by our Development Managers and external specialist consultants who are engaged to prepare the project water management strategies as required. Technical advice is also available from LandCorp s Environmental Services and Design Sustainability and Innovation team. Wherever possible we are committed to demonstrate best practice by applying design guidelines requiring water efficient appliances and fittings. Throughout innovation and demonstration projects we explore large scale water solutions such as recycled water for landscape irrigation such as the Recycled Water Scheme at Mulataga Karratha. Recently, LandCorp have used the modelling tool Precinx (Refer Innovation: Assessment Tools). Precinx helps us to understand the potential environmental performance of our projects, including water. While the tool is currently only used across a select sub-group of our Metropolitan projects there is the potential to use this tool across more Metropolitan projects in the future. Our water performance can also be assessed through the application of sustainability assessment tools such as the Urban Development Institute of Australia s EnviroDevelopment. The water objective is around improving water use efficiency, considering reduction in potable water use through water efficiency mechanisms and source substitution to utilise alternative water sources to meet irrigation demand for public open space and the use of drought tolerant species, as well as end user education initiatives (Refer Innovation: Assessment Tools). We are also a contributing partner in the Co-operative Research Centre (CRC) for Water Sensitive Cities consortium which is a nine year national research program into how to make Australian cities more water sensitive, resilient and healthy. Performance LandCorp s current Local Water Management Strategies with ongoing civil work construction during 2014 include: Broome Port Development with a LWMS completed August 2012 currently under construction; Onslow Townsite Development with a LWMS completed October 2012 currently under construction; and Alkimos Beach with a LWMS completed April 2012 currently under construction. Compliance with BUWM requires specific data and information generation (including water source information) in order to inform the decision making process. This information is contained within the respective Water Management Strategy or Plan. Water used at the civil work/ construction phase could be accessed and tabulated, but at the moment this information is not collected and exists as a ground water allocation licences from the Department of Water. LandCorp does not have operational control over the water consumption post construction. However, some projects such as Alkimos Beach South have estimated the potential water demand post construction. Challenges Cross-business meaningful data collection for water is a challenge. This is an area where we could improve to better communicate in reports such as this, our water impact and performance. 86 SECTION 8 OUR SUSTAINABILITY PERFORMANCE SECTION 8 OUR SUSTAINABILITY PERFORMANCE 87

45 WATER Artist impression for illustrative purposes only. Artist impression for illustrative purposes only. Example: Environmental sustainability at Alkimos Beach Alkimos Beach is located 40km north of Perth between Joondalup and Yanchep, and is a 224ha coastal development. It is expected that at completion the project will provide over 7,000 dwellings and a number of commercial public use space for a population of approximately 15,000 people. To support and materialised this vision it was agreed that the following five objectives should guide the planning, design and development of Alkimos: community wellbeing; economic health; environmental leadership; excellence in built environment and infrastructure; and responsible governance and project management. The project vision is that Alkimos achieves a new benchmark for sustainable living while sympathetically blending the superb natural environment with authentic development. A myriad of lifestyle options and amenities support an inspired, engaged community that appreciate the significance of their surroundings. Landform and biodiversity The approach ensures that the connection of the development to the coast does not sever the bush forever coastal strip. To achieve this approximately 41.9ha of foreshore reserve and 5ha of ecological reserves will be gifted to form a corridor of ecologically significant width running up the coast and around the back of the coastal village into Shorehaven. The parabolic dune, which loops from the coast to the freeway and back, is recognised in the design and celebrated through native hilltop parks. Land surrounding the southern parabolic dune green link will rise up to the hilltops to accentuate the form of the dune. Lots within 50m of the southern green link will be delivered as natural lots where retention of slope and the delivery of an enduring sense of naturalness on the lot will prevail. View lines will be incorporated into the design to reinforce views to the conserved natural landscape, coastal foreshore and ocean. An Integrated water management strategy was prepared aiming to minimise irrigation demands, for both domestic and public open space irrigation which are the largest non-drinking water uses within the structure plan area. The development will adopt soil improvement and irrigation criteria for open space landscape design Initiatives underway include; mulching of gardens beds (50mm 75mm using certified AS4454 mulch), and irrigation of public open space to comply with the City of Wanneroo s irrigation and hydrozoning specifications. A third pipe initiative to tackle water scarcity was proposed and investigated during the preparation of the district structure plan completed in 2010 in conjunction with the other landowners in the district. LandCorp played an important role in bringing together private industry and State Government to attempt to resolve an urban land development challenge. Whilst this initiative was not successfully implemented, it demonstrates our commitment to try new innovative approaches through collaboration even with the inherent risk that they may not eventuate. Alkimos Beach includes the provision of Photovoltaic (PV) panels for the first stage. In addition, Lend Lease and LandCorp have partnered with Synergy to demonstrate the commercial feasibility and first operation of a community battery energy storage device. The aim is to develop a new economic model, supported by innovative products and services that unlock additional value from new rooftop PV cells, combined with energy efficiency and demand reduction measures, for households, land developers, electricity retailers and network operators. This will achieve a 100% penetration (by homesite) of distributed renewable energy (approximately 250kW) on the local electricity network as enabled by ~ 1.1MWh lithiumion battery electricity storage for 100 homesites. Through design and implementation, this combination of distributed renewable energy, community battery storage and associated products and services will reduce peak demand to the point that, if replicated, future residential land developments require less electricity infrastructure in order to maintain, or improve, the current levels of power quality and reliability. Alkimos Beach is the first Western Australian project to achieve all six leaves of the Urban Development Institute of Australia EnviroDevelopment certification. Alkimos Beach was also successful in being one of only two projects selected in Western Australia as a pilot for the Green Building Council of Australia Green Star Communities rating tool. 88 SECTION 8 OUR SUSTAINABILITY PERFORMANCE SECTION 8 OUR SUSTAINABILITY PERFORMANCE 89

46 CARBON AND ENERGY Carbon and Energy Commitment LandCorp s direct control over energy and associated emissions is somewhat limited. However, we can add considerable value through the project planning and design process through the consideration of climate responsive design (CRD) at the sub-divisional scale. While end-use behaviour is outside of LandCorp s control we influence household energy efficiency through the application of our CRD Policy and design guidelines, and where possible we form partnerships that can extend our areas of influence (i.e. behaviour change and demonstration and innovation projects exploring renewable energy production). Approach There are currently no carbon and energy related regulatory requirements for the land, infrastructure and property development industry other than for building efficiency controlled by the National Construction Code (NCC) applicable to buildings erected in Australia. Due to population growth, escalating energy cost and the expected impacts of climate change; the demand and cost of energy are increasingly becoming a global issue. In Australia energy use efficiency and access to affordable and green sources of energy are becoming increasingly important to the community and Government. Opportunities for energy efficiency either at the subdivision design scale or built-form level are considered on a project-byproject basis. We currently do not collect information on energy consumption outside the organisation or post occupancy of our projects. Through LandCorp s CRD Policy, application of design guidelines, decision making support through the Precinx modelling tool (Refer Innovation: Assessment Tools), and program of innovation, we seek to consider sustainable energy production and reduce energy use. Climate Responsive Design Policy (CRD) The Policy outlines guidance to optimise climate responsiveness of our projects. The approach relies on thorough analysis of the local climate conditions and site constraints, and consideration and incorporation of orientation into the planning and design process. The provision of solar access (winter primarily); The Policy requires that the design and planning employ subdivision block layout (lot orientation), lot configuration design, and setbacks to achieve and facilitate the improved performance of the built-form, including: The facilitation of access to prevailing winds (summer primarily); To avoid exposure to sun taking into account local climate zone; and Have due regard to broader urban design objectives and project constraints that may encourage or compromise the delivery of balanced social, economic and environmental outcomes. Wherever possible, LandCorp is committed to demonstrate best practice by applying CRD at the subdivision level and therefore facilitating the improved orientation and performance of buildings. The aim of the Policy is to reduce residential energy consumption and improve affordable living by: reducing the need for mechanized, energy-dependent air-conditioning devices; sustain and increase thermal comfort for occupants; maximise liveability through access to natural light, natural ventilation and natural climate control; and preserve and enhance the relationship between internal and external living areas. The Policy is available for use across LandCorp s projects, however it not currently adopted across all projects and we are in the process of embedding it into the business. Design Guidelines We use design guidelines to influence and improve climate responsive design/ energy efficiency of the built-form by suggesting design solutions to improve shading, solar access, cross ventilation and energy efficienct appliances and fixtures. The need and use of guidelines varies from project to project, however design guidelines importantly enable LandCorp to support the climate performance at the sub-division scale by facilitating passive performance at the built-form level (Refer: Design). While end-use behaviour is outside of LandCorp s control we influence household energy efficiency through the application of our Climate Responsive Design Policy and Design Guidelines, and where possible we form partnerships that can extend our areas of influence. 90 SECTION 8 OUR SUSTAINABILITY PERFORMANCE SECTION 8 OUR SUSTAINABILITY PERFORMANCE 91

47 CARBON AND ENERGY Precinx assessment and modelling tool We are working to better understand our energy impact by using tools such as Precinx to forecast energy consumption and savings. This tool identifies opportunities for the provision of sustainable energy infrastructure. So far Precinx has been used on a select number of projects to determine the cost and benefit of proposed initiatives (Refer: Innovation Assessment Tools). The development sector traditionally have not participated in the provision of energy production; however increasingly the industry leaders are promoting household renewable energy generating technology mainly photovoltaic cells. As part of our partnership with Lend Lease, we have used Precinx to assess the value of providing photovoltaic panels (PVs) and other energy initiatives. This assessment supported the implementation of PVs for all dwellings in stage one of Alkimos Beach and will be reviewed during the next 12 months to assess the viability of extending the provision of PV to the rest of the development. In addition, Alkimos Beach is exploring the battery storage to be used to collect the surplus energy from the Stage 1 PV. This initiative will allow Alkimos to minimise household running costs and minimise energy requirements on the grid at peak hour. We have also implemented energy efficiency/ passive design solutions at the built-form level through a demonstration and innovation project in Madigan Estate, Pilbara (Refer: Pilbara Vernacular Handbook and Demonstration House Design Competition). Performance assessment tools Some projects, such as Alkimos Beach have visions that are instrumental in directing the team to explore energy solutions. Precinx, Urban Development Institute of Australia s EnviroDevelopment, and Green Building Council of Australia Green Star Communities have been adopted to guide planning and design for energy as well as other dimensions of sustainability. The Alkimos Beach Energy Smart Home package is expected to achieve a 52% improvement in energy and carbon emissions compared to business as usual. Demonstration projects Through our innovation demonstration projects we extend our area of influence over energy efficiency and lowering related emissions. Through demonstration and partnerships we test new approaches that may form innovative demonstration to our own staff, the wider industry and community (Refer: Innovation: Cool Earth; Pilbara Vernacular Handbook; Gen Y Demonstration House Design Competition; and Alkimos Beach). Challenges Monitoring and measuring the uptake of the CRD policy has been challenging. In the next 12 months we will investigate ways to better embed the Policy into practice and options to monitor its uptake. We will also raise awareness of the benefits and objective of CRD for our project managers and consultants. We expect the embedding the CRD policy will contribute to improve energy use efficiency in our developments resulting in a decrease of emissions associated with the production of electricity and its impact on climate change. Climate Change The potential impacts of climate change in the State include major shifts in temperature and rainfall. There could also be increased frequency of extreme events, such as cyclones and coastal flooding, as well as sea level rises across Western Australia. As outlined in LandCorp s Climate Change and LandCorp Policy Statement we are committed to addressing climate change through consideration of mitigation and adaption in the following areas: higher density transit oriented urban development to maximise the use of public transport, walking and cycling; climate responsive urban design to reduce energy use and increase energy efficiency by reducing the need for mechanical heating, cooling and maximising access to natural light and ventilation; working with other stakeholders to incorporate, plan and respond to future climate change impacts in coastal areas, such as sea level rise, coastal flooding, and other extreme events; exploring strategies to incorporate renewable energy sources such as geothermal, wind and solar energy into development; developments which create local employment centres and opportunities to minimise the carbon impacts associated with commuting and transportation; retaining vegetation and revegetation to offset carbon emissions; reduction of water use through efficiency measures (e.g. fixtures and fittings, waterwise landscapes and efficient irrigation systems); exploring opportunities to reduce potable water use through the secondary supplies such as recycled water and stormwater harvesting; measuring and reporting on energy use and carbon emissions as part of corporate sustainability performance; and encouraging sustainable behaviours at work and home through education. The Alkimos Beach Energy Smart Home package is expected to achieve a 52% improvement in energy and carbon emissions compared to business as usual. Currently we consider climate change risk on a projectby-project basis. Coastal vulnerability and flood studies due to expected sea level rise and storm surge are applied in key coastal developments. LandCorp is adapting its response to mitigate impacts from possible sea level rise and storm surges under the State Planning Policy 2.6 State Coastal Planning. The policy requires greater consideration to this challenge by ensuring that the location of coastal facilities takes into account coastal processes, landform stability, coastal hazards, climate change and biophysical criteria. 92 SECTION 8 OUR SUSTAINABILITY PERFORMANCE SECTION 8 OUR SUSTAINABILITY PERFORMANCE 93

48 WASTE Waste Commitment Waste management through our demolition and construction activities is relevant to LandCorp s Operations in the development sector and to society. The objectives are to maximise resource efficiency and reduce or mitigate the impacts of material production and development on the natural environment. Construction and Environment Management Plans are often required for projects that have the potential to cause significant environmental impacts. These plans often include objectives to manage waste in an environmentally acceptable way and to follow the waste management hierarchy of: avoid, reduce, recycle before disposal as a last resort. We also aim to close the loop where possible through the specification of recycled material, or materials that have been designed to use less resources. We will also work towards aligning with the Western Australian State Waste Strategy which outlines a target for construction and demolition waste recycling of 60% by and 65% by Approach Procedure for project waste management plans ensure a more consistent approach to our waste management practices. The procedure will have a particular focus on projects with the potential to generate significant quantities of demolition and/or construction waste such as urban infill sites. The Masters Builders Association of Western Australia has produced a Smart Waste Guide that is recommended as a best practice guide for builders and developers in Perth and will be referred to in LandCorp's waste procedures. The Alkimos project has a builders' waste initiative that collects construction waste from building sites for recycling and stores it at a centralised facility for reuse by builders. Recycling facilities in the regions are fewer and long distances are a challenge to transporting waste to recyclers. LandCorp meets statutory compliance with hazardous waste regulations such as for disposal of asbestos and other hazardous materials associated with demolition of buildings, and disposal of materials illegally dumped on LandCorp property. The new waste management procedure will provide the approach for the future development of project specific Waste Management Plans that will specify targets on a projectby-project basis. LandCorp s operations do not discharge liquid wastes and therefore this is not captured and reported. Performance Currently information is not readily available or collected across all of our projects for total weight of waste by type and disposal method. Future project Waste Management Strategies will address this gap with project demolition construction waste and recycling targets and information capture. Asbestos Contaminated Soil Source Total Landfill Claremont North East Demolition waste 6,325t 6,325t North Lake Demolition waste 1,350t 1,350t Carine Tafe Demolition waste 612t 612t The above table identifies asbestos contaminated soil which was removed from several infill development sites. These figures were reported for the This equates to a total of 8,287 cubic meters asbestos contaminated soil reported (converted to 8,287 tonnes, assuming to be mixed with sand 1cu.m = 1 tonne). No hazardous waste is knowingly imported, exported or treated by LandCorp and no LandCorp discharges or runoff significantly affected any water bodies or related habitats. LandCorp only occasionally have dewatering discharges for construction works, however are unaware of any this reporting period. Challenges Western Australia has some of the highest disposal rates for Construction and Demolition waste in Australia and the lowest recycling rates. Waste management is clearly a challenge for the development industry generally. As Landfill rates increase alternatives to landfill such as recycling for road base will become more economically feasible. Alkimos and Perry lakes project have initiated waste recovery from construction (Alkimos) and demolition (Perry lakes) with some success. LandCorp has opportunities to improve the recovery of demolition waste by specifying recycling targets commensurate with the state These plans often include objectives to manage waste in an environmentally acceptable way and to follow the waste management hierarchy of avoid, reduce, recycle before disposal as a last resort. waste strategy targets and to also help close the loop by specifying the use of recycled material in civil works where possible. Future project Waste Management Strategies will address project generated construction and demolition waste and recycling targets. 94 SECTION 8 OUR SUSTAINABILITY PERFORMANCE SECTION 8 OUR SUSTAINABILITY PERFORMANCE 95

49 ECONOMIC Example: Reduction in waste and waste to landfill in Perry Lakes Located in the Perth suburb of Floreat, Perry Lakes has played a significant role in Australian sporting history. The Perry Lakes athletic stadium was built for the 1962 British Empire and Commonwealth Games. It subsequently became a multipurpose sporting venue but over the years the facility became outdated and run down. The Perry Lakes Redevelopment Act 2005 was enacted primarily to formalise the resumption of the 15.56ha by the State Government from the Town of Cambridge. The Act contained mandatory sustainability requirements including targets related to recycling and construction management. The most significant result of the project s recycling efforts has been the ability to divert more than 75% of material from landfill disposal. Through the detailed separation of contaminated soil, concrete and rubble, steel beams and asbestos pipes from the non-contaminated materials, construction and demolition materials from Perry Lakes was able to be recycled. The most significant result of the project s recycling efforts has been the ability to divert more than 75% of material from disposal in landfill. Many of the recycled materials are now present as landscape design features or artwork at the site. At stages 2A and 2B of the redevelopment, all demolition material, with the exception of asbestos-containing materials and contaminated soil, were either reused onsite in landscaping or diverted from landfill through recycling efforts. As a result 100% of the steel, metal, timber, concrete, topsoil, road material, asphalt, plastic, bricks and green waste was recycled. Similarly at stage 3 all material, with the exception of asbestoscontaining materials and contaminated soil, was either reused onsite in landscaping or diverted from landfill through recycling efforts. 100% of the scrap steel, aluminium and other metal were recycled; 100% of clean recyclable concrete was recycled; 37.5% of mixed rubbish was recycled; 100% of bricks were recycled; and 100% of green waste was recycled. The material reused on site included 2,900 clay bricks reused in retaining walls; 85 cubic metres of crushed brick as inorganic mulch; and 650sqm of Wandoo timber seating reused to construct the boardwalk. Recycled material included 218 cubic metres of metaliferous materials such as aluminium, copper and steel; 2,868sqm of road base; 50 Kopper logs; 268 cubic metres of brick; 2,334 cubic metres of concrete; and 140 cubic metres of salvageable material, including window frames and concrete pavers Economic Economic Indirect Commitment 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. Approach LandCorp s industrial, commercial, and mixed-use precincts (including activity centres), in both regional and metropolitan areas, stimulate economic growth, diversification, and community development. Our general approach managed and implemented through our delivery programs and on a project-by-project basis is outlined to the right. Supporting wider government strategic planning for industrial (Strategic Industrial Areas, General Industrial Areas, light and commercial), and mixed-use precincts (activity centres and regional and local centres), including economic development, diversification, target markets, employment growth, expansion opportunities, and the development of resilient communities. Expanding and strengthening business, Government partnerships and relationships to support appropriate governance, achieve results and targets, deliver development and infrastructure, support appropriate opportunities for expansion and diversification, share information, exchange knowledge, and demonstrate leadership in land development. Developing and facilitating sophisticated and appropriate marketing programs to promote, target and share knowledge of developments, and leverage other strategies being delivered across Government. Facilitating land development to meet industry and business ongoing demand, including opportunities to de-constrain land particularly around transit nodes, staging land release as necessary, creating industrial buffer zones as appropriate, and providing places that support community and economic development. Wherever possible facilitating and developing sustainable precincts which can be assessed for their overall sustainability by using techniques and rating tools, including Green Building Council Australia Green Star for buildings and communities. Examining and encouraging affordable land to attract key tenants, developers, and infrastructure contributions to facilitate agreed visions and objectives of a development, and where appropriate engaging local businesses and the community. 96 SECTION 8 OUR SUSTAINABILITY PERFORMANCE SECTION 8 OUR SUSTAINABILITY PERFORMANCE 97

50 ECONOMIC Economic development supports the development of sustainable and vibrant communities. Figure one below captures this relationship: Example: Australian Marine Complex integrated industrial estate oil and gas modules. Vibrant and Diverse Communities Positive impact occurs when economic development creates employment in locations that are either easily accessible by public transport or are close to residential developments. This relationship is supported by the Department of Planning s employment self-sufficiency and containment targets. There is also a multiplier effect where economic activity of one kind will create a complimentary activity of another and/or grow communities, which then require more associated services and amenities (i.e. Government and hospitality services). LandCorp considers all of these factors when planning for land development. Economic Development Social Opportunity Negative impacts can occur when the local context is not considered during planning for commercial development. This not only includes accessibility, local and affordable housing, and amenities but also that the appropriateness of development close to a particular community or in an environmental context. This can influence the kind of development (general to light industrial) and be influenced by environmental impact assessments. Where possible, LandCorp considers all these factors, including appropriate buffer zones and landscaping with native species. Performance Infrastructure investment and services LandCorp develops significant industrial precincts including Strategic Industrial Areas, General Industrial Areas, light industrial, mixed-use development and activity centres, and often contributes to the infrastructure to support these. LandCorp strives to implement wider Government economic policies and strategies and therefore works closely with Local Governments, the Department of State Development, the Department of Commerce, the Department of Planning and private industry. LandCorp s role is diverse ranging from land development to project management. This is demonstrated in the following two significant infrastructure projects. The Australian Marine Complex (AMC) is a world-class centre of excellence for manufacturing, fabrication, assembly, service and repair for the marine, defence and resource industries. It is partly owned and managed by LandCorp and the Department of Commerce and is located at Henderson part of the Western Trade Coast, 23km south of Perth. The AMC has been developed to enhance the opportunity created by the clustering of industries and has become Australia s leading marine industrial estate. The AMC is a significant economic cluster in Western Australia, generating in excess of $3b in direct economic output each year. It is a significant exporter of high specification high value exports. There are over 5,000 workers within the complex, from Example: Ord-East Kimberley development project The State Government and its agencies, including LandCorp have been responsible for overseeing and coordinating this project. The $517m investment, made up of $322m of State Government and $195m of Commonwealth funding, 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. over 150 specialised businesses. Incorporating fabrication, ship building, technology and support industry precincts, the AMC features a deepwater port, world-class common user facilities, load out and fabrication infrastructure and high wide road access to nearby Kwinana and Latitude 32 industrial zones. The AMC has established international credentials for the repair, maintenance and construction of naval and commercial vessels, as well as infrastructure for the fabrication and assembly of offshore The State Government made $322m available for the Ord- East Kimberley Expansion Project, predominantly through the Royalties for Regions program. This contribution was used to fund the construction of physical infrastructure between 2010 and 2013 and created irrigation channels, drainage and roads to create the farmlands. Following a request for proposal process, Kimberley Agricultural Investments have been announced as preferred proponent to lease and develop 13,400ha into irrigated farmland, which is near completion with the first crop planting anticipated for A key component of the project delivery was indigenous outcomes as part of the native title agreement signed in 2005 between the State and the Miriuwung Gajerrong People. Key employment outcomes during the construction phase ( ) were 204 Aboriginal people employed overall with a peak workforce of 97 Aboriginal workers. Additionally $130m was spent through local content in over 82 local businesses, 14 of which were aboriginal owned. 98 SECTION 8 OUR SUSTAINABILITY PERFORMANCE SECTION 8 OUR SUSTAINABILITY PERFORMANCE 99

51 ECONOMIC Social infrastructure While we invest in developing industrial sites, there are also investments in social infrastructure to create vibrant communities and support economic activity. This considers the broad direct and indirect economic impact LandCorp has on the Western Australian community, particularly in regards to supporting affordable housing and living, placemaking, preserving historic assets and considering the impact our developments can have on community wellbeing and health. This brings a depth and value to our developments that the local community can be proud off, as well as supporting healthy living which then positively impacts other Government services. Examples of such investments in include: Affordable and social housing: we particularly consider the relationship between affordable housing, especially for key service workers, and economic development (Refer: Affordability section). Community education and health facilities: LandCorp also invests in community development programs that support education and good health. These are examples of community activities that attract and support connected and healthy communities. These investments include: Champion Lakes, Sunday morning pilates and an afternoon community event with a presenter showing participants how to plant and maintain a small herb garden; working with Lend Lease to develop a behaviour change program for new residents to help reduce their ecological footprint; connecting new residents at Broome North with local sport groups; and promoting cycling at Cockburn Central through providing a maintenance pole at the pop-up café, Mooba. Publicly accessible open/ recreation space: LandCorp also invests in creating good public open space that is accessible for all. This includes creating space that not only supports community development and wellbeing but also support economic development. Such investments have included establishing a sea container at Cockburn Central that is being used as a pop-up café to generate economic activation in an Activity Centre. Preservation and restoration of historic assets: where possible LandCorp protects, preserves or restores historic assets. In particular, this can include restoration through placemaking initiatives connecting the value and history of the site with the new development. Example: Celebrating the history of Craigie The history of the former Craigie High School site has been celebrated in a colourful public art piece at the entrance to LandCorp s new estate. Local artist and Craigie High School alumni Trevor Bly was commissioned by LandCorp to draw on the history of the site with his artistic representation of Craigie s 6025 postcode in large steel numbers. Mr. Bly, who published the book Craigie Tales documenting aerosol art in Perth s northern suburbs, said former students and local artists had a strong connection to the site. After the school closed down the terraces outside the gym and the former tennis court walls became a public canvas for hundreds of aerosol artists to practice their art. It was an important place for artistic development in the area, Mr. Bly said. Having collected the remaining terraces and pieces of the original wall and including them inside the sculpture, I hope to immortalise the significance of this site. LandCorp chief executive Frank Marra said great importance is placed on public art within new developments. Public art creates context and references the history of a place, we wanted to retain the connection to the school and those that spent time there. Standing at an impressive 1.8m high, the sculpture took one year to create and is filled with pieces of the terrace steps. It references the three dimensional quality of graffiti art, typically referred to as block buster or stomper and features bright colours including Soviet red, Smurf blue and Eureka yellow, popular choices with aerosol artists whose murals lined the terrace. LandCorp consulted the community in September 2013 to secure input from locals for an additional piece of public art at The Vive which will be shaped on what Craigie residents love about their suburb. This piece was completed in mid Indirect economic impacts LandCorp s Economic and Employment program explores how its activities can support the development of sustainable and vibrant communities, as described above. In particular, this program aligns with LandCorp s objective to help Western Australia grow which is not just about land development Example: Pilbara social and economic development The Pilbara communities have undergone transformational change over the last five to ten years due to mining construction. LandCorp has responded with land supply to meet the unprecedented demand. As mining projects are transitioning to operational phases the objective for the Pilbara Development Commission is to develop sustainable economic diversity and attract industry and workers to live and operate in the Pilbara. but also supporting economic diversity, business growth and employment. This can transform towns with employment and business clusters having a multiplier effect on local industries. This has been demonstrated in Karratha where the activity of the local mining industry Their development of the Regional Investment Blueprint, the primary social and economic development strategy for a region, aims to achieve this. LandCorp will support the Pilbara Development Commission to do this. This is likely to entail: implementing strategic assessments to ensure a pipeline of development ready land and commence long-lead time de-constraining works (i.e. overcoming complex land tenure and infrastructure arrangements); supporting the Pilbara Development Commission diversifying the economy; generated a multiplier effect on other industries in the region. LandCorp works across Government to support economic diversity, employment, investment and to overcome any negative impacts of activity, where local business and the community may find themselves unable to adapt to a change in the market, and market cycles. investigating new funding mechanisms; ensuring Government services have space to expand and operate; supporting delivery of Royalty for Regions initiatives (i.e. developing the town centres in Karratha, South Hedland and Newman); consulting with Government, industry and Chambers of Commerce; marketing the vision and maintaining private sector interest in project delivery; and aligning and delivering Government policies across the region. 100 SECTION 8 OUR SUSTAINABILITY PERFORMANCE SECTION 8 OUR SUSTAINABILITY PERFORMANCE 101

52 ECONOMIC Example: Kimberley social and economic development The Kimberley region has undergone significant change over the last 5-10 years and LandCorp has responded with land supply to meet the unprecedented increase in demand. LandCorp s program continues to deliver industrial and residential land to meet demand, including positioning regional centres to be development ready for future up-swings and population growth. This also includes LandCorp s role in supporting the Kimberley Development Commission and relevant partners to implement the Regional Investment Blueprint. This is likely to entail: a facilitation and coordination role to support stakeholders to implement the objectives of the Regional Investment Blueprint and industry attraction strategies, particularly around the Kimberley s drivers of economic growth; investing in the Broome Road Industrial Area development over the next years; support Government services requiring space to expand and operate; support the delivery of Royalties for Regions initiatives, including the potential Broome and Kununurra Growth Centre Planning; and maintaining a Broome based regional manager and facilitating consultation across Government and industry, including relevant steering group meetings. Example: The Western Trade Coast strategic industrial cluster The Western Trade Coast (WTC) is a significant industrial project for Government, with the Department of State Development being the lead policy agency and LandCorp playing an implementation and delivery role. Estates within the WTC include: Australian Marine Complex, Kwinana Industrial Area, Rockingham Industry Zone and Latitude 32 Industry Zone. A committee comprising key stakeholders forms part of the project. In September 2013 the Committee received a Western Trade Coast Integrated Assessment Environmental, Social and Economic Impact Report. The Report prepared by Sinclair Knight Merz (SKM) and Resource Economics Unit (REU) is the fourth report of its kind (previous reports were published in 1990, 2002 and 2007). The following is sourced from that report. The report presents and reviews environmental, social and economic performance data of WTC industries, sourced directly from these industries and supplemented by State and Local Government data and other published reports. Both qualitative and quantitative data were collected, with 40 interviews conducted and 27 questionnaire responses analysed. The following key findings reinforce that the WTC is the State s premier industrial area, and has evolved a unique level of connectivity that gives strategic advantages to industry located within the WTC as well as Western Australia in general. A significant contributor to the Western Australian economy with direct sales of $14.7b per annum. Employs 11,362 people directly, of which 64% live locally within Cockburn, Kwinana or Rockingham. Pays $953m in wages and salaries directly to workers employed within the WTC. Indirect inter-industry flow-on effects amounting to an estimated $10.3b in output, $0.8b in wages and salaries paid, and 18,274 jobs. A positive social contribution to local communities with over $1.8m in donations reported by industries participating in the study for , over double the value reported in 2007, in addition to the high level of local employment. An extensive and highly integrated network of industrial symbiosis with approximately 158 synergies mapped between Kwinana cluster industries within the WTC, making the WTC a global leader in this area. Some protection from urban encroachment, though pressure does exist on the buffer, requiring further planning controls to protect both the community and industry. A skills development centre and provides the state with a uniquely skilled workforce. The skills developed by WTC industries makes the local workforce highly valued by resource industries in the north. Committed to managing the environmental impacts of industry. Environmental issues including noise, air quality, societal risk, groundwater and the marine environment of Cockburn Sound are being well managed by industry and Government, and have continued to improve over time. 102 SECTION 8 OUR SUSTAINABILITY PERFORMANCE SECTION 8 OUR SUSTAINABILITY PERFORMANCE 103

53 INNOVATION AND DEMONSTRATION Example: Research to support our Industrial projects The development of an economic model was commissioned to provide a rule-of-thumb economic value guideline for all LandCorp industrial estates and comparative competitive estates. The model demonstrates the economic benefits for each industrial estate with regards to direct employment numbers, employment density, employment composition and various economic output measures. It also provides longitudinal data to demonstrate how economic activity for each estate has increased over time. Although not a replacement for a full economic impact study, the model enables access Project LandCorp Industrial Estates Direct Employment to consistent and reliable information on the economic value of an industrial estate on demand and can be updated as new data is available. The model will be utilised within LandCorp on an ongoing basis to provide economic values for a variety of uses including; marketing communications for specific industrial estates; planning processes for specific industrial estates; strategic planning for the industrial program; and considering design of future estates based on businesses likely to locate in the area. Employment Density (jobs per hectare) Number of businesses The results from near-complete or complete LandCorp projects and other comparative estates demonstrate their indirect and direct economic impact. Economic Output (value of goods and services) AMC 5, $3.14b Wangara 10, ,326 $3.82b Canning Vale 14, $5.29b Other Comparative Industrial Estates Kewdale 7, $3.00b Osborne Park 21, ,699 $6.51b Balcatta 8, $3.13b Malaga 15, ,065 $5.30b Challenges Many of our projects are long-term, with a long-term vision to meet State needs. As such there are long lead times before we are able to fully understand the indirect and direct impacts and success of our Economic and Employment related developments Innovation and Demonstration Demonstration Projects Commitment The implementation of successful demonstration projects requires a new and integrated business approach, involving an iterative process of testing new options and ideas, research, finding solutions to challenges, and identifying new opportunities. In a changing world with high community and stakeholder expectations and limited resources to tackle complex challenges, a new approach is required especially for demonstration projects. Through demonstration projects we explore how we can extend our influence across our sustainable development material issues. Approach Underpinning our approach are the following guiding principles that we believe are critical to demonstrating innovative sustainable development: opportunity for sustainable development is considered at the very beginning of a project and during project reviews, so it can be integrated into the project planning and design; sustainability requires us to integrate Design Excellence, Community Wellbeing, Environmental Responsibility and Economic Health in an integrated way; creation of clearly articulated and co-developed project vision and objectives based on preliminary site and context analysis, forming a common understanding for everyone involved in bringing the project to fruition; opportunities for design, sustainability and innovation to be identified and tested in the early stages of project planning and design and subsequently embedded into business case and project planning; collaborative team approach requiring the cooperation and coordination of diverse skills and disciplines from across our business including property, project management, design, sustainability, social, environmental, marketing and sales; and where appropriate and relevant replicate, communicate and share our approach with our Government, industry and community stakeholders. Applied research is crucial to assist us in making well informed decisions. Our research and intelligence team facilitate and assist LandCorp though primary and secondary research inhouse, as well as outsourcing to external research agencies to assist in decision making for a variety of functions across the business. Further information on our approach to research and activity is included in our Annual Report. Innovation through design competition Another approach that LandCorp has used to influence design outcomes has been the commitment to demonstration and innovation through design competition. In 2013 LandCorp created two opportunities for architects to develop leading edge housing design for Western Australia s growing and diverse population. Refer: Pilbara Vernacular demonstration house design competition' and Gen Y demonstration house design competition'. 104 SECTION 8 OUR SUSTAINABILITY PERFORMANCE SECTION 8 OUR SUSTAINABILITY PERFORMANCE 105

54 INNOVATION AND DEMONSTRATION Example: Gen Y demonstration house design competition As part of the White Gum Valley development, LandCorp ran a design competition in association with the City of Fremantle, the Australian Institute of Architects and the Office of the Government Architect to explore innovative ideas suited to the needs of the next generation of home buyers. The vision for the 'Gen Y' competition was to: Create a unique and innovative dwelling that contributes to the eclectic character of the White Gum Valley neighbourhood and enhances the sense of place while providing a demonstration 21st Century living environment for the next generation of home owners The Gen Y Competition challenged young West Australian architects to create a concept design for an alternative dwelling typology that could integrate affordable living solutions and address the needs of the Gen Y lifestyle while at the same time providing innovative, cost effective and sustainable design solutions, building services, materials and construction methods. In addition the brief required proponents to interrogate the new provisions of the R-Codes (incorporating Multi Unit Housing Code provisions) and to explore alternative living and ownership arrangements. Twenty one submissions were received of which six were selected to develop a full concept for stage 2 of the competition. Following a rigorous assessment process of the final six designs, The Step House designed by architect David Barr was identified by the selection panel as an outstanding winner. As stated in the panel s report The Step House is a worthy winner of the competition and has fully addressed the brief for the competition site by providing a sophisticated solution for affordable housing on a small lot. The design provides a flexible housing solution based on adaptability and augmentation consisting of three separate one bedroom, one bathroom apartments, two on the ground floor and one above. Apart from the innovative design concept and composite construction methods, the building includes a range of sustainability initiatives based on climate responsive design, incorporating solar access and cross ventilation as well as energy efficient initiatives including led lighting, solar hot water and provision for future photovoltaic panels to reduce energy consumption. The design incorporates water efficient fixtures and fittings, waterwise landscaping and communal outdoor entertainment facilities. In addition, the clever design maximises the liveability of the spaces and integrates solar passive principles ensuring that the apartments, although modest in size, feel spacious, light and comfortable, and are easy to heat and cool, which will in turn keep ongoing living costs affordable. The main challenges of running a competition with a view to constructing a demonstration house is the ability to achieve an innovative built-form outcome in the specified timeframe without going over the budget. This has required considerable effort and collaboration at each stage of the project s development and a strong commitment to a rigorous review process at regular intervals. Ongoing challenges will be the procurement of a suitable builder to deliver the project and the development of a robust communications strategy to ensure that the benefits of the project are fully exploited. It is expected that construction of the Gen Y Demonstration House will commence in early 2015 and once completed the house will be open for several months to provide opportunities for educational tours to promote and share the innovative design and sustainability initiatives with industry groups, the local community and schools. 106 SECTION 8 OUR SUSTAINABILITY PERFORMANCE SECTION 8 OUR SUSTAINABILITY PERFORMANCE 107

55 INNOVATION AND DEMONSTRATION Example: 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-2013 to demonstrate the application of the Handbook. The design competition provided an opportunity for the invited architects (Troppo, Gresley Abas, Iredale Pedersen Hook) to showcase the Pilbara Vernacular principles in a demonstration house. The architects developed concept designs that materialised the character and sense of place unique to Karratha while providing functional efficiency and comfort at a reasonable market price. A panel of independent professionals, including members of LandCorp, the Office of the Government Architect and the Australian Institute of Architects awarded the first place to Gresley Abas for its holistic approach in responding to the competition brief. The Gresley Abas Pilbara Vernacular Demonstration House (completed August 2014) will be open to display until February The Gresley Abas Pilbara Vernacular Demonstration House was designed for the people of Karratha and responds to local conditions. The design stroked a careful balance by responding to Karratha s climate, people, character, culture and future. The Gresley Abas Pilbara Vernacular Demonstration House (completed August 2014) will be open to display until February 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. 65 years of design life for dwelling (including recurring maintenance) Energy efficiency High efficiency air conditioning system and condensed water used for irrigation 30sqm 5Kw Solar PV system High levels of wall, ceiling and roof insulation Mid-tone paving/aggregate to reduce heat sinking around home High quality solar hot water system 2.8m high ceilings fans, and energy efficient light fittings Real time display of passive design performance Water efficiency Top WELS rated fixtures and fittings 75mm thick mulching to landscape to optimise water retention Low maintenance and water-wise plant selections Sub-surface irrigation system to reduce evaporation Waste efficiency Prefabricated Portal Frame system reduces construction waste. 397,690 kilograms of carbon offset by proposed design resulting in a 100% Carbon neutral outcome This is equivalent to 123 or planting nearly 2,000 cars off the road for a year trees To further understand the performance of the house LandCorp have developed a monitoring program to test the effectiveness of passive responsiveness and energy efficiency capabilities. We will share these results and use them to further refine our implementation of the Pilbara Vernacular Handbook. 108 SECTION 8 OUR SUSTAINABILITY PERFORMANCE SECTION 8 OUR SUSTAINABILITY PERFORMANCE 109

56 INNOVATION AND DEMONSTRATION How Does the Geoexchange System Work? WINTER SUMMER / COLD / HOT Example: Cool Earth demonstration LandCorp is showing its commitment to industry leadership through innovation by launching a project utilising residential scale geothermal technology. The Cool Earth demonstration project aims to measure the effectiveness of a ground source heat pump system to heat and cool homes at the Vive - an urban infill development on the site of the former Craigie High School. LandCorp, in conjunction with the Alcock Brown-Neaves (ABN) Group will construct two identical homes at The Vive. One will contain the new ground source heart pump technology, the other will not. Both houses will be occupied and over a two year period the effectiveness of the system will be carefully monitored and analysed to determine the extent of its success compared with the control house. efficiency of a reverse-cycle air conditioning unit, rather than using outdoor air to warm or cool the unit s refrigerant - like most air conditioning units. As an open loop system, the groundwater can then be either re-injected into the groundwater aquifer or used for garden irrigation or other non-drinking water uses around the house. Other benefits include lower noise and reduced ambient air temperature. To deliver the project, LandCorp has partnered with: ABN Group, who will build the homes; GeoExchange Australia, which has developed and provided the ground source heat pump system; Carbonomics Australia, which will test the ground source technology s efficiencies; Geo Tech, which has helped develop and will install the open loop system; and / WARM Open Loop Geoexchange System A Memorandum of Understanding has been signed between the project partners in July Construction of the houses is expected to commence in early The project will be the first to monitor the efficiencies of the geo exchange system compared with conventional home heating and cooling in Western Australia. The partners are hopeful test results would show major cost and energy savings at a household level. / COOL The results will be made widely available to industry and the public to provide another option for householders looking to reduce energy costs associated with heating and cooling, and run more environmentally friendly, efficient and comfortable homes. Absence of a regulatory framework for such innovative systems requires a high level of cooperation with partners and regulators such as Department of Water to work through issues and risks. The open loop ground source system works by using the near constant temperature of ground water to improve the The University of Western Australia, which will analyse the test results. 110 SECTION 8 OUR SUSTAINABILITY PERFORMANCE SECTION 8 OUR SUSTAINABILITY PERFORMANCE 111

57 INNOVATION AND DEMONSTRATION An integrated approach has been taken to ensure high quality built-form and sustainability outcomes with a strong focus on climate responsive design and the provision of amenity for the White Gum Valley residents and the surrounding community. Example: White Gum Valley (WGV) demonstration project The development of the Kim Beazley School Site in White Gum Valley (WGV) will showcase high quality urban infill that demonstrates how the 47% infill targets of Directions 2031 can be met in a sensitive, context responsive manner aligning with community aspirations and values. An integrated approach has been taken to ensure high quality built-form and sustainability outcomes with a strong focus on climate responsive design and the provision of amenity for the WGV residents and the surrounding community. LandCorp s WGV team has worked closely with a range of consultants to ensure that the urban design and builtform contribute strongly to the creation of a distinctive and place based solution. The aim for the development is to create a climate responsive and people friendly urban environment that celebrates diversity, community and sustainability. The Structure Plan for the WGV development was lodged in July 2013 and was approved by the City of Fremantle in December 2013 and endorsed by the Western Australian Planning Commission in August The vision for the project is to create a high quality infill development that is highly site responsive and is built upon the context of the surrounding locality, seeking to leverage upon the site s strong attributes to enable the development to benefit the future community on the site as well as the existing community that surrounds it. Design excellence: the development will include a range of lot sizes and configurations to support local trends towards smaller households. Lots have been designed to accommodate a range of dwelling typologies including apartments, maisonettes, multi-unit housing and single houses. In addition, sites have been allocated for a proposed communal artists residence with workshop facilities and the Gen Y Demonstration House. During the planning stage different housing solutions were explored to ensure that the plan provides the lot configuration to support climate responsive design. The building design and environmental performance is controlled through the use of a Local Planning Policy and Design Guidelines which together support the philosophy of the development and the goal of demonstrating a 21st Century Sustainable Infill Development. Community wellbeing: diversity is a key objective and the WGV project provides a range of affordable living options through compact, flexible and adaptable housing with a high level of energy and water efficiency. Opportunities for communal amenities including community gardens, BBQ facilities and bike storage are provided for medium density sites to provide opportunities for community activities and interaction. Environmental responsibility: a range of environmental initiatives have been included in the design of the WGV development. Based on Precinx analysis, these include a range of water and energy efficiency measures for the built-form which includes an aspirational target of 70% reduction in energy and 56% reduction in potable water use compared to business as usual development. Numerous landscape design initiatives have also been incorporated including the use of a community bore with balanced aquifer recharge, irrigation efficiency, replacement of tree canopy (over 15 years), recycled materials, waste management, improved biodiversity and habitat. Some of the earliest initiatives included in the demolition and remediation phases were recycling by the contractor, donation of abandoned school desks and chairs to a remote indigenous community, and natural attenuation of contaminants reducing landfill reliance. As a demonstration project, the WGV development takes an integrated approach to sustainable development which has required the collaboration of a range of different agencies and individuals. The project team has worked very closely with the Local Government, the WGV community and a range of consultants for a number of years to achieve a holistic outcome while maintaining the commerciality of the project. Although One Planet Living principles have now been successfully integrated into the project it would have been easier if they had been introduced at the start of the project as this would have helped to maintain the vision, integrate sustainability initiatives and achieve buy in from stakeholders along the way. The ability to test urban designs scenarios, housing typologies and innovative water management strategies was critical to the success of the project so far which has attracted interest from a number of other agencies who are interested in being involved in this demonstration project including the Water Corporation and the Department of Water. A number of our tools and policies have been considered and applied during the planning and design phase for the WGV development including: Precinx Analysis, Climate Responsive Design Policy, Landform and Biodiversity Policy, Project Design Reviews, Design Guideline Template and Affordability Policy. 112 SECTION 8 OUR SUSTAINABILITY PERFORMANCE SECTION 8 OUR SUSTAINABILITY PERFORMANCE 113

58 INNOVATION AND DEMONSTRATION Example: Karratha City Core The vision for the Karratha City Core was highly aspirational and required a strong commitment to design excellence in both the built-form and the public realm to ensure that the development reached the standard required for an exemplar of regional city development. The project came about as a result of the Pilbara Cities initiative which was established in April 2010 and committed more than $1b in Royalties for Regions funds to address the issues associate with significant growth in the region. The aim of Pilbara cities is to build the population of Karratha and Port Hedland into cities of 50,000 people, and Newman to 15,000 people by 2035, with other Pilbara towns growing into more attractive, sustainable local communities. LandCorp developed a detailed design brief for the project to ensure that the future development of the City Core would reflect the lifestyle of the Pilbara and demonstrate a range of solutions to mitigate the harsh climate and conditions of the region. The development is to provide high quality outcomes that would set a benchmark for future development in Karratha and provide a lively and activated social hub for the people of Karratha to work, live and visit. A major component of the Karratha City Core development is the creation of a meeting place and opportunities for community interaction as well as the provision of high quality commercial and retail outlets, a hotel and key worker accommodation to support economic growth and diversification in the city centre. The built-form has been designed to contribute to the creation of high quality indoor and outdoor spaces, with appropriate scale and materials that draw from the Pilbara Vernacular. The concept design focussed on strategies to mitigate heat island effect and optimise the opportunity for cool shady public spaces through the use of climate responsive design including breezeways, shading, trees, landscape and water features. The materials, forms, colours and textures of the public realm were designed to reinforce the cultural and social identity of Karratha and the Pilbara. A combination of heavy and light materials have been integrated into the design of buildings and urban structures and opportunities for shade and enclosure, reminiscent of the local gorges, have been generously applied to create comfortable spaces and reduce heat load. Layered facades and integrated shading devices add interest and variety to the built-form while providing additional protection for buildings and public spaces. The integration of indigenous art and culture is considered essential to the creation of a sense of place for the Karratha City Core. LandCorp has engaged local artists in the design process to ensure that art works integrated into the design of buildings and structures reflects the local culture. Water Sensitive Urban Design has been incorporated including Waterwise local native and/or drought resistant landscaping and sub-surface drip irrigation. Trees and ground covers within the development have been chosen because of their suitability to the harsh climate, and to withstand cyclones. The major challenge for design and sustainability in the Karratha City Core has been the retention of the original vision as the project progressed through the planning and design phases and changing circumstances in the region. Throughout this period a range of consultants and a number of stakeholders have been involved in the planning and design process for the project. Along with the project team they have worked hard to hold on to the commitment to design excellence and the goal of achieving a place based design that is reflective of the culture and identity of the Pilbara. While the constraints of delivering a large scale regional development in harsh economic climate has certainly had an impact on the scope of the development, LandCorp has nevertheless managed to retain many of the key design and sustainability features and importantly it is expected that the project will deliver on the majority of the social and economic objectives for the people of Karratha. 114 SECTION 8 OUR SUSTAINABILITY PERFORMANCE SECTION 8 OUR SUSTAINABILITY PERFORMANCE 115

59 INNOVATION AND DEMONSTRATION Assessment tools The use of sustainability rating or assessment tools is a way to demonstrate commitment to delivering triple bottom line project outcomes which are externally verified by a third party. Industry sustainability assessment tools The Green Building Council of Australia's Green Star Communities rating tool is a holistic tool covering six key categories: environment, economic prosperity, liveability, design, governance, and innovation. The Urban Development Institute of Australia s EnviroDevelopment certifies projects across the following areas: ecosystems, waste, energy, materials, water and community. One Planet Living is a performance based framework developed by Bio Regional Australia which includes ten key principles of carbon, waste, water, materials, transport, food, ecology, economy, health and culture. For LandCorp and the development industry, these tools provide a framework for achieving and measuring performance towards sustainable development as well as positively contributing to project and corporate reputation. Our Executive team holds the responsibility of approving the application of assessment tools, generally on a project-by-project basis. The operations division, with input from the design sustainability and innovation team, provides recommendations to the executive team and supports the delivery of the assessment. The assessment organisation also provides an independent oversight for the project and sometimes specialist consultants help LandCorp and/ or its development partners through the assessment process. Currently a small group of LandCorp projects have been assessed through third party certification. As part of our focus to embed sustainable development into our business practices we are working towards embedding the application of tools early in a projects lifecycle. This considers which tool to use on a project basis and how this will benefit the project and align with the projects vision and context. It is important that assessment tools are considered early in the project planning stages to help direct the objectives of the project and to continuously We have achieved EnviroDevelopment Certification for: Evermore Heights, along with partner Satterley for Energy, Water and Community; Alkimos Beach, along with partner Lend Lease have achieved all six leaves (ecosystems, waste, energy, materials, water, and community); Mulataga, along with our partner Mirvac for all six leaves; and, Carine Rise, with development partners Cedar Woods for ecosystems and community for the whole development, and mixed-use commercial and residential areas are additionally certified in energy and water. We have also committed to seek EnviroDevelopment certification for the Rockingham Industrial Zone, and are incorporating the One Planet Living principles into our White Gum Valley development. We also seek opportunities to pilot the use of assessment tools to support their development and effectiveness. For example, Alkimos Beach is a pilot project for GreenStar Communities Pilot v1 and LandCorp and our partner Lend Lease has provided important feedback on the application of the first versions of the tool. The project is aiming for six stars. nationwide Government Land Organisation Sustainability Group. This comprises of representatives from Government Land Organisations to discuss shared issues, including the effectiveness of assessment tools, and providing collective feedback to assessing organisations. We are also working toward embedding other tools that don t deliver a certification but can assist to inform decision making. For example, Precinx, a mathematical modelling tool used in the planning and design phase of residential and commercial development to assess performance of possible initiatives across a range of key indicators including energy, carbon, water and transport and their impact on affordable living. It can identify peak demand, water consumption, and sewer loads as well as car use, household operating costs and affordable housing in comparison with the Perth metropolitan average. Precinx is used under license (from Urban Growth NSW and Kinesis) for the following metropolitan projects; Alkimos, Jolimont, White Gum Valley and Cockburn Coast with resulting energy, water and transport initiatives identified and implementation strategies in development. Precinx can be used to assist with sustainability performance benchmarking and target setting for key indicators including energy, carbon, With the model developers, Kinesis, LandCorp has also developed an affordable housing model for the Perth metropolitan area to assess market relative affordability (i.e. what is affordable in a local market segment), and how much additional affordable housing will a project deliver in certain circumstances. As an in-house tool scenarios can be developed to help decision-making. LandCorp is also championing for other Western Australia State Government agencies to use the Precinx tool with a future view that across Government the same data will be used and key performance indicators can be developed. This will greatly improve cross- Government reporting. In collaboration with the Department of Housing and the Development Commissions a Housing Online management System is being developed with a view that this will be across Western Australia. This considers housing demand and supply and can help make informed decisions on developments collect the information required for assessment. In addition, LandCorp is an important contributor to the water and transport (vehicle kilometres travelled). and the delivery of housing at a local level. 116 SECTION 8 OUR SUSTAINABILITY PERFORMANCE SECTION 8 OUR SUSTAINABILITY PERFORMANCE 117

60 8.5 OUR BUSINESS Example: EnviroDevelopment for Rockingham Industry Zone LandCorp has committed to progressing the development of the Rockingham Industry Zone (RIZ) as an eco-industrial estate with external certification using the Urban Development Institute of Australia's EnviroDevelopment rating tool aiming to achieve at least four leaves. EnviroDevelopment is an independent industry developed certification program or rating tool for benchmarking the sustainability credentials of development projects. It is a nationally recognised and administered separately within each state by the relevant states based Boards. RIZ is two kilometres northeast of the Rockingham City Centre. The site is approximately 330ha in area and forms part of the Western Trade Coast. LandCorp is the primary landholder and is progressing planning and development to support a variety of industrial uses. Opportunities within the RIZ for best practice sustainable development have already been identified through many studies and reports over the years including a Triple-Bottom-Line assessment and an industrial LandCorp is the primary landholder and is progressing planning and development to support a variety of industrial uses. synergies scoping study for the East Rockingham Waste Water Treatment Plant. The site has a number of unique environmental characteristics, such as State and Federally listed Threatened Ecological Communities (TECs) and Carnaby s Black Cockatoo habitat which have required State and Federal environmental approval on how this environmental value could be included in the development and managed in the long-term. This has resulted in an innovative landscape treatment not typical of industrial developments including a large conservation area, parkland buffers and drainage swales. For the reasons above, the RIZ is considered one of the best existing opportunities for a LandCorp industrial estate to be accredited by the Urban Development Institute of Australia EnviroDevelopment. Currently, an industrial development is yet to be certified under the EnviroDevelopment standard in Western Australia, and there are only two smaller industrial developments certified nationally (both with all six elements). The RIZ project would be Western Australia s first, and Australia s largest, industrial project to be accredited. The Urban Development Institute of Australia launched a new EnviroDevelopment Standard in March 2014 following national consultation. The new standard includes revised and specific criteria for industrial/ commercial development. The project commenced site works in August It is anticipated that RIZ apply for certification in September October Benefits of certification include demonstrating LandCorp s leadership in sustainable industrial development, EnviroDevelopment branding on marketing collateral and additional media exposure to increase awareness of the project. The EnviroDevelopment branding would help identify RIZ as an eco-industrial estate where sustainability principles underpin the planning, design and operation of the estate. Although difficult to quantify, increases in revenue and sales rates are anticipated as a result of this initiative Office Sustainability Commitment We are committed to providing staff with healthy, productive and environmentally friendly workspaces. We have an internal Office SustainAbility Group who volunteer to champion and promote energy efficiency, recycling and sustainable transport behaviours. The group raises staff awareness about the need to switch off equipment and meeting room lighting when not in use to continue to maintain and improve on our 4 Star NABERS rating. We only collect data for our Perth office as it has the most significant impact. Approach We joined the City Switch Green Office program as a signatory in City Switch is a program coordinated by the Capital City Councils that supports office tenants to improve energy efficiency and workplace sustainability broadly. Under the program we commit to achieve and maintain a 4 Star or higher accredited NABERS energy rating nabers.gov.au for our Wesfarmers House tenancy (floors 3, 4, 5, and part of 6). Due to the tenancy refurbishment we undertook a benchmark NABERS rating in 2013 which confirmed our 4 Star NABERS status. We will continue to undertake annual NABERS energy ratings in accordance with our commitments under the City Switch program. Performance Office refurbishment In the middle of 2013 LandCorp finalised our accommodation refurbishment. The new fit out achieved a number of sustainability initiatives which included: improved office layout and access to natural daylight, energy efficient lighting, water efficient taps and fittings, recycling, greenery/plants, and improved end of trip facilities. Our refurbishment project has been awarded a Green Building Council of Australia 4 Star Green Star Office Interiors v1.1 Certified Rating, which represents Best Practice in environmentally sustainable construction. Information from a staff survey conducted at the completion of the refurbishment found that staff satisfaction increased in regards to the new layout as a result of better external views, access to natural daylight, greenery in the office and a better ability to interact with colleagues. Carbon and energy The total energy consumed by LandCorp Head Office tenancy (2,761 sqm) was kwh in We don t yet have this information for the year. This comprised 100% of the electricity used for office lighting and power and does not include building services such as air conditioning and lifts which is provided by the base building. Total emissions from electricity use were 198,416kg CO 2 e p.a. This only includes CO 2 e as we do not collect information for other Green House Gases. For LandCorp s Head Office the building energy intensity is 92.1, and Green House Gas intensity is 77kg CO 2 e/sqm p.a. LandCorp does not capture data for scope 1 (direct) emissions other than through its car fleet management. The total emissions from petrol and diesel fuel use associated with LandCorp s passenger and pool car fleet for the reporting period July 2013 to June 2014 was 117,184 Kgs CO e. LandCorp does not currently capture data for biogenic CO 2 emissions associated with its operations. 118 SECTION 8 OUR SUSTAINABILITY PERFORMANCE SECTION 8 OUR SUSTAINABILITY PERFORMANCE 119

61 OUR BUSINESS LandCorp encourage employees to discuss OHS issues with our OHS coordinator for consideration and remediation if required. Tonnes Waste LandCorp does not currently collect data for waste disposed from its offices. Waste from the building is collected by the City of Perth. We have secure paper collection which is collected monthly; the total was 768kg for July to September Recycling bins are installed for in the staff kitchen/coffee hubs on each of the office floors levels, 3, 4, 5 and 6. Office recycling collected for was 10.9 tonnes included paper/cardboard 7.63t, glass 0.545t, plastics 0.545t, HDPE/ PET 1.09t aluminium 1.09t. This is equivalent to 27.2 cubic metres of landfill saved (Pacific Waste Management). Data for waste disposed to landfill from the LandCorp tenancy is not currently collected. Office Recycling Totals Paper/Cardboard Glass Soft Plastics Aluminium HDPE/PET Paper makes up the majority of the material recycled, with plastic and aluminium other significant contributors. In total, 29.7 cubic metres of land fill have been saved through recycling. Sustainable travel Our Corporate Sustainability group participate in the Travel Smart network events and learning opportunities. With opportunities to consider how we best apply this learning. We have smart rider cards available to encourage staff to use public transport when attending work meetings. We also have a very active LandCorp Cycling Group who aim to foster LandCorp s culture through the promotion of a healthy activity for its employees and encourage staff to undertake a sustainable method of transport. Challenges There are some gaps in our office sustainability data collection. We will look for opportunities to improve data collection, specifically for carbon and energy. We will also improve our communication to staff to try to improve sustainability behaviours at work, including recycling, paper and power use Health and Safety Commitment The health, safety and wellbeing of staff are essential to the success and sustainability of the business. LandCorp takes its safety obligations very seriously and promotes a workplace culture where health and safety are fundamental aspects of its day-to-day business practice. Our commitment is underpinned by safety obligations within the Occupational Safety and Health Act 1984 (WA) (OHS Act). Approach We have a series of Occupational Safety and Health (OHS) related policies including a Safety, Health and Wellbeing, Injury Management, Employee Safety During Cyclones, Driving and Pandemic Management Policy. We also have an incident management system called 'MyOSH which allows us to enter information on Incidents or hazards affecting our employees at Wesfarmers House, our regional offices or while travelling/working away from the office. We undertake regular reporting through monthly management and board reports including lead and lag indicators, quarterly internal audits and inspections, and annual third party OHS audits. Incidents and accidents are reported to management within 24 hours and escalated in accordance with risk categories. Safety reports are reviewed by our executive monthly and weekly by the operational division managers group. Our board receives immediate notification of all category five incidents. LandCorp encourage employees to discuss OHS issues with our OHS coordinator for consideration and remediation if required. We also have a Safety and Health Committee which meets quarterly to discuss health and safety issues. It consists of volunteer representatives from all divisions as well as managers and a general manager. The overall benefit of our Safety and Health Committee is that it provides proactive, systematic ways for dealing with issues, rather than a reactive approach as issues arise. Meeting minutes are displayed on OHS notice boards throughout the business. LandCorp is not required to have a Safety Committee, but choses to do so in order to promote and drive a safety culture throughout the organisation. 8.5% of LandCorp s total workforce is represented in the formal joint management-worker Health and Safety Committee. Members commit to minimum 12 month tenure, before nominating a new member. It is not applicable for LandCorp to operate in verified compliance with an internationally recognized health and safety management system. LandCorp operates within the guidance of OHS Standard AS/NZ 4801:2001 and codes of practice, and holds a Silver Worksafe Accreditation. The Worksafe accreditation is for organisations under the jurisdiction of Western Australian safety and health legislation. LandCorp do not have formal agreements with trade unions, and contractor involvement with trade unions is at their discretion. As such the inclusion of health and safety topics within formal agreements is not applicable. To build on LandCorp s OHS progress, a series of communication, training opportunities, presentations, events and activities will be scheduled in the next financial year to promote national safety month. This will continue to demonstrate our ongoing commitment to the safety, health and wellbeing of staff. Continuous improvement of our OHS systems to achieve a Gold Worksafe Accreditation by 2016, and maintaining a consistent OHS presence aligned with the support and commitment from senior management will ensure our OHS culture continues to remain strong, grow and work in line with any harmonisation changes. 120 SECTION 8 OUR SUSTAINABILITY PERFORMANCE SECTION 8 OUR SUSTAINABILITY PERFORMANCE 121

62 OUR BUSINESS Performance The improvement in our OHS policies and procedures, an increased OHS awareness and the rise of a positive OHS culture, has culminated in LandCorp receiving a highly regarded Silver Worksafe Accreditation. LandCorp is one of only fourteen Government organisations to receive Worksafe Accreditation over the last five years. The improving safety culture can be recognised through the increased usage of our incident management system, MYOSH. Since June 2013, there has been an increase of 113% in the number of incidents reported and a 56% increase in the number of hazards reported compared with the previous year. The compulsory online safety inductions for staff introduced in April 2014, resulted in 100% compliance within five weeks. During the recent assessment, Worksafe s Auditor gave commendation on the comprehensive knowledge of the safety systems by all levels of staff, which is a great improvement on the 18 detailed recommendations from the 2012 internal OHS audit completed by Bureau VERITAS. The improving safety culture can be recognised through the increased usage of our incident management system, MYOSH. All recommendations have now been addressed, the high priority areas were: The implementation of a centralised incident management system and hazard register; New OHS policy endorsed by the board; A comprehensive induction training model for all staff, including 101 workshops; OHS reports are embedded into all senior management meetings; A detailed review of the OHS components in contracts; Development of new tools and procedures to assist in managing small contractors; An increased visual presence of OHS related materials throughout the office; inclusion of spot-project audits; and The introduction of a safety committee including staff from all divisions, general manager and business managers. LandCorp s rates of injury, occupational diseases, absenteeism, and work-related fatalities is as follows. Year Injury rate Absentee rate Occupational disease Fatalities LandCorp Minor first-aid injuries have not been included. Challenges The development of new OHS tools and procedures to assist in managing small contractors remains a challenge. LandCorp s Procurement and OHS team undertook a detailed review of the OHS components in contracts, greatly enhancing the AS2124 Civil works contract and the Type 2 Minor works contract. This has greatly strengthened LandCorp s OHS position with contracts above $50,000. Legal advice is currently being sought to develop a one page short form contract including risk assessment tool, for works below $50,000 being undertaken by higher risk unsophisticated contractors Employee Engagement and Wellbeing Commitment An engaged workforce ensures workplace harmony, productivity and achievement. Employee engagement is critical to our contribution to Government priorities and successful delivery of our corporate strategy and projects. Approach Employee engagement Employee engagement extends through the lifecycle of our Human Resources Management approach. LandCorp undertakes profiling to ensure behavioural fit to corporate values, measures engagement through a formalised performance management process and provides learning and development and promotion opportunities to ensure an engaged and challenged workforce. We also undertake entry and exit interviews to receive employee feedback. Our quarterly staff briefing provde a forum to keep up-to-date with the latest communications. During we conducted specific staff engagement around the topic of diversity to gauge employee feedback (Refer: Diversity, inclusion and equal employment opportunity). LandCorp also provides other forums for consultation and feedback such as the culture group, made up of staff representatives from across the business. The Culture Club acts as a conduit for the whole organisation acting as champions for culture development, values and leadership. We initiated our 'Workplace Giving' program in April Total donations from staff (via automatic payroll deductions) for totalled $3,714. These funds were donated to LandCorp's chosen community project Guide Dogs WA. Wellbeing programs LandCorp also offers all staff a yearly, basic healthy heart assessment, to determine risk of developing any symptoms of cardiovascular or other lifestyle factor related disease. The assessment includes body mass index, waist circumference, percentage body fat, blood pressure, total cholesterol, fasting blood glucose and questionnaires on lifestyle and other factors. To further encourage employee wellbeing we have a fitness subsidy program to encourage involvement in a heathy lifestyle. LandCorp hold a yearly 'RU OK Day' morning tea. By creating the space for staff to take the time to ask each other "are you okay?" and listen, we can help some people who are struggling to feel connected. We also have an Employee Assistance Program (EAP), an external support and counselling service provided on a commercial basis by Optum to assist employees in times of distress, loss or personal problems. LandCorp receives reports on EAP usage from our provider highlighting any patterns emerging that affect employee wellbeing; we then design our wellbeing priorities to respond to this information. Areas of focus for the next 12 months include performance management and review of remuneration and benefits process, structure and approach. Performance LandCorp has a target for a greater the 80% staff retention rate; in our retention rate was 86%. LandCorp Turnover LandCorp turnover by age and gender (including rate) Age Male Female Under Over Total 9 (29%) 22 (71%) LandCorp new employment hires in by age and gender Age Male Female Under Over Total 7 12 Employees may elect to join the Western Australian Land Authority and Community and Public Sector Union Enterprise Agreement 2011, the Union for LandCorp employees. Union membership is optional with 25% of staff (by headcount; 13% by payroll) being covered by the collective bargaining agreement. LandCorp operates in Australia, and as such Australian law defines superannuation contributions from employers. LandCorp adheres to these requirements. Challenges Our primary challenge in employee engagement is to provide skills to technicallyfocussed managers in people and team management skill sets. This is a focus of our employee learning and development program (Refer: Training and Education). 122 SECTION 8 OUR SUSTAINABILITY PERFORMANCE SECTION 8 OUR SUSTAINABILITY PERFORMANCE 123

63 OUR BUSINESS Training and Education Commitment Training and education is integral to good organisational practice with benefits to our workforce as well as to our business. Learning and development enables continual professional growth to meet current and future skills needs which is supported and encouraged at LandCorp Diversity, Inclusion and Equal Employment Opportunity Commitment The promotion of diversity is a key focus for LandCorp. We believe that diversity in terms of skills, experience and knowledge as well as culture and social backgrounds adds value to the workplace. Promoting diversity ensures LandCorp optimises the diverse backgrounds, skills, talents and perspective of its entire workforce. It can contribute positively to employee engagement, organisational effectiveness and customer/stakeholder relationships. Approach We have a Training and Development Policy which outlines our commitment to support training to enable staff to perform their work effectively. This includes orientation of new staff, training for current staff and retraining for staff whose responsibilities or duties change through advancement or restructuring. It also includes the development of staff for future positions. In addition, we support our staff through study assistance to undertake post-secondary units of study that develop their competencies and contribute to LandCorp s effectiveness. We are strengthening our commitment to learning and development by generating a learning framework which brings together all learning activities including external learning and development into a centralised learning management system. This includes rolling-out a catalogue of e-learning courses by Jan 2015, including a Sustainability Awareness module. This will be designed as a corporate offering of compliance, soft skill and professional development learning for access by all employee levels. Our Future Leaders program is currently underway with 16 participants undertaking an accredited Certificate 4 in Frontline Management with the program due for completion in December In addition internal Project Management training is providing a series of identified project management competencies with 12 employees currently undertaking the pilot program. Currently we recruit two to three graduates per year with an internal graduate program in place to support and develop project management skills and experience. Graduates undertake a rotational program through LandCorp operations. LandCorp has a culture of achievement via performance agreements with all staff which clarify roles and responsibilities, goals and targets (aligned to the annual Business Plan), they also provide the opportunity to discuss and record specific learning and development. We facilitate continued employability and help manage career endings through our performance management, grievance resolution and the Employee Assistance Program. Performance Average hours of training Job classification Senior management Middle management Average training hours Professional 18.1 Other 19.1 Total 19.8 During knowledge sharing sessions were held for staff presented by external experts helping staff to keep abreast of topical issues impacting land and property development. In addition a program of 101 sessions was delivered by staff to staff to share knowledge among peers. Challenges Currently we do not profile and collect comprehensive learning activity at LandCorp. With the implementation of the new Learning Management System, we will improve the capture of training activity by type, completion rates and total hours to better inform our ongoing approach. Our values, collaborate, achieve, respect and adapt define the principles that guide our internal conduct as well as our relationships with our partners and customers. Approach LandCorp is an equal opportunity employer and provides a workplace which is free from discrimination and harassment. We ensure the principles and spirit of equal employment opportunity is understood and embraced by creating, promoting and monitoring a vibrant and productive workplace culture that genuinely values diversity at all levels of the organisation. We have an Equal Employment Opportunity Policy which promotes equal opportunity in the workplace and to eliminate discrimination and harassment. Managers in particular are encouraged to value, recognise and support the different contributions employees have to make through flexible work practices. We are committed to the development of a culture that is supportive of employment, equity and diversity principles. Our organisation promotes management policies and practices that reflect and respect the social and cultural diversity contained within LandCorp. Our commitment will be achieved through a workplace culture displaying fair practices and behaviors, improved employment access and participation in EEO training, and cultural awareness training for all staff. LandCorp has built relationships with several diversity focused recruitment and support groups and lists all external vacancies with these groups to actively seek diversity candidates. This also assists us to determine the needs and approach to best support and retain diversity candidates in the workplace. These programs will be maintained and new programs designed to attract diversity candidates through graduate and vacation based programs will be developed for implementation. LandCorp regularly monitors our diversity targets, for those from diverse backgrounds with a particular focus on employment of Indigenous Australians, people with disabilities and females into senior roles. In the last 12 months we also conducted an online survey on gender diversity and findings were communicated to staff. All staff were invited to complete the survey on their feelings and experiences around gender equality at LandCorp. Nearly 70% of staff responded, which was an outstanding participation rate. Overall, LandCorp was viewed positively in terms of gender equality. However, there were some areas identified where perception varied significantly by gender. These differences related to issues concerning: senior management support, recommendation of LandCorp as a workplace, career opportunities, flexible working arrangements and remuneration. Ultimately the results from the survey were utilised by the Human Resources team to feed into and inform LandCorp s overall diversity strategy. 124 SECTION 8 OUR SUSTAINABILITY PERFORMANCE SECTION 8 OUR SUSTAINABILITY PERFORMANCE 125

64 OUR BUSINESS Performance Total workforce by employment type, employment contract, and region. Employees by contract and gender (as of 30 June 2014) Contract type Total number of employees Female Male Total Full-time (permanent term) Part-time (permanent term) Full-time (limited term) Part-time (limited term) Total LandCorp Target % LandCorp Actual at % Women in management* (%) Aboriginal Australians People with disabilities (%) *Women in management is the percentage of females in the senior leadership group Female salaries as a percentage of male salaries by job classification (as of 30 June 2014) 87% Workforce by job classification and gender SENIOR MANAGEMENT Job classification Total number of employees Female Male Total Board Workforce by job classification and age group Job classification Total < >50 Board Workforce by job classification and age group Job classification Total < >50 Senior management Middle management Professional Other Total Workforce by job classification and gender 8 26 Senior management Total 34 Female Male Challenges Successfully managing equity and diversity is a challenge that will result in a harmonious workplace with increased adaptability where LandCorp will be more innovative, productive and competitive within the property industry. LandCorp has been particularly challenged in the area of Aboriginal and Torres Strait Islander recruitment and retention. Our internal employment target has marginally improved over recent years to 1.8% however continues to remain below our target of 3%. This was also impacted by low staff turnover and containment on staff growth in response to external market conditions during A review of our Aboriginal and Torres Strait Islander Employment and Retention Strategy (as part of LandCorp s overall Diversity Strategy) will be undertaken with the view of identifying opportunities for improvements. LandCorp will also be exploring how it can expand its pathways to employment through vehicles such as a traineeship, cadetship and graduate program. This is also being addressed through a broader network of relationships with diversity providers and alternate programs to building these skills including a diversity focus in graduate recruitment and increased graduate intake numbers compared to previous years. 94% MIDDLE MANAGEMENT 97% PROFESSIONAL Middle management Total 58 Professional Other Total 57 Total 75 LandCorp will also be exploring how it can expand its pathways to employment through vehicles such as a traineeship, cadetship and graduate program. 104% Total Total 224 OTHER (as of 30 June 2014) Note: Using FTE salary 126 SECTION 8 OUR SUSTAINABILITY PERFORMANCE SECTION 8 OUR SUSTAINABILITY PERFORMANCE 127

65 OUR BUSINESS Governance Commitment We aspire to be recognised as an organisation which achieves its goals using an adaptive, collaborative, respectful and ethical approach. We seek to uphold the highest standards in our relationships with each other and the outside world. By doing this, we will not only meet our business objectives, but also earn the trust and respect of stakeholders and maintain a reputation as a good corporate citizen. Approach LandCorp s Code of Conduct is designed to guide the kind of conduct expected from anyone working for or on behalf of LandCorp, including the board, executive, staff and internal contractors and internal consultants. The board and executive support the Code of Conduct which provides guidance on a practical set of principles that reflects our approach to business conduct. Specifically our Code of Conduct requires LandCorp board, executive, staff and contractors agree to: Comply with all relevant acts of Parliament including LandCorp s enabling legislation the Western Australian Land Authority Act 1992 and its amendments; Comply with LandCorp policy and Government policy; Honestly, fairly and impartially exercise skill, care and diligence in performing their duties; Respect the confidential nature of information that is the property of LandCorp and the Government; Maintain the integrity of LandCorp s decision making processes by disclosing material conflicts of interest that could be perceived to influence decisions or affect judgement; Reject discrimination, harassment and bullying on the basis of age, race, gender, family status, sexuality, religion, impairment and political belief; Engage in conduct that brings credit to LandCorp, for example, by taking responsibility for actions and being accountable for their consequences and not placing themselves in situations which result in divided loyalties; Use assets responsibly, efficiently and in the best interest of LandCorp and the community of Western Australia; Respect the rights of individuals and treat all people courteously; and Comply with the spirit of this Code and with LandCorp s values. The replacement of our custombuilt project management application with Clarity, an off-the-shelf portfolio project management application, moved into a staged implementation phase during the second half of Clarity has assisted with the improved management of our operational projects, and improved visibility and reporting functions. We are also updating our LandCorp Procedures Manual which includes procedures, guidance materials, templates and videos for the consistent management and governance of our operational and corporate projects. LandCorp adopts a risk-based, precautionary and proactive approach to our operations. We have a Risk Management Framework which provides the organisational arrangements for designing, implementing, monitoring, reviewing and continually improving our risk management practices. Riskmanagement is an ongoing practice for both our corporate and operational projects. Risks are identified at the beginning of projects and then ongoing throughout the duration of the project to ensure all significant project risks are identified, quantified, and recorded (in Project Clarity) with appropriate risk mitigation or treatment strategies put in place. Project Clarity allows project risks to be escalated to the corporate risk register where necessary, to bring them to the attention of the executive and board. The risk management framework is reviewed twice a year, to coincide with strategic risk assessments performed by the Audit and Risk Management Committee and the board. LandCorp s Annual Report, Corporate Governance Report provides comprehensive information on our governance structure, committees, ethical standards, audit and risk management. LandCorp proactively manage risks related to corruption across all operations at a corporate level. This involves a system of procedures that include: Code of Ethics and Code of Conduct; fraud audits and training; accountable and ethical decision making training; directors and officers liability insurance risk assessments, corporate risk register, and a series of policies. Policies to mitigate risk include: public interest disclosure; complaint handling; accepting gifts and entertainment; elimination of harassment in the workplace; equal employment opportunity; confidentiality; leave management; purchase of land by staff and consultants; communicating with Minister, Board and Media; remote access to IT systems and phone usage; contact with Lobbyists; office security; travel policy; purchasing; human resources management standards; records management; information systems usage; corporate vehicles; and conflict of interest policy and procedures. Performance Accountable and ethical decision making is provided as externally delivered training with 95% of employees considered trained in the financial year. Staff are also provided access to the Public Sector Commission Participants Handbook A Guide to Accountable and Ethical Decision Making in the Western Australian Public Sector. Challenges We have not yet reached maturity in our use of the new portfolio project management system, our challenge and opportunity is to consistently use this tool to optimise its potential to improve visibility and reporting across the business. Clarity has assisted with the improved management of our operational projects, and improved visibility and reporting functions. 128 SECTION 8 OUR SUSTAINABILITY PERFORMANCE SECTION 8 OUR SUSTAINABILITY PERFORMANCE 129