CREATING A SUSTAINABLE FUTURE FOR WA

Transcription

1 CREATING A SUSTAINABLE FUTURE FOR WA

2 Alkimos Beach Artist impression for illustrative purposes only.

3 CONTENTS CONTENTS 3 LEADERSHIP MESSAGE 4 INTRODUCTION 9 About this report 9 About LandCorp 10 CREATING VALUE FROM CHALLENGES AND OPPORTUNITIES 11 MATERIALITY 17 OUR SUSTAINABILITY PERFORMANCE 24 Integrated project delivery 25 Partnerships, relationships and customers 31 Design excellence 44 Environmental responsibility 48 Community wellbeing 53 Economic health 63 Market leadership and innovation 64 Internal business practices 72 CONTENT INDEX 80

4 LEADERSHIP MESSAGE LEADERSHIP MESSAGE Shoreline Artist impression for illustrative purposes only.

5 LEADERSHIP MESSAGE 5 A conversation with CEO, Frank Marra HOW WOULD YOU CHARACTERISE LANDCORP S PERFORMANCE OVER THE PAST FINANCIAL YEAR? Important milestones define our past 12 months. Cabinet approved the Regional Centres Development Plan and gave conditional approval to the Mangles Bay Marina, a $250 million transformational project for Rockingham. We sold our final lots in Enterprise Park, a 26 year investment that is now home to 250 businesses generating more than 10,000 jobs. According to Curtin University economic research, our $213 million infrastructure investment will continue to have a direct and indirect impact of more than $37 billion over a 40 year period. The estate has supported strong population growth, businesses and employment in the Perth s northern suburbs, demonstrating the value we deliver through Government property assets. As Enterprise Park came to a close, two new major industrial projects were launched. Broome Road Industrial Park represents an investment of more than $50 million into the Broome economy, and at Forrestdale Business Park, 27 hectares is estimated to support 300 businesses over the next 10 years providing up to $4 billion in annual economic output and employment for more than 4,000 people. In the Perth metropolitan area several projects made significant progress. We launched Shoreline, the first stage of Cockburn Coast Redevelopment Area, a $4.9 billion project that will ultimately become home to more than 12,000 people and create opportunities for 3,000 long-term local jobs. Our latest partnering project, Allara at Eglinton, was launched in partnership with Satterley Property Group with the potential to deliver 3,400 new homes for a future population of up to 7,500 people. Karratha Town Centre infrastructure upgrade is transforming the functionality of the centre with the public-square and the decked car park complete and the near completion of earthworks for the future Karratha Health Campus, and with construction on the Karratha Quarter more than 50 per cent complete. In Albany, planning is well underway on the redevelopment of the former Esplanade Hotel site, while in Kununurra the Ord Expansion project has reached completion bringing an important State project to a close which will maximise the full potential of available land and water resources in the East Kimberley. 12,000 SHORELINE FUTURE POPULATION

6 LEADERSHIP MESSAGE Alkimos Beach, in partnership with Lend Lease was announced as the Green Building Council of Australia s first 6 Star Green Star Communities Pilot Certified Rating, which represents World Leadership in environmentally sustainable planning, design and construction at a precinct scale. We continue to push the market leadership agenda, evidenced by our launch of WGV at White Gum Valley which is LandCorp s precinct scale Innovation through Demonstration project. The launch included the public announcement of the WGV s recognition as National best practice using the One Planet Living International sustainability framework. We are continuing to complement our face-to-face stakeholder and community engagement practices with online engagement which has significantly broadened our communication and engagement reach. Our most recent Reconciliation Action Plan ( ) was formally endorsed by Reconciliation Australia as we continue our focus on building improved relationships, recognising and promoting Aboriginal culture and heritage, while also creating and encouraging opportunities in partnership with the community. We recently achieved Worksafe s Gold Accreditation for our Occupational Safety and Health practices - making us one of only seven Government organisations to do so over the past five years. Our financial year s performance resulted in sales of over $340 million being achieved, and total revenue was just under $500 million demonstrating the scale of our impact. While sales did suffer in the challenging regional and industrial markets and tapering metropolitan market, these are significant achievements representing our fourth highest figure on record. Alkimos Beach Artist impression for illustrative purposes only. HOW DOES LANDCORP DEFINE SUSTAINABILITY? AND WHAT DOES SUSTAINABILITY MEAN TO LANDCORP? Sustainable development is defined through our four Sustainability Elements: Environmental Responsibility, Community Wellbeing, Design Excellence, and Economic Health. These elements provide a framework for thinking, planning and designing to manage the impacts of land and infrastructure development and make the most of the opportunities. By thinking about sustainability through the lens of each of these elements we improve our ability to respond to and address them in a positive way. There is a risk in having too narrow a definition of sustainability or where only one element is a focus without consideration of the other elements. However, some elements are likely to have a greater focus in some projects compared to others and this is largely based on the challenges and opportunities that are present in a particular place that requires greater attention. Implementing sustainable development is more than our license to operate, we are involved in creating places for current and future generations and we acknowledge our responsibility to create long-term value by delivering positive environmental, social, economic, and design outcomes for the people of Western Australia.

7 LEADERSHIP MESSAGE 7 The Quarter, Karratha Artist impression for illustrative purposes only. WHAT ARE YOU HEARING FROM STAKEHOLDERS ABOUT SUSTAINABILITY? Stakeholders and staff expect us to be a leader in sustainable development and innovation in land and infrastructure development. In research we conducted this year, nine in 10 stakeholders and staff believed it was important that LandCorp implemented sustainable development approaches and practices. As part of our sustainability reporting practice we have undertaken yearly research to find out what our stakeholders and staff think is most important for us to develop strategies for, work towards, and report on. This is guiding our focus for improvement as well as the performance reporting in our Sustainability Report. HOW DOES SUSTAINABILITY FIT WITH LANDCORP S STRATEGIC VISION? Sustainable development is a critical part of LandCorp s corporate ethos. Our Act underpins this commitment requiring us to take account of and balance social, economic and environmental outcomes. Starting sustainability reporting through the Global Reporting Initiative (GRI) Guidelines last year was a conscious step to further our commitment to take account of our sustainability performance and demonstrate improvement over time. Our four strategic focus areas for the next 12 months are: integrated project outcomes; maintaining strong relationships and partnerships; ensuring corporate and commercial sustainability; and demonstrating market leadership and innovation. Innovation through Demonstration and addressing specific sustainability challenges such as affordability and resource efficiency are particular areas of focus within our strategic plan. WHAT DO YOU THINK ARE THE KEY DRIVERS FOR SUSTAINABLE DEVELOPMENT? The land development industry as a whole faces increasing challenges that will need to drive change, for example, land and infrastructure constraints, population growth, increasing pressure on natural systems and resources, changing demographics, increasing quality of life expectations and the need for affordable housing and living. Each of these challenges also present opportunities to try new approaches and drive positive change. In the face of these challenges and opportunities, sustainable development is a compelling vision for LandCorp, as well as the broader land and property development industry.

8 LEADERSHIP MESSAGE WHAT ROLE, IF ANY, DO YOU THINK LANDCORP SHOULD TAKE IN LEADING TRANSFORMATIONAL CHANGE? Business and Government are at their best when they identify opportunities, innovate and create improved solutions for social, economic and environmental challenges. LandCorp is well-placed to facilitate positive change as we can demonstrate innovation and deliver outcomes on the ground in new ways to achieve Government policy objectives. We acknowledge the importance of focused innovation in order to respond to new policy directions and we endeavor to overcome industry-wide implementation challenges. We believe that by working with Government, industry, research bodies and the community we can take a leadership role in projects like WGV at White Gum Valley where we can collectively push the boundaries, address barriers, accelerate positive change and demonstrate the improvements that can be achieved through collaboration. WHAT DOES LANDCORP EXPECT TO ACHIEVE FROM ITS SUSTAINABILITY REPORTING PRACTICE? We started our sustainability reporting journey with a focus on enhanced accountability, transparency and continuous improvement. We wanted to enhance our focus and accountability in relation to our non-financial impacts and performance. It was also an opportunity to increase our communication and transparency around our sustainability performance for our stakeholders and staff through our commitment to report annually. Importantly, it will be our mechanism to ensure continuous improvement. Through monitoring, measurement and reporting we will better understand our performance and our ability to manage, to change and to improve. WHERE IS LANDCORP ON ITS SUSTAINABILITY JOURNEY? Aspects of sustainability have always been a part of the language and practice of LandCorp s business. In the last eight years through growing our team of sustainability professionals we have become more sophisticated in our approach. Sustainability considerations now permeate a lot of the decisions we make, but we can always do better. This is our second Sustainability Report in accordance with the Global Reporting Initiative (GRI) Guidelines, and as an early adopter of sustainability reporting, we still have work to do to improve our data collection of non-financial information. We expect our sustainability journey to progress over time, becoming increasingly embedded into our processes, practices and culture. Cockburn Central Town Centre

9 INTRODUCTION 9 INTRODUCTION ABOUT THIS REPORT This Sustainability Report presents LandCorp s performance for the financial year and is a complementary document to our LandCorp Annual Report which discloses our key project achievements, financial performance and corporate governance structure. This is our second Sustainability Report in accordance with the Global Reporting Initiative (GRI) Sustainability Reporting Guidelines. Using the GRI framework ensures that we are assessing our performance annually against widely accepted sustainability measures. The content of this report is directed by a detailed materiality process that identified the most significant and important issues and topics in the eyes of our stakeholders and staff. Our sustainability reporting continues to focus on improving our collection of non-financial information, in particular the collection of information from our diverse portfolio of land and property development projects. Once we have a process and system in place for better capturing information we will seek external assurance.

10 INTRODUCTION ABOUT LANDCORP The Western Australian Land Authority, trading as LandCorp, is a Government trading enterprise established under the Western Australian Land Authority Act Our purpose is to realise the potential of land and property across Western Australia by delivering excellence in new and revitalised residential and economic centres. Our values, collaborate, achieve, respect and adapt define the principles that guide our relationships with each other as well as with our partners, stakeholders and customers. 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 commercial land across WA. Our commercial and industrial estates help build more permanent populations, provide growth and employment opportunities, as well as providing improved infrastructure amenities and services. METROPOLITAN Our work in and around centres of activity, urban infill and regeneration, and masterplanned estates 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 commercial 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 also include the remediation of contaminated sites and property and project management. Enterprise Park

11 CREATING VALUE FROM CHALLENGES AND OPPORTUNITIES 11 CREATING VALUE FROM CHALLENGES AND OPPORTUNITIES Mandurah Junction Artist impression for illustrative purposes only.

12 CREATING VALUE FROM CHALLENGES AND OPPORTUNITIES CHALLENGES AND OPPORTUNITIES The table below outlines the wide range of social, economic and environmental trends, challenges and opportunities that provide the context within which LandCorp works to deliver land and infrastructure and create places for people to live and work. Accommodation of significant population growth - According to current projections an additional 1.5 million people will live in Perth and Peel by Perth and Peel s anticipated 2050 population of 3.5 million people will make up more than 75 per cent of Western Australia s total population; our regional areas will need to accommodate the balance. The Pilbara Cities long-term vision is to build the population of Karratha and Port Hedland into major cities of 50,000 people and Newman to 15,000 people by The policy direction and planning underpinning the Regional Centres Development Plan, SuperTowns, Regional Cities, and Regional Investment Blueprints aims to prepare regional WA for population growth and aims to elevate growth trajectories above historic levels. With population growth, so do requirements for finite natural resources (i.e. energy, water, land). In Perth the urban fringe accounts for almost three quarters of all new development while 64 per cent of all jobs are in the central sub-region. The challenge will be to ensure homes and jobs are located within activity centres, and regional centres of activity. This potentially creates the opportunity for reduced private car travel in metropolitan areas, and the provision of residential, industrial and commercial land that creates new lifestyle opportunities and attracts new residents in regional areas. Resource efficiency Doing more with less is an important 21st century challenge with increasing demand and pressure on natural systems and finite resources. This requires efficient use of water in a drying climate, as well as efficient use of energy and material resources. Increase infill development - The Western Australian Planning Commission s Perth and Peel at 3.5 million seeks to increase the rate of infill development to 47 per cent by 2050; in 2014 it was 28 per cent. This will mean developing more constrained brownfield locations and different approaches will be required to address these constraints and deliver this target. Through infill and activity centre development and increasing density along activity corridors there is an opportunity to optimise existing infrastructure and transport. Closing the gap Significant gaps exist between Aboriginal and Torres Strait Islander peoples and other Western Australians, including gaps in health, education and employment outcomes. Closing the gap is a longterm effort to improve opportunities and outcomes for Indigenous Australians. Protecting biodiversity - Safeguarding environmental assets and protecting biodiversity is a significant challenge with eight of Australia s national biodiversity hotspots located in Western Australia. There is significant opportunity for improved waste management. The Western Australian State Waste Strategy sets a target for construction and demolition waste recycling of 65 per cent by At present, Western Australia has some of the highest disposal rates for construction and demolition waste, and the lowest recycling rates in Australia. To close the loop the challenge will be to avoid, reduce, and recycle before disposal as a last resort. Technology and innovation - Digital technology transformation is reshaping retail and office precincts, value chains, logistics, and labour markets that will influence the design and function of urban environments. In addition, future challenges will require research and innovation to find sustainable social, environmental and economic solutions. Affordable living Land, housing and living cost increases have made access to the housing market increasingly difficult, particularly for those people on low to moderate incomes. Providing access to affordable land and housing is an ongoing challenge and requires action across the entire housing continuum. In addition, access to affordable living which considers ongoing costs including energy, water and travel. Housing diversity Changing demographics, including an increasing aging population, require an increase in the diversity housing to meet different needs. Currently 78 per cent of the housing supply is detached houses (Perth and Peel at $3.5 million). Community expectations Community expectations, product development and service delivery are changing with an increasing focus on public participation models that move away from simply informing and consulting to models that involve, collaborate with and empower communities to improve outcomes.

13 CREATING VALUE FROM CHALLENGES AND OPPORTUNITIES 13 CREATING SOCIAL, ECONOMIC AND ENVIRONMENTAL VALUE LandCorp has an important role in addressing social, environmental and economic challenges, trends and opportunities. We understand that addressing new challenges and opportunities and responding to new policy directions is an essential requirement for sustainable development. Within Government, we have a unique business model and role which ensures we continue to add value to Government and the Western Australian community. We operate State-wide, create large and small developments, provide a place based response for the delivery of land, and act commercially providing a return to Government for reinvestment. We also have a role in providing industry leadership and innovation to help overcome industry wide challenges. An essential ingredient in the value that we can bring to land and infrastructure development is our multi-disciplinary team of staff who bring a complementary range of skills to our corporate and operational projects. Our commitment to sustainable development is underpinned by the Western Australian Land Authority Act (1992) (Section 3A and 16B), which requires us to balance and take account of social, economic and environmental outcomes. Ensuring the community s economic, social and environmental needs are met Leading the demonstration of innovation in land development Balancing social, economic and environmental outcomes Addressing market failure CREATING SOCIAL, ECONOMIC AND ENVIRONMENTAL VALUE Ensuring optimal outcomes and returns are achieved from government land holdings Ensuring adequate land supply Facilitating private sector investment in the State

14 CREATING VALUE FROM CHALLENGES AND OPPORTUNITIES VALUE CREATION ALONG OUR PROJECT LIFECYCLE We are involved in each stage of a land and infrastructure project s lifecycle from initial identification of land needs, through to detailed planning, construction and sales. Depending on the lifecycle stage and needs of a particular project we are able to tailor our approach and apply our diverse skills to a wide-range of projects. With our integrated sustainable development approach we optimise the creation of social, economic and environmental value across the project lifecycle. PROJECT START-UP (idea and opportunity) We consider opportunities for strategic land supply and delivery in consultation with wider Government stakeholders, and in line with Government policy. This stage has far reaching impacts as it is where we prioritise and decide which projects to undertake. INITIATION (high level business case) Through our feasibility analysis, due diligence, site and context analysis, and stakeholder engagement we are able to identify the high level aspiration, objectives and approach spanning social, environmental, design and economic considerations. We have a place based approach that draws on the existing natural resources, intrinsic site qualities, and local knowledge to optimise the unique opportunities appropriate for each project. DEFINITION (detailed level business case) During this stage we build upon the place based aspirations and objectives of the project and test options, review concepts, and implement design improvements. This helps us to define the detailed scope of our projects and the degree to which projects have the opportunity to influence our material issues. These are the significant and important environmental, social and economic issues that we influence and impact through our development activities. As such this is the stage where we create the most direct value through the creation of detailed planning in collaboration with the local community and stakeholders for planning approval. [G4-20, G4-21]

15 CREATING VALUE FROM CHALLENGES AND OPPORTUNITIES 15 We define sustainable development through the integration of our four sustainability elements: environmental responsibility, community wellbeing, design excellence and economic health. The elements form our framework to achieve positive outcomes, across a diverse portfolio of projects. We recognise that by considering these elements across the lifecycle of our projects, we improve our ability to create long term value by delivering more sustainable outcomes. EXECUTION (civil works/construction, sales) Value is created at this stage through contractor and construction jobs and the physical establishment of social and economic infrastructure to support land delivery. We influence the social and environmental performance of our supply chain through the procurement process. BUILT FORM (built form construction, and sales) Our primary role is in land development, as such we are not always involved in built form. However we add value to and influence the performance of the built environment through our procurement practices, design review process and design guidelines. In some instances we extend our control and value contribution in this area by undertaking innovation through demonstration built form projects. END-USE (customer behaviour and satisfaction, and continuous improvement) It is at this stage that our customers can live, work and spend time in the places that have been created. The behaviour of our customers determines the household or business usage/reduction of water, energy and waste, and local employment selfcontainment and social cohesion. We only have indirect control over this stage (i.e. facilitating community development events/ activities/education). We seek to understand customer satisfaction so that we can incorporate opportunities for improvement into our standard practice. [G4-20, G4-21]

16 CREATING VALUE FROM CHALLENGES AND OPPORTUNITIES SUSTAINABLE DEVELOPMENT AND INNOVATION FOCUS AREAS To continue to provide social, economic and environmental value in the next 12 months, we will focus on embedding sustainability practices into the business, and delivering sustainability Innovation through Demonstration. Embedding sustainability into the business will involve: Improving the uptake and implementation of internal sustainability policies, guides and processes; identifying and pursuing sustainability and innovation challenges and opportunities to improve project outcomes; increasing the adoption of independently accredited assessment tools in projects; and continuing our sustainability reporting through the Global Reporting Initiative (GRI) guidelines, focusing on data collection and performance improvement across our most significant material issues. As part of this we will continue to collate and evaluate the sustainability performance of our development projects and make this information available to stakeholders on our website. Innovation through Demonstration will involve: Establishing a streamlined process to facilitate the selection and implementation of Innovation through Demonstration projects focused on industry challenges and opportunities; and use our integrated sustainability approach and applied research to address challenges and opportunities in community, economic, design and the environment to improve development outcomes. COMMUNITY WELLBEING Creating communities that are safe, healthy and enjoyable places to live and work, with access to appropriate and affordable housing and creating opportunities to foster active local communities. DESIGN EXCELLENCE A built environment that ensures attractive, accessible and adaptable places that contribute to a distinctive identity and sense of place. INTEGRATED SUSTAINABLE DEVELOPMENT 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.

17 MATERIALITY 17 MATERIALITY Our significant and important social, environmental and economic issues.

18 MATERIALITY DEFINING THE CONTENT OF OUR REPORT We are in our second year of using the Global Reporting Initiative (GRI) framework and materiality analysis. As such, our work this year built upon the existing materiality analysis that informed our first report. This involved analysis of our strategy and policy commitments, risks and regulation requirements, issues in the media, and the identification of industry wide issues. As well as engagement with a small group of stakeholders and staff. To inform our Sustainability Report, we broadened our materiality analysis by undertaking greater stakeholder and staff research to capture their perspectives on a range of sustainability issues. This research validated our list of Material Aspects the important and significant sustainability issues and topics. These issues and topics have directed the content of this Sustainability Report and will also direct our focus for the 12 months ahead. [G4-18]

19 MATERIALITY 19 STAKEHOLDER AND STAFF RATINGS OF SUSTAINABILITY TOPICS To understand stakeholder and staff perspectives on sustainability topics and issues, an invitation to take part in an online survey was ed to 956 external stakeholders, and 18 per cent (176 stakeholders) completed it. All LandCorp staff were also ed an online survey, and a total of 34 per cent (75 staff) completed the survey. Almost all staff (88 per cent) and stakeholders (93 per cent) believed it was important that LandCorp implement sustainable development approaches and practices. Most staff (70 per cent) and stakeholders (71 per cent) rated LandCorp well on being a leader and innovator in fostering and delivering sustainable development. However, stakeholders were more likely to say they didn t know how to rate LandCorp s performance (17 per cent) compared to staff (9 per cent). Three quarters (75 per cent) of both staff and stakeholders said it was important to them to understand and have access to information on LandCorp s sustainability performance. Stakeholders and Staff were asked to rate 35 sustainability topics and issues on how important they believed each was for LandCorp to develop strategies for, work towards, and report its performance on. The top five topics/issues to which both staff and stakeholders gave a rating of at least 8.3 out of 10 were: Delivery of land for residential and industrial use; water use; customer satisfaction; liveability; and providing land where local employment and business opportunities can occur. Staff placed greater importance around internal business practices and integrated project delivery, whilst stakeholders placed greater importance on partnerships with the private sector. The materiality matrix overleaf illustrates the results of both the stakeholder and staff rankings. It is clear that all of the sustainability topics/issues are seen as important for LandCorp, for example the lowest rated issue was creating jobs through supply chain which received a 6.9/10 from stakeholders and staff. However the matrix helps us to better understand the relative importance of different topics and issues in the eyes of our stakeholders and staff. This matrix will be a useful internal tool to help drive focus in the business. [G4-18, G4-26]

20 MATERIALITY MATERIALITY MATRIX STAKEHOLDER AND STAFF RATINGS OF SUSTAINABILITY TOPICS HIGH Local employment and business opportunities Affordability Water use and management STAKEHOLDER RATINGS OF IMPORTANCE Private sector partnerships Climate change Creating jobs through supply chain Built form quality Liveability Delivering land for residental and industrial Infrastructure investments Customer satisfaction Diversity of housing Governance Biodiversity Waste Economic performance Energy and carbon Cultural heritage and identity Research Materials Community development Use of industry assessment tools Community engagement Supply chain sustainability Government partnerships Indigenous opportunities and relationships Demonstration and innovation Risk management Health, safety and wellbeing Delivering Government Policy Advisory services to Government Employee engagement and satisfaction Staff training and education Diversity inclusion and equal employment opportunity Office sustainability LOW STAFF RATINGS OF IMPORTANCE HIGH KEY: Integrated project delivery Partnerships, relationships and customers Sustainable design Environmental responsibility Economic health Community wellbeing Market leadership and innovation Internal business practices Perry Lakes [G4-18, G4-19, G4-26, G4-27]

21 MATERIALITY 21 STAKEHOLDER AND STAFF TOP THREE SUSTAINABILITY TOPICS/ISSUES Stakeholders and staff were also required to select the top three sustainability topics/issues that they considered the most important for LandCorp to develop strategies for, work towards and report on. The results highlight some areas of overlap with delivering land, affordability and diversity of housing featuring in both stakeholders and staff responses. Highest priority sustainability issues (staff vs stakeholders) Staff Stakeholders Delivering land for residential and industrial uses throughout WA 37% Providing land where local employment and business opportunities can occur 30% Leadership demonstration and innovation projects 32% Affordability (land and housing) 28% Affordability (land and housing) 32% Delivering land for residential and industrial uses throughout WA 26% Liveability 19% Diversity of housing 26% Diversity of housing 14% Energy use and carbon emissions 22% 0% 10% 20% 30% 40% 50% 0% 10% 20% 30% 40% 50% [G4-18, G4-19, G4-26, G4-27]

22 MATERIALITY SNAPSHOT OF OUR MATERIAL ASPECTS The 35 sustainability topics and issues validated through our stakeholder and staff research are grouped into eight material aspect categories. These topics and issues have impacts and associated management approaches throughout the project lifecycle. INTEGRATED PROJECT DELIVERY Commitment: To realise the potential of land and property we take a long-term view of State-wide needs and Government policy directions. Our developments provide residential land in centres of activity, that are well located and connected to industrial and commercial land throughout metropolitan and regional Western Australia. Issues and topics this includes: Delivering land for residential and industrial uses Economic performance Delivering Government policy Advisory services to Government Key performance measures: Strategic alignment with Government Policy Economic value generated Dwelling unit equivalents/lots released Advisory service activities SUSTAINABLE DESIGN Commitment: We seek to contribute to a built environment that ensures attractive, accessible, adaptable places that support a distinctive identity and sense of place. Issues and topics this includes: Diversity of housing Liveability Cultural heritage and identity Built form quality Key performance measures: Number of design reviews conducted Number of projects using design guidelines PARTNERSHIPS, RELATIONSHIPS AND CUSTOMERS Commitment: We collaborate, partner and work with all levels of Government, industry, private sector, communities and customers as we seek to better understand and respond to our stakeholder s needs and expectations. Issues and topics this includes: Customer satisfaction Government partnerships Private sector partnerships Supply chain sustainability Key performance measures: Customer satisfaction research Active partnerships with Government and private sector Engagement of Aboriginal enterprises Pre-qualification of suppliers on sustainability criteria Buy local per cent, percentage of local procurement Stakeholder research (net promoter scores, and qualitative information regarding strength of relationships) ENVIRONMENTAL RESPONSIBILITY Commitment: We aspire to protect and manage natural systems, habitat and biodiversity, and also efficiently and innovatively manage energy, water and waste resources. Issues and topics this includes: Biodiversity Energy use and carbon Water use and management Waste Climate change Materials Key performance measures: Hectares of land remediated Water Sensitive Urban Design Management Plans Waste Management Plans and per cent diverted from landfill Climate responsive design of subdivisions and lots Inclusion of environmental aspects (water and energy) into design guidelines Management of biodiversity impacts (hectares of habitat protected, restored, cleared, management of IUCN Red List species, environmental offsets) [G4-19, G4-20, G4-21]

23 MATERIALITY 23 COMMUNITY WELLBEING Commitment: We seek to understand community needs and aspirations through our community engagement to determine the appropriate community development partnerships and strategies. Our place based approach guides our implementation of affordability and indigenous opportunities and relationships. Issues and topics this includes: Community engagement Community development Affordability Indigenous opportunities and relationships Key performance measures: Stakeholder and community engagement plans Community development plans Number of stakeholders engaged in our online and face-to-face engagement Community sponsorship 15 per cent Affordability target and Affordability strategies Reconciliation Action Plan targets and achievements Native title payments ($) ECONOMIC HEALTH Commitment: We invest in land and infrastructure to support the economic development of metropolitan and regional communities. Development of industrial and commercial land and infrastructure maintains and grows industry, business and employment, while our development of activity centres and residential land creates communities close to employment centres and transport hubs. Issues and topics this includes: Local employment and business opportunities Infrastructure investments Creating jobs through supply chain Key performance measures: Number of local jobs supported Number of businesses supported Residential population supported Lots and dwelling unit equivalents created MARKET LEADERSHIP AND INNOVATION Commitment: We endeavour to demonstrate innovation in the land development industry, providing leadership in overcoming common challenges, introducing efficiencies and achieving development and policy goals in new ways. Issues and topics this includes: Research Demonstration and innovation Use of industry assessment tools Key performance measures: Number of innovation projects Use of industry accreditation and assessment tools Research activity External recognition/awards INTERNAL BUSINESS PRACTICES 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 our external stakeholders. Issues and topics this includes: Governance Risk management Health, safety and wellbeing Diversity, inclusion and equal employment opportunity Staff training and education Employee engagement and satisfaction Office sustainability Key performance measures: Rate of employee turnover by age and gender New employees hired by age and gender Female salaries as a percentage of male salaries Performance against following targets: 32.5 per cent Woman in management; 3 per cent employment of Aboriginal Australians; 3 per cent employment of people with disabilities Average hours of training per year per employee Per cent of staff trained in ethical decision making, and cultural awareness training OSH rates Office energy consumption, car fleet emissions, and office recycling [G4-19, G4-20, G4-21]

24 OUR SUSTAINABILITY PERFORMANCE OUR SUSTAINABILITY PERFORMANCE WGV Gen Y Demonstration Housing Project Artist impression for illustrative purposes only.

25 INTEGRATED PROJECT DELIVERY 25 INTEGRATED PROJECT DELIVERY DELIVERING LAND FOR RESIDENTIAL AND INDUSTRIAL USES Commitment LandCorp takes a long-term view of State-wide needs, and acquires and develops land to provide residential, commercial, retail and industrial land and infrastructure. Our work in regional Western Australia supports the delivery of land and infrastructure to maximise economic development and the potential to create permanent, sustainable and intergenerational communities. Our role in the metropolitan area is to undertake or facilitate the development of Government prioritised urban projects in activity centres, coridors and urban infill areas. Approach and Performance The table below outlines LandCorp s delivery approach and performance in relation to residential and economic and employment land. METROPOLITAN RESIDENTIAL REGIONAL RESIDENTIAL ECONOMIC AND EMPLOYMENT LAND 1480 dwelling unit equivalents created based on land released, surpassing Strategic Development Plan targets. Key releases: Alkimos Beach, Allara, The Vive, Shoreline, Seabreeze Waikiki, Buckland Hill, Clarkson Ocean Keys, Claremont on the Park, Harvest Lakes, Rockingham Central Town Centre and Rockingham Waterfront Village. 397 dwelling unit equivalents created based on land released, falling short of Strategic Development Plan targets due to slow market conditions. 174 were Regional Development Assistance Program dwelling unit equivalents, while 29 were Local Regional Development Assistance Program (RDAP) dwelling unit equivalents. Key releases: Waranyjarri Estate Broome North, Mandurah Junction and Barrarda Estate. 58 industrial lots released, surpassing Strategic Development Plan targets. Key releases: Meridian Park, Cockburn Commercial Park, Flinders Precinct, Broome Road Industrial Park, Forrestdale Business Park West and Port Hedland Wedgefield. LandCorp provided approximately 3.9 per cent of the metropolitan residential land market. LandCorp provided approximately 3.5 per cent of the regional residential land market. LandCorp provided approximately 16 per cent of Perth s industrial land market, and 9.3 per cent of Western Australia s regional industrial land market.

26 OUR SUSTAINABILITY PERFORMANCE METROPOLITAN DWELLING UNIT EQUIVALENTS RELEASED IN BY PROJECT Allara 9% The Vive 7% Harvest Lakes 6% Claremont on the Park 8% Blackmore Park 1% Jane Brook 9% Buckland Hill 2% Minim Cove 2% Rockingham Waterfront Village 6% Shoreline 10% Ocean Keys 11% Champion Lakes 2% Alkimos Beach Project Area 2 19% Ocean Rise 1% Rockingham Central Town Centre 2% Lot 200 Backshall Place Wanneroo 2% Seabreeze Waikiki 3% INDUSTRIAL LOTS RELEASED IN BY PROJECT Broome Road Industrial Park 17% Wedgefield Industrial Estate 5% Flinders Precinct 9% Meridian Park 17% Cockburn Commercial Park 12% Crossroads Industrial 40% REGIONAL RESIDENTIAL DWELLING UNIT EQUIVELANTS RELEASED IN BY PROJECT Barrarda Estate 40% Local RDAP 4% Waranyjarri Estate Broome North 23% Mandurah Junction 33%

27 INTEGRATED PROJECT DELIVERY 27 LANDCORPS KEY PROJECTS ACROSS WESTERN AUSTRALIA Head Office Regional Offices KIMBERLEY Ord-East Kimberley Expansion Project Januburu Six Seasons Broome North Waranyjarri Estate Broome Road Industrial BROOME PORT HEDLAND GASCOYNE Carnarvon NorthWater Carnarvon Cornish Street Light Industrial Exmouth Nimitz Residential Estate KARRATHA PILBARA Gap Ridge Industrial Estate Hedland Junction Wedgefield Industrial Estate Newman Light Industrial Area Ashburton North Strategic Industrial Area Karratha City Centre Baynton West Madigan Road Nickol West Estate East Port Hedland/Marina Precinct Newman Town Centre East Newman Residential Estate Mulataga South Hedland Town Centre MIDWEST Batavia Coast Marina, Geraldton Oakajee Morawa Light Industrial Morawa Residential Narngulu Industrial Estate PERTH AND PEEL Cockburn Central Town Centre Alkimos Beach Claremont on the Park Rockingham City Centre Western Trade Coast Australian Marine Complex Latitude 32 Forrestdale Business Park Shoreline Cockburn Commercial Park Mangles Bay Marina Tourism Precinct Meridian Park, Neerabup Perry Lakes Mandurah Junction Mandurah Ocean Marina PERTH WHEATBELT Avon Industrial Park Various RDAP Projects including: Dowerin Residential Dalwallinu Residential Hyden Residential GOLDFIELDS-ESPERANCE GreenView Residential Estate Karlkurla Rise Anzac Drive Industrial Estate SOUTH WEST Collie Shotts Buckingham Way Bunbury Waterfront Harvey Kemerton BUNBURY GREAT SOUTHERN Albany Waterfront Emu Point Katanning Mirrabeena Industrial Estate Yerriminup Industrial Area

28 OUR SUSTAINABILITY PERFORMANCE 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 and Performance LandCorp delivered $343 million in sales revenue in ( : $362 million). Similar to , almost two thirds of sales revenue came from the strong performance of our metropolitan program projects. The key reasons behind this strong metropolitan program performance were the impact of historically low interest rates, relatively low unemployment, and strong first home buyer and investor market segments. The slowing performance of regional projects, both industrial and residential, reflected the soft property market conditions. Property markets in regional areas have been impacted by the wider trends in the economy, with a significant decline in commodity prices, a slump in business investment in the resource sector and low business confidence. LandCorp delivered a profit after tax of $40 million. Careful management of cash flow saw LandCorp maintain approved borrowings limits ($126 million) at year end. During LandCorp invested $287 million in development expenditure and $59 million in land acquisition expenditure. ECONOMIC VALUE GENERATED AND DISTRIBUTED IN FINANCIAL YEARS , , AND ($ million) ($ million) ($ million) Direct economic value generated (Revenues)* Other costs of operation Land tax, stamp duty, income tax equivalents and local government rate equivelants Dividened to Government^ Saleries and on-costs Interest charges on loans Native title payments Sponsorships # Economic value retained Notes * LandCorp continues to undertake land development projects, supported by Government. Section 25A(3) of the Western Australian Land Authority (WALA) Act 1992 outlines the circumstances that would lead to a particular project being considered 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 $103 million in operating subsidies (which is recognised in direct economic value generated), assisting with the delivery of range of projects across the state. Of this funding, $72 million stemmed from Royalties for Regions including cost recoupments and fee for service projects such as Karratha City Centre Infrastructure, Karratha City of the North and South Hedland Town Centre Redevelopment. Of the remaining $31 million, $23 million 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 and dividends. The remainder relates to projects where LandCorp requires a top up to achieve the minimum rate of return on assets required under our Act. ^ As a Government Trading Enterprise, LandCorp pays a yearly dividend to Government. The actual dividend in was $94 million, however, only $48 million was funded by economic value generated and $45 million was funded by previous economic value retained. # Our sponsorship program aims to support community and industry. Community sponsorships include events, fairs, festivals and shows. Industry events include conferences, forums, workshops and programs.

29 INTEGRATED PROJECT DELIVERY 29 ADVISORY SERVICES TO GOVERNMENT Commitment LandCorp aims to provide significant value to State and local government agencies through high-level property advisory and project management services. Approach LandCorp provides a broad range of property services to Government including project management services, advice on property matters, surplus land asset disposal services and assistance with the remediation of contaminated sites. Through our advisory services we add value to Government land assets by carrying out due diligence, decontamination, rezoning and by achieving other clearances. LandCorp generally provides its advisory services at cost recovery rates. Australian Marine Complex Performance In LandCorp: Received $0.6 million of its total operating revenue from advisory services; sold 22 properties for Government grossing $43 million; currently have 16 Government properties, with an estimated value of $6 million, on the market; had 33 Government properties, worth approximately $17 million, being progressed towards disposal; and project managed the investigation of contamination issues for 11 sites for other State agencies. As the lead asset disposal agency, we are managing the divestment of 13 properties out of the top 20 assets identified by the Premier as being surplus. These sites include the IFAP Murdoch, Cottesloe Deaf School, DAFWA s Forrestfield Medina and Kensington Sites, Yirra Yakin Theatre Perth, Lots 420 and 421 East Rockingham, portion of the Claremont Oval, Fremantle Police Station and Court House, Potato Marketing Board site Coogee, Swan Districts Hospital, Old Perth Girls, Shenton Park Hospital and Woodside Maternity Hospital. In addition, LandCorp in conjunction with the Department of Lands are currently undertaking early due diligence on a further 51 sites that have been identified as surplus to Government needs. LandCorp will continue to work with the 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. With the key activities of LAMU being in policy development, asset review (asset database creation), governance, asset divestment (strategy) and outcome management (disposal), LandCorp is assisting with the last two activities (strategies to dispose of sites, as well as managing the disposal processes). LandCorp is focused on supporting the Department of Lands with achieving the State Government s objectives and providing strategic property and portfolio advice to the Minister for Regional Development and Lands.

30 OUR SUSTAINABILITY PERFORMANCE Buckingham Way, Collie: Regional Environmental Affordable Living (REAL Challenge) Demonstration House DELIVERING GOVERNMENT POLICY Commitment Our objective is to implement relevant Government policies through the delivery of residential, commercial and industrial land and infrastructure across the State. Approach and performance We work together with other parts of Government and the private sector, combining efforts and resources to deliver strategic land and infrastructure projects. This work is underpinned and directed by Government policy. Throughout this report we outline LandCorp s role in implementing wider Government policy. Some of the key policy influences include: Directions 2031 and Beyond and Draft Perth and 3.5 million in the metropolitan area we assist with the accommodation of Perth s increasing population by developing residential land, but also by focusing on increasing the density of residential development in activity centres and corridors and in urban infill sites. Affordable Housing Strategy each year we seek to dedicate at least 15 per cent of our lots to affordable housing outcomes. This includes selling affordable lots to private buyers, but also working in partnerships with the Housing Authority and community housing providers to facilitate the delivery of affordable housing. Heavy Use Industry Land Strategy we support the economic development of WA by delivering strategic and heavy industrial land and infrastructure across the State. Economic and Employment Lands Strategy - we also assist with the delivery of general and light industrial land in the Perth metropolitan area. We continue to address constraints to future industrial land development and bridge the gap between the public and private sectors within the industrial land space. Regional Centres Development Plan LandCorp is assisting Government to accommodate the State s anticipated population growth by participating in the delivery of growth plans on behalf of the relevant Regional Development Councils. Regional Investment BluePrints - are prepared by Regional Development Commissions and provide the primary social and economic development strategy for a regional area over the next 30 years. LandCorp will align its regional activities with these Blueprints. The Regional Development Assistance Program (RDAP) - is partially Government funded and enables LandCorp to develop land and make it available for residential, industrial and commercial purposes, which assists local governments to support economic and community growth.

31 PARTNERSHIPS, RELATIONSHIPS AND CUSTOMERS 31 PARTNERSHIPS, RELATIONSHIPS AND CUSTOMERS STAKEHOLDER ENGAGEMENT PARTNERSHIPS AND RELATIONSHIPS Commitment We are committed to working and engaging with our Government, industry, private sector, supplier, community and customer stakeholders to achieve positive outcomes for the Western Australian community. We seek to better understand our stakeholders businesses, their constraints, needs, concerns and their expectations of LandCorp. Approach We identify stakeholders in a variety of ways, 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. A series of corporate relationship management plans identify our approach for engaging with key stakeholders. Each stakeholder is also assigned a relationship owner who is responsible for the relationship health and stakeholder engagement. In addition to this, we have project based relationship plans. We seek to implement consistent and proactive engagement reducing the need for issues generated meetings. We have a Customer Relationship Management (CRM) system that we use to track and audit successful engagement on a quarterly basis. We also periodically undertake research to identify the views of our stakeholders. Performance Through our business activities we have the opportunity to collaborate and partner with experts and contributors across government and the private sector. Our relationships, how we engage and stakeholder areas of interest are mapped out overleaf. We are committed to working and engaging with our Government, industry, private sector, supplier, community and customer stakeholders to achieve positive outcomes for the Western Australian community. [G4-24, G4-25] L-R: Stuart Nahajski, LandCorp General Manager and Glyn Yates, Collie Deputy Shire President

32 OUR SUSTAINABILITY PERFORMANCE RELATIONSHIP WITH STAKEHOLDERS Government (State Government, metropolitan and regional local government, and Regional Development Commissions). We are committed to working with all levels of Government to deliver Government priorities and support long term growth in WA. Private sector, development industry and resource sector We engage with the private sector and identify opportunities for collaboration and partnerships. Suppliers We work with consultants, contractors, builders, selling agents to understand and manage the environmental, social and economic impact of our activities. HOW WE ENGAGE Our engagement is guided by targeted relationship management and stakeholder engagement plans (reviewed annually). Formal (i.e. partnerships) and informal engagement (i.e. meetings, correspondence, milestone engagement) at both a strategic and operational level. We also continue to support and provide expert property services to Government. Guided by targeted relationship management and stakeholder engagement plans (reviewed annually). Formal (partnerships with Developers and Builders) and informal engagement (meetings, industry forums, events, milestone engagement) at both a strategic and operational level. Guided by targeted Relationship Management and Stakeholder Engagement Plans (reviewed annually). Formal (partnerships with Builders) and informal engagement (meetings, industry forums, events, milestone engagement) at both a strategic and operational level. STAKEHOLDER KEY AREAS OF INTEREST Expectation that we achieve strategic land supply, and deliver against wider government policy objectives and priority projects, and continue to provide expert services to Government. In our 2015 stakeholder research, local government ranked providing land for local employment and business opportunities, delivering land, and affordability as the top three topics that they considered most important for LandCorp to develop strategies for, work towards and report on. State Government rated livability, affordability and energy use and carbon emissions as the top three topics. In our 2015 stakeholder research, builders and developers ranked affordability, providing land for local employment and business opportunities, and diversity of housing as the top three topics that they considered most important for LandCorp to develop strategies, work towards and report on. In our 2015 stakeholder research, contractors and consultants ranked energy use and carbon emissions, water use and management and diversity of housing as the top three topics that they considered most important for LandCorp to develop strategies, work towards and report on. [G4-24, G4-25, G4-26, G4-27]

33 PARTNERSHIPS, RELATIONSHIPS AND CUSTOMERS 33 RELATIONSHIP WITH STAKEHOLDERS Communities We endeavor to create value for the communities in which we operate. Universities/ research institutes, and peak bodies We engage with universities, institutions and peak bodies to share knowledge. As a result of common priorities and challenges we partner with research institutes to bring together theoretical and practical opportunities for applied research and learning. HOW WE ENGAGE We engage the community within our projects (online and/or face-to-face) taking a risk based and proactive approach to community engagement which often provides opportunities to mitigate and/or address community concerns. Communities also provide us feedback through letters, s and social media. Our Handling Public Feedback Policy ensures we capture positive and negative feedback from our stakeholders and address this appropriately. We engage with indigenous communities, traditional owners, Aboriginal Corporations, and Native Title Groups around our projects, as well as to support the development of our Reconciliation Action Plan. We work with not for profit organisations to investigate opportunities to support the local community and vulnerable groups, including community housing providers. We are a member of key industry bodies and business associations including the Urban Development Institute of Australia (UDIA), Property Council Australia, the Master Builders Association (MBA), Housing Institute Australia (HIA), Real Estate Institute of Western Australia (REIWA), and Chamber of Commerce and Industry (CCI). Our staff participate on many industry committees such as the UDIA s Urban Planning, Infrastructure, Outlook Committees, and the Property Council s Industrial Property, Planning and Urban Economics and Women in Property Committees. We have formal and informal relationships with universities and research institutes to share knowledge. STAKEHOLDER KEY AREAS OF INTEREST Key concerns and themes from community consultation are around the following sustainability areas: negative perceptions of density and social housing, and environmental issues (particularly impact on existing public open space), traffic and parking, and loss of some trees. In our 2015 stakeholder research, peak bodies ranked diversity of housing, affordability, and water use and management, as the top three topics that they considered most important for LandCorp to develop strategies, work towards and report on. Our current strategic research projects with Universities and Institutes are attempting to address the challenges of water sensitive cities, low carbon living, and the urban design and sustainability challenges of higher density infill developments. [G4-24, G4-25, G4-26, G4-27]

34 RELATIONSHIP WITH STAKEHOLDERS Customers We strive to create value for our customers by understanding their needs and providing quality products. Employees Our team of 212 staff bring a complementary range of multidisciplinary skills to our corporate and operational projects HOW WE ENGAGE We use marketing and media to provide information on our projects to potential customers. Customers provide us feedback through letters, and social media. Residential customers are contacted within three months of settlement regarding their satisfaction with the sales process. This information has now been collected for three years. We have also started research to understand the satisfaction of our customers with living within an estate and to assess the success of various place making and community initiatives. This has been undertaken for two projects so far. We have quarterly briefings for all staff, a program of 101 sessions by staff to staff, an open online dialogue with the CEO and an online application to recognise and celebrate each other s achievements every day. We periodically conduct internal staff surveys to gain a better understanding of staff opinions. STAKEHOLDER KEY AREAS OF INTEREST Customer satisfaction with the sales, marketing and purchase process as well as satisfaction with living within the 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 satisfaction. In our 2015 staff research, Staff ranked delivery of land, leadership demonstration and innovation, and affordability as the top three topics that they considered most important for LandCorp to develop strategies, work towards and report on. Alkimos Beach Artist impression for illustrative purposes only. [G4-24, G4-25, G4-26, G4-27]

35 PARTNERSHIPS, RELATIONSHIPS AND CUSTOMERS 35 CUSTOMER SATISFACTION Commitment Understanding and responding to our customers needs is important in order for us to remain competitive and relevant and to ensure we provide a valuable legacy for the West Australian community. High customer satisfaction with our service and product is essential as it means great communities, positive word of mouth, positive branding and ultimately increased sales. Approach Through our post-purchase customer satisfaction research program, residential customers are contacted within three months of settlement regarding their satisfaction with the sales, marketing and purchase process. This information has been collected since 2012, and is used to monitor LandCorp s performance both overall and on an individual project level. Findings, implications and recommendations are shared with all staff, and changes made to our product mix, marketing information/materials and sales process as a result. For the first time in , LandCorp also commissioned residents satisfaction research in two estates (Broome North and Baynton West Karratha) to understand factors that were most important to residents satisfaction once living in a LandCorp estate, as well as any potential issues that LandCorp could address. Performance Post-purchase research conducted in 2014 showed overall satisfaction amongst our customers remained high (87 per cent of purchasers were satisfied, similar to 87 per cent in 2013). The Net Promoter Score increased slightly to +35 (up from +32 in 2013). Satisfaction with the sales agents remained high (94 per cent, up slightly from 90 per cent in 2013), as did satisfaction with the settlement process (89 per cent, similar to 90 per cent in 2013). The research identified that the main reason for dissatisfaction was delays in receiving titles. In future, LandCorp will more clearly communicate expected settlement timeframes to minimise customer frustration and dissatisfaction. Residents satisfaction research in Broome North highlighted the positive impact of place making and community initiatives. Residents who had taken part in events/ activities organized by LandCorp had higher levels of satisfaction with the estate than those who had not. These findings are being used to support the continuation of place making and community initiatives within Broome North, as well as their introduction in other estates. Residents satisfaction research in Baynton West estate in Karratha highlighted issues with limited parking for boats and for visitors/ extra cars within the estate. As a result, LandCorp is currently investigating options for providing boat parking facilities for residents. At both estates it was found that key drivers of satisfaction for residents included proximity to good quality schools, a community atmosphere, attractive parks and playgrounds, having a range of lot sizes to choose from, well-maintained foothpaths and cycleways, and design guidelines that resulted in consistent, attractive housing standards throughout the estate. LandCorp is using these findings to improve, and bring forward, delivery of amenities within existing estates and to guide development of future estates.

36 OUR SUSTAINABILITY PERFORMANCE SUPPLY CHAIN SUSTAINABILITY Commitment We are committed to an ethical, accountable and transparent procurement process that maintains probity and fairness. We are committed to using our 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. Approach LandCorp has a dedicated procurement team that has strategic oversight for procurement strategy, procedures, policy, advisory services, staff knowledge sharing/training and reporting. This enables LandCorp to apply a whole of business approach to procurement activities. By ensuring our procurement practices are streamlined and well structured, we manage risk, achieve cost efficiencies, and enhance the quality of project outcomes. LandCorp acknowledges many Aboriginal and Torres Strait Islander people face significant social and economic challenges and lack opportunity. Our procurement model encourages Indigenous engagement by: Working with Indigenous people to build better relationships through partnerships or other arrangements; recognising and promoting Indigenous culture and heritage; creating and encouraging employment, and personal and professional development of Indigenous people, either internally or externally through building capacity and enabling increased engagement with mainstream economies; and the adoption of a tender exemption process that applies to Aboriginal engagement across the organisation. LANDCORP S SUPPLY CHAIN MANAGEMENT APPROACH Our corporate approach to procurement In order to pre-screen, catagorise and manage LandCorp s supply chain panel/management/preferred supplier lists for consultants and register management for contractors are established through a public process. Pre-screening is based on development expertise, accreditations in quality, safety, environment and indigenous engagement. By building and procuring from panels, pre-qualified registers and preferred supplier lists we seek to mitigate potential negative impacts and risks across labour practices, society and the environment. We have a four-tiered approach for our contractor pre-qualification register with strongest compliance for safety, environmental and quality management systems for Tier 1 contractors. Tier 1: Unlimited Value Contractors must be full third party accredited to ISO9001 or ISO9002, AS 4801 & AS Tier 2: Greater than $5 million Contractors must by accredited to Civil Contractor Federation Internal Management System standard as a minimum. Tier 3: Greater than $2 million Contractors must have documented internal quality, safety and environmental management systems as a minimum. Tier 4: Less than $1 million Contractors to be used for simple noncomplex works.

37 PARTNERSHIPS, RELATIONSHIPS AND CUSTOMERS 37 INITIATION (HIGH LEVEL BUSINESS CASE) DEFINITION (DETAILED LEVEL BUSINESS CASE) EXECUTION (CIVIL WORKS/ CONSTRUCTION, SALES) END-USE (CUSTOMER BEHAVIOUR AND SATISFACTION, AND CONTINUOUS IMPROVEMENT) Briefing and scoping Procurement is conducted through standard procurement documentation with standard clauses that include criteria such as occupational health and safety, environmental, Indigenous engagement and other compliance aspects. Standard procurement documentation clearly articulate LandCorp s expectations in each consultant brief to our supply chain. The sustainability elements (community wellbeing, economic health, design excellence and environmental responsibility) and the objectives that underpin them are incorporated into the standard briefing documentation to highlight our commitment to sustainable development. Sustainability objectives are also independently inserted into the scope of works depending on the service being requested and the nature of the project. Tender and selection Tender assessments are weighted to achieve project specific objectives and outcomes. Upon tender selection LandCorp use standard consultant contracts, along with monitoring, reporting and compliance. Briefing and scoping Tender and selection is conducted through standard procurement documentation with standard clauses that include criteria such as occupational health and safety, environmental, indigenous engagement and other compliance aspects. Tender and selection Tender assessments are weighted to achieve project specific objectives and outcomes. Upon tender selection LandCorp use standard works contracts, along with monitoring, reporting and compliance. Contractor management consists of monitoring, monthly reports, interim and close out reports including occupational health and safety, environmental, community development and sustainability, and compliance. Briefing, tender and selection Standard real estate agent briefs, consultant contracts, monitoring, reporting and compliance.

38 OUR SUSTAINABILITY PERFORMANCE Performance During we continued to undertake initiatives to improve its procurement practices. The implementation of an e-tendering system (TenderLink) was introduced in March 2014 and has enhanced the overall quality, timeliness and cost-effectiveness of the tender process. In , a total of 105 tenders were issued via TenderLink, which is 95 per cent of all tenders over that period. Several new consultant and contractor panels have been re-established, including Engineering, Marketing, Public Relations, Environmental, Tax and Accounting panels. Our pre-qualification process assesses the proven financial viability, sustainability capability and corporate alignment of potential suppliers. In , LandCorp successfully implemented a preferred supplier list of pre-registered landscape architects and continue to build a panel of pre-qualified landscaping contractors through the pre-qualification process. This process included pre-screening and weighted selection criteria to ensure we procure quality suppliers who are aligned with LandCorp values and partner with us to deliver sustainability. To implement Government s Aboriginal Economic Participation Strategy , LandCorp has created new guidelines and applied a weighting to the works tendering process to increase the participation of Aboriginal enterprise in our supply chain.

39 PARTNERSHIPS, RELATIONSHIPS AND CUSTOMERS 39 DIRECT ABORIGINAL ENTERPRISE PROCUREMENT AND SPONSORSHIP RESULTS FOR ADMINISTRATION, GOODS AND SERVICES, PROJECT CONSULTANTS AND WORKS NUMBER OF BUSINESSES NUMBER OF CONTRACTS AMOUNT (GST EX) Consultants 1 1 $75,000 Heritage Consultancy Services 4 4 $65,000 Landscaping Contractors 1 1 $1,525,000 Site Works and Repairs Contractors 2 3 $230,000 Sponsorship 3 3 $78,000 Total $1,975,000 Note: this information does not include facilitation work (in kind), where development managers have worked with various representatives from Aboriginal Corporations or local Aboriginal groups to assist in progressing development opportunities. We continue to explore ways of lifting the number of Aboriginal enterprises with supply contracts. As a result, Waangara Marra Consulting (100 per cent Aboriginal owned business) has been engaged to assist with developing a delivery model and revitalised procurement strategies. The five key areas that will be a focus over the next 12 months are: 1. Identify Aboriginal businesses and suppliers that align with the selection criteria and develop registers with capability statements, insurances etc. across Western Australia. 2. Structure workshops for Aboriginal businesses to assist them in responding to LandCorp tendering opportunities, health, environment, safety and quality expectations and possible joint venture prospects. 3. Conduct workshops and coaching sessions for our procurement team and development managers to enhance tendering documentation, in relation to Aboriginal engagement and assessment criteria. 4. Build cultural competency through 12 training sessions for LandCorp s development managers in communicating/ engaging effectively with Aboriginal businesses via learning circles. 5. Increase exposure of Aboriginal businesses to LandCorp personnel and key stakeholders via an annual forum. Our procurement approach includes supporting local suppliers including the ongoing economic development of local Western Australian business through implementation of a buy local strategy. Sourcing and supporting local business buy local is embedded into our procurement process. This strategy includes invitation of local suppliers to bid on opportunities, incorporation of buy local guidelines in tendering documentation and into the selection process. A report is distributed to the Department of Finance and Treasury on an annual basis reporting on our buy local statistics. This report covers three zones and purchases obtained in those zones. In , the percentage of our procurement budget used for significant locations of operation spent on suppliers local to that operation was approximately 48 per cent. Operating State-wide a core set of technical specialists and prequalified suppliers (consultants and contractors) are head-quartered in Perth, with that expertise and capability then deployed to a regional project.

40 OUR SUSTAINABILITY PERFORMANCE Community Community Urban design an DESIGN EXCELLENCE ENVIRONMENTAL RESPONSIBILITY Affordability COMMUNITY WELLBEING KEY IMPACTS OF DEVELOPMENT PROJECTS Impacts resulting from project planning and design (intended outcomes relating to liveability, accessibility of public spaces and built form, legibility and connectivity of streets and spaces, safety, cultural heritage and identity, diversity of land uses and housing, built form quality, and appropriateness of design to local context and climate). KEY IMPACTS OF DEVELOPMENT PROJECTS Land may have contamination and asbestos with associated impacts Construction impacts include: vegetation clearing (particularly for greenfield developments), sedimentation run-off, water use in construction activities, dewatering discharges, disturbance of habitats and soil/ roots, dust, resource depletion of sand and limestone involved in conventional developments, emissions associated with movement of fill and construction, waste generation from demolition and construction The development ultimately alters the hydrological regime, biodiversity (flora and fauna), and bush-fire impacts and associated management strategies when projects are in close proximity of bushland. Impacts associated with new communities include nutrient run-off, litter pollution, introduction of feral/ invasive species, vehicle travel (particularly in greenfield areas), end user energy and water use and waste generation. KEY IMPACTS OF DEVELOPMENT PROJECTS Community perceptions regarding the future development (social risks). Community acceptance of the project (e.g. increases in density, affordable and social housing, cost of living; heritage and culture, liveability, built form quality, biodiversity, flora, fauna and public open space impacts, and traffic/parking etc.). Social impacts resulting from the design and planning process (strength of stakeholder/ community engagement and relationships, and intended affordability, community development, indigenous relations outcomes) Social impacts associated with establishment of a new community (community development initiatives and activities, ongoing maintenance for local government). [G4-20, G4-27]

41 OUR SUSTAINABILITY PERFORMANCE 41 ECONOMIC HEALTH INNOVATION AND MARKET LEADERSHIP KEY IMPACTS OF DEVELOPMENT PROJECTS While in progress, works may negatively impact local businesses by temporarily relocating parking and making it more difficult for access. When complete the works will positively impact the community and the local economy by providing land for jobs, upgrading power, water and other infrastructure, improving traffic flows and parking, beautifying the streetscapes and town centres and providing additional new community facilities Impacts associated with new communities include the establishment of a new community of businesses, customers, workers and households. KEY IMPACTS OF DEVELOPMENT PROJECTS Innovation and leadership strategies and initiatives targeting industry sustainability challenges and opportunities. [G4-20, G4-27]

42 OUR SUSTAINABILITY PERFORMANCE SUMMARY OF SUSTAINABLE DEVELOPMENT MANAGEMENT APPROACH This table outlines LandCorp s sustainable development management approach. The management approach included tools, processes and approaches to manage our environmental, social, economic, and design impacts. Urban design an DESIGN EXCELLENCE PROJECT START-UP (IDEA AND OPPORTUNITY) We ensure alignment with Government policy and undertake basic due diligence considering the potential ntegration of sustainability elements (community, environment, economic and design). INITIATION (HIGH LEVEL BUSINESS CASE) We undertake preliminary due diligence and site and context investigation to inform feasibility analysis. This helps us to understand the intrinsic qualities and knowledge of a place, and identify potential opportunities for development. We develop a preliminary place based vision and key objectives for community, environmental, economic and design to guide future development. Depending on the context we consider our sustainability policies, guides and the application of the project design review process. We undertake pre-feasibility, due diligence and analysis of the potential environmental impacts. We also consider climate change risk throughout the project lifecycle. We undertake preliminary due diligence and site and context investigations to inform feasibility and identify impacts. We consider the application of the following our policies: Climate Change Policy, Climate Responsive Design Policy, Landform and Biodiversity Retention Policy and Urban Water Management Policy. ENVIRONMENTAL RESPONSIBILITY Community Affordability Community COMMUNITY WELLBEING We undertake high level due diligence to understand potential social impacts and stakeholder perceptions of the development. We consider our Guide to Successful Stakeholder Engagement and Relationship Management which involves preliminary stakeholder mapping and development of the stakeholder management plan. Across initiation, definition and execution phases, we undertake demographic and market research through locality scans to improve our understanding of the context and identify potential impacts and opportunities through social risk scans and assessments to understand impacts. We apply our Guide to Successful Stakeholder Engagement and Relationship Management and develop, refine and implement the stakeholder and community engagement plan, (including face to face and/or online engagement and stakeholder partnerships). We document and record public feedback, monitor media and manage issues, and continue to evaluate and refine the stakeholder engagement and communications plan. We consider the application of our Affordability Policy (including Our pre-feasibility and due diligence includes consideration of the project s alignment with Government policy and our strategic direction, existing and future demand, infrastructure requirements and economic impacts. ECONOMIC HEALTH We consider the application of industry accreditation and assessment tools to guide, track and improve performance, and we consider the potential to demonstrate innovation in response to an industry challenge or opportunity. INNOVATION AND MARKET LEADERSHIP [G4-20, G4-21, G4-27]

43 OUR SUSTAINABILITY PERFORMANCE 43 The specified control measures may not be relevant and appropriate for every project. The mix, scale and application of these control measures are considered on a project by project basis. DEFINITION (DETAILED BUSINESS CASE) AND EXECUTION (PROJECT DELIVERY) We undertake detailed site and context analysis building on preliminary investigations and analysis undertaken during the initiation phase. The preliminary vision and key objectives are reviewed and considered in collaboration with the local community and stakeholders to determine the preferred development scenario. The application of sustainability policies and guides are reconsidered (based on the outcome of detailed investigations, testing and analysis). The project plan is updated to reflect the outcomes of detailed analysis and community and stakeholder consultation. Project design reviews are undertaken during the concept design and detailed design phase to ensure the vision and key objectives are on track. BUILT FORM We undertake built form design reviews to monitor the quality and performance of buildings. Our design guideline template is used to create project and climate specific design guidelines that ensure the appropriate quality and performance of built form and landscape. END-USE (SUSTAINABLE COMMUNITY) We undertake project completion reviews to share knowledge and learning across the organisation. Periodic reviews of design review outcomes, and design guidelines are undertaken to identify improvement opportunities. We consider the use of PRECINX analysis (for metro projects) to investigate environmental performance scenarios and inform decision making. We undertake detailed planning and design to determine the opportunities for conservation, protection, rehabilitation of biodiversity, and purchase of environmental offsets. Depending on the context we engage environmental and fire management consultants to assess projects and to provide advice on vegetation retention and rehabilitation options to mitigate bushfire risk. We also develop and implement an Urban Water Management Strategy and biodiversity, waste and energy management plans when applicable. We obtain all relevant State and Commonwealth environmental approvals, and provide the results of environmental monitoring programs via publicly-available project websites. We further consider the application of the Policies and if applicable we address the requirements in the planning and design for the project. We include mandatory and recommended criteria in the design guidelines to improve the environmental performance of the built form and landscape (i.e. climate responsive design, water and energy efficiency). For key projects we provide sustainability incentive packages to achieve improved thermal performance, energy and water efficient appliances and renewable energy, and provide communication material to raise awareness of sustainability behaviour. Typically on-site retained vegetation is transferred to the local government authority or to the Department of Parks and Wildlife for ongoing management of vegetation. the development of an affordability strategy to address our target for at least 15 per cent of land to supply affordable housing). We also consider the opportunity to implement Reconciliation Action Plan strategies and initiatives. We create and implement a community development plan based on identified local community needs and the project plan reflects these considerations. We seek to understand and learn from customer satisfaction and stakeholder research (including net promoter scores, and qualitative information regarding strength of relationships). We evaluate the results of our engagement and community development. Depending on the project context we develop and implement economic development strategies/management plans and industry/business attraction strategies. We include any assessment tool requirements in the project plan and budget and use the tool to guide our overall planning, design, implementation and evaluation of outcomes. We define, prioritise, implement and evaluate our innovation and demonstration projects and communicate and share learning with Government and Industry. [G4-20, G4-21, G4-27]

44 OUR SUSTAINABILITY PERFORMANCE DESIGN EXCELLENCE Commitment We are committed to high-quality design. We think about design as a critical decision making process that positively influences the quality of the built environment and place based outcomes. The design process involves distilling the intrinsic qualities and knowledge about a place, its community and its future to create a vision for the development that optimises the social, economic and environmental value it brings. The design process helps us to build upon the unique social, economic and environmental opportunities of a particular place. Areas of strategic focus include: diversity of housing, liveability, cultural heritage and identity, and built form quality. DIVERSITY OF HOUSING LIVEABILITY We are committed to delivering a range of residential lot sizes and dwelling types to facilitate housing diversity because we recognise the changing needs of the community and the importance of providing choice and affordable housing opportunities for a wide demographic. Our commitment to Liveability involves the provision of a range of live, work and play opportunities through increased residential densities in close proximity to mixed-use centres, local employment, community facilities and public transport. Our developments provide for healthy choices and an active lifestyle through the provision of well-designed streets, public spaces and parks. CULTURAL HERITAGE AND IDENTITY Our approach to the design of new locations and spaces relies heavily on cultural heritage and identity because we appreciate the rich history of our State and the benefit of telling the story of each place and its own unique qualities. This ensures that we respond to the local context and reinforce a sense of place within communities. BUILT FORM QUALITY We are committed to quality built form because it has such a big impact on the communities that live and work in our developments as well as the organisations that invest in and establish businesses in them. The built environment has the ability to influence many aspects of liveability by providing high quality amenity through climate responsive design, a strong interface with the public realm which promotes comfort and safety, and contributes to the overall identity and sense of place thorough appropriate architectural composition and landscape.

45 DESIGN EXCELLENCE 45 DESIGN PROCESS INTEGRATED INTO PROJECT LIFECYCLE To inform our design approach, we have 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 two vernacular handbooks which provide comprehensive guidance for home owners, builders and developers in the Pilbara and Kimberley covering strategies and design solutions for built form and the public realm. Approach LandCorp s approach to design has been strengthened through continuous improvement of internal practices and embedding the use of the design process in LandCorp s standard project procedures manual. Our design is strongly guided by the use of four key processes that when combined provide a framework for the development and monitoring of robust concept design for our development projects. These four key processes are: site and context analysis, vision and objective setting, project design reviews and design guidelines. PROJECT START-UP (IDEA AND OPPORTUNITY) AND INITIATION (HIGH LEVEL BUSINESS CASE) We undertake site and context analysis to understand the intrinsic qualities and knowledge of a particular place and identify potential opportunities for development. This in turn informs the setting of a place based vision and objectives for the particular project. DEFINITION (DETAILED LEVEL BUSINESS CASE) Design reviews improve the quality of design and sustainability through the engagement of industry professionals who review projects at key stages of planning and design. They provide an opportunity for fresh eyes to review the development against the project s vision and objectives. EXECUTION AND BUILT FORM (CONSTRUCTION, AND SALES) Our primary role is in land development, as such we are not always involved in built form. However, when we are we add value to and influence the performance of the built environment through design reviews of built form and the use of design guidelines. Our design guideline template provides a mechanism for the development of project specific design guidelines. The template provides guidance on building design and performance as well as landscaping design which is tailored to the specific location and climatic conditions. In addition to the specific site and context, the template is informed by policy and research.

46 OUR SUSTAINABILITY PERFORMANCE Perry Lakes Performance During our focus has been on the improvement of our internal processes for identifying new opportunities and ensuring that we have the right tools and resources in place to optimise design outcomes from the outset. Our ability to investigate and understand the qualities of each site is critical to good design outcomes and provides a platform for the development of a strong vision and set of key objectives that respond in an appropriate manner to the particular development context. These processes are now embedded in LandCorp s revised standard project procedures manual. The project design review process which has been running for more than seven years is now embedded in operational systems and is a regular undertaking for development projects. Our design reviews are the mechanism by which we monitor the qualitative performance of our developments, assessing aspects such as cultural heritage and identity, liveability, and the diversity and quality of the built environment. In the past year, key development projects were reviewed including Shenton Park and Broome North. Detailed design reviews were also undertaken for a number of built form projects in Cockburn Central, Mandurah, Newman and Bunbury. A focus for the coming year is to develop a program of design reviews to be undertaken prior to our overall project reviews so that key outcomes of design reviews can be discussed at the Executive level in an integrated way.

47 DESIGN EXCELLENCE 47 SHENTON PARK DESIGN REVIEW EXAMPLE The Shenton Park development has been reviewed twice during The process involved a series of independent reviews involving a panel of external experts who reviewed the project in accordance with the Green Building Council of Australia Design Review Terms of Reference. The first reviews covered site planning and layout and focused primarily on the themes of connectivity, density, infrastructure and landscape. The key comments from the review panel included there was a need for further consideration and analysis of heights (best locations), street hierarchy, lot shapes and development edges through 3D modelling; as well as the need to address the topography across the site to optimise development opportunities. Following an update of the masterplan that responded to the comments from the previous review, a second design review was undertaken. This review focused on urban design and the development of design criteria to be incorporated into the Shenton Park design guidelines. Key comments from the panel focused on further consideration of road treatments to reduce traffic speed through the development, as well as increased amenity to improve walkability, and the development of clear strategies to increase sustainability outcomes. These reviews will inform final revisions to the masterplan prior to a third design review being undertaken in September The design review process at Shenton Park demonstrates the benefits of design reviews at the appropriate time during the project s lifecycle and the positive outcomes that can be achieved by providing an opportunity for in depth discussion about design principles, quality and functionality to take place while the project is still evolving. LandCorp s design guideline template continues to improve with some significant changes resulting from a recent independent design guideline review and feedback from industry. We have refined our residential/mixed use template to provide more flexibility and choice while simplifying the structure and content to make the document more legible and user friendly. In addition, for the development of project specific design guidelines we have adopted a fit for purpose approach whereby detailed and aspirational design guidelines can be produced for our Innovation through Demonstration projects and more accessible and simplified versions can be produced to promote affordability in response to the project context if required. DESIGN GUIDELINE EXAMPLES A good example of this approach is our comprehensive WGV at White Gum Valley design guidelines which are promoting high levels of design excellence and sustainability innovation versus our more concise and pared back design guidelines at Lakeside Park in Kununurra, which provide guidance to ensure that the built form responds adequately to the local climate, streetscape and open spaces while still providing opportunities for affordable living. Our priority is to ensure that design quality is reinforced through our Consultant Briefs, Request for Services and Expression of Interest procurement documents. BILD INNOVATION PROGRAM The BILD Innovation Program is going strong and another interesting project has been undertaken by fifth year architecture students at UWA, this time with a focus on housing diversity and density at Leighton Beach. This year s research studio was the fourth to be undertaken since the program began in The program provides opportunities for tertiary student engagement with industry and enables a creative environment for collaboration resulting in the development of innovative and place specific design solutions that address varying challenges in Western Australia.

48 OUR SUSTAINABILITY PERFORMANCE ENVIRONMENTAL RESPONSIBILITY CLIMATE CHANGE Commitment Due to the expected impacts of climate change, and the exposure of the property and construction industry to these impacts, we understand the importance of mitigation and adaption strategies. Climate change impacts across Western Australia include major shifts in temperature and rainfall, increased frequency of extreme weather events such as cyclones and coastal flooding, as well as sea level rise. Approach Our Climate Change and LandCorp Policy Statement outlines our approach to climate change. We are committed to addressing climate change by reducing our carbon footprint through: Creating centres of activity that maximise the use of public transport, walking and cycling, optimise existing amenities and infrastructure, and creating opportunities for local employment; protecting, retaining, and rehabilitating vegetation through our management of biodiversity to offset carbon emissions; and resource efficiency practices for water and energy use, and management and waste management. Performance The impacts (both as risk and/or opportunity) of climate change are addressed on a project by project basis. This has been enhanced during through climate change risk now being incorporated formally into our corporate risk assessment process. In the risk assessment process climate change has been identified as a consequence and is recognised under Operational Risk 10 failure to plan for natural disaster. Specific key controls include: business continuity plan, disaster recovery plan, cyclone policy, fire management plan, remote work policy and insurance. 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 the aesthetic qualities of green spaces. We seek to minimise impacts on biodiversity and improve environmental outcomes wherever possible. Approach LandCorp s development activities have an inherent environmental impact, particularly in greenfield areas. Impacts include affecting local bushland habitats and natural waterways. To manage these impacts LandCorp has a Landform and Biodiversity Policy. This Policy seeks to ensure all land development projects optimise the retention of natural landform and biodiversity. In addition, LandCorp conducts surveys at the commencement of each project to ascertain what biodiversity is present on a site. The results of these surveys determine the relevant State and Commonwealth environmental approvals required for each project, and the opportunities for retention of biodiversity that are present. Where residual impacts to biodiversity are unavoidable, in line with State and Commonwealth guidance, environmental offsets are provided. In addition, LandCorp engages environmental and fire management consultants to assess our projects and to provide advice on vegetation retention and rehabilitation options to mitigate bushfire risk. Annual compliance reporting requirements to State and Commonwealth agencies provide an indication of the success of the management measures which were proposed to be implemented and identify where further actions are required. As part of the State and/ or Commonwealth environmental Conditions of Approval LandCorp provides the results of its environmental monitoring programs via publicly available project websites.

49 ENVIRONMENTAL RESPONSIBILITY 49 Performance BIODIVERSITY IMPACTS AND MANAGEMENT STRATEGIES PROJECT PROJECT LIFECYCLE STAGE IUCN RED LIST SPECIES IMPACTED (if applicable) HECTARES OF HABITAT CLEARED IN MANAGEMENT OF IMPACTS INCLUDING ANY ENVIRONMENTAL APPROVALS, HABITATS PROTECTED AND RESTORED Rockingham Industrial Zone Initial earthworks and road construction Carnaby s Black Cockatoo (Endangered) 4.8ha State and Commonwealth environment approval. The retention of 92ha of Conservation Area to be ceded to the Department of Parks and Wildlife for conservation. 21ha of revegetation is planned in partnership with Department of Parks and Wildlife. Allara, Eglinton Initial earthworks and road construction Carnaby s Black Cockatoo (Endangered) 33.17ha State and Commonwealth environment approval. Retention of conservation area, rehabilitation and purchase of offsets. Of the 240ha development area, 6.5ha of the project site to be retained for conservation. The development area has an approved offset through the purchase of 97ha of Black Cockatoo habitat*. Forrestdale Subdivision construction Carnaby s Black Cockatoo (Endangered) 25.08ha State and Commonwealth environment approval. 6.8ha of Forrestdale Main Drain floodplain revegetation is in progress. Restoration works are being audited by independent environmental consultant and Department of Parks and Wildlife. Alkimos Subdivision construction Carnaby s Black Cockatoo (Endangered) 17.78ha State and Commonwealth environment approval. 50ha of vegetation will be retained in public open space and Foreshore Regional Open Space. The Alkimos development has an offset purchase of 126ha of Black Cockatoo habitat*. Broome Industrial Park Initial earthworks and road construction Greater Bilby (Vulnerable) 22.38ha Avoidance of Bilby habitat areas. An additional targeted survey in response to a sighting and investigation by the Commonwealth did not provide evidence to suggest that development posed a significant impact on the greater Bilby population. Mangles Bay Marina, Rockingham Planning phase None No clearing in State and Commonwealth environment approval. Of the 66ha development area, 40ha is native vegetation of which 1.93ha is Threatened Ecological Community. 3.97ha has been set aside as a conservation area. Claremont Area G Planning phase None No clearing in State environment approval. Of the 6.35ha development footprint, 2.85ha of native vegetation is to be retained and rehabilitated in consultation with Botanic Parks and Gardens Authority. 3.5ha is to be cleared this includes clearing of 2.3ha of native vegetation, the remaining 1ha is weeds/firebreaks. * These offsets were purchased in 2012 as part of a 4,402ha advanced offset purchase approved by the Commonwealth Environment agency. The advanced offset is protected as regional open space under the management of the Department of Parks and Wildlife.

50 OUR SUSTAINABILITY PERFORMANCE WATER USE AND MANAGEMENT Commitment We are committed to protecting water resources, reducing water use and promoting water recycling. We acknowledge the importance of water conservation and efficiency in our drying climate, where groundwater supply is already under pressure. Approach The State Government Policy Better Urban Water Management sets the framework for the development of integrated water management strategies. Through these strategies, LandCorp contributes the greatest direct value to water conservation and efficiency. These strategies aim to minimise irrigation demands, both domestic irrigation and for public open space, which are the largest non-drinking water uses within a structure planning area. While we do not have operational control over water consumption after construction, we seek to influence end use (i.e. household and commercial) water efficiency and source substitution through partnerships and mandatory and recommended criteria in design guidelines. Performance Our three year partnership with the Co-operative Research Centre for Water Sensitive Cities (CRC WSC) research program is in its final year. A key outcome in was the application of this research through a research synthesis workshop held for the Station Square at Batavia Coast Marina Stage 2 project in Geraldton. The workshop culminated in the publication of an Ideas for Batavia Coast Marina Stage 2 Report by the CRC WSC. The ideas that are being worked into the design for the Station Square public realm include: an urban wetland, urban forest and key landscape features to reduce wind and the heat island effect, and the collection of stormwater from all residential lots and roads, as well as some mixed-use and commercial lots for reuse as irrigation for landscaping. This has the two-fold benefit of dealing with stormwater runoff from the development without impacting on the city s drainage system and supplementing public open space irrigation system with stormwater.

51 ENVIRONMENTAL RESPONSIBILITY 51 ENERGY AND CARBON Commitment We are committed to reducing energy use, increasing energy efficiency and identifying and implementing opportunities for renewable energy. We acknowledge that energy efficiency is an important carbon emissions mitigation strategy, as well as a strategy to lessen the impact of increasing energy costs, particularly electricity for our customers. Approach Climate responsive design is an important consideration in our planning and design. This ensures that the subdivision and lot layout responds to the local climate; increasing the comfort of the public realm and buildings, and reducing the reliance on mechanical heating and cooling. We have a Climate Responsive Design Policy to guide our approach. While end use energy consumption behaviour is outside our direct control we seek to influence energy efficiency by including mandatory and recommended criterial for climate responsive design and energy efficiency in detailed area plans and design guidelines. To extend our influence, we also explore opportunities for renewable energy generation, behaviour change education and awareness, and innovation and demonstration opportunities. Performance Several LandCorp projects have focused on climate responsive design; these include Gen Y Demonstration Housing Project, WGV at White Gum Valley, Alkimos Beach, Broome North and the Pilbara Vernacular Demonstration House. LandCorp continues to include energy efficiency and climate responsive design considerations into our design guidelines on a project by project basis. LandCorp has implemented initiatives for the production of renewable energy for a number of projects such as: provision of photovoltaic panels for the first stage of Alkimos Beach, as well as a Lend Lease, Synergy and LandCorp partnership trailing community battery energy storage; Cool Earth GeoExchange at Craigie; PV panels and battery storage at Gen Y Demonstration Housing Project and WGV at White Gum Valley. These initiatives aim to reduce the energy demand from the grid and decrease the emissions associated with traditional energy generation. In LandCorp developed a discussion paper and a fill minimisation methodology. It is anticipated that the implementation of this methodology will help to reduce the volume of fill and earth works required wherever possible, and in this way contribute to minimising cost and emissions resulting from the extraction and transport required to import fill to development sites. COOL EARTH INNOVATION THROUGH DEMONSTRATION This demonstration project will be built at The Vive at Craigie; an urban infill development north of Perth. It aims to measure the effectiveness of an open loop ground source heat pump system to heat and cool homes, and has the potential to significantly reduce household heating and cooling costs. In conjunction with the Alcock Brown-Neaves (ABN) Group, we will construct two identical homes. One will contain the new technology and the other will not. Over a two year period the effectiveness of the system will be carefully monitored and analysed to measure its success. The open loop ground source system works by using the near constant temperature of ground water to improve the efficiency of a reversecycle 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 warmed or cooled groundwater can then be either reinjected into the groundwater aquifer or used for garden irrigation or other non-drinking water uses around the house. The project is the first to monitor the efficiencies compared with conventional home heating and cooling in Western Australia and we are hopeful the test results will show major cost and energy savings. This project has the potential to provide an alternate option for householders looking to reduce energy costs and run more environmentally friendly, efficient and comfortable homes. To deliver the project, we have partnered with the ABN Group, GeoExchange Australia, Carbonomics Australia and The University of Western Australia.

52 OUR SUSTAINABILITY PERFORMANCE WASTE MANAGEMENT Commitment We understand the importance of improved waste management of our demolition and construction activities. We seek to avoid, reduce, recycle before disposal as a last resort to maximise resource efficiency and reduce or mitigate the impacts of material production and development on the natural environment. We are committed to investigating, managing and appropriately treating hazardous waste and contamination mitigating risks to both the environment and human health. Approach and Performance In our last Sustainability Report we identified the need for a more consistent approach for waste management in our operational projects. This new approach is currently being developed and will require the development of project specific Waste Management Plans that will specify demolition and construction waste recycling targets on a project by project basis. This will improve our performance reporting. Several projects have focused on improving waste management practices. Perry Lakes diverted more than 75 per cent of demolition material from disposal in landfill; Alkimos Beach has a builders waste initiative that collects construction waste from building sites for recycling storing it at a centralised facility for reuse by builders; and the Shenton Park Redevelopment and WGV at White Gum Valley are focusing on waste management as part of their planning and design. One of LandCorp s development areas relates to urban renewal, involving the investigation and remediation of sites contaminated by historical land uses. LandCorp has an Environmental Services team which assists in the investigation and management of contaminated sites. The team also assists other State agencies to manage contaminated sites, and acts as project manager for the investigation and remediation of orphan sites. During , LandCorp project managed the investigation of contamination issues for four sites for its own developments: Shoreline, Access Park Forrestfield, Batavia Coast Geraldton and the former Shenton Park Hospital site; and a further 11 sites for other State agencies. During LandCorp successfully remediated five sites to enable residential landuse totalling 27 hectares (Former Albany Gasworks site, Goddard Street Rockingham, Cockburn Coast, Batavia Coast Geraldton, and Former Koorilla Primary School Coolbellup). Two projects, Cockburn Commercial Park, and Walpole former timber mill site were remediated in to allow for industrial landuse, the total area remediated was 8 hectares. No hazardous waste was knowingly imported, exported, or treated by LandCorp. LandCorp s operations do not discharge liquid wastes and therefore this is not captured and reported. No LandCorp discharges or runoff significantly affected any water bodies or related habitats. LandCorp occasionally has dewatering discharges for construction works; however none were completed during the reporting period. The table below identifies asbestos contaminated soil which was removed from several infill development sites. LANDCORP TOTAL HAZARDOUS WASTE DISPOSAL PROJECT SOURCE TOTAL ASBESTOS CONTAMINATED SOIL LANDFILL REUSE Walpole Demolition waste 1.89kg 1.89kg - Former Koorilla Primary School Demolition waste 12,432m 3 12,432m 3 - Cockburn Coast Demolition waste 26,311m 3 26,311m 3 - Goddard Street Demolition waste 35,000m 3-35,000m 3

53 COMMUNITY WELLBEING 53 COMMUNITY WELLBEING COMMUNITY ENGAGEMENT Commitment We acknowledge the importance of involving the community from the early stages of planning to make sure they have their say to positively influence development outcomes. We are committed to actively engaging with communities and aligning our business values with community values. This includes listening, identifying and addressing expectations and concerns, maximising potential community benefits and building relationships. Approach Our Stakeholder Engagement Guidelines outline the principles for engaging our stakeholders. It provides practical guidance through tools and templates for the development of stakeholder engagement and communication plans. As part of the updating of our Project Procedures Manual the Guidelines were embedded into the project planning process. The guidelines, along with providing opportunities for online engagement, promote quality engagement with the community beyond baseline requirements, which can be characterised by doing the minimum level of engagement to meet standard compliance (e.g. statutory requirements). Stakeholder and community engagement is evaluated through the results of regular stakeholder research, customer satisfaction research, public feedback, and by tracking the number of stakeholders engaged in our online and face-to-face engagement practices. Another indicator of our performance is the timeliness of project approvals that are not delayed by community objection, or negative submissions. Our community relations manager has been part of the International Association for Public Participation s (IAP2) development process for the Quality Assurance Standard (due to be launched towards the end of 2015). As a result, the Guide to Successful Stakeholder Engagement will be reviewed through consultation with internal stakeholders and consideration of the IAP2 Quality Assurance Standard. This may establish a new benchmark for measuring and tracking the quality of LandCorp s stakeholder and community engagement. We acknowledge the importance of involving the community from the early stages of planning to make sure they have their say. Supported Indepedant Living Craigie Performance During a Customer Service Charter was developed to achieve a greater focus on customer service and positive relationships with colleagues as well as with our stakeholders, customers and consultants. Based on our organisational values, the Charter supports a consistent approach to building and maintaining positive relationships and demonstrating a high standard of service. Project approvals not being delayed by community objection or excessive negative submissions is a key indicator of our performance. A proactive stakeholder engagement and communications strategy was put in place for our Jolimont project, which lead to the development of a strong partnership with the Town of Cambridge as well as other key stakeholders and community. This resulted in the efficient delivery of planning approvals for the Outline Development Plan. For our Gracetown project, statutory planning approvals have not been received due to community and stakeholder dissatisfaction. We are therefore working through this by further engaging with key stakeholders and the community to ensure they have opportunities to provide feedback and understand the statutory planning process.

54 OUR SUSTAINABILITY PERFORMANCE Cockburn Central Town Centre: Pop-up cafe We monitor performance against the Handling Public Feedback Policy. No systemic issues have been identified through the process, however our reporting has dropped off and we need to continue to raise awareness and understanding about the value of recording and responding. A focus on delivering a more strategic approach to community engagement and Building an Engaging Organisation has continued over the past 12 months, resulting in improvement in the proactivity and consistency across the business. Community engagement is increasingly occurring in the early planning phases of many projects, as the value and benefit to project approvals, timeframes, financial outcomes and stakeholder relationships are being progressively realised across the organisation. Although there has been improvement across the business in engaging the community, there is still a gap in post-performance evaluation of our engagement practice and a missed opportunity to share learnings across the business. Therefore, the aim over the next 12 months will be reviewing our guidelines and focusing on how we can better evaluate our engagement process to understand and report on the impacts and benefits for our communities. MIDDLETON BEACH (ALBANY) COMMUNITY CONSULTATION RESEARCH To understand community preferences for the prime vacant land at Middleton Beach (the old Esplanade Hotel site), LandCorp carried out comprehensive community consultation with local residents, including a quantitative survey open to the general public (both online and paper-based), and three focus groups with community members. A total of 212 people completed the quantitative survey, and 25 people attended the focus groups. The local community had a strong interest in the future of the site. Preferred uses for the site included high-quality tourist accommodation, a family restaurant, café, bar and function centre. Least preferred options were offices, residential apartments and townhouses. The community expressed a very strong preference that any residential development on the site should be limited, to avoid making the area inaccessible to the general public. The findings will be used to guide the next stages of the development. ONLINE ENGAGEMENT In July 2014, following a trial of an online community engagement platform we introduced an online portal as an additional medium to be used as part of the organisation s broader stakeholder engagement and communication process. Building on successful outcomes from our trial of engaging online for the Jolimont project, we continued to develop our use of this online toolbox for engaging with a broader spectrum of the community. As part of our extensive stakeholder engagement and communication plans for the Shenton Park Hospital site and Middleton Beach Albany, online engagement has become an important tool for sharing information and gathering feedback from our communities and shaping plans for these developments.

55 COMMUNITY WELLBEING 55 Of the 11,000 visitors to our online engagement portal 37 per cent chose to become better informed about a project by browsing more than one page, or by providing us with feedback using one of the online engagement tools. Over the past 12 months of engaging with the community online across Jolimont, Shenton Park and Albany Middleton Beach - over 11,000 visits have been to LandCorp s online engagement hub; with 4381 people visiting more than one online project page to become better informed about our developments. Over 600 people have directly engaged with LandCorp to Have their Say by providing us with their feedback through surveys, discussion forums and the Q&A tool. Our online presence has continued to complement our face-to-face engagement with the public. By providing another consultation channel we have been able to access a wider audience, significantly broadens our engagement and communications reach, as well as increasing the level of transparency and accessibility stakeholders have to a project s design and decision making processes. 11,000 LANDCORP ONLINE ENGAGEMENT VISITS In achieving the stakeholder engagement objectives for redeveloping Shenton Park, online engagement has to date achieved the following: Assisted the project and consultant team in better understanding the community values associated with the site and surrounding area; via the online forum, the community debated the key considerations for the site which resulted in stakeholder feedback influencing a number of key design decisions in developing the masterplan; enabled the community to become better aware of the different values individuals attributed to the site and opinions on key issues; and greater accessibility and transparency with face-to-face consultation techniques and information being promoted and supported online. Also as part of the ongoing evaluation of the Shenton Park community consultation process, stakeholders have told us that visiting the online hub has been the most popular method of engaging with the organisation throughout the redevelopment process to date. 30 people attended an open day compared to 1283 visitors to the Shenton Park engagement site to find out about the draft Masterplan and become better informed and provide feedback. In addition, the platform has increased capacity to have a conversation online and facilitate other communication options with our stakeholders. It complements our existing website by enabling a two way conversation with stakeholders and as a result, over 400 people have also asked to be added to our CRM database so they can be kept informed as a project progresses and in the future there is the potential to convert those engaged into potential purchasers. Of the 11,000 visitors to our online engagement portal 37 per cent chose to become better informed about a project by browsing more than one page, or by providing us with feedback using one of the online engagement tools.

56 OUR SUSTAINABILITY PERFORMANCE Cockburn Central Town Centre COMMUNITY DEVELOPMENT Commitment We have an important role in contributing to and facilitating community health and wellbeing, and vibrant communities through our community development approach. We recognise that when community development works well it enables communities to identify and address their own needs. We seek to understand community needs and aspirations to determine the appropriate community development partnerships and strategies which may include events, activities, and soft and hard infrastructure. Approach All projects undertake a level of local community engagement, assessment of impacts and community development. However the approach depends on the scale of the project and the community context and varies along the continuum of compliance, risk-management approach, valueadd, and demonstration approach. Performance LandCorp continues to work closely with not-for-profit organisations and local and State Government agencies to investigate opportunities to support the local community and vulnerable groups. LandCorp, Access Housing and Fremantlebased cooperative Sustainable Housing for Artists and Creatives (SHAC) are working together to deliver a community housing development for local artists and their families within WGV, supporting creative industry and encouraging diversity and culture in the community. 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. In addition, a partnership with the Disability Services Commission for the White Gum Valley Gen Y Demonstration Housing Project will show how the principles of Liveable Housing can be incorporated into new homes to provide more flexibility and accessibility for future residents. To further improve our performance we need to ensure that the preparation of the community development plan starts early on in the planning process so it identifies and responds to community needs and is highly integrated with the stakeholder and community engagement approach.

57 COMMUNITY WELLBEING 57 SPROUT HUB AT ALKIMOS BEACH Alkimos Beach is being developed as a partnering arrangement with Lend Lease and LandCorp, and since June 2014 has been home to the Sprout Hub a unique community initiative that has been designed, facilitated and managed by Sprout Ventures with support from the City of Wanneroo. The Sprout Hub is focused on stimulating social connection, trust and reciprocity, supporting community groups and small business and enabling community participation and contribution. Sprout is a temporary pop up community hub located at Escarpment Park that is responding to the needs and wants of the Alkimos Beach community until permanent infrastructure is in place. It is a multi-use venue which combines a social enterprise cafe, co-working space, event space, digital community portal, and communityled grassroots fund and is thought to be the first of its kind in Australia. Sprout Ventures enterprise was brought in to address two major challenges early delivery of social infrastructure and creating a ground-up community development without long-term reliance on external funding. There were 10,290 visits to the Hub in the first 12 months, which is an average of 39 people every day in the context of the development where the population started at 16 and ended at 442 residents in that period. A total of 46 events occurred at Sprout Hub in the first 12 months, with a combined attendance of 971 people. Of all the events and activities that took place in the first year, 63 per cent of were community led. The initiative has a strong focus on demonstrating its social impact which includes an annual social outcomes survey of people who have visited Sprout at least once. Of the 89 survey respondents, 78 per cent said that Sprout Hub provided them with more or much more opportunity for social connection and 57 per cent had made a new friend at Sprout. Sprout also supports community groups through the integration of a digital portal where events can be listed, as well as a locally led charity fund, the Seedling Community Fund. As a result, 11 groups applied for the Seedling Fund, with four successful groups sharing in $10,629 of grants. Ten cents in every dollar spent at the café goes into a fund, and once a quarter grassroots community groups apply for the funding, three are selected and then the public votes for how the money is distributed. SPROUT meeting area deck

58 OUR SUSTAINABILITY PERFORMANCE Mandurah Junction Artist impression for illustrative purposes only. AFFORDABILITY Commitment We have a role in addressing the affordability of residential, commercial and industrial land particularly where it is negatively impacted by constraints on land supply. In the last 10 years, Western Australia s resource sector boom and rapidly growing population has resulted in rents and housing prices increasing significantly and this has restricted access to affordable housing for many Western Australians. Approach LandCorp s primary policy influence in relation to affordability is to help deliver on the objectives of the State Government s Affordable Housing Strategy : Opening Doors to Affordable Housing, led by the Housing Authority. LandCorp s own Affordability Policy directly supports the implementation of this Strategy, and includes a target of at least 15 per cent of our land to supply affordable housing for those on low-moderate incomes. In order to support the Affordable Housing Strategy : Opening Doors to Affordable Housing policy objectives LandCorp works on the following three priorities: We identify specific projects that will deliver affordable land and housing outcomes, we embed these objectives in business cases and project specific affordability strategies, and work with local and State government authorities and with private sector partners to deliver land and housing at affordable price points; we work closely with the Housing Authority to identify and provide suitable lots for affordable housing outcomes; and we work in partnerships with the community housing sector to identify and provide suitable lots for affordable housing outcomes. Performance In we reported against an affordable price point provided by the lead agency for Affordable Housing Strategy the Housing Authority. After further consultation with the Authority in 2015 we have agreed to assess our performance by reporting: The percentage of lots sold at or below the median lot price; and the percentage of lots sold in the lower quartile price. The median lot price and the lower quartile price are provided by the Real Estate Institute of Western Australia (REIWA). In , 52 per cent of LandCorp lots were sold at or below the state-wide REIWA median lot price. 67 per cent were sold at or below the Perth metropolitan area REIWA median lot price of $268,000 and 40 per cent were sold at or below the REIWA median lot price of $172,750 for regional Western Australia (see infographic overleaf). At present REIWA figures for the lower quartile lot price are not provided for metropolitan Perth and regional Western Australia and therefore we will be approaching REIWA to find out if these figures can be made available for future performance reporting. In work continued with the Housing Authority and the community housing sector. We sold 20 lots to the Housing Authority for affordable housing in both regional and metropolitan Western Australia and we sold three grouped housing sites to Access Housing. The three lots, two at Waikiki and one at Coolbellup, will yield 34 dwellings in total. On one Waikiki lot Access Housing will demonstrate the Disability Services Commission Liveable Homes Initiative. At WGV in White Gum Valley we have partnered with Access Housing to support affordable housing for artists and creatives.

59 COMMUNITY WELLBEING 59 15% 52% 67% 40% AFFORDABLE HOUSING BELOW THE STATEWIDE MEDIAN LOT PRICE BELOW THE METROPOLITAN MEDIAN LOT PRICE BELOW THE REGIONAL MEDIAN LOT PRICE We dedicate at least 15 per cent of our land supply to affordable housing for those on low-moderate incomes. 52 per cent of LandCorp lots were sold at or below the statewide median lot price. 67 per cent of LandCorp lots were sold at or below the metropolitan median lot price. 40 per cent of LandCorp lots were sold at or below the regional median lot price. On-going challenges include developing consistent ways of defining land and housing affordability, building community support for all forms of affordable housing and creating affordable housing options that meet the needs of a diverse community with changing demographics. INDIGENOUS OPPORTUNITIES AND RELATIONSHIPS Commitment Our vision for reconciliation is to play our part in addressing the inequities or unacceptable gaps which exist between Aboriginal and Torres Strait Islander people and other Western Australians. We acknowledge the Traditional Owners of this country and respects the diversity of its first people. Many Aboriginal and Torres Strait Islander people face significant social and economic challenges and lack opportunity. Our land and infrastructure developments can provide foundations for healthy communities where Aboriginal and Torres Strait Islander people and other Western Australians 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 people. Approach Our Reconciliation Action Plan (RAP) formalises our management of commitments, targets and responsibilities over a nominated period of time. Our current RAP manages these targets from LandCorp s performance against these targets is reported on a six monthly basis via LandCorp s Executive and Board. Our final report on performance at the conclusion of a Reconciliation Action Plan is made available on our public website and the website of Reconciliation Australia. As our business has grown and evolved new opportunities for reconciliation have been identified and embedded into many of our diverse land and infrastructure developments across the State. In recent years, we have moved towards finding like-minded partners in our reconciliation journey and we will continue to seek others so we may collectively make a bigger difference by working together. Performance LandCorp s RAP divides actions and targets into the following categories: relationships, respect and opportunities. Performance results from are outlined overleaf.

60 OUR SUSTAINABILITY PERFORMANCE Relationships: We work closely with Aboriginal communities to make sure our developments are the highest standard. Through partnership and engagement with Aboriginal and Torres Strait Islander staff, contractors, consultants and people, we together create communities that can be vibrant and prosperous into the future. Targets: Implementation of a Reconciliation Action Plan (RAP). Establishment of a RAP working group to monitor development and implementation of actions. Celebrate Reconciliation Week, recognise and pay respects on Sorry Day. Consult with Traditional Owners on future development sites. Work with Traditional Owners on implementing current Native Title Agreements. Performance: All of our targets have been achieved or are on track. The major achievements against these targets include: LandCorp had endorsed a RAP for , developed with the engagement of staff and external stakeholders. As part of this, a staff RAP Working Group was established in October A bush tucker morning tea was held on 28 May 2015 to celebrate National Reconciliation Week. LandCorp consulted with Traditional Owners on future development sites. LandCorp has now reviewed 23 existing Native Title Agreements and is implementing improved processes as well as rectifying errors in payment calculations with Traditional Owners. Payments to Native Title claimant body corporates in accordance with over 20 different Agreements, totalled $415,842 in A further $4.14 million is being held in trust awaiting the relevant claimant groups advice of an appropriate fund for the payments to be made into. Respect: We recognise and support Aboriginal and Torres Strait Islander cultures and heritage. Our tangible appreciation and demonstration of respect for Aboriginal and Torres Strait Islander peoples helps to support positive relationships that are mutually rewarding, assisting us in our work to create strong communities and supporting Aboriginal and Torres Strait Islander peoples to be visible and involved community members. Targets: Meet all heritage statutory requirements, including offering site monitoring of works where cultural material may be detected or disturbed on site. Working with Traditional Owners to recognise Aboriginal heritage, culture and history. Work with local Aboriginal communities to identify Aboriginal names for streets and parks in selected LandCorp estates. Installation of Aboriginal public art projects. Provide staff with cultural awareness training. Recognise Traditional Owners at corporate and regional events through acknowledgement of country and welcomes to country. Celebrate NAIDOC Week. Performance: All of our targets have been achieved or are on track. The major achievements against these targets include: In consultation with the Yawuru people, our Broome Road Industrial Estate has now been renamed Warrgamburu Birragan. LandCorp is facilitating discussions with the Nyiyaparli and Martu peoples to provide relevant artwork and interpretation that speaks specifically for Newman Country. The significance of this opportunity is that it reunites traditional cultural management stories that were handed from the Traditional Owners (Nyiyaparli) to Traditional Custodians (Martu) at the time of people being dispersed through Country. The world-renown Martu artists have their old ones working with the Nyiyaparli old ones to develop the public works for proud display in the Newman Town Square. In addition, this process is being documented by film which will be displayed in the town squared digital screen at the opening and during other community and civil occasions. The artwork will be installed in the financial year. For Karratha City Centre we worked with the Ngarluma Aboriginal Corporation to ensure all artefacts were safely protected. At Lakeside Park and the foreshore of Kununurra, LandCorp at the request of MG Corporation facilitated the planning and installation of a bilingual plaque to commemorate and raise awareness about the historical significance of the site as a traditional camping ground for the Miriuwung people. LandCorp is working to improve cultural security for Aboriginal people by working with Aboriginal communities in selecting Aboriginal names for streets and parks within five of LandCorp s estates. 97 per cent of LandCorp staff who have been employed for more than 6 months have completed cultural awareness training. LandCorp s metropolitan team were given a talk by Kambarang Services about how the lives of Aboriginal people had been affected in the early years and what is needed to help improve the lives of Aboriginal people today in years to come. Three development managers have attended a weekend cultural awareness camp run by Yawuru Elders and Law bosses. This provided a more detailed understanding of Yawuru culture and has improved relationships.

61 COMMUNITY WELLBEING 61 Opportunities: We recognise the importance of creating opportunities for Aboriginal and Torres Strait Islander peoples through economic participation, including the need to invest in and promote leading edge skills; this investment also boosts our capacity and helps to foster important local relationships. Targets: Enhance the recruitment and retention of Aboriginal and Torres Strait Islander employees. Review LandCorp s Aboriginal and Torres Strait Islander Employment and Retention Strategy. Increase opportunities for businesses owned by Aboriginal and Torres Strait Islander people to supply their goods and services to LandCorp. Implement the LandCorp Civil Contractors Federation Guidelines for Aboriginal Participation in WA Civil Construction and Landscaping industries. Embed reconciliation related criteria into prequalification of suppliers. Develop and implement Aboriginal Participation Plans and other Aboriginal engagement initiatives. Create land development or other business opportunities to partner with Aboriginal companies. Identify and implement sponsorship opportunities. Performance: Some of these targets are at risk of not being achieved, however the major achievements against these targets include: LandCorp continues to be challenged in the area of Aboriginal and Torres Strait Islander recruitment and retention, although the internal employment rate has increased marginally since last year to 1.9 per cent. However our target continues to be 3 per cent. A review of our internal employment strategies has been undertaken, however whilst recruitment and backfilling of vacancies is at a standstill it is difficult to see this ratio improving in the near future. LandCorp has scoped opportunities for expanding employment pathways with CCI and has sought Aboriginal and Torres Strait Islander candidates through its graduate recruitment program. In June 2015 Waanga Marra Consulting was engaged to assist procurement develop an Aboriginal Business Register and deliver cultural training. The Framework has been developed and an implementation plan is currently being structured. A pilot program will be launched in Karratha early in the new financial year (2015/2016). This will also impact on the upcoming review of the Guidelines for Aboriginal Participation. Gunadar Contracting Services have been engaged in Roebourne to assist with cyclone preparation and ongoing landscape maintenance. They are a new Aboriginal owned business and it s the first time they have undertaken LandCorp work. Most of LandCorp s AS2124 Standard Contracts include weighted criteria for Aboriginal Participation in the evaluation of procurement contracts. However we are discovering the weighting is having little impact on outcome. In conjunction with the Civil Contractors Federation, LandCorp has commenced a survey of the civil construction industry across Western Australia to gauge progress on Aboriginal engagement, particularly in the context of the downturn. Feedback from this survey will inform how we work together on improving sustainable Aboriginal engagement across industry. As part of LandCorp s overall sponsorship program, LandCorp provided $60,000 to Clontarf Academies across the State. This money is used on programs which encourage the children to finish year 12 and look towards meaningful employment options. Smoke burning ceremony

62 OUR SUSTAINABILITY PERFORMANCE Newman Town Centre Artist impression for illustrative purposes only. Newman Town Centre Funded by $20 million from Royalties for Regions under the State Government s Pilbara Cities initiative, LandCorp is working with the Shire of East Pilbara to revitalize the Newman Town Centre. The project will transform the town and deliver an attractive, family friendly meeting place designed for the Pilbara environment featuring shade structures, trees, seating, public art and pop-up market stalls or modular retail stalls. LandCorp, through our landscape architect, engaged the Nyiyaparli and Martu peoples to provide relevant artwork and interpretation that speaks specifically for Newman Country as part of the public art initiative, community building and place making. The significance of this opportunity is that it reunites traditional cultural land management stories that were handed from Traditional Owners (Nyiyaparli) to Traditional Custodian s (Martu) at the time of people being dispersed through Country. The world renowned Martu artists have their old ones working with the Nyiyaparli old ones to develop the public works for proud display in the Newman Town Centre. It is therefore a genuine reconciliation opportunity in terms of reconciliation of the two parts of the story, reconciliation of two ancient cultures and then bringing that story to the general community of Newman with respect for the cultural heritage. This process is being documented by film which will be displayed on the town square s digital screen at the opening and during other community and civic occasions.

63 ECONOMIC HEALTH 63 ECONOMIC HEALTH ECONOMIC DEVELOPMENT Commitment We are committed to investing in, and realising the potential of land and infrastructure to support economic growth and the creation of social and economic development opportunities. We realise that through our industrial and commercial land and infrastructure development we have an important role in maintaining and growing industry, business and employment, while our development in activity centres and residential land creates communities close to employment centres and transport hubs. Approach LandCorp invests in land and infrastructure to support the economic development of metropolitan and regional communities. Investing in, and realising, the potential of land and infrastructure for the creation of economic and social development opportunities can have positive indirect economic impacts including reducing costs, increasing productivity, creating new business opportunities and employment. LandCorp has an integrated approach to the delivery of land and infrastructure across metropolitan and regional Western Australia for residential, commercial and industrial uses. This supports the creation of developments which mix residential and commercial uses and residential developments located close to employment centres or transport infrastructure. Performance During LandCorp continued to support economic development through its land and infrastructure development. To better understand the impact of our delivery of economic and employment land LandCorp has analysed the employment and economic output of several of its heavy and general industrial and commercial estates. Based on this research LandCorp has developed a formula to estimate the employment and economic output of industrial and commercial land. Using this model, in LandCorp s sales of industrial and commercial lots are expected to help generate the economic benefits outlined in the below table: LOT TYPE Low density and/ or heavy/special industrial estates Medium density and general industry estates High density and service industry No OF LOTS SOLD AND AREA 5 Lots Area 41,204sqm 55 Lots Area 277,241sqm 7 Lots Area 11,778sqm No OF BUSINESSES EMPLOYMENT ECONOMIC OUTPUT (value of goods and services) 0.4* 16 $11.5 million $194.1 million $17.7 million * 5 lots are likely to accommodate more than one business, but these figures are purely based on the average number of businesses per hectare of low density and/or heavy/special industrial land. LandCorp s delivery of activity centres and urban infill supports the State Government target for Perth and Peel to deliver 47 per cent of new dwellings via urban infill development. Importantly this policy seeks to reduce urban sprawl and maximise the use of existing infrastructure. In the metropolitan area in , 66 per cent of the dwelling unit equivalents created by LandCorp were via urban infill developments. LandCorp is completing town centre revitalisation works in a number of regional centres and this involves replacing and upgrading infrastructure on a commercial basis with funding provided from the State Government s Royalties for Regions. In LandCorp s development of town centre and other infrastructure included: The construction of Karratha Terrace West, from Sharpe Ave to Balmoral Road, as part of the Karratha City Centre Infrastructure Works Stage 1 (Main Street); the completion of landscape works and the internal refurbishment works at the new Karratha Family Centre; Newman Town Centre Stage 3 works; project managing the revitalising of the Morawa Town Centre and town square as part of the SuperTowns initiative; and irrigation pipe rectifications works for the Ord East Kimberley Expansion Project enabling the newly irrigated area to be planted with its first crop.

64 OUR SUSTAINABILITY PERFORMANCE MARKET LEADERSHIP AND INNOVATION RESEARCH Commitment Gathering and interpreting relevant information is crucial to assist LandCorp in achieving its strategic objectives. Providing LandCorp s Board, Executives and staff with up-to-date information, insights and analysis enables evidence-based strategic decision-making, ensures relevant and appropriate outcomes, and improves LandCorp s overall performance. Approach and performance LandCorp s in-house research supported the organisation by providing regular reporting and other primary and secondary research activities to assist our decision-making. This included: Monitoring and reporting on residential and industrial property sales trends; providing sales forecasts; monitoring relevant economic, population and other trends and interpreting their impact on LandCorp s operations; locality scans (in-depth analysis of population/property trends in specific areas); potential purchaser, customer, stakeholder and community consultation research; best-practice, benchmarking and innovation research; and internal staff surveys. In addition, LandCorp forms strategic research relationships with universities, institutions and peak bodies to share knowledge and address common industry challenges and opportunities. RESEARCH FINDINGS: COMMUNITY ATTITUDES TOWARDS HOUSING DENSITY IN PERTH CHANGES BETWEEN LandCorp commissioned a repeat of a quantitative survey conducted in 2011 in order to understand changes in community attitudes towards housing density over the last three years. An independent fieldwork agency conducted telephone interviews with 398 people in the Perth metropolitan area in November The findings showed increasingly positive attitudes towards higher density housing, and less acceptance of continuing urban sprawl. Compared to 2011, in 2014 there was more agreement that Perth was too spread out (49 per cent up from 42 per cent). In 2014, there was significantly more support for apartment buildings being built in the Perth metropolitan area compared to in 2011, particularly for lower building heights of 3-4 storeys (80 per cent support, up from 71 per cent). Close to half of Perth residents said they would consider living in an apartment at some point in their lives, and ideally preferred apartment buildings to be located close to train stations and shopping/ entertainment precincts. To meet the challenge of accommodating Perth s future population growth, Perth residents were more likely to support increasing the amount of innersuburb redevelopment (47 per cent) over greenfields development in outer suburbs (31 per cent). One in five supported a mix of both strategies. This research revealed that there is an increasing understanding that Perth cannot continue to spread out indefinitely, and increasing support for higher-density housing and the redevelopment of existing inner areas to accommodate future population growth. These findings are highly relevant to LandCorp and will be used to guide the development of future higherdensity/apartment developments. Findings have been circulated to all staff, and the findings will be used throughout the business, and shared with other Government agencies. Cockburn Central Town Centre

65 MARKET LEADERSHIP AND INNOVATION 65 STRATEGIC RESEARCH RELATIONSHIPS RESEARCH PARTNERSHIP COMMITMENT Australian Urban Design Research Centre (AUDRC) and LandCorp Memorandum of Understanding (MoU) ( ) for urban design research ($50,000 commitment per year, over three years). The MoU provides opportunities for improved design outcomes for projects through research and development in the areas of affordable housing, urban design and integrated infrastructure systems. In addition post graduate students get a more detailed understanding of industry challenges and the significant decisions that need to be made through the lifecycle of real development projects. Healthy Active By Design (HABD) - LandCorp has commitment to sponsor the HABD tool ($22,000 per year , $10,000 per year ). The leader is the Heart Foundation in alliance with other Government Agencies and the University of Western Australia. Co-operative Research Centre (CRC) for Water Sensitive Cities (WSC) - is a nine year national research program. LandCorp is a contributing partner and have committed 50,000 per year for three years ( ). CRC for Low Carbon Living - LandCorp has committed $15,000 for the Pilbara Vernacular performance project (August 2014 to late-2015). CRC for Low Carbon Living / Curtin University Sustainability Policy (CUSP) / Josh Byrne and Associates/ City of Fremantle. LandCorp has committed to a $60,000 contribution over five years ( ) for a living laboratory research program to monitor the performance of the water and energy efficiency initiatives and share the findings with industry across Australia. CRC for Low Carbon Living / CUSP / CSIRO - LandCorp agreed for the trial of solar power in a shared strata setting to take place on the Gen Y Demonstration Housing Project, as well as the purchase of the batteries and solar PV cells required for the trial (approximately $50,000 one-off investment) ( ). Other partners include Balance Group and Solar Balance. Water Corporation / Josh Byrne and Associates - LandCorp has committed to install community bore and purple pipe system for subsurface irrigation of all gardens (public and private), irrigation of POS at WGV in White Gum Valley. Other partners City of Fremantle, Department of Water, potentially CRC for Water Sensitive Cities. UWA Cool Earth Research Relationship MoU with project partners, ABN, Geoexchange, Carbonomics and UWA. Contract for a UWA two year research grant for $32,000. CHALLENGE/ FOCUS AREA Will provide a greater focus on integrated precinct scale urban design. This will allow very specific design challenges for urban infill sites in older post-industrial suburbs to be investigated. Healthy Active by Design tool informs the design of communities that support and promote healthy and active living. The research is focused on how to make Australian cities and towns more water sensitive, resilient and healthy. To understand and communicate the suitability and performance of the new Pilbara Vernacular Demonstration House. To address the challenges around carbon emissions, energy use and management the CRC LCL is a national research and innovation hub that seeks to enable a globally competitive, low carbon built environment sector. Resolves issues surrounding shared PV/battery systems in strata titled development, including metering, billing, invoicing, investor additional income, owner/occupier reduced operating costs, will also be a trial of the very latest LiFePO4 safe battery technology and associated equipment. Focusing on the challenges around water, including monitoring of bore usages, scheme water usage, take up of initiatives, resident behaviour, education, promotion of waterwise development by using WGV as an exemplar. Testing the potential for geothermal, ground source heatpump to supplement electricity use for domestic household heating and cooling, save money and reduce impacts on peak load.

66 OUR SUSTAINABILITY PERFORMANCE USE OF INDUSTRY ACCREDITATION AND ASSESSMENT TOOLS Commitment We are committed to using thirdparty industry sustainability accreditation and assessment tools to guide our project planning and monitor and assess project performance. By adopting industry accreditation and assessment tools, we can better evaluate and report quantifiable positive legacy impacts from an industry benchmark. Approach and Performance LandCorp has been using Precinx, a modelling and decision making tool used in the planning and design phase of a development project to assess performance across a range of key indicators including energy, carbon, water and transport and their impact on affordable living. The model allows for different energy, water and transport scenarios to be modelled and the resultant impacts on water use, electricity and carbon emissions and costs of living compared with business as usual (statutory compliance) base case. Projects which have used Precinx include WGV at White Gum Valley, the Jolimont nursery site, Shenton Park, and Knutsford Depots sites (investigating potential opportunity). LandCorp has adopted the use of the following industry accreditation and assessment tools: The Green Star Communities rating tool is the Green Building Council of Australia (GBCA) rating tool covering five key categories of Environmental, Economic, Liveability, Design, Governance and Innovation. EnviroDevelopment is the Urban Development Institute of Australia s National compliance based rating tool, which consists of six elements or leaves of Ecosystem, Waste, Energy, Materials, Water and Community. One Planet Living (OPL) is a Sustainability Framework developed by Bio Regional an international not-for-profit body. The OPL Framework includes 10 key principles of: Carbon, Waste, Water, Materials, Transport, Food, Ecology, Economy, Health and Culture. LANDCORP S ADOPTION OF INDUSTRY ACCREDITATION AND ASSESSMENT TOOLS ACCREDITATION AND ASSESSMENT TOOL TARGET PERFORMANCE Alkimos Beach, in partnership with Lend Lease, to seek Green Star Communities Pilot v1 certification, targeting 6 stars. Alkimos Beach, in partnership with Lend Lease, to seek EnviroDevelopment certification, targeting 6 leaves. The Rockingham Industrial Zone is targeting at least four elements of the EnviroDevelopment certification. WGV at White Gum Valley Innovation through Demonstration project to adopt the of One Planet Living (OPL) Sustainability Framework. Shenton Park has committed to using the Green Star Communities Rating Tool. Alkimos Beach was awarded a 6 Star Green Star Communities rating in March Alkimos is the first project in Australia to be awarded 6 star rating which is equivalent to World Leadership. Alkimos Beach was recertified for all six elements (Ecosystem, Waste, Energy, Materials, Water and Community). The submission of the Rockingham Industry Zone is progressing with July 2015 submission. The WGV project achieved National Recognition for its application of the One Planet Living framework in June It is the first project in WA to achieve national recognition. The Shenton park project is in early stages of planning and identifying opportunities to address Green Star Communities criteria.

67 MARKET LEADERSHIP AND INNOVATION 67 The Vive: Cool Earth Project Artist impression is for illustrative purposes only. DEMONSTRATION AND INNOVATION Commitment We endeavor to demonstrate innovation in the land development industry, providing leadership in overcoming common challenges, introducing efficiencies and achieving development and policy goals in new ways. Approach LandCorp has had a focus on Innovation through Demonstration over several years. To further demonstrate commitment to addressing industry challenged LandCorp has established an innovation fund (up to 1 per cent of previous year sales) that will be available in The fund will support the implementation and realisation of development related innovation projects. Innovation projects will target key industry challenges and have strong alignment to LandCorp s significant and important material issues. The fund will also focus on demonstration projects that can facilitate uplift in sustainable development outcomes to improve and enhance value for communities and de-risk initiatives for the private sector. Performance Existing innovation projects include: Cool Earth Project (see energy section); the WGV precinct and Gen Y Demonstration Housing Project in White Gum Valley; and demonstration of the Pilbara Vernacular.

68 OUR SUSTAINABILITY PERFORMANCE WGV AT WHITE GUM VALLEY The WGV development on the former Kim Beazley School site in White Gum Valley has come a long way since its inception. Following discussions with the Department of Education in 2002, LandCorp s involvement began in earnest when the school closed in 2008 and preliminary site investigations commenced. The preliminary site and context study that was undertaken at that time revealed a number of unique characteristics and opportunities that paved the way for a different approach to planning and design and helped to establish a number of key objectives which set the development on a path towards sustainable development demonstration from the outset. As the project evolved and went through the planning process LandCorp consulted widely with the local community, the City of Fremantle and stakeholders to ensure that the vision for WGV captured the needs and aspirations of the community as well as the key objectives of the local and State Government. This allowed the community and key stakeholders to contribute to the design process and provided the opportunity to resolve issues in an integrated and balanced way. LandCorp engaged a multidisciplinary team of consultants to assist with the development of an aspirational plan for a diverse and sustainable precinct. Central to the philosophy for WGV was a focus on integration of the new development with the surrounding area and the provision of diversity and amenity for the new and existing community along with climate responsive design and efficient energy, water and waste management. During the planning process additional resources were allocated to the project which enabled significant aspects of the concept design to be tested through 3D modelling, sustainability analysis and urban and built form design review. The result is a project that will not only showcase high-quality urban infill but will also demonstrate a range of innovative built form, landscape and sustainability outcomes in line with the principles of One Planet Living. In 2014 the WGV Structure Plan was approved by the City of Fremantle and the WAPC. While the project was going through the approval process, WGV began to attract considerable attention from industry, Government agencies and research bodies, which have since developed into new partnerships and opportunities for collaboration. Key initiatives that have been integrated into the development are listed overleaf. WGV at White Gum Valley Artist impression for illustrative purposes only.

69 MARKET LEADERSHIP AND INNOVATION Gen Y Demonstration Housing Project The Gen Y Demonstration Housing Project came about in 2013 when an opportunity to do something a bit different was identified on Lot 7 at the entry to the WGV development. A 250sqm site adjacent to the stormwater sump posed some challenges for a standard house in that it was reasonably small and a bit isolated from the other single residential lots. From 2013 to 2014, a design competition was undertaken with a brief to investigate the living requirements of Gen Y and to design a cost effective housing solution. The winning design by David Barr Architect, provided a compact cost efficient design incorporating three integrated but entirely independent one bedroom apartments with private courtyard or terrace as well as access to a central communal space and outdoor amenities. The lightweight construction and innovative design has attracted a lot of attention from industry with more than 10 building material suppliers coming on board to sponsor the project. In addition LandCorp has partnered with the Disability Services Commission to demonstrate how the principles of Liveable Housing can be incorporated into new homes to provide more flexibility and accessibility for future residents. The integration of this initiative has resulted in simple changes to the design during the documentation phase to include accessibility considerations such as widened doorways, smooth transition at entry points, and provision for future installment of handrails in bathrooms. This design essentially allows for ageing in place and accessibility for a range of abilities. Through energy efficient design, use of renewable energy and innovative technologies, WGV aims to reduce its grid energy by 60 per cent. 2. Energy and PV Battery Storage Trial Through energy efficient design, use of renewable energy and innovative technologies, WGV aims to reduce its grid energy by 60 per cent. Key initiatives include climate responsive design principles being employed in the concept plan for the development as well as a range of energy efficiency measures in design guidelines. A four-year research project to be undertaken by Curtin University in collaboration with the CRC for Low Carbon Living will see WGV become a living laboratory. This project will involve monitoring and assessing how energy efficient design, technology performance and occupant behaviour impact on the carbon footprint of the precinct. One of the most exciting initiatives involves the installation of a 9kW PV system and battery storage on the roof of the Gen Y Demonstration Housing Project. The energy generated by the system will be shared across all three apartments and energy use will be monitored over a two-year period. This research will also involve the development of a governance structure and monitoring of energy use through a sophisticated system that also includes water and gas monitoring.

70 OUR SUSTAINABILITY PERFORMANCE A key feature of the water saving initiatives is a community bore which will be installed in an area of public open space. The bore will provide a source of non-potable water for garden irrigation at a precinct scale. 3. Water Corporation Exemplar Water efficiency is central to the innovative approach in WGV. By maximising natural resources, implementing water sensitive urban design and water efficiency measures WGV aims to achieve a 70 per cent reduction in mains consumption. A key feature of the water saving initiatives is a community bore which will be installed in an area of public open space. The bore will provide a source of non-potable water for garden irrigation at a precinct scale. In addition, an innovative stormwater retention and reuse strategy incorporating a stormwater pit which feeds into pipes around tree root systems will be trialled to increase soil moisture content and support tree growth in community spaces. Water efficiency measures are included in the WGV design guidelines such as dual plumbing and plumbed water tanks provide a supply of water for non-drinking uses. These initiatives will ensure that WGV makes smart use of water resources and becomes an exemplar of water wise infill development. Civil works are nearing completion and construction of the Gen Y Demonstration Housing Project will commence in late-july The project has exceeded LandCorp s expectations in that it is not only on track to meet the original objectives, but has also evolved in scale and ambition to include a host of additional industry leading innovation initiatives. This has come about as a result of extensive collaboration with key stakeholders, consultants, industry, local government and the community, with each of these groups playing a big part in building the vison. Our hope is that WGV at White Gum Valley will become a flagship for future infill development and that the numerous sustainability initiatives that have been integrated into it will encourage others in the industry to pursue more sustainable forms of development for the future. The WGV Case Study and factsheets are available at landcorp.com.au/wgv WGV at White Gum Valley Artist impression for illustrative purposes only.

71 MARKET LEADERSHIP AND INNOVATION 71 DEMONSTRATION OF PILBARA VERNACULAR - HANDBOOK AND DEMONSTRATION HOUSE The Pilbara Vernacular Handbook recognised the need for clear guidelines to help develop and shape the built environment and public realm in the Pilbara. That is, development which reflects local needs, available construction materials and draws inspiration from regional specific architectural traditions. By clearly defining the design principles and providing guidance on how each can be achieved, the Pilbara Vernacular Handbook acts as a road map for the sustainable development of the Pilbara s built environment over future years. The handbook provides guidance for architects, builders, developers, existing and potential home owners. The Vernacular Handbook complements the State Government s Pilbara Cities vision to create places where people choose to live on a permanent basis; places to bring up families with access to high standards of education, health and diverse employment and career opportunities; and an appropriate built environment. However, the initiative is more than just a written guide, it has been brought to life through a range of measures including a design competition and the construction of a demonstration home. The Pilbara Vernacular has been successful in both changing thinking and actual building design and construction in the Pilbara. The result so far has been an increasing number of new buildings in the Pilbara which reflect and embrace the vernacular s design principles - buildings which respond to and reflect the climate, enhance liveability whilst incorporating the natural landscape and building on the existing character and identity of the region. The Pilbara Vernacular body of work has resulted in: Development of the Pilbara Vernacular Handbook; development of complementary guidelines for Madigan at Baynton West estate; application of vernacular principles to the Madigan at Baynton West display village; and the running of a demonstration house design competition to generate three designs for a Pilbara Vernacular inspired house, followed by the construction of one of the competition designs building a demonstration home with full application of the Pilbara Vernacular principles. The performance of the Pilbara Vernacular Demonstration Home (completed in August 2014) is currently being monitored via an online electronic monitoring of climate passive building performance, water consumption, external and internal temperature, energy usage and renewable energy generation. In addition the Demonstration Home is being assessed by the CRC Low Carbon Living. This performance information will be available in 2016 and subsequently disclosed through our sustainability reporting. The Pilbara Vernacular Demonstration Home was included in Josh Byrne s (environmental scientist and well known ABC TV Gardening Australia presenter) Star Performers online video series. During 2014 the Pilbara Vernacular Handbook received a national commendation in the PIA National Award ceremony. In May 2015 the Pilbara Vernacular Demonstration Home was acknowledged with two top Master Builders WA Awards. In July 2015 it also received a Commendation by The Australian Institute of Architects WA as part of the residential (New Houses) category. The success of the initiative to date has also resulted in the development of the Kimberley Vernacular which applies the same design principles within a Kimberley context and will soon be rolled out in the State s north. Pilbara Vernacular Demonstration House

72 OUR SUSTAINABILITY PERFORMANCE INTERNAL BUSINESS PRACTICES HEALTH, SAFETY AND WELLBEING Commitment The health, safety and wellbeing of staff is 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). Approach and performance LandCorp operates within the guidance of Occupational Safety and Health Australian and New Zealand Standard LandCorp encourages employees to discuss Occupational Safety and Health (OSH) issues with the OSH manager for consideration and remediation if required. Our joint managementworker health and safety committee meets quarterly to discuss health and safety issues. It consists of representatives from all divisions as well as managers and a general manager (9per cent of LandCorp s total workforce is represented). Committee members commit to a minimum 12 month tenure before nominating a new member. Our incident management system called MyOSH 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, as well as related to our development projects, and contractors. Incidents and accidents are reported to management within 24 hours and escalated in accordance with risk categories. Safety reports are reviewed by Executive monthly and the operational division managers group weekly. The Board receives monthly reports and immediate notification of all serious category five incidents. In addition, we undertake quarterly internal audits and inspections, and an annual third party OSH audit and Worksafe Plan Audits. LandCorp does not have formal agreements with trade unions, and contractor involvement with trade unions is at their discretion. As such, we do not influence the health and safety topics covered within these agreements. LandCorp s OSH performance is outlined in the table below. The continuous improvement in OSH culture, policies and procedures has culminated in LandCorp receiving a highly regarded Gold Worksafe Accreditation in June The Worksafe accreditation is administered by the Department of Commerce, WorkSafe Division and is specifically for organisations under the jurisdiction of Western Australian safety and health legislation. Gold Certificates are only awarded to organisations demonstrating excellent progress towards a best practice approach to safety and health management. LandCorp is one of only seven Government organisations to receive a Gold Worksafe Accreditation over the last five years. LandCorp is aiming to further improve performance by working towards a Platinum Worksafe accreditation. LANDCORP OSH PERFORMANCE INJURY RATE ABSENTEE RATE OCCUPATIONAL DISEASE FATALITIES NOTE: Minor first-aid injuries have not been included. Pilbara Vernacular Demonstration House

73 INTERNAL BUSINESS PRACTICES 73 A comprehensive Health and Wellbeing Survey was conducted with staff in early 2015, with 140 staff members (70 per cent) completing the survey. Results from the survey, as well as recent staff health checks could give LandCorp the opportunity to be recognised as one of WA s 10 healthiest organisations through HBF s Corporate Wellness Index. Our goal moving forward is to create a participative and innovative workplace wellness program for all staff that is tracked with measurable outcomes to help demonstrate the effectiveness of workplace wellness each year. Health and wellbeing initiatives in included: Quarterly 101 Health and Safety information sessions; re-introduction of corporate sports; initiation of a trial for sit-to-stand hot desks which have been set up on each floor of LandCorp s office, and the initiation of a Exercise Tracker Study for a group of LandCorp staff, encouraging participants to exercise and move around more throughout the day. In , LandCorp will be concentrating on mental health, obesity and risks from prolonged sitting by: Continuing the sit-to-stand hot desk trial; continuing to provide a fitness subsidy to encourage involvement in a healthy lifestyle, as well as continuing the exercise tracker study, monitoring the results and considering a roll out to the entire orgainsation; and continuing to hold a RUOK Day morning tea every year in September and also give employees access to a free Employee Assistance Program (EAP). The EAP is an external support and counselling service provided on a commercial basis to assist employees in times of distress, loss or personal problems. A recent report on the mental and physical health trends of Australian workers found psychological and physical health of Australian workers deteriorating, and the need to address these concerning trends. LandCorp will be paying special attention to metal health in 2015 and beyond. This year our Health and Safety month will be entirely focused on workplace resilience. LandCorp will be holding seminars and training, including session from the nationally recognised suicide prevention group Mates in Construction, as well as guest presenters on the art of meditation and stress relief techniques. EMPLOYEE ENGAGEMENT AND SATISFACTION Commitment We are committed to workplace harmony, productivity and achievement through an engaged workforce. Employee engagement and satisfaction is critical to the successful delivery of our corporate strategy and projects, and our contribution to Government priorities. Approach Employee engagement extends throughout our human resources management approach. LandCorp undertakes profiling to ensure a behavioural fit with our corporate values, measures engagement through a formalised performance management and performance assessment process, and provides learning, professional development and promotion opportunities to ensure an engaged and challenged workforce. We also conduct staff surveys and entry and exit interviews to gauge employee feedback. LandCorp also provides other forums for consultation such as the Culture Club and Social Club, made up of staff representatives to add to employee engagement. Employees may elect to join the Western Australian Land Authority and Community and Public Sector Union Enterprise Agreement 2011 for LandCorp employees. LandCorp operates in Australia and as such Australian law defines superannuation contributions from employers. LandCorp adheres to these requirements.

74 OUR SUSTAINABILITY PERFORMANCE Performance As at 30 June 2015, LandCorp had 212 employees, a reduction from 224 employees (as at 30 June 2014). The below three tables illustrate the key characteristics of the workforce. TOTAL WORKFORCE BY EMPLOYEE CONTRACT AND GENDER (AS OF 30 JUNE 2015) 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 TOTAL WORKFORCE AND BOARD BY JOB CLASSIFICATION AND GENDER (AS OF 30 JUNE 2015) JOB CLASSIFICATION TOTAL NUMBER OF EMPLOYEES FEMALE MALE TOTAL Board Senior management Middle management Professional Other Total TOTAL WORKFORCE AND BOARD BY JOB CLASSIFICATION AND AGE GROUP (AS OF 30 JUNE 2015) JOB CLASSIFICATION TOTAL < >50 Board Senior management Middle management Professional Other Total

75 INTERNAL BUSINESS PRACTICES 75 During LandCorp had a staff turnover rate of 7.5 per cent and staff retention rate of 92.5 per cent. A challenge for LandCorp will be retaining talent at the five to seven year tenure point. All LandCorp employees (100 per cent) received a regular performance and career development review during Our turnover and new employment hire results are outlined below. TOTAL NUMBER AND RATE OF LANDCORP EMPLOYEE TURNOVER BY AGE AND GENDER (AS AT 30 JUNE 2015) TERMINATIONS No OF STAFF RATE AGE MALE FEMALE MALE FEMALE MALE FEMALE Under % 0.0% % 7.8% Over % 4.8% Total % 5.9% Note: All voluntary LANDCORP NEW EMPLOYMENT HIRES IN BY AGE AND GENDER (AS AT 30 JUNE 2015) No OF STAFF AGE MALE FEMALE Under Over Total 4 5 LandCorp s Culture Club, made up of staff representatives from across the business, launched a new peer recognition platform called WooBoard in June It provides a social way to recognise and celebrate each other s achievements every day, in a transparent and meaningful way where recognition can come from anyone. The initiative attempts to build a culture that puts recognition, appreciation and people first, promotes our values, and increases positive engagement. The uptake has been extremely positive with 179 users registering into the system and an average of 200 posts per month being made to recognise individual, team and functional achievement. WORKPLACE GIVING In 2014, LandCorp staff set a challenge to raise $30,000 to sponsor a Guide Dog; inspired by fellow LandCorp employee Kate, and her Guide Dog Lucy. Our fundraising efforts included a Work Place Giving program which consisted of seven months worth of fortnightly voluntary salary deductions comprising $8,000 of the total. The initiative served to highlight the generosity of staff with 29 per cent of staff involved in the program (well above the WA average of 16 per cent). A team of 28 employees then created their own fundraising event, The Good Ride, raising awareness and encouraging the community to donate as they rode their bicycles over 200km from Perth to Bunbury in just one day raising $24,330 for the Guide Dogs. After reaching our target, LandCorp held a staff poll to choose the puppy s name. The selected name, Landy, was announced at our quarterly staff meeting, where Landy himself and representatives from Guide Dogs WA were special guests. In 2015, our goal is to raise $20,000 for Dreamfit Foundation. Dreamfit is a locally-based, not-for-profit grassroots organisation specialising in making dreams possible for people with disabilities. They do this by designing and building custom equipment to overcome the physical limitations faced by children and adults with disabilities, enabling them to participate in activities that simply would not be possible otherwise. The funds raised will be for Dreamfit to undertake the research and development work necessary to mass produce what is currently a prototype bungy trampoline to improve muscle tone and coordination for those children confined to wheelchairs. The donation would also cover the establishment of a program to make further units available through grants and the National Disability Scheme. So far the Work Place Giving program has raised $ (from 1 March 2015 to 30 June 2015) for Dreamfit.

76 OUR SUSTAINABILITY PERFORMANCE DIVERSITY, INCLUSION AND EQUAL EMPLOYMENT OPPORTUNITY Commitment We believe that diversity of skills, experience, knowledge, culture and social backgrounds adds value to the workplace. Diversity ensures LandCorp optimises the diverse backgrounds, skills, talents and perspective of its entire workforce positively contributing to employee engagement, organisational effectiveness, and customer and stakeholder relationships. Approach LandCorp have diversity targets that we work towards with a particular focus on employment of Indigenous Australians, people with disabilities and females in senior roles. We continue to build relationships with several diversity focused recruitment and support groups to actively seek diversity candidates. We also actively manage and partner with disability support groups to determine the needs and approaches to best support and retain diversity candidates in the workplace. Performance against diversity targets are reported to the Executive group on a quarterly basis with ongoing updates on progress against activities. There is a focus on equal employment opportunity and diversity through our online learning and development program to build greater awareness of, and support to, a diverse workforce. In addition we have mandatory cultural awareness training for all staff. Performance LandCorp has slightly increased performance against its diversity targets since (see below). However with tighter fiscal conditions, reduced hiring activity and a focus towards consolidating or reducing overall headcount through natural attrition, the ability to direct employment to meet diversity targets was limited. LANDCORP S DIVERSITY TARGETS AND ACTUAL PERFORMANCE TARGET (%) PERFORMANCE AT 30 JUNE 2015 (%) Woman in management* (%) Aboriginal Australians (%) People with disabilities (%) *Woman in management is the percentage of females in the senior leadership group FEMALE SALARIES AS A PERCENTAGE OF MALE SALARIES BY JOB CLASSIFICATION SALARY LEVEL FEMALE SALARIES AS A PERCENTAGE OF MALE SALARIES BY JOB CLASSIFICATION Senior management 97% Middle management 94% Professional 96% Other 99% Note: Using FTE salary In June 2015, LandCorp selected two high performing employees to undertake the Women in Property mentoring program, both employees are now involved in the program as an investment in their career development. As at 30 June 2015, 95 per cent of staff had been trained in cultural awareness.

77 INTERNAL BUSINESS PRACTICES 77 STAFF TRAINING AND EDUCATION Commitment We are committed to training and development to enable continual professional growth to meet current and future skill requirements a practice which benefits our workforce as well as our business and is a point of difference in competing for talent. Approach Learning and development continues to be available through Performance LandCorp s study assist program, learning and development framework, specific Future Leaders Program, and selective career outplacement services in cases where employees need support. LandCorp is strengthening commitment to learning and launched an online learning framework in April The framework brings together internal and external learning and development activities into a centralised learning management system. In addition, the framework includes a catalogue of e-learning courses comprised of both mandatory and elective courses with over 60 online courses now available across all employee levels. This is in addition to ongoing external training via industry associations and external bodies, and LandCorp s study policy which part funds selected tertiary level learning. AVERAGE LANDCORP STAFF TRAINING HOURS JOB CLASSIFICATION MALE (AVERAGE TRAINING HOURS) FEMALE (AVERAGE TRAINING HOURS) TOTAL (AVERAGE TRAINING HOURS) Senior management Middle management Professional Other Total COMPLETION RATES OF MANDATORY LEARNING MODULES MANDATORY LEARNING MODULES % OF STAFF THAT HAVE COMPLETED THE MODULE (AS AT 30 JUNE 2015) Accountable & Ethical Decision Making 98 Diversity at LandCorp 98 Equal Opportunity 99 Orientation 98 OHS Induction 99 Sustainability awareness module To be delivered late 2015 In May 2015, 16 LandCorp staff members identified as future leaders successfully completed an internal Certificate 4 in Frontline Management qualification. The program enjoyed a success rate of 100 per cent completion with each participant receiving a nationally accredited Certificate 4 in Frontline Management and was a significant investment in the skilling of potential future leaders. In addition, project management training was run from September 2014 until June staff attended the three day project management course for operations project staff, and 59 staff attended the one day course aimed at non-operations project staff.

78 OUR SUSTAINABILITY PERFORMANCE GOVERNANCE AND RISK Commitment LandCorp is committed to a high standard of corporate governance and risk management where our decisions and actions are: consistent with our legislation and policies; responsive, effective, equitable, and are transparent and accountable. We aspire to be an organization which achieves its goals using an adaptive, collaborative, respectful and ethical approach. Approach and Performance Our Annual Report should be consulted for comprehensive information on our governance approach and our performance. LandCorp s Code of Conduct provides guidance on a practical set of principles that reflects our approach to business conduct and decision making processes for anyone working for or on behalf of LandCorp, including the Board, Executive, staff and internal contractors and internal consultants. LandCorp s Project Procedures Manual underwent significant updating during The Procedures Manual outlines the process steps that need to be undertaken throughout the lifecycle of a project. It is the mechanism by which LandCorp ensures consistency and accountability in the planning, design, management and implementation of land development projects. LandCorp adopts a risk-based, precautionary and proactive approach to our operations, with zero tolerance to fraud and corruption. LandCorp manages risk 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 (including accountable and ethical decision making training); directors and officers liability insurance risk assessments; corporate risk register, and a series of policies. LandCorp s risk management commitment is demonstrated across all levels of management and staff. Risk management is addressed via an organisation wide methodology, with integration into practices and systems to ensure a consistent, standardised, scalable and focused risk management framework consistent with AS/NZS ISO 31000:2009 Risk Management Principles and Guidelines and the Western Australian Government Risk Management Guidelines. Risk management assessments at LandCorp are carried out at three levels: strategic, operational and project risk assessment. 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 our project management system) 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. As at 30 June 2015, 98 per cent of staff had been trained in LandCorp s anti-corruption, policies and procedures. LandCorp adopts a risk-based, precautionary and proactive approach to our operations, with zero tolerance to fraud and corruption.

79 INTERNAL BUSINESS PRACTICES 79 OFFICE SUSTAINABILITY Commitment We are committed to providing staff with environmentally friendly workplaces that are healthier and more productive. Approach Our Office Sustainability Group champions energy efficiency, recycling, and sustainable transport behaviors. The Perth office refurbishment to 4 star Greenstar Office Interiors standard resulted in a step-change improvement in office waste recycling and energy and water efficiency. The focus of this group will be to increase consciousness of sustainability related behaviors as they relate to our work practices and behavior in the office and at home. Performance The total energy consumed by LandCorp Head Office tenancy (2,761sqm) was 261,972kWH in This was 100 per cent 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. 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 was 73,410.03kgs CO 2 -e (calculated emissions) (117,184kgs CO 2 -e in ). Recycling bins are in the kitchens on each of the head office floors (levels three, four, five and six). Office recycling collected during totalled tonnes (10.9 tonnes in ). See table below for a breakdown of recycled materials Paper/cardboard 7.63 tonnes 7.06 tonnes Glass tonnes 0.50 tonnes Soft plastic tonnes 0.50 tonnes Aluminum 1.09 tonnes 1.01 tonnes HDPE/PET 1.09 tonnes 1.01 tonnes Total 10.9 tonnes tonnes The chart below shows the water savings, energy savings and greenhouse gas savings of the recycling initiative. Summary Recycling Benefits - Annual Savings Number Actual Water Savings (Domestic sized pools) Actual Energy Savings (Annual households) Actual Green House Savings (Annual passenger car) TONNES OF MATERIALS RECYCLED IN-OFFICE

80 GRI G4 CONTENT INDEX The Global Reporting Initiative (GRI) is an international non-profit organisation that pioneered and developed a globally adopted sustainability reporting framework. We have chosen to develop our Sustainability Report using the GRI G4 Guidelines ( in accordance core) to report on our social, environmental and economic performance. This report has been produced using the G4 Sustainability Reporting Guidelines and the Construction and Real Estate Sector Supplement. LandCorp has not undertaken assurance for this report. Once we have an improved process and system in place for capturing information we will seek external assurance for our sustainability report. GENERAL STANDARD DISCLOSURES EXTERNAL ASSURANCE General Standard Disclosures Page Number (or Link) STRATEGY AND ANALYSIS G4-1 Leadership Message, p ORGANISATIONAL PROFILE G4-3 About LandCorp, p G4-4 About LandCorp, p G4-5 LandCorp key projects across WA, p G4-6 About LandCorp, p G4-7 About LandCorp, p G4-8 About LandCorp, p. 10; Integrated project delivery, p ; Partnerships, relationships and customers, p G4-9 Integrated project delivery, p ; Economic performance, p.28; Employee engagement and satisfaction, p G4-10 Employee engagement and satisfaction, p G4-11 Employee engagement and satisfaction, p G4-12 Value creation along our project lifecycle, p G4-13 No significant changes - G4-14 Governance and risk, p G4-15 Delivering Government policy, p.30; Use of industry accreditation and assessment tools, p.66 - G4-16 Partnerships, p.32-34; Strategy research relationships, p IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES G4-17 LandCorp s Annual Report ( p82-85) - G4-18 Materiality, p G4-19 Materiality, p G4-20 Materiality, p ; Value creation along our project lifecycle, p ; Summary of sustainable development approach, p ; Defined through the report in each relevant section G4-21 Materiality, p ; Value creation along our project lifecycle, p ; Summary of sustainable development approach, p ; Defined through the report in each relevant section - - G4-22 No restatements - G4-23 No significant changes - STAKEHOLDER ENGAGEMENT G4-24 Partnerships, relationships and customers, p G4-25 Partnerships, relationships and customers, p G4-26 Materiality, p ; Partnerships, relationships and customers, p G4-27 Materiality, p ; Partnerships, relationships and customers, p ; Key impacts of development projects, p Summary of sustainable development approach, p

81 CONTENT INDEX 81 REPORT PROFILE G4-28 About this report, p. 9 - G4-29 About this report, p. 9 - G4-30 About this report, p. 9 - G4-31 Feedback on our Sustainability Report, p G4-32 Content Index, p G4-33 Content Index, p GOVERNANCE G4-34 LandCorp s Annual Report ( Governance and risk, p ETHICS AND INTEGRITY G4-56 Governance and risk, p. 78; About LandCorp, p SPECIFIC STANDARD DISCLOSURES DMA and Indicators Page Number (or Link) Identified Omission(s) Reason(s) for Omission(s) Explanation for Omission(s) External Assurance CATEGORY: ECONOMIC MATERIAL ASPECT: ECONOMIC PERFORMANCE G4-DMA Materiality, p ; Economic performance, p G4-EC1 Economic performance, p G4-EC2 Climate change, p G4-EC3 Employee engagement and satisfaction, p G4-EC4 Economic performance, p MATERIAL ASPECT: MARKET PRESENCE G4-DMA Materiality, p ; Summary of sustainable development approach, p ; Integrated project delivery, p G4-EC6 All LandCorp staff are from the local Western Australian community - MATERIAL ASPECT: INDIRECT ECONOMIC IMPACTS G4-DMA Materiality, p ; Summary of sustainable development approach, p ; Economic health, p G4-EC7+ CRESS COMM Integrated project delivery, p G4-EC8 Economic health, p. 63; Summary of sustainable development approach, p ; Economic health, p. 63; Key impacts of development projects, p MATERIAL ASPECT: PROCUREMENT PRACTICES G4-DMA Materiality, p ; Supply chain sustainability, p G4-EC9 Supply chain sustainability, p CATEGORY: ENVIRONMENTAL MATERIAL ASPECT: ENERGY G4-DMA Materiality, p ; Summary of sustainable development approach, p ; Energy and carbon, p G4-EN3 Office sustainability, p. 79 The information is currently unavailable - G4-EN4 Energy and Carbon, p. 51 Energy consumption within the organisation not fully reported Energy consumption outside the organisation not fully reported The information is currently unavailable Currently information is only collected for LandCorp s Head Office tenancy Currently information is not readily available or collected for all LandCorp s development projects MATERIAL ASPECT: WATER G4-DMA Materiality, p ; Summary of sustainable development approach, p ; Water use and management, p. 50 G4-EN8 G4-EN9 Water use and management, p. 50 Water use and management, p. 50 Total water withdrawal by source data not reported Water sources significantly affected by withdrawal of water data not reported The information is currently unavailable The information is currently unavailable Currently information is not collected across all of our projects for total water withdrawal by source Currently information is not readily available or collected across all of our projects for water sources significantly affected by withdrawal of water

82 MATERIAL ASPECT: BIODIVERSITY G4-DMA Materiality, p ; Summary of sustainable development approach, p ; Biodiversity, p G4-EN13 Biodiversity, p G4-EN14 Biodiversity, p MATERIAL ASPECT: EMISSIONS G4-DMA Materiality, p ; Summary of sustainable development approach, p ; Energy and carbon, p. 51; Office sustainability, p. 79 G4-EN15 G4-EN16 Office sustainability, p. 79 Energy and Carbon, p. 51 Direct greenhouse gas (GHG) emissions (Scope 1) not fully reported Energy indirect greenhouse gas (GHG) emissions (Scope 2) not fully reported Some information is currently unavailable The information is currently unavailable Currently information is only available or collected for LandCorp s Head Office tenancy and car fleet Currently information is not readily available or collected across all development projects MATERIAL ASPECT: EFFLUENTS AND WASTE G4-DMA Materiality, p ; Summary of sustainable development approach, p ; Waste management, p. 52; Office sustainability, p. 79 G4-EN22 Waste management, p G4-EN23 Waste management, p. 52 Total weight of waste by type and disposal method not fully reported for LandCorp s office or development projects Some information is currently unavailable 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 and construction waste and recycling targets and capture of information G4-EN24 No significant spills - G4-EN25 Waste management, p G4-EN26 Waste management, p MATERIAL ASPECT: SUPPLIER ENVIRONMENTAL ASSESSMENT G4-DMA Materiality, p ; Supply chain sustainability, p G4-EN32 Supply chain sustainability, p Some information is currently unavailable - G4-EN33 Supply chain sustainability, p Percentage of new suppliers screened using environmental criteria not reported but all contractors are subject to pre-qualification assessments including environmental assessments Significant actual and potential negative environmental impacts in the supply chain and actions taken not reported Some information is currently unavailable LandCorp uses a panel management system and pre-qualified register system with varying tiers to manage its supply chain impacts. 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, and the environment LandCorp uses a panel management system and pre-qualified register system with varying tiers to manage its supply chain impacts. By building panels and prequalified registers based on demonstrated experience and knowledge we seek to mitigate potential negative impacts and risks across labour practices, society, and the environment - -

83 CONTENT INDEX 83 CATEGORY: SOCIAL Sub-Category: Labor Practices And Decent Work MATERIAL ASPECT: EMPLOYMENT G4-DMA Materiality, p ; Internal business practices, p G4-LA1 Employee engagement and satisfaction, p MATERIAL ASPECT: OCCUPATIONAL HEALTH AND SAFETY G4-DMA Materiality, p ; Health safety and wellbeing, p G4-LA5 Health safety and wellbeing, p G4-LA6 Health safety and wellbeing, p G4-LA8 Health safety and wellbeing, p MATERIAL ASPECT: TRAINING AND EDUCATION G4-DMA Materiality, p ; Staff training and education, p G4-LA9 Staff training and education, p G4-LA11 Employee engagement and satisfaction, p MATERIAL ASPECT: DIVERSITY AND EQUAL OPPORTUNITY G4-DMA Materiality, p ; Diversity inclusion and equal employment opportunity, p G4-LA12 Diversity inclusion and equal employment opportunity, p MATERIAL ASPECT: EQUAL REMUNERATION FOR WOMEN AND MEN G4-DMA Materiality, p ; Diversity inclusion and equal employment opportunity, p G4-LA13 Diversity inclusion and equal employment opportunity, p MATERIAL ASPECT: SUPPLIER ASSESSMENT FOR LABOR PRACTICES G4-DMA Materiality, p ; Supply chain sustainability, p G4-LA14 Supply chain sustainability, p Percentage of new suppliers screened using labour practice criteria not reported but all contractors are subject to pre-qualification assessments including safety and quality management assessments Some information is currently unavailable LandCorp uses a panel management system and pre-qualified register system with varying tiers to manage its supply chain impacts. 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, and the environment - G4-LA15 Supply chain sustainability, p Significant actual and potential negative impacts for labour practices in the supply chain and actions taken partially reported, with narrative and case studies disclosed Some information is currently unavailable LandCorp uses a panel management system and pre-qualified register system with varying tiers to manage its supply chain impacts. By building panels and prequalified registers based on demonstrated experience and knowledge we seek to mitigate potential negative impacts and risks across labour practices, society, and the environment -

84 Sub-Category: Society MATERIAL ASPECT: LOCAL COMMUNITIES G4-DMA Materiality, p ; Community wellbeing, p ; Community engagement, p G4-SO1 + CRESS COMM G4-SO2 + CRESS COMM Community wellbeing, p ; Biodiversity, p Community wellbeing, p , Summary of sustainable development approach, p Percentage of operations with implemented local community engagement, impact assessments, and development programs not reported Operations with significant actual and potential negative impacts on local communities partially reported, with narrative and case studies disclosed The information is currently unavailable The information is currently unavailable As each community is different, we work with the local community and new residents to define the impact assessments, local community engagement and development programs appropriate for each project As each community is different, we work with the local community and new residents to define the community development program MATERIAL ASPECT: ANTI-CORRUPTION G4-DMA Supply chain sustainability, p ; Governance and risk, p. 78; LandCorp s Annual Report ( Corporate goverance report, p G4-SO3 Supply chain sustainability, p ; Governance and risk, p MATERIAL ASPECT: SUPPLIER ASSESSMENT FOR IMPACTS ON SOCIETY G4-DMA Materiality, p ; Supply chain sustainability, p ; Community engagement, p G4-SO10 Supply chain sustainability, p Some information is currently unavailable - Percentage of suppliers subject to assessments for impacts on society not fully reported but all contractors are subject to prequalification based on social criteria LandCorp use a panel management system, and pre-qualified register to screen and manage supply chain impacts. By building panels and pre-qualified register we seek to mitigate potential negative impacts and risks to society Sub-Category: Product Responsibility MATERIAL ASPECT: PRODUCT AND SERVICE LABELING G4-DMA Materiality, p ; Customer satisfaction, p G4-PR5 Customer satisfaction, p SECTOR SUPPLEMENT CONSTRUCTION AND REAL ESTATE SECTOR G4-CRE5 Biodiversity, p G4-CRE6 Health, safety and wellbeing, p G4-CRE7 No persons were displaced or resettled in the financial year - G4-CRE8 Industry accreditation and assessment tools, p

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