annual supplier report 2015 - welcome to positive...

Annual Supplier Report

2015

Welcome to Hammerson’s Annual Supplier Report 2015. This is our third report and builds on the impressive results shown by our suppliers in 2014. As a property development and asset management company much of our business activity is delivered through our supply chain. Developing a systematic but simple approach to monitoring the sustainability standards of our suppliers is therefore critical to the achievement of our sustainability targets and has been a very valuable exercise for us.

We are delighted that this year three of our suppliers, Honeywell, Churchill and Siemens plc, have been awarded Platinum status. This level is achieved by suppliers who have shown an exceptional level of commitment to engaging with our key areas including in particular sustainability initiatives.

The results this year reveal a supply chain with an increasingly considered and sophisticated response to a range of sustainability and corporate responsibility (CR) issues. There is a greater commitment to publishing annual CR reports and to having those reports audited – either internally or externally. Risk mapping also remains popular. These moves towards greater transparency amongst our suppliers will in turn help raise standards across the board.

Another feature in this year’s responses has been an increase in community investment policies and community engagement work. Hammerson has a strong programme of community engagement work and we are delighted that a similar approach is increasingly reflected by our suppliers.

In 2016 we will be updating the supply chain survey and inviting our suppliers to complete it again as part of our on-going monitoring. The pace at which the sustainability agenda is developing demands that we refresh our questions to ensure that, as far as possible, the system accurately reflects the increasingly sophisticated approaches adopted by many of our suppliers. By exploring and assessing these activities we can celebrate excellence, share good practice and support the developing culture of sustainability right across the sector.

Louise EllisonHead of Sustainability

We are delighted that this year three of our suppliers, Honeywell, Churchill and Siemens plc, have been awarded Platinum status.

Foreword ...................................................................................... 3

Introduction ............................................................................... 4

Our standards ............................................................................ 4

Our suppliers .............................................................................. 7

Headline numbers .................................................................... 8

Awards

n Platinum award ...................................................................10

n Gold award ...........................................................................10

n Silver award ......................................................................... 11

n Bronze award .......................................................................13

Case studies

n VINCI ....................................................................................15

n JLL .........................................................................................16

Supplier responses .................................................................18

Contents

3

5

EmPloyEE HEaltH and SafEty

Hammerson expects its suppliers to maintain an adequate policy on health and safety.

Working environmentA safe, clean and hygienic working environment should be provided and best occupational health and safety practice should be followed.

Building safetyHammerson requires that its suppliers conduct their operations in compliance with health and safety laws and regulations.

Emergency situationsAll such events are to be identified and assessed and their impact minimised by implementing appropriate emergency plans and response procedures.

Work Accidents and First AidHammerson requires its suppliers to have sufficient first aid equipment and first aid trained colleagues to provide immediate aid when required.

RESPECt and PRotECtion of tHE EnviRonmEnt

Hammerson’s key environmental objectivesn Reduce carbon emissions by 20% by 2020

n Reduce water intensity by 10% by 2020

n Increase waste recycling to 85% by 2016

Hammerson expects suppliers to have an exemplary environmental policy, and that they strive to improve working practices to achieve the highest possible environmental standards.

This includes supplier products, management systems, and in particular, the following issues:

n Building design and performance

n Biodiversity enhancement

n Water consumption

n Energy demand

n Waste and toxic substances management

n Visual, olfactory and noise pollution management

n Local community relationships

n Health and wellbeing

In 2009, Hammerson launched a responsible procurement policy to improve our engagement with our suppliers. Our Annual Supplier Report is a key product of that policy. It helps us understand our suppliers better, and helps them to understand our commitment to responsible procurement.Our suppliers are identified as a key stakeholder within our Positive Places sustainability programme and they are central to Hammerson being able to achieve our sustainability ambitions of operating and developing retail assets that achieve the highest social and environmental standards.

Our standardsOur standards are detailed in full in our Supplier Code of Conduct, which is publicly available in the policies section of our dedicated Positive Places website: sustainability.hammerson.com/policies

Hammerson has committed to prevent bribery and corruption in all parts of its business. We require that our suppliers share this commitment. Any breach of applicable laws will lead to the termination of our relationship with a supplier.

Hammerson does not tolerate unfair practices to compete for and win business. We also expect our suppliers to make purchasing decisions objectively based on price, delivery, quality and other relevant factors.

ComPlianCE WitH labouR StandaRdS

Workers Rights Every employee should be treated with respect and dignity. All employees have the right to form or join associations of their own choosing and to bargain collectively. All employees must have a written contract in their local language stipulating employment terms and conditions. Migrant employees have the same rights as local employees.

Use of forced labour Hammerson does not accept any forms of forced or compulsory labour.

Use of illegal labour The supplier will not use illegal labour as defined by national law.

Child labour Hammerson does not tolerate the use of child labour.

Discrimination No employee shall be discriminated against on the grounds of sex, race, colour, age, pregnancy, sexual orientation, religion, political opinion, nationality, ethnic origin, disease or disability.

4

Introduction

buSinESS intEgRity and lEgal REquiREmEntS

Working time Suppliers have to comply with national legislation on working time.

Pay Suppliers will comply with local legislation on minimum wages and undertake to pay employees regularly.

mEaSuRing and monitoRing

Our suppliers’ compliance with the Code of Conduct is measured through:

Code of conduct complianceA supplier should have established and operational Corporate Social Policies and Management Systems.

TransparencyHammerson expects suppliers to respect the Code of Conduct and to achieve the standards within it.

ProcessHammerson requires suppliers to approve and sign the Code of Conduct.

AssessmentSuppliers will be asked to complete a questionnaire on their sustainability practices as part of a tender process or appointment.

ReviewSuppliers will be provided with an assessment report and score based on their responses, as shown in this report.

Construction47%

Services29%

Consultancy4%

Hardware/Products4%

Engineering6%

architects4%

Surveyors4%

utilities2%

225Our suppliers

SuPPliERS HavE ComPlEtEd tHE HammERSon SuPPliER SuRvEy

6 7

SinCE 2013

CoRPoRatE RESPonSibility

of our suppliers map supply chain risk

have a responsible procurement policy

have a formal Code of Conduct

for Suppliers

Assessment questionaire and internal audit are the most popular approaches for assessing the supply chain

of suppliers

have a CR Policy

of them monitor

this policy

make targets

publicly available

SuPPly CHain

8 9

Headline numbersOver three years, we have collated information on 225 suppliers. Here is a taste of what we’ve found…

87%

PEoPlE

communicate

sustainability performance to employees

provide CR training

for employees

have a diversity policy

EnviRonmEntal managEmEnt

have an environmental policy

focus on reducing emissions

focus on reducing

waste

50% 86%

97% 90%

96%

63%

54%

28%

98% 84%

85%

2015 results

Platinum aWaRd

Churchill Contract Services Ltd Services

HoneywellServices

Siemens plc/Siemens Building Technologies Services

Ha

mm

erson

PositivePlaces

2015

97.5

96.7

95.6

SCoRE

10 11

PLA

TInU

m

In 2015, 51 suppliers took the survey. Here is how they scored…

Platinum aWaRd

Ha

mm

erson

PositivePlaces

2015

Interserve Ltd Services

91.9

SGS mIS Environmental Ltd Consultancy

93.7

SCoRE

gold aWaRd

GO

LD

Ha

mm

erson

PositivePlaces

2015

ISG Construction

88.8

SCoRE

SilvER aWaRd

JLLReal Estate Consultancy

89

BmSI EngineeringEngineering

89.4

Shaylor Group plcConstruction

89.3

Atlas maintenance (Scotland) LimitedConstruction

88.7

OCS Group UK LtdConstruction

87.6

VSGServices

87.6

SILVER

VInCI Construction UK Limited Construction

84.7

mcLaughlin & Harvey Construction LtdConstruction

83.7

LexingtonServices

84.6

Integral UK LtdConstruction

83.3

Hilson moran Engineering

82.4

Redpath Construction LimitedConstruction

82.3

Advance GroupServices

86.7

12 13H

am

merso

n

PositivePlaces

2015

SilvER aWaRd (continued)

SILVER

morris & SpottiswoodConstruction

82.1

Play9Products/Hardware

81.8

Boston networks LimitedServices

81.6

ISG Retail LtdConstruction

81

Archibald mcCorquodale & Son LtdConstruction

80.8

Axis Elevators LtdConstruction

80.6

SCoRE

Ha

mm

erson

PositivePlaces

2015

Altoon Partners LLP Architects

77.8

SCoRE

bRonZE aWaRd

Dribuild LtdConstruction

79.5

CBREServices

79.8

Rio Asphalt Paving & CoConstruction

79.6

Resonics LtdConstruction

77.7

Gunter Design Associates LtdArchitects

77.2

Savills (UK) LimitedSurveyors

76.8

BR

On

ZE

Business Stream Utilities

74.9

Link CCTV Systems LtdServices

75

PmA Contracts LtdConstruction

75.1

Resarf Flooring LtdConstruction

74.8

FestilightProducts/hardware

74.1

GBm Support Services GroupServices

74

Westgale LtdConstruction

76.8

Ha

mm

erson

PositivePlaces

2015

bRonZE aWaRd (continued)

14

BR

On

ZE

Aura Conservation LtdConstruction

73.9

Chubb Fire and Security LtdEngineering

73.9

mK Illumination UK LtdServices

73.1

Endpoint LtdConsultancy

72.9

Brymor Contractors LtdConstruction

72.7

Bell GroupConstruction

73.5

KOnE Services

73.2 Kings Security Systems Ltd Services

Lancer Scott LtdConstruction

Barbour Fit OutConstruction

Axis Scotland LtdConstruction

Oracle Interiors LtdConstruction

SCoRE

15

Case Studies

Platinum aWaRd

Ha

mm

erson

PositivePlaces

2015

aCHiEvEd SilvER aWaRd 2015

VInCIConstruction

We’ve chosen to showcase VINCI and their biodiversity and wildlife commitments. Here’s what they had to say…

There are 47 Wildlife Trusts across the UK forming a nationwide movement that shares a vision for a Living Landscape and Living Seas, creating an environment rich in wildlife for everyone.

VINCI has committed to supporting The Trusts through its SOMAD (Stand Out Make a Difference) scheme by enabling employees to use a full day away from work to support the work of The Trusts. Whether this support is in the form of practical conservation work, recording wildlife, helping at a visitor centre,

hosting a fundraising event or even providing professional expertise, it’s up to the employee.

On 20th October 2015, members of the HSE Department and Group Proposals formed two work parties at Aldbury Nowers Nature Reserve to carry out practical conservation work.

The first group excavated a 0.8 metre deep pit in the chalk and installed a new interpretation board for visitors to learn about the reserve.

The second group raked grass cuttings into piles and removed them from the grassland. Grass cuttings need to be removed to avoid nutrient build-up in the soil, which can lead to pest plant species growing and subsequently out-competing wildflowers that are essential for optimum wildlife value.

A day spent with colleagues at Aldbury Nowers Nature Reserve was not only a great opportunity to make a difference for wildlife but also physically challenging and mentally rewarding. The proven health and wellbeing benefits associated with spending time in green open spaces such as this were really felt by all those involved. We often take our relationship with nature for granted; a day volunteering in the countryside can really refresh one’s sense of perspective.

BerkshireBuckinghamshireOxfordshire

SILVER

72.6

72.3

70.7

71.6

70.8

16 17

JLL was honoured to have been named by the Ethisphere Institute as one of the ‘World’s Most Ethical Companies’ for the eighth year in a row, in March 2015. The list recognises over 100 companies from around the world for their commitment to ethical business practices. A key component of achieving this status is the Ethics Everywhere Programme.

Ethics EverywhereJLL’s Ethics Everywhere Programme establishes the framework for the various activities we undertake in order to maintain compliance with the firm’s Code of Business Ethics and Vendor Code of Conduct, and to detect any violations of its provisions. The Programme is designed to make the concept of ethical corporate behavior deep and pervasive within the Company’s corporate culture.

As part of this programme, we offer comprehensive training to our employees on ethics, HR and anti-corruption. In 2014, 3,577 of our employees undertook in-person training relating to legal, ethics or compliance matters. These efforts are supported by our network of 27 ethics officers worldwide.

JLL also hosts ethics training sessions for new employees and our intranet site includes ethics topics as part of the firm’s overall training programmes. Roles identified as being of “higher risk” also receive dedicated training.

Our Code of Business Ethics is supported by business processes and procedures that are designed to minimise the risk of unethical actions, such as breaches of privacy, bribery and corruption. Examples of such processes include risk assessment of each business line and gifts and entertainment procedures

Our ethics initiatives and engagement are managed by dedicated ethics, legal and human resources teams, and reported in our Ethics Everywhere Annual Report.

Ethics EngagementOur Ethics Liaison Programme seeks to appoint an employee within adopting business units and client accounts to be the liaison between their co-workers and JLL’s Ethics Officers. Ethics Officers hold quarterly calls with Ethics Liaisons, share relevant content and advise on engagement strategies. Through this mutual partnership, we believe we can make the principles of our Code of Business Ethics more accessible to all of our colleagues. We also believe that having a ‘point person’ available on a local level will help identify and mitigate any ethical issues or dilemmas that may arise.

Ha

mm

erson

PositivePlaces

2015

aCHiEvEd SilvER aWaRd 2015

JLLReal Estate Consultancy

“acting with integrity and the highest ethical standards is not only good policy, it is good business. Superior client service, teamwork and collaboration, and high ethical standards define our culture, drawing us closer to each other and to our clients.”

There is a shift in HR and business to encourage diversity and inclusion. In Hammerson, we as a business have proactively tried to implement this belief including employee engagement activities that celebrate equal opportunities and diversity, as well as having aims to make all our centres dementia friendly. We recognise the work JLL is doing around ethics, diversity and inclusion and wanted to showcase them as a case study. Here’s what they had to say…

Diversity & Inclusion at JLLOur D&I initiatives support our people by attracting, developing and retaining top talent with broad backgrounds, experiences and perspectives, and by helping unleash our employees’ full potential. They also support our clients by having the best talent delivering results and through our strong partnerships with women- and minority-owned businesses.

Given that we operate in more than 80 countries, we intentionally leave diversity initiatives decentralised so that they can align with different cultural norms and incorporate the different aspects of our diverse workforce.

JLL has a large number of D&I projects around the world:

An example project is our Employee Resource Groups (ERGs). These are voluntary, employee-

led groups that serve as a resource for members and organisations by fostering a diverse, inclusive workplace aligned with organisational mission, values, goals, business practices and objectives. Membership has grown to over 6,000 members strong (Over 32% of US JLL employees), with members across more than 200 locations and representing every line of our business. Examples of ERG include VetNet, Women’s Network, Latino Employee Resource Network and Building Pride, an LGBT Ally Network.

Another is our Changing the Face of Property initiative. JLL is a founder member of this UK-based diversity initiative that aims to increase diversity within the

industry and change the perception that a career in property means becoming an estate agent or working on a construction site. As part of the initiative, JLL has attended major career events across the UK, reaching tens of thousands of school and college students and hundreds of careers advisers. They have also run an apprenticeship scheme with seven apprentices in 2014 and a further nine in 2015.

For more see www.diversityatjll.comSILV

ER

Colin dyerPresident & Chief Executive Officer

Supplier responsesWe asked for responses to over 30 questions, each of which were allocated a score of between 1 and 10 to give a total maximum score of 100.

Below you’ll find the questions we asked and responses from those suppliers who took part in the survey in 2015, as well as responses from previous years.

Part one Code of Conduct

1 Agreement to accept the Hammerson Supplier Code of Conduct

51 100%

Part two Corporate Responsibility Strategy

1 Does your company have a CR Policy?

51 89%

responses said ‘yes’

Year 2013 2014 2015 Total

Responses 112 62 51 225

Result (% said ‘yes’) 99% 100% 100% 100%

Year 2013 2014 2015 Total

Responses 91 62 51 204

Result (% said ‘yes’) 87% 87% 89% 87%


2 Does your company review and monitor the effectiveness of your CR Policy?

51 88%

3 Are your CR objectives and targets publicly available?

51 52%

There has been a slight reduction in commitment to make CR objectives and targets publicly available reported amongst the 2015 respondents, with a decrease of 3% since issuing our previous report in 2014. However the small difference still suggests there is a strong focus on transparency amongst our suppliers which will in turn help raise standards across the board. It also demonstrates a growing need to inform stakeholders how targets are being met and what is being done across the business in order to achieve these goals.


Year 2013 2014 2015 Total


Result (% said ‘yes’) 86% 86% 88% 86%

Review method 2013 2014 2015

Internal audit 75% 70% 74%

External audit 10% 19% 13%

Third party verification 8% 8% 8%

Other 7% 4% 5%


Year 2013 2014 2015 Total


Result (% said ‘yes’) 45% 55% 52% 50%

18 19

4 Does your company have an annual CR Report?

51 33%

We are pleased to see more of our suppliers publishing annual CR reports. Our review of the evidence supplied suggests their reports are focusing on key material issues. This is further evidence of an increasingly sophisticated approach to sustainability issues being taken by suppliers from different sectors. These regular reports are supporting better transparency and the raising of standards more broadly.

Part three Environment, Health and Safety

1 What methodologies does your company undertake to reduce its sustainability and social risks?

51

The number of our suppliers auditing their CR report internally and externally has risen with a substantial increase since our 2014 report. In many cases, our suppliers use a combination of methods to reduce sustainability and social risks. In respect to CR departments, certifications have always been a key method, and most often the desirable way in which suppliers monitor their Health and Safety issues which is evident from the consistently high percentage using certificates throughout the three years.

Year 2013 2014 2015 Total


Result (% said ‘yes’) 30% 27% 33% 30%


responses

2013 2014 2015

Internal Risk Analysis Team 69% 65% 73%

Risk mapping 27% 37% 36%

Third party analysis 32% 34% 36%

Certifications 53% 65% 58%

Other 22% 24% 21%

N/A 10% 8% 8%

2 Is your risk management framework certified to the International Risk Management standard?

44 19%

A larger proportion of respondents this year have been certifying to the IRM standard. The IRM standard demonstrates the manner in which businesses should approach risk management; detailing the approaches and treatments to minimise risks. We encourage more of our suppliers to aim to achieve IRM standard to demonstrate a thorough understanding of risk management.

3 Does your company have a Health and Safety management system?

51 99% 35%

Due to the nature of the business, a large proportion, although by no means all, of our suppliers are in the construction industry. We are aware of the heightened risk across our sites and as result we are pleased that such a large proportion of our suppliers have embedded these systems within their organisations to reduce the risk of workplace injuries. We also hope this will encourage more of our suppliers to be increasingly stringent on health and safety measures. We are also pleased to see that an impressive number of suppliers now carry out internal training and workshops to help demonstrate their concern for an effective system.


Year 2013 2014 2015 Total


Result (% said ‘yes’) 13% 18% 19% 16%

Year 2013 2014 2015 Total


Result (% said ‘yes’) 99% 68% 99% 89%

Certified to 0HSAS18001 33% 40% 35% 37%


20 21

are certified to 0HSHS18001

4 Does your company have an Environmental Policy?

44 96%

Finding better environmental solutions remains a core part of our business; we would like our suppliers to adopt such methods throughout our supply chain.

5 Which environmental initiatives does your company undertake?

51

For Hammerson, understanding the environmental impact of our supply chain and in particular the embodied carbon present within our development schemes is an important element of our sustainability strategy. Working with suppliers who understand their own impacts and are taking action to reduce waste and use resources as efficiently as possible has a major part to play in this process. We have found that this year more of our suppliers have shown better figures in terms of their reduction targets than in previous years. We are happy to see an increase in biodiversity action plans. Similarly we are delighted to see an increase in the number of our suppliers reporting responsible procurement policies. It is imperative that we encourage responsible procurement given the nature of our business and suppliers.

Year 2013 2014 2015 Total


Result (% said ‘yes’) 96% 98% 96% 97%


responses

Year 2013 2014 2015

Reduce waste generated and waste sent to landfill 96% 95% 96%

Reduce energy consumption and associated C02 emissions 91% 92% 90%

Biodiversity action plans 24% 26% 28%

Improved water efficiency 68% 67% 66%

Responsible procurement of materials 85% 82% 85%

Develop or provide eco-friendly products 42% 46% 46%

Use of BES 6001 or equivalent 5% 12% 10%

Other 25% 21% 23%

N/A 1% 5% 3%

6 Does your company use and follow an Environmental Management System?

51 71% 72%

More of our suppliers have put Environmental Management Systems in place. We are pleased that our suppliers are taking these seriously and have embedded them within their existing management framework. It is interesting that a smaller proportion of respondents this year have certified their systems to ISO14001 but this may be a reflection of a different type or size of business responding to the survey.

7 Does your company comply with current environmental legislation?

51 100%

8 Does your company have a Quality Management System certified by ISO 9001?

51 68%

The small drop, compared to 2013, in the proportion of respondents having their QMS systems certified may simply suggest differences in the characteristics of the responding organisations.


Year 2013 2014 2015 Total


Result (% said ‘yes’) 69% 78% 71% 71%

Certified to ISO 14001 84% 75% 72% 74%


are certified to ISO4001

Year 2013 2014 2015 Total


Result (% said ‘yes’) 96% 100% 100% 100%

Year 2013 2014 2015 Total


Result (% said ‘yes’) 71% 68% 68% 69%


22 23


Year 2013 2014 2015 Total


Result (% said ‘yes’) 86% 82% 85% 85%

Part four People

1 Is your sustainability performance communicated to your employees?

51 86%

2 Does your company have an Equal Opportunity or Diversity Policy?

51 98%

3 Does your company have a policy to discourage child and forced labour?

51 60%

A larger proportion of this cohort of respondents has a policy in place on child labour policies within the workplace and across their supply chain. This is an increasingly high profile subject and we are pleased that our suppliers are recognising it. However we are aware that the issue does not have direct relevance for many of our suppliers so there would not necessarily be a need for a specific policy. Hammerson has a ‘no tolerance policy’ on child labour and we continue to uphold these standards across our supply chain and expect our suppliers to do the same.


Year 2013 2014 2015 Total


Result (% said ‘yes’) 86% 84% 86% 85%


Year 2013 2014 2015 Total


Result (% said ‘yes’) 99% 98% 98% 98%

Year 2013 2014 2015 Total


Result (% said ‘yes’) 46% 55% 60% 53%


4 Does your company actively discourage bribery and corruption?

51 100%

5 Does your company have a fair grievance procedure that ensures employee issues are dealt with promptly?

51 100%

Bribery and corruption policies and fair grievance procedures are standard requirements for any company working with Hammerson. All our suppliers have to confirm their acceptance of our Code of Conduct which includes specific acknowledgement of bribery and corruption policies.

6 Does your company have a training, learning and personal development policy?

51 85%

Our suppliers have reported making workshops and training opportunities available for their staff to help personal development and growth. Retaining skilled, motivated staff underpins good business performance. This is particularly the case in sustainability where the rapidly developing business landscape is presenting challenges and opportunities that sustainability professionals need to respond to. Access to consistent, high quality training and development opportunities to support staff is very important.



Year 2013 2014 2015 Total


Result (% said ‘yes’) 100% 100% 100% 100%

Year 2013 2014 2015 Total


Result (% said ‘yes’) 97% 98% 100% 98%

24 25

7 Does your company ensure that funding is available for external training and qualifications to encourage personal development?

51 97%

8 Does your company promote staff awareness and provide training on corporate responsibility?

51 84%

The high proportion of companies reporting a positive policy on training and development reflects the value our supply chain place in their employees and their continuing development. We are particularly pleased to see the response rate in relation to CR training remaining high. As the issues we are striving to address through our sustainability strategy are becoming more challenging we need our suppliers to ensure their staff are actively supported in maintaining their skills in this area.


Year 2013 2014 2015 Total


Result (% said ‘yes’) 97% 95% 97% 96%


Year 2013 2014 2015 Total


Result (% said ‘yes’) 83% 84% 84% 84%

9 Does your company have a volunteering policy?

51 33%

We are a little surprised by the small proportion of respondents with a volunteering policy for staff. Companies are increasingly seeing the benefits of supporting staff in active engagement with local communities and groups. Whether it be team building, new skills or simply time spent doing something different, the positive effects are widely recognised. Hammerson has a volunteering policy which entitles staff to three working days for volunteering based activities. The Hammerson Community Day forms one of these days. This is an annual event that is greatly valued by staff across the business. In 2015 we wanted to encourage more volunteering amongst our suppliers and were delighted that staff from some of our suppliers joined our Community Day. We also welcomed a team from the British Council of Shopping Centres.

Part five External Engagements

1 Is your company a member of any sustainability related organisations?

51 54%

Participation in sustainability related organisations can be extremely valuable in terms of sharing knowledge, shaping policy and moving the sustainability agenda forward. Whilst companies may see this as putting pressure on valuable staff resources, if done wisely there are clear benefits to be had. Hammerson participates in a number of sustainability organisations across the industry that are particularly relevant to our business activities. We will continue to encourage our suppliers to participate too.


Year 2013 2014 2015 Total


Result (% said ‘yes’) 38% 31% 33% 34%

Year 2013 2014 2015 Total


Result (% said ‘yes’) 57% 51% 54% 54%


26 27

2 Does your company have a Community Investment Policy or Strategy?

51 60%

3 Does your company encourage local community work and commit to making a positive impact on the local community?

51 77%

The proportion of respondents with company policies on community investment has gone up this year. It is encouraging to see many of our suppliers make efforts to actively engage in community programmes. We do encourage our suppliers to implement policies as we believe this helps develop good practice amongst employees. Effective community investment is an essential part of Hammerson’s strategy to remain connected with our local areas. With particular focus on current developments, it is our responsibility to ensure that there is a positive impact as a result of our business initiatives. It is important for us that our suppliers recognise the role this plays within our business.



Year 2013 2014 2015 Total


Result (% said ‘yes’) 76% 70% 77% 74%

Year 2013 2014 2015 Total


Result (% said ‘yes’) 69% 53% 60% 61%

4 Do you engage with stakeholders to ensure that their ethical, social and environmental concerns and requests are addressed?

51 87%

The high proportion of respondents confirming their engagement with stakeholders on these issues is an interesting reflection of the rising awareness of the importance and power of different stakeholder groups. We see positive engagement with our stakeholders as a critical part of our business and particularly of our sustainability programme so it is encouraging to know this is reflected within the approach of our suppliers.

5 How do you assess the risks within your own supply chain to ensure strong ethical, social and environmental performance?

51

The supply chain within the development process is extensive. It is therefore very important that our suppliers are as robust in their analysis of supply chain risk as we are. A clear procedure for identifying, monitoring and mitigating supply chain risk is key to its effective management and we are pleased that this is evident within so many of our suppliers. The variety of approaches taken reflects the range of different types of business Hammerson works with. It is reassuring to see an increase in the percentage of external audits carried out which can help alleviate concerns surrounding validity and accuracy.


Year 2013 2014 2015 Total


Result (% said ‘yes’) 73% 82% 87% 80%

responses

Year 2013 2014 2015

Supply Chain Risk Mapping 29% 22 % 28%

Supplier Code of Conduct 46% 46% 50%

Assessment Questionnaire 61% 63% 66%

Internal Audits 59% 76% 71%

External Audits 30% 24% 33%

Other 20% 20% 22%

N/A 10% 5% 8%

28 29

6 Does your company have a Responsible Procurement Policy?

51 63%

The procurement process is one of the most critical and powerful points at which to ensure products and services meet the environmental and social standards required for us to achieve our sustainability targets and ambitions. It is extremely important therefore that our suppliers have procurement policies in place that support them in achieving the standards we set. Acknowledging that most of our suppliers are from the construction and engineering industry, it is crucial for us as a business that our suppliers understand the responsibility they have to uphold their procurement policy. A supplier without experience of responsible procurement may find it difficult to do this.

7 Does your company have its own Supplier Code of Conduct?

51 55%

There is an increase in the proportion of suppliers with their own supplier code of conduct in the results this year. We believe it is important that more of our suppliers have their own code of conduct in place in order for their suppliers to be aware of the guidelines and policies to follow and maintain good relationships with other suppliers. Our supplier code is available online as a guideline and we will continue to work with our suppliers to support them in ensuring they have appropriate standards in place.



Year 2013 2014 2015 Total


Result (% said ‘yes’) 66% 39% 55% 54%

Year 2013 2014 2015 Total


Result (% said ‘yes’) 67% 59% 63% 63%

30

Keep up with news on our Positive Places work:

sustainability.hammerson.com

@hammersonplc @EllisonlK

Hammerson plc are committed to the environment.

annual supplier report 2015 - welcome to positive...

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