corporate responsibility report 2018significant economic contribution gross value added (gva) in...

Corporate responsibility report 2018intu properties plc

Read about our focus on CRpage 5

Our 2018 corporate responsibility (CR) report sets out our progress against the long-term commitments we set in 2014. It celebrates our successes and considers the challenges that we, and our stakeholders, face in the coming years

Welcome

Read more in our annual report intugroup.co.uk/en/investors

Contents

OverviewMessage from our Chairman 1Highlights from our business in 2018 2Our business model 4Our focus on CR 5Our targets and long-term commitments 7Building relationships 8

Communities and economic contribution 10

Environmental efficiency 18

Measuring performance 26Data appendix 27Gender pay gap 32Notes to the report 32

AssuranceIndependent assurance statement 33

Contact:Alexander NicollCorporate Responsibility Director020 7960 1200 [email protected]

Go online intugroup.co.uk/en/about-us/corporate-responsibility

Volunteering has been great, I’ve met new people and improved my team building skills.”Madison Dock, Business Support Assistant

Find out how relationships help us deliverpage 8

Communities and economic contributionpage 10

Environmental efficiencypage 18

Front cover image: Big Bugs On Tour, a national exhibition across our centres that brings adults and children face-to-face with 12 giant British bugs

https://www.intugroup.co.uk/en/investors

https://www.intugroup.co.uk/en/investors

https://www.intugroup.co.uk/en/about-us/corporate-responsibility/


intu’s purpose, to create compelling experiences that make our customers smile and help brands flourish, is integral to our CR approach. In 2018 we maintained our focus on delivering positive change for our communities and operating sustainably

This year saw fantastic community engagement at our centres in the UK and Spain and at our London office.

Many of our staff contributed to the communities we serve by using their company volunteering days to give support to worthwhile causes. During the past year 598 people across the business volunteered, compared with 558 in 2017. I spent my volunteering hours helping to serve breakfast to clients at The Passage, the inspirational homelessness charity based near our London office.

Many of our community partnerships have been forged over time and make a positive difference consistently and for the long-term. Our partnership with The Conservation

Volunteers has helped create vibrant Green Gyms™ near several of our UK centres. The many beneficial results of this partnership were acknowledged by the EPRA Outstanding Contribution to Society award (wellbeing category) we won this year.

We measure our impacts on an ongoing basis. As members of the London Benchmarking Group and Business in the Community we objectively assess our community impact to improve the outcomes for those we seek to help wherever possible.

We have also received a number of significant awards which recognise intu’s consistent approach to environmental management, people development and partnership working.

The past year has seen a continuing focus on reduction in energy use and I am delighted that a further 16 per cent reduction in our carbon emissions intensity was achieved.

We continue our focus on waste management having achieved our target of sending zero waste to landfill and now we are challenging ourselves to recycle and reuse our waste. Our Compost Café initiative, launched by intu Chapelfield, won an Award for Environmental Best Practice in the 2018 Green Apple Awards.

In a world of growing uncertainty, the impact of climate change is becoming increasingly understood. As part of our business planning we are looking at the development of a vision for 2030 which will see new long-term CR targets including important environmental goals.

The CR achievements set out in this report, to which everyone at intu has contributed, form a good basis for our plans to look forward to 2030 in a practical way and always with relevance to our business as our key focus.

John StrachanChairman

Message from our Chairman

Reduction in carbon emissions intensity since 2010

64% (2017: 57%)

Significant economic contribution gross value added (GVA) in 2018

£4.8bn (2017: £4.6bn)

Chairman’s prize

During 2018 I have once again used my annual Chairman’s prize to encourage

our people to showcase the valuable work they do in their local communities and particularly the effective partnerships they have developed. Staff at intu Merry Hill worked to provide lifesaving skills and equipment across the local area. The centre’s partnership with FastAid Black Country and the West Midlands Ambulance Service donated defibrillators to the local community and trained 2,300 local residents in how to operate them. Centre staff also volunteered to support Restart a Heart day, by training schoolchildren in CPR techniques. Availability of defibrillators and people confident in using them in an emergency saves lives both in our centres and the wider community.

Our key environmental, social and governance (ESG) benchmarks

Read more on page 26

AssuranceMeasuring performanceEnvironmental efficiencyCommunities and economic contribution

Overview

1intu properties plc Corporate responsibility report 2018

25.00

Welcome

Welcome

400m customer visits per annum

Highlights from our business in 2018

860volunteering activities by intu staff

660charities supported

We own, develop and manage some of the most popular retail and leisure destinations in some of the strongest locations in the UK and Spain

Our purpose is to create compelling, joyful

experiences that make our customers smile and help brands flourish. This creates value for our shareholders, benefits our communities, and delivers long-term success

1.6 litre average water use per customer visit

64%reduction in carbon emission

intensity since 2010

1m social media followers

100%waste diverted from landfill

£4.8bn total economic contribution in 2018

11,300people reached by our

community programmes


Overview

2 intu properties plc Corporate responsibility report 2018

Asset value

£9.2bn(2017: £10.5bn)

Highlights from our business in 2018 continued

intu centres

development sites

With 22 million sq ft of retail, leisure and catering space in the UK, we welcome over half the UK’s population in centre and online every year

We own three ofSpain’s top-10shopping centres

Our culture

In one way, we are a simple business, with a focus on creating the best shopping centre experience for our 35 million customers.

Our culture is driven by a single-minded focus to make our customers feel better about life through a visit to one of our centres.

Encouraging innovation

Driven by our values of bold, creative and genuine we encourage effective experimentation both by individuals

and through group initiatives such as intu Accelerate and Green Lab.

Employee innovation is captured through our Great Ideas portal and success is recognised and rewarded through Win your dream.

intu WatfordRetail and leisure extension of 380,000 sq ft that opened in September 2018


Overview


Growing like-for-like

net rental income

Making

smar

t use

of capital

operational excellence

Delivering

winning destin

atio

ns

Optimisi

ng ou

r

Ourcustomers

Behaving responsibly

Being a good employer

Living our values

Our business model is focused on creating shopping centres that are loved by customers and where retailers flourish. This builds a long-term business that delivers value for our shareholders and stakeholders

Our business model

How our strategy helps us create value

What we doWe apply the intu difference – our specialist knowledge, expertise and market insight – to create the most popular shopping centres by:

making customers smileOur insight and management of centres attract customers more often, for longer and from further away by offering the right mix of retail, leisure and catering alongside our distinctive brand proposition

helping retailers flourishOur high-footfall locations, flexibility and strong brand give retailers the confidence that they will trade successfully with intu, which drives rental income and capital growth

Our assets and resourcesWe have unique assets and resources that provide the foundations for our business

Our centresNational presence with high-quality retail and leisure destinations visited by half the UK’s population each year

Our peopleProfessional, empowered and motivated teams that are specialists in their fields

Our relationshipsEnduring, creative and collaborative relationships with retailers, customers, employees, partners and communities

Our brandRespected shopping centre brand focused on enriching the customer experience both in centre and online

Our financial strengthCapital structure provides capacity to deliver our objectives from a range of funding sources

Underpinned by our culture

Our investorsGenerating strong stable income

+0.6%like-for-like net rental income growth

Our retailersEnvironments that help retailers flourish

+190bpsoutperformance of national footfall benchmark

Our customersCompelling experiences

75average net promoter score

Our peopleProfessional and empowered

85%of staff find ways to bring joy to customers and colleagues

Our communitiesSignificant economic contribution

£4.8bngross value added

Our environmentOperational and environmental efficiency

64% reduction in carbon intensity since 2010

The value we addWe deliver sustainable value for our shareholders and stakeholders


Overview


CR supports our strategic aims, helping to create a long-term and sustainable business that brings value to all our stakeholders

Our focus on CR

Our approachAs a business our purpose is to make our customers smile and help brands flourish. Behaving responsibly is part of achieving that purpose. We focus on growing our business while delivering positive change in our communities and operating with respect to the environment. We connect our business with our communities by addressing the issues that they care about.

In order to tackle the sustainability challenges we face we need to engage our stakeholders – our investors, customers, communities, retailers, employees, suppliers and government. Strong two-way relationships with all of them are vital. Open and regular communication enables us to understand their needs and expectations and find opportunities to work together on social, environmental and economic issues.

Since 2013 we have conducted regular CR materiality assessments with our stakeholders to identify the sustainability issues they believe are most material to our business. We will conduct a new assessment in 2019 as part of our strategy review.

Oversight of our CR strategy is provided at the highest level by the Board CR Committee, chaired by our Chairman and attended by the Chief Executive (see page 65 of the 2018 Annual Report). The Board CR Committee is responsible for overseeing the management of the Group’s CR activities, with progress against operational objectives delegated to the CR Management Committee. The Group assessment of CR risks forms part of a comprehensive review, undertaken as part of the ongoing risk management process.

Issues our stakeholders consider most material to our business

Economic value generationDriving economic growth, for example, via employment and taxes

Labour rightsRespecting rights of workers, ensuring fair wages, providing secure employment

SafetyEnsuring customers, staff and those in surrounding areas are secure and feel safe

Community investmentAddressing social issues in our communities

Employee developmentSupporting employee wellbeing and developing their skills

Energy managementReducing energy use and seeking low-carbon sources of energy

Read more on our material issues and our materiality assessment process online

Decent work and economic growthAs a major employer, responsible for three per cent of the UK’s retail jobs, we know that fair and decent work is essential to economic growth and social mobility. Our employment programmes help local people develop fundamental skills and reduce unemployment. On page 9 we demonstrate our commitments to providing a supportive working environment for all our employees.

Sustainable cities and communitiesWith our centres at the heart of local communities, we all have an interest in making our communities more resource-efficient and inclusive. We want to ensure our centres are sustainable and we are already making our centres as inclusive and accessible as possible. See more on pages 13 and 22.

Partnerships for the goalsCollaboration is key to ensuring the SDGs are achieved. We are well positioned through our relationships with retailers, local organisations and charities to partner on mutual interests to deliver meaningful change. We already support our charity partners to build capability and are considering how we can do more and effectively measure impact.

Sustainable Development GoalsThe United Nations’ Sustainable Development Goals (SDGs) provide a universal framework for tackling the biggest sustainability challenges we all face. We have previously identified the three SDGs where we can make the biggest positive difference, outlined below. Our existing programmes already align well with these goals and we are using these to frame our long-term thinking as part of our strategy development work.

Behaving responsiblyWe are a long-term business. Through our strong relationships, we aim to create

sustainable positive change in our communities and the environment

Communities and economic contribution

Environmental efficiency

Relationships


Overview






Our focus on CR continued

The long-term trends affecting our business

Trend Why it matters to intu

Climate change and resource scarcityAs the impacts of climate change are becoming more understood the links between climate change and scarcity of resources will become clearer.

The increasing incidence of extreme weather events, such as flash flooding, heatwaves and drought, lead to reduced availability of resources, while demand continues to increase.

As a real estate company with a large portfolio we need to play our role in transitioning to a low carbon economy.

Energy efficiency and renewable energy technologies offer opportunities to further reduce our carbon emissions and address the growing demand for natural resources, keeping us within the 1.5°C needed to mitigate the worst impacts of climate change.

Exploring opportunities to maximise resource efficiency should reduce the risks to our supply chain and minimise costs.

Demographic changeBy 2050 there will be just two working-age people for every retired person in Europe.

It is expected that by 2030 two-thirds of retail spend will come from people over 55.

Social change will also lead to greater diversity and inclusion in the workforce, such as greater representation of women in work.

Being ready to adapt to changing workforce demographics will be critical to intu’s success, as will ensuring our centres are fit to meet the changing demands of our customers.

New types of training and apprenticeships will be needed to attract and retain older professionals, to capture talent and retain productivity.

Some older customers may need extra support through design, technology and enhanced customer service to continue to enjoy our centres.

Digital connectivity Digital technology is rapidly evolving allowing the physical and digital worlds to merge. Companies are harnessing artificial intelligence and big data to deliver new business models. The growth in new technologies allow companies new means to engage with stakeholders.

The structural shift to multichannel retailing enables intu to engage digitally with customers and reach new consumer groups in ways not previously possible with traditional bricks and mortar retail. New digital technologies like virtual reality can help create inclusive experiences for all our customers and we use our digital reach to offer community partners additional channels to raise awareness.

Urbanisation and smart cities Currently, 4.2 billion people live in cities, increasing by another 2.5 billion people by 2050. Cities already account for 75 per cent of the world’s natural resource use and 80 per cent of greenhouse gas emissions. Both air quality and wellbeing will be affected by increased urbanisation.

To be sustainable, our cities will need to develop new networks to support inclusive economic growth. With our centres strategically located in urban areas, we are well placed to deliver shared value for our communities and develop the green infrastructure needed to combat the negative impacts of increasing urbanisation.

Developing our 2030 strategyWe committed ourselves to launching a new 2030 vision in 2018, however, due to corporate activity over that period, strategy development has been delayed. We are now looking to fully develop our 2030 vision including the focus areas and new targets that will sit beneath during 2019.

We have already conducted a significant amount of scoping work as part of developing our 2030 vision. We have considered our contribution towards the SDGs and a variety of responsible business frameworks. We are now developing our understanding of how intu will fit into those spaces particularly the SDGs highlighted on page 5.

In 2019 we will assemble panels of internal and external stakeholders, including investors, retailers, sustainability professionals, customers, community groups and employees from across our business, to set our vision to 2030. From these discussions we will develop specific targets and broader objectives for achieving our new vision.

Our new strategy will consider how we will be impacted by the long-term trends affecting our business to ensure that we respond appropriately, as well as understand the opportunities that they provide.


Overview


Targets and commitments

Pillar Impact Material issue Our commitment Status 2018 performance


Community Community investment Support community issues relevant to intu customers £1.7m donated to community causes, engaged with 657 charities

Extend Retail Gold to all centres by 2025 Retail Gold handbook launched and 113 participants in training

Become an accessible destination of choice All intu centres held autism-friendly quiet hours

Dementia Friends training for over 100 staff members

Guided personal shopping trialled at four centres

Economy Economic value generation Provide positive socio-economic impacts in our communities £4.8bn gross value added (GVA)

People Employee engagement Increase volunteering to 35% by 2020 24% of staff volunteered

Increase employee awareness of CR Annual briefing for all staff, CR induction for new joiners


Waste Natural resource use 75% waste generated recycled by 2020 43% of waste recycled (see page 21)

99% waste diverted from landfill by 2020 100% waste diverted from landfill

Energy and carbon Energy management 50% reduction in carbon intensity by 2020 on 2010 levels 64% reduction since 2010

Water Natural resource use 10% reduction in water use per customer visit on 2010 levels

17% increase since 2010 (see page 22)

Healthy lifestyles Sustainable options Provide sustainable choices for our customers Additional bicycle parking installed at three centres, 20 electric vehicle charging points installed

Material issues reported elsewhere

Our customers Retail environment/shopping habits Improve customer experience See annual report, Making customers smile

Safety Safety Ensure our centres are secure and feel safe See annual report, Our people

People Labour practices and human rights Uphold and respect rights of all workers See annual report, Our people

Diversity and equality Support greater diversity and equality for our staff See annual report, Our people

Achieved On track Not achieved

Our targets and long-term commitments

With most of our existing targets either on track or achieved, we are in the process of setting new targets as part of developing our 2030 vision. The table below shows our progress on current targets


Overview


Good relationships

Positive and frequent engagement with our stakeholders allows us to build stability and deliver our purpose

Building relationships

Our relationships equip us to deliver our objectives and bring wider value to our stakeholders. We have seven core

stakeholder groups, defined as those that have an impact on and are impacted by our business. Our people are an integral part of our business and it is the relationships that they develop that connect our stakeholders to our business.

Meaningful relationships are built on trust and transparency and ensure a two-way dialogue with our stakeholders. We engage with our stakeholders in a variety of ways: from formal processes such as public consultations and materiality exercises, to day-to-day interactions by staff across the business. For example, many of our general managers are involved in town centre partnerships and chambers of commerce – a great example of advocacy. We try to include our retailers, where practicable, in our community engagement and environmental efficiency activities.

By taking into account the perceptions, beliefs and expectations that our stakeholders have of intu and balancing this with our corporate objectives, we hope to increase loyalty. Ultimately, we want our stakeholders to be advocates for our brand, which means nurturing and cultivating our relationships.

Through the community and economic contribution and environmental efficiency sections you will find many examples of how we work with our various stakeholders.

How do our relationships help us do better?

— loyalty and satisfaction — employee retention — innovation and business

improvement

— risk profile — advocacy

How we behave We encourage our employees to look at things differently and creatively, to consider carefully and then to act boldly and genuinely

Viewpoint

We put the customer at the heart of everything we do, and we know that genuinely engaging our people is the key to delighting our customers and retailers.”Geoff GrateleyOperations Director, intu Retail Services

Suppliers

Community Government

Customers

Investors

Retailers

Our people


Overview


We are proud of our employees’ commitment to our purpose

Valuing our people

Developing our people — we were the first shopping centre owner to achieve the Gold Investors in People award across our centres, recognising the opportunities we provide our employees for personal and professional development

— created ‘inspire me’ network to give staff access to senior people so that others can learn from their experience

— 80 per cent increase in training days in 2018 — we give our employees 15 hours each year to volunteer, 24 per cent take up in 2018

— we are working to improve our employee occupational health and wellbeing platform

Diversity and inclusion — workforce diversity and inclusion means ensuring our workforce is representative of the communities in which we operate

— our diversity and inclusion programmes are focused on providing opportunities to promote social inclusion

— we work with The Mentoring Foundation to enhance opportunities for women to reach executive roles

— our professional development policies support internal progression, demonstrated by over 100 internal promotions in 2018

— we have over 45 different nationalities represented in our workforce and the ethnic background of our staff is close to that of the country as a whole

We aim to provide customers with the best shopping and leisure experience by keeping our staff engaged with our

purpose. The logic is simple, engaged employees result in happy customers.

Our workforce both reflects our customers and the communities around our centres meaning we can better understand our communities’ needs. We aim to be an employer of choice and have a range of measures focused on providing equal opportunities for men and women as well as creating a culture of equality and inclusion.

Good quality jobs for all — over three per cent of the UK retail workforce is employed at an intu centre and we employ 2,538 people directly. We have a responsibility to ensure good jobs are available to all

— all staff are paid above the National Living Wage, and we do not use zero-hour contracts

— we have an accessibility working group and have signed up as a Disability Confident Committed employer. We aim to make sure our recruitment, training and development processes are equally accessible by people with a disability – as well as enabling all our staff to treat both colleagues and customers with respect

— we support pre-employment training through our Retail Gold programme. (Read more on page 16)

Impacting the employee experience

From our apprentices to our senior managers our employees are vital

to fulfilling our purpose. In 2018 our efforts to engage, motivate and inform were recognised when intu won the Institute of Workplace and Facilities Management (IWFM) Award for Impact on Employee Experience.

Our steps-to-success training programme for security, customer and environmental services teams ensures they provide consistent and compliant services and feel confident in their roles.

Our business benefits We know from our ‘Tell intu’ responses that the positive attitude of our teams makes a real difference to our customers: “I was served by two lovely ladies on the information desk yesterday, they were polite, extremely helpful and very cheery. This made me feel very valued and I will certainly be back again.”

We have strong recruitment processes which enable us to recruit the best people and we operate a system that encourages employee progression. In 2018 we filled 54 roles internally. The value of the efforts put into employee experience has been shown by the reduction in the number of people leaving in the first year and the reduction in overall turnover.

2,538 people directly employed by intu

69% of staff said volunteering improved job-related skills

45 different nationalities and ethnic backgrounds in the workforce

Read more about our people on page 56 of the annual report


Overview


https://www.intugroup.co.uk/media/5836/intu_ar2018.pdf

https://www.intugroup.co.uk/media/5836/intu_ar2018.pdf

We create value by supporting high-quality employment and training, investing in the local economy and bringing people together to create positive and lasting change


intu time donated in 2018

10,842hrs

People reached by our community activities in 2018

11,299

Supporting retail employmentpage 16

intu Trafford centre supports 999 dayOver 10,000 people came to enjoy the celebration of the emergency services at intu Trafford Centre. With over 100 vehicles to see and numerous safety demonstrations customers had fun and learnt vital skills

Winner: EPRA Outstanding Contribution to Society Award 2018



Overview

Long-term commitments What we said we would do in 2018 What we did Our plans for 2019

Improve employee health and wellbeing

Increase volunteering to 35% of staff by 2020

Encourage healthy lifestyles

24% of staff volunteered in 2018 Understand barriers to volunteering and relaunch our volunteering programme

Support community issues relevant to intu customers

Trial digital fundraising at London office with The Passage homelessness charity

Trialled the Percent app and provided mentoring support. Percent now have over 1,000 partners across four cities

Support Autisim Awareness Week, Dementia Awareness Week, Purple Tuesday, Recycle Week, World Cancer Day and World Mental Health Day

Accessible intu Make all centres dementia-friendly Encouraged centre take-up of Dementia Friends training. Supported Dementia Week across all centres

Trial additional assisted shopping focused on customers with additional needs particularly dementia

Extend Retail Gold to all centres by 2025

Bring all intu skills programmes under the Retail Gold umbrella to ensure consistently high standards in our skills delivery

Developed Retail Gold handbook to further support roll out across our centres

intu Uxbridge to undertake Retail Gold programme

Communities and economic contribution continued

Why it matters Our centres are at the heart of their local communities and our actions have a direct impact. We want to make sure it’s a positive one. For our centres and brands to flourish, we need to invest in our communities and to make sure there are the right skills in the local area to support our retail and leisure recruitment needs. We also have a role in responding to social needs and supporting causes important to our communities. We do this by working with our stakeholders to tackle social problems, develop education and training opportunities and create shared value.

We also understand the need to rise to the challenges of the future. According to the Office of National Statistics (ONS) demographic changes mean over 20 per cent of the population will be over 65 by 2026. We need to adapt to support this changing demographic.

and economic impact in these areas. We bring considerable investment to our local communities through employment – in several areas we are the largest local employer – the taxes we pay and by retaining local spending within communities. We empower and equip people to be ready for work through a range of skills and employability programmes.

Health and wellbeingEnsuring healthy and happy communities is central to our purpose. We want to help our customers and our staff improve their wellbeing and get involved in looking after their communities.

AccessibilityAlmost one-fifth of the UK population has a disability, according to the ONS. Our goal is to be known as the accessible destination of choice by providing the right support and enabling our

customers to visit our centres as independently as possible.

Charity and community supportOur high-footfall locations allow us to support charities to promote themselves and their causes to the wider public and raise funds in our centres.

Employee volunteering and wellbeingOur people are one of our biggest assets and one of the most valuable things we can offer to the community is our time and expertise. Volunteering also increases our employees’ wellbeing and we want to make sure we support our employees to live healthy and happy lives.

The labour market has changed and become more challenging for young people and this is expected to remain the case for the foreseeable future. Transitions into work for young people, particularly non-graduates, need to be reinvented. We need to be ready to adapt to these changes.

What’s importantWe work in partnership with local organisations on initiatives that bring prosperity and encourage inclusivity. We focus on supporting economic inclusion by improving skills and creating employment opportunities. We also invest in partnerships that address health and wellbeing, accessibility and youth inclusion.

Supporting local economies and employmentWe make a significant economic contribution to our communities and have an enduring social

Stakeholder viewpoint

The success and positive impact of our 11-year Green Gym partnership with intu has enabled TCV to bring to life in real time the tangible difference corporate partnerships can make for local communities, the environment and our stakeholders.”Douglas Palarm Head of Corporate Partnerships, The Conservation Volunteers (TCV)

Progress against our annual commitments



Overview

What we’ve doneEconomic contributionWith our tenants we support 129,476 jobs across the UK. These jobs represent over 3 per cent of the UK’s total retail employment – and an indirect wage bill of £2 billion. Of these 100,650 are direct jobs in our centres and 28,826 are indirect jobs – additional local employment that comes from spending by us and by businesses in our centres on goods and services. In 2018 we also generated 1,560 jobs from the £168.8 million we invested in developing our centres.

However, we are not just focused on our current impact. As a long-term company we are always investing in the future of our business and our communities. We have an investment pipeline of £600 million in the UK over the next 10 years, which we expect will create an additional 555 construction jobs and 838 jobs indirectly within the construction supply chain.

Skills and employmentWe work in partnership with local skills providers to deliver training and help people get work experience. This increases the pool of talent we and our tenants have to draw on and, ultimately, produces economic value. Our schemes provide a range of support from career mentoring, CV writing and mock interview workshops, through to providing real-life experience in retail and leisure settings. Participants gain practical skills and experience to improve their employment opportunities and raise their self-confidence and self-esteem. Our various programmes continue to deliver strong results, reaching over 470 people in 2018. Of these beneficiaries, 133 people were asked for feedback and 90 per cent reported that they had developed new skills or increased personal effectiveness.

Retail Gold, our most-established programme, runs courses for both intu Eldon Square and intu Metrocentre. In 2018, we worked with 30 of our retailers to provide work placements and 68 of the 113 participants found employment within 12 weeks of attending one of the courses. We are now seeing not only young people come through these schemes but also those who are returning to work following a break for various reasons. Ian Herron is one of our success stories; he joined the Environmental Service Team at intu Eldon Square this year following training at Gateshead College under the Retail Gold scheme. Ian said, through the scheme, he improved his self-confidence and undertaking mock interviews made him feel prepared. Ian loves his job and gets a great sense of satisfaction from it.

Health and wellbeingOur UK centres have helped create 10 Green Gym sites in partnership with TCV over the last 11 years. Green Gyms provide an opportunity for local people to get involved in reclaiming a community space. The physical work they undertake not only benefits their physical health but also their mental health. Volunteers who are looking for employment reported a marked increase in their confidence and sense of worth, helping them to secure employment. In 2018 we were awarded the EPRA Outstanding Contribution to Society Award (wellbeing category) for this partnership. TCV have reported to us that they have been able to use our long-term relationship as a model of best practice when securing partnerships with other corporates.

We also have a long-running partnership with The Outward Bound Trust, a charity that uses outdoor activities to help young people develop confidence. This year 36 Nottingham Academy students took part in the life-changing experience supported by intu employee ambassadors. The charity has reported to us that all participants went through a transformation and were now far more capable as a result of the project. As one student said, “I learnt that nothing is impossible if I say I can do it.” intu employee ambassadors also reported benefits: One of the ambassadors said, “It was very rewarding spending a week with the same children and watching them develop. The experience will help me think more about team roles at work and what I can do rather than what I can’t.”

1,41686% made a positive change

56% improved skills

64% improved quality of life

We are increasingly focusing on mental health issues for our customers, communities and our people. Our new partnership with mental health charity Blurt is just one demonstration of this. (See case study on page 13).

We believe we have a responsibility to support members of our communities who are struggling financially. With homelessness on the rise and a continued need for food banks we are supporting charities in the areas around our centres and close to our London office. In 2018 our people donated almost 300 hours of volunteering time to charities such as The Passage in London, Renfrewshire Foodbank close to intu Braehead and the YMCA ‘Sleep Easy’ hosted by intu Merry Hill.

Measuring success – economic contribution 2018

£4.8bn GVA

129,476 jobs supported

1,560 jobs created

£2bn wage bill

£168.8m investment


Measuring success – impact on beneficiaries

beneficiaries were measured for impact



Overview

AccessibilityIn 2017 we commissioned accessibility audits for each UK centre and our London office to identify opportunities to improve the customer experience in our physical environment, customer service and employee support. The audits were extensive and in 2018 we have been assessing the implications and implementing changes where possible. More structural changes may be implemented as part of refurbishment programmes.

We have continued to build our personal shopping service for visually impaired customers. In 2017 we launched the service at intu Braehead and in 2018 we launched trials at three further centres: intu Eldon Square, intu Merry Hill and intu Metrocentre. In 2019 we are launching a regular event at intu Merry Hill for visually impaired shoppers, where we will partner with retailers including Clarks, Hotel Chocolat and Lush to provide customers with further assistance to meet their shopping needs.

During 2018, as part of our journey to become the accessible destination of choice, we worked to understand the role we can play to support those with dementia in our centres. Initial undertakings included training over 100 of our employees as Dementia Friends and engaging our retailers on issues faced by those with dementia. Our activities during Dementia Week can be seen in the case study on page 14.

Promoting mental health

Over the last 10 years, mental health has become a topic of increasing concern

in higher education. Those aged between 16 and 24 are particularly vulnerable to mental health issues.

Changing demographics in higher education, financial and academic pressures have all contributed to a rise in young people with mental health problems. There is a growing demand for counselling services to meet mental health needs.

As part of our drive to improve the wellbeing of our communities we have teamed up with mental health foundation Blurt. Our first initiative together was aimed at the student demographic: through our student nights which are visited by over 90,000 young people.

We donated space to Blurt at nine centres to enable them to open up conversations with our customers and help remove the stigma of talking about mental health. Through the project they spoke to 430 students, reached 630 and recruited 23 volunteers to become a ‘Blurter’ – a member of their Support Squad – and complement their new university-focused peer-led programme. The event increased awareness of mental health, and young people reported being able to talk about their emotions and feeling less alone.

We also ran a Christmas campaign for shoppers and staff about self-care, providing information on how to cope with the stresses of Christmas. In 2019 we will trial a more comprehensive mental awareness programme for staff.

Supporting healthy lifestyles

A cross our Spanish assets we are committed to improving the health

and wellbeing of our local communities by promoting exercise, good nutrition and healthy-eating programmes.

In March 2018 we created the ‘XGames Xanadú’ at intu Xanadú. This provided a leisure space for all ages and all types of visitors. A series of activities were held including yoga for kids, talks from professional sports personalities and food workshops. We also erected a BMX pump track and held the first and only ‘Farinato Snow Race’ which was held on the snow-covered track with more than 400 customers and celebrities participating.

Throughout 2018 cooking workshops were hosted at intu Puerto Venecia. Guests enjoyed demonstrations and tastings while learning healthy and traditional recipes. The centre also partnered with Decathlon and Club Náutico Zaragoza to offer paddle surf classes on the lake.




Overview

Charity and community supportProviding space to promote awareness and raise funds continues to be the way we make one of our largest contributions to community organisations, both in the UK and Spain. In the UK this year we supported 657 charities and facilitated charitable donations of £616,798. The value of space donated was £525,914. Charities supported in our Spanish centres raised €71,400.

Raising funds is not the only benefit charities enjoy from taking up space in our centres. In these high-footfall locations, charities are able to raise awareness of their causes and educate the local community in areas such as health and wellbeing.

As well as the community activity we carry out that is directly related to our business activities we believe in getting involved in causes our employees and customers are passionate about. We worked with Cancer Research UK to mark World Cancer Day. We extended the invitation to a variety of cancer charities and supported six different charities across our centres. Specialist nurses offered support and advice to staff and customers on a range of topics including quitting smoking, keeping a healthy weight, and answering questions about their cancer risk or signposting to organisations that can help. We also sold unity bands on all our customer service desks and at our London office.

657 charities supported

10,842hrs time given

£1.7m total value of donations

£616,798 funds raised by charity groups

Engaging with dementia

On our journey to become the accessible destination of choice we partnered with

Alzheimer’s Society UK and Alzheimer’s Society Scotland as part of our support for Dementia Week.

In the run-up to Dementia Week many of our staff and retailers undertook Dementia Friends training. Some went a step further and became Dementia Champions, so that they could provide additional training in our shopping centres.

It’s important our customers know that intu provides additional support and customer service for people with dementia, their families and carers. Each centre designed a dementia awareness activity to encourage customers to get involved and learn something about how they can support people to live well with dementia.

Singing for the brain proved very popular as singing evokes memories and releases endorphins. Memory walls and memory trees also attracted a lot of positive attention from children and adults who wanted to share their memories and read those of others.

Many of our retailers supported our events by generously donating time or products to enhance the customer experience – everything from afternoon tea parties to knitting sessions. Lush provided hand massages as touch is very important for those with dementia and Apple put on technology demonstrations to help customers navigate their way around electronic devices.

Next year we plan to build on our commitment by relaunching the Dementia Friends training for all customer-facing staff and encourage even more retailers to take it up. intu Uxbridge are going to explore providing a shopping buddy service for customers with dementia so that they can be accompanied around the centre to enjoy some shopping and a cup of tea, while knowing they are in safe hands.

Accessibility continuedWe have also developed our work providing an autism-friendly shopping experience. In 2018 three of our centres ran regular autism hours with all of our other centres trialling quiet hours. In 2019 we are going to run regular quiet hours at all centres and are looking to develop autism-friendly sessions as part of our family clubs. A lot of shoppers have told us that although they do not have autism they find it easier to shop during quiet hours due to other reasons including other disabilities. With this in mind we plan to advertise our quiet hours as open to all who need a quiet and calm shopping environment.

Our accessibility commitment extends to our Spanish centres. In 2018 intu Spain, received a coveted accessibility diploma from Ilunion Tecnología y Accesibilidad, the leading accessibility organisation in Spain, which recognised our commitment to making our centres accessible to all.

Measuring success – charity support (UK)




Overview

Looking forward — continue our mission to be an accessible destination for all, by rolling out our personal shopping service for the visually impaired, increasing our range of autism-friendly activities and continuing to train more staff as Dementia Friends

— use the Retail Gold handbook to extend the programme into more centres as part of our target of covering all centres by 2025

— relaunch volunteering for intu employees to encourage take up with the aim of reaching our 35 per cent target

— at centre level support awareness-raising events on issues that are important to our customers such as World Cancer Day, Recycle Week and World Mental Health Day

Employee volunteering and wellbeingWe give our time and expertise without charge to a range of community initiatives on a daily basis. Everyone at intu has two days’ leave each year to volunteer either for a cause personal to them or to support intu’s community engagement. We have seen an increase in volunteering in 2018, with 855 volunteering activities by intu staff (2017: 796). This represents 24 per cent of employees (2017: 23 per cent). Not only does this raise awareness of and support for the social issues of our communities, it also benefits our employees. Volunteers have reported increases in their wellbeing resulting from their volunteering experiences.

Our matchfunding scheme contributes to and supports our employees’ personal fundraising efforts. In 2018, 36 staff raised £35,093 for 30 charities, which reached a total of £40,800 with intu’s contribution.

intu’s relationship with the Alzheimer’s Society really inspired our people. Five brave members of staff took part in ‘Abseil the Orbit’ in the iconic Queen Elizabeth Olympic Park, a further three organised a charity golf day and some of the intu Lakeside team took part in the Thurrock Cycle Marathon, raising over £5,000 for the charity. As one team member said “The Alzheimer’s Society is a charity very close to my heart, following my Baba’s (dad’s) battle with the illness…I have never been so scared in my life while trying to step off the Orbit and for a split second was about to bottle it! However I remembered why I was doing this and the feeling I had when Baba was diagnosed which was far more petrifying than the initial step.”

Working together to make an impact

A t intu we believe our stakeholder relationships create great value, by working together we can achieve more. The benefit of a collaborative approach to making a difference in

the community has been perfectly demonstrated by intu Braehead this year. intu Braehead wanted to improve the outside spaces available to local community-based organisations such as schools and sheltered housing estates. Since 2017 they have partnered with Cardwell Nurseries, the landscaping contractor at the centre, to organise volunteering in the community. The partnership enabled the centre to provide funds and volunteers eager to get to work and also get advice, expertise and tools from experts to make a real impact.

Working with our stakeholders helps increase community investment and develop our relationships, Cardwell Nurseries Managing Director Drew Gallagher said, “Our partnership with intu Braehead allows us to give something back to the community.” Over the past two years 273 hours of intu employee time has been invested, alongside 112 hours from Cardwell Nurseries. In 2018 three sites – Glentar Court sheltered housing, Wallace Primary School and Paisley RFC – had outdoor areas transformed into enjoyable spaces benefiting over 500 people. intu Braehead and Cardwell Nurseries have plans for more transformations in 2019.

Measuring success – volunteering

855 intu volunteering activities

86% of volunteers surveyed report improved wellbeing

£40,807 raised by intu staff with matchfunding




Overview

RetailThe gold standard in retail training

Supporting retail employment We are committed to promoting

worthwhile careers and training opportunities offered by intu and our tenants. We work with a range of external partners, to champion the diversity of jobs and careers found in the wider retail, leisure and hospitality sector. People are key to our commercial success as customers will return to destinations where the welcome is genuine and the service world class.

EducationUnder the banner of Retail Gold, we have worked with schools and colleges near several of our centres over the past decade. Our programmes work with our retailers, specialist consultants Employers in Education, schools,

colleges and Jobcentre Plus. Together we offer students and unemployed people the opportunity to develop the skills they need for a career in retail, hospitality or leisure. The school and college level course began in the northeast and since 2005, over 30 retailers at intu Eldon Square and intu Metrocentre have provided 54,000 hours of onsite training for more than 500 students. The Department for Education has commented: “Retail Gold is an excellent example of practice and impact in careers education.” Retail Gold also works with people of all ages who are currently unemployed and registered with Jobcentre Plus. In the northeast alone we hope to help 200 people into employment or further training during 2019. We are also developing additional training to support individuals who face more challenges to entering the labour market.

intu centres have always worked to create great partnerships with local schools. In late 2014 intu Derby launched a three-year Business Class partnership involving the centre and the City of Derby Academy. Business Class, developed by Business in the Community, provides a systematic framework for businesses to support young people by forming long-term partnerships with their schools. The goal is to help prevent social background predicting a young person’s success at school and beyond. The programme was extended to the end of 2018 to support the Academy’s pupils in year nine in 2015, through to the end of their schooling. intu Derby helped the pupils by giving them opportunities to get a taste of working life, gain confidence and learn vital

pre-employment skills including how to present and get the most from interviews and team work.

intu apprenticeshipsThe intu apprenticeship programme was rolled out in 2015 and reflects our commitment to recruiting and developing the right people to take our business forward. The programme reinforces our long-term commitment to promoting worthwhile careers for young people especially those who want to get into the world of work straight from school. 14 young people have completed the programme of whom 11 chose to stay with intu and another 15 are currently fulfilling their apprenticeships.

Retail Gold is designed to help the sector by equipping people with the right skills and attributes to deliver quality service in cafes, restaurants and shops. Not only does this enable companies to plug skills gaps in their workforce, it also provides local people with a route to employment or an opportunity to retrain and change careers.”Ivan JepsonDirector of Business Development, Gateshead College




Overview

Employment and training eventsOur centres are significant regional employers through our own operations and those of our tenants. We regularly host or sponsor employment and training events, often connected with our ongoing programme to extend and develop intu centres and serving the employment opportunities such schemes deliver.

A major event for intu and Watford in 2018 was the opening of a range of new retail, dining and leisure opportunities at intu Watford and our major sponsorship over the past two years of the Watford Jobs Fair, founded in 2011 by local MP Richard Harrington, provided the perfect shop window for the new jobs created by our development. The Watford Jobs Fair event links local companies with vacancies to those looking for a new job. In 2018 over 60 local companies exhibited and 4,500 people attended. At our stand current intu apprentices were given the

chance alongside other centre employees to act as ambassadors for intu on the day.

Celebrating retailRetail Matters Week is a campaign to celebrate and showcase the great talents of those who work in retail and the careers and initiatives implemented by the retail property sector. Retail Matters Week is organised by Revo, the retail property professional body, in partnership with retail property companies and retailers. intu led the development of Retail Matters through the Revo Community Engagement Working Group.

Given our long-term focus on supporting people to gain knowledge, skills and experience, playing a leading role in the campaign was an easy decision for intu. We’re committed to offering a variety of rewarding pathways to careers in retail and hospitality.

Retail Matters Week uses case studies and statistics to promote the talents of those who work in retail and the careers and initiatives implemented by the retail property sector. intu remains a visible and active supporter.

Involvement with Retail Matters demonstrates the ongoing community commitment of intu and others in our sector. The best retail, leisure and hospitality operators know that people are key to commercial success.

Retail Gold schools programme launched

2005 2014 2014 2015 2017 2018

Retail Gold college programme launched

Business Class Derby created

intu apprenticeship programme launched 2015

Sponsorship of Watford Jobs Fair started

Launch of Retail Gold handbook




Overview


Waste diverted from landfill

100%

Reduction in carbon intensity since 2010

64%

We work with our retailers, suppliers and industry experts to operate our centres efficiently, limit our use of natural resources and develop sustainably

Compost Cafépage 25

Big bug tourGiant British bugs toured our centres to reconnect children and adults to nature. Long-term partner TCV supported the tour by helping children plant seeds and explore what might be living in a bug hotel


Overview


Progress against our annual commitments

Long-term commitments What we said we would do in 2018 What we did Our plans for 2019

Reduce carbon emissions intensity by 50% by 2020 on 2010 baseline

Set new carbon reduction commitments using learning from energy efficiency and renewable energy pilots

Reduced our annual carbon emission intensity by 16% (64% since 2010)

Reduce annual electricity consumption by 5%

Continue our investment in onsite renewable energy

Set longer-term targets as part of 2030 vision development

Divert 99% of waste from landfill by 2020

Increase recycling rates to 75% by 2020

Understand resource-efficiency opportunities

Look at domestic opportunities for increasing recycling rates

Pioneered our ‘Compost Café’ initiative

Rolled out new independent waste reporting software

Establish future recycling targets

Centre waste improvement plans in place by Q2

Continue to identify opportunities for recycling

Reduce water intensity per customer by 10% by 2020 on 2010 baseline

Use One Planet principles to seek new opportunities in our developments

Installed new metering database to improve data quality

Identify further opportunities to reduce use of mains water as part of 2030 strategy development

Environmental efficiency continued

Why it matters Managing natural resources efficiently is essential for sustainable growth. It means we can reduce costs, create jobs through the green economy, improve our own health and wellbeing and respect the limits of the planet.

As the impacts of our changing climate are becoming better understood and increasingly visible, businesses and governments are becoming more ambitious with their climate change goals in order to limit global temperature rise to 1.5°C.

Both the rising demand for, and the decreasing supply of, natural resources means we face an increasing risk of rising costs and disruption to our supply chain. Increasing populations and demographic change will put further pressure on the built environment.

What’s importantWe recognise the need to minimise our impact on the environment and respect the limits of the planet. Through operating and developing our centres sustainably we can reduce our use of natural resources.

We continue to develop and drive environmental innovations across the business through Green Lab, our sustainability innovation group. We are considering the next phase of our sustainability journey, including how we transition from limiting our negative impact on the environment to having a positive one. Our activities are focused on five material issues.

Energy and carbon management Shopping centres are large consumers of energy and so reducing our carbon footprint is essential to limiting our contribution to climate

change. We use energy efficiently and are increasing our directly sourced renewable electricity and onsite generation. We have already reduced our carbon intensity by two thirds since 2010.

Waste management Retail, catering and leisure operations produce large amounts of waste. Our focus is to make sure that none of this waste is sent to landfill, to support recycling for as many materials as possible and to identify innovative solutions to reuse waste.

Water efficiency With a million visitors a day, our customer water use is significant. Our aim is to minimise our water usage while maintaining customer comfort. We are trialling and using new technologies to help us achieve this.

Sustainable transport A diverse and sustainable mix of transport modes is vital in ensuring the continued success of our centres. We work with key stakeholders to ensure our centres are accessible by all forms of transport. We aim to help customers, staff and tenants make more sustainable travel choices and support the creation of sustainable cities and communities through the shift to electrified transport systems.

Sustainable development We design and build our centres to be as efficient as possible. Our focus is to make sure our centres are built with consideration to reducing both their development and operational impact on the natural environment, while maximising social impact. Our centres must also be resilient to changing weather patterns and future global challenges.

Energy generation at intu ChapelfieldOur pilot solar energy project at intu Chapelfield continues to perform well producing 11 per cent of the centre’s annual electricity demand and we have plans in place to roll out solar panels at three more centres

19


Overview



Energy and carbon managementActing now to reduce our carbon emissions is essential if we are to prevent the worst impacts of climate change. We have reduced our carbon intensity by 64 per cent since 2010, exceeding our already ambitious target of 50 per cent by 2020. This puts us on an excellent trajectory to decarbonise our portfolio completely.

Our shopping centres are large consumers of electricity. We use energy efficiently, already purchase renewable electricity and are increasing our onsite renewable energy generation.

In 2018 we reduced our annual electricity demand by a further 4 per cent through good local management and completing phase four of our ambitious LED lighting project at intu Derby where we received a LUX award for the most outstanding project in the retail sector.

The installation at intu Derby replaced over 6,000 light bulbs throughout the centre including car parks, entrances, the management suite and plant rooms. We have already saved 1,400 MWh of electricity in 2018, equating to £168,000 in energy bills.

Since 2012 we have invested £11 million in our flagship LED lighting upgrade project. From the outset, the project was designed to maximise energy savings while reducing future maintenance operations and improving the customer experience.

Our gas consumption increased by 9 per cent in 2018 due to the unusually cold weather in the first part of the year resulting in additional heating demand across our centres. As electricity contributes to 75 per cent of our carbon emissions, we still managed to reduce

our carbon emissions by 16 per cent to 26,499 tCO2e (2017: 31,628 tCO2e).

We have reduced our electricity intensity every year since 2011 and so opportunities to further eliminate energy wastage have become harder to find. In 2018 we installed a new energy metering and data analytics platform across our 14 directly managed centres. This software will give us near real time information on our electricity, gas and water usage together for the first time. The new platform will assist our energy team in identifying new opportunities to reduce our consumption and control our costs. We also hope to use the visual dashboard displays to help engage our employees on the importance of reducing our energy demand to meet our targets.

Our energy management system is certified to international standard ISO 50001, demonstrating the robust processes that we have in place and our ongoing commitment to reducing our energy consumption and the carbon that we emit.

16%reduction in carbon emissions (tCO2e) in 2018 (2017: 17%)

4%reduction in electricity use (kWh) in 2018 (2017: 2%)

Absolute energy use and carbon emissions (tCO2e) at directly managed centres1Absolute energy use and carbon emissions (CO2) at directly managed centres

2014 000tonnes

20182015 2016 2017

120

100

80

60

40

20

60

50

40

30

20

10

Electricity (MWh) Gas (MWh) District heating (MWh)CO2 emissions (tonnes)

000MWh

00

1 2017 data restated

% of Energy Performance Certificate (EPC) grades across our directly managed centres

A 2% B 11% C 35%

D 27%

F 3%E 13%

G 9%We appointed a new supplier to support our Energy Performance Certificate (EPC) management plan. We have reduced our units rated F and G from 17 per cent in 2017 to 12 per cent in 2018

We engage with our tenants to encourage operational improvements in the energy performance of their units and enable them to reduce their own energy use, for example by mandating the installation of LEDs which improves thermal comfort compared to halogens.

Beyond ensuring that the energy we use is as efficient as possible, we now have onsite renewable electricity generation through solar panels at intu Chapelfield and intu Lakeside. The solar panel installation at intu Chapelfield continues to perform well, producing 11 per cent of the centre’s annual electricity demand or enough to power 57 homes for a year. Our ongoing investment in renewable energy reduces our carbon footprint and helps to provide stable energy pricing for ourselves and our retailers.

In Spain we have reduced our carbon footprint by 76 per cent through the purchase of 100 per cent renewable electricity, the installation of LED lighting and the promotion of energy reduction through behavioural change. Read more about our new ‘Positive Plan’ for intu Spain (see page 24).

Looking forward — review phase one of our LED lighting project to understand if further savings can be made now that the initial technology has been in place six years

— continue to investigate opportunities to install more solar panels at our centres as the business case becomes more attractive

— explore power purchase agreements

Measuring success – energy and carbon reduction (UK)


Overview


Waste disposal at directly managed centres

2014

60%20182015 2016 2017

32

8

16

24

70

80

90

100

Waste recycled (tonnes)Waste to landfill (tonnes)Waste to energy (tonnes)Waste diverted from landfill (%)

0tonnes


Waste managementWe produce relatively small amounts of waste in our own operations, so most of the waste we manage is produced by our retailers and our customers. We still have a responsibility to manage this waste well and provide opportunities for recycling.

We achieved our target to send zero waste to landfill in 2016. Now we are challenging ourselves to further minimise the impact of our waste through good management and innovative solutions that drive the circular economy, as part of our Green Lab innovation hub. Our Compost Café initiative launched by intu Chapelfield (see page 25) is an excellent example of this.

As we increase the food and leisure offering across our centres, the amount of food waste produced also increases. We have already installed biodigesters at intu Trafford Centre to reduce the volume of food waste having to be transported offsite. The system uses natural enzymes to break down food into waste water. Recognising the energy potential of food waste in line with the waste hierarchy, we have now installed a BioWhale food waste digester at intu Eldon Square to convert food waste into energy. Unavoidable food waste is emptied into the BioWhale, a compressed storage unit that has reduced collections of food waste from the centre by 85 per cent. Once full, the unit is taken offsite for anaerobic digestion to produce biogas and nitrogen-rich fertiliser. We are looking at opportunities to roll this out further.

The waste industry has been under the spotlight to improve the transparency of reported waste data by adopting a consistent interpretation of terminology and waste stream

100%waste diverted from landfill

43%waste recycled

57%waste recovered for energy

categorisation across suppliers. At intu, we have been on our own 18-month journey to improve the robustness of our data and this year we introduced a new waste reporting and auditing system in partnership with Don’t Waste UK. This transparent, accurate and consistent methodology has been introduced across our portfolio in 2018 alongside new waste contracts at 10 of our centres. This will ensure accurate and transparent waste reporting across our UK portfolio for 2019.

This recalibration of our waste data led to a fall in our reported recycling rate from 63 per cent in 2017 to 43 per cent in 2018. In light of the readjustment in how we report our waste data we will not meet our target to recycle 75 per cent of waste by 2020. A challenging but more realistic target will be considered for the future as part of our 2030 strategy development. All waste that is not recycled is sent to an energy-from-waste plant or anaerobic digestion.

Looking forward — develop waste improvement plans and establish future recycling targets

— expand our Compost Café and further pilot the collection of coffee cups for recycling

Waste disposal at directly managed centres

Customer engagement

Many of our centres ran initiatives throughout 2018 to engage staff,

customers and retailers in the importance of recycling. At intu Metrocentre, we supported Recycling Week by inviting the recycling champions from the local primary school to the centre for a behind-the-scenes look at how waste is segregated onsite for recycling.

We are all increasingly conscious of the impact of disposable coffee cups and single use plastics. We trialled the collection of coffee cups for recycling at intu Chapelfield and intu Trafford Centre. One bale requires 80,000 cups and so collecting sufficient volumes remains a challenge. We are planning to review and pilot this further in 2019.

Stakeholder viewpoint

Don’t Waste UK is delighted to be working with intu to implement its unique system across the portfolio. This is an industry-leading initiative providing independent waste data, advanced reporting and analytics, enabling focused and intelligent management of operational, environmental and cost improvements.”Michael Foreman Managing Director, Don’t Waste UK

Measuring success – waste management (UK)

21


Overview


Water use at directly managed centres

2014 20182015 2016 2017

500,000

450,000

400,000

350,000

300,000

Absolute water consumption (m3)

250,000m3

Water use at directly managed centres

1,610m³of water use per million customers


Sustainable transport We make sure our centres are accessible by all forms of transport – bus, rail, walking and cycling – as well as by car. We have long promoted sustainable travel choices among our employees, tenants and customers to help reduce single occupancy car use and play our role in improving local air quality.

Every centre and our London office has a sustainable travel plan managed locally, with national oversight provided by the sustainable travel team.

At a national scale, there is an urgent need to shift to electrified transport systems and reduce our reliance on polluting fuels. The transport sector is now the biggest contributor to UK carbon emissions.

At intu, our electric vehicle (EV) infrastructure continues to grow and while over 80 per cent of EV charging currently takes place at home, we know the provision of charging points at our centres as part of the wider public charging infrastructure is essential for encouraging further EV uptake. We work with local authorities and delivery partners to continue our investment in EV charging points, expanding our network from 49 charging points in 2015 to 100 in 2018, with more in the pipeline.

There were over 26,000 individual charges on our network in 2018, equating to a carbon saving of 137 tonnes compared to petrol and diesel cars. In reality the carbon saving is even greater as all our centres purchase renewable electricity.

Water management We manage our centres to use water efficiently. The majority of our water use is from our 35 million customers in our toilet facilities, as we use very little through our own activities.

In 2018 we reduced water use across our managed centres by 5 per cent and reduced our water intensity by 3 per cent to 1.6 litres per customer visit (2017: 1.7 litres per customer visit). We have achieved this without impact on customers’ experience, by installing water-efficient appliances in our customer toilets, as part of our regular mall refurbishments.

Despite our relatively low usage we still look at how we can reduce the water used in our own activities, using the latest cleaning equipment, which has saved us significant amounts of water over the past three years – with the added benefit of eliminating the need for polluting chemicals. intu Milton Keynes has joined several

of our centres in introducing waterless customer car washing which is expected to save the site 370,000 litres of water per year.

We have installed a new metering and data analytics platform for our utilities data which will, for the first time, provide us with near real time information on our water consumption, improve the quality of our reported water data and help identify target areas where we can further reduce water use.

Even though we have worked to reduce our water intensity since 2016 we are falling behind with our 2020 target due to an increase in water use since 2010, partly due to more accurate reporting of our water use.

In Spain, where water stress is more apparent, water efficiency is particularly important. The team conducts water efficiency surveys and has installed digital metering to enable weekly water monitoring and ensure any future issues can be picked up and rectified promptly.

Looking forward — continue to install water efficient appliances — revisit opportunities for water reuse at our centres

Water efficiency at intu Xanadú

In Spain, the team at intu Xanadú have reduced their year-on-year water use

for landscaping by 54 per cent.

Recognising that the centre water use was higher than benchmarks for similar properties, intu Xanadú undertook a water audit with their gardening contractor to identify opportunities to reduce water use.

As a result the ‘xeriscaping’ philosophy, or drought-tolerant landscaping, has been applied. Xeriscaping involves selecting plants that can thrive with very little or no additional water. Native plants were selected where possible, as well as other species well adapted to reducing water loss from evaporation and run off.

Mulch was added to the soil to keep plant roots cool, prevent soil from crusting, minimise evaporation and reduce weed growth.

The team also assessed all pipework, fixed any leaks and installed additional metering.

These actions have already saved 21.7 million litres of water compared to the 2016 baseline, reducing service charge costs as a result.

Measuring success – water consumption


Overview



Sustainable development Developing our centres sustainably allows us to respond to the longer-term global challenges that we will face. When designing our assets, we need to consider the changing climate, resource scarcity and demographic change to ensure that they remain sustainable over their lifetime.

Our Environmental Policy and Guide sets out our sustainability expectations, such as meeting BREEAM Very Good and how we expect our development partners to ensure our centres encompass sustainability in their design.

We recently opened our new extension at intu Watford. The scheme was designed to achieve BREEAM Very Good and features a sedum roof covering 1,000m2. The green roof will provide biodiversity benefits and help to slow the flow of rainwater which is particularly important during heavy rain to reduce the risk of flooding. The new mall and refurbished car park were designed without the use of any mechanical ventilation plant and instead use natural means of ventilation, therefore reducing energy consumption and the centre’s carbon footprint. The project consistently achieved a best practice score above 40 in the Considerate Contractor Scheme (CCS) and 98 per cent of construction waste was recycled or reused.

We installed solar panels as part of our pioneering leisure development at intu Lakeside (read more on page 25).

Looking forward — update our Group Environmental Policy and Guide

Our centres have 400 million customer visits a year and so a number of EV manufacturers are exploring showcase stores in our centres to help promote the next generation of sustainable car travel to our customers, which is critical to the creation of sustainable cities and communities.

All our centres have excellent public transport connections – eight have onsite bus stations and four have a direct connection to local rail stations. Working with local partners, we look forward to welcoming tram-links to intu Trafford Centre and intu Merry Hill in the future.

Local buses provide mobility for those without access to a private car, reduce social isolation and have a vital role in improving local air quality. We actively engaged with the Transport Select Committee on their inquiry into the health of the local bus market to demonstrate our support for this vital mode of transport for many of our staff and customers alike.

Looking forward — continue to invest in and promote sustainable travel options to our customers

— work with our partner organisations to ensure our centres remain accessible to all, in a sustainable way

intu Milton Keynes green wall

At intu Milton Keynes, we partnered with Makers Construction to install the

region’s largest living wall as part of our car park refurbishment project to improve the customer experience. The living wall is 40ft tall and features 84 plant species specially chosen for their leaf foliage, size and surface area to improve air quality and attract wildlife.

The wall and internal nature corridors have been designed to positively enhance ‘biophilia’, the human enjoyment with nature and sense of feeling good. The internal irrigation system is low flow and can be adjusted to compensate for the season, climate and location.

Sustainability was at the heart of the project which also included upgrading all external lighting to energy efficient LEDs and recycling 98 per cent of all waste generated. We sourced an innovative solution to resurface the car park that removed the potential need to send 300 skips of waste to landfill and installed 12 electric vehicle charging points.

Growth in cycling

The recent growth in cycling has increased demand for secure cycle parking and

storage. In 2018, we worked with local partners to install new secure bicycle parking at intu Braehead, intu Chapelfield, intu Trafford Centre and continue to explore options in other locations.

We actively promote cycle share schemes including Mobike in Newcastle, Derby’s innovative e-Bike scheme and Santander Cycles in Milton Keynes.

Our staff are also encouraged to participate in the UK Government’s cycle-to-work scheme. With an employee uptake of 8 per cent since we launched the scheme, we outperform the national average of 2 per cent.

By encouraging more active travel to our centres, we are also promoting healthier lifestyle choices. Evidence demonstrates having a healthier workforce leads to lower absence rates and delivers an increase in productivity. 100

number of EV charging points

Measuring success – vehicle charging

23


Overview



Our team in intu Spain launched its new sustainability roadmap in 2018, the

Positive Plan. In recognition of the impact that our centres can have on local communities and the natural environment in which we operate, the roadmap is designed to create a positive impact across the three pillars of sustainability. This means creating a positive impact for the environment, socially and economically.

We want to enhance the quality of life and wellbeing of all the communities around our three Spanish centres. Each centre has its own Positive Plan structured into three pillars: community engagement, environmental sustainability and relationships.

The Positive Plan introduces new ambitious objectives that are inspired by 10 key elements across the pillars such as skills programmes to support jobs within the sector as well as initiatives to make it easier for our customers to lead a positive lifestyle.

Environmental sustainability commitments include maximising eco efficiency, minimising impact on climate change, contributing to the conservation of biodiversity and prioritising sustainable forms of transport.

intu Spain received several awards recognising our commitment to sustainability. Notably intu Asturias won the ‘Best Sustainability Initiative’ Award, granted by the Spanish Association of Shopping Centres, for its partnership with the Oso Foundation. The partnership aims to highlight the foundation’s conservation work for the Cantabrian bear, a species at risk of extinction in Spain. The centre hosted the ‘Follow the footprint of the bear’ exhibition and sponsored 2,000 school children through an environmental education programme.

In 2019 we will go on implementing initiatives based on our Positive Plan, bringing a positive impact to the regions where our centres operate.

The support of intu Asturias allowed us to showcase our conservation project to around 80,000 people in 2018 culminating in an exhibition in the centre that was attended by 33,000 people. The support of intu Asturias is fundamental as the best showcase in Asturias for our project.”Pepín TuñónDirector, Oso Foundation

Community engagement: Create and strengthen links with the local community

Environmental sustainability: Manage our centres responsibly for future generations

Relationships: Build positive relationships with stakeholders

intu Spain Positive Plan


Overview



Compost Café

intu Chapelfield is pioneering our first Compost Café, an innovative scheme where

coffee grounds that make thousands of cups of coffee in the centre every day are collected to be reused for compost by local gardeners.

The concept is simple: centre retailers refill their non-recyclable coffee bean bags with their waste coffee grounds. The bags are collected by the centre team, labelled and displayed in the centre’s Compost Café shop for visitors to take free of charge. Retailers participating in the scheme and donating their coffee include Caffè Nero and Starbucks.

In the first six months 2,400 bags have been collected with 3,600 kg of coffee grounds saved from general waste. The scheme has since been rolled out to intu Potteries and our London office.

Compost Café received a silver award for environmental management improvement at the Green Apple Environment Awards and we will be growing this initiative in 2019.

Compost Café forms part of intu’s innovation hub, Green Lab, which identifies new sustainability initiatives and rolls out ideas to address the environmental challenges that businesses and wider society face today.

Development at intu Lakeside

Creating a new public realm with the introduction of quality green space was central to the design for our pioneering leisure development at intu Lakeside.

The 225,000 sq ft extension was built on a pair of underutilised tarmac carparks, replacing them with new outdoor spaces for adults and children to enjoy. Biodiversity enhancements included planting of grass and trees around the new public space.

The scheme also included our second onsite renewable electricity installation with the addition of 335 solar panels on the roof of the extension that will provide renewable, zero carbon electricity directly to our tenants. Additionally, over 99 per cent of construction waste was recycled or reused.

The project was designed to BREEAM Very Good and consistently achieved a Considerate Contractor Scheme (CCS) score of above 40, demonstrating excellence. The voluntary scheme CCS requires the construction project to respect the community, protect the environment, commit to a record of safety and value their workforce.

Caffè Nero is passionate about recycling and we already separate out and recycle our cups and other packaging with the support and help of the shopping centre, so when Ryan came and explained about the Compost Café scheme I was really keen to get involved.”Luciano VaccaroManager, Caffè Nero

25


Overview


Measuring performance

Materiality and stakeholder informationWe reviewed our materiality exercise in 2016 with consultants Corporate Citizenship. We revised our list of material issues to make them specific to intu’s operations. We will update our materiality review in 2019 as part of our 2030 vision strategy development.

The full information on our materiality and stakeholder engagement can be found on the corporate responsibility pages of our website at intugroup.co.uk.

Accordance with GRIBuilding and maintaining trust is fundamental to being a sustainable business and this requires providing transparent and robust information for our stakeholders.

We follow the GRI G4 framework for reporting to ensure we report consistently on our CR impact and performance through a globally recognised framework.

We report in accordance with the core requirements of GRI. Our material aspects for GRI 4, decided through the materiality process, are those issues which we describe as most material – or core.

For our full GRI index see the corporate responsibility page of our website at intugroup.co.uk

External recognitionBenchmarking against our peers helps us remain focused on best practice and ensuring continual improvement.

Global Real Estate Sustainability Benchmark (GRESB) – 52/100GRESB assesses the sustainability performance of real estate portfolios. It allows us to compare our sustainability performance against our peers. We scored 52/100 in our 2018 GRESB disclosure (2017: 58). We performed well in management and monitoring.

Dow Jones Sustainability (DJSI) Global and Europe Indices Member – 68/100The DJSI tracks the world’s leading companies in terms of economic, environmental and social factors. It allows us to monitor our performance against global best practice and informs us about issues of increasing importance to investors. In 2018 we scored 68/100 (2017: 65) and we qualified for not only the Global but also the Europe indices.

FTSE4Good Constituent Member – 3.2/5The FTSE4Good index and ratings measure the performance of companies on corporate responsibility standards. It allows us to measure our performance against our supersector peers. We rank in the 82nd percentile in our sector group (2017: 83rd).

FTSE/JSE Responsible Investment Index Constituent MemberJSE has developed criteria to measure the triple bottom line performance of companies in the FTSE/JSE All Share Index. This index allows us to measure our performance against our South African peers and is of value to our South African investors. We have maintained our position in this index.

CDP Disclosure – C gradeCDP’s Climate Change Survey requests information on behalf of 827 institutional investors and scores companies on their level of disclosure for climate risks. intu achieved a C grade in 2018 (2017: C).

Business in the Community – CommunityMark OwnerThe CommunityMark is a national standard that publicly recognises leadership and excellence in the community. It is awarded to companies that can demonstrate how they maximise positive and minimise negative community impacts, prioritising those that are most relevant to their business. intu achieved the CommunityMark in 2010. This was reaccredited in 2014 and we will go through reaccreditation again in 2019.

This section gives the details behind our stories of the year. We provide information on our accordance with the Global Reporting Initiative (GRI) and external engagement with working groups, indices and benchmarks

External participationWe know we don’t operate in isolation. We engage with our industry and peers and work with them on important industry issues. We are members of Revo, Better Building Partnership (BBP), London Benchmarking Group (LBG) and Business in the Community (BITC).



Overview

https://www.intugroup.co.uk/


Monitoring and measuring our performance is key to our ongoing success. This section provides material data for our directly managed centres in the UK and for our Spanish centres1

Additional disclosures can be found in the GRI/EPRA disclosure table online

Data appendix

UK key highlights

11,299people reached in the community

64%reduction in carbon intensity since 2010

10,842hours given to the community

£1.7min charitable donations

100%of assets recertified to ISO 50001

69%of intu volunteers improved job related skills

£4.8bnGVA

9,000training days

43%of waste recycled

Community

Environment

People

1 For more information on our approach to reporting on our Spanish centres please see page 32



Overview

Community contributions

Inputs

UK Spain

2016 20171 2018 2018

Cash £439,128 £513,750 £256,489 € 14,400 Value of time £247,683 £347,288 £271,039 € 1,975 In kind £484,651 £512,884 £525,914 € 57,000 Time (hours) 10,478 13,892 10,842 79Outputs

Leverage (facilitated donations) £340,944 £178,553 £616,798 € 71,400 Total donations £1,512,406 £1,552,475 £1,670,240 € 144,775 Total donations excluding leverage £1,171,462 £1,373,922 £1,053,442 € 73,375 Numbers reached – 3,645 11,299 Beneficiaries where benefits were measured – 2,278 1,416 Activities held – 1,309 245

Economic contribution (UK only)

Gross value added (GVA)UK

£4.8bnEmployment (jobs) 129,476Direct 100,650Indirect 28,826Tax £294.0mNational insurance and income tax £18.8mBusiness rates £275.2mInvestment expenditure £1.1bnPast five years £529.8mNext 10 years £600m

Our corporate community partnerships (UK only)

Centre intu

Bra

ehea

d

intu

Bro

adm

arsh

/ in

tu V

icto

ria

Cent

re

intu

Cha

pelfi

eld

intu

Der

by

intu

Eld

on S

quar

e

intu

Lak

esid

e

intu

Mer

ry H

ill

intu

Met

roce

ntre

intu

Milt

on K

eyne

s

intu

Pot

teri

es

intu

Tra

ffor

d Ce

ntre

intu

Uxb

ridg

e

intu

Wat

ford

40 B

road

way

(Lon

don

office

)

Tota

l pro

ject

sAlzheimer's Society • • • • • • • • • • • • • •BITC Business Class •Blurt • • • • • • • • • • • • • •Cardwell Nurseries volunteering partnership •Cancer Research UK • • • • • • • • • • • • • •First Give • •National Autistic Society • • • • • • • • • • • • •The Outward Bound Trust •Retail Gold • •Revival – Staffordshire Housing Trust •Tyneside Cinema • •The Conservation Volunteers • • •The Passage •Number of projects 5 5 4 5 6 5 5 6 5 5 4 5 5 4 69

Data appendix continued

Causes supported by intu and our customers in 2018 (%)

Arts and culture 3 Economic development 4

Environment 3Emergency relief

3Health 48Other 18Young people and education

21

How we donated

Value of time £271,039 In-kind £525,914 Cash

Facilitated£256,489£616,798

£1.7mdonated

Employee volunteering time

855volunteering activities

24%of intu staff used their volunteering time

• charitable partnerships of under 3 years

• charitable partnerships of over 3 years




Overview


Total greenhouse gas emissionsUK Spain

20171 2018 2018

CO2e (t) 31,628 26,499 241Scope 1 (t) 5,873 6,391 241Scope 2 (t) 25,755 20,107 –kgCO2e/m2 common parts area (CPA) 50 42 5tCO2e/£m net rental income (NRI) 69 59 4

Total energy (fuel) consumption

kWh

UK Spain

20171 2018 2018

Total electricity consumption 72,675,345 70,119,833 11,434,682Like-for-like 2017 portfolio 72,675,345 70,119,833 –Total district heating 3,346,820 3,858,440 –Like-for-like 2017 portfolio 3,346,820 3,858,440 –Total fuel consumption 31,928,091 34,743,952 5,149,361Like-for-like 2017 portfolio 31,928,091 34,743,952 –Total energy consumption 107,950,256 108,722,226 16,584,043Like-for-like 2017 portfolio 107,950,256 108,722,226 –Energy use (kWh/m2 CPA) 170 172 402

Total waste produced UK Spain

2017 2018 2018

Hazardous waste n/a n/a n/aTotal non hazardous waste (tonnes) 28,395 27,183 4,777Like-for-like 2017 portfolio 28,395 27,183 4,777Waste recycled (tonnes) 17,897 11,679 1,611% 63% 43% 34%Waste to energy (tonnes) 10,465 15,503 168% 37% 57% 4%Waste to landfill (tonnes) – – 2,998% 0% 0% 63%


EPRA gold

W e have been reporting in line with the European Public Real Estate

Association (EPRA) sustainability best practice reporting (sBPR) guidelines since 2012. We have now held the Gold Award for four years, from Silver in 2013. Gold means we have been recognised for our exceptional adherence to the sBPR guidelines with a score of over 85 per cent. We improved our score to 90 per cent in 2018.



Overview

Water use

m3

UK Spain

20171 2018 2018

Centre total 400,883 380,013 157,824London office 1,869 3,436 n/aTotal water consumption 402,752 383,449 157,824Water like-for-like 2017 portfolio 402,752 383,449 157,824Water intensity m3/m customers 1,663 1,610 3,8491 2017 data restated

Energy use

Centre

Total electricity consumption

(kWh)Energy generated

(kWh) CO2e tonnes

from electricity Gas (kWh) CO2e tonnes

from gas District heating CO2e tonnes

from DHTotal energy

use (kWh) Total

CO2e emissions

intu Braehead 7,705,006 – 2,181 2,225,751 409 – – 9,930,757 2,591intu Broadmarsh 1,156,818 – 327 – – 1,871,000 150 3,027,818 477intu Chapelfield 1,657,518 176,845 419 712,960 131 – – 2,370,478 550intu Derby 4,602,502 – 1,303 2,184,554 402 – – 6,787,056 1,705intu Eldon Square 7,064,921 – 2,000 14,168,048 2,606 – – 21,232,969 4,606intu Lakeside 7,739,868 – 2,191 3,307,254 608 – – 11,047,122 2,799intu Merry Hill 5,448,436 – 1,542 1,983,866 365 – – 7,432,302 1,907intu Metrocentre 5,175,908 – 1,465 1,287,611 237 – – 6,463,519 1,702intu Milton Keynes 1,380,294 – 391 1,467,636 270 – – 2,847,930 661intu Potteries 1,890,850 – 535 318,396 59 – – 2,209,246 594intu Trafford Centre 13,698,396 – 3,878 5,521,787 1,016 – – 19,220,183 4,893intu Uxbridge 1,728,450 – 489 545,588 100 – – 2,274,038 590intu Victoria Centre 5,317,505 – 1,505 – – 1,987,440 159 7,304,945 1,664intu Watford 5,098,449 – 1,443 288,191 53 – – 5,386,640 1,496London office, 40 Broadway 454,912 – 129 732,310 135 – – 1,187,222 263UK total 70,119,833 176,845 19,799 34,743,952 6,391 3,858,440 309 108,722,226 26,499intu Asturias 3,449,161 – – 188,982 64 – – 3,638,144 64intu Xanadú 3,400,321 – – – – – – 3,400,321 –intu Puerto Venecia 4,585,200 – – 4,960,379 177 – – 9,545,579 177Spain total 11,434,682 – – 5,149,361 241 – – 16,584,043 241

Water use at directly managed centresWater use at directly managed centres

2014 20182015 2016 2017

500,000

450,000

400,000

350,000

300,000

Absolute water consumption (m3)

250,000m3

Absolute energy use and carbon emissions (CO2e) at directly managed centresAbsolute energy use and carbon emissions (CO2) at directly managed centres

2014 000tonnes

20182015 2016 2017

120

100

80

60

40

20

60

50

40

30

20

10

Electricity (MWh) Gas (MWh) District heating (MWh)CO2 emissions (tonnes)

000MWh

00




Overview

Waste management

CentreRecycled

(t)Recycled

(%)Waste to energy

(t) Waste to energy

(%) Waste to landfill

(t)Waste to landfill

(%)Total waste

(t)

intu Braehead 676 32 1,470 69 – – 2,145intu Broadmarsh 48 36 84 64 – – 132intu Chapelfield 395 39 608 61 – – 1,004intu Derby 333 19 1,384 81 – – 1,717intu Eldon Square 976 40 1,495 61 – – 2,471intu Lakeside 1,570 38 2,616 63 – – 4,186intu Merry Hill 1,092 41 1,552 59 – – 2,645intu Metrocentre 2,545 71 1,034 29 – – 3,579intu Milton Keynes 203 41 299 60 – – 502intu Potteries 399 39 632 61 – – 1,032intu Trafford Centre 2,370 45 2,885 55 – – 5,254intu Uxbridge 342 39 539 61 – – 881intu Victoria Centre 358 42 505 59 – – 863intu Watford 367 49 377 51 – – 744London office, 40 Broadway 6 20 23 80 – – 29UK total 11,679 43 15,503 57 – – 27,183intu Asturias 328 46 – – 385 54 713intu Xanadú 582 29 – – 1,435 71 2,016intu Puerto Venecia 701 34 168 8 1,178 58 2,047Spain total 1,611 34 168 4 2,998 63 4,777

Health and safety incidents (UK only)

2016 20171 2018

RIDDOR incidents 23 6 7 Employees and contractors 261 337 178 Members of the public 1,139 1,188 447 Fatalities: Employees, contractors, members of the public – – –


Employee data (UK only)

2016 2017 2018

Total employees 2,555 2,467 2,538 Total training days 4,257 5,004 9,036 Average training days per employee 2 2 3.6 Whistleblowing incidences 3 10 6 Grievances 42 34 44 Average employee sick days 3 2.5 4.4


Waste disposal at directly managed centresWaste disposal at directly managed centres

2014

60%20182015 2016 2017

32

8

16

24

70

80

90

100

Waste recycled (tonnes)Waste to landfill (tonnes)Waste to energy (tonnes)Waste diverted from landfill (%)

0tonnes

Average training days per employee (UK only)Average training days per employee

20182016 2017

4

2

0days



Overview

Gender pay gap

The 2018 CR report covers the period 1 January 2018 to 31 December 2018.

Organisational boundaries and coverageWe apply the ‘operational approach’ to the scope of our environmental management and community engagement activities in line with the Greenhouse Gas (GHG) protocol definition. This means that we report energy, water and waste data alongside our community investment activities for the 14 UK centres where we have direct management control, as well as our London office, 40 Broadway.

100 per cent of assets under our operational control (direct management control) are reported, making up 79 per cent of our portfolio by value ie excluding our joint ventures and Spanish centres. When we refer to directly managed centres in 2018 we are referring to intu Braehead, intu Broadmarsh, intu Chapelfield, intu Derby, intu Eldon Square, intu Lakeside, intu Merry Hill, intu Metrocentre, intu Milton Keynes, intu Potteries, intu Trafford Centre, intu Victoria Centre, intu Uxbridge and intu Watford.

Our three Spanish centres, intu Asturias, intu Puerto Venecia and intu Xanadú are managed by a third party and we do not have direct management control.

We report on landlord-obtained energy and water for the common part areas (CPA) of our centres ie landlord consumption. This includes our directly managed car parks. In a small number of cases where separate meters are not in place, some tenant consumption is included in our figures.

In line with the EPRA guidelines, we report on our like-for-like portfolio that covers assets held consistently for two years with no major works. Our portfolio remained static in 2017 and 2018.

Data collection and governance CR data, both environmental and community, is collected monthly from each centre and our London office and is collated centrally.

CR data is disclosed to the CR Management Committee three times per year. Our internal audit function visited two centres during 2018 to conduct CR health checks. The health check, carried out as part of a wider centre audit, is a detailed review of the underlying process for capturing data and includes sampling records eg waste transfer notes, invoice data or charity donation receipts. Our external assurers, Corporate Citizenship, visited two centres in 2018 as part of their assurance process.

Restatements to 2017 dataA number of restatements have been made for our 2017 data. This is due to errors identified in the previously published data as well as updated accurate data provided by our energy supplier. Restated figures are highlighted in the data appendix tables.

Mandatory greenhouse gas (GHG) emissions reporting We have calculated our carbon emissions as required by the Companies Act 2006 (Strategic Report and Directors’ Reports) Regulations 2013. Carbon emissions are broken down into three scopes. We report:

Scope 1 emissions – our direct emissions from the gas consumption at our London office and the common parts of our directly managed shopping centres.

Scope 2 emissions – our indirect emissions from purchased electricity and district heating at our London office and the common parts of our directly managed shopping centres, including car parks.

We have calculated our carbon footprint using the 2018 DEFRA GHG conversion factors for company reporting and a supplier factor for district heating.

The DEFRA GHG emission factors for electricity are based on the national grid average and so part of our reported carbon reduction is a result of the decarbonisation of UK electricity due to the fall in coal and increase in renewable electricity generation.

While we provide the carbon emissions of our Spanish centres calculated using factors provided directly by the electricity supplier, these are not included within our operational control boundary for mandatory GHG emissions reporting.

Other environmental metricsOur water reporting does not include intu Victoria Centre as consumption is charged on a rateable value and is not metered.

On page 21 we explained the process that we have gone through to readjust how we calculate our waste data and apply consistent definitions to how we categorise waste for recycling and recovery across the multiple waste service providers that support us. 11 of our 14 centres have a minimum of six months of accurate data independently audited by Don’t Waste. Prior to this, due to the inconsistencies in how our waste service providers categorised waste at each centre, we have estimated the

tonnage of waste recycled by applying an average of the audited recycling rate. As a result, 18 per cent of our 2018 waste data is estimated. We will have 100 per cent accurate and independently audited data in 2019.

Normalisation We report consumption data on an absolute, like-for-like and normalised basis to allow comparisons to be made between reporting years. Our carbon intensity uses the common part areas (m2) of our centres . Our water intensity uses customer visits to each of our centres as water consumption correlates to footfall.

Community investmentOur community investment is calculated using the London Benchmarking Group (LBG) framework and we report on the 14 centres where we have direct management control. We also provide limited information on our Spanish assets.

Our definition of community engagement covers all types of community programmes and stakeholder engagement.

Leveraged donations refer to donations which were made by individuals or organisations outside of intu but in direct relation to an intu community activity.

Where we report ‘time’ we are referring to all time donated to the community including management and set up time. Volunteering time refers only to specific volunteering activities.

Economic contribution dataThe data from Lichfields on the economic contribution of intu (see page 12) includes data from all of our UK centres, not just those that are directly managed. As such this data includes all centres listed as part of the 2018 portfolio and additionally includes: The Mall at Cribbs Causeway, St David’s, Cardiff and Manchester Arndale. GVA includes: investment expenditure, intu operational jobs, tenant jobs and tax contributions.

Reporting indicators and assuranceWe report in line with the EPRA sustainability best practice reporting guidelines and GRI G4 indicators. Please see the GRI/EPRA table online, which sets out where all CR performance indicators can be found in the CR report, annual report and intu website.

We have the content of our CR report externally assured in accordance with ISAE 3000. Selection of our assurers is approved by the Board CR Committee.

We aim to be an employer of choice and to treat our employees fairly and pay them appropriately for their work. We welcomed the gender pay gap legislation introduced in 2017 and the increased pay transparency that can result. This is the second annual disclosure of the gender pay gap, which compares the average pay of men and women within the organisation. This is different to equal pay, which takes into account the nature of a role and its seniority. If there are more men than women in senior positions, as is currently the case at intu, this results in the overall average of the pay of men being higher than the overall average of the pay of women. intu also has two very different populations in our management services (MSL) and retail services (RSL) businesses and full details for each business are on our Group website. Overall, our median pay and bonus gaps are significantly smaller than the national picture with a slightly higher proportion of women than men receiving bonuses.

Pay gapDifference between the average pay of men and women

Bonus gapDifference between the average bonus paid to men and women

Median 4.7% 0.0%

Mean 9.7% 54.4%

Proportion of women receiving a bonus

Proportion of men receiving a bonus

85.5% 83.0%

For more information on gender pay gap including a breakdown for different groups of employees within the business please see www.intugroup.co.uk/en/about-us/at-a-glance/gender-pay-gap/

Notes to the report



Overview

https://www.intugroup.co.uk/en/about-us/at-a-glance/gender-pay-gap/





Independent Assurance of intu’s Corporate Responsibility Report 2018: ISAE3000 Statement

The nature of the assuranceThis is a report by Corporate Citizenship for intu properties plc.

Corporate Citizenship has undertaken limited assurance of intu’s Corporate Responsibility Report 2018 against the GRI Principles for Defining Report Content (materiality, stakeholder inclusiveness, sustainability context and completeness) and Principles for Ensuring Report Quality (balance, comparability, accuracy, timeliness, clarity and reliability).

The assurance covers the period from 1 January 2018 to 31 December 2018.

intu is entirely and solely responsible for the production and publication of the data assured, Corporate Citizenship for its assurance.

The assertions and data in the report relates to intu’s performance in their UK and Spain operations. intu applies the operational approach in reporting GHG emissions in line with the GHG protocol definition.

Our work has involved reviewing selected data claims and assertions included in the report relating to UK operations against the GRI principles for Defining Report Quality. The carbon emissions data has been prepared using the UK Department for Environment, Food and Rural Affairs (DEFRA) Environmental Reporting Guidelines: Including mandatory greenhouse gas reporting guidance (June 2013) and the appropriate GHG conversion factors for company reporting, as published by DEFRA.

3. Review of key assertions in the report against evidence provided by intu, including collated totals spreadsheets, source data from reporting systems, internal presentations, survey data and invoices.

4. Commentary on the content and assertions on two draft versions of the Corporate Responsibility Report, provided by intu’s Corporate Responsibility team in February 2019 and March 2019 respectively, assessing the content in line with the GRI Principles for Defining Report Content and Ensuring Report Quality.

Our experience and independenceCorporate Citizenship is a specialist management consultancy, advising corporations that seek to improve their economic, social and environmental performance around the world and is a leading assuror of corporate responsibility and sustainability reports. This is the sixth year that Corporate Citizenship has provided independent assurance services in relation to intu’s corporate responsibility reporting.

ConclusionBased on the scope of work and assurance procedures performed, nothing has come to our attention that causes us to believe that intu’s Corporate Responsibility Report 2018 is not prepared, in all material respects, in accordance with the GRI Principles for Defining Report Content and Principles for Ensuring Report Quality and the DEFRA Environmental Reporting Guidelines.

CommentaryNothing has come to our attention during the assurance process to suggest that there are significant errors or misstatements in intu’s data, or that processes are not in place to prevent these.

GHG quantification is subject to inherent uncertainty due to factors such as incomplete scientific knowledge about the global warming potential of different GHGs and uncertainty around the models and parameters used in estimating GHG emissions.

This engagement was performed in accordance with the International Standard on Assurance Engagement (ISAE) 3000 (Assurance Engagements other than Audits or Reviews of Historical Financial Information) and the relevant subject-matter specific ISAE for GHG data (ISAE 3410, Assurance Engagements on Greenhouse Gas Statements).

Corporate Citizenship has complied with the requirements for independence, professional ethics and quality control as stipulated by ISAE 3000.

Assurance work performedThe assurance work was commissioned in October 2018 and was completed in March 2019. Detailed records were kept of meetings, assurance visits and correspondence relating to the assurance. The assurance process was undertaken by a team of three, including one consultant, a researcher and a director acting in a supervisory capacity.

The assurance engagement was undertaken to a limited level, and involved the following activities:

1. Site visits to intu Victoria Centre on 16 November 2018 and intu Braehead on 20 November 2018, assessing data and processes through interviews with those responsible for the main elements of corporate responsibility at each centre.

2. Interviews with issue owners at intu 40 Broadway regarding the data and processes informing intu’s Corporate Responsibility Report on 31 January 2019, including those responsible for energy and water; waste; accessibility; sustainable travel; human resources; community; and internal audit.

The 2018 Corporate Responsibility report is an accurate reflection of intu’s performance in creating positive value for society and the environment in the last year. The content provides clear and transparent progress against targets. intu is now well placed to set new and stretching targets as part of their strategy review.

A notable success in 2018 has been the implementation of a new waste data collection platform across all centres. This, along with a tender process for new waste contractors at all centres, had the potential to cause disruption for data collection. It is encouraging to see robust data collection in spite of these changes. The new system has enabled a move away from manual data recording, improving accuracy for waste data.

To improve the capture of community data across centres, a unified data collection system was successfully piloted in 2018. The updated tool for community data collection provides community managers with clearer oversight of project totals throughout the year. While training has already been provided, we recommend regular check-ins are held with each centre to ensure successful adoption of the new system.

Corporate Citizenship LimitedLondon 15 March 2019

Assurance



Overview

intu properties plc 40 Broadway, London SW1H 0BT

intugroup.co.uk

© 2019 intu properties plc

This document is printed on Claro Bulk, a paper containing 100% virgin fibre sourced from well managed, sustainable, FSC certified forests. The pulp used in this product is bleached using an elemental chlorine free (ECF) process.

Designed and produced by


corporate responsibility report 2018significant economic contribution gross value added (gva) in...

Documents