Disclosures on Management Approach

Market Leadership, Sustainable Growth, Financial Performance and Capital

Disclosures on management approach

= fully reported

= partially reported

= not reported

STANDARD DISCLOSURES PARTY II: DISCLOSURES ON MANAGEMENT APPROACH (DMAS)
CRESS DMAs Description Reported Cross-reference/Response Reference link

Disclosure on Management Approach EC

Aspects Economic performance

2014 financial highlights Annual Review pgs 62-63

2014 highlights Annual Review pg 5

Risk management Annual Review pg 73

Managing risk Annual Review pg 11

Five year summary Annual Report pg 3

UNPRI Transparency report

Market presence

About DEXUS

About DEXUS Annual Review pgs 2-3

DEXUS overview

Properties

Strategy Annual Review pgs 6-11

Indirect economic impacts

Stakeholders

Strategy Annual Review pgs 6-11

Delivering commitments

Disclosure on Management Approach EN

Aspects Materials Not applicable - The volume of materials used is currently outside DEXUS's direct control. DEXUS therefore partners with its suppliers to achieve the most environmentally sound material selection and use.
Energy The Executive Director Finance and Chief Operating Officer (COO) has overall operational responsibility for DEXUS's energy use. For information on DEXUS's energy consumption and environmental policies view links.

Environment

Environmental performance

Environmental statement

Property performance

Water The Executive Director Finance and Chief Operating Officer (COO) has overall operational responsibility for DEXUS's water use. For information on DEXUS's water consumption and environmental policies view links.

Environment

Environmental performance

Environmental statement

Property performance

Biodiversity

The Executive Director Finance and Chief Operating Officer (COO) has overall operational responsibility for DEXUS's biodiversity policies. For information on DEXUS's environmental policies view links.

DEXUS has a Biodiversity Policy in place. DEXUS is committed to protecting and enhancing biodiversity. As operations are primarily in metropolitan areas and developments are generally on brownfield sites, the ability to enhance biodiversity can be limited however DEXUS strives to address biodiversity principles in each development.

Our Environment

Biodiversity

Biodiversity Policy

Emissions, effluents and waste The Executive Director Finance and Chief Operating Officer (COO) has overall operational responsibility for DEXUS's emissions, effluents and waste. For information on DEXUS's emissions, waste and environmental policies view links.

Environment

Environmental performance

Environmental statement

Property performance

2014 NCOS public disclosure summary

Land Degradation, Contamination and Remediation DEXUS has policies and management plans in place to deal with contamination and the management of hazardous material (HAZMAT's) such as Asbestos (each site has a HAZMAT Plan). These are contained within the relevant site specific environmental management plans and also DEXUS's overarching Property Services Environmental Management Manual.
Products and Services

About DEXUS

About DEXUS Annual Review pgs 2-3

Environmental statement

Delivering commitments Annual Review pgs 22-25

Property performance

Compliance

Corporate governance

Compliance committee terms of reference

Transport The Executive Director Finance and Chief Operating Officer (COO) has overall operational responsibility for DEXUS's transport use. The DEXUS travel policy is embedded within the internal corporate credit card (AMEX) policy. Transport related greenhouse gas emissions are reported within the DEXUS 2014 NCOS Public Disclosure Summary

2014 NCOS public disclosure summary page 8

Overall

Environmental statement

Environment

Environmental performance

Disclosure on Management Approach LA

Aspects Employment The EGM, People and Culture has overall operation responsiblity for DEXUS's employment, labor management, training and education policies.

People and culture Annual Review pgs 26-31

Employees

Careers

Employee performance

Labor/management relations The EGM, People and Property Services has overall operation responsibility for DEXUS's employment, labour management, training and education policies. When there are legislative changes, key leaders are trained.

People and culture Annual Review pgs 26-31

Employees

Careers

Employee performance

Occupational health and safety

DEXUS operates a safety management system, which is documented within the Group's Corporate Work Health, Safety and Environment (WHS&E) Manual, which is certified under BS OHSAS 18001 - an internationally applied Standard for occupational health and safety management systems. Specifically the management system addresses aspects/impacts (i.e. waste generation, energy/water consumption) and hazards/risks (i.e. ergonomics/manual handling and contractor management) through the lifecycle of DEXUS's property and funds management operations. Within this system DEXUS offers an Employee Assistance Program to assist employees with mental health issues.

Corporate goverance Annual Review pg 73

Work health, safety and liability statement

Employees

Employee performance

DEXUS procurement policy

Training and eduction

The EGM, People and Property Services has overall operation responsibility for DEXUS's employment, labour management, training and education policies.

DEXUS's Training and Education Policy outlines the framework for training employees with a focus on: - ensuring that the employee has and maintains the necessary knowledge, skills and experience required to perform their job functions and responsibilities fairly, honestly and efficiently - developing new knowledge and skills - updating knowledge and skills for changes to legislation, regulatory policies and standards, company policies and procedures, economic and financial developments, new products and new market practices. - ensuring compliance with relevant industry training standards and qualifications; and - increasing awareness of DEXUS's Compliance policies and expectations relating to ethics and integrity.

Responsible Managers undertake skills gap assessments for each employee to ensure they have the necessary capacity, competence, knowledge, training, seniority and skills to perform their Role. Training plans are also prepared and implemented to maintain and update employee skills and knowledge.

People and culture Annual Review pgs 26-31

Employees

Employee performance

Delivering committments

Risk management Annual Review pg 73

Diversity and equal opportunity DEXUS believes that diversity provides a competitive advantage and through diversity the Group makes better informed decisions which create further value for investors. DEXUS has in place a Diversity policy that supports and encourages diversity at all levels; the Board of Directors, the senior management team and throughout our organisation.

People and Culture

Delivering commitments

Diversity principles

Diversity target

Employees

Employee performance

Equal remuneration for women and men

The EGM, People and Property Services has overall operation responsibility for DEXUS's employment, labour management, training and education policies. The annual remuneration review process incorporates a review of gender pay gaps to inform management of gaps in remuneration. This process is conducted at the time of remuneration review, annually.

Remuneration breakdown by gender and ratio of basic salary by employee category can be found in the Performance Pack.

Diversity principles

Employee performance

Disclosure on Management Approach HR

Aspects Investment and procurement practices

The EGM Strategy, Transactions and Research and the EGM, People and Property Services have overall operational responsibility for DEXUS's investment and procurement practices (respectively).

DEXUS's suppliers differ in size and scale, and their capacity to integrate sustainable practices into their operations varies. As a result DEXUS takes an individual and long term view to managing and maintaining its supplier relationships. DEXUS aims to support and challenge its suppliers to deliver on more sustainable procurement initiatives and low carbon solutions throughout the Group's supply chain. To communicate DEXUS's expectations, all suppliers are required to operate in line with the Supplier Code of Conduct and understand DEXUS's procurement requirements and commitments outlined in the Sustainable Procurement Policy and Supplier Code of Conduct. Issues affecting suppliers are also material to DEXUS. Communicating expectations and partnering with suppliers will lead to mutual beneficial financial, social and environmental outcomes.

Delivering commitments

Suppliers

Supplier performance

Supplier code of conduct

Non-discrimination

The EGM People and Culture and GM Risk and Governance are responsible for DEXUS's policies and practices for recruitment and career development to avoid discrimination.

DEXUS strives to create a workplace that is free from discrimination or harassment and is committed to ensuring all employees have an equal opportunity to succeed.

The Employee code of conduct sets out policies and guidelines that aim to ensure that employees meet the highest ethical and professional standards, with regular training conducted on it.

An external Disclosure Management Service Provider has been appointed to whom employees can make anonymous disclosure of discriminatory or other inappropriate behaviour, as part of the Good faith reporting policy.

Employee code of conduct

Employees

Supplier code of conduct

Freedom of association and collective bargaining DEXUS does not restrict employees' freedom of association or treat differently those who have such associations. Additionally, DEXUS does not have any collective agreements as all employees are employed under individual contracts. To date there have been no occurrences of collective bargaining or trade union involvement.
Child labor None of DEXUS's operations or supply chains involve the use of child labour.

Supplier code of conduct

Prevention of forced and compulsory labor All DEXUS operations are in Australia and New Zealand, which have in place legislation protecting human rights.

Supplier code of conduct

Security practices Not applicable as DEXUS does not directly employ security personnel.

Indigenous rights DEXUS respects the rights of indigenous peoples and engages with local communities in the environments in which it operates. All employees are required, on at least an annual basis, to undertake training on the Code of Conduct. The policy outlines DEXUS's expectations of all employees. The Code of Conduct includes human rights.

Employee code of conduct

Corporate governance

Diversity principles

Human rights policy

Assessment DEXUS does not undertake targeted human rights reviews and/or impact assessments.

Remediation

100% of DEXUS operations are in Australia and New Zealand, which have in place legislation protecting human rights. Further, all significant investments and contracts are in compliance with current legislation protecting human rights.

All employees are required, on at least an annual basis, to undertake training on the Code of Conduct. The policy outlines DEXUS's expectations of all employees. The Code of Conduct includes human rights.

In June 2014 DEXUS conducted a Supply Chain Risk Profiling Survey involving 12 key suppliers across its preferred supplier panel to gain further insight into their day-to-day CR&S systems and practices including human rights aspects.

Human rights policy

Employees

Suppliers

Disclosure on Management Approach PR

Aspects Customer health and safety The GM, Compliance, Risk and Governance has overall operational responsibility for DEXUS's policies and practices for customer health and safety. The health and safety of tenants and customers is considered at each of the stages of the property management life cycle, across all assets.

Work health, safety and liability statement

Product and service labelling

The EGM, People and Property Services has overall operational responsibility for DEXUS's sustainability policies and practices, including rating of its properties.

DEXUS has undertaken both voluntary ratings of its buildings using the Green Star and NABERS rating tools, and the disclosure of its NABERS ratings as required under legislation i.e. Commercial Building Disclosure (CBD).

Marketing communications

To ensure appropriate, accurate and compliant communications, all marketing and communications materials are reviewed and signed off by the relevant department heads. DEXUS has in place an online materials approval database to facilitate this sign-off process, which also acts as an audit trail for all external marketing and communications materials.

Customer privacy

DEXUS ensures that customer privacy and customer data is protected by applying best practice such as only storing customer data required to in order to perform the intended purpose; limiting user access control to systems, applying tight password controls, and re-certifying access on an annual basis; conducting external audits of IT systems and processes; minimising exposure of systems to external access; and conducting security penetration testing of external facing systems (websites).

DEXUS has an internal Privacy Policy.

Compliance

DEXUS complies with relevant laws and regulations.

Corporate Governance

Disclosure on Management Approach SO

Aspects Local communities Resettlement and displacement does not occur as a function of DEXUS's operation.

Community

Board Risk Committee

Corruption

DEXUS is committed to achieving the highest corporate standards and does not tolerate unethical or unprofessional behaviour including bribery and corruption. To assist all employees in understanding DEXUS's expectation in relation to ethical behaviour, policies and procedures have been developed including Codes of Conduct and this Anti-Bribery policy.

All employees are required, on at least an annual basis, to undertake training on the Code of Conduct. The policy outlines DEXUS's expectations of all employees.

Through the various audits, reviews and other processes in place such as "Your Call", an anonymous reporting system, DEXUS has not become aware of any fraud nor corruption. Issues are discussed at the Compliance, Risk, Ethics & Sustainability Committee.

Anti-bribery policy
Public policy

DEXUS, on behalf of its investors and the broader community, is committed to making a positive and constructive contribution to policy development relating to the property industry and to participate in the policy decision-making process.

All employees are required, on at least an annual basis, to undertake training on the Code of Conduct. The policy outlines DEXUS's expectations of all employees.

At no time will gifts or entertainment of an excessive nature be offered to representatives of governments or statutory authorities. DEXUS does not make "facilitation payments" to government officials in order to expedite activities such as approvals, issuance of licences or building or develop permits. For more information please refer to the Anti-Bribery policy, located on the DEXUS website.

Anti-bribery policy
Anti-competitive behavior

DEXUS does not act in anti-competitive, anti-trust or monopoly behaviour.

Employee code of conduct

Anti-bribery policy

Compliance

DEXUS complies with relevant laws and regulations.

Employee code of conduct

Anti-bribery policy