Nuturing well-connected, prosperous and supported communities in and around our buildings
FY16 Performance Against Commitments
= Achieved = Not Achieved = Underway
|Introduce a coordinated approach to community related services across the Dexus office platform through the development of a community engagement strategy and appointment of a new community manager role||Introduced a coordinated approach to community related services through the engagement of 38 community managers and concierges placed in our office properties nationally|
|Position Dexus’s sub-regional shopping centres as community champions through the formation of partnerships with local schools, encouraging loyalty from this market segment while also providing valuable educational resources to participating schools||Dexus’s sub-regional shopping centres championed community engagement through partnering with local schools to support their fund raising and educational programs contributing over $25,000|
|Improve the entertainment and leisure facilities at three Dexus managed shopping centres to reaffirm their position as community hubs||Committed investment for entertainment and leisure projects which are currently underway at shopping centres in Tweed City and Gateway and in final planning stages at Smithfield|
|Implement procurement technology and annual surveys to enhance collaboration and knowledge exchange and create shared value with key suppliers||Conducted annual surveys with 43 suppliers and procurement reviews carried out to create shared value with key suppliers|
Refer to the People and Culture Section of the 2016 Dexus Annual Report.
Volunteering and Donations
|Equivalent funds donated or raised||FY12||FY13||FY14||FY15||FY16|
|Corporate Donations ($)||174,122||123,366||139,344||241,053||180,842|
|Employee Volunteering activities ($)||72,424||80,623||50,044||65,806||89,779|
|In-kind support ($)||623,909||573,777||470,055||712,295||532,646|
|Through Dexus volunteering program||1,059||978||589||792||1,049|
Commentary and methodology
Each year our people have the opportunity to contribute to the community through the provision of one day’s paid volunteering leave. Dexus Diamond Week is a community partnership that raises funds for Sydney Children’s Hospital Foundation and likeminded charities around Australia through awareness activities in the foyers of our offices.
Dexus is proud to support the Foundation along with approximately 30 other charities around Australia, with 172 of our employees taking part in a volunteering event in FY16.
In FY16 Dexus raised a total of $803,268 in community support through employee volunteering programs, in-kind support and Dexus’s corporate donations, including $27,950 donated to the Sydney Children’s Hospital Foundation.
Charitable donations comprise:
- Financial contributions to nominated charities
- Fundraising events
- Community sponsorships, advertising and promotions
- A dollar-for-dollar matching program
- The value of goods purchased for charity events and appeals
In-kind support was provided to not-for-profit organisations or community groups to support their cause/fundraising activities and includes:
- The provision of goods or services
- The value of space provided in the building at no charge
Examples of community contributions include:
- Collaboration with Edge Environment and Better Buildings Partnership (BBP) to recover and re-purpose 8.5 tonnes of furniture to charitable organisations, enabling productive and creative workspaces with an estimated in-kind value of $50,000 at Governor Macquarie Tower, 1 Farrer Place, Sydney
- Donating space at Plumpton Marketplace to local community groups including Lifeline Western Sydney and Rotary Club of Mount Druitt, which enabled them to promote their activities and conduct fundraising through activities such as charity gift wrapping
- Donating use of the car park at Willows Shopping Centre as a venue for the Townsville Rotary Club’s weekly Sunday markets. The funds generated from hire to stall holders is donated to various community groups throughout the year
- Coordinating regular activities at Smithfield Shopping Centre to raise awareness and funds on behalf of local charities and community clubs including Legacy, the Cairns Surf lifesaving Club, Young Animal Protections Society and the Far North Queensland Hospital Foundation
Employee volunteering activities include:
- Volunteering leave taken in company time by Dexus employees to undertake community work
- Participation on charity committees/boards where the individual is acting in the capacity as a Dexus employee
Volunteer hours are calculated as the total full time equivalent hours worked by employees in nominated community and charitable activities. In FY16 Dexus volunteered a total of 1,049 hours, up from 792 hours in FY15.
Community Engagement Initiatives
We embrace, connect, invest in and celebrate the communities in which our customers are located, aligning with our sustainability approach objective of ‘strong communities’. During the year we supported the following not-for-profit charities through in-kind volunteering and monetary donations:
- Sydney Children’s Hospital Foundation, which promotes the prevention and treatment of illness and injury in children
- The Station, a refuge in the Sydney CBD that provides a range of services for people who are having difficulty attaining and sustaining adequate and secure accommodation, improving their health, personal autonomy and dignity
- Chain Reaction, a corporate bike challenge that raises money for sick children by challenging executives who have a passion for cycling and an awareness of their corporate and social responsibilities, to ride a 1,000 plus kilometre course in 7 days
- Property Industry Foundation, which addresses the serious and persistent problem of youth homelessness by partnering with respected charities to build safe environments and support of charity managed initiatives focused on education, employment and wellbeing
- Dandelion Support Network, a charity run by volunteers which distributes donations of nursery items, clothes, toys and linen for babies and children to families in need, working with social workers at hospitals and welfare agencies
For further information refer to Dexus’s Tenants and Customers Disclosure of Management Approach (DMA) available on Dexus’s website.
Supply Chain Management
Dexus’s Sustainable Procurement Framework minimises any potential impacts from its upstream supply chain. Sustainable procurement is built into all supplier engagements through supplier adherence to Dexus’s Sustainable Procurement Policy and Supplier Code of Conduct as well as other Dexus policies including Dexus’s Supply Chain Disclosure of Management Approach (DMA) available at on Dexus’s website.
Dexus’s Sustainable Procurement Framework minimises any potential impacts from its upstream supply chain. Sustainable procurement is built into all supplier engagements through supplier adherence to Dexus’s Sustainable Procurement Policy and Supplier Code of Conduct as well as other Dexus policies including Dexus's Environment Statement, Human Rights and Work Health, Safety & Liability Policies.
Dexus has created preferred panels of providers and rationalised its sub-contractor base across key disciplines to ensure market leading delivery and enhance compliance levels. The preferred builder panel that was initially launched in November 2013 was reviewed in FY16 via a detailed RFI process with adjustments made to reflect the changing requirements of the business. Additionally a preferred panel of key consultant services, both major and specialist was established.
In FY16 procurement achievements included:
- Progression of the security optimization project which aims to transform security services delivery to a national platform via innovatively implementing leading security and communications technologies across manned security properties. Scoping of the project was completed and a market based expression of interest process concluded with two preferred suppliers identified for further development of the project
- Renegotiation of 24 cleaning and waste services contracts to the NSW and VIC office portfolios. The new agreements leveraged the supplier partnership to captured current best practice, valued added services including waste scales and NABERS waste audits, and provide certainty of future costs
- Completing competitive tenders for the Premium grade development at 480 Queen St, Brisbane. Preferred suppliers were appointed across key categories of Security and Cleaning and resulted in Dexus reducing future operating costs against forward budget by $128,000 per annum
- Integration of partner toilet consumables supplier to the QLD office portfolio resulting in savings of $147,000 per annum along with product standardization
- Rationalisation of Building Maintenance Units maintenance suppliers across the NSW and ACT portfolio via a competitive tender process, reducing suppliers from five to two. Additional benefits include the reduction of risk via implementation of consistent scopes, measurable KPI’s and the adoption of Dexus standard service contracts. A savings of $18,500 per annum (9.6%) was also achieved
- Transition of Waterfront Place and Eagle Street Pier to Dexus preferred suppliers platform
- Comprehensive review of the Dexus minor services panels for Electrical, Hydraulic and Building Fabric services, resulting in further overall supplier rationalization for NSW and VIC, and the appointment of additional companies for QLD to address demand
- Completion of competitive tender for innovative specialist Concierge services across the Office portfolio in the delivery of this key Dexus initiative
Dexus screens suppliers on their sustainability track record and management systems during the procurement process. Dexus informally collects data from external sources to assist with validating suppliers’ credentials with regard to impact on the environment, society and how it manages its staff. At present Dexus does not apply formal criteria or screening tool to assist with this process.
In FY16 all new suppliers underwent informal screening as part of the standard procurement process.
During FY16 Dexus engaged external consultants to assist with the development of a procurement strategy which would align to the business strategy and support strategic outcomes with a focus on the procurement of property related capital expenditure.
The objective in developing a procurement strategy is to manage spend to mitigate supply chain risk in line with Dexus Corporate Risk and Sustainability objectives, as well as provide a competitive advantage, meeting or exceeding commitments to capital partners. Dexus also aims to build procurement capability to support the business in leveraging its buying power in the market and to build strategic relationships, improving outcomes and access to innovation and superior products.
Initial work involved Dexus assessing existing and future maintenance capital expenditure requirements over a 20 year horizon and determining the likely spend categories. Over a 20 year period Dexus has sizable annual expenditure and expects to spend maintenance capital across consistent spend categories as indicated in the chart below.
A series of current state workshops and interviews with over 25 Dexus stakeholders were conducted by Deloitte Consulting to understand the procurement activities in each business function. The results of the findings revealed significant opportunities to improve Dexus procurement capability and provide the basis of the procurement strategy approach.
In developing Dexus procurement strategy aims to:
2. Improve competitive advantage through supplier relationships:
3. Improve organization simplicity: