Dexus Material Issues in Accordance with GRI Requirements

Dexus reports on its material issues in accordance with Global Reporting Initiative (GRI) G4 requirements.

For further information on Dexus's approach to managing GRI G4 aspects and its material issues, refer to the 2016 GRI G4 Index and Performance Pack.

Dexus's Materiality Assessment

Dexus continuously seeks to improve the information it reports on, including reviewing material issues to ensure relevance.

The previous formal review of material issues was undertaken in 2011, and Dexus has conducted subsequent reviews of its commitments in 2012, 2013 and 2014 in line with its annual reporting disclosure. In 2015, Dexus developed a plan to transition from GRI G3.1 to the materiality-based GRI G4 framework. This involved an extensive review of Dexus's materiality for reporting in FY15 facilitated by an independent specialist.

There were four stages to this process.

1. Identify 2. Engage 3.Prioritise 4. Disclose

Dexus researched existing and emerging material issues relevant to its business, as identified by:

  • Local and international best practice peers
  • Investment bodies
  • Sustainability benchmarking tools
  • Industry associations
Dexus engaged with key stakeholders to identify issues that they considered important to the Group. These included prioritising issues relating to GRI G4 aspects as well as other issues identified by stakeholders. To ensure an appropriate level of insight on priority, Dexus sought input from experts across the Group on the relative materiality of the issues, prioritising them based on their significance and likely impact to Dexus and its stakeholders. Dexus has aligned with GRI G4 guidelines to ensure the structure and content of its FY15 annual results reporting adequately disclosed materiality issues and performance.

The issues identified by Dexus and its stakeholders were visually correlated to highlight the influence on stakeholders and their importance to Dexus and the property sector. Dexus created a matrix to assist in prioritising the most material issues as the basis for ongoing disclosure. These material issues were a major consideration in the development of Dexus's revised sustainability approach. The material issues align to the key objectives of Dexus's sustainability approach and have informed its FY16 commitments.

2015 GRI G4 Material Issues Index

Dexus's Top 10 material issues reflect priorities for Dexus and its stakeholders, and align with the new reporting requirements under GRI G4 and Dexus's sustainability approach.

The material issues are not prioritised, but organised under the key sustainability objectives.

Material Issue Approach Sustainability Objective Section/Document Reference
Financial Performance Maintaining strong financial performance over the long term through delivering on strategy
Chair and CEO Review, Group Performance (Annual Review)
Transparency Promoting open communication with investors, supporting Dexus's strong governance principles Governance (Annual Report)
Market Volatility Adopting active leasing and asset management strategies to proactively address variable market conditions Office, Industrial, Market Outlook (Annual Review)
Tenant Attraction and Retention Enhancing tenant engagement and satisfaction and utilising leasing capabilities to attract and retain tenants in order to improve portfolio occupancy Office, Industrial (Annual Review)
Talent Attraction and Retention Attracting, retaining and developing employees to deliver high performance in a diverse and inclusive workplace People and Culture
Workplace Health and Safety Ensuring the safety of employees, tenants and suppliers at Dexus properties People and Culture, People and Culture - Disclosure of Management Approach
Community Contribution Engaging with the community through corporate social responsibility programs and providing spaces servicing the wider community

People and Culture, Tenants and Customers - Disclosure of Management Approach
Sustainable Procurement Effectively managing supply chain risks in relation to environmental, social and governance issues and identifying opportunities to create value in partnership with suppliers

2015 Performance Pack
Climate Change Impacts Assessing the impact and adopting measures to address the effect of climate change on the property portfolio 2015 Performance Pack
Resource Efficiency and Waste Improving energy and water efficiency and waste management to enhance environmental outcomes, demonstrated through sustainability ratings CEO and Chair Review, Office, Industrial
2015 Performance Pack

Managing Risk

A prudent and robust approach to risk management is an essential part of Dexus's ongoing success.

Dexus identifies risk management as one of its key strategic objectives and continuously reviews and evaluates risk to ensure that it is appropriately managed at Board level through the Board Risk Committee, together with the Group Management Committee.

There are various risks that could impact the execution of Dexus's strategy and outlook, and the nature and potential impact of these risks can change over time. Dexus actively reviews and manages risks faced by its business over the short, medium and long term, overseen by the Board Risk Committee. For further information on Dexus's risk management framework refer to the Review of Results and Operations and the Corporate Governance statement in the 2015 Annual Report.