DEXUS's materiality assessment

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

In 2015, and previously in 2011, DEXUS formally developed its material issues through an extensive review process outlined below and DEXUS has conducted subsequent annual management reviews of its commitments in the intervening years of 2012 to 2014 and again in 2016 in line with its reporting disclosure.

 

DEXUS’s periodic materiality assessment encompasses an extensive review of DEXUS's materiality for reporting in 2015 facilitated by an independent specialist. The 2015 materiality assessment comprised a four stage 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 annual results reporting adequately disclosed materiality issues and performance.

 

DEXUS’s annual management review of its material issues involves an internal review of material issues in the context of the following: 

1. Alignment
2. Engagement feedback
3. Prioritise
4. Disclose
Alignment with DEXUS operations, project initiatives and strategic focus areas
Alignment with DEXUS strategic risks and risk management activities

Review of issues arising from engagement activities with key stakeholders including:

  • Tenants (e.g. surveys, tenant meetings)
  • Investor (briefings and direct communication)
  • Employees (engagement and culture surveys)
  • Collaboration with industry associations
  • Sustainability surveys and benchmarks such as CDP, GRESB, DJSI
DEXUS reviews and updates the priority rating it has assigned to its issues and the updated matrix forms the basis of DEXUS’s material issues. DEXUS has aligned with GRI G4 guidelines to ensure the structure and content of annual results reporting adequately disclosed material 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 FY17 commitments.

DEXUS's Materiality Matrix

 

The material issues were a major consideration in the development of key objectives within DEXUS’s Sustainability Approach and informed DEXUS’s FY16 commitments.  The materiality matrix also informed the material aspects that have been included within DEXUS’s 2015 GRI Index.

2016 GRI G4 material issues index

DEXUS's Top 10 material issues reflect priorities for DEXUS and its stakeholders, and align with GRI G4 reporting requirements 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 references
 
Financial performance Maintaining strong financial performance over the long term through delivering on strategy Sustained Value

Chair and CEO Review
Operating and Financial Review (Annual Report)

Transparency Promoting open communication with investors, supporting DEXUS's strong governance principles Sustained Value Corporate Governance Statement
Market volatility  Adopting active leasing and asset management strategies to proactively address variable market conditions Sustained Value Office, Industrial, Market Outlook (Annual Report)
Tenant attraction and retention Enhancing tenant engagement and satisfaction and utilising leasing capabilities to attract and retain tenants in order to improve portfolio occupancy Future Enabled Tenants Office, Industrial (Annual Report)
Talent attraction and retention Attracting, retaining and developing employees to deliver high performance in a diverse and inclusive workplace Thriving People People and Culture (Annual Report)
Workplace health and safety  Ensuring the safety of employees, tenants and suppliers at DEXUS properties Thriving People

People and Culture (Annual Report)
Thriving People (Performance Pack)
People and Culture - Disclosure of Management Approach (GRI Index)

Community contribution  Engaging with the community through corporate social responsibility programs and providing spaces servicing the wider community Leading Cities  Leading Cities (Performance Pack)
Strong Communities (Performance Pack)
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 Strong Communities 

Strong Communities (Performance Pack

Supply Chain Disclosure of Management Approach (GRI Index)

Climate change impacts Assessing the impact and adopting measures to address the effect of climate change on the property portfolio Enriched Environment

Enriched Environment (Performance Pack)
Environment Disclosure of Management Approach (GRI Index)

Resource efficiency and waste Improving energy and water efficiency and waste management to enhance environmental outcomes, demonstrated through sustainability ratings Enriched Environment

Office, Industrial (Annual Report)
Enriched Environment (Performance Pack)

Environment Disclosure of Management Approach (GRI Index)