How we do it
The Board takes direct responsibility for determining policy and strategic direction on CR matters. Our broad strategic direction is disseminated through the CR Board Committee, and progress against our operational objectives is delegated to the CR Management Committee. Delivery of the agreed action plans, targets and objectives is the responsibility of executive management reporting to the CR Management Committee, as appropriate.
Following an independent annual review and benchmarking against best practice, including GRI, FTSE4Good, Defra and the BiTC Corporate Responsibility Index, we continue to refine CR risks that impact on our business which have formed the basis of our current 2006-8 objectives. Progress against these criteria is shown in the individual sections on Stakeholders, Environment, Our People and Health and Safety.
CR Risks
The CR Management Committee has undertaken its annual review of the Group’s risk register and has identified those that have a potential effect from a CR perspective. The Group assessment is a comprehensive review of the full spectrum of corporate risks, undertaken as a part of the company’s annual report. Responsibility for the executive management of the processes involved in each area of risk is assigned to the appropriate individual member, or group of members, of the board. The identified CR risks and the board members designated to manage them are set out below.
| Stakeholder Groups / CR Risks | Management Processes | Liberty International Board Responsibility |
|---|---|---|
| Corporate Governance, Business Code of Practice compliance & verification | Policies, systems and audit | Entire Board |
| Shareholders and analysts | Investor relations programme | Chief Executive and Finance Director |
| Staff | HR management | Chief Executive |
| Local Communities – support | Community engagement initiatives | Chairman |
| Central Government | Engagement | Chairman and Chief Executive |
| Planning process – Local Authorities, Regional Government Departments, NGOs | Engagement | Managing Director – C&C, Development Director CSC |
| Suppliers, contractors and consultants | Procurement | Managing Directors – CSC, C&C |
| Health & Safety | Policies, training, systems and audits | Chief Executive – Liberty International, Managing Directors – CSC, C&C |
| Environment – energy, waste and transport | Policies, training, systems and audits | Managing Directors – CSC, C&C |
| Retailers and occupiers | Direct engagement and benchmarking against peer group | Managing Directors – CSC, C&C |
| Shopping public | Range of feedback mechanisms including surveys and focus groups | Managing Directors – CSC, C&C |
Committee Training and Learning
The Management and Board Committees are continually involved in activities to ensure members are kept abreast of best practice in the field of CR. Training has included in-house presentations on CR-related best practice from specialist organisations such as the Carbon Trust, Bureau Veritas and many of our community programme partners, and CSC H&S Executive Committee members will attend an advanced H&S training course in early 2008.
Committee members have furthered their involvement and learning through attendance at seminars, conferences and visits to a variety of community projects.
Corporate Policies
A comprehensive set of policies supporting our Business Code of Practice are listed throughout this document and can be viewed in full on our website. Our CR policies, Business Code of Practice and Environmental Guide have been reviewed and amended, as necessary, in 2007 and will be approved by the Board and published in early 2008. The review was conducted to take account of best practice and feedback from stakeholders.
CR Management Systems and Data Collection
We have operated an environmental management system (EMS), equivalent to ISO14001, at all our directly managed UK shopping centres for several years. The management systems form part of the consistent mechanism for the delivery of CR objectives in the UK shopping centres. We also have a well-established system to allow utilities, waste, transport and community activities to be monitored at all shopping centres and office properties on a quarterly basis. This data is now used to establish our broader ‘carbon footprint’ and to benchmark and normalise our data with more accuracy, as detailed in the Environment section. All performance indicator data is subject to both internal and external audit.
The system for monitoring performance indicators is extended to incorporate new property acquisitions, such as the Covent Garden estate, as necessary. We hope to publish figures for several new acquisitions in our 2008 Report.
Audit
The internal audit programme continues to cover verification of CR data, which is also independently verified, on a sample basis, by Bureau Veritas. The scope of verification includes adherence to stated policies as well as reviewing the procedures involved in collating the figures and the accuracy of the data itself. This process covers both internally generated data and that provided by our service partners.
Our three main outsource partners have been independently audited to assess the effectiveness of their operational implementation of Liberty’s CR policies and standards, including identification of areas where this process could potentially be improved. The findings of this exercise will feed into future management practices, where necessary.
Health & Safety
The responsibility for health & safety in respect of our staff, contractors, occupiers and visitors to our shopping centres and other properties lies with the Liberty International Board which has delegated responsibility for Health & Safety policy to three separate Health & Safety Committees – Liberty International, Capital Shopping Centres and Capital & Counties. Each committee is responsible for establishing safety procedures for its part of the overall business.
The Committees are advised by a specialist external consultant to ensure consistency of standards and performance throughout the group. Operational responsibility remains with line management. The review of Health & Safety reporting procedures during 2006 has been consolidated into the executive management timetable and is proving a valuable means to ensure effective, regular reporting throughout the group. View the Health & Safety section
Compliance
The company has complied with all applicable legislation and has been subject to no sanctions or fines for environmental, health & safety or any other infringements.
Targets, Objectives and Plans
We are mid way through our 2006-2008 three year CR objectives cycle. At the beginning of each section in the report we outline our achievements in to date and our plans for 2008.
Joint Venture Partnerships
The group is involved in carefully evaluated and painstakingly negotiated business partnerships with companies of suitable stature having similar business ethics, both in the UK and overseas. In each of the partnerships, Liberty International insists on board representation to ensure that we have a significant influence in the management of the business.
In October 2006 Liberty International signed an agreement with Provogue (India) Limited in order to develop and manage prime regional shopping centres for the growing organised retail sector in India. The partnership, known as Prozone-Liberty, is working closely together to ensure that appropriate systems are put in place to promote and safeguard health & safety and welfare matters of relevance to all those working on the construction and subsequent operation of all sites under the control of the partnership.
Community Programme
Our community programme involves working with both local and national organisations to deliver support to communities where our shopping centres are located, focussing in particular on youth, education and the prevention of crime and anti-social behaviour. Whilst each are distinct subjects in their own right there is a common thread through from the very young to working age and beyond. Our major partners reflect our belief that supporting young people at the earliest possible will help enable them to lead happier and more fulfilling lives.