INTRODUCTION
Responding to external drivers and our own goals to transform our business, we have accelerated our quest to embed ESG into every aspect of what we do.
Our environmental social and governance (ESG) strategy is anchored in Redefine’s purpose and embraces the United Nation (UN) SDGs as an overarching framework and maps out what we want to achieve by 2030. It sets high-level goals for incorporating ESG into our investment processes, day-to-day operations, and stakeholder engagements.
Furthermore, the group’s approach to ESG factors, related risks and opportunities is considered in respect of the geographical contextual span of our business. As such, our subsidiaries also take steps to incorporate ESG into their investment frameworks. Our ESG strategy applies to all the properties over which Redefine has operational control and promotes applicable practices across our value chain. In FY2023, following the integration of EPP as a fully owned subsidiary, our ESG strategy will apply to our EPP portfolio.
The objectives of our strategy are to:
- Ensure that ESG forms an integral part of our day-to-day business operations and decision-making processes throughout the life cycle of our properties
- Drive delivery of Redefine’s moonshot strategy, i.e. for Redefine to own the smartest and most sustainable buildings the world has ever known by 2030
- Pursue opportunities to contribute towards solving societal challenges through business innovation and collaboration
- Promote the creation of sustainable partnerships not only within our value chain but also within the real estate industry and with the public sector
- Create a pathway to net zero carbon emissions throughout the portfolio by 2050
UN Global Compact
The social, ethics and transformation committee monitors our activities against the Ten Principles of the UN Global Compact on an annual basis.
We have formally committed to the UN Global Compact and communicate our progress against each of the Ten Principles of the UN Global Compact, which will be measured in accordance with this strategy.
For more information, see our United Nations Global Compact: Annual progress report against the Ten Principles.
For more information, please read our 2023 ESG report
UN SDGs
We conducted an updated materiality analysis for our South African operations during 2022 across all 17 UN SDGs to identify the areas of business or society where we can make the most significant impact. For each UN SDG, these impacts have been grouped per stakeholder, in accordance with our updated stakeholder engagement strategy. For more information please view our ESG report, our social landscape from page 29.
As Poland’s overall progress against the 17 UN SDGs is significantly better than South Africa’s progress, according to SDG Tracker for South Africa and Poland, the identification of the appropriate UN SDGs for EPP has been conducted separately by EPP and is incorporated by reference into our group ESG strategy. More detailed reporting on EPP’s progress against is set out on page 34 of the 2021 EPP ESG report.
The analysis includes:
- the primary SDGs in terms of which we can make the most significant impact
- the secondary SDGs that we can implement, which will influence the achievement of the primary SDGs
- the SDGs that we will not currently commit to, on the basis that we only have a limited impact on them at this point.
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We will review the continued suitability of the SDGs every three years to ensure that the goals remain relevant, and any new priorities or stakeholder groups associated with the achievement of the goals are duly incorporated.
In FY2022, we developed ESG key performance areas (KPA) based on several sources of international best practice and with consideration of the ESG strategic framework, our sustainable finance framework and our B-BBEE-related obligations. The KPAs are aligned to the UN SDGs.
We identified short-term (measurable over a 12-month period) and long-term KPAs (measurable over a 3-year period, except climate, which is measure over a 27-year period). While some of these KPAs are measurable in the short term, they are all aimed at contributing to our long-term ESG objectives. Other appropriate KPAs will be developed as our ESG strategy matures.
Refer to the end of this page for more details on our KPAs, KPIs and targets.
Environment
Climate change
Climate Action - The climate resilience of a building may have an impact on the valuation of that building, particularly when C40 regulations are passed by the participating municipalities.
View our FY2023 GHG Verification Report and Opinion
View our Verification of the 2023 Carbon Footprint Report
Clean Water and Sanitation - We recognise that water scarcity in South Africa is a pressing issue. We are cognisant of the fact that climate change is a ‘grey rhino’ risk event that we must act upon and manage as soon as possible, to ensure the continued relevance and resilience of our assets and operations.
View our ‘Investing in sustainable water resources’ project.
Water management
Innovative technology is crucial to reduce operating costs and make our offerings more attractive to tenants. The majority of our buildings, over which we have operational control, are in a water-stressed country, and therefore it is essential that we are mindful of how we manage water, particularly in water-stressed regions.
A policy is currently being developed which contains our group-wide commitment to water conservation and the strategy to support this, considering:
- the needs of our properties that are in water-stressed areas and 100-year flood zones
- the affordability of water savings technologies
- the water-use patterns of assets in each of our core portfolios.
Water and energy savings technologies are implemented throughout our portfolio, and we will work with municipalities (directly and through industry lobby groups) to reduce the regulatory impediments to adopting green technologies at scale.
Green buildings
Public and private sector partnerships are essential to realising the goals, particularly around job creation, protection of natural resources and good governance. We have taken significant steps to obtain Green Star certifications for the buildings in our commercial property portfolio, and we will continue to pursue green certifications for our commercial buildings. However, we are aware that there are other types of certifications in the local and international market. Furthermore, it is possible to obtain certifications for certain aspects of a building, rather than its overall design and operation. In so doing, we will consider the potential to obtain other certifications for our buildings across our portfolio, including (but not limited to):
- Eco Districts (view more information here)
- Sustainable Precincts
- Green Star ratings for Retail and Industrial buildings
- LEED
- BREEAM
- Living building challenge
- Net zero carbon / water / waste
- ENERGY Star / Energy Performance Certificates
We are also aware that it is possible to obtain a social or community certification for a building, including (but not limited to) the BREEAM communities certification standard and are exploring these options.
The suitability of a particular standard will include the scope of the certification, the cost of obtaining or maintaining the standard, the potential positive impact on our key stakeholders that rely on those buildings, and investor sentiment.
We will drive ESG awareness and impact through local industry bodies (e.g., SAPOA, SA REIT) and partner with municipalities where our investments are located to drive ESG.
Social
Human rights
Peace, Justice and Strong Institutions - As South Africa has extreme wealth and wage inequality, we need to be mindful of how our investment decisions can impact this (positively or negatively). We are committed to observing the Universal Declaration of Human Rights, although this commitment is not formal. In addition to guaranteeing rights to freedom of association and against forced or compulsory labour, our efforts to improve the availability of basic resources and job creation through our supply chain will also contribute to the realisation of human rights.
We have identified that we need to conduct human rights / community impact assessments when acquiring or disposing of assets and these will become part and parcel of our due diligence framework.
For more information, view our Human rights policy
Human capital
Decent Work and Economic Growth - Wage inequality is one of the most visible drivers of societal inequality, and contributes towards the ‘working poor’ phenomenon which affects companies in all sectors
Gender Equality - The need for gender equality in leadership and pay needs to be urgently addressed in the South African corporate sector
Reduced Inequalities - We are addressing inequality within our pay structures to avoid reputational harm and a disengaged workforce
Quality Education - Youth unemployment is an issue in South Africa and a viable talent pool needs to be nurtured within the economy, particularly in the real estate sector
Peace, Justice and Strong Institutions - Anti-bribery and corruption must be incorporated into employee training and day-to-day operations and processes
Diversity, equity and inclusion policy
Our diversity, equity and inclusion policy promotes the founding provisions of the South African Constitution and its guiding values of human dignity, the achievement of equality, and the promotion of human rights and freedoms. It also reaffirms Redefine’s commitment to cultivating, and preserving a culture of diversity, equality, and inclusion by ensuring a fair and equitable workplace and employment practices is created and maintained. This is in line with our values and supports the elimination of all forms of unfair discrimination while promoting equal opportunities.
For more information, view our Diversity, equity and inclusion policy
We place people at the heart of everything we do, and our human capital strategy will continue to reflect our commitment in this regard. Furthermore, we observe the principles of the International Labour Organisation (although this commitment is not formal) and we embed the principles of decent work when managing our employees.
Human capital management, and the emphasis on skills development and our role in society as an enabler business, is a critical part of our future as a responsible corporate citizenship. As part of our SDG priorities, we will continue to invest in gender equality and skills development, provide innovative career pathing opportunities, and promote the continued well-being of our employees.
Redefine measures pay inequality in terms of equal pay for work of equal value; more gender equality will be introduced at C-suite level. Furthermore, we track the representation of women in our workforce and are pleased that 60% of the board is made up of women.
Gender equality will be promoted in succession management; new ways of accommodating caregiver employees will be introduced; and gender-based pay disparities between employees doing work of equal value will be eliminated.
Internal Gini coefficient is gradually reduced through wealth creation initiatives for junior employees.
Internship opportunities are offered, including a mentorship programme. Furthermore, bursaries are offered to employees for suitable courses.
Anti-bribery and corruption protocols will include employee training and full implementation whenever employees interact with third parties.
Suppliers
Industry, Innovation and Infrastructure - Small, medium and micro enterprises (SMMEs) that can access credit facilities can grow and benefit their own value chains
Decent Work and Economic Growth - Small suppliers, particularly those run by vulnerable groups, must be supported through enterprise supplier development (ESD) programmes
Reduced Inequalities – Our supplier code of conduct is aimed at encouraging suppliers to pay their employees a living wage to the extent practical, as well as to adhere to all local and international laws against unfair discrimination
Partnerships for the Goals - Empowering small suppliers to access funding, thus assisting in growth and job creation in our value chain
Peace, Justice and Strong Institutions - Anti-bribery and corruption must be incorporated into our supply chain management. Some of our impacts as an enabler business, such as on job creation and empowerment, are created through the suppliers that we choose to do business with. Our brokers are essential to our core business of letting space. Our on-site contractors are often the de facto face of Redefine as they interact with the public and are important to the overall tenant experience.
We have implemented a supplier code of conduct that sets out the standards of ethical and sustainable conduct and business practices expected of our suppliers. This code of conduct will be accompanied by appropriate monitoring mechanisms to hold suppliers accountable against the standards set out in the conduct. We began rolling these out during FY2022.
We will partner with industry bodies, government and financial institutions to increase accessibility of credit for qualifying and sustainable SMMEs.
We will enable and encourage innovation through supplier selection criteria that prioritise innovative service providers.
Qualifying suppliers are supported through ESD programmes. Measurable long-term job creation will be promoted through ESD programmes, which will then empower ESD beneficiaries to become tenants.
Vendor financing has been provided in certain instances.
We have an anti-bribery and corruption policy in place. Anti-bribery and corruption protocols will be implemented in supplier selection and through due diligences that cover the supply chain.
B-BBEE
Our approach to B-BBEE, as well as the governance framework supporting this, encompass our holistic approach to transformation. Our efforts to pursue transformation are included in the SDGs as they relate to our key stakeholders, particularly in
- promoting the upliftment of people from marginalised or vulnerable groups
- facilitating the empowerment of SMMEs, particularly those run and owned by women and marginalised groups
- significantly increasing gender and racial representation in Redefine and real estate sector.
For more information on our B-BBEE performance, please see our B-BBEE Verification certificate.
Tenants
Good Health and Well-being - The health, safety and well-being of our tenants is essential and must be incorporated into the design and maintenance of our buildings
Peace, Justice and Strong Institutions - Bribery and corruption is an issue in South African society and has a significant impact on society’s trust in corporate south Africa. Promoting strong governance and ethics within our operations increases trust from our stakeholders and society
Responsible Consumption and Production - Responsible consumption within the value chain includes responsible recycling. Our waste footprint notably includes waste generated during the construction or refurbishment of our properties, through our day-to-day operations, and at the end of the life cycle of our properties. It is essential that we manage the waste generated on our properties in a responsible manner, and influence tenant behaviour to promote responsible consumption and production within their operations. Similarly, we must influence our suppliers to responsibly manage how they approach waste and consumption, including pollution and the use of hazardous materials.
We have taken steps to implement circular business models that allow for the long life of our buildings. We also measure the tonnes of recycled waste. We will be focusing on programmes to encourage responsible consumption, which will include carbon reduction programmes within the value chain.
It is critical that we measure the satisfaction of our tenants, and to this end we have implemented a tenant satisfaction programme and an action plan to address their feedback and concerns.
Many of the impacts identified through the SDGs that we have prioritised will be managed by influencing the sustainability impacts of our tenants, as their consumption patterns will impact their customers as well as the communities surrounding our buildings. This can be done through awareness campaigns that demonstrate to tenants how they can operate in our properties responsibly and sustainably; as well as leasing provisions such as (but not limited to) green leases.
Our green lease framework is a vehicle that aims to increase awareness amongst tenants and change behaviour to encourage tenants to become energy efficient. Pleasingly, our green lease framework for our commercial properties was completed in FY2022, and our retail lease is being finalised. Our green leasing and green tenant guidelines include energy use reduction, water resource and waste management supported by various technologies such as monitoring, leak detection and smart shut-off valves.
Tenant health and well-being is considered when designing our buildings. Innovative ways of further promoting tenant health and well-being will be implemented, adding to our value proposition to current and prospective tenants.
Anti-bribery and corruption protocols will be included in tenant selection. Tenants will be provided with access to training on ethics, and anti-bribery and corruption.
While we promote governance, we do not conduct governance risk assessments at an operational level. Internal governance will be streamlined, and related risks will be managed, which in turn demonstrates to our tenants that the Redefine is a responsible supplier.
Communities
Gender Equality - We need to empower women and other vulnerable groups through our CSI initiatives and enable our employees to support selected non-profit organisations that protect and promote women’s rights through our Red Thread CSI platform.
Sustainable Cities and Communities - We need a better understanding of how our buildings will impact the community in future (positively or negatively)
It is imperative that we measure our impact on our communities, at each stage of the investment and asset management process as part of our overall approach to responsible investment. Furthermore, our approach to corporate social investment will determine the extent to which we are able to continue to measure and create value for the communities that surround our buildings.
Managing community impacts, particularly on women and vulnerable communities, will be integrated into our end-to-end responsible investment approach.
By partnering with social impact organisations, we will better understand the changing needs of our communities and how this can drive our approach to social investment (including, amongst others, investment in infrastructure).
Stakeholder engagement
Our board adheres to the King IV principles which address the concept of a stakeholder-inclusive approach to governance that balances the needs, interests and expectations of material stakeholders in the best interests of the Redefine over time. Sound stakeholder engagement is critical to the achievement of the primary and secondary UN SDGs (and drives the achievement of SDG 17. Partnerships for the Goals), particularly for those SDGs that require us to influence behaviour in our value chain.
We will engage with investors regarding ESG on an annual basis, to explain our approach to ESG and any forward-looking developments in this regard.
Health and safety
Good Health and well-being
- Our suppliers need to be influenced to promote health and wellness for their employees, particularly at the most junior levels
- Our employees are more productive if their health and well-being, including employee benefits, is protected
- We prioritise the physical and mental health of our employees through our employee value proposition
- Our buildings have an impact on communities through community upliftment initiatives.
We prioritise the health and safety of our employees, as well as the health and safety of our tenants (which is incorporated in the design of our buildings), communities that support our buildings, and suppliers that work on-site.
Our supplier code of conduct is being enforced through supplier self-assessments, confirming (inter alia) that they have measures in place to promote the well-being of their employees.
Community education initiatives around health and well-being will be expanded to include all aspects of health, safety and well-being, particularly for vulnerable communities.
For more information on how we approach health and safety as a landlord and employer respectively view our OHS policy guidelines
Governance
Anti-bribery and corruption
In accordance with the Ten Principles of the UN Global Compact, we continually take steps to enhance our anti-bribery and corruption mechanisms, through monitoring mechanisms and training. It is also essential for us to ensure that anti-bribery and corruption mechanisms are included in our interactions with our business partners and tenants. This is supported by other enabling policies such as our independent whistleblower hotline.
Board governance
The board, in its capacity as the custodian of governance, leads Redefine, ethically and effectively, towards the goal of improving the trust and confidence of stakeholders and reducing the cost of capitals.
The board’s governing structures, processes and actions, coupled with the mindful realisation of desired governance outcomes, enable and support our value creation process in the short, medium and long term. The importance of good governance is essential for the achievement of SDG 16 (Peace, Justice and Strong Institutions).
Internal governance
We are committed to following best practice corporate governance and ensuring that these principles are reflected throughout our internal governance structures; we monitor our policy frameworks and ensure that they clearly promote good governance. Furthermore, we pursue strong ethical conduct to demonstrate our ethical leadership in the real estate sector. This is conducted through ethics surveys, risk assessments and ongoing plans to further promote ethical conduct throughout the organisation on a continuous basis.
Good governance will also include ensuring the continued compliance with the enterprise risk management framework; combined assurance framework; and legal compliance framework.
Business continuity management
Our business continuity management programme supports the strategic objectives and governance requirements of our organisation, proactively building the capability to continue business operations in the event of disruption and enhancing resilience. This not only means emphasising building business continuity management capability which support our core value streams, but a programme which supports alignment to King IV and the target value driven model.
The business continuity management strategy includes an execution roadmap which assists us to achieve our desired state of preparedness to respond to and recover from material disruptive events.
View more information on our Governance overview
Risk management
We conduct a risk and opportunity analysis of all elements of ESG on an annual basis, recording the potential financial impacts of the risks and opportunities identified; as well as tracking any changes to those risks. Best practice principles as they relate to the identification of risks and opportunities are applied to this analysis. Where certain ESG-related risks are already included in the enterprise risk management framework, these are incorporated accordingly. The result of the analysis is incorporated into the enterprise risk management framework.
For more information, please read our 2023 ESG report and our climate risk report regarding our approach to climate risk management
Sustainability reporting
We are committed to providing financially relevant sustainability information through our public reporting, for the benefit of our key stakeholders. We endeavour to align our sustainability reporting to the following reporting frameworks, to the extent that they are useful:
- SASB: Real Estate and Infrastructure Standard. To the extent that further sustainability-related reporting standards are available in other SASB industry-specific standards, we incorporate these to provide financially relevant sustainability information across all elements of ESG for the benefit of key stakeholders.
- TCFD: While this is a climate risk management tool, it includes the fundamental principles for effective disclosure, which demonstrates our climate risk management framework to our key stakeholders.
- UN GRI: Although we are not committed to full alignment to the UN GRI, aspects of the UN GRI have been identified to the extent that they can assist us to improve our reporting from a social and governance perspective and are incorporated into our reporting.
- Draft IFRS Sustainability Disclosure Standard: Including real estate industry-based disclosure requirements
- JSE Sustainability Disclosure Guidance (2022) and JSE Climate Disclosure Guidance (2022)
- UN Principles for Responsible Investment (PRI), as they relate to real estate
We continue to progress in implementing, and aligning with, the TCFD framework and SASB standards, both of which are being incorporated into the ISSB Sustainability Disclosure Framework. In FY2022, we published our first Climate risk report, which is based to the recommendations in TCFD.
For more information, please view our 2023 Integrated reporting suite
Participation in sustainability indices and benchmarks
While our approach to sustainability requires us to consider the realities of our business model and operating context, we continue to use international benchmarks and indices to assess our comparative ESG performance against that of our local and international peers. At present, we participate in the following indices:
- CDP Climate
- CDP Water
- S&P Global Corporate Sustainability Assessment
- Dow Jones Sustainability Index / SAM Corporate Sustainability Assessment
- GRESB
We are also included in the following local and international indices by virtue of our approach to ESG disclosed through our sustainability reporting:
- JSE Sustainability Index
- FTSE4Good Emerging Markets Index
The results of our participation in these indices, together with an explanation of our year-on-year performance in this regard, is reported to the social, ethics and transformation committee on an annual basis once the results are made available to us.
From FY2022, we will review the suitability of the sustainability-related indices that we participate every two years. In this review, we will consider:
- the needs of South African investors who rely on the results of those indices to assess our ESG performance
- the cost of participating in those indices
- the usefulness of the indices when comparatively benchmarking our ESG performance against that of our local and international peers.
To the extent that a South African participatory sustainability index is developed, we will consider participating in it, considering the factors set out above.
Responsible investment approach
We believe that a holistic investment approach factors long-term sustainability and embeds ESG at each stage of our investment life cycle. As such, we are developing an enterprise approach to responsible investment to ensure that each asset management decision, from development or acquisition to disposal or demolition, considers ESG factors every step of the way. Our responsible investment approach is aligned to the UN PRI guidelines for investment as they relate to real estate. As a result, we have developed a responsible investment checklist, which includes ESG metrics. Steps are being taken to extend these ESG principles to our offshore investments to further embed sustainability throughout our value chain.
Sustainable financing
Affordable and Clean Energy - We understand that the decisions we make today, impact the legacy we leave tomorrow. As an ESG leader in the South African real estate sector, we understand that it is essential to raise finance that is explicitly linked to projects that help manage our climate risks, as well as advancing our overall ESG strategy, thus ensuring our long-term resilience.
In line with this, green and renewable energy is particularly important to us as the bulk of our properties are located in C40 cities.
Our sustainability financing framework clearly outlines how we issue and use financial instruments such as green, social and sustainability bonds and loans to achieve our ESG goals.
View our Sustainability finance framework here
View our Second Party Opinion here
For more information, contact our ESG team on [email protected]
The following sections set out our priorities across environmental, social and governance respectively. We are aware that these are often interlinked and therefore no area of ESG is more important than another.
Primary and secondary SDGs and their 2023 KPAs, KPIs and targets
General long-term KPA
Improvement in overall sustainability performance
KPI: Year-on-year improvement in Sustainalytics ESG risk rating, measured as an increase in management score
Threshold: 4% increase in management score
Target: 6% increase in management score
Stretch: 10% increase in management score
Sustainalytics’ management score assesses the robustness of a company’s ESG programs, practices and policies. An increase in the management score indicates that the Company has proactively managed more of its core ESG-related risks.
General short-term KPA
Improvement in our GRESB scores (for Standing Investments and Developments) for the 2022 reporting period.
Standing Investments score: 71/100
Developments score: 84/100
Please note that the GRESB Assessment is based on the sustainability-related information disclosed, including policies and procedures, in the previous financial year
Key:
| Short-term KPAs | 12 months |
| Long-term KPAs | 3 years |
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| KPA | KPI (measurement method) | Target | |
| 3.1 Community health awareness | Expanding workplace health and wellness awareness to communities surrounding our buildings | Making available, for the relevant communities surrounding our buildings, a list of local trusted healthcare professionals, vaccination sites for COVID-19 (and other more common illnesses such as the flu), sexually transmitted infection testing and health screening programmes | 19 properties (identified in an internal Corporate Social Investment property analysis) |
| 3.2 Caregiver support programme (Relevant SDG 4.2 and SDG 5.6) | Providing decent working conditions which enable employees who are also parents to fulfil their roles as caregivers |
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| 3.3 Tenant health and safety | Ensuring the health and safety of our buildings, particularly considering COVID-19 and other respiratory or communicable diseases (Relevant SDG 11.6) | Certification of buildings through a WELL-related building standard, with a minimum of a WELL Bronze certification | Threshold: 1 building Target: 2 buildings Stretch: 3 buildings For this measurement, the certification can be obtained on new or existing buildings. The certification must be either the WELL Building Standard or one of the WELL-related certifications (e.g. WELL Health-Safety Rating) |
| 3.3 Occupational health and safety | Implement measures to reduce workplace occupational diseases, as well as the exposure of Redefine employees to communicable diseases | Percentage of Redefine employees with access to full medical care, whether through Discovery or another registered healthcare plan | 100% |
| 3.4 Employee benefits | Assisting employees to reduce their exposure to non-communicable diseases, e.g. tobacco addiction, as well as mental health resources | Percentage of employees who access the AskNelson service to –
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| 3.5 Efficacy of health and safety strategy | The effective implementation of Redefine’s health and safety strategy. Measure how Redefine protects its consumers and end-users from any potentially negative health impacts from our products, services and marketing activities; and safeguards the value of its assets | Independent health and safety audit findings, as well as an assessment of effectiveness of our health and safety strategy | Based on average health and safety Comsaf audit scores for South African buildings under our operational control |
| 3.6 Road safety | Reinforcing road health and safety measures to employees | Providing regular information and guidance on road health and safety to employees, particularly during peak traffic periods and holidays | At least 2 communications to employees before the Festive season and Easter holidays respectively |
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| KPA | KPI (measurement method) | Target | |
| 4.1 Promoting equity and equality | Inclusion of marginalized / underrepresented groups in the Company’s bursary programme (Relevant to SDG 4.3) | Percentage of tertiary qualifications completed by designated groups (as defined in empowerment legislation) within Redefine that were funded through the Company’s bursary programme | 30% of tertiary qualifications funded by Redefine to be completed by employees from designated groups during FY2023 |
| 4.2 Caregiver support programme | Offering support to caregiver employees through partnerships with childcare facilities, where practicable | Number of partnerships with childcare facility service providers close to regional offices or key properties, that the Company has entered into for the benefit of caregiver employees | Threshold: 1 partnership Target: 2 partnerships Stretch: 3 partnerships |
| 4.4 Learnership programme | Providing internship opportunities for young graduates, through the learnership programme (Relevant to SDG 8.6 and SDG 10.4) | Retention conversion rate from the internal learnership programme, measured as a percentage of learner intake
| Threshold: 20% Target: 25% Stretch: 30% |
| 4.4 Skills development (Relevant to SDG 8.6 and SDG 10.4) | Achieve targets for participation in learning programmes, Learners, Apprenticeships and Internships | Targeted populations include:
as defined under the “Employment equity” criteria in the B-BBEE property sector code, as revised from time to time. | The targets will be set out in the Impact strategy under ‘Employment Equity’ once this is finalised |
| 4.4 Progressively achieving greater equality (Relevant to SDG 8.6 and SDG 10.4) | Working with non-governmental organisations to help vulnerable people develop their entrepreneurial capabilities | Number of properties in the portfolio that incorporate place-making facilities that contribute to local social and economic development, e.g. public spaces, learning hubs, co-working spaces | Threshold: 2 Target: 3 Stretch: 4 |
| 4.7 Sustainability awareness | Increasing awareness of sustainability amongst employees, through policies, training and awareness. | Percentage of employees who receive training on sustainability in the real estate sector and how Redefine can contribute to sustainable business practices. | Threshold: 60% Target: 80% Stretch: 100% |
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| KPA | KPI (measurement method) | Target | |
| 5.1 Diversity and inclusion | Focusing on improving inclusion and diversity within our operations, at an asset and enterprise level | Formulating and implementing a policy on gender inclusivity and access in our spaces that promote tolerance, including a stance on the use of pronouns, dress code, bathroom access and the reporting of internal and external employment statistics | 100% completion rate of alignment of internal policies with the gender inclusivity and access |
| 5.1 Women in the supply chain | Support black women-owned businesses as part of our transformation objectives | Percentage of B-BBEE Procurement Spend from all Empowering Suppliers that are more than 30% black women-owned based on the applicable B-BBEE Procurement Recognition Levels as a percentage of Total Measured Procurement Spend. | The targets will be set out in the Impact strategy under ‘Enterprise and Supplier Development’ once this is finalised |
| 5.2 Prohibition of human rights abuses on our properties | Ensuring that our premises are not used for human trafficking and/or forced labour or sexual exploitation. | Promote the use of the whistleblower mechanism if any possible illegal activity is detected at Redefine-owned properties; and partnering with the local police / community safety organizations to investigate any reasonable suspicion of human rights abuses on our properties. |
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| 5.5 Diversity and inclusion 5.5 Gender equality | Focusing on improving inclusion and diversity within the Company, particularly at senior and executive management level Promote the Company’s business case for women’s empowerment amongst stakeholder groups | (1) Percentage of individuals within Redefine’s governance bodies in each of the following diversity categories:
(2) Appointment of an internal gender equality ambassador (which will not be an official or separate job) who will take steps to promote gender equality and awareness within the supply chain and amongst other stakeholder groups | (1) Board level: in accordance with the Board Diversity policy Senior and executive management level: to be determined annually (2) At least one ambassador to be appointed, with the support of the CEO, to serve for at least 1 year |
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| KPA | KPI (measurement method) | Target | |
| 6.1 Water impact assessments | Conducting impact assessments that explicitly consider the ability of communities to access safe and affordable water | Water impact assessments in areas where (i) our properties are located in water-stressed areas, as identified in the WRI Aqueduct Water Risk Atlas; and (ii) detecting the areas where our properties are adjacent to vulnerable communities whose access to water may be compromised | Threshold: 8% of portfolio Target: 12% of portfolio Stretch: 16% of portfolio |
| 6.2 Adequate and equitable sanitation and hygiene | Ensuring that there are adequate and equitable sanitation facilities in the buildings over which we have operational control, in particular providing personal protective equipment and menstrual facilities for women and girls | Confirmation that the Company provides personal protective equipment and menstrual hygiene management measures in all of the buildings over which we have operational control |
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| 6.4 Life cycle indicator | Reduction of water withdrawn in water stressed regions | Megalitres of water withdrawn in South African operations (year-on-year target reduction), using an FY2019 baseline | Threshold: 70 Ml / 2.28% of total water withdrawal Target: 115 Ml / 3.76% of total water withdrawal Stretch: 230 Ml / 7.52% of total water withdrawal Please note that this is an absolute target that measures our progress in reducing water consumption and is aligned to the targets agreed to in the 2021 sustainability-linked bond |
| 6.5 Smart water saving solutions | Implementing smart water saving solutions within the portfolio | Increase in the coverage of buildings with installed automatic shutdown valves and bulk check meters, across the portfolio | Threshold: 30 buildings Target: 40 buildings Stretch: 50 buildings |
| 6.6 Biodiversity management | Incorporating biodiversity risks into management of existing buildings, including through water efficiency arrangements; and due diligence process for acquisitions or disposals | (i) Number of acquisitions or disposals that noted significant biodiversity risks, based on whether the properties are located on protected areas. (ii) Number of existing properties that noted significant biodiversity risks, based on whether the properties are located on protected areas, including percentage of those properties with water-saving features, including landscaping policies. Note: “Protected areas” are those that are designated on the Protected and Conservation Areas Database maintained by the Department of Environment, Forestry and Fisheries |
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| KPA | KPI (measurement method) | Target | |
| 7.1 Net Zero building journey | Increase generation of renewable energy throughout the portfolio | Increase in renewable electricity capacity in the portfolio drawn from offsite renewable sources (through wheeling agreements), including (a) solar farms and (b) excess energy from Redefine-owned buildings | Target: 20 MWP |
| 7.1 Investment in sustainable energy solutions | In addition to extending solar PV rollout, investigate alternative types of sustainable energy such as battery storage and biomass energy | Investigate the feasibility of introducing other sources of renewable energy into our operations, particularly as an alternative to relying on diesel generators | Piloting of renewable energy battery storage facilities at 3 buildings (subject to affordability) |
| 7.2 Net Zero building journey | Increase generation of renewable energy throughout the portfolio | Renewable electricity capacity (as annual capacity installed across the portfolio in the reporting year) | Threshold: 2 MWp Target: 3 MWp Stretch: 4 MWp Please note that this is an absolute target that measures our progress in generating renewable energy. |
| 7.3 Decarbonisation journey | Fulfilment of decarbonization journey (mid-term metrics linked to science-based targets) | Reduction of scope 1, 2 and 3 emissions respectively from an FY2019 baseline, in accordance with science-based targets methodology (applicable to SA properties under our operational control) by 31 August 2025 | Target: 21% Please note that this target will be made difficult to achieve due to (a) diesel generators used during load shedding that increase our scope 1 emissions, and (b) tenants whose behavior influence our scope 3 emissions |
| 7.3 Decarbonisation journey Fulfilment of decarbonization journey in accordance with science-based targets | Fulfilment of decarbonization journey in accordance with science-based targets | Reduction of scope 1, 2 and 3 emissions respectively from an FY2019 baseline, in accordance with science-based targets methodology (applicable to SA properties under our operational control) by 31 August 2023 | Target: 16.8% Please note that this target will be made difficult to achieve due to (a) diesel generators used during load shedding that increase our scope 1 emissions, and (b) tenants whose behavior influence our scope 3 emissions |
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| KPA | KPI (measurement method) | Target | |
| 8.1 Economic value generated and distributed: | Measurement of economic value generated and distributed amongst Company’s key stakeholders | Direct economic value generated and distributed (EVG&D) on an accruals basis, including the basic components for Redefine’s operations as listed below. If data is presented on a cash basis, the Company will report the justification for this decision in addition to reporting the following basic components:
| Reckoned from 2021 baseline of R7,623 billion in Company-level revenue |
| 8.1 B-BBEE scorecard | Improve the Company’s B-BBEE contributor level | Improvement in the Company’s B-BBEE contributor level on an annual basis after external B-BBEE verification | Threshold: Level 3 Target: Level 2 Stretch: Level 1 |
| 8.3 Ownership and employment equity 8.3 Economic development | Contribute to employment and wealth generation through achievement of ownership, economic and representation-related targets, particularly for underrepresented social groups Promotion of the development of small to medium enterprises | (1) Achieve ownership and economic targets for
(2) Achieve Black and Black Female representation targets for
(3) Number of underutilized spaces in the portfolio made available for modular malls, or hubs for small to medium enterprises to store or sell their products at reduced rentals; or permanent sheltered installations on pavements outside our buildings for informal traders | (1) The targets will be set out in the Impact strategy under ‘Ownership Control’ once this is finalised (2) The targets will be set out in the Impact strategy under ‘Employment Equity’ once this is finalised (3) Threshold: 2 facilities Target: 3 facilities Stretch: 4 facilities |
| 8.5 Pay parity | Monitor steps taken to give effect to the principle of equal pay for work of equal value (Relevant to SDG 8.2) | Monitor:
| To be determined through annual fair pay parity review |
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| KPA | KPI (measurement method) | Target | |
| 9.3 Economic development | Invest in property development and transformational infrastructure projects that support development and empowerment of micro and small enterprises and contribute towards equitable access to economic resources in under-resourced areas. This will be measured as Economic Development Investment as a % of total annual investment | Measure the targets under the “Economic development” criteria in the B-BBEE property sector code, as revised from time to time | The targets will be set out in the Impact strategy under ‘Socio-Economic Impact’ once this is finalised |
| 9.4 Innovation of better products and services 9.4 Net zero pathway | Improve internal processes for monitoring our long-term ESG objectives, including through our ESG report Lead the South African real estate industry by converting a building to net zero carbon, water or waste (as pilot projects) | (1) Progress made on digitization of processes required to collect and verify ESG-related information, including asset-level information; and ESG spend on an asset and enterprise level (2) Number of buildings under Redefine’s operational control that are built as or converted to either net zero operational carbon, water or waste, based on landlord emissions | (1) 10% digital ratio of ESG-related information and processes (2) Threshold: 1 building Target: 2 buildings Stretch: 3 buildings |
| 9.4 Innovation of better products and services | Increase spend on research and development to create or upgrade products or infrastructure, or introduce services that are fit-for-purpose in a changing operating environment | Increase in expenditure on research and development as a proportion of turnover during the reporting period, from a 2020 baseline | Threshold: Increase in 2020 baseline by CPI Target: Increase in 2020 baseline by CPI + 2% Stretch: Increase in 2020 baseline by CPI + 4% |
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| KPA | KPI (measurement method) | Target | |
| 10.1 Living wage | Paying at least a living wage to all employees that (as far as possible) protects the purchasing power of employees after inflation | Application of a living wage that would be appropriate in cities where most of Redefine’s employees are located, based on the cost of living and other relevant factors (e.g. national minimum wage levels) and measuring % of employees earning above this level. | 100% of employees should earn no less than R106,080 per year |
| 10.3 Quality of anti-discrimination policy | Consider the quality of the diversity and inclusion policy and demonstrating the effectiveness of this policy and associated processes |
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| 10.5 Anti-fraud and corrupt activities policy | Adherence to anti-fraud and corrupt activities policy within the Company |
| (i) Threshold: 70% Target: 80% Stretch: 100% (ii) Target: “Good” overall report rating for anti-fraud and corrupt activity controls |
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| KPA | KPI (measurement method) | Target | |
| 11.1 Socio-economic development | Initiate and contribute to socio economic development projects that benefit Black groups, communities and individuals and that promote transformation and development | Measuring compliance with the targets under the “Socio-economic development” criteria in the B-BBEE property sector code, as revised from time to time | The targets will be set out in the Impact strategy under ‘Socio-Economic Impact’ once this is finalised |
| 11.3 Innovation of better products and services | Revenue generated from research and development to create products that are fit-for-purpose | Percentage of gross revenue from product lines added in last three years calculated as the rentals or services from products that have been launched in the past three years divided by total sales, supported by narrative that describes how the company innovates to address specific sustainability challenges The Vitality Index is one of the primary metrics for the maturity phase of innovation. The Company will clearly define what “new product lines” consist of in the real estate sector (taking into account that 75% of our income must be rental-related), and further identification of what this constitutes | Based on the % of total revenue from Green Star SA / Net Zero / WELL Building certified buildings from 2023 – 2026 (on a like-for-like basis) |
| 11.5 Physical resilience of our buildings | Improvement in the physical resilience of our buildings | Increase in the number of buildings (new or existing) that are certified or recertified through the Green Building Council of South Africa certification framework (at a minimum 4-Star level for recertifications), or a recognized international certification framework (e.g. LEED) | Threshold: 20 new certifications / recertifications Target: 30 new certifications / recertifications Stretch: 40 new certifications / recertifications |
| 11.5 Community investments | Adding disaster management relief to community outreach efforts, in the event of natural disasters, chronic weather changes leading to droughts, and / or civil unrest | Number of community or outreach initiatives for communities surrounding our buildings (with a clearly defined target population) where an event described above affects their livelihood and/or access to essential services | This metric will be measured on an ad-hoc basis depending on the number of events (as described above) that occur during FY2023 |
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| KPA | KPI (measurement method) | Target | |
| 12.1 Responsible resource consumption and business practices (Relevant to SDG 3.8, 16.4, 16.5 and 16.10) | Raising supplier awareness regarding sustainable consumption behavior; human rights and fundamental freedoms; health and safety; and ethical business practices | Number of suppliers that benefit from a sustainability awareness programme that includes, inter alia, practical guidance on recycling and responsible waste management; human rights; Redefine’s anti-bribery and corruption policies; and the health, safety and well-being of their employee | Threshold: 5 qualifying suppliers Target: 10 qualifying suppliers Stretch: 15 qualifying suppliers Note: this programme will only be initiated in FY2023. |
| 12.2 Waste reduction | Effectiveness of waste management initiatives to reduce the Company’s waste footprint across the entire portfolio | Estimated amount of waste reductions achieved by the Company because of the Company’s internal waste management initiatives across the portfolio, calculated as a reduction in waste to landfill (by metric tonne), using an FY2020 baseline As a forward-looking measure, we will consider the introduction of a sustainable procurement policy that explicitly considers waste management | Threshold: 200 tonnes (3% reduction in waste to landfill) Target: 300 tonnes (5% reduction in waste to landfill) Stretch: 430 tonnes (7% reduction in waste to landfill) |
| 12.3 Property brokers | Awareness to property brokers around sustainability, including encouraging them to attract tenants to buildings that are Green Star certified or are otherwise sustainable from an energy, water and waste management perspective (Relevant to SDG 6.3) | ESG awareness campaign for property brokers, particularly on the benefits of Green Star rated properties | 10% of all property brokers |
| 12.3 Responsible resource consumption and business practices (Relevant to SDG 3.9, 6.3 and 16.5) | Raising tenant awareness and promoting consumer education regarding ESG, including improving their willingness to engage in sustainable consumption and resource efficiency initiatives. | Percentage of tenants (measured by Gross Monthly Rental) across the SA portfolio that receive awareness material around sustainability, including (but not limited to) recycling and responsible waste management; reduction of water consumption in tenanted spaces, including properties that are located in water-stressed areas (as classified by the WRI Aqueduct Water Risk Atlas); entering into green leases; the proper treatment of hazardous chemicals and materials, and how to avoid contaminating air, water and soil respectively with these chemicals; and Redefine’s anti-corruption and policy procedures | Threshold: 5% Target: 7.5% Stretch: 10% |
| 12.4 Life cycle approach | Ensure that life cycle assessments are conducted on our properties, to optimize their performance and long-term sustainability | Development of life cycle metrics per sector that optimize the reusability of our assets once they reach the end of their life cycle | Threshold: Metric per sector developed and approved Target: Metric developed and implemented to 10% of buildings per sector Stretch: Metric developed and implemented to 15% of buildings per sector |
| 12.7 Application of sustainable principles to procurement | Ensuring that suppliers apply sustainable principles set out in the supplier code of conduct, including ensuring that the basic rights of vulnerable workers in the supply chain are protected by their employers; and human rights and decent working conditions are promoted in the supply chain. (Relevant to SDG 8.8, 10.7, 16.4 and 16.10) | Number of existing suppliers that are subject to a supplier sustainability audit, that measures, inter alia,
| Threshold: 5 qualifying suppliers Target: 10 qualifying suppliers Stretch: 15 qualifying suppliers These will be desktop audits based on supplier self-assessment questionnaires |
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| KPA | KPI (measurement method) | Target | |
| 13.1 TCFD implementation | Identifying and addressing risks and opportunities posed by climate change that have the potential to generate substantive changes in operations, revenue, or expenditure, including:
| Application of a climate risk management report that is in line with the TCFD framework; and incorporating remedial action to address climate risks and take opportunities in the Company's net zero pathway | 100% integration of climate risks (physical and transition) in ESG Building Scoring Matrix |
| 13.2 Net Zero building journey | Increase generation of renewable energy throughout the portfolio | Year on year increase in renewable electricity capacity (as annual capacity installed across the portfolio in the reporting period) | Threshold: 2 MWp per year Target: 3 MWp per year Stretch: 4 MWp per year Please note that this is an absolute target that measures our progress in improving our renewable energy capacity, and is aligned to the targets agreed to in the 2021 sustainability-linked bond |
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| KPA | KPI (measurement method) | Target | |
| 16.1 Standards for conduct of security personnel | Provide training to security personnel to manage conflict in a way that respects human rights and avoids the use of unlawful behavior or punishment, and only utilizes force in limited and extreme circumstances | Percentage of security contractors that are hired by Redefine directly who are provided with training on conflict management and human rights | Threshold: 20% of all security contractors Target: 30% of all security contractors Stretch: 40% of all security contractors |
| 16.1 Community investment 16.1 Standards for conduct for employees | Investing in cultural and societal events that bring communities and shoppers together across national and cultural lines Ensuring that our employees know how to respond effectively to and de-escalate conflict-ridden situations, in a way that respects human and cultural rights. | (1) Number of on-site cultural and societal events facilitated or sponsored in support of national campaigns, e.g. Heritage Day, 16 Days of Activism (2) Total percentage of employees who have received training on human rights and conflict management | (1) Threshold: 2 events Target: 3 events Stretch: 4 events (2) Threshold: 70% Target: 80% Stretch: 100% |
| 16.3 Ethical behavior | Promoting internal facilities for employees to obtain ethical advice and maintain organizational integrity | Effectiveness of ethical behavioral interventions, gauged through the results of the annual Ethics Risk Survey | Threshold: 90th percentile (moderate risk ethics behavior risk maturity descriptor) Target: 95th percentile (low risk ethics behavior risk maturity descriptor) Stretch: 100th percentile (low risk ethics behavior risk maturity descriptor) |
| 16.6 Effective, accountable and transparent governance structures | Ensuring that the Company’s internal governance structures (below Board) reflect good governance practices | Results of an internal governance risk review (externally facilitated) | 100% compliance with King IV |
| 16.7 Management control | Achieve Black and Black Female representation targets |
as defined under the “Management” criteria in the B-BBEE property sector code, as revised from time to time. In the case of the Board, the targets are as defined in the Board Diversity Policy, as amended from time to time. |
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| KPA | KPI (measurement method) | Target | |
| 17.1 Tax compliance | Raising awareness for employees on how to remain tax compliant (particularly considering more stringent tax administration requirements), for them to pay their fair share of taxes in a timely and responsible manner | Methods taken to assist employees in remaining tax compliant, e.g. awareness campaigns and / or preferential rates negotiated with tax compliance practitioners in favour of Redefine employees | 1 awareness campaign encouraging tax compliance |
| 17.3 Mobilizing private capital towards supporting sustainable development | Use sustainability-linked funding to finance and promote sustainability | Successfully raising a green bond or sustainability-linked bond and achieving the targets set out in the bond | Targets achieved for the bond (for KPI-based bond); adherence to use of proceeds principles |
| 17.8 Collaboration with local industry bodies | Actively advocate for linking local industry groups to international sustainability bodies, as well as reducing regulatory impediments to adopting green technologies at scale | Active promotion of sustainability and cross-collaboration within the industry groups that Redefine influences, including lobbying to lift regulatory impediments to landlords introducing energy and water solutions. This will be measured through
| (1) Threshold: 2 real estate companies formally committing to the UN Global Compact Target: 5 real estate companies formally committing to the UN Global Compact Stretch: 7 real estate companies formally committing to the UN Global Compact (2) Lifting municipal impediments to wheeling arrangements |
| 17.14 Actively supporting government actions promoting the public interest | Supporting the government’s commitment to manage its climate change impact and just transition to a low carbon economy. | Increase in percentage of employees who use AskNelson for financial planning advice | 2% of all employees |
| 17.17 Promoting effective public-private and civil society partnerships aimed at promoting sustainability | Supporting multi-stakeholder partnerships through the UN Global Compact to share knowledge and perspectives with other companies on science, technology and development | Active participation in UN Global Compact-sponsored initiatives, including (a) The Young SDG Innovator Programme; (b) Climate Ambition Accelerator; (c) Target Gender Equality accelerator programme | Participation in at least 2 UN Global Compact initiatives |
| 17.19 Public disclosure of corporate sustainability information | Increasing the accountability, transparency and data quality of our corporate sustainability information | Percentage of quantitative information disclosed through corporate sustainability reporting that is subject to external verification | 50% (2022: 25%) score achieved under “Verification of ESG reporting” in Stakeholder Governance section of Sustainalytics |
Limited impact SDGs
