With a view to continuously improve the quality of its assets, introducing innovative and unique experiences that attract tenants and customers to its spaces, L2D strives to create sustainable value for all its stakeholders.
We introduce IMPACT, our ESG value proposition. The factors of ESG are not new to our business, evidenced in our market leading initiatives and focus on achieving operational efficiencies. IMPACT allows us to package these factors under one umbrella offering to ensure efficient reporting.
IMPACT is also our commitment to quality, business growth and sustainability, while creating shared value for all our stakeholders. We are guided by principles of humanity and people engagement, as we understand that the sustainability and the impact of our business, today and into the future, benefits all stakeholders.
We do not want to just rebuild, we want to make an impact – Build Tomorrow Together. Our commitment to ESG underpins and enables our financial and operational performance, while safeguarding the relevancy of our portfolio by reducing exposure to commercial risk and asset obsolescence. This in turn continues to add shared value for our investors and all other stakeholders. With a sharp focus on the long-term sustainability of L2D we enhance our distinctive competitive edge.
Principles underpinning our approach to ESG
ESG focus areas
Natural capital is critical to the day-to-day functioning of our business and forms part of our strategic thinking. We remain focused on implementing our bold commitments in order to minimise our impact on the environment while protecting and preserving our natural resources. This will ensure that we drive operational efficiencies for the long-term sustainability of the business.
Our shopping malls are ecosystems that provide trading and experiential environments for some of the world’s most iconic brands as well as brands in high demand. With this in mind, we understand the importance of partnering with our stakeholders to accelerate our positive impact on the climate and our natural environment through our Good Spaces building block.
Supporting sustainable and inclusive economic growth within the communities in which we operate is imperative for our business. We are committed to actively serving, investing in, and supporting our communities while recognising the more significant stewardship role that our organisation must play.
L2D is part of a greater socioeconomic ecosystem, and we recognise that we are dependent on robust relationships with all our stakeholders. We appreciate the critical roles they play and remain committed to nurturing impactful, mutually beneficial relationships that combine to create sustainable value. Sustainability is central to everything L2D does and has become a point of pride for our people at all business levels. Our commitments in this regard are supported by a comprehensive implementation plan that outlines priorities, risks, opportunities, targets and action plans.
L2D Employee experience framework
Throughout our journey we encourage our people to live inspired, passionate, empowered and well-balanced lives. We lead our team in performance co-ownership, learning and continuous growth.
We ensure that we support our people in building their capabilities, while enabling them to lead from wherever they are. Our people practices are geared to supporting this culture in the organisation and towards achieving outcomes that are aligned to our overall strategy. We strive to keep our values of Passion, Accountability, Care and Excellence core to the way in which we work together.
We understand the importance of pre-empting and satisfying tenant needs to remain their landlord of choice as the provider of sustainable and relevant spaces.
Why we engage:
The public, especially in and around our shopping centres, comprises the shoppers who support our tenants. Shoppers are our most important customers, directly impacting the performance and quality of the tenants that rent space within our portfolio. Therefore, customer satisfaction is essential to ensure a sustainable rental income stream. Our goal remains to be regarded as retail destination of choice.
Why we engage:
Suppliers and Service Providers
We depend on a few key suppliers. These include utility providers such as Eskom and local municipalities. JHIR is our property manager, contracted to assist in managing the operations at our various properties. The interaction between this supplier and customers is significant and underpins the importance of having transparent communication channels.
Service providers are appointed in line with L2D’s Procurement Policy. Our property manager, JHIR, monitors the standard of performance, and issues are addressed at the monthly owners’ meetings, which L2D’s asset managers attend. JHIR is responsible for implementing the policy for procurement activities regarding the portfolio.
Our goal remains to be regarded as a preferred business partner.
Why we engage:
We are committed to contributing to meaningful social change by developing sustainable relationships within the communities that surround our properties. We strive to be a responsible corporate citizen and aim to engage and support communities in which we operate in a responsible, sustainable, constructive, and empowering manner.
Our goal remains to be considered a responsible community participant and responsible corporate citizen.
Why we engage:
By creating mutually beneficial partnerships with our communities, we ensure our own sustainability and endeavour to meet our communities’ needs.
Industry bodies represent the industry in conversations with other stakeholders and advocate for its benefit. L2D is represented, through its people, as a member across various industry bodies while leading several committees including the Green Building Council of South Africa, the South African Property Owners Association, the South African Council of Shopping Centres, as well as the SA REIT Association and Women’s Property Network.
L2D’s good standing within the industry is indicated by the regular appointment of our people to decision-making structures within industry bodies.
Our Goal remains to be regarded as a good corporate citizen and an active contributor in the property sector.
Why we engage:
At L2D, we embed an ethical culture across our operations as well as our financial reporting. Our corporate governance practices aim to build legitimacy through ethical leadership, reputation management and the adoption of an inclusive approach to business.
HOW CORPORATE GOVERNANCE CREATES VALUE
Within the Company’s ethical environment, effective corporate governance practices create and preserve value for all stakeholders while guarding against value erosion. L2D’s governance structures and processes create value for all its stakeholders by:
COMMITMENT TO GOOD GOVERNANCE AND THE PRINCIPLES OF KING IV™
The Board is L2D’s corporate governance custodian, leading the Company to embed an ethical culture and ensure effective control, solid performance, and legitimacy.
The Board believes that good corporate governance:
The Board understands that good corporate citizenship is a measure of the Company’s social responsibility andits adherence to legal, environmental, ethical, and other responsibilities to its stakeholders. In today’s world, corporate citizenship is becoming increasingly important to investors, customers, our people, and society as a whole.
To this end, the Board recognises its rights, obligations and responsibilities towards society, stakeholders, and the environment. The Social, Ethics and Environmental Committee assists the Board in evaluating and monitoring measures and targets agreed upon with the leadership in all areas.
Furthermore, L2D’s legitimacy resides in the quality of its assets, with a strong heritage and a track record of being property pioneers, particularly in the retail sector. This is evidenced by the Company’s ability to remain relevant to its customers and is known as a sector benchmark in innovative property asset management capabilities.
ETHICAL LEADERSHIP AND CULTURE
The Company’s leadership is fully committed to the application of, and compliance with, the highest ethical standards. The Board firmly believes in leading by example and ensuring that the tone is set at the most senior level of the leadership structure. L2D’s code of ethics, as set out in its people policies, is strictly adhered to in the development and implementation of all business and growth strategies.
The Company’s leadership makes all decisions with due consideration to the code. To maintain the highest levels of integrity, honesty and transparency, the Company’s people are all required to familiarise themselves with and adhere to the code. In addition, our people are required to comply with the various policies that support the code.
Furthermore, underpinning the code are the Company’s values, which are integrated into the performance management process and shape how L2D behaves and conducts business. The Company has a zero-tolerance policy on any issues relating to unethical conduct. Therefore, the Company does not, at any level, condone or tolerate any form of fraud, corruption, unlawfulness, or other conduct that is irregular. During the year a new anti-bribery and corruption policy was adopted.
“Congratulations to Liberty Two Degrees on the tremendous green accomplishments across their portfolio. Achieving Green Star Existing Building Performance ratings (EBP) at all of the company’s assets shows a true commitment to sustainability. These recently-rated iconic spaces are not only household names within their communities, they attract global attention and are a great showcase of the benefits of greener retail.”
“At the GBCSA, we are particularly excited about what has been achieved at the Sandton City precinct. A 6-Star rating is a triumph to be celebrated. EBP ensures that buildings are not only well-built, but are continually functioning as efficient, healthier green spaces. It’s fitting that this world-class destination should achieve a world leadership rating and we hope the tenants and visitors to the precinct feel the benefits of this.”
- Lisa Reynolds, CEO Green Building Council South Africa
L2D has successfully collaborated with the GBCSA on the certification towards a greener future. L2D’s achievement of green star ratings on the entire retail portfolio is to be commended.
SAPOA is proud to be associated with L2D as they have a culture committed to innovative thinking and making a difference. Their ability to create and forge sustainable solutions for the greater benefit of society as a whole is to be applauded.
Their retail portfolio now comprises of buildings that are energy efficient and sustainable. L2D have successfully demonstrated that importance of sustainable development principles, which they have incorporated into the wider process of design, construction and performance of their buildings.
- Neil Gopal, CEO SAPOA
“As an industry body, we recognise excellence and distinction in shopping centres. Companies innovate customer experience through the discovery of opportunities, an understanding of constraints and by differentiating from competitors.
Seeking to improve customer experience using the sustainability lens makes L2D one of the most innovative and responsible shopping centre owners. We therefore applaud L2D for this achievement, we recognise L2D as a point of differentiation and their ongoing efforts to achieve unprecedented levels of ecological balance and a well-rounded responsible experiential offering for their tenants, shoppers and service providers”.
- Amanda Stops, CEO South African Council of Shopping Centres