Notes & Explanation

Notes and explanation of GRI indicators omitted or identified for future reports
Further explanation

3.5 Guidance on defining report content
The content for this report has been guided by our CR&S strategy, achievements and progress against agreed action plans. We have used the Global Reporting Initiative (G3) criteria to inform the extent and detail of our reporting.

3.10 Explanation of any re-statements of information provided in earlier reports
There has been no re-statement of information other than the improvement in data integrity outlined on page 33.

3.11 Significant changes from previous reporting periods, in the scope, boundary, or measurement methods applied
Since our last report we have continued to improve our systems and processes for determining our entire portfolio’s sustainability. Changes from previous reporting periods are outlined in the report scope.

3.13 Practice of seeking external assurance for the report
The financial data used in this report is an extract from our Annual Report and has been verified and audited. We have engaged third party verification in this report.

4.8 Mission or value statements, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation
We have both an employees and a directors’ Code of Conduct in place to guide our people to ensure that their conduct meets the highest ethical and professional standards.

4.11 Precautionary Principal
DEXUS does not explicitly reference the precautionary approach in its risk management framework. However, in day-to-day operations, we employ sound risk management practices, which are described throughout this report, the Annual Report and CG Policy 2009 on www.dexus.com. In addition DEXUS has developed specific Environmental Management and Occupational Health and Safety Policies.

Economic management approaches
Detailed financial performance is provided, but further future work will focus on better quantifying the direct and indirect economic impacts of our operations.

EC3 Coverage of the organisation’s defined benefit plan obligations
DEXUS does not operate a defined benefit superannuation scheme. Consistent with Australian legislation, superannuation contributions are made by all employees to the superannuation fund of their choice.

EC4 Financial assistance received from government
No financial assistance was received from Government in 2008/09.

EC5 Range of ratios of standard entry level wage compared to local minimum wage at significant locations of operation
100 percent of standard entry level wages are above minimum wage levels at all our locations of operation.

EC6 Policy, practices and proportion of locally based suppliers at significant location of operation
Our operations are in primarily metropolitan locations and we use locally sourced labour and supplies where possible.

EC7 Local hiring procedures and proportion of senior management hired from the local community
DEXUS hires employees based on merit and the appropriateness of their skill set for all advertised positions. The majority of our employees are hired from within the region in which each of our businesses operates. We source and recruit our employees using local recruitment providers and vacancies are also advertised internally to ensure existing team members have the opportunity to progress their career.

EC8 Development of infrastructure investments and services provided primarily for public benefit
Our business operates primarily within the existing built environment. When we invest in new developments they generally connect to existing infrastructure and supporting facilities.

EC9 Understanding and describing significant indirect economic impacts, including the extent of impacts
Our operations are primarily situated within the built environment. We take care to ensure we connect to existing infrastructure and deliver economic benefit to the local traders within the areas of our operations.

EN1-EN2 Materials
The majority of materials used in DEXUS operations are energy and water, the consumption data for which has been provided. Refurbishment and development materials, including carpet, ceiling tiles, and lamps and tubes for lighting, are recorded on a site by site basis. Where one of our properties is aiming to achieve a Green Star rating, for example 1 Bligh Street and 123 Albert Street, the materials are of a high environmental standard and externally verified to optimise the Green Star rating achieved.

Other materials used include office consumables such as paper for printing, toners and other stationery. We have improved our selection and recording of these consumables. Significant work has been done to source paper with the highest recycled content at competitive rates.

EN5 Energy saved due to conservation and efficiency improvements
We have provided two years of energy consumption data and the percentage reduction achieved as a result of a number of initiatives. These initiatives are outlined on pages 32-45.

EN8 Total water withdrawal
All DEXUS water withdrawal is from regionally based water authorities. Our water withdrawal is principally to service base building services such as toilet amenities and cooling towers.

EN9 Water sources significantly affected by withdrawal of water
DEXUS operates in regions facing challenging water shortages however all of our water comes from regionally based water authorities. We have been combining our portfolio wide water saving initiatives with industry and regulatory schemes.

EN10 Percentage and total volume of water recycled and reused
A number of water recycling initiatives are in development. Refer to case studies on pages 39 and 41 for further detail.

EN11-EN15 Biodiversity
DEXUS operates primarily in metropolitan areas and our developments are generally on brown-field sites, thereby limiting our biodiversity footprint and impact on ecosystem services such as water, air, soil, flora and fauna. We have identified no major or direct impacts on biodiversity associated with DEXUS operations. All developments are subject to planning approvals and environmental assessment if indicated.

EN20 NOx, SOx, and other significant air emissions by type and weight
The only source of NOx from DEXUS operations would be emitted from fuel combustion. We contribute indirectly to emissions of SOx through our purchase of electricity.

EN21 Total water discharge by quality and destination
Our primary water discharges are storm water discharges from hardstand areas and rooftops of buildings.

EN22 Total weight of waste by type and disposal method
Due to the uncertain nature of the collection of this data we have instigated a review of our waste management practices across our portfolio and consequently have identified best practice methods for waste and recycling which are currently being implemented.

To ensure waste is disposed of in accordance with applicable legislation our property management teams access waste management procedures via our online Environmental Managers Manual. In addition we require our waste management contractors to be licensed and all waste management documentation is reviewed annually by external auditors to ensure compliance with our procedures.

EN23 Total number and volume of significant spills
DEXUS has a small number of fuel storage facilities, which are used for back-up power supply and fire pump operations. There have been no significant spills from any DEXUS facility in the reporting year.

EN24 Weight of transported hazardous waste
DEXUS does not produce hazardous waste as a byproduct of its operations. If hazardous waste exists at one of our properties, such as asbestos, it would be transported by a licensed contractor. Refer to explanation EN22 for waste transport and disposal methods.

EN25 Impact of water discharges
Water discharges from our properties are managed in accordance with regulatory requirements. Our Environmental Management Program assesses water discharge through site inspections and annual audits to ensure that all water leaving our properties complies with regulatory requirements as a minimum.

In addition, we require that any potential pollutants used at our properties, such as chemicals and fuels, are stored within secondary containment, in accordance with regulatory requirements.

EN27 Percentage of products sold and their packaging materials that are reclaimed by category
This indicator is not relevant to the types of products and services provided by our business.

EN28 Significant fines and non-monetary sanctions for non-compliance with environmental laws and regulations
DEXUS has complied with all environmental laws and regulations applicable to our operations and as a result we have not received any significant fines or non-monetary sanctions for non-compliance during 2008/09.

EN30 Total environmental protection expenditures and investments by type
DEXUS recognises that by investing in sustainability we not only reduce our environmental footprint but add value to our properties and the services we offer and in turn attract potential tenants and employees to our business. However we have not reported this investment in quantifiable expenditure in this report.

LA1 and LA2 Employment and turnover information by region
DEXUS does not report statistics on these measures by region. Turnover is reported internally with turnover and employment statistics consolidated in this report.

LA3 Benefits provided to full time employees that are not provided to temporary or part time employees
DEXUS provides the same benefits to its full time employees as it does to its permanent part-time employees.

LA4 and LA5 Percentage of employees covered by collective bargaining agreements and minimum notice period(s) regarding operational changes
DEXUS does not have any collective agreements as all employees are employed under individual contracts. There is a minimum of a one month notice period for termination of an employee in DEXUS employment contracts.

LA6 Percentage of total workforce represented in formal joint management-worker health and safety committees
DEXUS complies with all OH&S legislative requirements. DEXUS has a formal OH&S policy and has implemented a comprehensive risk management system to ensure effective management of OH&S across its operations. Although DEXUS has no formal OH&S committees, we do have an OH&S management program in place which actively involves employees.

LA7 Lost time due to injury
In 2008/09 we had five reported OH&S incidents and two resulted in time lost, one of 32 days and one of three days lost.

LA8 Serious diseases – policy, prevention, risk control, training
In Australia and New Zealand, serious diseases are covered by our OHS&L policies and processes. In general, DEXUS deals with serious diseases as it would other long-term illness. Each year the Group reviews and updates as appropriate, the adequacy of existing OH&S policies, programs and training for risks such as pandemic disease outbreaks.

LA9 Health and safety topics covered in formal agreements with trade unions
DEXUS does not have any formal agreements with trade unions as all DEXUS employees are employed under individual contracts.

We do, however, have an Occupational Health and Safety (OH&S) management program which actively involves employees and includes: participation of worker representatives in OH&S inspections; training and education; complaints and handling.

LA14 Ratio of basic salary of men to women by employee category
DEXUS has a commitment to attract and retain the best employees. We generally remunerate our employees above award. Annually, we analyse like for like roles and check ratios to ensure gender equity in compensation decisions.

HR1 Screening of significant investments – human rights
Our operations are in Organisation for Economic Co-operation and Development (OECD) countries which have legislation addressing human rights issues.

HR2 Percentage of significant suppliers and contractors that have undergone screening on human rights
DEXUS retenders contracts with service providers on a periodic basis. As outlined in our Supply Chain Strategy, on pages 22-23 of our 2007 CR&S Report, all new or renewed contractors must comply with the Principles of Fair Contracting which is annexed to our standard contracts.

HR3 Total hours of employee training on policies and procedures concerning human rights
All compliance induction training covers human rights including anti-discrimination and general code of conduct. Compulsory Code of Conduct training is undertaken by all employees every quarter.

HR4 Total number of incidents of discrimination and actions taken
There has been one incident of alleged discrimination by a customer at a shopping centre. The issue was referred to HREOC and has since been settled.

HR5 Operations identified in which the right to exercise freedom of association and collective bargaining may be a significant risk, and actions taken to support these rights
Within the areas of our operation, DEXUS recognises our employees’ rights to exercise freedom of association and collective bargaining.

HR6 Child labour
DEXUS employs an adult professional workforce in all countries in which it operates.

HR7 Forced and compulsory labour
DEXUS does not engage in forced or compulsory labour. We employ a professional workforce in each country in which we operate.

HR8 Percentage of security personnel trained in the organisation’s human rights policies or procedures
All security personnel are to be fully licenced and comply with all legislative human rights policies and procedures in accordance with legislative requirements. They are engaged under contracts complying with our Principles of Fair Contracting which encompass human rights policies.

HR9 Total number of incidents of discrimination and violations involving rights of indigenous people and actions taken
There were no incidents of discrimination or violation of indigenous rights reported against DEXUS in 2008/09.

SO2 Percentage and total number of business units analysed for risks relating to corruption
DEXUS has extensive risk management policies and processes in place. No incidence of corruption was identified or reported in 2008/09.

All employees within all business units are required to provide a declaration, every quarter, that they complied with DEXUS’s Code of Conduct. Adherence to the above policies and procedures is recorded by business units on a quarterly basis, subject to ongoing monitoring by Compliance and supported by an internal audit program.

SO3 Percentage of employees trained in organisation’s anti-corruption policies and procedures
All DEXUS employees receive induction and regular training on our anti corruption policy and procedures.

SO4 Actions taken in response to incidents of corruption
DEXUS has recorded no incidents of corruption during the reporting period. Please review our corporate governance policy and structure at www.dexus.com/corporate-governance.aspx. DEXUS has identified areas across the business where potential risks relating to corruption may exist and will be developing a policy and program for monitoring and future reporting. DEXUS operates within OECD countries which have established regulatory frameworks with which we fully comply.

SO5 Public policy positions and participation in public policy development and lobbying
DEXUS does not currently have a formalised policy on participation in public policy development and lobbying. However, this is under development. All employees are required to conduct themselves in an appropriate manner that does not bring the Group’s reputation into disrepute.

SO6 Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country
We have strict rules regarding the payment or acceptance of gifts or benefits to and from third parties, as set out in our Gifts, Benefits and Entertainment Compliance Policy. This policy prohibits financial or in-kind contributions to political parties and politicians. No gifts, benefits or donations were made to political parties or politicians in 2008/09.

SO7 Total number of legal actions for anti-competitive behaviour, anti-trust and monopoly practices
There were no legal actions brought against DEXUS for anti-competitive, anti-trust or monopoly practices during 2008/09. DEXUS, on behalf of a third party client, provided information to the ACCC in an industry review.

SO8 Significant fines and non-monetary sanctions for non-compliance with laws and regulations
There were no significant fines or non-monetary sanctions for non-compliance with laws and regulations brought against DEXUS during 2008/09.

PR1 Life-cycle stages in which health and safety impacts of products and services are assessed and percentage of products/services subject to such procedures.
The products and services provided by DEXUS, being real property and property services are managed in accordance with our risk management framework which includes OH&S.

PR2 Total number of incidents of non-compliance with regulations and voluntary codes concerning the health and safety impacts of products and services
No incidents of non-compliance have been reported to regulators during 2008/09. Incidents are managed on an ongoing basis through our Risk and Claims Management frameworks.

PR3 Type of product and service information required and percentage of products and services subject to such requirements
Each of our key businesses meet product and service information, disclosure requirements and contractual requirements, such as leases, as required by legislation.

PR4 Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labelling
There have been no incidents of non-compliance with regulations and voluntary codes concerning product and service information and labelling during 2008/09.

PR5 Practices related to customer satisfaction, including results of surveys measuring customer satisfaction
DEXUS reviews customer satisfaction through a number of stakeholder engagement initiatives such as tenant surveys. A number of improvements have been implemented this year which will provide greater opportunity to report future results.

PR6 Programs for adherence to laws, standards, and voluntary codes related to marketing communication
To ensure appropriate and accurate customer communications, all marketing and communications materials are reviewed and signed off by the respective Heads of Marketing and Communications, Legal, Compliance and the relevant Property or Corporate department.

We also have in place a unique, online Marketing Approval Database to facilitate this sign-off process, which also acts as a database and audit trail for all external marketing and communications materials.

PR7 Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing and communications
There were no incidents of non-compliance with regulations and voluntary codes concerning marketing and communications during the 2008/09.

PR8 Total number of substantiated complaints regarding breaches of customer privacy
DEXUS has numerous policies in place to ensure customer privacy and compliance with applicable regulations and laws. There were no complaints against DEXUS regarding breaches of customer privacy during 2008/09.

PR9 Significant fines for non-compliance with product responsibility laws and regulations
There were no significant fines for non-compliance with product responsibility laws and regulations during the 2008/09.