Governance

Corporate responsibility

Corporate responsibility risks and benefits

Over the last two years, British Land has undertaken a process of external consultation and internal assessment to identify and manage the corporate responsibility risks and opportunities that face the business. The Board is committed to ensuring the Company takes opportunities to enhance value that arise from appropriate actions. As part of the opportunity and risk management process, British Land has identified a property lifecycle consisting of five stages: site acquisition; design and planning; construction; asset management; and sale of assets. At each of these stages, the potential risks and opportunities are prioritised based on the level of potential negative or positive impact, the likelihood of occurrence and British Land's level of influence over them

The Company consults with external stakeholders and specialists in relevant areas of expertise, including: Arup on environmental issues; Corporate Culture on social issues; Hewitt Bacon & Woodrow on employee issues and the SMART Company on local community partnerships.

The Board commissioned independent stakeholder research in 2004 and 2005, on both occasions agreeing the scope of the research with external advisers. The findings of this formal research highlighted the issues of most importance to the Company's stakeholders.

British Land also draws on regular informal stakeholder dialogue, e.g. analyst sessions with socially responsible investors, meetings with Government officials and local councils, discussions with local community groups, and employee workshops.

In 2004, an internal review by British Land management, including the Corporate Responsibility Committee, the Strategy Working Group and other project working groups, identified the Company's main areas of potential corporate responsibility risk and opportunity. These were approved by the Audit Committee and the Board and were reflected in the Corporate Responsibility section of the Company's 2005 Annual Report.

Corporate responsibility development

Based on the 2005 stakeholder research and consultation programmes and the Company's knowledge of the property investment, development and management sectors, British Land's senior management and external consultants have further developed and refined the risks and opportunities identified in the 2005 Annual Report to become seven focus areas of corporate responsibility risk and opportunity.

These seven areas, reflected in the structure of the 2005 Corporate Responsibility Report, are: British Land people; supply chain; regeneration; community; resource use; waste management; and biodiversity. The Report has been subjected to independent professional review by Ashridge Centre for Business and Society as the Company felt it appropriate to have an external objective assessment of its activities.

Corporate responsibility objectives and targets

The Corporate Responsibility Committee, consists of the operational heads of department within British Land, whotake direct responsibility for objectives and targets. The Committee oversees a number of working groups, each established to focus on a key topic. Active working groups at the end of 2005 included the Strategy Working Group; the Energy Working Group, investigating the implications of the Energy Performance of Buildings Directive; the Broadgate Environment Working Group and the Supply Chain Working Group. In 2005 65% of targets were fully completed with a further 20% over 50% complete. Below are examples of progress made with targets.

Objective

To promote sustainable design and construction of developments.

We reviewed the implementation of the Sustainability Brief first published in 2004 and results will feed into an update to the Brief during 2006.

The Brief can be downloaded from the British Land website, www.britishland.com

Objective

To have an effective Corporate Responsibility Management System.

We issued our Corporate Responsibility Policy and launched the Corporate Responsibility Handbook. To allow easier access the Handbook is web-based and provides information for staff and suppliers about participation in British Land's Corporate Responsibility Programme. It is also a place where all relevant documents and policies can be accessed.

Objective

To manage relations with communities to achieve social and business benefits.

20 employees are providing reading support to children at Netley Primary School in Camden and 80 staff participated in volunteering days at Abney Park Cemetery and Hackney City Farm. Participant feedback was excellent, with the vast majority of employees saying they enjoyed the activities, felt personal benefit and were keen to take part in another challenge day. There was also a positive response from the organisations which have been supported.

Targets 2006

The 2006 targets have been set against the seven focus areas described above, with the aim of reducing risk and maximising opportunities. Targets set include:

Objective

Engage with first tier suppliers (consultants and contractors) to raise awareness of environmentally and socially sound goods and services.

Target

Provide corporate responsibility awareness training to staff responsible for purchasing, and pilot distribution of notes to suppliers detailing the corporate responsibility principles that British Land expects its suppliers to observe.

The Supply Chain Working Group is charged with delivering this target.

Volunteering at Hackney City Farm where British Land staff gave two days of their time for clearance and maintenance

Objective

To maximise ways of reducing and avoiding waste.

Target

Pilot implementation of the Waste Management Plan at Teesside Shopping Park and Queensmere and Observatory Shopping Centres, Slough.

Stakeholder research found that certain stakeholders felt more could be done to educate occupiers on waste segregation. The pilot programme will engage occupiers in agreeing the best solution to waste management at retail parks and shopping centres.

Objective

To promote efficient use of energy and water.

Target

Managers of poor energy-performing properties to identify root cause, improvement opportunities and targets. Review and develop as appropriate a water management programme.

Working with the Carbon Trust and environmental consultants Arup, British Land has established a process of benchmarking the energy performance of buildings. The worst performing properties are then set targets for improvement. Using data which is available on the Company-wide portal we are identifying opportunities to reduce water usage.

There are five other objectives covering biodiversity, community, regeneration, British Land people and corporate responsibility management. A total of 20 targets have been set against these areas. Full details of our activities during 2005, achievements against targets, and our targets for 2006 can be found in British Land's latest Corporate Responsibility Report which has been widely circulated. Copies are available from:

Claudine Blamey
Corporate Responsibility Executive
Tel: +44 (0)207 467 3455
Fax: +44 (0)207 467 2869
claudine.blamey@britishland.com

The Report is also available on the British Land website: www.britishland.com