Intu Corporate Responsibility Report 2014Notes to the report 26 Assurance Independent assurance of Intu’s 2014 CR Report: ISAE 3000 statement 27 For more information visit intugroup.co.uk/cr2014

Better togetherCorporate Responsibility Report 2014

ContentsOur 2014 Corporate Responsibility Report considers the material social and environmental issues faced by our business and evaluates the outcomes and achievements across our three key pillars of communities and economic contribution, environmental efficiency and relationships.

OverviewHighlights 1Intu at a glance 2Message from our Chairman 3Business model 4Our CR strategy 5Materiality 6

Communities and economic contributionProgress against our commitments 7Community investment and programmes 8Local and national economic contribution 9In focus: Skills and employability 10Working together with our community partners 11

Environmental efficiencyProgress against our commitments 12Carbon and energy management 13Water management 13Waste management 14Sustainable construction 15Sustainable travel 15In focus: Carbon Trust award winners 16

Contact detailsAlexander NicollCorporate Responsibility DirectorTel: 020 7860 4220Email: [email protected]

RelationshipsProgress against our commitments 17Key stakeholder relationships 18Our people 20Health and Safety (H&S) at our shopping centres 21In focus: intu gets active 22

Data appendixEPRA environmental KPI tables 23Additional environmental data 24Social data 25External recognition 26Notes to the report 26

AssuranceIndependent assurance of Intu’s 2014 CR Report: ISAE 3000 statement 27

For more information visit intugroup.co.uk/cr2014

Intu Properties plc 2014 Corporate Responsibility Report

Overview Communities and economic contribution

Environmental efficiency

Relationships Data appendix Assurance

Overview

External recognitionBenchmarking against our peers through indices ensures that we remain focused on best practice and continuous improvement. Some of our achievements in these benchmarks visible below and are detailed on p26. We monitor the actions of our UK REIT competitors and work with them on important industry issues through membership of organisations such as the British Council of Shopping Centres (BCSC).

p26 for more information

Highlights

97%Waste diverted from landfill

9%Reduction in electricity consumption since 2013

30%Reduction in absolute carbon emissions since 2011

WinnersCarbon Trust Standard Bearers Awards ‘Best continuing reduction’ category

115,000Jobs supported directly and indirectly by intu and its retailers

£1.3mTotal cash equivalent community support, including facilitated donations

Reaccredited BitC CommunityMark holderOne of only 52 UK companies to have achieved the BitC CommunityMark

1,200People directly reached by our community projects

84%Response rate to latest Employee Survey

26,500Shopper interviews held across our centres

17,000Responses to ‘Tell intu’

1,700Training days across the Group

Together with our communities

With three-quarters of the UK population within easy reach of one of our centres we touch the lives of people across the country. We help build social togetherness, giving people a stronger sense of place and belonging.


Better for the environment

Our stakeholders expect us to carefully manage our impact on the environment. We’re committed to measuring how we’re doing and taking the right steps to do things better.


Together with our stakeholders

Maintaining strong relationships with groups and individuals that are part of, or influence, our business is vital. We need to understand their needs and expectations.


01Intu Properties plc 2014 Corporate Responsibility Report




Overview

Intu at a glanceIntu owns and manages some of the best shopping centres, in some of the strongest locations, right across the country including nine of the UK’s top 20.

Super-regional centres (66%)1. intu Trafford Centre (£2,200m)2. intu Lakeside (£1,255m)3. intu Metrocentre (£928m)4. intu Braehead (£599m)5. intu Merry Hill (£435m)6. Cribbs Causeway, Bristol (£243m)

Town and city centres (34%)7. Manchester Arndale (£430m)8. intu Derby (£420m)9. St David’s, Cardiff (£308m)10. intu Eldon Square (£273m)11. intu Watford (£335m)12. intu Victoria Centre (£314m)13. intu Milton Keynes (£278m)14. intu Chapelfield (£261m)15. intu Bromley (£171m)16. intu Potteries (£165m)

Asset valuation

£9.0bn*(2013: £7.6bn)

1

2

3

45

67

8

9

10

11

1213

141516 **

* Including Group share of joint ventures.** Other properties <£100 million (£350 million).

Town and city centres (34%)7. Manchester Arndale (£430 million)8. intu Derby (£420 million) 9. St David’s, Cardi� (£308 million)10. intu Eldon Square (£273 million)11. intu Watford (£335 million)12. intu Victoria Centre (£314 million)13. intu Milton Keynes (£278 million)14. intu Chapelfield (£261 million)15. intu Bromley (£171 million)16. intu Potteries (£165 million)

Super-regional centres (66%)1. intu Tra�ord Centre (£2,200 million)2. intu Lakeside (£1,255 million)3. intu Metrocentre (£928 million)4. intu Braehead (£599 million)5. intu Merry Hill (£435 million)6. Cribbs Causeway, Bristol (£243 million)

Asset valuation

nb0.9£ *(2013: £7.6bn)

* Including Group share of joint ventures.** Other properties <£100 million

(£350 million).

Our year in facts and figures

Occupancy

95%

Direct employees

2,459and almost 89,000 employed in our centres

Over

21m sq. ft.of retail, catering and leisure space

Carbon reduction since 2011

30%

Passing rent

£401 million1/2of the UK’s population visit an intu centre each year

Debt to assets ratio

44%Substantial development pipeline

£1.9 billion £1.3 billion in the UK and £0.6 billion in Spain

MayAcquisition of intu Merry Hill and intu Derby

MarchConstruction starts on new cinema and restaurant quarter at intu Potteries

JanuaryConditional development agreement for intu Broadmarsh

FebruaryWorks commence to refurbish intu Victoria Centre and create a new catering cluster

DecemberAnnounced acquisition of Puerto Venecia, Zaragoza, Spain. Planning consent granted for major extension at intu Braehead

SeptemberRefurbishment of intu Lakeside food court complete

JuneJoint venture formed with KWAP at intu Uxbridge





Overview

Message from our Chairman

2014 marked good progress in the development of intu as the UK’s foremost shopping centre owner and operator. Similarly, the past year

recorded solid achievements in our corporate responsibility (CR) praxis, with all our centres and 40 Broadway teams closely involved in intu’s environmental, community and stakeholder initiatives.

Because of the location of our centres and our necessary engagement with the communities around us, for intu, responding to our corporate responsibility is an integral part of our commercial life, besides the good it achieves of itself and the satisfaction it gives all of us.

Award winning Our success has been validated by the achievement of several high-profile awards. In June intu once again achieved the Business in the Community CommunityMark award, the UK’s national standard for leadership and excellence in community investment. We successfully passed the requirements for admission to the list of currently only 52 companies back in 2010 and holding on to the award is a great achievement as renewal is only possible if progress has been made against new

and challenging goals set for the organisation at the time when the CommunityMark was first won.

On the environmental front we have won several prestigious awards. In October Intu won the ‘Best in continuing carbon reduction’ category in the Carbon Trust Standard Bearers Awards. The Awards are given to Carbon Trust Standard Bearers that have demonstrated exceptional performance in certification achieved over the past year. All the companies successfully awarded the Carbon Trust Standard, numbered in the hundreds, are eligible. Intu’s was one of only four awards announced at a conference hosted by the Carbon Trust last October.

intu set itself a carbon reduction target in 2011 to decrease emissions by 30 per cent. With a portfolio consisting of more prime shopping centres than anyone else in the UK, but some constructed in the 1970s, it was seen as an ambitious goal. It is a testament to the hard work of many throughout the business that this challenging target has been met.

It is very noteworthy that during the past year intu Chapelfield, Norwich received a Gold Zero Waste Award in recognition of efforts to reduce waste and minimise environmental impact. Organised by letsrecycle.com, the long-running awards scheme celebrates the most innovative and successful initiatives in waste reduction. These significant awards are discussed in greater detail in this 2014 CR Report .

We continue to work closely with Corporate Citizenship on the annual verification of our environmental and social reporting and continue to align ourselves with best practice initiatives in how we report to all our stakeholders. In this latter regard we have now completed our second full year of engaging with key stakeholders within and beyond intu via a 360 degree review process. This is generating useful feedback and some practical suggestions for our consideration.

Employee engagementWe know that our employees are often involved in charitable and community pursuits in their own time and their experiences contribute to their roles in the running and development of our business. 2014 has seen another successful year for existing employee support and engagement programmes and the launch of a new scheme.

Throughout the year our projects encouraged employee mentoring and volunteering. Colleagues have participated in many projects over the past 12 months. The intu Employee Recognition Fund (ERF) supports employees’ charitable and community contributions made in their own time. During 2014 the total raised by staff with, in each case, a top-up from the ERF was £24,000. All the money went directly to a variety of charity and community groups. As I forecast in this Statement last year, 2014 saw the introduction of the first Company-wide Employee Volunteering Scheme which has got off to a good start with colleagues taking advantage of the two days paid leave per year offered by intu to facilitate personal and team community action.

Looking aheadIntu has grown and made progress over the past year and has ambitious plans looking forward. Aligned with this our community and environmental engagement will both support our broader business goals and, on its own account, deliver meaningful outcomes to the communities we serve, our customers, our employees and our community partners.

Patrick Burgess Chairman 27 February 2015

Intu has grown and made progress over

the past year and has ambitious plans

looking forward

Donated to community organisations

£1.3mReduction in C02 emissions since 2011

30%03Intu Properties plc 2014 Corporate Responsibility Report




Overview

As a long-term business with the very best shopping centre assets, we recognise the importance of actively caring for the communities and the environment around us. Involving our employees, retailers, community partners and local authorities in close engagement while continuously striving for environmental efficiency underscores our long-term embedded approach to promote sustainable operations and business development.

Our business model, which can be seen in full on page 8 of the 2014 Annual Report, sets out the key objectives of our business. On this page we highlight how our CR work is linked to and supports our business model.

Business modelOur focus, scale and quality set us apart, allowing us to create value for shoppers, retailers and shareholders.

Balanced approach to risk intu brand

L

ong-te

rm fo

cus

Tale

nted

em

ploye

es

Our enablers Robust capital structure

4Generating

value for shareholders

1Creating

compelling experiences

2Establishing

enduring relationships with retailers

3Delivering long-term

growth

Our customers

Securing our licence to operateOur centres cannot be developed or marketed without engagement with local stakeholders. Local authorities, town centre management bodies and business partnerships help our centres to become key economic players for their local community and, more widely, for regions of the UK. Our CR initiatives work to bring partnerships together, including our employees, and foster relationships which help drive efficiency in our daily business operations and contribute to achievement of our longer-term business objectives. For more details see our Relationships section on page 17.

Helping to manage riskCR risks arise in a number of ways. By working to identify compliance and reputational risks ahead of time our CR programme works to ensure our current business model and operations are managing the issues now that could harm our business in the future. For more information see our CR strategy on page 5 and Materiality on page 6.

Protecting and enhancing our reputationMany retailers already have their own CR programmes. Many of those who use our shopping centres expect us to operate with a sustainable mindset. By demonstrating a strong commitment to all of our stakeholders we can deepen retailer and shopper relationships where there is a common CR interest, especially around environmental and community issues. For more details see our Communities and economic contribution section on page 7.

Contributing to cost management and protecting shareholder valueOur approach to environmental and facilities management underpins our broader desire to operate in an environmentally responsible manner. It also contributes substantial cost savings. For more details see our Environmental efficiency section on page 12.

p08 For the full business model see page 8 of the 2014 Annual Report





Overview

Our CR strategyAt intu we believe that CR must be driven by the strategic aims of the Company and be subject to the same types of governance controls as other areas of the business.

CR governance

Communities and economiccontribution

Environmentalefficiency

Relationships

Ourcustomers

2Establishing

enduring relationships with retailers

4Generating

value for shareholders

3Delivering long-term

growth

1Creating

compelling experiences

Our CR approach is based on three key pillars: communities and economic contribution, environmental efficiency and

relationships with our stakeholders. Our approach is informed by the strategic objectives of our business along with the issues that are most material to our key stakeholder groups.

CR governanceWe have a well-established protocol to manage all aspects of CR. The Board takes direct responsibility for determining policy and strategic direction on CR matters. Our broad strategic direction is disseminated through the Board CR Committee and progress against our operational objectives is delegated to the CR Management Committee.

The Board CR Committee is chaired by Intu’s Chairman. The Chief Executive, a Non-Executive Director, Corporate Responsibility Director and Corporate Responsibility Manager are members. The CR Management Committee is chaired by the Corporate Responsibility Director and members include colleagues from across our business functions. Both Committees met three times in 2014. Issues discussed at the Board CR Committee included our corporate volunteering policy and approach to environmental reporting while the CR Management Committee monitored performance in key areas and considered further development of initiatives such as the Retail Academy.

CR risksThe Group assessment of CR risks forms part of a comprehensive review of the full spectrum of corporate risks, undertaken as part of the Company’s annual reporting process.

Responsibility for the executive management of the processes involved in each area of risk is assigned to the appropriate individual member, or group of members, of the Board or the Executive Committee. The identified CR risks and the Board members or senior executive designated to manage them are set out in the Responsibility section of our website. We also use our stakeholder engagement process to highlight those CR issues which are most material to our business.

ComplianceThe Company complies with all applicable legislation and has been subject to no sanctions or fines for environmental, health and safety or any other infringements in 2014. There were no non-compliances with our Code of Professional Conduct in 2014 by our employees or representatives. All relevant employees receive anti-bribery and corruption training.

For more information visit intugroup.co.uk/cr2014





Overview

Materiality

We engage with a wide range of internal and external stakeholders to make sure we are focusing, and reporting, on the CR issues

which are most important to our business and our stakeholders.

In November 2014 we carried out our second formal materiality engagement exercise, through small group interviews with representatives from our key external stakeholder groups. Our external stakeholder groups include local authorities, investors, retailers, suppliers, industry bodies and our community partners. We also engaged with a range of internal stakeholders including our Chairman and a Non-Executive Director.

We focused specifically on materiality through these interviews as we looked to refine our work from 2013. We used the categories covered by the socially responsible investment (SRI) indices which we take part in to form the basis for the categories we discussed. We did this because it allowed the category selection to be on an objective basis and because we believe these indices cover a sufficiently broad range of issues. We spent time understanding which issues were more or less important to our stakeholders and also why this was the case. In addition to discussing these issues with our stakeholder panel we also discussed them with our CR Management Committee, which includes representatives from across our business, as this gave us a good understanding of the importance of the different issues from Intu’s perspective.

One of the key learnings from this process has been in understanding that while our stakeholders might agree, to an extent, on which issues are most important with regard to Intu, the reasoning behind that importance does vary significantly. In some cases the focus might be reputational or even employee values-based while in other cases the considerations are more operational.

Our definition of materiality follows the Global Reporting Initiatives interpretation which says that material topics are those that “have a direct or indirect impact on an organisation’s ability to create, preserve or erode economic, environmental and social value for itself, its stakeholders and society at large”.

We believe that our materiality matrix has been improved since 2013 based on the changes implemented. Firstly, as the spread of answers was greater than in 2013, this allowed for certain issues, such as bribery and corruption, occupational health and safety and community integration, to be pulled out as areas where it is important that we report on our approach and progress, whereas, previously answers were bunched so tightly it was difficult to make that differentiation. Secondly, we now feel better informed of not only which issues are most important to our stakeholders but also why they are important. Finally, stakeholder opinion has now been balanced with the broad internal opinion of the CR Management Committee.

The results of our stakeholder engagement work have been presented and discussed at the Board CR Committee and CR Management Committee meetings. We plan to continue to use our stakeholder panel to inform our thinking on CR issues in the future. Corporate governance

Bribery and corruption Risk and crisis management Supply chain management Biodiversity

Building materials Climate strategy Operational eco-efficiency Community integration Training and development

Community development Labour practices and human rights Occupational health and safety Stakeholder engagement

1 678

910

1112

13

14

23

4

5

3 45 6

7

8

1112 13

14

910

Increasing importance to intu

Incr

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21





Overview





Together with our communitiesOur shopping centres are integral to the communities they serve, providing places to meet, eat, drink and socialise. They support charities and community organisations that address fundamental issues in modern society which are important to the long-term success of our business.

Employee time donated

4,600hours

People reached by our community activities

1,200

Progress against our commitments

Communities and economic contribution

Commitment from 2014 Our progress Plans for 2015Increase employee volunteering across our business

We launched our Employee Volunteering Scheme in 2014 and this was taken up by 60 intu employees

Work to encourage greater take-up of volunteering and work with existing volunteers to share their experiences

Work with our community partners to further improve our evaluation process

Our partner pack has been developed in consultation with marketing teams at centres and community partners

Investigate further improvements 12 months on Increase use of social media to publicise community partnershipsConsider models for a national intu apprenticeship scheme

Expand our retail education programmes under the banner of Retail Academy

Work has been ongoing around retail education programmes

Achieved Not achieved Ongoing

Together with our communitiesWe are committed to supporting projects which assist young and disadvantaged people living around our shopping centres.

Going Outward Bound

During 2014 intu supported places for 70 young people to take part in an Outward Bound course aimed at helping the participants to achieve their potential. The young people were supported by intu volunteers

What we’re doingCommunity investment and programmesWe believe that we are able to make a significant difference to young and disadvantaged people living around our shopping centres and particularly those in economically deprived areas. Making a difference in the communities we serve makes sense for us as these are the communities that help our business to thrive. Our community projects focus on youth, education and the prevention of anti-social behaviour.

Our approachWe have a two-pronged approach to community investment. We organise centre-based projects from a corporate level and also provide a devolved budget to each of our centres to allow the centre teams to decide on projects based on their local knowledge.

Our community work includes a mix of projects covering all of the locations where we operate. We have a number of long-term relationships with community partners; for instance, we have worked with The Outward Bound Trust since 2009.

Centres will occasionally use their devolved budget or gifts in kind to complement centrally funded projects. For example, in 2014, having seen the benefits of our relationship with Create at other centres, intu Victoria Centre set up their own project with the charity using their own devolved and development budgets to deliver the project.

Our approach to community programmes allows us to develop relationships with both national and local charities. We believe that this mix is key to the success of our community strategy. While national charities give us the scope to support projects across several of our centres, local charities have the potential to focus on issues that are location specific.

For a full list of all our corporate community partnerships, and the shopping centres they relate to, please see page 25.

Our impactAs part of our work with community partners we actively engage in project evaluation in order to understand the impact on the community. With ongoing projects we use the evaluation reports along with our partner pack to further develop the impact that projects might have. As part of our evaluation we consider not only how many people have been reached but also the type and level of the impact.

Examples of information gleaned from project evaluations in 2014 include:

— over 85 per cent of participants on the Outward Bound courses supported by intu felt more self-confident as a result of the course several months after they had finished it

— over 90 per cent of participants on our projects with Create felt that they had improved their team-working skills

The impact of our work in the community does not just benefit the local community but also our employees. In 2014 we rolled out an Employee

Volunteering Scheme. We have been collecting feedback from our employees to understand the benefits of volunteering to them and , indirectly, to intu. 77 per cent of employee volunteers believed that they had improved their communication skills or problem-solving skills and 73 per cent felt their job satisfaction had improved.

At intu we work to develop strong community projects but at times challenges arise which cause our projects to not have as successful an outcome as we would hope. In late 2014 one of our charity partners, Youth Philanthropy Initiative (YPI)England, ceased operating; we have had a very successful relationship with YPI over a number of years and believed that its work fitted very well with our own values. Through meetings with a previous Director of YPI we have been able to make a link with a new charity, First Give, which uses student-led sessions to promote community activity among young people, thus enabling us to continue supporting the education of young people around philanthropy.






Charitable donations in 2014During the year, intu donated £318,000 in cash to community organisations and charities (2013 – £345,000). In addition, our directly-managed shopping centres and head office provided the equivalent of £606,000 of in-kind support, including employees’ time working in the community and the provision of free mall space and services. Centres facilitated a further £418,000 through collections by charities on the malls. The total cash equivalent community support for the year was £1.342 million (2013 – £1.951 million).

The value of space donated to charities and community organisations on our malls has fallen by 45 per cent in 2014 compared with 2013. The predominant reason for this is the introduction of an internal discounted community rate for valuing and recording space donated. We have moved to this approach as it is seen as better practice than using the retail rate as it gives more of a cost indicator and makes our donations more comparable with other industries. Analysis of the number of charities and community organisations on our malls in 2013 and 2014 for a significant sample of our standing portfolio has shown the amount of space physically donated to be of a similar level between the two years.

Local and national economic contributionThe Intu UK portfolio comprises 18 regional shopping centres and a retail park located across the country, with a total of 19.7 million sq. ft. and over 2,900 stores. Since 2011 we have annually commissioned Nathaniel Lichfield & Partners to assess the economic contribution of our centres.

These reports allow us to more clearly understand the beneficial impact that our operations have, directly and indirectly, on the local, regional and national economies. We believe that recognising these impacts and outputs will enable us to better understand our community footprint, help to underpin our planning applications and allow us to demonstrate to investors the strength of our presence in regional centres around the country. This independent report, which includes our joint venture centres in its findings, found that in 2014:

— 89,000 jobs were provided by intu and its retailers

— 26,000 jobs were indirectly supported by intu and its retailers

— £297 million in business rates were paid by intu and its retailers

TaxAs a good corporate citizen we believe that paying and collecting taxes is an important part of our role as a business and our wider contribution to society. Intu does not employ tax avoidance strategies or undertake transactions whose sole purpose is to abuse the tax system. We are committed to acting with integrity and transparency in all tax matters and have an open, up-front and no surprises policy in dealing with HMRC.

The Group pays tax directly on overseas earnings, any UK non-property income under the REIT rules, business rates, and transaction taxes such as stamp duty land tax. In the year ended 31 December 2014 the total of such payments to tax authorities was £26.1 million, of which £25.1 million was in the UK, £0.5 million in the US and £0.5 million in Spain. In addition, the Group also collects VAT, employment taxes and withholding tax on dividends for HMRC and the Spanish tax authorities. Business rates, principally paid by tenants, in respect of the Group’s UK properties amounted to around £297 million in 2014.

Further details can be found in our Statement of tax principles available on our website.

Case study: Tyneside Cinema

Lights, camera, action

The 2014 intu Northern Stars Documentary Academy was an incredible opportunity for 17 young people from the North East to take

part in a training programme in documentary filmmaking, leading to the creation of a number of very original short films.

Participants worked with industry professionals to develop their creative talents, learn filmmaking techniques and technical abilities, improve numerous employability skills such as teamwork and communication, and gain an Arts Award qualification.

The Academy, which intu has helped develop with Tyneside Cinema over the last two years, culminated in a Gala Screening event. The Academy programme was preceded by an outreach programme which engaged 175 young people in taster workshops.






Case study: Retail Gold and West College Scotland

Skills and employability

The retail sector has long been an attractive career choice for young people. The industry is considered to offer flexible working practices, scope and

variety of work and job security. Furthermore, the diversity of our sector means that it can welcome those with educational and other, perhaps physical, disadvantages who would find it more difficult to develop their skills and sense of purpose in other fields.

2014 saw another successful round of our long-running Retail Gold partnership, involving retailers at intu Eldon Square and intu Metrocentre. As an additional support for the young people drawn from local schools the latest round was launched with a tailored intu World Class Service module to better prepare the students for their retail placement.

Since 2005, intu has been supporting and now directly runs Retail Gold which has placed over 300 students with retailers in our centres where they gained valuable skills and experience. Another project offering direct and practical help to not just young school-leavers but all local unemployed people has entered a third year with the support of intu via intu Braehead. In partnership with West College Scotland, intu is supporting tuition and help for those in need who attend classes at the Kirklandneuk Community Centre. Without intu’s help much of this direct community support would have ceased to be available.

Young people supported by Retail Gold since 2005

300

I’ve thoroughly enjoyed my time

participating in the World Class Retail Gold training programme

Retail Gold Participant






Working together with our community partnersCase study: Create

Getting creative

Intu has been working with Create since 2010 to use creative arts of all mediums to break down barriers among different groups of young people and to aid them

in their development.

For the first time in 2014 we planned projects with Create across three of our centres: intu Lakeside, intu Uxbridge and intu Milton Keynes. The projects at intu Lakeside and intu Uxbridge were both completed in 2014 and involved young people from mainstream schools, special needs schools and young careers groups working together with the support of Create’s writers and artists and with the support of intu volunteers to use drama to create written stories which they then translated into images. Those images were then painted up on a very large scale and are now proudly on display at the centres. This not only gives a sense of pride to participants but also allows intu to showcase examples of our work with the local community.

We are delighted that intu Chapelfield

went that extra mile on behalf of Break and the GoGoGorillas! project,

which translated into more support for the young people we work with

Chris Hoddy Break

Volunteering was a valuable experience,

the artist really aided the creative thought process

and it was great to support the young carers

Christopher Johnstone Intu employee volunteer – Create

Retail Gold is like the teacher you never forget, freeing young

people to recognise and demonstrate their talents

and skills for the futureTracy Allison

Employers in Education

Creating moving and sometimes challenging films, this has a hugely positive impact on the

lives and self-confidence of the participants

Mark Dobson Tyneside Cinema

Our national partnership with intu

allows TCV’s Green Gyms to bring people together to transform

their environment while improving their health and skills

Lizzy KaimakamisThe Conservation Volunteers

Super-regional centres 1. intu Trafford Centre2. intu Lakeside3. intu Metrocentre4. intu Braehead5. intu Merry Hill6. Cribbs Causeway, Bristol

Town and city centres 7. Manchester Arndale8. intu Derby9. St David’s, Cardiff10. intu Eldon Square11. intu Watford12. intu Victoria Centre13. intu Milton Keynes14. intu Chapelfield15. intu Bromley16. intu Potteries17. intu Broadmarsh18. intu Uxbridge







Reduction in carbon emissions

30%Compared with 2011

Waste diverted from landfill

97%2013: 96%


Better for the environmentWe have a responsibility not just to manage and minimise our day-to-day environmental impacts but also to share good practices and influence our delivery partners, retailers and visitors towards more sustainable behaviour. Ultimately, we want to create a more sustainable operating and shopping environment.

Commitment from 2014 Our progress Plans for 2015Reduce our carbon emissions by 30 per cent by 2014 from a 2011 base

By the end of 2014 we had reduced our carbon emissions by 30 per cent compared with 2011

Reduce carbon emissions intensity by 50 per cent by 2020 compared with 2010

Divert 95 per cent of waste away from landfill by 2014

In 2014 we diverted 97 per cent of our waste away from landfill. Our recycling rate reached 69 per cent

Divert 99 per cent of waste away from landfill by 2020

Reduce water consumption by 10 per cent by 2014 from a 2011 base

Reduced water consumption by two per cent compared with 2011

Reduce water use intensity by 10 per cent by 2020 compared with 2010






Our approachThe Group is committed to the spread of good energy practices through behavioural and technological change in all areas where we have an influence.

In 2014 intu achieved the Carbon Trust Standard for a third time, increasing our score by 14 per cent compared with our 2012 submission. We also received the Carbon Trust Standard Bearers Award for ‘Best in continuing carbon reduction’ in 2014; for more details on this award and how we achieved it please see the case study on page 16.

We employ a Group Energy Manager to facilitate intu’s commitment to saving energy and reducing our carbon intensity through behavioural change and utilisation of technology. Each of our centres has an Energy Champion responsible for energy reduction at the local level as well as communicating successes, and challenges, through our Energy Network.

This year we reduced our absolute carbon emissions (CO2) by 11 per cent compared with 2013 and by 30 per cent compared with 2011, on a like-for-like portfolio basis, successfully achieving our 2014 target of a 30 per cent reduction (against a 2011 base).

Our total electricity consumption has fallen by nine per cent compared with 2011 and by 28 per cent since 2014, on a like-for-like portfolio basis. We largely attribute this fall to the roll-out of LED lighting across our directly-managed centres but it has also been influenced by actions taken by individual centres, including effective management of car parks and cleaning schedules so that we are not lighting areas, beyond safety lighting, that do not require it. Following the achievement of our 2014 target we have now developed a new carbon target to reduce our carbon emissions intensity by 50 per cent between 2010 and 2020.

What we’re doingCarbon and energy managementThe Group recognises that we have a responsibility not just to manage and minimise our day-to-day impacts on the environment but also an opportunity to share our good practice and influence our delivery partners, retailers and visitors to our shopping centres. We are also committed to contributing positively to the creation of a more sustainable built environment and endeavour to make this a primary consideration in the creation and expansion of our shopping centres.

As the owner of 18 shopping centres and a retail park with direct management control of 15 centres we understand the importance of improving our energy efficiency in operational areas where we have greatest control. This creates benefits for us and our retailers.

2012000MWh

000tonnes

2014

l Electricity (thousand MWh) l Gas (thousand MWh) l District heating (thousand MWh) CO2 emissions (thousand tonnes)

Absolute energy use and carbon emissions (CO2) at directly-managed centres

2013

55

50

45

40

35

30

25

140

120

100

80

60

40

20

Case study: Environmental awareness

Promoting environmental awareness among our employees

At intu we believe it is important that all members of staff, regardless of role, should engage in environmental issues and in particular in minimising

our environmental impacts as well as hopefully their own impacts at home.

With this in mind we are rolling out a non- technical environmental awareness campaign aimed at making our employees think about the simple things they can do to minimise their impact, be that closing the windows when the air conditioning is on or turning down their heating at home. We are now looking into methods that we can use to work with our employees to specifically measure how the small changes they make add up to make a significant difference.

Better for the environmentWe work to improve our environmental sustainability by focusing on the areas where we have greatest control.

Water managementWe realise that water is an increasingly scarce resource across the globe and recognise our responsibility to minimise the use of water throughout our operations.

Our approachDue to the nature of our business our direct water use is low, compared with other industries, and we have little direct control as much of our water is used through the facilities available at our shopping centres.

2012m3 2014

l Water used (m3) Waste used (m3/million visits)

Water use at directly-managed centres

2013 m3/mvisits

350,000

340,000

330,000

320,000

310,000

1,380

1,360

1,340

1,320

1,300

We look for opportunities to reduce water consumption or find more sustainable sources of water at our centres. At intu Bromley a cold water borehole was installed in 2011 allowing the centre to draw 20 cubic metres per day at no cost; this is saving around 30–40 per cent of costs with the water being used in the centre’s public conveniences. We are now considering the possibility of boreholes at other intu centres, most notably in Nottingham where we have been looking at the opportunity to develop a borehole which would service intu Victoria Centre.






This year we have reduced our water consumption per million visitors by two per cent across our directly-managed centres. Our absolute water consumption has reduced by two per cent compared with 2011, on a like-for-like portfolio basis. We have not achieved our target of reducing our water consumption by 10 per cent between 2011 and 2014 on a like-for-like basis. One of the reasons behind this is that we set ourselves an absolute target which did not consider the business objective of increasing shopper visits and dwell time. Both of these objectives contribute to the use of our facilities which are the main area where we use water. In addition, with the closure of many town centre public conveniences we have noticed an increased demand on the facilities of our in-town centres. In light of these factors we have reconsidered our target and have set a new target to reduce water consumption per million customer visits by 10 per cent by 2020 compared with 2010.

Waste managementWaste disposal routes have a major impact on the environment and in the UK landfill space is becoming costly and rapidly running out. Some waste sent to landfill can result in the release of methane which contributes to

Case study: Waste management

Managing waste to make a difference

intu Chapelfield has an award-winning programme of waste management and in 2014 the centre was honoured with a Zero Waste Gold Award, the first shopping

centre to receive this level of award.

Not only does intu Chapelfield have a highly effective waste management approach but due to the hard work of the centre team they are also able to use waste generated in the centre to make a difference to local community organisations.

Most significantly the centre has developed a relationship with St Ed’s, a local charity which works to support and train young people who have dropped out of education or are unemployed. intu Chapelfield has helped the charity in a number of ways from donating leftover resources from shop-fits particularly paint, which would have been sent to landfill ,to be used on the painting and decorating courses to donating surplus office furniture to furnish St Ed’s’ new facility in King’s Lynn. The donations the centre makes to St Ed’s not only benefits the community but also minimises waste to landfill. 2012 2014

l Waste recycled (tonnes) l Waste to landfill (tonnes) l Waste to energy (tonnes) Waste diverted from landfill (%)

Waste disposal at directly-managed centres

2013tonnes %

25,000

20,000

15,000

10,000

5,000

100

80

60

40

20

greenhouse emissions. While the best solution for the waste issue is to create less at our shopping centres, due to the nature of our business we have little control over waste generation as the vast majority comes from our retailers.

What we can do is exert a positive influence by taking responsibility for managing the process of waste disposal tightly and effectively so that all types of waste are dealt with in the most appropriate, and environmentally safe, manner.

Our approachWe continue to make every effort to improve our management of this area of our business. While waste generated at our shopping centres is not a direct result of our operations, but rather that of our retailers, we undertake the management of waste as part of our duty to our occupiers. Each centre is provided with bespoke advice and guidance on how best to increase further recycling over and above the high levels already achieved.

As with all areas of our service provision we look to provide our retailers with the most efficient and environmentally appropriate management of waste disposal as this is not only good for the environment, which is increasingly on our retailers’ agendas, but also helps to lower the

cost of waste management. We are also working with our retailers to improve the effectiveness of waste management and have taken actions such as providing waste management updates at Merchants Association meetings. We have also engaged a new waste contractor at a number of our centres in 2014. This new relationship is expected to enable us to increase the detail of our waste reporting.






Due to our ongoing efforts, we are pleased to report that 10 of our 15 directly-managed shopping centres were sending no waste to landfill by the end of 2014 and overall all our directly-managed centres diverted 97 per cent of waste away from landfill, meeting our 2014 target for the third year running. Looking forward, while ideally we would seek to divert 100 per cent of waste from landfill we appreciate that at this point that is not a feasible target for our business. As such we now aim to divert 99 per cent of waste away from landfill by 2020.

Despite the success of our diversion of waste from landfill we have not yet met our ambitious target of recycling 75 per cent of waste generated at our centres. Our directly-managed centres recycled 69 per cent of waste. With the implementation of our new waste contractor relationship and other planned steps in this area we believe that this is possible and now aim to meet this target by 2020.

Sustainable constructionWith increasingly scarce and costly raw materials and a requirement to lower the energy usage of buildings, the need for new construction and refurbishment projects to be sustainable continues to grow in importance. This consideration informs our refurbishments and future development plans. We believe that sustainable construction relates not only to the buildings but where they are built, and we have a commitment to the regeneration of our towns and cities, bringing new economic vitality to the community with consequential benefits for employment and local facilities.

Our approachWe integrate sustainable measures at the design phase and the Environmental Impact Assessment prepared for all major projects reflects this approach.

To ensure our environmental standards are met, our Environmental Policy and Guide is included as an integral part of the appointment of all consultants and contractors responsible for design and construction. Compliance with this document

Case study: Sustainable travel

Encouraging more sustainable travel

intu Metrocentre have been actively participating as one of four employment areas in the Tyne & Wear ‘Local Sustainable Travel Fund’. The programme’s focus is

on reducing congestion on the A1 Western Bypass, by encouraging more sustainable travel. Reducing congestion on the bypass would have direct benefits for the centre.

At this point in the project over 110 individual retailers across the centre have been engaged in the project, with over 650 personalised travel packs delivered to staff. Additional activities include free cycle maintenance sessions, car sharing roadshows and the construction of ‘Here to Help’ Customer Services Lounge, combining travel advice, customer services and recruitment services.

is an express contractual requirement and is monitored throughout a project.

We work with our specialist teams, who advise us on environmental best practice, taking into account the relevant BREEAM buildings environmental assessment rating of at least ‘Very Good’.

Our project management team works with contractors to monitor on-site activity to ensure the minimum of disruption to the local community and environment. Compliance with national/local Considerate Contractor Schemes is also a requirement at our sites.

Examples of our environmentally efficient development activities include:

— as part of the upgrade work at intu Lakeside we installed fully controlled energy-efficient LED lighting throughout the food court including light sensors which make sure we are never powering lights that don’t need to be on

— at intu Victoria Centre we are introducing natural ventilation to the centre which will improve the efficiency of our heating and cooling systems

Sustainable travelOur customers rely on our shopping centres having good transport links. We have a responsibility to provide options that not only take account of the need for our shopping centres to be accessible to all but also for them to be accessible in a sustainable manner whether by road, public transport, on foot or by bicycle.

Our approachGood transport links continue to be an important element in the success of our centres and local ownership of the Travel Plan is important.

A ‘Transport Champion’ has been appointed at each of our directly-managed shopping centres, bar our newest directly-managed centres, to work alongside the Group Sustainable Travel

Manager in updating each centre’s Travel Plan. The Transport Champion owns and implements actions in the Plan and maintains and develops partnerships with local authorities, transport operators and other stakeholders. To assist in this process we hold a Forum of Transport Champions to share best practice.

All Travel Plans consist of a package of measures aimed at reducing single occupancy car use among employees, retailers and shoppers by enhancing the information about public transport and providing details about the various travel options available.

We work with local authorities, transport operators and other stakeholders to tailor the requirements for each centre and the catchment areas they serve. The Plans also provide information to customers on the alternative means of travel available to visit our centres. In 2014 we completed and agreed two Travel Plans with relevant local authorities. A further Plan is in the advanced stages. In 2014 work also began to create a Plan for our new centre, intu Merry Hill.

We believe that it is important for our centres to support more sustainable travel options. For that reason we have offered electric car charging points at our centres for a number of years. Over recent years we have not only updated the older charging points but also installed additional points where appropriate including high speed charging points in some cases. We now have a total of 37 charging points across our centres with a further four being installed in March 2015 at intu Merry Hill.






Achieving our 30 per cent carbon

emissions reduction target in absolute terms shows the commitment

of the Company to the environment

Carbon reduction (CO2) since 2011

30%Energy-efficient LED light bulbs fitted between 2012 and 2014

60,000

Case study: Carbon Trust Standard Bearers Awards

Carbon Trust award winners

intu won the ‘Best in Continuing Carbon Reduction’ category in the Carbon Trust Standard Bearers Awards 2014. The awards are given out to Carbon Trust Standard

bearers that have demonstrated exceptional performance in certification achieved over the past year.

In winning the award intu received recognition for the challenging 30 per cent carbon reduction target it set itself and the work it has carried out to achieve this since 2011. In order to accomplish this target a number of initiatives have been implemented. Over 60,000 energy-efficient LED light bulbs have been installed over the last three years. This work was part of a £6 million capital investment project and resulted in savings of £2 million worth of electricity each year as well as reduced lamp replacement costs. Not only does this help to minimise our environmental impact it also helps to mitigate the risk of increasing energy costs for ourselves and our retailers. Beyond this every centre now has an Energy

Champion, who not only focuses on energy reduction at their centre but also meets with the other Champions to share best practice, enabling intu to make the most of successes across the portfolio. Savings have also been made without capital outlay, for example, careful scheduling of night-time cleaning lighting avoids lighting areas where no one is working and closing specific car park areas at off-peak times saves energy while still maintaining intu’s World Class Service levels. As a result of these changes, and more, intu has reduced its carbon emissions by 30 per cent since 2011 on an adjusted like-for-like basis. That equates to over 7,000 cars being taken off the road for a year.






Together with our stakeholdersMaintaining strong and open relationships with the people and groups we interact with on a daily basis is vital to our long-term success. Understanding their needs and expectations, and responding accordingly, underpins our approach to stakeholder engagement.

Customers engaged in surveys

26,500Employee engagement score

747(2013: 732)



Commitment from 2014 Our progress Plans for 2015Increase CR communication to the new, broader employee base

Used tools such as posters, in key employee areas, to provide employees with highlights of our CR progress

Consider further opportunities to promote CR across our employee base including possible creation of a network of CR champions

Further develop our stakeholder engagement process around CR reporting

Engaged with stakeholder panel for a second time in 2014; details can be found on page 6

Further develop engagement process both in terms of dynamics and content discussed

Continue shopper engagement, workshops and local communication forums at each shopping centre

Carried out 26,500 shopper surveysLaunched Tell intu and received over 17,000 responses

Build on Tell intu programmes to improve customer experience against net promoter scores





Relationships

Together with our stakeholdersIn order to provide a business that offers a great shopping experience we need loyal customers, committed retailers, informed investors, passionate employees and well-supported communities. A key part of our Corporate Responsibility is managing and developing relationships with key stakeholders and engaging on relevant issues.p06 for more information

RetailersMaintaining strong relationships

and open dialogue with our retailers and other occupiers is a prime focus of our business. We work to connect with them to ensure that we are providing

the high-quality service they need.

How we engaged in 2014 — Active engagement with all investor enquiries including a number of enquiries from ethical funds

— Active participation in responsible investor indices and tools such as CDP climate change survey

Outcomes — Inclusion in FTSE4Good and the Dow Jones Sustainability Global Index

— Awarded Green Star by GRESB — Increased our CDP disclosure score for the fifth year running

How we engaged in 2014 — Intu Senior Management met with key directors of many top retailers in 2014

— Merchants Association meetings — Feedback from shopper engagement provided to all retailers

Outcomes — Corporately as well as at centre level we are well-informed of retailer wants and needs and so are able to consider these in any planning

— Retailers are kept well-informed of the opinions of shoppers in each of our centres and are able to tailor their approach to that

InvestorsConstructive engagement

with our shareholders and potential investors, bankers and other

organisations on socially responsible investment matters helps to raise awareness of how we’re managing

material environmental and social risks.

CustomersTo maintain our competitive

edge we must understand what our shoppers are looking for

in a perfect shopping experience from retailer mix to customer

service expectations.

How we engaged in 2014 — Carried out over 26,500 shopper surveys — Received over 17,000 responses to our new Tell intu programme which provides an online platform for our shoppers to share their ideas so we can put them at the forefront of the decisions we make

Outcomes — intu is well-informed of shoppers’ needs and wants in areas such as service levels, what made our customers smile and feelings of safety

— We are able to evaluate our customer strategy against customer opinion





Relationships

How we engaged in 2014 — We conducted government engagement through industry-wide organisations

— General Managers and others within the business maintained and developed links with local stakeholders

— Proactive engagement with intu constituency MPs — Submissions to Parliamentary Select Committees

Outcomes — A Group-wide database supports a co-ordinated programme of engagement on issues of relevance to our business such as business rates and national/regional planning policy issues

— We publish details of our policy positions on our website

Local and national

governmentLocal authorities grant us permission

to grow our portfolio. Fostering strong relationships with local

authorities, town centre management bodies and other community

business partnerships is therefore vital to our centres’ continued success.

How we engaged in 2014 — Comprehensive induction programme for new employees including specific CR module

— Feedback from 2013 Employee Survey provided and 2014 Employee Survey conducted

— Presentations of annual and interim results — Annual CR presentation — Employee Recognition Fund 92 per cent utilised

— Launch of Win your dream which gives our employees the chance to be recognised and rewarded for outstanding performance in or outside the workplace

Outcomes — Increased understanding of employee views on workplace and Company issues

— Employees are kept informed of all key business developments

— For further details of our approach to our people see page 20 and the People section in the Intu 2014 Annual Report

Our peopleOur employees are fundamental

to the success of our business and to the delivery of a high-quality service.

We believe that employee engagement is key to maintaining

a motivated workforce.

CommunitiesIt is imperative that we maintain good links with our communities and that we undertake significant community consultations as part of our process

for any planned developments.

How we engaged in 2014 — During 2014 we conducted formal community consultations regarding planned developments at one of our centres. We carried out two further informal consultations.

Outcomes — We are able to include community feedback in our planning process

— We are one of only 52 UK companies to be awarded the BitC CommunityMarkSuppliers

We recognise the wide range of potential impacts arising from our supply chain and therefore

the need to engage with our suppliers across a range of issues.

How we engaged in 2014 — Included our metering providers and LED suppliers in our Energy Forum

— Included external employees, based on our sites, of our lift and escalator maintenance contractor in our induction process

Outcomes — Able to work collaboratively with suppliers to promote best practice in environmental areas

— Key suppliers have strong understanding of our business and our values





Relationships

What we’re doingOur peopleWe are committed to providing a working environment which is stimulating and challenging, giving employees opportunities to reach both personal and professional goals while delivering business targets.

All new employees are set personal objectives when they join the Group; these objectives are for both professional and personal development and, where possible, targets are measurable. All employees have annual Personal Development and Training Reviews. The aim of our personal development planning is to equip employees with the skills to perform their current role and also to develop them both personally and professionally. Our programme ensures that our employees have up-to-date training, based on needs identified on an individual basis between employees and their managers. Where relevant, professional qualifications and memberships are funded by the Company. Monthly training logs are maintained by line managers and consolidated by the HR department.

Human rightsAt Intu we respect the dignity, liberty and equality of everyone we work with. Our policies and procedures are consistent with the United Nations’ (UN) universal declaration of human rights, which sets “a common standard of achievement for all peoples and all nations”. We are committed to implementing the UN’s guiding principles on business and human rights.

Reward and recognitionOur competitive remuneration structure helps to retain and motivate the best with base salaries benchmarked against our peers in the industry. Many employees are eligible for an annual bonus based on corporate measures that reflect the executive remuneration policy and are related to individual performance. A proportion of the annual bonus is awarded in deferred shares to encourage focus on the Company’s growth. Managers may also be rewarded with longer-term share options and many staff can join a Share Incentive Plan subject to a qualification period.

Zero-hour contractsAll employees across the Group have been offered contracts which include specific minimum working hours. A very small minority of employees have chosen to have zero-hour contracts for reasons specific to them individually: all of these employees have confirmed that this is their choice.

Employee engagementWe seek to engage with our employees in a number of ways. In 2011 we undertook our first Group-wide Employee Survey, and this survey occurs every year, along with, when relevant, additional ‘Pulse’ surveys. In 2014 we achieved a response rate of 84 per cent and an engagement score of 747(732 in 2013) . The chart on the left pulls out the results of questions which fall under the umbrella of CR.

Case study: Chairman’s Prize

intu Lakeside’s winning relationship with the National Literacy Trust

The team at intu Lakeside scooped the top prize in the 2014 intu Chairman’s Annual CR Prize.

Taking the local partnership approach forward – a key requirement of the Prize – they sought from the outset to make this complementary to our broader CR approach; help for young people and especially those facing educational, medical, social and employment difficulties.

The team wanted to support young people with literacy difficulties and their families as poor reading skills can be generational because parents may not push the benefits of reading and written communication if their own literacy is poor and they have grown to dislike reading. Partnering with the National Literacy Trust allowed the team to promote the benefits of literature and reading for young people local to our centre.

We offer all employees access to an Employee Assistance Programme (EAP) run by The Retail Trust. This programme offers our employees and their families an opportunity to obtain professional assistance, at no cost, for personal problems that they may be experiencing.

Our annual Chairman’s CR Prize, which recognises relationships developed with community organisations by individual centres, is well-established and has run for four years.

We operate an Employee Recognition Fund (ERF) which supports and encourages employees who wish to pursue community fundraising opportunities in their own time. The ERF is in place to make additional donations to charities supported by employees. In 2014 the ERF was 92 per cent subscribed (2013 – 44 per cent).

For more information visit the People section of the 2014 Annual Report.

%*

605040302010

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* Percentage of respondents providing a positive response when considering our actions in these areas

Employee Survey results for CR 2012–2014





Relationships

The H&S management system contains a central repository of relevant information, which ensures that all those with responsibility for H&S issues have access to full and accurate information. If an incident occurs an investigation is undertaken to determine the cause of the accident and any actions that could be implemented to avoid repeat occurrences. ‘Near-misses’ are routinely reported and analysed for possible learnings. We have an internal Quality, Safety, Health and Environment team (QSHE) who oversee the implementation of our health and safety programme.

We continue to work to ensure that the disabled facilities in our properties meet the requirements of our shoppers, employees and occupiers.

Health and Safety (H&S) at our shopping centresOur H&S policy is overseen by the Board and implemented through an H&S management system. The Health and Safety Executive Committee reviews new legislation, oversees progress, reviews accident reports, and disseminates policies and best practice to operational teams. Each centre has an H&S Forum. External contractors engaged at our centres, including those engaged by our retailers, are required to provide full details of their competence to undertake the work before being granted a ‘permit to work’.

Members of the intu Health and Safety Executive Committee are expected to undertake formal training to a level of knowledge in H&S matters. H&S awareness is an integral part of induction and is reinforced through job-related courses.

Case study: Employee Recognition Fund

Supporting our employees

During 2014 we supported our employees in their personal charitable fundraising through our Employee Recognition Fund.

Employee activities ranged from endurance bike rides, 5k and 10k runs, up to half marathons, to raffles and knitting events! In many cases employees fundraised individually for causes close to their hearts while in others they grouped together for a common cause, for example our shopping centre General Managers got together to fundraise for Pathways4All.

All of the hard work paid off and through the course of 2014 our people raised over £24,000 including financial contributions from intu.

The charities our employees chose to support were a mix of national and local and reflected what is close to their hearts. 71 per cent of people supported health, 19 per cent social issues and 10 per cent of the overall donations went to charities for young people. To celebrate their successes we report to the entire business on their fundraising experiences, of which we are incredibly proud.

Building awareness

H&S awareness is an integral part of induction and is reinforced through job-related courses

Employee and contractor RIDDOR incidents

62013: 4





Relationships

My productivity has improved as a result of the Stay Active Challenge93% of respondents

Case study: Stay Active Challenge

intu gets active

During 2014 intu offered its employees various ways to engage with health and activity. The Stay Active Challenge was an 11-week programme designed

to make the participants aware of their current activity and, through the competitive team element, challenged everyone to improve upon that.

Everyone was given an activity monitor called an iAM that recorded movement, your points were then uploaded to team profiles and an intu league was created to see which teams at which particular shopping centres were the most improved over the course of the programme.

There were several benefits to the Stay Active Challenge which included the obvious ones of improved health and wellbeing, as well as increased engagement between employees and between the centres and head office. Some centres organised team activities during their lunch breaks and also outside of work hours, including intu Braehead taking on a 3,000 ft climb.

In addition to this activity we held our first intu football tournament and combined it with family fun days so that it was open to all, footballers, spectators and families alike. We ran southern, midlands and northern heats. The final was in Nottingham, a midway point between our portfolio of UK shopping centres, and teams from intu Trafford Centre and intu Derby were crowned as champions.





Relationships

Data appendixMonitoring and measuring our performance across our three pillars; Communities and Economic Contribution, Environmental Efficiency and Relationships, is key to our ongoing CR success. This section provides material data to support those three pillars.

The European Public Real Estate Association (EPRA) launched its best practice recommendations (BPR) on Sustainability Reporting in 2011. These recommendations are considered to focus on those environmental issues that are currently most relevant and material for our sector. The tables on this page cover each of the areas recommended by EPRA’s BPR Sustainability in the most appropriate way for the Group.

Greenhouse gas emissions (CO2e)1,2 from directly-managed centres and head office2014 20133

Scope 1 Scope 2 Scope 1 Scope 2

CO2e (tonnes) 4,808 33,115 5,571 32,814 CO2e ((kg)/m2 communal floor area) 11 73 12 72 CO2e/£m net rental income (NRI) 15 106 17 102

Carbon Emissions (CO2) from directly-managed centres and head office including transmission4

2011 2012 2013 2014

Absolute emissions (tonnes) 51,930 47,315 45,319 40,498 Like-for-like emissions 2013 portfolio (t) n/a n/a 45,319 40,498 Like-for-like emissions 2012 portfolio (t) n/a 47,315 43,986 38,786 Like-for-like emissions 2011 portfolio (t)5 53,732 46,067 42,795 37,766 CO2 (kg)/m2 communal floor area 108 100 89

Total energy consumption (electricity, gas and district heating) in directly-managed centres and head office2011 2012 2013 2014

Absolute (kWh) 116,042,947 111,496,273 107,767,363 95,471,995 Like-for-like 2013 portfolio 107,767,363 95,471,995 Like-for-like 2012 portfolio 111,496,273 104,671,550 91,064,954 Like-for-like 2011 portfolio (kWh) 116,042,947 106,202,655 100,090,195 87,646,416 Energy used (kWh)/m2 communal floor area 267 254 238 211

Waste streams and totals – directly-managed centres2011 2012 2013 2014

Waste recycled (t) 15,256 16,167 17,169 16,638 Waste to landfill (t) 2,219 620 881 653 Waste to energy (t) 5,993 6,584 6,113 6,995 Total waste 23,358 23,371 24,163 24,286 Waste recycled (%) 65% 69% 71% 69%Waste to landfill (%) 10% 3% 4% 3%Waste to energy (%) 26% 28% 25% 29%Waste diverted from landfill (%) 91% 97% 96% 97%

Water use – directly managed-centres2011 2012 2013 2014

Absolute water consumption (m3) 311,052 330,074 340,847 330,018Like-for-like portfolio from 2013 (m3) n/a n/a 340,847 330,018Like-for-like portfolio from 2012 (m3) n/a 330,074 324,704 309,418Like-for-like portfolio from 2011 (m3) 311,052 325,543 320,887 305,917m3/million visitors 1,382 1,375 1,347 1,325

1 intu applies the operational approach in reporting GHG emissions in line with the GHG Protocol definition. For further details of our approach to GHG emissions calculation and reporting please see Notes to the report (p26).

2 For details of centres covered under ‘directly-managed’ and details of our portfolios for 2011, 2012 and 2013 please see Notes to the report (p26).

3 We reported against the same portfolio for 2013 and 2014. As such for the Greenhouse gas table and waste table like-for-like details have not been provided. More details can be found in Notes to the report (p26).

4 CO2 tables are included in the report as our 2011–2014 target and our 2010–2020 targets are against CO2 in line with CRC reporting requirements. The factor used for this includes both direct and indirect emissions. More details can be found in Notes to the report (p26).

5 When discussing target performance between 2011 and 2014, the 2011 emissions have been adjusted for occupancy changes.





Data appendix

Directly-managed centres and 40 Broadway energy use

CentreTotal Electricity

consumption (kWh)CO2 tonnes from

ElectricityGas

(kWh)CO2 tonnes

from GasDistrict

Heating (kWh)CO2 tonnes from District Heating

Total energy use (kWh)

Total CO2 emissions

intu Braehead Arena 2,430,447 1,296 2,631,876 486 5,062,323 1,781 intu Braehead Shopping Centre 4,376,293 2,333 355,874 66 4,732,167 2,399 intu Braehead Soar 1,019,516 544 43,349 8 1,062,865 552 intu Broadmarsh 1,625,018 866 – 1,793,520 154 3,418,538 1,021 intu Bromley 2,279,505 1,215 219,175 40 2,498,680 1,256 intu Chapelfield 2,359,029 1,258 281,331 52 2,640,360 1,310 intu Eldon Square 7,692,446 4,101 13,310,816 2,457 21,003,262 6,557 intu Lakeside 8,160,342 4,350 2,642,067 488 10,802,409 4,838 intu Milton Keynes 1,569,536 837 1,774,640 328 3,344,176 1,164 intu Metrocentre 5,691,593 3,034 1,005,573 186 6,697,166 3,220 intu Potteries 1,689,151 900 430,171 79 2,119,322 980 intu Trafford Centre 14,165,786 7,552 2,207,297 407 16,373,083 7,959 intu Uxbridge 2,059,776 1,098 243,205 37 2,302,981 1,135 intu Victoria Centre 4,682,006 2,496 – 1,157,616 100 5,839,622 2,596 intu Watford 6,076,316 3,239 229,023 42 6,305,339 3,282 Total all directly-managed centres 65,876,760 35,119 25,374,397 4,683 2,951,136 254 94,202,292 40,048 Head office 614,340 328 661,308 122 1,269,703 450 Total for directly-managed centres and head office 66,485,154 35,443 26,035,705 4,805 2,951,136 254 95,471,995 40,498

Directly-managed centres and 40 Broadway waste management

CentreTotal

WasteWaste

recycled (%)Waste to

landfill (%)Waste incinerated

for energy (%)

intu Braehead Shopping Centre 1,374 64% 0% 36%intu Braehead Soar 859 47% 53% 0%intu Broadmarsh 238 62% 0% 38%intu Bromley 1,338 89% 0% 11%intu Chapelfield 958 97% 3% 0%intu Eldon Square 1,915 56% 0% 44%intu Lakeside 3,474 71% 3% 26%intu Milton Keynes 601 87% 13% 0%intu Metrocentre 4,348 96% 0% 4%intu Potteries 748 100% 0% 0%intu Trafford Centre 6,207 41% 0% 59%intu Uxbridge 847 59% 0% 41%intu Victoria Centre 742 100% 0% 0%intu Watford 637 52% 0% 48%





Data appendix

Health and safety2012 2013 2014

RIDDOR incidents recordedEmployees and contractors 2 4 6Members of the public 2 4 11Fatalities:Employees/ contractors/ members of the public 0 0 0

Employee data2012 2013 2014

Total employees 645 2,027 2,459Total training days 1,149 2,826 1,736Average training days per employee 1.8 1.4 0.7Whistleblowing incidences 0 0 1Grievances 21 15 54Average employee sick days 5.1 2.3 <4.5

Community contributions (by donation type)2012 2013 2014

Cash £335,000 £345,000 £318,000 Gifts in kind £1,025,000 £922,000 £491,000 Time (£) £89,000 £83,000 £115,000 Facilitated donations £468,000 £601,000 £418,000 Total including facilitated donations £1,917,000 £1,951,000 £1,342,000 Total excluding facilitated donations £1,449,000 £1,350,000 £924,000 Time (hours) 5,578 5,182 4,3451

1 Employee hours given has gone down but the value of time has increased due to a recalculation of the average per hour value of Intu and intu Retail Services employees.

Demonstrating the breadth of intu CR partnerships in 2014

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intu Braehead l l 2intu Broadmarsh l 1intu Bromley l l l 3intu Chapelfield 0intu Eldon Square l l 2intu Lakeside l 1intu Milton Keynes l l 2intu Metrocentre l l l 3intu Potteries 0intu Trafford Centre l 1intu Uxbridge l l 2intu Victoria Centre l 1intu Watford l l 240 Broadway (head office) l 1

Total 21





Data appendix

External recognitionBenchmarking against our peers through indices ensures that we remain focused on best practice and continuous improvement. Some of our achievements in these benchmarks are outlined below. We monitor the actions of our UK REIT competitors and work with them on important industry issues through membership of organisations such as the British Council of Shopping Centres (BCSC).

Global Real Estate Sustainability Benchmark (GRESB) – Green StarGRESB is an industry-led organisation which assesses the sustainability performance of real estate portfolios. It allows us to compare our sustainability performance against our sector peers. Green stars are awarded to companies that are considered to have the following: integrated organisational approach towards measurement and management of environmental key performance indicators.

Dow Jones Sustainability Indices (DJSI)The DJSI tracks the world’s leading companies in terms of economic, environmental and social criteria. DJSI allows us to monitor our performance against global best practice and helps to inform us about issues of increasing importance to investors. We remain members of the DJSI World for 2013–14.

FTSE4GoodThe FTSE4Good Index and ratings measure the performance of companies on corporate responsibility standards. FTSE4Good allows us to measure our performance against our supersector peers. We continue to be a member of the Index.

JSE Socially Responsible Investment (SRI) IndexJSE has developed criteria to measure the triple bottom line performance of companies in the FTSE/JSE All Share Index. This Index allows us to measure our performance against our South African peers and is of value to our South African investors. We have maintained our position in this Index.

CDPCDP’s Climate Change Survey requests information on behalf of 767 institutional investors. Companies are scored out of 100 for their climate change disclosure and from A to E for performance. In 2014 intu scored 82 C, improving our disclosure score for the fifth year running.

Business in the Community – CommunityMark The CommunityMark is a national standard that publicly recognises leadership and excellence in the community. It is awarded to companies that can demonstrate how they maximise positive and minimise negative community impacts, prioritising those that are most relevant to their business

intu achieved the CommunityMark in 2010 and was reaccredited in 2014.

Notes to the reportThe 2014 Corporate Responsibility report covers the period 1 January 2014 to 31 December 2014.

Directly-managed centresWhen we refer to directly-managed centres we are referring to the following: intu Braehead, Soar at intu Braehead, intu Broadmarsh, intu Bromley, intu Chapelfield, intu Derby, intu Eldon Square, intu Lakeside, intu Merry Hill, intu Metrocentre, intu Milton Keynes, intu Potteries, intu Trafford Centre, intu Victoria Centre, intu Uxbridge and intu Watford. However, our environmental data does not include intu Derby or intu Merry Hill as these centres were acquired in 2014 and environmental data systems are currently being brought into line with the rest of the portfolio. This means for environmental data our 2014 and 2013 reporting portfolios were the same.

Our 2013 directly-managed, used for like-for-like comparison where stated, is as stated for the 2014 portfolio with the exception of intu Merry Hill and intu Derby.

Our 2012 directly-managed portfolio, used for like-for-like comparison where stated, is as stated for the 2013 portfolio but does not include intu Milton Keynes or Soar at intu Braehead.

Our 2011 directly-managed portfolio, used for like-for-like comparison where stated, is as stated for the 2012 portfolio but does not include intu Broadmarsh.

Economic contribution dataThe data from Nathaniel Lichfield & Partners on the economic contribution of Intu (page 9) includes data from all of our UK centres, not just those that are directly-managed. However, it does not include our Spanish asset Parque Principado, Oviedo. As such this data includes all centres listed as part of the 2014 portfolio above and additionally includes: The Mall at Cribbs Causeway, St David’s, Cardiff and Manchester Arndale.

Data collection and monitoringCR data , both environmental and community, is collected at each centre individually. Environmental data is disclosed to the CR Management Committee three times per year. Our internal audit function visited four centres during 2014 to conduct CR health checks and our external assurors Corporate Citizenship visited two centres in 2014.

Carbon and greenhouse gas emissionsCarbon emissions reported are for our head office and for those shopping centres and leisure facilities under direct management by intu. Carbon emissions from 2011 to 2013 are calculated using DECC’s table of conversion factors for participants in the CRC Energy Efficiency Scheme phase one. 2014 carbon emissions (CO2 ) are calculated using CRCs recommended factors for phase two. These factors include transmission of energy.

In line with mandatory reporting requirements we have also reported our greenhouse gas emissions using the Defra factors for carbon dioxide equivalent emissions (CO2e).for 2013 and 2014 respectively.

Emissions includedScope 1 – direct emissions – includes gas data for our 40 Broadway head office and the common parts of our directly-managed shopping centres and leisure facilities. In a small number of cases, where separate meters are not in place, some tenant energy is included in the calculation. Fugitive emissions and Company vehicles have not been calculated as they are considered to be negligible for our operations.

Scope 2 – indirect emissions – includes purchased electricity and district heating for our 40 Broadway head office and landlord-controlled common parts of the shopping centres, including car parks, that are directly-managed by intu. In a small number of cases, where separate meters are not in place, some tenant energy is included in the calculation.

Employee SurveyThe Employee Survey asks our employees to state their level of agreement to over 50 questions regarding our business and their roles. An independent body produces an overall engagement score from the results of the survey. This score is based on a selection of questions from five domains: work environment, reward, development, operating culture and line of sight.

On page 20 of this report we feature a chart displaying averaged employee responses to a selection of questions from the survey that are more specifically CR related. For the statements used in creating those averaged agreement scores are as follows:

Health and safetySafety is taken seriously at intu. I understand my own responsibilities around Health and Safety.

Environmentintu is environmentally friendly in the way it operates.

Training and developmentI have received the training I need to perform the job I’m doing.

I know the skills I need to get on in intu.

I understand how to advance my career in intu.

I am satisfied with the opportunities I have for personal development at intu.

Values and integrityI believe that intu conducts its activities with honesty and integrity.

intu’s values are visible in the day-to-day activities of teams.





Data appendix

Independent assurance of Intu’s 2014 CR Report: ISAE 3000 statementThe nature of the assuranceThis is a report by Corporate Citizenship for the Board of Directors of Intu Properties plc.

This report concerns the totality of Intu’s Corporate Responsibility Report 2014, covering performance in the 2014 calendar year, and three years’ worth of data (where provided).

The subject matter has been evaluated against the GRI Principles for Defining Report Content (materiality, stakeholder inclusiveness, sustainability context and completeness) and Principles for Ensuring Report Quality (balance, comparability, accuracy, timeliness, clarity and reliability).

Intu is entirely and solely responsible for the production and publication of the data assured, Corporate Citizenship for its assurance. This is the second year in which Corporate Citizenship has carried out assurance for Intu.

The opinions expressed in this statement are intended to extend understanding of Intu’s non-financial performance and should not be used or relied upon to form any judgments, or take any decisions, of a financial nature.

The report follows the guidance laid out in the International Standard on Assurance Engagements 3000.

The work programmeThe assurance work was commissioned in July 2014 and was completed on 13 March 2015. Detailed records were kept of meetings, assurance visits and correspondence relating to the assurance. A team of two, led by a Director, undertook the assurance and commentary process. A second Director acted as adviser to the group. The team has a variety of professional

and technical competencies and experience. For further information please refer to our website, www.corporate-citizenship.com.

Our work has involved, but not been limited to, the following elements:

1. A review of Intu’s Corporate Responsibility-related policy documents in line with best practice and emerging trends;

2. A review of the scope of Intu’s reporting in light of reporting by industry peers, and wider trends in corporate responsibility reporting;

3. Site visits to intu Metrocentre on 1 October 2014 and intu Uxbridge on 16 October 2014; assessing data and processes through interviews with those responsible for the main elements of corporate responsibility at each centre;

4. Interviews with issue owners at Intu head office, including those responsible for environmental, human resources and community data, regarding the data and processes informing Intu’s Corporate Responsibility Report;

5. An interview with Intu’s Head of Risk & Internal Audit, regarding internal data-checking process;

6. Review of key assertions in the report against evidence provided by Intu, including policy and strategy documents, data sources and survey results;

7. Commentary on two draft versions of the Corporate Responsibility Report, provided to Intu’s Corporate Responsibility team in January and March 2015 respectively, assessing the content in line with the GRI Principles for Ensuring Report Quality;

Our conclusionOn the basis of the work performed, nothing has come to our attention that causes us to believe that Intu’s statement, that the data covered by this

assurance meets the GRI Principles for Defining Report Content and Principles for Ensuring Report Quality, is not fairly stated..

CommentaryOn the basis of the work performed, the following commentary addresses ways in which the content definition and quality of Intu’s reporting could be strengthened in future reports.

Intu addresses many of its most material corporate responsibility issues in the report. It gives an effective explanation of the process used for identifying and prioritising material issues. Using external indices as the basis for the materiality assessment gives it a solid foundation. In our view, the assessment process would be strengthened by introducing a degree of horizon-scanning, identifying trends and emerging opportunities.

Intu’s report clearly links its corporate responsibility strategy to its business model. This gives an effective overview of its operations. In future, Intu could further strengthen reporting on the external factors and sector-specific issues driving its strategy. This would demonstrate the value of corporate responsibility to the business more effectively, and set its performance in the wider socio-economic context of the UK retail landscape.

Reporting is clear and lively, and performance indicators are closely linked to the narrative of the report, which highlights both achievements and areas for progress. The report draws on stakeholder voices, particularly community partners. The report also clearly defines Intu’s key stakeholder groups. It gives examples of engagement with each. Intu could give a greater voice to external stakeholders in the report, in order to enrich its balance.

The “progress against our commitments” sections give an effective overview of both the progress made against targets, and Intu’s immediate plans. In future reporting, Intu could draw on a more

future-focused materiality process to give the reader a greater sense of the company’s longer-term strategic direction.

Intu provides robust performance metrics, and provides comparable figures for previous years to allow the reader to assess its progress over time. Detailed notes explain the methodology and calculations underlying the figures. In future years, Intu should look to develop metrics for areas in which it currently reports on policy but not performance, such as employee diversity and sustainable travel.

Nothing has come to our attention during the assurance process to suggest that there are significant errors or misstatements in Intu’s data, or that processes are not in place to prevent these. A number of improvements have been made in the past year to the tools for collecting and reporting data, although technological issues have delayed some plans. Further improvements can still be made, especially with regard to defining centre-level responsibilities for collecting and checking data.

Corporate CitizenshipLondon 13 March 2015





Assurance

intugroup.co.uk

Documents

Intu Corporate Responsibility Report 2014Notes to the report 26 Assurance Independent assurance of Intu’s 2014 CR Report: ISAE 3000 statement 27 For more information visit intugroup.co.uk/cr2014