Thanks to a farsighted approach, today IGD’s portfolio comprises a number of properties which already have the certification needed to access green financing instruments. By continuing along this path, in 2024 and beyond the Sustainability Plan 2022-2024 horizon, IGD will be well positioned to meet the demand for green investments of a growing number of international investors.
Green financing, whether bonds or loans, is granted based on the certification that each property held by the Company meets specific requirements. It is, therefore, a tool that is proving very useful globally in accelerating the transition towards a greener economy.
Thanks to a farsighted approach, today IGD’s portfolio comprises a number of properties which already have the certification needed to access green financing instruments. By continuing along this path, in 2024 and beyond the Sustainability Plan 2022-2024 horizon, IGD will be well positioned to meet the demand for green investments of a growing number of international investors.
IGD undertook a structured pathway, focused on achieving specific results with respect to both sustainability and asset management, some time ago.
This resulted in the definition of a Green Financing Framework in 2022, which made it possible to obtain two green loans, in 2022 and 2023 respectively, for a total of €465 million.
The Sustainability Plan 2022-2024 aims to obtain certification for nine more assets over the three-year period, in addition to the eight which were already certified at year-end 2021.
In 2023 the certification process for two more shopping centers and the renewal of the certification of three properties, consistent with the new version of V6 BREEAM in Use, continued.
What is BREEAM certification?
BREEAM (Building Research Establishment Environmental Assessment Method) is one of the most recognized European standards for the assessment, rating and certification of the sustainability characteristics of non-residential properties. The categories examined during the assessments include: property management, energy, health and wellbeing, transportation, water, materials, waste, use of the earth and ecology, pollution.
The assessments are made by independent authorized assessors and based on scientific metrics and indices.
The buildings receive a rating and a certification based on the following scale: ‘Pass’, ‘Good’, ‘Very Good’, ‘Excellent’ and ‘Outstanding’.
The certification of IGD’s properties began in 2016 with Centro Sarca in Milan, when the structure was being restyled.
Over the years, IGD has obtained ‘BREEAM in Use’ certification in nine more shopping centers as shown in the following table found in the 2023 Sustainability Report.
In 2023 the commitment to BREEAM certifications involved:
launching the process needed to obtain the certification of the Casilino Shopping Center in Rome;
updating the certification of Centro Sarca in accordance with the new ‘Version 6’ of the certification standards;
undertaking the process needed to begin the periodic renewal of the certification at the Coné Shopping Center in Treviso, Leonardo Shopping Center in Bologna and Le Porte di Napoli in Naples with a view to obtaining upgraded ratings.
The relative certifications are expected to be issued in 2024.
Looking at IGD’s ten BREEAM certified shopping centers, nine have BREEAM in Use v2015/v6 certification and one has BREEAM 2009 Europe, Commercial: Retail certification.
With respect to the reported scope, these ten centers represent:
38% of the total number of Italian centers included in the operational control;
50% of the total square meters;
64% of the total value of the portfolio based on fair value.
With regard to the BREEAM IN USE – ASSET PERFORMANCE certification (of the reported scope), the rating was as follows:
Excellent: 19.2% of the centers’ value and 16% of the total square meters;
Very good: 36.5% of the centers’ value and 28% of the total square meters.
With regard to BREEAM IN USE – BUILDING MANAGEMENT certification, the rating was as follows:
Excellent: 8.4% of the centers’ value and 7% of the total square meters;
Very good: 47.3% of the centers’ value and 37% of the total square meters.
Consistent with the Business Plan 2022-2024, in 2024 IGD will continue with the process needed to obtain certification for five more shopping centers and renew the certification of two assets.
In this way IGD’s portfolio will continue to be not only increasingly more sustainable for the environment and for people, but also increasingly more an asset we can count on to obtain new resources from the financial markets.
The Board of Directors approved the Corporate Sustainability Report 2023 which was subject to Limited Assurance by Deloitte & Touche which certified compliance with the most important international standards (the GRI Standards).
Obtained important national and international recognition regarding sustainability performance and growing assessments in both solicited and unsolicited CSR ratings;
CO2 emissions per square meter down 22% compared to 2018, reference year for the targets contained in the Business Plan;
4 new photovoltaic systems installed, 1 in Italy and 3 in Romania
The Board of Directors approved the Corporate Sustainability Report 2023 which was subject to Limited Assurance by Deloitte & Touche which certified compliance with the most important international standards (the GRI Standards).
The main results obtained in 2023, consistent with the planning and targets to 2024, are summarized below:
Green:
Investments continued to decrease the portfolio’s environmental footprint, with focus on systems in order to improve the energy efficiency of buildings. More in detail:
completed the first phase of the ESP Center’s innovative emission reduction project;
installed 4 new solar energy systems, including 1 in Italy (La Favorita, Mantua active as from 2024) and 3 in Romania (Tulcea, Piatra Neamt and Ramnicu Valcea), where the Ploiești system, built in 2022, also became operational;
installed new energy consumption meters, including those based on artificial intelligence, which can decrease intervention time in the event of deviations from consumption estimates;
continued to invest in lighting systems, completing the installation of led technology lighting at the Portogrande Shopping Center (as part of the restyling) and at Katanè in Catania. Led lighting was also installed in Officine Storiche’s new retail section;
continued to work on “Zero waste” with a view to further increasing the waste recycling rate (which has reached 89%) and the inauguration of the innovative circular economy project “Waste 2 Value” at the Nova Center in Bologna;
continued with the installation of electric charging stations: a total of 122 charging stations have been installed in 22 IGD Shopping Centers or 85% of the Italian portfolio.
Responsible:
launched the “People Project,” an initiative directed at identifying processes and tools for human resource management in order to support corporate strategies which foster employees’ professional growth paths;
provided training to all employees, in both Italy and Romania;
continued with the Corporate Wellbeing Project, with 99% of eligible participants getting involved and new benefits/services added to the platform;
took the steps needed to renew the Biosafety certification at 100% of the assets included in the Italian shopping center portfolio, in addition to headquarters.
Ethical:
adopted the “Group Enterprise Risk Management Policy” and defined new ways to manage the ERM model;
carried out first phase of the integration of the risks monitored through the ERM system and ESG risks;
consistent with European best practices, defined the “Responsible Supply Chain Policy”;
obtained three-year renewal of UNI ISO37001 anti-corruption certification;
defined specific cybersecurity measures aimed at protecting corporate networks and preventing possible cyber-attacks.
Attractive:
new assets, like Officine Storiche, and restyling characterized by a focus on social and environmental impact;
added 22 new brands in Italy as a result of scouting activities carried out during the year;
growth in the number of in-person events compared to 2022, with a significant increase in the number of socio-environmental activities as a percentage of the total number of organized mall events.
Together:
Green finance: obtained the second green bank loan (for €250 million);
organized more than 1,100 meetings, in-person or online, with more than 700 retailers;
involved about 1,600 people in 5 shopping center satisfaction surveys;
strengthened regional interaction: organized engagement initiatives with the communities in 96% of the Italian shopping centers and 37% of the events organized focused on the local initiatives (highest amount in the last 10 years).
In the first nine months of 2023 IGD made further progress in terms of transparency in the disclosure of its ESG performance and laid the foundation for more. The targets to reduce emissions will have greater value once they are SBTi certified, while the ESG ratings will benefit from the GRESB Real Estate Assessment which IGD chose to subject its performances to. In September IGD, once again, also received Gold awards from EPRA for the quality and transparency of the information provided in the Sustainability Report and the 2022 Annual Report. In terms of the fight against climate change, IGD took further steps through new investments in expanding the production of renewable energy and an innovative project which will make the ESP center in Ravenna a zero emissions center, including thanks to the use of a few “nature-based solutions”.
In the first nine months of 2023 IGD made further progress in terms of transparency in the disclosure of its ESG performance and laid the foundation for more. The targets to reduce emissions will have greater value once they are SBTi certified, while the ESG ratings will benefit from the GRESB Real Estate Assessment which IGD chose to subject its performances to. In September IGD, once again, also received Gold awards from EPRA for the quality and transparency of the information provided in the Sustainability Report and the 2022 Annual Report.
In terms of the fight against climate change, IGD took further steps through new investments in expanding the production of renewable energy and an innovative project which will make the ESP center in Ravenna a zero emissions center, including thanks to the use of a few “nature-based solutions”.
IGD increasingly more committed to maximum transparency in ESG
IGD began the process to obtain SBTi certification for its environmental goals to reduce emissions. The structure has already been defined for the Scope 1 and 2 objectives, while the objectives for Scope 3, namely the emissions which the Company does not control directly but that are indirectly tied to its business, are in the process of being finalized.
What is the SBTi?
SBTi, the Science Based Target initiative defines and promotes ambitious corporate Climate actions by providing organizations with clearly defined paths, consistent with the Paris Agreement goals. More than 4,000 entities have already worked with SBTi globally and adopted its methodology.
In 2023 IGD also began the GRESB assessment process. This assessment will enrich the other 14 unsolicited ESG ratings IGD has already received from specialized global agencies.
What is the GRESB Real Estate Assessment?
The GRESB Real Estate Assessment is the global standard for ESG benchmarking and reporting in the real estate sector. The process developed by GRESB assesses the performance of companies with respect to seven different aspects of sustainability which include disclosure of KPIs, like energy consumption, greenhouse gas emissions, water consumption and recycling, as well as waste management. The methods used are the same for the different segments of the real estate sector and aligned with international reporting standards, like the GRI and PRI.
In September 2023, EPRA (European Public Real Estate Association) awarded IGD the EPRA sBPR Gold Award for the ninth year in a row and the EPRA BPR Gold for the sixth year in a row, recognition of the transparency and completeness of IGD’s sustainability and financial reporting, respectively. These awards confirm that the Company is serious about its commitment to the most transparent and complete disclosure possible, aiming to be increasingly aligned with the new recommendations that EPRA publishes periodically relative to best practices in reporting.
IGD’s real estate portfolio is increasingly more effective in reducing its environmental impact
The energy efficiency of IGD’s properties improved further in 2023, in accordance with the investment plan included in the Business Plan 2022-2024.
Today IGD can count on 10 installed solar energy systems, of which 8 in Italy and 2 in Romania. Investments will continue with the installation of new panels at the La Favorita Shopping Center in Mantua (where work is underway on placing the system in the outdoor parking area) and two more shopping centers in Romania between year-end 2023 and 2024.
The electricity produced by the systems already in use and the ones that will be opened soon will reach 3,450 megawatts which will cover approximately 6.3% of the electricity consumed by IGD.
As of today 10 of IGD’s shopping centers (or 63% of the Company’s Italian portfolio) have also obtained BREEAM certification: this ensures the tenants a high level of environmental performance, which lowers the cost for which they are responsible, while also providing the local communities with clear benefits as the BREEAM certification calls for strict control of the greenhouse gases produced by the properties. The certification plan will continue over the next few years, as well.
Consistent with ensuring that the real estate assets are even more environmentally friendly, IGD is launching a completely new and very ambitious project, namely the project to make the ESP center in Ravenna IGD’s first “Zero carbon emissions”.
The work slotted for the next few months will involve substituting the traditional heating/cooling systems at all the stores and the mall’s common areas with highly energy efficient equipment. This will result in noticeable energy savings which means lower costs for IGD and the mall tenants.
In a second phase, the project calls for the implementation of strategies based on “Nature-based Solutions”, including the reduction of the heat island effects, absorption of CO2, protection of biodiversity and precipitation management in order to reduce the impact of stormwater runoff.
IGD was included among Europe’s 500 Climate Leaders: a list compiled by Financial Times of the companies who reduced their GHG emissions the most in the period 2016-2021. ISS ESG also rated IGD’s sustainability policies and performance C+ with prime status: a result not solicited by IGD which will help to bring the Company to the attention of investors who focus their investments on securities with good ESG ratings. This recognition is attributable to the long journey begun by IGD more than ten years ago to act responsibly with respect to both its business and within the communities in which it operates, confirmed also by the new biodiversity projects undertaken.
IGD was included among Europe’s 500 Climate Leaders: a list compiled by Financial Times of the companies who reduced their GHG emissions the most in the period 2016-2021. ISS ESG also rated IGD’s sustainability policies and performance C+ with prime status: a result not solicited by IGD which will help to bring the Company to the attention of investors who focus their investments on securities with good ESG ratings.
This recognition is attributable to the long journey begun by IGD more than ten years ago to act responsibly with respect to both its business and within the communities in which it operates, confirmed also by the new biodiversity projects undertaken.
The Financial Times recognizes IGD’s ongoing commitment to reducing the emission of greenhouse gases
IGD was included in the third edition of the list of the 500 companies found to be “Europe’s Climate Leaders 2023”, compiled by Financial Times and Statista which was published in May 2023. IGD was already included in the list of the leading companies published by FT in May 2022.
Only companies using transparent methods in calculating their Scope 3 emissions, who collaborate in the Carbon Disclosure Project and the Science Based Targets initiative (which focuses on the analysis of plans to reduce emissions) were taken into consideration. The companies included in the list published were selected from this group based on the extent to which its Scope 1 and 2 GHG emissions were reduced in the five-year period 2016-2021, calculated using the tons of CO2 emissions for each million of euros in revenues.
The list of Leaders 2023 includes, in addition to IGD, 33 Italian companies and 27 property companies.
This recognition, therefore, rewards the disciplined and knowledgeable approach IGD has been using to fight climate change since 2015.
The C+ sustainability rating with prime status assigned by ISS ESG will carry a lot of weight in the investors’ valuations
For the first time in its history, IGD received a Corporate ESG rating of C+ with prime status from the rating agency ISS ESG.
This rating indicates that IGD is among the best companies in its sector in terms of sustainability policies and performances, fully compliant with the requisites for real estate companies.
The rating received by IGD was unsolicited, meaning the Company did not request nor pay for it.
For several years IGD has also received a Quality Score from ISS. This score analyzes and measures the Environment, Social and Governance risk and assigns a score of between 1 and 10 for each area of performance.
Consistent with the good scores received by IGD as a result of this assessment, the rating recognizes the validity of the strategy the Company began implementing in 2011 and has changed over time based on new priorities and changes in the business which has had a positive impact on the Company’s results, as well as the interests of its stakeholders.
The projects to promote biodiversity in the areas where its shopping centers are located continue
In the Business Plan 2022-2024 IGD included biodiversity in the company’s sustainability strategy, including in accordance with EU Regulation 2020/852. The choice reflects the understanding that the Shopping Center, given its stable presence in the community, can help to protect and promote local biodiversity: this awareness is also the result of the BREEAM certification that IGD has obtained for 10 assets as this process focuses on wellbeing both inside and outside the shopping center.
The target established in the Plan calls for the implementation of four biodiversity projects in the same number of shopping centers.
A first project was begun in the “Le Porte di Napoli” Center which involved the creation of green walls with a view to improving the interior, as well as making the shopping center a more active part of the area that surrounds it.
More recently, a project came to life at the Centro d’Abruzzo, where the Oasi di Biodiversità was inaugurated on 7 June. The oasis can be visited by the entire community and includes not only indigenous plants, but also a bee garden with two bee hotels created by Apicolturaurbana.it: the first hotel is for traveling bees, while the second is for bees who are already producing honey. By requalifying part of the center’s parking area and transforming into the oasis, IGD was able achieve its goal to protect the biodiversity of the local ecosystem.
With regard to the other two projects included in the Plan, specialized technicians are analyzing the current situation at the Coné center in Conegliano Veneto and Portogrande in San Benedetto del Tronto, in order to define an operational plan for Coné in 2023 and for Portogrande in 2024.
The Waste2Value project was launched on March 28th at the Centronova Shopping Center in Villanova di Castenaso (in Bologna province), which is included in IGD’s Italian portfolio under a master lease agreement. This center is visited daily by around 8,000 shoppers.
The transformation of food waste (namely orange peels and coffee grounds) collected from the bars and restaurants found inside the center into new products gave birth to a new initiative aimed at reducing waste, promoting sustainability and circular economies in the region.
The Waste2Value project was launched on March 28th at the Centronova Shopping Center in Villanova di Castenaso (in Bologna province), which is included in IGD’s Italian portfolio under a master lease agreement. This center is visited daily by around 8,000 shoppers.
The transformation of food waste (namely orange peels and coffee grounds) collected from the bars and restaurants found inside the center into new products gave birth to a new initiative aimed at reducing waste, promoting sustainability and circular economies in the region.
A useful transformation process based on the collaboration between partners
The food waste products from the mall will be transformed into a soil amendment, a natural fertilizer which will be used to maintain the green zones inside the shopping center and a few vegetable gardens managed by local communities, in a composter located outside the Center. Testimony to the relationship with the local community, the composter is in bins designed by Hazkj, a young Bolognese artist.
Ample stakeholder involvement
A number of different parties are involved in the initiative:
on an institutional level: the Emilia-Romagna Region, ATESIR (Agenzia Territoriale dell’Emilia-Romagna per i Servizi Idrici e i Rifiuti), as well as the municipality of Castenaso;
as project sponsors: IGD SIIQ, Coop Alleanza 3.0 and Camst Group, through its food&beverage activities inside the Center;
the social cooperative “La Fraternità”, thanks to which a challenged individual will join the workforce, collecting and transferring the waste products to the composter
the project supervisor, Impronta Etica a (non-profit organization which promotes Corporate Social Responsibility (CSR), of which IGD is a member).
How the project was born
Waste2Value is the end result of a step-by-step process of conceptualization and prototyping carried out after two hackathons, namely creative marathons in which approximately 80 students and university researchers participated.
The inauguration: an important moment for the entire community
During the inauguration on 28 March 2023, a few elementary school students from Castenaso and the volunteers that take care of the community vegetable gardens, went through the whole cycle of gathering the waste to transferring it to the composter. Leaders from the different partner organizations were also present (the Mayor of Castenaso and the Director of Atersir).
IGD’s role
Well aware of the key role that the shopping center can play in reducing waste and promoting a circular economy, IGD became one of the sponsors of the Waste2Value project which is very consistent with the policies expressed in the 2024 Business Plan and the 2030 ambitions. The commitment to promoting a “zero waste” center, in fact, involves both reducing the production of waste, as well as increasing the amount of waste that is transformed into new resources.
Thanks to the path of continuous improvement undertaken, today 83% of the waste produced at IGD’s shopping centers is recycled.
We would like to present our 13th Sustainability Report referring to 2022, a year in which all our activities were steadily resumed following the two-year period marked by the Covid-19 pandemic. It was also a year, however, in which we had to face new problems which, like the pandemic, were of an external nature but which directly impacted our business.
Dear Stakeholders,
We would like to present our 13th Sustainability Report referring to 2022, a year in which all our activities were steadily resumed following the two-year period marked by the Covid-19 pandemic. It was also a year, however, in which we had to face new problems which, like the pandemic, were of an external nature but which directly impacted our business. Indeed, from the end of 2021 we started to see an exponential increase in energy costs, added to this was the climate of uncertainty caused, at the end of February, by the start of the war in Ukraine and by the increase in inflation to levels not witnessed in the last 40 years or so. This put both our tenants and consumers temporarily under pressure. In the last few months of 2022 and the beginning of 2023 we witnessed a positive evolution in the scenario, which makes us feel more confident when looking ahead at 2023.
In this difficult context we have had further demonstration of how important it was to have undertaken in 2011 a process aimed at sustainability and to have continuously and increasingly integrated it into our way of doing business. Indeed, our intent when we named our sustainability strategy by using the acronym «G.R.E.A.T.» was to clearly explain our priorities: environment, people, ethics, attractiveness of the structures and cooperation with our stakeholders. With regard to the environment, it is with this in mind that we have carried out investments in order to make our structures increasingly less energy-consuming. We are now pleased to observe that, over the last ten years, consumption by our Shopping Centres has decreased by over 25%. If, therefore, we had not invested in photovoltaic systems, led lighting, and system improvements and if we had not worked on the monitoring of consumption and on the ordinary management of our Shopping Centres, in this period of increased energy costs we would have had structures that were more energy-consuming and less sustainable both from an economical point of view and an environmental one.
Furthermore, the external situation has demonstrated how important it is to be able to cooperate with you, our stakeholders. It is one of our pillars of our sustainability strategy («T» for «together»), and during the year we exchanged views and ideas with you in order to understand needs and to define responses that were appropriate in the context. With our tenants, in particular, we interacted with greater assiduity compared to the past (the significant increase in the number of calls organised during the year bears witness to this) so as to identify each time the most appropriate solutions in order to get through this period in a profitable manner.
The sturdy sustainability process that we have undertaken and the CSR targets that we have set ourselves within the 2022-2024 Business Plan have enabled us to seize the opportunity to receive green financing, capable of meeting the preferences of investors in that specific market context. It was for this reason that we defined the Green Financing Framework at the beginning of the year and we have obtained new financial resources equalling 215 million euros, by means of a green loan with a maturity of up to 5 years.
With regard to the Business Plan, 2022 represented the first year of its application. Every six months we monitor and share with the Board of Directors the progress made of the work included within the entire Plan, with focus on the achievement of the sustainability targets. By the end of the year we had achieved 43% of the latter. This means we are heading in the right direction and that we are indeed achieving what we had resolved to do within the three-year timespan. In this Report we have described with precision the progress made on each target, openly stating both the actions carried out and those programmed for the following years.
In 2021, when defining the Sustainability Targets for the Business Plan, we had begun to carry out an initial analysis to review our material issues. In 2022 we finalised this activity, taking into account the developments introduced by the Global Reporting Initiative (GRI), the global standards for sustainability reporting. Compared to the previous definition of materiality, focus is now on the impacts that our organisation has on the environment, economy and people.
The analysis carried out enabled us to identify 10 material issues, which have been reported within the 5 strategic corporate aspects (GREAT) and, as the previous ones, they form the basis of IGD’s sustainability strategy. In this Sustainability Report we have described the actions carried out and the results obtained over the year for each of these material issues.
In this regard, in section «Green» we have reported how environmental performance was affected by two factors during the year: on the one hand, by the fact that IGD decided to invest 3 million euros divided between Italy (€2.4 million) and Romania (€600,000) in environmental impact measures to improve energy efficiency, resilience to climate change and to mitigate the pollution produced by our structures (reaching a total of 8.8 million euros invested over the last 4 years); on the other, by the necessity to identify particular forms of consumption saving, made even more pressing due to the unexpected energy price increase. With regard to this, we were amongst the first ones to adopt «Guidelines for energy saving in shopping malls» published by the Consiglio Nazionale deiCentriCommerciali (National Association of Shopping Centres).
In terms of energy efficiency improvements the results were positive: our Shopping Centres reduced their Co2 emissions by 10% compared to 2021 (year in which the first few months were marked by opening restrictions). By taking 2018 as the baseline, the decrease in carbon dioxide emitted into the atmosphere was equal to 26%.
These results were made possible thanks to the contribution of the actions carried out over time. Primarily, the impact of the electricity produced by the 8 photovoltaic systems increased (which represented 5.8% of the total electricity consumption). In 2022 we signed letters of intent for the installation of 5 more photovoltaic systems starting from 2023. Furthermore, we believe that the contribution given by the installation of led lighting systems was also significant: these are present in 20 of our Malls and in 2022 this resulted in an average decrease of over 300,000 kw/h in each Shopping Centre (equal to the average annual electricity consumption of 115 families of 4).
We also continued the Breeam certification process of our assets. In 2022 we certified two more Shopping Centres (one of which, Maremà, obtained the double evaluation score of «Excellent»). Currently 64% (in value) of our portfolio is Breeam certified (in addition to 95% with ISO 14001 certification).
Furthermore, following various analyses carried out during the year, we believe that it is feasible for IGD to set itself a reduction target regarding emissions (Scope 1 and 2) which is «Science Based», that is, aimed at limiting global warming to 1.5°, as recommended by the 2015 Paris Agreement. In line with our ambition to contribute to a «net zero society», it is our intention to continue to work following this approach which is one of the most widespread (and challenging) standards at international level.
In addition to the environmental aspect, our sustainability strategy places people at its core: we undertake to act in a «Responsible» manner both with regard to our employees and to the people that are present in our Shopping Centres.
In line with the material issue that we identified («Good employment»), during the year we invested particularly in employee training. Indeed, investment increased and, in Italy, 100% of employees took part in at least one training activity. We concentrated on IT skills and on soft skills, continuing a process that was started last year. We also focused our attention on the engagement and wellbeing of people who work for IGD. With regard to the first issue, we carried out our third internal atmosphere assessment, with 85% of the employees taking part. The overall outcome was positive, with various strong points and a few weak ones. With regard to the latter we have identified the necessary improvement actions which will be implemented from 2023. With regard to wellbeing, the corporate Welfare Plan continued (used by 100% of those entitled) and petrol vouchers were distributed to the employees without company cars, to help them cope with the extraordinary increases in that period.
Remaining on the issue of wellbeing, we decided to continue the Bio Safety Certification scheme developed by the accreditation board RINA in all our Shopping Centres as well as the headquarters. It is a management model which is designed to prevent and mitigate the spread of infections to protect the health of individuals from biological agents.
In section «Ethical», we have reported on how the Legality Rating was renewed and confirmed with the maximum score (three stars). In Italy only 8% of companies that obtained the Rating achieved this score: this is the demonstration of our commitment to maintain ethics and legality at the core of our conduct. Obtaining ISO37001 anti—bribery certification in 2019 in Romania and in 2020 in Italy was also a demonstration of this commitment. In 2022 we carried out periodic audits and took the necessary actions to resolve any issues that had emerged.
During the year we also implemented the ERM risk management system by outsourcing the position of Risk Manager. As envisaged in our Plan, in 2023 we are committed to increasing the integration of sustainability risks into the internal control and risk management system.
The attractiveness («Attractive») of our Shopping Centres is one of our primary objectives. We decided to pursue this in such a way to make sustainability one of the drivers. For this reason, as part of the restyling work in La Favorita Shopping Centre in Mantua, we placed particular focus on energy efficiency improvement (replacing the existing lighting system with led lighting) and on the liveability of the structures (creating new green areas and pedestrian areas). Continuing with our approach to ensure a high level of attractiveness of the structures, we resumed the organisation of events, the number of which had decreased considerably due to the pandemic. Altogether we organised 531 events and we placed particular attention on both social-environmental events (the impact of which on the total was 9 percentage points higher compared to the pre-pandemic period) and on the implementation of opportunities provided by the Digital Marketing Plan.
The close relationship with the local area, working together («Together») with the local community, represents, furthermore, a way of life for our Shopping Centres. During the year we interacted with 247 local associations and non profit organisations and one out of three events that we organised were local ones.
The results obtained during the year fall within a general context shaped by an ever-increasing focus on ESG issues. As far as we are concerned, we are committed to contributing to the debate both at national and European level. Indeed, by means of the roles we hold, we represent both the Chair of the Consiglio Nazionale deiCentriCommerciali (National Association of Shopping Centres) and the Chair of the ESG Commission within the Association itself and we contributed during the year, giving our input to the position paper defined at national level on «Energy Performance Building Directive» (EPBD), the most important European directive on the subject of decreasing building energy consumption. By participating in the Sustainability Groups of both EPRA (European Public Real Estate Association) and ECSP (European Council of Shopping Places), we are able to monitor changes in legislation and constantly discuss and share ideas with our peers.
At the same time, we have noticed an increase over time in the attention paid to IGD’s sustainability initiatives. In 2022 alone, the number of unsolicited rating companies that assessed our ESG commitment was equal to 12 (2 more compared to 2021), from these it has emerged that there has been an overall improvement in our performance.
Being included in 10 stock market indices with focus on ESG (the number was 8 in 2021) and being mentioned in no less than 86 articles which talk about our sustainability, leads us to believe that the track upon which we embarked over 10 years ago and which we are continuing to follow with such commitment, is the right one.
After having defined its Green Financial Framework in the spring, in August IGD obtained the first green loan in its history of €215 million from a pool of banks. Let’s find out the reasons why this type of loan was preferred in the current environment and how it affects financial sustainability by speaking with Andrea Bonvicini, IGD’s Chief Financial Officer.
After having defined its Green Financial Framework in the spring, in August IGD obtained the first green loan in its history of €215 million from a pool of banks. Let’s find out the reasons why this type of loan was preferred in the current environment and how it affects financial sustainability by speaking with Andrea Bonvicini, IGD’s Chief Financial Officer.
What are the characteristics of this loan?
IGD obtained €215 million in new financing through a senior unsecured loan disbursed by a pool of banks comprising top-tier domestic and international lenders. The green facility expires in three years and has an extension option in favor of IGD for up to five years.
What led you to consider this type of instrument?
We went with a green loan because, in our view, in this current market environment it is the instrument that investors seem to prefer. The main benefit that we saw in this type of facility is the flexibility it provides in terms of liability management: the ability to extinguish it at any time leaves the door open to other refinancing opportunities if the market conditions should become better for the issue of a corporate bond, for example. This is crucial for IGD: in order to remain investment grade, which Fitch confirmed with a BBB- rating and stable outlook, the rating agencies ask that companies refinance all future maturities at least a year in advance. This is why a three year, unsecured solution with an extension option best met our needs.
A lot of work went into preparing the road leading to this new type of financing…
We started with the sustainability targets included in the 2024 Business Plan and the desire to obtain financing instruments that could facilitate the investments needed to achieve these same targets. The first step toward a green issue was, therefore, to define a Green Financial Framework, which we published last March. IGD’s Framework was developed in accordance with the Green Bond Principles 2021, published by the International Capital Market Association (ICMA), as well as the Green Loan Principles 2021, published by the Loan Market Association (LMA). The whole document, drafted with the support of a premier financial advisor (BNP Paribas), was also checked by ISS as we requested a Second Party Opinion. The Green Financial Framework defined the Eligible Green Projects, relative to the following categories: Green buildings, energy efficiency, renewable energy, and “clean” transportation. Currently the most important category for us – and, therefore, also the one which will benefit the most from the new financing obtained in August – is Green Buildings. We already have 8 BREEAM certified assets in our portfolio and 9 more should be certified by 2024, as per our 2024 Plan. We are, however, not stopping here: for some time we have, in fact, also been working on a Sustainability-Linked Financial Framework, that will be finalized in the coming months, which will allow us to issue financial instruments tied to sustainability performance.
Was it easy to put together a pool of banks interested in this specific type of financing?
We were certainly helped by the growing focus of the banking world on these types of instruments, as the single lender also has a sustainability strategy which is implemented by granting green loans. We could have tried to get more banks involved in the pool, which would have helped us to get larger loans, but this would have required more time. Our priority was to quickly use the new green loan to repay the €200 million syndicated loan, maturing in 2023, in advance. Interest rates were already rising, but by closing the new loan quickly we were able to lock-in a low spread.
Looking at the coming maturities, what other refinancing will IGD have to complete going forward?
As you can see by the chart of our debt maturities, if we also take into account the committed lines (currently completely unutilized), with this last transaction we have basically already refinanced the most significant financial maturities through year-end 2023. We do not have significant needs, as we have always carried out refinancing well in advance, not only in order to maintain our investment grade rating, but also to maintain the financial discipline that IGD has adhered to and which has always proved to be a winning strategy, particularly in difficult times like those experienced during the closure of the shopping centers due to the pandemic.
In your opinion, has the way in which the rating agencies assess companies changed in this new scenario?
The rating agencies are also trying to understand the extent to which the current global market conditions and the energy crisis will affect listed companies. I would also like to stress that IGD’s rental income is protected by rents that are indexed to inflation, while the direct impact of the higher cost of energy on the Group is limited to the energy consumed in the common areas of the shopping centers and the vacant spaces. The operating figures that we receive everyday show that tenants’ sales are back in line with 2019, the last year impacted by the pandemic, with significant growth compared to 2021: this indicates that the goods and services offered at the shopping centers are in step with the times and consistent with the expectations and needs of consumers. This is certainly one of the aspects that the rating agencies look at the most when assessing the health and sustainability of our cash flow. Furthermore, in the note attached to the last credit opinion, issued on September 16th, Fitch also stressed that the flexibility of the new loan was important given the changing scenario.
What will IGD do in the near future?
While lately our preference has been for unsecured debt, we have roughly €1.5 billion in assets that could be used for secured debt transactions: this represents important “breathing room” that IGD can count on. Even if currently we do not have any concrete needs, we are, at any rate, working on other refinancing and we will have access to a variety of financial instruments ranging from green or sustainability linked bonds, convertible bond loans, private placements and secured or unsecured bank loans. In the past, a number of different financial products have always been available to us and we have always selected the most opportune one based on our needs and the market conditions. Today we also have a number of different solutions to choose from.
The Business Plan approved by IGD’s Board of Directors last December contains 41 quantitative targets for the three-year period 2022-2024 and identifies 22 ambitions for 2030. During this first half when implementation of the Plan began, IGD worked on several sustainability projects which are part of its “Becoming GREAT” path and the Green, Responsible, Ethical, Attractive and Together directives.
Let’s take a look at the main results achieved in this first half of 2022.
IGD CAREFULLY MONITORS THE PROGRESS MADE AND REPORTS THE RESULTS ON A HALF-YEARLY BASIS TO THE BOARD OF DIRECTORS.
The Business Plan approved by IGD’s Board of Directors last December contains 41 quantitative targets for the three-year period 2022-2024 and identifies 22 ambitions for 2030.
During this first half when implementation of the Plan began, IGD worked on several sustainability projects which are part of its “Becoming GREAT” path and the Green, Responsible, Ethical, Attractive and Together directives.
Let’s take a look at the main results achieved in this first half of 2022.
IGD confirmed, also for 2022, the purchase of electricity coming exclusively from renewable sources in its Shopping Centers.
The Company also signed contracts for the installation of solar panels in five shopping centers.
Following the agreements signed in 2021 with 2 major international players in the electric car charging sector, work has begun on the construction of fast charging stations in 7 Shopping Centers.
In the first half of 2022, 70% of the employees in Italy and 60% of the ones in Romania participated in training courses.
A “pulse survey” of the company’s people on aspects of corporate wellness was also carried out.
Lastly the Biosafety Trust Certification for 7 Shopping Centers and the headquarters in Bologna was also renewed. This certification guarantees that the health of visitors and employees will be monitored in accordance with the protocols designed to prevent also COVID-19 contagion.
Members of the Board of Directors participated in induction activities relating to results and the goals of IGD’s sustainability path.
About ISO37001 anticorruption certification, the Supervisory Audit confirmed the effectiveness of IGD’s Organizational Management System and certified legal compliance.
Work continued on the restyling and refurbishing projects aimed at rendering the properties even more attractive, innovative and energy efficient. In the first half work was done at four shopping centers: at La Favorita in Mantua, with the installation of a LED lighting system, at the Portogrande center near Ascoli Piceno and the Leonardo center in Imola where energy efficiency was improved, as well as at the ESP center in Ravenna where systems were revamped.
At the same time as the reopenings, social initiatives were also promoted at 90% of the shopping centers comprising IGD’s Italian portfolio.
As a condition for the issue of sustainable financial instruments, IGD developed its Sustainability Framework which was made available on the corporate website.
The Company has also decided to resume the “Social Borgo” project, with a focus on the participation of the local community (interrupted during the Covid period)
Clear 2030 sustainability ambitions, quantifiable targets for 2024 and work underway on five areas of sustainability: the commitments in IGD’s agenda are clear, with results that are already rewarding the immense amount of work done since 2011 (the year in which the Company undertook this path).
Let’s learn more about these topics by asking Francesco Soldi, IGD’s Head of Marketing and Corporate Social Responsibility, a few questions.
Clear 2030 sustainability ambitions, quantifiable targets for 2024 and work underway on five areas of sustainability: the commitments in IGD’s agenda are clear, with results that are already rewarding the immense amount of work done since 2011 (the year in which the Company undertook this path).
IGD’s sustainability planning is increasingly more structured and completely integrated with the corporate strategy and operations. The new Sustainability Plan, with targets for 2024 and ambitions for 2030, reflects the Company’s serious and tangible commitment to being increasingly more sustainable with a view to ESG factors in a post-pandemic world.
Let’s learn more about these topics by asking Francesco Soldi, IGD’s Head of Marketing and Corporate Social Responsibility, a few questions.
Today an impressive 11 agencies assign IGD ESG ratings. What comments would you like to make in this regard?
Over the years IGD has been committed to investing energy and resources in the continuous improvement of its ESG profile. Beginning in 2014, today we are at the fourth Business Plan with a Sustainability Plan that is completely integrated in the company’s strategy: when comparable, the numerous scores assigned by the ESG rating agencies, which show we are improving gradually year-on-year, confirm that we are moving in the right direction. Recently we have also been included in two prestigious sustainability rankings: the Italian one, organized by Il Sole 24 Ore, in partnership with Statista, which ranked us among the 150 domestic leaders in sustainability, and the European one organized by the Financial Times, again in partnership with Statista, which includes us among the Climate Leaders 2022, namely one of the 400 European and 19 Italian companies who have done the most to reduce their carbon footprints in the period 2015-2020, with a 21% decrease in CO2 emissions, measured based on the energy intensity for the same square meters of the real estate portfolio.
Before focusing on the new Sustainability Plan, could you tell us about the actual performance and the targets achieved with respect to the previous Plan, for 2019-2021?
We achieved around 80% of the total targets that were achievable in the period 2019-2021; this is compared with a success rate of 90% for the 2016-2018 Plan. In light of the external context, we view this as a good result. When we launched the Sustainability Plan in 2019 we could not, in fact, have foreseen the impact that the pandemic would have on two out of the three years covered by the Plan, with repercussions that inevitably affected both IGD’s investment capacity and the ability to achieve the targets defined for organized events inside our shopping centers. These are goals, however, that continue to be important to us: we have already committed to including them in the new Plan.
Sustainability provides attractive benefits, but also involves a cost. What investments did IGD make in sustainability over the past few years in order to reach its targets?
Overall, over the life of the last two plans we have invested approximately €12 million in sustainability, of which €5.8 million in the period 2019-2021. In the new Plan we would like to accelerate these projects and expect to invest an additional €13 million in the period 2022 through 2024.
Let’s start talking then about this new Plan that will take IGD toward 2024 and, with regard to a few aspects, even beyond, through the end of the current decade. Given the different elements of uncertainty, how have you proceeded?
We began with the idea that a specific plan for guiding a post-pandemic IGD should be based on the desire to allocate a good part of the investments to making the business even more sustainable. Our sustainability strategy continues, therefore, to be shaped by the materiality matrix, which was partially revisited in 2020, and to maintain the structure GREAT (Green, Responsible, Ethical, Attractive, Together). We, in fact, defined the risks and opportunities connected with a sustainable management of the business and identified 41 quantitative targets to achieve over the three-year period 2022-2024. All of the targets were incorporated within the single areas of operation. We also identified 22 ambitions which will guide us along the path to 2030, as concrete guidelines that will allow us to make our contribution to the strategies for sustainable development defined by the United Nations in the Sustainable Development Goals.
Which projects will you be more focused on at this particular point in time?
As part of the activities that we are moving forward with in order to achieve the Plan targets we are currently working on five important areas. The first has to do with the pilot project which focuses on transforming the ESP center in Ravenna into a “zero energy emissions” center. A second area we are working on involves an agreement with an important social cooperative in Bologna, La Fraternità, for the opening of a second “And circular” store in our shopping malls: in the wake of the store opened year-end 2021 at Centro Borgo and in light of the good results achieved, we have finalized an agreement for a second store at Centro Lame (once again in Bologna). This way it will be possible to develop an innovative initiative which combines environmental with social commitment by way of a circular economy project (collection of used clothing which is then put up for sale) and by providing jobs (when fully operational the project will provide jobs for 7 people, of which 3 at risk). Thirdly, we will move forward with our commitment to sustainable mobility: we are working on introducing fast chargers, based on agreements with multinational sector leaders, in 10 shopping centers (to date we have Superchargers in three shopping centers). We are also assessing the opportunities that the new laws relating to Energy Communities provide, including in light of the changes introduced in the National Recovery and Resilience Plan (Piano Nazionale di Ripresa e Resilienza), in order to select the best locations in our real estate portfolio.
The fifth area we are working on incorporates our entire environmental commitment. In the 2021 CSR Report we reported on, in addition to the direct Scope 1 and 2 emissions, the indirect Scope 3 emissions. In this way, we defined our total emissions in order to understand the steps that need to be taken to obtain the validation of at least one environmental target by the Science-Based Target Initiative (SBTi), an institution considered to be an international authority, needed to certify our contribution to fighting global warming and limit the increase in the temperature globally to 1.5° with respect to the pre-industrial level, as defined in the Paris Agreement of 2015.
The Sustainability Committee, therefore, has a full schedule…
This year the Committee’s role has been expanded. Today all of IGD’s divisions are represented in the committee. The interaction with the Board of Directors has also become more structured: we, in fact, committed to reporting every six months on the progress made with respect to the projects included in the new Plan.
We would like to present our 12th Sustainability Report referring to 2021, a year of transition for our sector. We ended 2020 aware that the sustainability process we had undertaken was the right approach even when facing the unpredictable challenges brought about by the pandemic.
Dear Stakeholders,
We would like to present our 12th Sustainability Report referring to 2021, a year of transition for our sector. We ended 2020 aware that the sustainability process we had undertaken was the right approach even when facing the unpredictable challenges brought about by the pandemic. It represented our way of being: in our opinion those whose intention is to remain in a business following a long term approach cannot exempt themselves from contributing towards a low carbon economy, from putting people, their health and safety at the centre of their own way of working, from acting in an ethical manner in decision making and towards all those they dialogue with, ensuring at the same time that their structures are more attractive than ever following an approach based on cooperation with all stakeholders, even in local contexts, like those in which we ourselves operate. In short, we maintained our belief in our strategy which we called «Becoming GREAT», considered today as being as contemporary as ever, even in a period of uncertainty like the one we are currently experiencing.
Our awareness was heightened even further in 2021. All around us we noticed an increase in focus placed on sustainability issues at global level (the echo from COP 26 was something that no similar event had ever experienced), at European level (with the new Taxonomy and other regulations with an impact also on our sector) and at national level (with the approval of the National Recovery and Resilience Plan in which substantial investments are allocated to the transition towards a more sustainable economy from an environmental and social perspective). Furthermore, we have noticed, whilst dialoguing with you, our stakeholders, how increasingly close to your hearts these issues are.
2021 was the year in which we planned our future commitments, with the definition of our new 2022-2024 Business Plan.
When drawing it up, we took into account both the regulatory framework and your recommendations.
Because of this, when we started we were certain of one thing: a Business Plan that intends to see IGD through the post pandemic period could only be based on a decision to allocate a very significant part of its investments in order to make its business even more environmentally and socially sustainable. For this reason, the new Business Plan envisages an investment of approximately 13 million euros to finance the 41 targets introduced. These targets are measurable and every year we will report on the level of achievement for each of them. We also felt it was necessary to clearly lay out the directions we intend to take and our priorities up to 2030. We have called them «ambitions» and they represent 22 guidelines which we will work on so as to make our contribution to the sustainable development strategies defined by the United Nations with the SDGs.
Furthermore, in this Sustainability Report we have also included a detailed account of the last 3 years. Indeed, 2021 was the last year of the 2019-2021 Plan.
When we defined the contents, we could not then have imagined that 2 of the 3 years would be marked by a global pandemic, with significant repercussions both on the company’s investment capability and on the possibility to organise events with gatherings in our Shopping Centres. For this reason we were not able to reach all the targets which we had set ourselves. However, we have undertaken the commitment to work on them in the next Plan. We consider it important, however, to highlight the level of achievement for each target we set so as to be transparent and open with all of you: sustainability, in our view, also means this.
Our strategy also involves the management of risks related to sustainability. Every year we monitor them, analyse the results obtained and describe them in the Report. Year after year we have perfected the so-called «dashboard»: in 2021 we added new risks related to contingent factors (like for example the increase in energy costs) and we defined, for each risk, the related opportunities.
At the same time, we consider it appropriate to set our sustainability process within the framework of international best practices.
Our Report is carried out in line with EPRA and GRI standards. On this topic, in 2021 we received for the 7th year the «EPRA sBPR Gold Award» for our Sustainability Report and for the 4th year the «EPRA BPR Gold Award» for our Consolidated Financial Statements.
Furthermore, after joining the United Nations’ Global Compact in 2020, in this Report we have included «Communication on progress», the annual report on the policies and the actions carried out in 2021 in reference to the Principles identified by the United Nations regarding human rights, labour, the environment and the fight against corruption. Likewise, for the third year, we responded to the recommendations of the Task Force on climate-related financial disclosures (TCFD).
Overall, we are satisfied with the results we obtained in 2021. Also our performance, especially environmental performance, when compared to the pre-pandemic period, improved considerably.
On this point, with regard to climate change, in 2021 we continued to invest in energy efficiency, as described in section «Green».
With the 1.2 million euros which we invested in Italy in energy efficiency improvement (in addition to the 620,000 invested in Romania), we reached an overall investment equal to 5.8 million euros over the 3 year timespan of the Plan, exceeding the target we had set ourselves (5 million). Thanks to these structural investments, as well as greater focus placed on management and the constant monitoring of performance, there was a fall in energy consumption during the year, which was not a result of the Malls being less operative due to the restrictions. Indeed, we are pleased to report that in the last 7 months of the year we reduced energy consumption by 14% compared to the same period in 2019. One of the results of the investments carried out was the continuous increase in the proportion of energy produced from photovoltaic panels, installed in 8 of our Shopping Centres, currently standing at approximately 7% out of the total energy consumed during the year (it was 3.4% in 2019). LED lighting, which is installed in 19 of our Malls, also enabled us to reduce energy consumption: if we had not invested in this, in 2021 we would have consumed 6.5% more (the energy saved is equal to consumption in a medium-large Shopping Centre).
In addition, starting from this year, our reporting includes the so-called Scope 3, that is, emissions indirectly linked to our business. The assessment of these emissions, alongside the assessments of Scope 1 and 2 emissions which we have been reporting for several years now, will enable us to be fully aware of our environmental impact.
In 2022 we will assess our performance and, in line with international best practices, we will identify specific reduction targets which are «Science-Based», or rather, those aimed at limiting global warming to 1.5°, as recommended by the 2015 Paris Agreement on climate change. We will work, therefore, so that the targets are validated by the Science-Based Targets Initiative (SBTi), one of the most distinguished international networks active on this issue.
In addition to the environmental aspect, our sustainability strategy places people at its core. For this reason, we intend to act in a responsible manner both with regard to our employees and to the people that are present in our structures.
In section «Responsible» therefore, we report not only on employment stability and quality which we continued to guarantee over the year, but also on investments which we carried out both with regard to the establishment of the new Information Technology corporate role and with regard to the development of our employees’ skills. On this topic, we would like to highlight how focus on training, especially in a rapidly changing context like the one we are witnessing now, is strategic for the near future. For this reason we decided to increase our investment in training, focusing on soft skills and digital skills.
We also continue to place great attention on the issue of wellbeing, both that of our employees (100% of them made use of the advantages offered by corporate Welfare) and that of those who work in or who visit our structures. With regard to this, in 2021 we decided to follow the Bio Safety Certification scheme developed by the accreditation board RINA, the first management model introduced into the market which is designed to prevent and mitigate the spread of infections to protect the health of individuals from biological agents, like, in particular, those connected to the current Covid-19 situation.
Up to now, 7 of our Shopping Centres, in addition to the headquarters, have been certified. By the end of 2024 this certification process will involve all our Malls.
Once again in 2021 we confirmed how ethics and legality are two ineradicable factors in our approach to business («Ethical»).
After obtaining ISO37001 certification, the international standard of reference for anti-bribery management systems, during the year we audited our actions and we identified, amongst the adjustments to be made, one with regard to the purchasing process, with a view to achieving an increasingly responsible management of our supply chain (one of the targets which we will be working on in the next Plan). Our commitment to ensure our governance is in line with the best practices at national level was acknowledged during the year by two important recognitions: our «governance risk» was awarded the best score possible in the ISS (Institutional Shareholder Services) assessment and we were included in the first 5 of the extra top 100 listed companies in the Integrated Governance Index, developed by Etica News.
We also continued to be committed to making our Shopping Centres even more attractive («Attractive»). During the year we implemented several new aspects which are also features of our new Business Plan: new merchandising mix to adapt our retail offer (34 new brands introduced, the highest number in the last few years); focus on people’s health, with the opening of the first medical clinic in one of our Shopping Centres and with the creation of two vaccination hubs which gave approximately 400,000 people in Ravenna and Palermo the possibility to be vaccinated; implementation of opportunities offered by digital evolution so as to constantly increase interaction with the visitors, putting into practice what had already been envisaged in our Digital Plan.
In order to handle this phase in the best way possible, we continued to engage with you, our stakeholders, constantly communicating and working with you («Together») following an approach based on cooperation. The over 1,000 meetings organised with our tenants, the 17,000 visitors and non visitors that were heard by means of specific surveys, as well as the 89 investors met (25 of these new ones) all bear witness to our commitment on this matter.
Undertaking a sustainability process, for us, has also always meant participating in debates on these issues at national and international level, with particular focus on what is happening in our sector. For this reason, in 2021 we promoted and participated in the «Sustainability Manifest» of the Consiglio Nazionale deiCentriCommerciali (National Association of Shopping Centres), in virtue also of the roles we have in this Association, which are both the general Chair of the Association and the Chair of the ESG Commission. We continued to be a member of the Sustainability Groups of both EPRA (European Public Real Estate Association) and ECSP (European Council of Shopping Places), overseeing the proposals of European legislation so as to analyse them, assess them and, with the cooperation of the other companies in the sector, propose together any amendments.
At the end of our third Business Plan, where we worked to integrate sustainability into the way in which we conduct business, we can consider ourselves satisfied with the results obtained.
Being assessed in 2021 by 11 Rating companies focused on ESG parameters, whose appraisals of us continue to improve year after year, is a sure indication that we are on the right track.
In this edition we will talk about: IGD’s partnership in a new circular economy project, AND, focused on collecting used clothing and the opening of the first AND store at Centro Borgo obtaining “Biosafety Trust Certification” for IGD’s headquarters and for 7 Shopping Centers the “EPRA Sustainability Best Practices Recommendations (sBPR) Gold Award” received for […]
In this edition we will talk about:
IGD’s partnership in a new circular economy project, AND, focused on collecting used clothing and the opening of the first AND store at Centro Borgo
obtaining “Biosafety Trust Certification” for IGD’s headquarters and for 7 Shopping Centers
the “EPRA Sustainability Best Practices Recommendations (sBPR) Gold Award” received for the seventh year in a row for the Corporate Sustainability Report and the ranking of IGD among the top 40 “greenest” Italian listed companies in 2021
AND Circular project
The fashion industry has a considerable environmental and social impact, due also to individual behavior: it is estimated that each individual buys an average of 20 kilos of clothes per year and throws 4 away at the end of every season, after having worn the garments only 7 or 8 times.
With a view to addressing this issue and giving both clothes and people a second life, the social cooperative La Fraternità launched the circular project AND (which stands for “A new Day, un giorno nuovo”). The goal of the project is to “raise people’s awareness, giving consumers a chance to play an active part in reducing the environmental impact of the fashion industry”, Francesca Tonelli, Chief executive of La Fraternità explains.
Consistent with IGD’s social and environmental commitment, the company became a partner of the project, launching a circular economy project which is sponsored by the Municipality of Bologna and the region of Emilia Romagna, together with AND Circular: on 18 October 2021 three smart bins were installed at three IGD shopping centers (Centro Borgo, Centro Lame and CentroNova) where people can drop off the clothing they don’t wear anymore. The garments are then collected by the social cooperative “La Fraternità”, selected and sorted and, if the items can’t be reused, they are reworked by the inmates of Bologna’s Casa Circondariale or sold by the cooperative directly.
In addition to the smart bins, as part of the project the first AND Store, an innovative concept which brings different social realities together, was opened. The store, which was well received from the beginning with good sales, employs four people, including one at risk, and is the first store of this sort in an IGD shopping center.
We thought it was important to provide tangible support to a business idea which combines sustainability, quality and community, Daniele Cabuli, IGD Siiq’s Chief Operating Officer, stated.
Biosafety Trust Certification
IGD obtained “Biosafety Trust Certification” for its headquarters in Bologna and 7 Shopping Centers (Centrosarca, Puntadiferro, Katanè, Conè, ESP, Tiburtino, and Le Porte di Napoli) which validates the work done to foster health and safety, as well as prevent contagion from biological agents, in both the shopping centers and at IGD’s headquarters.
The certification was issued by RINA, the accrediting body which developed the first framework for the certification of management models used to prevent and minimize the spread of infections in people caused by biological agents. IGD, once again, confirms its commitment to the wellbeing, health and safety of all its employees, as well as the shopping center visitors.
For more information you can read the press release at the following link.
Awards
For the seventh year in a row, IGD received important recognition from the European Public Real Estate Association (EPRA), namely the EPRA sBPR Gold Award for its Corporate Sustainability Report. This prestigious award is given to the real estate companies that comply the most with EPRA’s Sustainability Best Practice Recommendations (sBPR) for sustainability reports. The EPRA Sustainability Awards 2021 were awarded after examining the corporate sustainability reports of 166 European real estate companies, members of EPRA, in order to verify the level of compliance with EPRA’s Best Practices Recommendations relative to consistency and transparency in the information provided.
For more information you can read the press release at the following link.
IGD was also ranked among the Top 40 “greenest” Italian listed companies in 2021 by Refinitiv, a financial data and infrastructure provider. Refinitiv developed a ranking of Italian listed companies with the smallest carbon footprint which was published in the newspaper MF-Milano Finanza in August 2021. The methodology used takes into account factors like emissions, waste, biodiversity, environmental management systems, product innovation, green revenues and the use of resources.
More and more investors are looking at ESG ratings when deciding which stocks to buy or to finance debt, even though these ratings can vary considerably based on the criteria used by the different agencies. We took a closer look at these issues by asking Francesco Soldi, IGD’s Head of Marketing and Corporate Social Responsibility, a few questions.
Since the last edition of Borsa Italiana’s Sustainability Week, IGD has made a few interesting discoveries about the growing interest of the financial markets in business related environmental and social issues.
More and more investors are looking at ESG ratings when deciding which stocks to buy or to finance debt, even though these ratings can vary considerably based on the criteria used by the different agencies.
We took a closer look at these issues by asking Francesco Soldi, IGD’s Head of Marketing and Corporate Social Responsibility, a few questions.
At the beginning of July, IGD participated in the fifth edition of the Sustainability Week organized by Borsa Italiana during which 62 Italian corporates had the opportunity to meet with 110 international asset management companies. What sort of interest did you see this year?
IGD has participated in Borsa Italiana’s event focused on sustainability since the first edition held in 2017. We have seen the investors interest in our company increase over time. If five years ago we had two meetings scheduled, in 2021 we had one-to-one meetings with five institutions, one of which, for example, manages the assets of 14 pension funds. Above and beyond the number of participants, there has been gradual shift also in the quality of the topics discussed during the meetings. At one time investors frequently used this forum to ask us a wide range of questions, while this time we spoke about specific environmental or social performances and looked at our short-, medium- and long-term policies.
Investors are more focused on sustainability, then. What topics were asked about the most?
I would say topics relating to our environmental impact were the most common. Let’s not forget that ours is a “brick and mortar” business, namely with large, physical assets. Many questions were also asked about social aspects like employee wellbeing and training, as well as relations with the local community.
Were there any questions about Covid-19?
The investors were very interested in understanding how we progressed along our Corporate Social Responsibility path during the pandemic. This gave us an opportunity to reiterate how we continued to implement our polices relative to everything that could not be postponed.
In addition to analyzing the performances relating to past policies, did you also talk about the future?
We indicated that we are working on the Sustainability Plan 2022-2024, which – as in the past – will be included in the Business Plan.
What else did you discover during the meetings with these investors?
We realized that many of these investors use the ESG ratings as part of an initial screening of which Companies to invest in. A few of them wanted to know the reasons for certain ratings that were assigned. It’s true that the agencies that issue the ratings use different criteria to assess a company’s ESG performance which can differ greatly. Even though the ratings are based on public information, the assessment processes used can result in the assignment of very different ratings for the same factor.
How many ESG ratings does IGD have to date?
The number of “unsolicited” ratings – namely the ones “not requested” by the Company – has increased very quickly over the last four years. We had 2 in 2018, 4 in 2019, then 6 in 2020 and, at the moment, we have 8.
To what do you attribute this great interest in IGD’s sustainability?
I believe we are benefitting from the fact that we have been working on a structured sustainability path since 2011 which has been developed over time based on a plan-do-check-act system and integrated with the planning of our core business already beginning in 2014.
If these ESG ratings are based on third party analysis of public information, is there anything IGD can do to ensure that the assessment process is effective and that the results are consistent?
I believe that the EU Taxonomy Regulation will help to develop a shared framework. We are also working on this on an international level by participating in EPRA’s and ECSP’s Sustainability Committee. However, I think that for now the Company will have to continue to provide the rating agencies with active support: on the one hand, therefore, we have worked to improve the clarity of our reporting and, on the other, we have established direct contacts with the agencies in order to ensure that the information we provide is understood correctly and that updated information is used when the assessments are made.
How do you use the ratings you receive?
In IGD the Sustainability division works together with Investor Relations to maintain an updated set of data which explains the ratings assigned. This not only helps us to understand areas in need of improvement, but also, in other instances, to fully appreciate the external validation of results which sometimes are the product of a lot of hard work.
In this edition our focus will be on the work IGD is doing to promote and spread sustainability best practices in Italy and abroad. During the first quarter of 2021 the Company was one of the first to sign the “Sustainability Manifesto” defined by the Consiglio Nazionale dei Centri Commerciali (CNCC) and participated in the first workshop sponsored by BPIE (Buildings Performance Institute Europe), in collaboration with ECSP (European Council of Shopping Places), focused on creating a vision shared by the players of the European retail real estate sector for a zero emissions future.
In this edition our focus will be on the work IGD is doing to promote and spread sustainability best practices in Italy and abroad. During the first quarter of 2021 the Company was one of the first to sign the “Sustainability Manifesto” defined by the Consiglio Nazionale dei Centri Commerciali (CNCC) and participated in the first workshop sponsored by BPIE (Buildings Performance Institute Europe), in collaboration with ECSP (European Council of Shopping Places), focused on creating a vision shared by the players of the European retail real estate sector for a zero emissions future.
IGD and the “Sustainability Manifesto” sponsored by the CNCC
During the meeting held on 26 March 2021, CNCC’s Executive Board approved the “Sustainability Manifesto”. This document is born out of the conviction that now, more than ever, business development must accommodate social and financial objectives, based on a model that promotes inclusive and sustainable collaboration across the board. More specifically, with the Manifesto the CNCC intends to confirm and promote its commitment to the Sustainable Development Goals – SDGs defined by the United Nations. The recipients of the document include both members of the CNCC and non-members (local and national institutions, investors/the market, shopping center customers, retail parks and outlets). The document was prepared by the “Environmental, Social & Governance (ESG)” Commission formed inside the CNCC, of which IGD is Chair, comprised of the different types of companies that are part of the association. IGD signed the document immediately, convinced that now is the time for the entire shopping center sector to get involved in these issues.
IGD’s participation in the international workshop organized by BPIE
In March 2021 IGD participated in a workshop sponsored by BPIE (Buildings Performance Institute Europe), in collaboration with ECSP (European Council of Shopping Places) entitled “Paris-proof Retail Real Estate. Creating a common vision towards climate neutral Retail Real Estate”. The workshop is the first step in a year-long project which aims to put the market players in touch with the European policy makers in order to define a shared path focused on accelerating the pivot toward carbon neutral property portfolios by 2050, consistent with the Paris Agreement. The project also focuses on the economic resources needed to invest in zero carbon buildings.
In addition to IGD, participants in the workshop included leading European retail real estate companies, who worked to define the sector’s vision relative to a few key questions such as: how to achieve a carbon neutral portfolio, what impact could it have on the income statement, which policies could help to simplify this transition.
The journey will continue for the entire year and by the end of 2021 will culminate in the co-creation of a road map to decarbonization.
We would like to present our 11th Sustainability Report referring to 2020, a difficult year for our sector. Starting from the month of February we suddenly found ourselves facing challenges which we could not have predicted when we defined our 2019-2021 Sustainability Plan. Once confronted with these challenges, we had two options: put our sustainability commitment to one side, given the then current circumstances or confirm it and strengthen it. We chose the second one, maintaining steadfast our commitments and confirming the process aimed at sustainability undertaken in 2011.
Dear Stakeholders,
We would like to present our 11th Sustainability Report referring to 2020, a difficult year for our sector. Starting from the month of February we suddenly found ourselves facing challenges which we could not have predicted when we defined our 2019-2021 Sustainability Plan. Once confronted with these challenges, we had two options: put our sustainability commitment to one side, given the then current circumstances or confirm it and strengthen it. We chose the second one, maintaining steadfast our commitments and confirming the process aimed at sustainability undertaken in 2011. We saw it, and we still do today, as a distinguishing feature of IGD, our approach so as to remain in the retail real estate market with a view to the long term. The pandemic convinced us even more how important it is for us to continue to give our contribution to ensure that the world is a place where focus on the environment is an element that cannot be put aside, where the health and safety of people are priorities and where compliance with laws is a steadfast pillar towards fairer social justice.
The pandemic also underlined the importance of innovation and it taught us that cooperation on all levels is necessary in order for us to surpass this phase. In short, it has been made clear to us how contemporary our strategy «Becoming Great» is today: we want to continue our work following a sustainable approach to growth which focuses on environmental issues (Green), on people (Responsible), in an ethical manner (Ethical), in attractive places (Attractive), together with our stakeholders (Together).
Having defined this, we asked ourselves how we could adapt the elements upon which our strategy is founded (material issues, sustainability risks and short, medium and long-term goals) to this current situation. First of all, we confirmed all our 12 material issues, with the addition of necessary greater focus on «health» matters, integrating our already existing «wellbeing and safety» issue. In doing so, we are confirming that this is an issue in which we believe it is appropriate to invest both resources and time, both in the present and the future.
We also reviewed our sustainability risks. We had already identified them in 2019, we had said then we would monitor them and, if necessary, update them. Because of Covid-19 we decided to include specific “pandemic risks”, especially in those most exposed areas: relations with the workforce, safety within the structures and the attractiveness of the same. Thanks to the KPIs that we introduced, we will assess over time the level of effectiveness of the actions taken to reduce each risk.
With the 2019 Sustainability Report, we reviewed our targets, establishing altogether 25 short, medium and long-term ones. In 2020 we took action in order to reach the short-term ones and to make headway with the medium to long-term ones. We decided to suspend or push back several of them, due to the decision made by IGD to go ahead in 2020 only with undeferrable investments and due to the impossibility of social gatherings within the Shopping Centres.
There is one target out of those we set (and reached) which we are proud to highlight: in line with our CSR process, in 2020 we decided to become a member of the United Nations’ Global Compact, the world’s most important initiative on the sustainability of organisations. By becoming a member, we are declaring that our strategies and operating activities are aligned with the universal principles on human rights, labour, the environment and the fight against corruption.
As required by Global Compact, we will report, starting from this Sustainability Report, on our annual progress to reach the goals set by the United Nations. Our commitment to ensure our reporting is in line with international best practices led us again in 2020 to satisfy the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD).
With regard to climate change, as shown in section «Green», we did not stop investing in energy efficiency in 2020. Indeed, altogether we invested 1.2 million euros to improve our structures, installing systems that are more and more environmentally sustainable.
Part of this investment was allocated to the continuation of relamping with led lighting systems, now installed in 19 Shopping Centres. To get an idea of the benefits that this brings in terms of energy efficiency, we have estimated that if we had not introduced this technology over the years, in 2020 our energy consumption would have increased by 6.6%.
We set ourselves the ambitious target of making our Shopping Centres «nearly zero emissions» by 2030: we are on the right track, thanks both to the decision, again confirmed in 2020, to use energy coming exclusively from renewable sources, and to that to install photovoltaic systems on the roofs or in the car parks of the Shopping Centres. We are pleased to have verified that following the installation of our eighth photovoltaic system, mounted on the car park in ESP Shopping Centre in Ravenna, once again in 2020 the percentage of electricity produced by solar energy increased (currently this represents 6% of the total energy consumed).
2020 was also the year in which we managed to reach our target of achieving ISO 14001 certification in 95% of the freehold Malls in Italy, completing the process we started in 2012; 3 other Key Assets were also BREEAM IN USE certified with an assessment level of «Very Good» (in addition to the 5 already certified in the previous years).
Consistent with our commitment to actively contribute to a transition towards “low carbon” economy, during the year we installed 19 EV charging stations in 10 Shopping Centres and we intend, by the end of 2021, to have a total of 37 of them in 20 structures. We were one of the first in Italy to be equipped with such an extensive network in our Shopping Centres and we are pleased to see that car drivers are using them more and more.
The way in which we conduct our business also involves focusing on people: for us this means acting in a «Responsible» manner both with regard to our employees and to the people that are present in our structures.
We continued this approach also in 2020: we guaranteed steady employment, we continued to invest in training and we confirmed our Corporate Welfare Plan for the fourth year, increasing the services offered. At the same time, we took action both to protect our co-workers during the pandemic as well as to continuously ensure safety in our Shopping Centres.
To do this, we invested a total of 1.3 million euros to implement effective measures to prevent the spreading of the virus both in the Italian Shopping Centres and in the Romanian ones. We are satisfied with the results brought about by these actions: no local outbreaks were detected (neither in our structures nor in any other Italian Shopping Centres) and visitors progressively started to return to our Malls once it became possible.
Once again in 2020 we confirmed how Ethics and Legality are two ineradicable factors in our approach to busines («Ethical»). We stated so in our Code of Ethics, which we updated during the year and this was reiterated by the results and recognitions we obtained throughout the year.
In 2018 our subsidiary Win Magazin was the first Romanian company to obtain UNI ISO 37001 certification, the international standard for anti-bribery management systems.
In 2020 also IGD in Italy obtained the same certification, a demonstration of its commitment to tackle and mitigate the risks related to corruption.
At the same time we obtained the second renewal of the Legality Rating, confirming the maximum score (3 stars) and we received two recognitions regarding corporate governance demonstrating that also in this field we are on the right track: we were one of the three best financial companies in the MID CAP segment in the Permanent Observatory on Corporate Governance promoted by The European House – Ambrosetti and our «governance risk» received the best score possible in the ISS (Institutional Shareholder Services) assessment.
Making our Shopping Centres «Attractive» also remains a primary commitment for us.
In 2020 the activities we engaged in were, on the one hand, to further update our retail offer by introducing 18 new brands in our Malls, and on the other, to constantly adapt our strategies by using all the tools and channels available to ensure that our Shopping Centres remained «Spaces to be lived in», despite the restrictions imposed by the pandemic.
2020 was also a year of innovation, as we defined our first Digital Plan. This was a further step in a process that had begun in the past and continued over the years as we constantly seized the growing opportunities offered by digital tools so as to increase contact with our visitors. With the aim of the Plan being to standardise the use of all the current digital tools, in 2020 we adapted the Shopping Centres’ websites and we defined a specific strategy for the management of social networks.
Handling this pandemic phase without the cooperation of you, our stakeholders, would have been even more difficult. Our approach is to listen and interpret your needs, to work «Together» to identify the best solutions for our business. During this past year we have greatly increased our customary commitment to converse with you: the over 2,000 moments of interaction carried out with our tenants or the two visitors’ surveys, in which over 6,000 people took part, bear witness to this.
The Covid emergency showed us that our Shopping Centres perform an important service in their local communities. This was demonstrated by the fact that even in a difficult year like 2020, we managed to engage in relations with 140 local associations and NPOs, who saw our centres as the place in which to achieve their goals.
In light of the actions carried out, we can now confirm that the decision to continue our sustainability process also in 2020, with all the necessary precautions, was without a doubt worthwhile.
Strengthened by this awareness, we are ready to face 2021, a year which is, on the one hand, uncertain in terms of the evolution of the pandemic, but on the other, also stimulating thanks to some new developments that could take place, first amongst which the «Green Deal» promoted by the European Union. We actively take part in the Sustainability Groups of the two European associations relevant to our sector, EPRA (European Public Real Estate Association) and the recently founded ECSP (European Council of Shopping Places), with the precise intention of analysing the proposals made by European legislation, assessing them and, if necessary and possible, proposing to the other members any modifications. At the same time, and with the same goals at national level, we actively take part (in the role of Chairman) in the ESG Commission promoted by the Consiglio Nazionale deiCentriCommerciali (National Association of Shopping Centres).
When 11 years ago we started along this path, it was then difficult to imagine that 6 rating agencies specialised in sustainability would have assessed us in the course of one year. Not only did this happen in 2020 but we also always recorded an improvement compared to the previous years.
For this reason we are confident about the future: we realise that sustainability vocabulary contains words that have by now entered into everyday use in organisations, companies and civil society. We are of course pleased about this, aware that there is still plenty to be done but we are ready to play our part.
In this edition we will talk about how the content of the Code of Conduct has been revised and updated in order to enhance its role as a living part of our corporate identity and inspire both those who work in IGD, as well as stakeholders who have relationships with the Company, to conduct themselves in accordance with the Code.
We will then try to understand the reasons why IGD’s financial reports received new EPRA Awards.
Lastly, a very important news item, which speaks to IGD’s commitment to sustainability: the decision to adhere to the United Nations’ Global Compact.
In this edition we will talk about:
how the content of the Code of Conduct has been revised and updated in order to enhance its role as a living part of our corporate identity and inspire both those who work in IGD, as well as stakeholders who have relationships with the Company, to conduct themselves in accordance with the Code.
We will then try to understand the reasons why IGD’s financial reports received new EPRA Awards.
Lastly, a very important news item, which speaks to IGD’s commitment to sustainability: the decision to adhere to the United Nations’ Global Compact.
IGD has a new Code of Conduct
IGD’s Board of Directors approved an updated and amended Code of Conduct. The Code has a new structure which makes it easier to use and understand. In this form, it becomes a truly active tool of social responsibility.
In 2006, when it was formed and listed on the stock exchange, IGD adopted a Code of Conduct. There have been a series of revisions over time – including the most important ones made in 2010- in order to reflect the changing business and regulatory environment.
It became necessary to incorporate new sources and points of reference by making in-depth structural changes to the document. The revision was shaped by the update of the parent company Coop Alleanza 3.0’s 2018 Code of Conduct, the ISO 37001 anti-bribery management certification obtained by IGD in 2020, the procedures dictated by the laws on privacy and whistleblowing. Three years ago, a new corporate welfare policy was also implemented. Of equal importance are the steps taken to obtain and maintain the Legality Rating. Last, but not least, in 2020 the Borsa Italiana updated the Corporate Governance Code for listed companies.
In March 2020, therefore, the Sustainability Committee, together with the Legal Affairs department, completed an analysis of Coop Alleanza 3.0’s Code of Conduct in order to better understand the changes made to the majority shareholder’s code. Subsequently, in July, the Sustainability Committee defined the areas to be worked on and in three months (namely in October) presented the new project to the operations division which revisited and validated it before submitting the plan to the Board of Directors for approval on 5 November.
The goal was to avoid overlapping procedures. The section dedicated to relationships with stakeholders was revisited and a new Map of Values was developed, introducing revised rules of conduct for IGD’s people and its stakeholders.
In the coming weeks IGD employees will be provided with training which will rekindle the memories of the Company’s basic values and make it possible to truly understand the Code of Conduct as a whole. A key shift: it is, in fact, through the behavior of people that corporate ethics take shape.
The new EPRA Awards
IGD received the EPRA BPR Gold Award for its 2019 Consolidated Annual Report for the third year in a row and the EPRA sBPR Gold Award for its 2019 Corporate Sustainability Report for the sixth consecutive year.
These prestigious prizes confirm the fact the IGD knew how to implement the recommendations defined by EPRA, the European association of real estate companies. These are not standards, however, which once complied with can be considered satisfied forever. More recently EPRA, for example, broadened the scope of the recommendations from the original focus on environmental performance and defined a new series of guidelines for all stakeholders based on variables that take into account both social performances and governance.
IGD’s commitment and willingness to compare itself with other European sector players is also confirmed by the renewal of Claudio Albertini’s appointment as a member of the EPRA’s Advisory Board for the next three years. IGD’s Chief Executive Officers is the only representative of the Italian real estate sector.
IGD will adhere to the Global Compact
IGD is ready to be one of the almost 16,000 organizations that have, up until now, signed the United Nations Global Compact, the world’s largest corporate sustainability initiative.
The Global Compact is a call to companies to align strategies and operations with universal principles on human rights, labor, the environment and anti-corruption, and take actions that advance societal goals.
Over time IGD, which undertook a structured sustainability path in 2011, has made the commitments needed to become the type of company that chooses to participate in the Global Compact. IGD’s Chief Executive Officer has, therefore, written and will send a letter approved by the Board of Directors to the secretary general of the United Nations in the next few weeks in order to inform him of the Company’s formal commitment to following the Ten Principles of the Global Compact, to work to support the Sustainable Development Goals, as well as report on the progress made in this regard every year.
In this issue we will talk about sustainable mobility, the certification program for our properties and the fact that IGD was recognized by EPRA for adhering to best practices relating to the key aspects identified by the Task Force on Climate-related Financial Disclosures. We will, lastly, tell you how the meetings went with investors at the Digital Italian Sustainability Week held at the end of June.
In this issue we will talk about:
sustainable mobility,
the certification program for our properties and the fact that IGD was recognized by EPRA for adhering to best practices relating to the key aspects identified by the Task Force on Climate-related Financial Disclosures,
we will tell you how the meetings went with investors at the Digital Italian Sustainability Week held at the end of June.
IGD provides sustainable mobility with concrete support
With IONITY, which inaugurates the first quick charging station at an Italian shopping center, Puntadiferro. takes a first step toward becoming an important point of reference for electric cars.
On 3 July the IONITY’s first high-power charging station was inaugurated in Forlì, at the Puntadiferro center. The joint venture of German car manufacturers has, therefore, chosen one of IGD’s important assets, found in a strategic position, to launch its presence in Italian shopping centers.
The new high-power charging station, which is supplied with 100% renewable electricity, services four 350kW stations at the same time. This is the seventh HPC charging station to be opened by IONITY in Italy.
The Puntadiferro center already had one EnerHub charging station. If we consider that shortly a third prestigious operator will be added, the Forlì shopping center is ready to become a real point of reference for those who drive electric cars in the area.
IGD continues with the implementation of its ambitious project which calls for the installation of 32 charging stations for electric cars in 18 shopping centers, including the Puntadiferro center which is already operative, by the end of 2020.
At the end of June 16 charging stations had been installed at eight IGD centers. The statistics compiled show a continuous increase in the use of all the charging stations.
The certification process, which ensures efficient environmental property management, continues as planned
Important milestones reached in the certification of IGD’s Italian portfolio. The process leading to carbon neutral by 2030 is clearly visible, with a “Nearly Zero Energy Building” portfolio in Italy.
With the last four UNI EN ISO 14001 certifications obtained in March 2020, IGD has a total of 24 certified shopping centers, in addition to its Bologna headquarters, which account for 95% of the total GLA: a goal which is included explicitly in the Sustainability Plan.
The process leading to BREEAM in Use certification of 3 key assets was also successfully completed in the first few months of 2020. Currently IGD’s network includes seven centers with this type of certification, in addition to the BREEAM certified CentroSarca in Milan. The long-term goal is to obtain BREEAM certification for 80% of the Italian portfolio by 2030.
EPRA recognizes IGD’s best practice with respect to key aspects of TCFD
The disclosures in IGD’s reports increasingly respond to investors’ new expectations for greater transparency when discussing the risks stemming from climate change.
On 30 June EPRA published a report entitled “Enhancing transparency with the TCFD” which aligns their Best Practice Recommendations with the TCFD guidelines. An integration which reflects the investors’ request that real estate company’s improve disclosure relative to the areas of risk and opportunity associated with climate change.
In this report, IGD, which beginning with the CSR 2019 has included TCFD reporting, is cited as adhering to European best practice with respect to two specific aspects viewed as relevant by the Task Force: risk management and the metrics used to measure environmental risk.
The interest of Italian investors in sustainability and the strategic choices made by IGD in this regard increases
On 30 June IGD participated in the Digital Italian Sustainability Week organized by Borsa Italiana and had virtual meetings with seven Italian analysts and investors, a number that exceeds the number of meetings IGD has had since it began participating in this type of event.
The investors’ questions were focused on Sustainability strategy. IGD had the opportunity to describe the 12 material topics that were updated after having listened to stakeholders and comparing these topics with the company’s priorities. A lot of time was dedicated to providing a better understanding of the risks that were identified for first time in the CSR 2019 report, along with the policies and control measures implemented. Lastly, the discussion also touched on the targets that IGD included in the new Plan. The time horizon for some of these is through 2030.
During what was a very concrete and formal discussion, it was also pointed out how, in a world revolutionized by Covid-19, social responsibility continues to be key with a new conquest: the knowledge that the ability to provide a safe environment inside the shopping center may become a new topic to explore and include permanently in the materiality matrix.
As always, new, interesting food for thought emerges from these meetings with investors which drive IGD to focus on new targets and rise to new challenges.
On 20 April IGD obtained UNI ISO 37001:2016 “Anti-bribery management system” certification. A significant result, consistent with the path undertaken to continuously strengthen the Company’s governance, which confirms the desire to run the Company’s business in the most transparent and correct way possible.
On 20 April IGD obtained UNI ISO 37001:2016 “Anti-bribery management system” certification. A significant result, consistent with the path undertaken to continuously strengthen the Company’s governance, which confirms the desire to run the Company’s business in the most transparent and correct way possible.
We spoke about the path leading to the certification with Carlo Barban, IGD’s Director of Administration, Legal and Corporate Affairs, who promoted and followed the entire process.
When did you decide to undertake this certification process?
IGD has always been sensitive to topics like business integrity and transparency. In Italy, where Law 231 has been in effect since 2001, there are already extensive norms and regulations governing the administrative liabilities of companies for crimes (including bribery and corruption) committed in their interest or benefit by top management.IGD quicklyadopted and implemented an organizational, management and control model capable of preventing commission of these crimes which is applicable to all Group companies (including foreign subsidiaries). In Romania, where no specific national legislation in this regard exists, the Group decided voluntarily to begin the pilot project to obtain ISO 37001 certification,which was successfully completed in early 2018, in order to further improve the Group’s standards while, at the same time, increasing international visibility. In light of this result we asked ourselves if it didn’t make sense to replicate the experience in Italy, as well, unifying the anti-corruption standards on a larger scale.
Was obtaining the certification for the Italian perimeter difficult?
To a certain extent it was clear that the process would be more complicated than in Romania;in Italy the Parent Company is a listed company and, consequently, before undertaking the project it needed to be approved by the Board of Directors and the Board committees. It was also subject to different degrees of complexity based on business operations and specific corporate procedures.In any case, the process was begun in August 2019.
Briefly, the implementation of the anti-bribery management system was broken down into different phases:
Preparation of the gap-analysis of the existing controls compared to the reference standard
Implementation of the corrections needed to align the management system with ISO 37001good practices
Implementation of the new operating system
Audit
Certification
Implementation of the new operating system began in December 2019.
So, when did the actual audit begin?
We started the pre-audit phase in January 2020 and the audit phase began after the meeting of IGD’s Board of Directors held subsequently on 27February, during which Compliance discussed the findings of the system evaluation. Then RINA Service Spa, an independent certifier accredited by the Accredia (a national accrediting entity for certifications and inspections appointed by the government)and the Italian leader in compliance certification, began assessing the structure and adequacy of IGD’s management system and, during a second phase, the concrete application within the Company’s different areas of operation.
What happens now that the first certification was obtained?
Basically, we continue: the management system is a dynamic tool and subject, potentially, to constant change which requires periodic monitoring (which will be formalized in annual supervisory audits) and any changes needed to improve and/or implement the system.
What are the advantages of having a ISO37001 certification?
Not a lot of companies have met this standard. This is, undoubtedly, a tool which allows us to distinguish ourselves from other shopping center management companies. More specifically, the ISO37001 certification strengthens our standing in the eyes of large retailers and international investors who feel they can trust a transparent partner with strong convictions about the need to prevent and thwart any and all forms of corruption.
What we are presenting today is our tenth Sustainability Report. This is a very important milestone for us, it means that we have been working for 10 years to make IGD increasingly sustainable under all aspects: economic, social and environmental.
Dear Stakeholders,
What we are presenting today is our tenth Sustainability Report. This is a very important milestone for us, it means that we have been working for 10 years to make IGD increasingly sustainable under all aspects: economic, social and environmental. The Company, compared to when we started sustainability reporting, has grown: greater capitalisation, with increased revenues and a higher number of employees. We have defined strategies which have enabled us to improve, over time, all our main sustainability performance indicators, because we believe that a company like ours which intends to be an important and long-lasting player in the retail real estate market, can only operate in a sustainable manner, or rather, one that is capable of producing over time added value for all its stakeholders, without taking short-lived shortcuts.
We believe we have carried out our work successfully, but we also see it as a starting point for what we intend to do in the future. For this reason, in this Sustainability Report we have placed great attention on highlighting our strategic approach and we have taken the opportunity to review our targets from a long-term point of view. Indeed, with this in mind, we have introduced a new section, called «Sustainability strategy».
With regard to this, in 2017 we launched the strategy «Becoming Great», which summarises the Company’s commitment to continuously grow in a manner that is «Green, Responsible, Ethical, Attractive, Together». There are three underlying elements: material issues, sustainability risks and future targets.
The definition of the material issues enables us to focus our attention on aspects that are really important both for us and our stakeholders, thus avoiding the use of resources (human and economic) on non-priority targets. We defined these material issues in 2017 and we analyse them every year to assess their accuracy: currently there are 12, for each of them we have defined the risks and established targets to be reached over the next few years. The definition process of the sustainability risks, carried out in 2019 and presented in this Report, arose from the awareness that the mapping of these (and the subsequent identification of the policies and actions related to them) would enable us to avoid or at least mitigate any negative impacts on corporate business and transform them into positive opportunities.
With regard to future targets, we have stated in this Report what we are doing in order to successfully complete those included in the 2019-2021 Strategic Plan, at the same time, however, we have decided to raise the bar by including targets for 2030. This is an important step for IGD: we want to publicly commit ourselves and actively contribute to a transition towards a “low carbon” economy in the cities where our Shopping Centres are situated.
Furthermore, we intend to continue our relations with you, our stakeholders, in an ethically correct manner and implement all the necessary safeguards so as to be ahead of, or at the very least, comply with the law, both with regards to the way we conduct our business and by positively influencing the context in which we operate. At local level, it is our intention to be not only a landmark for shopping and leisure time but also a generator of economic and social development, becoming known as a place for gatherings and one that satisfies local needs.
We define our targets in a transparent manner, in the same way that we transparently monitor (and will continue to do so) our performance, seeking to continuously adapt our way of reporting to satisfy new standards and requirements. For this reason, starting from this Report, we have decided, in line with the best European practices in our sector, to draw inspiration from and refer to the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD), the aim being to provide you, our stakeholders, with some useful information in order to assess the Company’s approach to climate change.
With regard to climate change, we have highlighted in section «Green» how total energy consumption decreased over the year by 7.1% and how, for the seventh year running, there was a reduction in GHG emissions intensity.
We have calculated that if the structural work and managements actions carried out by IGD over the last few years had not been implemented, our Shopping Centres would have emitted 7,900 tonnes of CO2 more into the atmosphere in comparison with what was actually produced in 2019 (compared to 2012).
These results are the outcome of multi-year planning, which between 2016 and 2019 led us to invest about 10 million euros (3.4 of which just in 2019) in energy efficiency.
We are following with great interest the debate at international level on Nearly Zero-Energy Building: this is one of our targets and we undertake to reach it (as far as is practically possible for us) by 2030 with regards to our Shopping Centres. We are happy to say we are on the right track: the electricity used in our Malls comes exclusively from renewable sources, we are continuing with the installation of photovoltaic panels (8 systems installed in 7 Shopping Centres up to now) and the replacement of traditional lighting with led lighting systems (change carried out in 19 Shopping Centres, 5 of which alone in 2019). When we decide to enhance a property by means of restyling work, we always do it in a sustainable manner: from 2014 to date, we have taken action on 8 Shopping Centres, focusing in particular on improving their energy efficiency also by utilising eco-sustainable materials.
Environmental certifications play an important role in this process: having 88% of our Italian portfolio UNI EN ISO 14001 certified and 5 of the 8 key assets already Breeam or Breeam in use certified (the certification of the other 3 will reach completion in 2020), is something that guarantees us an efficient method for the environmental management of our properties.
2019 also witnessed the continuation of two important projects: electric mobility and «Waste 2 Value» concerning circular economy. With regard to the former, we signed an agreement with a specialised company to install 32 EV charging stations in 18 of the Shopping Centres in our portfolio; 10 have already been installed, the rest will be so by the end of 2020. With regard to the latter, following the prototyping and testing phase, we have discovered how it is possible to produce a soil improver by using coffee grounds and orange peel coming from the restaurant/bar in one Shopping Centre. This project will continue in 2020 with the identification of the appropriate ways in which this product can be used by following a circular economy approach within the Shopping Centre itself.
Our commitment to act in a «Responsible» manner towards people continued in 2019. Our corporate workforce grew even more: at the end of 2019 we had 177 employees (counting both Italy and Romania), calling for the creation in IGD of a new role in order to cover specific skills regarding digital innovation. Furthermore, for the third year, the Corporate Welfare Portal was active and updated: 100% of our employees made use of it, bearing witness to the overall appreciation felt by all towards this initiative.
We orient our conduct, as we do that of our stakeholders, to comply with «Ethical» principles and those of legality. For this reason, we decided to voluntary undertake the process to obtain ISO 37001:2016 certification regarding anticorruption. Having completed in 2018 the process that led to the certification of our subsidiary Win Magazin (first company certified in Romania), we have now begun the adaptation of the procedures to obtain in 2020 the same result also in Italy. To reinforce our commitment towards responsible business practises and to bear witness to IGD’s commitment to implement, disseminate and promote the Ten Principles of the United Nations in the areas regarding human rights, labour, environmental sustainability and anticorruption, it is our intention in 2020 to become a member of Global Compact, the world’s most important initiative on these issues.
We also proceeded with our primary commitment, which is to constantly make our Shopping Centres «Attractive», increasing their status of «Spaces to be lived in», also by means of an important communication campaign which, on the basis of this concept, portrays the Shopping Centre as a place in which people have the possibility of making their dreams come true; from which the claim “I’m possible, the place without boundaries” arises. This campaign was carried out in 7 Shopping Centres and the outcome in terms of footfall and tenant sales was good. The portrayal of the Centres as «Spaces to be lived in» also continued by way of the organisation of events: we carried out 716, on average one every two weeks, free of charge, inclusive and exclusive, open to all, for a total cost for the Shopping Centres of €3.8 million.
We also intend to continue being attractive by means of the focus we place on constant innovation. The forms of innovation we are currently working on are: technological (with chatbots active in 3 Shopping Centres; social/environmental («Waste2Value» and «Social Borgo»); that regarding services (e-bike charging stations connected to photovoltaic system in Clodì Retail Park and Amazon Lockers in 21 Shopping Centres) and digital (with a new strategy to manage social networks and with focus on digital strategy in 2020).
We continue to carry out our business «Together» with our stakeholders. We engaged with all of them during the year and with several we began an extremely innovative process called «Social Borgo». We wanted to understand if it was possible to replicate inside a Shopping Centre the dynamics of a social street (social phenomenon which originated in Bologna and which is now widespread around many cities, not only Italian ones), by creating a participatory process capable of identifying the needs of a community and of providing responses from a social, cultural, recreational etc. point of view. We decided to launch this process in Borgo Shopping Centre, the long-standing Shopping Centre in Bologna. The project is currently underway and the first results are positive: the Shopping Centre is becoming established as a civic centre, a place for gatherings and participatory planning. The model will be tested in 2020.
To conclude, we are very pleased to observe how our commitment which began 10 years ago is continuing to produce good results. In reference to one of these, at international level, we are extremely proud to have received for the fifth time running the “EPRA sBPR Gold Award” for our Sustainability Report and to have obtained for the second time the “EPRA BPR Gold Award” also for our Consolidated Financial Statements.
We undertake to keep focusing on this issue, even more so in this day and age where sustainability is at the centre of a worldwide debate. For this reason, it is our intention to continue investing in it, mindful that the work carried out to date enables us to address this debate fully aware that many of the results have already been achieved (and that increasingly demanding targets await us in the coming years).
Energy consumption down as a result of effective property management policies.
Sustainable mobility: an innovative step forward at the shopping center in Chioggia.
Energy consumption down as a result of effective property management policies
Even though the path undertaken in 2013 has already led to the use exclusively of energy from renewable sources and allowed for significant improvement in the energy efficiency of IGD’s shopping centers, the most recent statistic shows a further reduction of 3.7% overall with a very large number of the properties showing improvement: an impressive 24 out of the 30 shopping centers managed by the Group.
This result, which is most certainly not attributable to chance, testifies to the efficacy of the steps taken by IGD consistently over time in several different areas.
A first source of savings can be found in the work done on the systems, above all by investing in solar panels. Energy costs have fallen by between 5 and 7% at the centers where these investments were made, with additional benefits in terms of lower emissions of greenhouse gases.
Another investment made in systems that had a noticeable impact was the substitution of lighting in 16 shopping centers with LED lighting which pollutes less and is more performing than traditional systems.
IGD has also been very active in monitoring electric consumption which made it possible, after analyzing the data gathered, to make the right decisions and take the most effective steps to optimize the lighting and climatizing systems based on different times of the day, as well as the temperature outside.
To date 235 active individual meters have been installed at the Group’s Italian properties, which make it possible to measure consumption in great detail and analyze the energy performance of individual areas, from parking to single floors of a shopping center. At the moment there are only three properties where installation of this extensive monitoring system has yet to be completed. Once installation is finished it will be possible to monitor all the individual divisional meters.
Sustainable mobility: an innovative step forward at the shopping center in Chioggia
Charging stations for electric bicycles, powered by solar energy, have been installed at the Clodì Shopping Center which will be fully operative by the end of the year.
This is a very innovative system which meets a real local need insofar as the use of e-bikes to reach the shopping center is very common in Chioggia.
Based on the project it will also be possible to manage the service, which is completely free of charge, by way of a specific app.
An increasingly more sustainable asset portfolio.
IGD’s concrete contribution to sustainable mobility
The work done to better communicate the progress made in sustainability
An increasingly more sustainable asset portfolio
Out of the shopping centers comprising IGD’s real estate portfolio in Italy, 20 have already obtained UNI EN ISO 14001 certification and 5 BREEAM (3 more will receive this type of certification by the beginning of 2020).
In the last few months three more shopping centers were ISO 14001 certified: Maremà in Grosseto, Città delle Stelle in Ascoli and Leonardo in Imola, meaning that 88% of IGD’s portfolio is now covered.
Similarly, two new BREEAM IN USE certifications were received: for centro ESP in Ravenna and Puntadiferro in Forlì.
These are important results, not only for the advantages in terms of more efficient operations, but also for the fact that certifications are increasingly being taken into account in property appraisals as a sign of quality and a guarantee for good performances in the long-term.
Wellbeing is a topic to which IGD is paying more attention: it’s important that shopping centers are livable and comfortable for visitors and people who work in them. This is why IGD is paying more attention to its center visitors, planning events that improve their stay inside the malls, introducing free water stations and bicycle racks.
In terms of “green” initiatives, in the last few months IGD has continued to install solar panels: as a result of the ones installed in the first half of 2019, at Katanè (Catania) and Gran Rondò (Crema), solar panels have now been installed at a total of 7 centers.
IGD’s concrete contribution to sustainable mobility
After having executed a series of operating and structural changes focused on increasing energy efficiency over the last few years, IGD is being to focus on the indirect impact (defined “Scope 3”) that the shopping center has on the environment.
For this reason the Group has defined a series of initiatives focused on electric mobility, in order to both reduce the footprint of the people who go to shopping center and provide visitors with a service. Now at the Clodì Retail Park in Chioggia there are solar powered charging stations for electric bicycles which are part of a broader plan to install charging stations for electric cars. As a result of the agreement signed with Enerhub, specialized in electric charging solutions, the first 10 charging stations were installed at 5 shopping centers in Emilia Romagna (Centro Nova and Centro Lame in Bologna, Puntadiferro in Forlì, Centro Leonardo in Imola and Le Maioliche in Faenza). The agreement calls for the installation of 22 more charging stations at 13 shopping centers throughout Italy.
The work done to better communicate the progress made in sustainability
The attention paid by institutional investors to sustainability is constantly growing and, increasingly, investment decisions are based on Environmental, Social and Governance (ESG) criteria.
Toward this end, in the last period IGD increased its interaction with independent third parties who analyze sustainability strategies and performances, providing specific ratings which testify to the interest in the CSR path undertaken by the company beginning in 2011.
On 2 July IGD also participated for the third time in the Italian Stock Exchange’s Sustainability Day held in Milan during which it had the opportunity to meet institutional investors who focus on topics related to social responsibility.
We learned more about these topics by speaking with both the Chairman of IGD’s Board of Directors, Elio Gasperoni, and Rossella Saoncella, who is Vice Chairman of the BoD, as well as Chairman of the Nominations and Compensation Committee.
During the Annual General Meeting held on 10 April 97.15% of the shareholders approved the 2019 Compensation Report: a result which testifies to the great level of consensus, including with respect to any changes introduced, underlying IGD’s policies.
We learned more about these topics by speaking with both the Chairman of IGD’s Board of Directors, Elio Gasperoni, and Rossella Saoncella, who is Vice Chairman of the BoD, as well as Chairman of the Nominations and Compensation Committee.
What are the objectives underlying IGD’s Compensation Policy?
E.G. The main goal is to structure the compensation of directors and executives with strategic responsibilities in such a way as to ensure that they are remunerated adequately for the activities they are called upon to carry out so that IGD can effectively attract, retain and motivate the professionals guiding and managing the Company’s success. IGD intends to compensate its senior management effectively through a balanced combination of fixed and variable remuneration. The variable compensation is, therefore, tied to measurable, predetermined targets that the Company has also included in its Business Plan.
What led you to revisit certain aspects of the prior Compensation Policy?
R.S. Firstly, when the Board of Directors was renewed on 1 June 2018, a Nominations and Compensation Committee comprised of new members was also formed. I am now in my 2nd term as a director of IGD and in my new role as Chairman of the Nominations and Compensation Committee I was able to put the different ideas that had matured over the past three years on the table, convinced that certain aspects needed to be revisited, particularly with regard to the percentage of the executive team’s variable compensation. Secondly, as a result of the new Business Plan approved by the BoD on 12 November 2018 it became necessary to reconsider the Compensation Policy in light of IGD’s new medium/long-term targets.
What are the biggest changes compared to the previous version?
R.S. First of all, the variable compensation of the Chief Operating Officer and the Managers with Strategic Responsibilities was restructured: on the one hand, the medium/long-term variable component was raised from 10% to 25%, while on the other hand the component tied to short-term results was reduced from 90% to 75%. In addition, again for the Chief Operating Officer and the Managers with Strategic Responsibilities, the maximum variable compensation payable was raised from 30% to 40% of the Gross Annual Salary. Lastly, the targets linked to the payment of the medium/long-term bonuses were redefined for the Chief Executive Officer, the Chief Operating Officer and the Managers with Strategic Responsibilities.
In what way was this last component changed?
R.S. The time horizon for the variable portion was extended to 2021: meaning a three-year period that is the same as the Business Plan. The two performance goals were set at, respectively, maintaining the Loan-to-Value below 45% and reaching a cumulative FFO of €258 million. We also provided for – and this is absolutely a first-time for IGD – the payment of an over-performance bonus of an additional 5% of the fixed compensation if the Loan-to-Value falls below 43%. The basic criteria, therefore, have not changed substantially: we, however, increased the variable component from 30 to 40% of the Gross Annual Salary and the biggest part of the increase is tied to long-term goals.
Was the remuneration of the Directors changed at all?
R.S. Only for the Chief Executive Officer for whom the maximum variable compensation payable is capped at 50% of the fixed compensation. In the new policy the variable component tied to the medium/long-term performance goals was increased and provides for an additional 5% of the fixed compensation for over-performance, namely if the LTV falls below 43%.
Did you use external consultants to define the new aspects of the Compensation Policy?
R.S. No, the entire project was carried out by the BoD as a team, beginning with the Nominations and Compensation Committee, which was joined by two more independent directors; Livia Salvini and Timothy Guy Michele Santini. In IGD’s BoD there is also a broad spectrum of expertise and experiences which provided us with very qualified input relative to the different aspects we assessed. While there are only 5 REITs in Italy, we did some benchmarking of the average market salaries in the real estate sector which led us to slightly increase the fixed component of a few strategic executives: despite this adjustment, the compensation of IGD’s senior management is still in the lower end of the market average. Once we completed our research and evaluations, the Committee’s proposals for the new Compensation Policy were discussed and approved during the BoD meeting held on 26 February 2019. The new Policy was then submitted to the shareholders for approval during the Annual General Meeting held on 10 April 2019.
What feedback did you receive from shareholders?
E.G. Very positive. Even though is not a binding resolution, the vote on the Compensation Policy provides an important signal. The proxy advisor ISS, whose recommendations are followed by many institutional investors, appreciated the changes made and suggested that investors vote in favor of the policy found in the first section of the Compensation Report. This year we, therefore, received a lot of favorable votes, namely 97.15% of the capital represented at the AGM. A result that we are entirely satisfied with.
And in the future?
E.G. The satisfaction with the changes introduced does not prevent us from making any other improvements deemed opportune to making IGD’s Compensation Policy even more effective.
R.S. It would be ideal, for example, to be able to offer variable compensation to other managers and key junior managers. We will move forward step by step, also because we are convinced that it’s not possible, nor would it be productive, to revolutionize the Company’s Compensation Plan in a day.
What feedback have you received from the management team?
E.G. The new Policy was clearly well received. In reality, I believe that we didn’t need to find new ways to further motivate this team which, over time, has already defined ambitious goals for itself independently. This is a group of people used to working successfully as a team as is shown by the fact that we have shared the long journey undertaken to get IGD’s size and operating efficiency where they are today.
R.S. I agree: it’s a management team that has amply proven its commitment to reaching the goals found in the various Business Plans executed over the last 10 years. Certainly the increase in the variable compensation, along with the portion linked to long-term goals and the three-year horizon found in the new Compensation Policy, further strengthen the tie between the Company and the key managers, while increasing the probability of retaining them.
BREEAM IN USE CERTIFICATION FOR ESP AND PUNTADIFERRO Make cities and human settlements inclusive, safe, resilient and sustainable. Companies must adopt production processes that take into account the protection of the cultural and natural heritage of the place in which they operate. IGD strives constantly to improve the environmental performances of its shopping centers, through […]
BREEAM IN USE CERTIFICATION FOR ESP AND PUNTADIFERRO
Make cities and human settlements inclusive, safe, resilient and sustainable.
Companies must adopt production processes that take into account the protection of the cultural and natural heritage of the place in which they operate.
IGD strives constantly to improve the environmental performances of its shopping centers, through continuous work on asset management and structural investments. In 2016 IGD embarked on the path leading to BREEAM (Building Research Establishment Environmental Assessment Method) certification, which takes into account the wellbeing of shopping center visitors. In March 2019 the Puntadiferro and ESP Shopping centers obtained BREEAM in use certification.
The Puntadiferro mall received a “very good” in asset performance and “good” in building management; the ESP mall extension received an “excellent” in asset performance and “good” in building management, while the original portion of the mall received a “very good” in asset performance and “good” in Building management.
After having obtained the last two certifications, the number of certified assets climbs to 5: Tiburtino (Rome), Katanè (CT), ESP (RA), Puntadiferro (FC), BREEAM In Use, and Centro Sarca (MI), which was BREEAM certified in 2016.
CHARGING STATIONS FOR ELECTRIC CARS TO BE INSTALLED IN 18 SHOPPING CENTERS
Make cities and human settlements inclusive, safe, resilient and sustainable.
Companies must promote green mobility both within and beyond the companies themselves.
The company’s commitment to sustainable management and reducing the environmental impact of its shopping centers is also expressed through incentivizing and supporting green mobility.
After installing charging stations for electric cars at Centro ESP in Ravenna and Maremà in Grosseto, IGD recently signed an agreement with Enerhub for the installation of 32 charging stations in 18 shopping centers.
Enerhub S.R.L., a NewCo held 60% by Consorzio Esperienza Energia s.c.r.l. and 40% by Alleanza Luce e Gas S.p.A, has developed a smart system for charging electric cars and, by signing this agreement, has committed to meeting the current and future needs for sophisticated and sustainable urban mobility.
The agreements calls for the installation of charging stations capable of delivering up to 44kW of power through two charging points, each with a maximum capacity of 22 kW. Work will begin in May-June 2019 at shopping centers in Emilia Romagna.
For IGD SIIQ electric mobility represents a significant opportunity to both contribute to the sustainable development of the cities in which it operates and provide another service in its centers to citizens who have chosen to go electric.
ECO-COMPACTOR INSTALLED AT PUNTADIFERRO
Ensure sustainable consumption and production patterns.
Companies must promote an increased use of recyclable and biodegradable materials in their production processes, invest in sustainable technologies that improve consumption and production patterns and participate in workshops and seminars to disseminate good practices on circular economy issues.
On 6 April 2019 an eco-compactor for plastic waste was inaugurated at the Puntadiferro Shopping Center in Forlì. The compactor has an automated system for the collection and compaction of bottles in PET plastic, a high quality plastic material for which a specific recycling system is useful in order to avoid mixing it with lower quality plastic materials.
IGD was an active part of this innovative project born and developed locally, in collaboration with the municipality of Forlì, Alea Ambiente (the municipal waste management company) and the company Green Focus, which installed the first eco-compactor for both IGD’s network of properties and the city of Forlì.
IGD, which has been involved in other circular economy and responsible consumption initiatives for years, decided to take part in the project well aware how important and necessary managing plastic waste is. For this reason IGD made a part of the shopping center’s main entrance, which attracts significant traffic flow, available for the installation of the collection system. The eco-compactor provides the shopping center with the possibility to provide incentives and benefits like discounts, coupons and other reward systems, that can be used in participating mall stores.
The service was obtained good results immediately, as shown by the great number of recycled bottles registered in the first week of operation (around 3 thousand) and the strong interest of the local media.
IGD worked to constantly grow from a standpoint of “Green, Responsible, Ethical, Attractive”, together (“Together”) with its stakeholders. A commitment that is highlighted in the “Becoming G.R.E.A.T.” claim, based on an acronym made from the initials of the five themes that are at the heart of the sustainable growth path. Green In 2018 […]
IGD worked to constantly grow from a standpoint of “Green, Responsible, Ethical, Attractive”, together (“Together”) with its stakeholders. A commitment that is highlighted in the “Becoming G.R.E.A.T.” claim, based on an acronym made from the initials of the five themes that are at the heart of the sustainable growth path.
Green
In 2018 IGD made important progress in the “green” sphere. Firstly, energy consumption was reduced by 1.1%, thanks to the project that calls for an increase in the use of solar panels. Two new installations, at Katanè and Gran Rondò, were completed in the year. A total of seven malls now have solar panels. The energy consumption at the centers using solar energy is 41% less per square meter than at the rest of the shopping centers.
The continuous reduction of greenhouse gas emissions also continued at IGD’s shopping centers and in the last three-year period the emissions of CO2 equivalents per square meter went from 55.2 tons in 2015 to a low of51.2 tons of CO2eq/m2 in 2018. An improvement that was made possible thanks to the inclusion of properties with high energy performances like Maremà, Puntadiferro and the ESP extension.
IGD uses solely energy from renewable sources in all its shopping centers which has a noticeably positive environmental impact: thanks to this choice, more than 20,000 tons of CO2 were not emitted which equates to yearly consumption of electricity of around 17,000 families.
Progress was also made on the certification of portfolio properties. BREEAM IN USE certification was obtained for two shopping centers, Katanè and Tiburtino, in the wake of the same certification received in 2016 by CentroSarca. This program is destined to continue as the goal is to obtain certification for Puntadiferro and ESP in 2019. In this way 5 of IGD’s most important portfolio assets would be BREEAM certified.
As a result of the Environmental System Management certification at ESP, Puntadiferro and Le Porte di Napoli, today 17 of IGD’s shopping centers are UNI EN ISO 14001 certified in accordance with the roll-out plan which in 2019 will involve three more centers: Maremà, Leonardo and Città delle Stelle.
Responsible
With regard to “responsible”, IGD’s employees showed their appreciation of the second year of the corporate welfare system which 99% took advantage of in 2018. Of note was also the not negligible amount of approximately €4 million that IGD invested over the two year period 2017-2018 in the earthquake proofing of its commercial assets and the €880 thousand used to install security bollards at 15 shopping centers.
Ethical
As for “ethical”, IGD’s three-star legality rating granted by the Italian Competition Authority (Autorità Garante della Concorrenza e del Mercato) in 2016 was confirmed and UNI ISO 37001 anticorruption certification was obtained in Romania. Furthermore, 4 out of the 11 members (or 36% of the total) of the new BoD, appointed during the Shareholders’ Meeting held on 1 June 2018, are women.
Attractive
IGD has made significant progress in its commitment to making its shopping centers even more “attractive”. If, on the one hand, contracts with 27 new brands or 15.1% of the total were signed, on the other €3.29 million were spent on the organization of 530 events. These events animated the centers by providing experiences not found elsewhere and touching on very timely topics like bullying and cyperbullying, including with the contribution of celebrities. The 2018 events also addressed social themes, like the second edition of Happy Hand in Tour which was presented in 19 shopping centers and the cancer prevention service provided in partnership with ANT which, in 2018, made it possible for 735 individuals to receive free checkups in 11 IGD shopping centers.
Together
As part of the “together” theme which includes our stakeholder engagement, a new visitor listening project was developed thanks to which we received interesting feedback from the questions answered by 4,556 individuals relating to how the structures are managed, as well as the innovations already introduced in the shopping centers and future wish lists.
IGD is aware of the impact that its operations have on local communities and ecosystems. In 2018 IGD employed an average of 637 individuals in each city of operation and 53% of the total suppliers were local. The local brands, which represent 40% of the brands in IGD’s centers, posted an average increase in sales of 2.6% like-for-like. In 2018 IGD welcomed 238 non-profit associations and entities and organized an impressive 26% of the cultural-sporting events in partnership with regional associations.
The new Business Plan 2019-2021 was built around a vison of the shopping center’s role and significance that is entirely different with respect to the past. In order to change the experience and social engagement of its portfolio, IGD will implement new marketing/sustainability policies and initiatives.
The new Business Plan 2019-2021 was built around a vison of the shopping center’s role and significance that is entirely different with respect to the past. In order to change the experience and social engagement of its portfolio, IGD will implement new marketing/sustainability policies and initiatives.
We spoke with Francesco Soldi, who will coordinate the various projects called for in the Plan.
We have seen great changes in shopping centers over time. What direction will the next transformation take?
The presence of the shopping center, and subsequent consolidation, dates back to the ‘70s and ‘80s. It had a single anchor, the hypermarket, in front of which the mall stores were located. During the ‘90s the mall offer grew, became more specialized and the shopping center malls were annexed to the hypermarket. In the new millennium, a range of personal services has gradually become part of the mall: it went from being simply a place you went to buy things to a meeting place, a place to enjoy a meal, go to the dentist, work out, as well as go shopping. The new model that we must adhere to takes two factors into account: firstly, the visitor has the most important role and needs to have real experiences while inside the shopping mall; secondly, the concept of the mall as a place for social interaction has to gradually be reinforced. This is what we mean when we refer to “Experience and Social Shopping Centers”
The idea is very clear. How will you make it a reality?
In order to create a center that is increasingly “experience oriented” we developed the “Experiences to be lived” project, which strives to transform the “I-want-to-buy” moment into a rich experience that surprises the visitor. We have already tested the project in two centers in 2018 and in 2019 it will be replicated in three more centers. We are also working to adapt the rationale and dynamics of the “social street”, a phenomenon born in Bologna in 2013 which today involves more than 100,000 people worldwide, to the shopping center. We are guided, in this sense, by the conviction that the shopping center needs to be even more rooted in the community in order to instill an even deeper relationship with the local community. We spoke before of the need to personalize the relationship with the visitor: toward this end, we will use Chat Bot technologies to provide welcome services and assistance in real time. We will, naturally, use a careful CRM strategy to create a unique and exclusive relationship will all the shopping center customers.
It will take a lot of work to implement this ambitious program …
We are aware of this, but our future depends on its success. Our plan of action does not, in any case, end here. We, in fact, want to enrich the customer journey, using Instagram in a structured way and providing opportunities for interactive communication through the use of multi-media totems in all of IGD’s centers. We also plan on putting charging stations for electric cars in an impressive 20 centers.
What will you do to create a link between online and offline purchases?
We already have lockers at two of our biggest centers, Centro Sarca in Milan and Tiburtino in Rome: we will most definitely expand the use of this service. In terms of marketing we will strive to establish more direct communication channels with the mall tenants, in order to systematically identify and provide effective, innovative omni-channel services.
Is entertainment part of this new concept?
We believe it has a key role and helps to transform a shopping center into a “destination” center: a place that the visitor goes to specifically because of the activities or the events. Toward this end, we will plan events focused on innovation, inclusiveness and uniqueness, including through co-marketing initiatives.
How will the mall’s offering change?
It will be clear to our visitors that they can continue doing the things that they have always done in a shopping center, but with offerings that best express the new trends. We will, in the mean time, expand the range of services provided by introducing different types of schools, doctors’ offices and veterinarian clinics . We will also have spaces dedicated to the sharing economy, for co-working or retail rentals. Lastly, we also would like place a few kiosks for the pick-up of purchases made online in the common areas: this is not being done solely to facilitate logistics…
And with regard specifically to the quality of the merchandise offered by mall retailers?
There will be several changes. As agreed with tenants, we will introduce outlet stores for those who are not looking for the latest models, but rather the best deals. As for the food courts, there will be new trendy ideas, like more vegan and organic menus. We will also be careful to provide a valid mix of the merchandise that will no longer be sold by the hypermarkets which will be increasingly more focused on fresh food and grocery.
How do you transform e-commerce from a threat to an opportunity?
We will pay great attention to this, also: we, in fact, would like to increase the number of tenants that were originally present solely online and would like to open up physical stores in our malls.
In terms of sustainability, which themes are part of this new vision of the shopping center?
There is a green theme that is shared by all our centers which relates to reducing consumption and waste, as well as promoting circular economy initiatives. As for the social aspect, we will be careful about the type of events planned as we want to continue to foster the sense of inclusiveness for which IGD has always been known; we will also focus our attention on measures which promote the “wellbeing” of the shopping center. Lastly, it is important for use to involve the Millennials in the definition of the shopping center guidelines for the next ten years: toward this end, we will use tools, like focus groups, to understand the views of people between the ages of 18 and 30.
In closing, just out of curiosity could you tell me how your pay-off “Spaces to be lived in” fits with the new Shopping Experience and Social Center concept?
We introduced the payoff “Spaces to be lived in” with our logo in 2011, already seven years ago, in order to ensure that out shopping center visitors were aware that not only would they be able to make purchases in our centers, but they would also find spaces dedicated to cultural experiences, entertainment, as well as ways to spend your leisure time. What can you say? We created a pay-off which, at that time, was very innovative. Now the payoff is even more significant and for this reason our marketing plan is key to the execution of our Business Plan.
Thank you sharing the new vision and your plans with us.
IGD part of the EPRA’s Sustainability Committee – The Esp Center in Ravenna receives an award – Waste2Value” Project reaches the prototyping phase – IGD’s approach to marketing is even more structured
IGD PART OF EPRA’S SUSTAINABILITY COMMITTEE
At the beginning of 2018 IGD – an Italian company – decided to be part of the Sustainability Committee of EPRA (European Public Real Estate Association) and participated in the Meeting held on 23 May in Brussels. This decision is consistent with the Company’s active participation in this important international association of which Claudio Albertini, IGD’s CEO, has been a part of since September 2017 as a member of the Advisory Board. It also reflects the desire to be part of the international debate on sustainability, a path begun in 2015 with participation in the International Council of Shopping Centre (ICSC)’s Sustainability Group.
Being part of this reality represents an important opportunity to meet with big European sector players and discuss both current, as well as future, sustainability policies. Important topics emerged from this first meeting, particularly pertinent to the integration of the Company’s new Sustainability Plan in the Business Plan.
Together with the other companies present, IGD also learned more about and discussed the choices made by the European Union with respect to sustainability, assessing their impact and defining a shared view to bring to the attention of the political institutions.
What is the main mission of EPRA’s Sustainability Committee?
EPRA’s Sustainability Committee strives to develop and cultivate the Best Practice Recommendations which help real state companies to achieve excellence in sustainability reporting.
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THE ESP CENTER IN RAVENNA RECEIVES AN AWARD
Centro ESP – Ravenna
The extension of the ESP Center in Ravenna received the “CNCC Design Award” for “Refurbishment”. This award seeks to reward the new projects and refurbishments of the centers affiliated with the Consiglio Nazionale dei Centri Commerciali (CNCC) which stand out for architectural quality, technical merits and sustainability.
With regard to the latter, the jury recognized IGD’s commitment to designing and building a property which could provide maximum environmental performance by using LED lighting, including a system for harvesting rainwater, along with a new bike path which connects with the city’s network of bike paths, 4 columns with charging stations for electric cars and solar panels on the roof of the new building.
The certification process underway also testifies to the commitment to energy efficiency: at the beginning of 2018 the Center received UNIENISO14001 certification and the process was begun to obtain Breeam In-Use certification by the beginning of 2019.
Significant results have been achieved: the energy consumption at the extension is about 80% lower than the original structure thanks to the energy saving measures implemented during construction which allow for significant savings in terms of heating, cooling and lighting.
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“WASTE2VALUE” PROJECT REACHES THE PROTOTYPING PHASE
In 2017 IGD had already launched an innovative project called “Waste2Value” which sought to create a circular economy model which facilitates the conversion of the food scraps and waste produced in a shopping center into “second products” which can be put back into circulation under the form of products or services. The project was developed in partnership with Coop Alleanza 3.0, CAMST and Impronta Etica.
After a prolonged phase involving different stakeholders, the project REPOD was selected. This project involves the production of fertilizer from orange peels and coffee grounds. As subsequent testing proved that REPOD works, the prototyping phase was begun.
You can find out more about what is going on with the “Waste2Value” project on the website http://wastetovalue.it/.
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IGD’S APPROACH TO MARKETING IS EVEN MORE STRUCTURED
Two years ago IGD’s Marketing Plans were changed significantly which resulted in the organization of events in each single shopping center. What was still missing in order to achieve a completely integrated approach was a control phase during which the validity of the events was assessed.
As of this year IGD has been checking every six months on the status of the marketing goals defined in January. Each shopping center is called upon to evaluate the events based on five distinct areas:
online communication
traditional communication
organization
appeal
quality of the event
In this way the operating performance of each single center can be improved by defining the degree of satisfaction with the results achieved and creating a history which can be useful when making decisions for the future. The single evaluations are analyzed by the Marketing Division which can then develop a general framework which guides the investments of the shopping centers toward the best practices.
PROJECT INNOVATION – Lockers take-off in IGD’s shopping centers As part of the project that IGD has been working on for two years which focuses on using the innovation made possible by technology to increase the appeal of our malls and meet the needs of our visitors, a new service is being launched which was […]
PROJECT INNOVATION – Lockers take-off in IGD’s shopping centers
As part of the project that IGD has been working on for two years which focuses on using the innovation made possible by technology to increase the appeal of our malls and meet the needs of our visitors, a new service is being launched which was developed in partnership with Poste Italiane. In April work was, in fact, completed on the introduction of two lockers inside Centro Sarca in Milan and Tiburtino Shopping Center in Rome.
What is a locker?
It’s an automated kiosk with a touch screen terminal, a bar code reader, and a mini printer which make it possible to pick-up orders made online, as well as ship any returns and pre-stamped packages.
This is a new opportunity for customers who will be able to make purchases on the websites of retailers who have adhered to the service and pick the merchandise up inside the two shopping centers that are open at least 12 hours a day.
The two lockers installed represent Poste Italiane’s first test inside retail structures and testify to IGD’s desire to guarantee that its shopping center visitors will have increasingly rich shopping experiences, including through the use of a multichannel approach.
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CERTIFICATIONS – IGD’s portfolio is increasingly more qualified
IGD is committed to ensuring that visitors have a comfortable experience in environmental sustainable structures. The different certifications, therefore, provide important confirmation as to the validity of the work done in terms of asset management.
In the past few weeks IGD’s property portfolio has obtained two important environmental certifications: in March the Katanè center in Catania and at the beginning of May the Tiburtino Shopping Centre in Rome both received di BREEAM In-Use certification with a rating of “Very Good” for Asset Performance and “Good” for Building Management.
This is part of a journey begun in 2016 with the BREEAM certification of Centro Sarca in Milan, obtained post-restyling, which IGD decided to continue by beginning the BREEAM In-Use certification process for 4 of its key assets. Now that Katanè and Tiburtino have been certified, in 2018 the program will be completed with evaluations of the ESP center in Ravenna and the Puntadiferro center in Forlì.
In April 2018 IGD also obtained UNIENISO14001 environmental certification for three of its shopping centers: ESP, Puntadiferro and Le Porte di Napoli. To date 20 shopping centers or 74% of IGD’s entire portfolio have been certified. The roll-out begun in 2012 will be completed by 2020. The goal is to obtain certification for the remaining seven shopping centers, including the four assets acquired from ECP on 18 April.
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LEGALITY – The certification of Win Magazin confirms IGD’s commitment to preventing corruption
Winmarkt Ploiesti
In April the Romanian subsidiary Win Magazin SA received UNI ISO 37001 certification: an objective that was achieved on time, following the assessment carried out by the company RINA, which testifies to the IGD Group’s commitment to transparent operations, free of any form of undue influence, including in the areas deemed the most vulnerable to potential compromises in business integrity.
What is the UNI ISO 37001 standard?
It is the only standard recognized worldwide that certifies how a company’s way of doing business helps to prevent and fight corruption. The UNI ISO 37001 standard specifies the measures and controls that an organization needs to adopt in order to monitor its business and increase the ability to prevent corruption.
This is a significant result: Win Magazin is, in fact, the first Romanian company to obtain this certification. The result is, however, fully consistent with the sustainability policies of IGD which, in 2016, received a three-star Legality Rating from the Italian Competition Authority (Autorità Garante della Concorrenza e del Mercato or AGCM) which is the highest score possible.
The 2017 Corporate Sustainability Report marks a turning point in the path undertaken by IGD in 2011. Firstly, because of the quality of the information provided which, as a result of compliance with Global Reporting Initiative standards, was certified for the first time by an independent firm: PwC. Secondly, for the 13 new material issues […]
The 2017 Corporate Sustainability Report marks a turning point in the path undertaken by IGD in 2011.
Firstly, because of the quality of the information provided which, as a result of compliance with Global Reporting Initiative standards, was certified for the first time by an independent firm: PwC.
Secondly, for the 13 new material issues which were singled out by looking at what was relevant for IGD and what was the most important for the stakeholders. The new priorities were grouped together under five main themes – Green, Responsible, Ethical, Attractive, Together – which forms the acronym GREAT. Becoming GREAT, namely becoming bigger and better, is the red thread uniting all the sustainability policies and initiatives.
Thirdly, the 2017 CSR contains a substantial step forward: it introduces the steps that IGD will take to reach some of the sustainable development goals defined by the United Nations for the millennium. More in detail, IGD selected 10 of the 17 goals set in the 2030 Agenda for Sustainable Development: those involving working to change the planet, protect the environment, establish economic prosperity, as well as social wellbeing.
The important results achieved in 2017, fruit of the steps take to implement the Sustainability Plan, are also included in the new report. The most important and tangible results are shown below, grouped together by theme.
GREEN
Energy solely from renewable sources used at all portfolio properties, avoiding CO2 emissions by more than 20 thousand tons (equal to the annual electricity consumption of 16,600 families)
Solar panels installed at two more shopping centers, for a total of five centers
Thanks to reduced energy consumption retailers saved more than €1.5 million in the last five years
A total of 14 shopping centers were UNI EN ISO 14001 certified at year-end
Started activities to obtain “Breeam in Use” certification for Katanè and Tiburtino
A total of 13 shopping centers had LED lighting at year-end
Started “Waste2value”, a circular economy project in a shopping center
RESPONSIBLE
5% of the personnel has a permanent contract
99% of the employees in Italy benefitted from the new corporate welfare system
3 hours of training was provided, on average, to each employee in Italy
3 hours of training was provided, on average, to each employee in Romania
ETHICAL
32 sustainability protocols were signed in Romania, bringing the total to 293
3 star Legality Rating confirmed in Italy
31% of the BoD is comprised of the least represented gender
ATTRACTIVE
More than €3 million was invested in shopping center events
Social Return on Investment at the Puntadiferro center in Forlì: each euro invested generated €2.75 in social wellbeing, 70% of which benefitted the shopping center retailers
Digital interactive kiosks installed in 100% of the malls
As a result of turnover, new brands were introduced 40% of the time resulting in 27 new brands in the malls
TOGETHER
5,880 visitors interviewed during the satisfaction surveys
14,650 employed in owned centers (637 jobs provided, on average, by IGD in the cities where it is present)
306 non-profit associations and entities housed in the shopping centers
42%: local brands as a percentage of the total number of retailers
5%: increase in the like-for-like revenue of local brands
105 meetings with banking institutions
116 meetings with institutional investors, of which 19 for the first time
Awards and new challenges Once again IGD receives the EPRA sBPR Gold Award and begins the assurance process for its 2017 Corportae Sustainability Report IGD’s commitment to constantly increasing the transparency and comparability of its sustainability program made it possible for the Company to receive this prestigious international recognition dedicated to quality sustainability reporting. For […]
Awards and new challenges
Once again IGD receives the EPRA sBPR Gold Award and begins the assurance process for its 2017 Corportae Sustainability Report
IGD’s commitment to constantly increasing the transparency and comparability of its sustainability program made it possible for the Company to receive this prestigious international recognition dedicated to quality sustainability reporting. For the third year in a row, EPRA (European Public Real Estate Association) gave IGD’s Corporate Sustainability Report the highest award possible, the sBPR (sustainability Best Practice Recommendations) Gold Award.
The fact that the Company amply satisfies the Association’s recommendations when preparing its Corporate Sustainability Report means that investors can find complete disclosure about the metrics that are important to them and compare them with other listed European companies who adhere to the same standards.
The Gold prize was awarded because of the degree to which IGD complied with three precise criteria:
maximum adherence to EPRA’s sustainability Best Practice Recommendations
total score higher than 85%
disclosure of at least 12 of the performance indicators called for in the EPRA standards.
EPRA will ask member companies to increase the breadth of the disclosures made relative to sustainability in the third edition of the sBPR guidelines, which will include indicators relating to Social themes and Governance, in addition to the Environmental indicators already found in the second edition of the guidelines. In 2018, therefore, scores for EPRA sBPR Awards will be revised in order to include the new recommended social and governance standards. IGD is working to include these new standards in its report.
In the meantime, IGD has a new goal for 2017: the one to submit its Corporate Sustainability Report to a third party, PWC, for independent assurance. For IGD, who is already fully compliant with the GRI (Global Reporting Initiative) standards, this means providing its stakeholders with more guarantees as to the correct methods used to prepare the report: from the selection of the topics to focus on, to the validity of the processes used to gather and prepare data.
Like the two prior versions, the 2017 Corporate Sustainability Report will also be approved by the Board of Directors at the same time as the Annual Report.
Since 2015 targets for sustainability have been included in IGD’s Business Plan. In 2018 the period covered under the current Plan will come to an end: next year sustainability will be an integral part of the planning process, beginning with the definition of the Plan’s targets.
Innovation at the core of long term performances
Innovation at IGD’s shopping centers: new events involving virtual reality and a complete network of totems to interact with visitors
IGD is proposing a traveling exhibition in its centers, namely an interactive show which recreates the stories and settings of Jules Verne’s books.
The project will involve eight different theme stations, one for each book written by the French writer presented as part of the show. At the animated and interactive stations visitors can live the emotions of the adventures and travel stories told by Verne in first person. Learning workshops dedicated to schools and live storytelling complete the experience.
Mostra di Jules Verne al Centro Piave, Venezia
In order to immerse the visitor in the amazing world of Verne’s novels, in one station IGD has set up a virtual reality system. Once visitors have entered the transparent 12 m2 station and put on headphones and 3D glasses, for 4 minutes they can experience the emotion of being inside the world described by Verne. In the shopping centers where the exhibition has already taken place, the interest generated confirmed the validity of the new proposal with long lines on the weekends of young and old eager to emerge themselves in Verne’s adventures: an perfect example of how time can be spent constructively and having a good time inside a shopping center which goes beyond shopping.
Once again with a view to embracing the most innovative ideas to improve the visitor’s experience, IGD completed the installation of interactive totems in all the shopping centers managed in Italy.
The totem provides information specific to each shopping center and highlights the retailers’ offers through images, videos and posters: in three minutes the visitor can get an overview of what is going on at the center. By way of the totem visitors can also participate in contests and promotions sponsored by the different brands.
The advantages of communicating through the totem are not limited to the elimination of paper flyers: the totem is the new way to interact directly with visitors; a way of gathering priceless feedback, easily and quickly.
The innovative circular economy Waste-2-Value project continues
After the two hackathons, in which a number of university students and Master’s candidates participated (see the article in the last newsletter), a few ideas emerged about how to apply the circular project and eliminate waste generated by the activities carried out in the Nova Shopping Center, in Villanova di Castenaso (near Bologna). These proposals are now being looked at by the initiative’s partners: IGD, Coop Alleanza 3.0, CAMST and Impronta Etica. At the same time, an information campaign is underway designed to increase the awareness of shopping center visitors about how to reuse waste.
In light of the above, the event held on 28 October Centro Nova at seems particularly relevant. Visitors were involved in a workshop which focused specifically on topics relating to circular economies which was followed by a flash mob and a quiz game open to all.
The proposed project which is found to be the winner will then be used in a prototype event inside CentroNova.
“Happy Hand in Tour” is back and all of IGD’s shopping centers will, once again, be involved in the 2017-2018 edition – Waste2Value: IGD’s role in an innovative circular economy project
“Happy Hand in Tour” is back and all of IGD’s shopping centers will, once again, be involved in the 2017-2018 edition
The new edition of “Happy Hand in Tour”, an initiative during which individuals with and without disabilities participate together in different artistic experiences and sports held inside shopping centers, has started.
The traveling show, now in its second edition, began again on 10 June at centro Puntadiferro in Forlì. After making stops in 24 IGD shopping centers in 11 Italian regions, the tour will come to a close in the first quarter of 2018.
The great success of the 2015-2016 edition, which 500 volunteers and 200 sporting, cultural and musical groups contributed to, led IGD, the event’s promoter, to repeat the event in its shopping centers, an ideal place to bring the various population groups closer to a reality that you can understand only through experience: Happy Hand in Tour demonstrates, in fact, that sports and art can be a great source of enjoyment for both the participants, with different degrees of ability, and the audience.
The number and importance of the initiative’s partners is growing: in addition to FISH (Federazione Italiana per il Superamento dell’Handicap – the Italian Federation for Overcoming Physical Challenges), which is also promoting the event this time with the support of IGD and WTKG (Willy The King Group), 2017 event partners will also include UISP (Unione Italiana Sport per tutti – Italian Union Sports for All) and CSI (Centro Sportivo Italiano). The event, which was presented during a press conference held in Rome on 10 May, is sponsored by CIP (Comitato Italiano Paralimpico – the Italian Special Olympics Committee).
Waste-2-Value: IGD’s role in an innovative circular economy project
While the concept of circular economics is gaining ground in Europe thanks to different initiatives focusing on environmental sustainability, IGD has decided to apply the concept to its own business and is launching an innovative project for shopping centers: provide a new way of using the waste produced in centers by putting it back into circulation as part of productive and regenerated life cycles.
IGD has always promoted the disposal and recycling of waste in its shopping centers by way of well organized and differentiated waste collection management. Once it became apparent, however, that the waste produced by food consumption is steadily increasing, the Company started to look for ways to minimize the impact of this waste by giving new life to food scraps like (for example) coffee grounds and orange peels.
The project, which calls for the participation and involvement of the various stakeholders to different degrees, referred to as “Waste-2-Value” was kicked off in June and will end in the first quarter of 2018. Impronta Etica is the coordinator, while IGD, along with Coop Alleanza 3.0 and CAMST – La Ristorazione Italiana are acting as the initiative’s promotors. The operational management was entrusted to Future Food Institute, a non-profit organization focused on food and innovation which will manage the two hackathons called for in the program, training of the staff and the digital communication through the creation of a dedicated website which is almost ready to go live. A Hackathon is a marathon of creativity and innovation during which experts from various sectors challenge other groups in a contest. It’s a method of working which makes it possible to gather and develop innovative ideas by working from the bottom up and to network.
The project will be launched first in a pilot center, Centronova in Bologna, easily monitored because of its location and where all three partners (IGD, Coop and CAMST) are present.
Waste-2-Value possesses, therefore, several clear strong points: an innovative premise, the involvement of three partners who carry weight in the world of retail and restaurants and, lastly, the ability to conceive new projects through participation. The choice to promote the initiative through two hackathons, instead of turning to a start-up, is key to the scope of the project itself.
The winner of the first hackathon, which took place in June and involved undergraduate and graduate students, was the project “RePOD, let’s protect your plants” focused on reusing coffee grounds and orange peels taken from inside the shopping centers to make 100% biodegradable, mini-capsules to be used as fertilizer for the plants found in the bars and restaurants where the waste was gathered. The second hackathon, which took place in July, ended only recently.
The first results that emerge from the experience at Centronova will help to shape specific events slotted to take place in the last quarter of 2017 which the 3 partners will open to staff members, as well as shareholders. In October a public event designed to raise awareness will also be held in the mall of Centronova, along with a web based initiative.
The program is structured so that an overall winner of the project will be selected by year-end and a project prototype will be developed in the first quarter of 2018.
The project was presented during SMAU-R2B which was held in Bologna on 8-9 June 2017 as an innovative agro-food sector initiative. “Waste 2 Value” received the SMAU R2B prize for innovation which SMAU uses to reward innovative excellence in Italy.
As of 3 April 2017 the new portal developed by IGD as part of its Corporate Welfare Plan, which allows employees to access a vast range of benefits and services, is online. Together with Daniele Cabuli, IGD’s Chief Operating Officer and Director of Human Resources, let’s find out more about this topic. Mr. Cabuli, what […]
As of 3 April 2017 the new portal developed by IGD as part of its Corporate Welfare Plan, which allows employees to access a vast range of benefits and services, is online.
Together with Daniele Cabuli, IGD’s Chief Operating Officer and Director of Human Resources, let’s find out more about this topic.
Mr. Cabuli, what objectives guided you in the development of the new Corporate Welfare Plan for employees?
The goal of creating a more integrated and organic corporate welfare structure has been part of our 2015-2018 Sustainability Plan since the beginning. We used the results of the work environment survey conducted in March 2015 to understand what the employees’ priorities were in this sense; in the meantime a new regulatory framework provided clear rules for these initiatives, including from a tax standpoint: we then sprang into action and kicked off the new project.
Out of the range of possible interventions, what does IGD’s welfare plan focus on specifically?
We decided to work on a variety of areas, on the one hand because no specific needs in one given area had emerged from the work environment survey and, on the other, we wanted to take into account the age, gender and geographic distribution of IGD’s workforce. We wanted to, in fact, provide instruments that would prove to be useful and relevant to the company’s entire population: from those with families, to those who are single, from those working at the corporate headquarters in Bologna – the largest group comprised of 65 people – as well as the other 58 individuals who work in small groups in one of the 11 Italian regions where our Group is present. It’s not surprising that it took a year and a half to get ready for the official launch of the plan on 3 April 2017.
What were the crucial phases leading up to the launch of the new welfare system?
The first phase, during which the focus was on the benefits and services that IGD already had, helped us to understand that, in reality, we could already count on a number of instruments, as well as a series of incentives and subsidies that had been available for some time. A few of these are rooted in the Positive Actions Protocol that we borrowed from Coop Adriatica when the Company was formed; this protocol was then incorporated into the Collective Employment Agreement which was last renewed in 2013. We, therefore, mapped the existing options and included them in the Portal dedicated to welfare along with the new initiatives and services being made available. The structure and the content are set up in such a way as to make each employee aware of everything the company is making available. The different services can be accessed quickly and easily, while the yearly sum made available by IGD to all those with indefinite contracts and who are not executives can be used as best seen fit.
In what way did the Stability Law 2016 (law 208/2015) contribute to the development of your Plan?
The Stability Law 2016 is the first in Italy to govern what is welfare and tax exemptions in order to encourage businesses to assume direct responsibility for things that were initially managed directly by the government. More in detail, five areas subject to welfare were defined in 208/2015: education and training, recreation, welfare services, health care, and worship. In these specific areas corporate welfare is incentivized by allowing employers to give employees tax exempt goods and services. Thanks to these regulations and the changes made subsequently by the relative authorities, we now have a clearly defined regulatory framework, including with respect to the instruments that we can use to manage corporate welfare. I’m referring specifically to two flexible tax exempt instruments: vouchers used specifically for services offered to employees, and refunds which are given to the employee’s family members to cover educational costs or assistance for the elderly or those who are not self-sufficient.
What were the first reactions to the new welfare plan in IGD?
The plan was very well received, also in light of the attractive sum of €500 made available to each employee each year. The Portal makes it possible for the plan’s administrators to monitor continuously the instruments that are used the most: in the future, therefore, we will be able to enrich or, at any rate, change the services offered in the areas for which our people express the greatest interest.
Dear Stakeholders, We are pleased to present IGD Group’s seventh Sustainability Report, approved for the first time by the Board of Directors together with its Financial Statements. This step bears witness to the Board’s deep commitment to the ever greater integration between economic-financial and social-environmental rationale. At the same time, it means that all its […]
Dear Stakeholders,
We are pleased to present IGD Group’s seventh Sustainability Report, approved for the first time by the Board of Directors together with its Financial Statements. This step bears witness to the Board’s deep commitment to the ever greater integration between economic-financial and social-environmental rationale. At the same time, it means that all its Stakeholders can, in one go, have access to documentation reporting from all angles on IGD’s performance for the year just ended, an approach that represents the first step towards a possible future integration of the two documents.
The year in question, 2016, was the best financial year in IGD’s history with regard to economic-financial results. Indeed, the year closed with a Group net profit which exceeded 68 million euros, an increase of almost 50% compared to 2015, but most of all with a recurring net income (FFO) which, with an increase close to 19%, reached 53.9 million euros, bearing witness to IGD’s ability to generate cash flow over time. Furthermore, for the first time, the market value of our real estate portfolio reached almost 2.2 billion euros, due first and foremost to the acquisitions and new openings carried out.
These results are perfectly in line with the 2018 forecasts in the Business Plan, which was updated in 2016. IGD, therefore, continues to be the leading Italian company in the ownership and management of Shopping Centres and to follow a path of sustainable growth. We said we wanted to do this by making the most of our leverage in commercial, financial and asset management activities. Sustainability, integrated in business, is for us an across-the-board issue running through these areas. Two years ago we defined what the material issues were, we included them in business planning and we report on them every year.
There are four issues upon which our commitment continues to be based: innovation, social relations, environment and legality.
Innovation, for us, means to offer our Shopping Centre visitors the best environment possible so that their shopping experience is in line with their needs and expectations.
With this in mind, we continuously work on three areas: the adaptation of our structures, a tenant and merchandising mix that is continuously evolving and strong focus on innovative solutions offered in the Malls and on a multichannel approach.
Centro Città delle Stelle – Ascoli Piceno
With regard to the structures, during the year we worked hard to open Maremà Shopping Centre in Grosseto, an asset of the latest generation, innovative from an architectural point of view and at the forefront with regard to the decisions made so as to reduce its environmental impact. We also began work on the interior remodelling of Città delle Stelle Shopping Centre in Ascoli, the aim being to increase its attractiveness by introducing, first of all, an international tenant. Work will continue in this Centre in 2017 with the creation of a new internal square – connected to the existing Mall – resulting from a reduction in the hypermarket surface. We have seen that the visitors appreciate innovation. The best results in terms of tenant sales and footfalls in 2016 were recorded in the new openings or in the Shopping Centres which in the previous few years had undergone important restyling or refurbishment work. For us, this is important confirmation that we are on the right track regarding our latest Business Plan.
The adaptation of the merchandising and tenant mix, instead, continued with the structured research and selection of new brands to be introduced into the Shopping Malls. This work was carried out both on a national level (by participating in the first Mapic Italy) and on an international level (with the events promoted by the Consiglio Nazionale dei Centri Commerciali – National Association of Shopping Centres – in London and in Cannes). The strategic objective remains that of increasing the retail offer in those categories least affected by the development of online sales (especially restaurants/bars and services). We are satisfied with the results obtained: 26 new brands opened in our structures and Maremà Shopping Centre was inaugurated with an occupancy rate close to 100%.
With regard to the solutions offered, we are moving more and more towards an “O2O” (Online to Offline) approach. To this effect, in 2016 we started work on two projects: “Click & Collect” and a new strategy for managing social networks. “Click & Collect”, the first of its kind in an Italian Shopping Centre, is a pilot project in ESP Shopping Centre in Ravenna: by following a multichannel approach we have given the visitors the possibility to reserve online, on the Shopping Centre’s website, the exclusive products or services (or those on very special offer) made available by the Mall’s tenants, and which will then be collected directly in the shops of the Mall itself. The second project is the organisation of a common Facebook strategy to be shared by all the IGD Centres, in order to increase the possibility of visitor engagement. At the end of the first year, the figures tell us that we are able to communicate with a larger range of customers interested in taking part in the Shopping Centre’s activities.
Furthermore, in order to make the time spent in the Mall as enjoyable, safe and relaxing as possible, we are introducing new services for visitors, like smartphone and tablet chargers and a trolley parking service with the supervision of trolleys after shopping has been done, in addition to free Wi-Fi which has been available for several years now.
Indeed, it was precisely on the issue of the evolution of Shopping Centres and innovation that we organised an internal seminar which involved the Board of Directors and the top management of IGD’s majority shareholders.
Happy Hand in tour
The social role of the Shopping Centre was reaffirmed also on this occasion and once again confirmed by the customer and event satisfaction surveys carried out in our structures: the 74 million visitors which entered our Shopping Centres in 2016 asked for both shopping opportunities and social gathering possibilities. Our payoff, “Spaces to be lived in”, therefore, is just as pertinent as ever, and encompasses an event with a strong impact like “Happy Hand in Tour”, an event based on inclusion where able-bodied individuals and those with disabilities confront one another in sports challenges or they share an artistic experience together. This event was held in all the IGD Shopping Centres and it involved 200 associations, with a final SROI which we calculated as being positive: Every €1 invested in the project produced a result in terms of social wellbeing equal to €1.61.
Social relations for us, is also focus being placed on our employees’ wellbeing: for this reason, in 2016, we approved IGD’s first corporate Welfare Plan, which will systematise the features already in existence in the company and integrate them with the new opportunities offered by the last two years’ altered legislative framework. The aim is to also have a positive impact on the internal atmosphere and on the ability of the employees to work in the best way possible.
We are also well aware that our structures produce numerous environmental impacts. For this reason, over the last 5 years, we have implemented an energy consumption reduction process which is achieving good results. Since 2011 till now we have reduced overall electricity consumption by 13%, resulting in almost 3,200 tonnes of CO2 (equivalent to the electricity consumption of 2,200 families in one year) not being emitted into the atmosphere. This is thanks both to investments already described in our Business Plan (10 million euros by the end of 2018) and to improvements in facility management. With regard to this, the advantages that we are obtaining from UNI EN ISO14001 environmental certification are significant: in accordance with the roll out plan that we set ourselves in 2013, 90% of our Shopping Centres in our Italian portfolio will have been certified by the end of 2018.
Centro Sarca – Milano
Furthermore, 2016 was an important year because we obtained BREEAM certification for Sarca Shopping Centre, following the restyling work carried out. This certification represents one of the most important and recognised international standards for the environmental sustainability of buildings and it is characterised by the particular focus that is placed on the overall improvement in wellbeing of those that spend time there. This Centre, which is also ISO14001 certified, is the first in Italy to have obtained both certifications. Thanks also to this commitment to reduce its environmental impact, Sarca Shopping Centre has been selected by a panel of judges, made up of qualified operators in the sector from all over the world, as one of the finalists for the “MAPIC Awards” in the “Best Redeveloped Shopping Centre” category, alongside three other Centres situated in Austria, Estonia and China.
As far as renewable energy is concerned, we are working on two fronts: the photovoltaic system and energy supply sources. With regard to the former, in 2016 we signed an agreement with a leading operator in this sector to supply energy to our Shopping Centres by means of photovoltaic systems. These systems will be installed in 2017 in 3 Shopping Centres (in addition to those already up and running in the last two Centres inaugurated, Clodì in Chioggia and Maremà in Grosseto). With regard to the latter, we resolved that, starting from 2017, electricity supply to all the Shopping Centres will come from renewable energy sources, ahead of the targets set by the National Energy Strategy, by the European Union with its “Climate-Energy Package” and by the UN’s 2030 Agenda for Sustainable Development, bringing us in line with the best practices of important international groups.
We also achieved an important result regarding legality in 2016, by obtaining the Legality Rating from the Antitrust Authority with three stars, the maximum score possible. This recognition rewards IGD’s commitment to abide by the highest ethical/social and governance standards, not only by complying with the laws and regulations in its everyday operations, but also by promoting compliance with the law among its stakeholders.
To conclude, we are delighted to notice an increasing interest, both on a national and international level, towards our sustainability practices. We are pleased, first of all, because it is interesting for us to have an active role in discussions on ESG issues, both on a European level (for example by actively participating in the ICSC’s “European Sustainability Group” as the sole Italian company) and on a national one (by participating as speakers in conferences or workshops). Furthermore, it is a great satisfaction for us to see our commitment being acknowledged: in 2016 we were awarded for the second year running the “EPRA sBPR Gold Award” for our Sustainability Report (and the “EPRA BPR Silver Award” for our Consolidated Financial Statements) and we were finalists for the Oscar di Bilancio in the Small and Medium sized Enterprises category; in addition, financial analysts are increasingly taking into consideration ESG issues as elements of evaluation of the Group and investors contact us following any improvements we obtain in the CDP and GRESB questionnaires.
We are, therefore, aware that there is still a lot of work left to be done, but we are equally convinced that the process we started 7 years ago, was and is the right choice for IGD’s medium-long term sustainability.
Make cities and human settlements inclusive, safe, resilient and sustainable.
Ensure sustainable consumption and production patterns.
At the beginning of 2018 IGD – an Italian company – decided to be part of the Sustainability Committee of EPRA (European Public Real Estate Association) and participated in the Meeting held on 23 May in Brussels. This decision is consistent with the Company’s active participation in this important international association of which Claudio Albertini, IGD’s CEO, has been a part of since September 2017 as a member of the Advisory Board. It also reflects the desire to be part of the international debate on sustainability, a path begun in 2015 with participation in the International Council of Shopping Centre (ICSC)’s Sustainability Group.
a circular economy model which facilitates the conversion of the food scraps and waste produced in a shopping center into “second products” which can be put back into circulation under the form of products or services. The project was developed in partnership with Coop Alleanza 3.0, CAMST and Impronta Etica.
As part of the project that IGD has been working on for two years which focuses on using the innovation made possible by technology to increase the appeal of our malls and meet the needs of our visitors, a new service is being launched which was developed in partnership with Poste Italiane. In April work was, in fact, completed on the introduction of two lockers inside Centro Sarca in Milan and Tiburtino Shopping Center in Rome.
“Happy Hand in Tour” is back and all of IGD’s shopping centers will, once again, be involved in the 2017-2018 edition
Waste-2-Value: IGD’s role in an innovative circular economy project 
