Introduction

Helical recognises that our business activities impact on the environment and the wider communities in which we operate. As our business involves working with joint ventures partners and outsourcing partners, our direct impacts as a business are relatively small. However, we are aware of the influence we can exert through the implementation of responsible environmental and social practices via our partners, contractors and suppliers.

An endorsement of Helical’s commitment to managing environment and social impacts is our continued listing in the FTSE4Good Index. The FTSE4Good Index measures the performance of companies that meet globally recognised corporate responsibility standards and facilitates investment in those companies. Maintaining listed status on this Index remains a key priority for Helical, and informs our evolving approach to Corporate Responsibility.

Managing Corporate Responsibility

In 2009 we revised and updated our environmental management system, which has been in place since 2003 and the updated environmental management system, available on the company website, has been embedded within the operations for Helical through the course of 2010-11. Key elements of the system include:

• ‘Environment’ and ‘Corporate Responsibility’ policies which set out Helical’s high-level commitment across a number of impact areas.
• Annual (and rolling) performance targets to enable us to focus our efforts throughout the year on measurable, yet achievable performance goals. Improved environmental performance disclosure was also a key piece of investor feedback. In the year to March 2011 we have reported on energy and water consumption at our large managed multi-let assets and head office, which will now form the baseline for improvement targets going forward for 2011-12.
• Key Performance Indicators (KPIs) to help us monitor progress towards these targets and to ensure that we are able to report in line with investor disclosure requirements, notably FTSE4Good.
• A checklist to assist us in applying minimum sustainability requirements across our development activities. In collaboration with our consultants, we developed a sustainability project management checklist to ensure that sustainability issues are incorporated into all decisions throughout the development lifecycle.
• Effective use of internal audit and review through quarterly meetings of key Helical personnel, their external corporate responsibility advisors and principal managing agents to ensure effective delivery of the objectives and targets.

The management system we have developed has been designed specifically to reflect the flexibility of Helical’s business model. It also reflects the key role that our partners play in delivering enhanced sustainability outcomes in all our business ventures, be they large-scale developments such as the ongoing Stockport Gateway project, or in the management of individual multi-let assets such as at Shepherds Building or Battersea Studios.

Review of progress in the year to 31st March 2011

We manage our environmental and social impacts because there are business benefits in doing so. These benefits include increased ability to secure planning consent, improved marketability of assets to prospective tenants, reduced operating costs of assets, mitigating the risk of future legislation and regulation, and enhanced corporate reputation.

Below we outline our progress in relation to the each of our Corporate Responsibility impact areas.

Environment

Our high-level corporate commitments to environmental issues is outlined in the Group’s Environmental Policy which can be found on the Group website. The Policy details our commitments across a range of impact areas and our development and property management activities. In 2009-10, Helical set itself 18 targets to guide its Corporate Responsibility programme over the following 12 months. These targets address a range of impacts arising from our development and property management activities, including resource use and waste production, pollution, biodiversity, tenant engagement, flood risk and sustainable design and construction. A full list of these targets can be found on this website.

The performance against the key targets in the year to March 2011 is summarised below:

• At our Head office at Farm St, we comfortably achieved our targets of a 5% reduction in water use and energy. This reflects an increased efficiency and internal awareness of how we use and manage our offices.
• At our managed multi-let properties, we continue to improve energy and water efficiency through the implementation of low and no cost measures. The specific target for 2010-11 was to define the baseline against which 5% improvement in efficiencies could be achieved. 61 Southwark St showed a reduction in use of gas and water and an increase in use in electricity but given it was not fully tenanted throughout the year to March 2011 it demonstrates the difficulties of assessing year on year comparisons for managed multi-let properties. Within the other properties assessed, performance was variable but generally reflected the level of occupancy.
• One key target for 2010-11, was to proactively engage with our tenants to encourage improvements in efficiency of use of the buildings. A tenants’ engagement poster has been designed for use within each of the principal managed assets and will be displayed in public areas to help achieve this aim.
• We continue to offer recycling facilities at all our managed assets. At Battersea, for instance, the provision of recycling facilities for tenants ensured that on average 25% of the waste generated was recycled. At Shepherds Building, following engagement with the tenants, a number have taken up their own recycling contracts thereby being in direct control of the management of their waste. As a result the waste being disposed to landfill has reduced by approximately 30%. Similarly, proactive engagement with tenants at the Hub has increased the proportion of waste being recycled to approximately 40%.

In addition, the company is required to comply with the Carbon Reduction Commitment and during 2010-11 has registered for the scheme and undertaken its obligations to date.

Employees

As at 31st March 2011, in the UK, we employed a team of 26 people, 38% of whom are women. We continue to enforce our equal opportunities, harassment and sexual discrimination policies. We also continue to monitor compliance with our whistle blowing policy. There have been no incidents to report against this policy to date.

High levels of staff retention remain a key feature of our business. Consequently, we retain a highly skilled and experienced team. The table below shows a breakdown of our UK staff by length of service:

Our staff retention levels not only reflect competitive remuneration and benefits packages but also our commitment to enhancing the professional and personal skills of our team.

During 2010-11 we provided an average of 9.33 hours of training per employee, including funding for one staff member to complete a Master’s degree in Real Estate. As in previous years, we continue to evaluate training needs in line with business objectives.

Communities

Helical takes a strong interest in community issues. Community engagement is an on-going concern throughout the development process, from planning until development completion and operation.

The following examples demonstrate how community engagement has benefited the communities that we have worked with in the year to March 2011:

• We have made a number of in-kind contributions through our Clyde Shopping Centre in Clydebank alongside our joint venture partner Prime Commercial Properties. The Shopping Centre had a week of fundraising events on the week leading up to Comic Relief with ‘Funky Hair Day’, ‘Dress Down Day’, ‘Guess the Birthday’ and a Glasgow to London cycle ride involving all staff, stores and the general public to raise cash for Comic Relief. Along with Rymans, Comic Relief pen sales raised £9,500 in the centre. Other initiatives include facilitating public collections for charities such as Guide Dogs for the Blind, the Rotary Club, Marie Curie Daffodil Appeal, Nazareth House and Yorkhill Children’s Foundation.
• At our Newmarket shopping centre we jointly sponsored ‘Horse about Newmarket’, a community art event, featuring life size acrylic horses, which are creatively designed and painted by local artists, companies and schools. Once completed, the equine works of art will be displayed to the general public at various locations throughout the town. Each horse will have a plaque with the artist and sponsor names. The horses will be displayed from July until autumn, and then they will be auctioned. All profits will be shared between Racing Welfare and St Nicholas Hospice. We allowed a number of the horses to be stored and decorated within the centre. We have also facilitated charitable collections for the RSPB.
• Idlewells Shopping Centre, Sutton-in-Ashfield has converted a long-term void unit into an Art Gallery for the local Sutton Centre Community College. They are using it for the exhibition of art work created by their students, and as a base for members of their staff to promote the services offered by the college to the local community. A grand opening was organised, to which the local media were invited. A competition was launched among the student population to suggest a name for the gallery, with the winning name decided as ‘S.C.C.Cribble’ – a play on the college’s initials. Other initiatives include facilitating events for the Ashplorers’ RSPB Wildlife Explorer group and the Ashfield Fair Share Trust.

We continue to make corporate donations to charity. We contributed £12,987 to charitable causes in the year to March 2011, including donations to King Sturge Charitable Trust, Land Aid and the sponsorship of an Under 13 football team.

Health & Safety

Helical’s Health & Safety policy aims to develop a corporate culture that is committed to the prevention of injuries and ill health to its employees or others that may be affected by its activities. The Board of Directors and senior staff are responsible for implementing this policy and ensure that health and safety considerations are always given priority in planning and in day-to-day activities. In 2009, we updated our Health & Safety Policy to reflect the latest legislative and regulatory developments and there have been no reportable incidents within the portfolio during 2010-11.

All employees are expected to co-operate with the Company to achieve the objectives of this policy and must ensure that their own work, so far as is reasonably practicable, is carried out without risk to themselves or others. The Company is committed to providing relevant information and necessary ongoing training to employees in respect of risks to health and safety, which may arise out of their activities or at their workplace. Our Health & Safety policy can be found on this website.

Suppliers

Fair treatment of suppliers remains a key priority for Helical, particularly in challenging market conditions where smaller suppliers in particular may rely on our payments for balanced cash flow. The company’s policy is to settle all agreed liabilities within the terms established with suppliers. During the year to March 2011, our average payment period to suppliers was 14 days.