Annex 2: GRI Content Index for ‘In accordance’ - Core

GRI G4 - Core Vesteda

Indicator

Description

Reference

General Standard Disclosure

Strategy and Analysis

G4-1

Statement from the most senior decision-maker

Foreword Managing Board

Organisational Profile

G4-3

Name of the organisation

Profile Vesteda

G4-4

Primary brands, products, and services

Profile Vesteda
Key portfolio characteristics

G4-5

Location of the organisation's headquarters

Gustav Mahlerlaan 50 A-B, 1070 AR Amsterdam

G4-6

Number of countries where the organisation operates

Vesteda operates exclusively in the Netherlands.

G4-7

Nature of ownership and legal form

Governance and risk management - Legal structure

G4-8

Markets served

Vesteda operates exclusively in the Netherlands.
Key portfolio characteristics - Portfolio distribution

G4-9

Scale of the organisation

Key Developments 2016
Profile Vesteda - Key milestone dates in the life of the fund

G4-10

Organisational profile - composition of workforce

Workforce
 
Information on:
- employment contract/permanent/self-employed
- by region
- by supervised workers
- signifcant variations in employment numbers
is not deemed relevant for Vesteda, since Vesteda exclusively operates in the Netherlands.

G4-11

Percentage of employees covered by collective bargaining agreements

The percentage of total employees covered by collective bargaining agreements was 91% at year-end 2016

G4-12

Describe the organisation's supply chain

About this report - Value chain

G4-13

Significant changes during the reporting period regarding the organisation's size, structure, ownership, or its supply chain

Profile Vesteda - Key milestone dates in the life of the fund
Key Developments 2016

G4-14

Precautionary approach or principle

Governance and risk management - Risk Management
Corporate Sustainability and Social Responsibility - Environmental - Improve sustainable performance

G4-15

Externally developed economic, environmental and social charters

MSCI: Management report - Portfolio Strategy
INREV Guidelines: About this report - Financial and non-financial information
IVBN: Governance and risk management - Ethics and Integrity
GRESB: Corporate Sustainability and Social Responsibility - Strategic project: GRESB

G4-16

List memberships of associations

Participant in the sustainability taskforce of the Association of Dutch Institutional Property Investors in the Netherlands (IVBN), participant in the Dutch Green Building Council (DGBC), member of the National Renovation Platform (NRP) and a Founding partner of the Green Business Club Zuidas (GBC-Z).

Identified Material Aspects and Boundaries

G4-17

All entities included in the organisation's consolidated financial statements or equivalent documents

Governance and risk management
Notes to the consolidated financial statements - 2: Basis of preparation
All entities included in the financial statements are also in scope for the rest of the report.

G4-18

Process for defining the report content and the Aspect Boundaries

About this Report
Notes to the consolidated financial statements - 2: Basis of preparation

G4-19

Material Aspects identified in the process for defining report content

About this Report

G4-20

Aspect Boundary within the organisation

About this report

G4-21

Aspect Boundary outside the organisation

About this report

G4-22

Effect of any restatements and the reasons for such restatements

Vesteda Residential Fund FGR financial overviews in accordance with INREV valuations principles - Notes to the INREV financial statements

G4-23

Significant changes from previous reporting periods in the Scope and Aspect Boundaries.

About this report
In 2016, the materiality analysis was newly performed. As a consequence the scope and aspect boundaries are updated to align with the new material topics.

Stakeholder Engagement

G4-24

List of stakeholder groups engaged by the organisation

About this report - Content report

G4-25

Basis for identification and selection of stakeholders

About this report - Content report

G4-26

Organisation's approach to stakeholder engagement

About this report - Dialogue with stakeholders

G4-27

Key topics and concerns that have been raised per stakeholder group

About this report - Dialogue with stakeholders

Report Profile

G4-28

Reporting period for information provided

January - December 2016

G4-29

Date of most recent previous report

The previous annual report (2015) was published on 6 April 2016

G4-30

Reporting cycle

Annually

G4-31

Contact point for questions regarding the report or its contents

For additional information or questions about this report you can contact our Investor Relations Officer Mirjam Witteman.
E-mail: m.witteman@vesteda.com

G4-32

The 'in accordance' option the organisation has chosen and GRI-table

GRI G4 Core
Assurance report of the independent auditor

G4-33

Organisation's policy and practice with external assurance

About this report
Assurance report of the independent auditor

Governance

G4-34

Governance structure of the organisation

Governance and risk management

Ethics and Integrity

G4-56

Organisation’s values, principles, standards and norms of behaviour such as codes of conduct and codes of ethics

Governance and risk management - Ethics and Integrity

Specific standard disclosures: material indicators which Vesteda reports in line with GRI

Tenant satisfaction (G4 aspect: Product & service labelling)

DMA

(a) State why the aspect is material and describe its impact. (b) Describe how the organisation deals with the material aspect and its impact. (c) Evaluation of the management approach.

Satisfied tenants are very important to us. After all, they are our clients. A house is a basic need and we want to provide our tenants with a safe house and good service. Our tenants provide us with monthly cash flow, which we use to guarantee our liquidity. It is therefore very important that tenants are satisfied with the houses we provide and our service.

Our target is a tenant satisfaction score of at least 7. Because tenant satisfaction is so important we conduct twice-yearly image surveys. The Portfolio Management department is responsible for this. You will find the outcome of the tenant satisfaction survey and the service survey in the section Management report - Tenant survey. We use the findings of these surveys for a process of continuous improvement in our service levels.

PR5

Results of surveys measuring customer satisfaction

Management report - Tenant survey

Sector supplement PR5

Report who the organisation’s customers are (such as occupants and visitors)

About this report - Value chain

Economic performance (G4 aspect: Economic performance)

DMA

(a) State why the aspect is material and describe its impact. (b) Describe how the organisation deals with the material aspect and its impact. (c) Evaluation of the management approach.

Economic performance is very relevant to our participants. Vesteda is a core residential fund with a low-risk character. We aim to offer our participants a stable distribution and real long-term value growth. The Managing Board is responsible for the organisation’s economic performance and the Supervisory Committee Board supervises the fund. Part of the individual remuneration of members of the Managing Board depends on the company’s economic performance. Please also refer to our Governance and risk management chapter.

EC1 (including sector supplement)

Direct economic value generated and distributed

Management Report - Notes to the results
Vesteda Residential Fund FGR financial statements

Business integrity (G4 aspect: Anti-corruption)

DMA

(a) State why the aspect is material and describe its impact. (b) Describe how the organisation deals with the material aspect and its impact. (c) Evaluation of the management approach.

Business integrity is closely linked to our reputation, given that acting with integrity also protects our reputation and guarantees safe investments. To safeguard our integrity, we have our own integrity policy. We strive to guarantee our integrity on all fronts. For instance, all new participants have to undergo an integrity test, employees have to abide by our code of conduct, we have a whistle blower scheme and we comply with the Law on the prevention of money laundering and terrorist fnancing (Wwft).

The goal of our integrity policy is to prevent either Vesteda or any of our employees getting involved in incidents, unlawful acts and legal violations that might damage the trust in the organisation or the financial markets and as a consequence could lead to reputation damage. The Integrity Officer is responsible for safeguarding and the implementation of our integrity policy.

The Integrity Officer firstly draws up the policy and any changes to said policy for approval by the senior management. The Integrity Officer ensures the correct implementation of the approved policy and reports on this each quarter. The senior management is partly responsible for the correct implementation of and compliance with the policy Business Integrity.

SO3

Total number and percentage of operations assessed for risks related to corruption and the significant risks identified

Governance and risk management - Ethics and Integrity
All our employees affirm the code of conduct annually. The code of conduct is comprised of a set of procedures and measures to reduce the risk in processes related to conflict of interest situations, to avoid fraud, or to avoid improper social behaviour. We report quantitatively on this material topic under GRI indicator SO4 and SO5.

SO4

Communication and training on anti-corruption policies and the significant risk identified

Governance and risk management - Ethics and Integrity
We ask all our employees to affirm the code of conduct annually. In addition, we organise an annual awareness event to draw attention to integrity.

SO5

Confirmed incidents of corruption and actions taken

Governance and risk management - Ethics and Integrity
No significant incidents of corruption have been confirmed. Therefore it was not deemed necessary to take any actions.

Sustainability in the supply chain (G4 aspect: Supplier Environmental Assessment, Investment & Supplier Assessment for Impacts on Society)

DMA

(a) State why the aspect is material and describe its impact. (b) Describe how the organisation deals with the material aspect and its impact. (c) Evaluation of the management approach.

Sustainability is an integral part of our organisation and we aim to improve our performance year by year. Because a large part of our impact lays outside of our organisation, for example at our partners and tenants, we believe it is also necessary to take steps in our supply chain. As of 2016, we started asking our largest suppliers and a number of other preferred suppliers to sign the 'sustainability declaration suppliers'. Significant suppliers are asked to sign the IVBN duurzaamheidsverklaring leveranciers. This sustainability declaration covers environmental, social and ethical topics. We are in constant dialogue with our non-significant suppliers. If the consultations do not lead to a satisfactory outcome, Vesteda may decide to terminate the cooperation.

EN32

Percentage of new suppliers that were screened using environmental criteria

Corporate Sustainability and Social Responsibility - Sustainability in the chain
We started measuring the signed supplier sustainability declarations in 2016. In the years to come, we will continue to report the percentage of significant suppliers that have signed the declaration instead of merely reporting the percentage of new suppliers that were screened. We believe it to be far more valuable to provide stakeholders with insight about the entire population of significant suppliers instead of only new significant suppliers.

HR10

Percentage of new suppliers that were screened using human rights criteria

SO9

Percentage of new suppliers that were screened using criteria for impacts on society

Green certification & Sustainable construction and maintenance (G4 aspect: Products and services)

DMA

(a) State why the aspect is material and describe its impact. (b) Describe how the organisation deals with the material aspect and its impact. (c) Evaluation of the management approach.

We use sustainable maintenance and renovation to improve the living environment of our tenants. This can include getting rid of draughts in houses and the removal of mould. We also strive, among other things, to improve the energy labels of our houses. By aiming for sustainable maintenance and renovation, we also try to play our part in global developments such as the government’s Energy Agreement and agreements reached at the climate summit COP21.

Our goal is to make sure that 80% of Vesteda’s portfolio has a green label (at least energy label C; Energy Index maximum 1.8) by 2020. The remaining 20% should have at least energy label D (Energy Index maximum 2.1). Portfolio Strategy is responsible for the progress in and supervision of our energy labels. Labels are updated following energy-related measures and on expiry dates (10 years). An overview is drawn up each quarter and sent to Operations.

In 2015, we decided to invest more than € 20 million extra in making our residential portfolio more sustainable. This will enable Vesteda to surpass the agreements made in the Energy Agreement by 2020. Vesteda will use this investment to improve the energy labels of around 2,500 homes. This ambitious package of measures includes building insulation, the replacement of installations with energy-efficient variants and the generation of sustainable energy through the placement of solar panels. We will make these changes on a residential building by residential building basis and in phases in the year 2016 through 2020. You will find the results of the number of houses per energy label and GRESB assessment in the section Corporate Sustainability and Social Repsonsibility.

CRE8

Type and number of sustainability certification, rating and labelling schemes for new construction, management occupation and redevelopment

Corporate Sustainability and Social Responsibility - Strategic project: Portfolio Sustainability Improvement
Corporate Sustainability and Social Responsibility - Strategic project: GRESB

Compliance

DMA

(a) State why the aspect is material and describe its impact. (b) Describe how the organisation deals with the material aspect and its impact. (c) Evaluation of the management approach.

In addition to having a good reputation, to be a good and reliable investment we also have to comply with all relevant laws and regulations. Compliance is therefore a part of our Corporate Governance policy. For additional information on our Corporate Governance policy, see DMA Corporate Governance.

With respect to compliance, we aim to incur no (monetary) sanctions. To guarantee this, compliance is embedded in large parts of our organisation. For instance, the Compliance Officer AIFMD (Alternative Investment Fund Manager Directive) is responsible for compliance with the laws and regulations supervised by the AFM, the CFO is responsible for fiscal compliance and our General Council is responsible for legal compliance. We have appointed an RMO (Risk Management Officer) to manage the risk management framework, which also covers compliance risks. Since 2007, Vesteda has issued an 'in control' statement regarding the financial reporting risks and since 2012 we have issued a general 'in control' statement.

SO8

Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations

There were no significant fines paid out by Vesteda in 2016.

Specific standard disclosures: Material indicators that Vesteda reports which are partly in line with GRI

Sustainable innovations and Healthy buildings (G4 aspect: Health & Safety)

DMA

(a) State why the aspect is material and describe its impact. (b) Describe how the organisation deals with the material aspect and its impact. (c) Evaluation of the management approach.

Vesteda believes it is important that the houses in our portfolio are healthy. This implies that they are free of high-risk asbestos, are checked for legionella, that central heating boilers are checked regularly, lifts are checked regularly, that thermal energy installations are provided with new filters and that risk maps have been drawn up for every residential building. Although these measures are of a more technical nature, their impact can have a high social impact on the lives and wellbeing of our tenants. 
 

Asbestos
Houses built before 1983 and between 1983 and 1993 can contain asbestos. This is not necessarily a health threat, provided it is not damaged and is removed correctly if it is damaged. We periodically check all buildings built in this period for asbestos-related risks. Our technical manager is responsible for the execution of these checks and reports the results to the Operations department.
 

Central heating boilers
All central heating boilers are checked periodically for maintenance purposes (so these will last longer) and to mitigate any risks from the emission of carbon monoxide due to inefficient combustion. The Operations department is responsible for this.
 

Lifts
All lifts that are fully-owned by Vesteda (so not owned by third parties or by owners’ associations) are certified by accredited certification bodies. The Operations department is responsible for the execution and for updating all certificates.
 

Thermal energy installations
To safeguard the air quality in our residential buildings, it is necessary to replace filters in our thermal energy installations regularly. All filters in our residential buildings are replaced annually. The Operations department is responsible for this.
 

Legionella
Vesteda has drawn up general instructions on how to deal with legionella prevention in the event of extended vacancy.
 

Risk map
Our ambition is to draw up a risk map for every residential building. We use these map to identify the most signifcant risks and follow these up. At this point in time, approximately 90% of our residential buildings are equipped with a risk map. The Operations department is responsible for both the execution of this aspect and the management of the process.

PR 1

Percentage of significant products and service categories for which health and safety impacts are assessed for improvement.

Corporate Sustainability and Social Responsibility - Healthy and safe houses
We do not report the percentage of significant products for which health and safety impacts are assessed for improvement. We do however aim to provide further quantitative insight into the house improvements we perform. We believe it to be far more relevant to report quantitatively about all significant improvements made, as the type and intensity of improvements vary per residential builing and unit. We will continue to monitor stakeholders’ expectations about this topic and align our reporting accordingly.

VES1 (own indicator)

Relevant initiatives & activities regarding sustainable innovations

Corporate Sustainability and Social Responsibility - Strategic project: Organisation/Behaviour

Specific standard disclosures: other material indicators that Vesteda reports but which are not found in GRI

Transparency & Corporate governance

DMA

(a) State why the aspect is material and describe its impact. (b) Describe how the organisation deals with the material aspect and its impact. (c) Evaluation of the management approach.

To be a good and reliable investment, we have to make sure our organisation is well managed and controlled. For this purpose, we have drawn up a Corporate Governance policy. Within the Vesteda organisation, corporate governance has been structured in accordance with best practice guidelines, with an emphasis on transparency and engagement and this has been laid down in the Terms and Conditions of the fund. Vesteda Residential Fund FGR is a mutual fund for the joint account of participants under Dutch law. The fund is managed by Vesteda Investment Management B.V. The manager is responsible for the long-term strategy, the daily management and administration of the fund and the assets under management. The Supervisory Committee, comprising a minimum of five members, is responsible for the supervision of the fund. The Supervisory Committee has also set up an Audit Committee and Nomination and Remuneration Committee. Every Supervisory Committee member is independent in the sense defined in the Dutch Corporate Governance Code. With respect to its composition, Supervisory Committee strives to achieve the best possible balance between know-how and experience in the felds of management, compliance, risk management, financial reporting and knowledge of real estate and investments.

VES2 (own indicator)

Insight in Corporate governance

Governance and risk management

VES3 (own indicator)

Transparency is in accordance with INREV Guidelines

About this report - INREV Guidelines