Mirvac’s urban strategy delivered excellent results in FY17, with operating earnings up 11 per cent and distributions up 5 per cent, at the top end of guidance provided.
The 2017 financial year was an outstanding year for Mirvac, and our ambition to reimagine urban life by creating, owning and managing high-quality assets in Australia’s largest cities has delivered strong results across the Group, positioning us well for the future.
Mirvac is an integrated, urban property group and a key contributor to Australia’s major cities.
Mirvac’s urban strategy and a strong focus on capital management delivered growth in FY17, and has ensured the Group is well placed for the year ahead.
In February this year, we launched Marrick & Co in Sydney’s inner west: a 220-apartment development on the old Marrickville Hospital site.
Mirvac has a priority focus on the health and safety of its employees, contractors and customers, and in FY17, we launched a refreshed policy and focus to strengthen our safety practices, behaviours and culture across our business, while supporting the wellbeing of our people, places and the communities in which we operate.
Developing a Reconciliation Action Plan (RAP) has been one of Mirvac’s key cultural goals over the past 12 months.
This Changes Everything is Mirvac’s sustainability strategy, comprised of four focus areas with long-term missions.
This Changes Everything FY17 at a glance
Ensuring the integrity and sustainability of our materials is of vital importance to us. Mirvac relies on a host of different suppliers to provide an equally broad range of materials and services.
With such a large and complex supply chain, careful management is essential, and we have worked hard to develop a strong procurement process, and a Vendor Code of Conduct, to which all suppliers need to adhere.
This year, we finished migrating all our vendor data across to Ariba so it’s now our single source of truth.
We are now also using Ariba to manage our corporate and facility management contracts too. There are three parts to this: tendering, contract management and relationships management. We are able to compare vendors side-by-side, and even anticipate when contracts are due to expire so we’re in a good position to renegotiate
Sustainability now part of the process
We are continuing on our journey to embed sustainability into the procurement process having integrated sustainability criteria into our online tendering module. This means that the suppliers we work with will be required to answer questions on key topics such as corporate social responsibility, health safety and environment, governance and community and engagement. We recognise not all of our procurement spend currently goes through this system and are committed to rolling out a risk based approach for the remaining suppliers.
Construction risk assessment
Last year, construction suppliers accounted for almost half of our supply chain (by spend). As well as using lifecycle assessments to identify environmental hot spots, we also used international data on corruption and modern slavery to identify high risk countries. The outcomes of this assessment will be fed back into our procurement process to ensure we are taking a proactive stance in identifying and managing supply chain risk.
We also now have a supply chain section on our website, with free resources available (such as the supply chain survey) and a direct link to the Supply Chain School, of which we were proudly a founding partner.
Sarah Clarke, Group General Manager Sustainability & Reputation
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