Impact ESG

• We believe that ESG factors are integral to assessing the quality of our assets and are thus a vital part of our investment process.
• Our ESG analysis focuses on areas that we believe are essential to our business to sustain a competitive advantage, over the long term.
• We understand that ESG factors are a component of investment decisions, and we consider the valuation, sustainability and fundamental risks inherent in the business

L2D Employee experience framework

Throughout our journey we encourage our people to live inspired, passionate, empowered and well-balanced lives. We lead our team in performance co-ownership, learning and continuous growth.

We ensure that we support our people in building their capabilities, while enabling them to lead from wherever they are. Our people practices are geared to supporting this culture in the organisation and towards achieving outcomes that are aligned to our overall strategy. We strive to keep our values of Passion, Accountability, Care and Excellence core to the way in which we work together.

We understand the importance of pre-empting and satisfying tenant needs to remain their landlord of choice as the provider of sustainable and relevant spaces.

Why we engage:

• Attract and retain quality tenants.
• Encourage lease renewals.
• Improve the offerings in our spaces to remain relevant.
• Tenant sustainability.

The public, especially in and around our shopping centres, comprises the shoppers who support our tenants. Shoppers are our most important customers, directly impacting the performance and quality of the tenants that rent space within our portfolio. Therefore, customer satisfaction is essential to ensure a sustainable rental income stream. Our goal remains to be regarded as retail destination of choice.

Why we engage:

• Clean modern facilities.
• Health and safety protocols.
• Safe and convenient retail centres.
• Security.
• Tenant mix.
• Tenant sustainability.
• Relationship management to maintain our brand reputation.

We depend on a few key suppliers. These include utility providers such as Eskom and local municipalities. JHIR is our property manager, contracted to assist in managing the operations at our various properties. The interaction between this supplier and customers is significant and underpins the importance of having transparent communication channels.

Service providers are appointed in line with L2D’s Procurement Policy. Our property manager, JHIR, monitors the standard of performance, and issues are addressed at the monthly owners’ meetings, which L2D’s asset managers attend. JHIR is responsible for implementing the policy for procurement activities regarding the portfolio.

Our goal remains to be regarded as a preferred business partner.

Why we engage:

• Our suppliers interface directly with our stakeholders (tenants and customers). It is imperative they conduct themselves in a manner that is consistent with our company values.
• The promotion of good relationships with suppliers equals quality service on good terms.

We are committed to contributing to meaningful social change by developing sustainable relationships within the communities that surround our properties. We strive to be a responsible corporate citizen and aim to engage and support communities in which we operate in a responsible, sustainable, constructive, and empowering manner.

Our goal remains to be considered a responsible community participant and responsible corporate citizen.

Why we engage:

By creating mutually beneficial partnerships with our communities, we ensure our own sustainability and endeavour to meet our communities’ needs.

Industry bodies represent the industry in conversations with other stakeholders and advocate for its benefit. L2D is represented, through its people, as a member across various industry bodies while leading several committees including the Green Building Council of South Africa, the South African Property Owners Association, the South African Council of Shopping Centres, as well as the SA REIT Association and Women’s Property Network.

L2D’s good standing within the industry is indicated by the regular appointment of our people to decision-making structures within industry bodies.

Our Goal remains to be regarded as a good corporate citizen and an active contributor in the property sector.

Why we engage:

• To ensure compliance with all laws and regulations.
• To manage risk.

Within the Company’s ethical environment, effective corporate governance practices create and preserve value for all stakeholders while guarding against value erosion. L2D’s governance structures and processes create value for all its stakeholders by:

• Adopting an inclusive approach to business.
• Allocating capital and resources to activities that create value.
• Allocating responsibility and accountability.
• Balancing return opportunities with the cost of risk.
• Building legitimacy through ethical leadership.
• Enhancing the Company’s understanding of risk and opportunities.
• Ensuring corporate success and business growth.
• Ensuring the Company is managed in the best interests of all.
• Incentivising executives and our people to achieve objectives that are in the interests of the shareholders and the Company.
• Instilling and maintaining confidence, as a result of which the Company can raise capital and debt funding at a lower cost, efficiently and effectively.
• Minimising wastage, fraud, risk and mismanagement.
• Positively impacting the share price.
• Protecting the L2D brand through responsible behaviour.
• Setting the tone for how business is conducted.

The Board is L2D’s corporate governance custodian, leading the Company to embed an ethical culture and ensure effective control, solid performance, and legitimacy.

The Board believes that good corporate governance:

• Ensures corporate success and business growth.
• Incentivises executives and our people to achieve objectives that are in the interests of the shareholders and the Company.
• Instils and maintains investors’ confidence, as a result of which the Company can raise capital at a lower cost, efficiently and effectively.
• Minimises wastage, corruption, risk, and mismanagement.
• Positively impacts the share price.
• Supports the brand.

The Board understands that good corporate citizenship is a measure of the Company’s social responsibility and

To this end, the Board recognises its rights, obligations and responsibilities towards society, stakeholders, and the environment. The Social, Ethics and Environmental Committee assists the Board in evaluating and monitoring measures and targets agreed upon with the leadership in all areas.

Furthermore, L2D’s legitimacy resides in the quality of its assets, with a strong heritage and a track record of being property pioneers, particularly in the retail sector. This is evidenced by the Company’s ability to remain relevant to its customers and is known as a sector benchmark in innovative property asset management capabilities.

The Company’s leadership is fully committed to the application of, and compliance with, the highest ethical standards. The Board firmly believes in leading by example and ensuring that the tone is set at the most senior level of the leadership structure. L2D’s code of ethics, as set out in its people policies, is strictly adhered to in the development and implementation of all business and growth strategies.

The Company’s leadership makes all decisions with due consideration to the code. To maintain the highest levels of integrity, honesty and transparency, the Company’s people are all required to familiarise themselves with and adhere to the code. In addition, our people are required to comply with the various policies that support the code.

Furthermore, underpinning the code are the Company’s values, which are integrated into the performance management process and shape how L2D behaves and conducts business. The Company has a zero-tolerance policy on any issues relating to unethical conduct. Therefore, the Company does not, at any level, condone or tolerate any form of fraud, corruption, unlawfulness, or other conduct that is irregular. During the year a new anti-bribery and corruption policy was adopted.