We have identified six different capitals which we depend on in our business to create value.

We draw upon these as vital inputs to our business model and are constantly increasing, decreasing and transforming them through our activities. In this way we deliver significant value beyond financial return for our business, our stakeholders and the communities in which we operate.

This is shown graphically in our business model:

Our business model

  • Financial resources: the financial resources that are available to us to grow our business. For example, how we recycle capital when we sell an asset and secure access to capital through strategic partnerships.
  • Physical resources: the property, plant and equipment that we own and utilise which provide the raw materials, infrastructure and physical assets that we actively manage. For example, we invest financial resources to improve the physical environment of our retail parks in order to create more attractive destinations for our visitors and value for our tenants.
  • Natural resources: the natural resources that we nurture, harness and harvest to sustain our business. For example, we are improving the quality of soil on our land through clauses in leases we agree with our agricultural tenants, which will bring value for them and us.
  • Our people: the individual skills, competencies and experience of our people which collectively create value and deliver our business objectives. For example, we invest in our people through their salaries, training and development, thereby increasing their know-how, wellbeing and job satisfaction which contribute to their, and our, overall performance.
  • Our know-how: our collective expertise and processes, which provide us with competitive advantage. For example, we draw on our in-house expertise and that of our business partners, deploying those capabilities to best advantage to successfully manage our assets.
  • Our networks: the relationships we have with customers, colleagues, communities, business partners and Government that are central to our business. For example, our strategic partnerships allow us to invest in our core holdings and we listen and learn from our stakeholders allowing us to retain their goodwill and trust as a manager and landowner.

An understanding of these six capitals and their inter-connectivity is increasingly integrated into our thinking and decision-making processes. All of them are intrinsically linked and we recognise how important it is to assess them in the round and not focus on maximising one at the expense of another.

Working examples can be found throughout our integrated annual report and specifically in the Chief Financial Officer’s review.