mirvac.com/sustainability2016.sustainabilityreport.mirvac.com/uploads/sroi.pdfthrough the delivery...

mirvac.com/sustainability

Imagine…

Feeling safe and comfortable,

day and night.

Being part of a

vibrant and active

community.

Walking to local

sporting fields

and parks.

Hosting BBQs

with friends

and family.

Knowing your

neighbours’ names

to say hello.

This is how we want all Mirvac

communities to be. We want to reduce

crime, improve residents’ health and

wellbeing, create a sense of place, and

encourage community spirit.

But how can we quantify this?

How can we measure our progress

and understand our impacts, so we

can continue to improve?

To do so, we embarked on an industry

first with KPMG and created a framework

and tool for measuring our social and

economic impacts.1

1 Value of Social Change Report, KPMG, Aug 2015

Where we startedUNDERWENT 12 MONTHS OF RESEARCH1• Interviewedandheldworkshopswithstaff

andpartners

• AnalysedfinancialandsocialdataacrossMirvacdevelopments

• Researchedindustrybestpracticeandguidelines

• Examinedkeyindicatorsandmeasurementstools

• Identifiedexistingfinancialproxiesandresearchreports

• Researchedexistingdataanalytics.

Wethoughtcarefullyaboutwhatimprovedsocialandeconomicvaluemeansforourcommunities.

Itmeans:

• Improvedsenseofsafety

• Increasedsenseofcommunity

• Improvedhealthandwellbeing

• Increasedsenseofattachmentandsenseofplace.

Thesefocusareasformedthebasisofournewmeasurementframework.

Wecollatedourresearch,andaskeddevelopmentmanagersandarchitectswhattheyfeltmostcontributedtosocialvalue.

Theysaid:

• Creatingopenspaces

• Enhancingconnectivity

• Providingfacilities

• Communityengagement

• Providingartandculturalopportunities.

DEFINED THE THINGS THAT CREATE “SOCIAL VALUE”2

DEFINED WHAT WE WANT TO ACHIEVE3

NATIONAL COST OF CRIME

National average cost of crime per resident in Australia.3

SENSE OF SAFETY

89% of residents have a ‘satisfied to strong’ sense of safety in Mirvac Developments, compared to a national average of 67%.2

Where we are now

While this is an ongoing project, it’s already helped

us understand – in tangible terms – the positive

impact we have on our customers, our partners and

even our own business. We also developed a tool to

enable us to measure and compare the likely social

impact of new developments.

Some of our initial results (in a nutshell):

2 General Social Survey Results, Australian Bureau of Statistics, Sept 2011 3 ‘Counting the cost of crime in Australia: a 2011 estimate’ Russell G Smith, Australian Institute of Criminology

ROLE OF COMMUNITY MANAGERS & RESIDENTS’ ASSOCIATIONS

Community managers and residents’ associations create an increased

sense of community.

SAVINGS FROM REDUCED HEALTH COSTS

Potential average savings per annum, per resident in a Mirvac Development through increased physical activity.5

SENSE OF COMMUNITY SATISFACTION

87% of surveyed Mirvac residents were satisfied with sense of community (26% higher than state average).6

$241

VALUE OF GREEN SPACE

People pay on average $11,195 more to be near open or green space on an average

lot price of $460,427.7

EFFECT OF MORE OPEN SPACES

More open spaces = safer, healthier and stronger communities.

4 Value of Social Change Report, KPMG, Aug 2015, Pg 405 Value of Social Change Report, KPMG, Aug 2015, pg 31

6 Vic Health Indicators Survey, Vic Health Research, 20117 Value of Social Change Report, KPMG, Aug 2015, Pg 36 Based on linear regressions modelling

VALUE OF REDUCING CRIME IN OUR DEVELOPMENTS

Per year, per residence, or $17,648 to $293,361 across developments.4

$108 $493between

2.4%

safer

healthier

stronger

COMMUNITIES

Whilst we have learnt a lot, there’s still more we can

discover. As this is a first-of-its-kind study, there are

no ready comparisons anywhere in the industry, that

looked at these wide ranging impacts. This was a

significant challenge for us.

Ultimately, we want the ‘Mirvac difference’ to

become a quantifiable reality.

Where we want to take it For the future, we want to:

• Improve and enhance the way we measure our impact

• Scrutinise our results and make improvements

• Use our new tool to assess and compare all future projects

• Create a baseline for development spend and impacts measured

• Use social impact measurement to influence and support our design choices.

Take a look at the accompanying sections for more

detail about key areas, our main achievements, and

our future goals for:

• Creating safer places

• Building a sense of community

• Creating healthier, more active communities

• Instilling a sense of place.

In addition, we have included some Frequently

Asked Questions to answer some of the wider

questions you may have, and a summary of our

new development predictive tool.

Want to learn more?Starting the journey has emphasised the link

between commitments set out within our

Sustainability Strategy, This Changes Everything.

Through the delivery of our Sustainable Lifestyles

Index, Framework for Future of Place and

Community Framework and Measurement, we will

be able to capture more data to inform our social

return on investments model.

This joint approach will provide a significant

database which when combined with existing

customer surveys and focus groups will enable us

to better quantify and value the changes we are

creating, enabling benchmarking of developments

and informing future decisions to create great

places for life.

What’s next?

It’s this feeling of comfort and safety that we want to

instil in all our developments. It affects how we design

our buildings and open spaces, and determines which

initiatives and programs we implement to ensure a

greater sense of common responsibility.

Feeling safe where you

live, day and night.

Being able to let your children play safely

outside in the local neighbourhood,

enjoying outdoor spaces.

Knowing and trusting

your neighbours.

Imagine…

1 ‘Economic factors and the rate of crime’, Allison, J. P. Land Econ. 68:193-196 2 Ibid, ‘Counting the costs of crime in Australia: A 2011 estimate,’ Russell G Smith, Australian Institute of Criminology

3 ‘Crime Prevention Through Environmental Design’ (2 ed.), Crow, T, Boston, 2000, p.46

More open spaces + more connectivity +

more community engagement

=LESS CRIME AND INCREASED

SENSE OF SAFETY.

Just a 1-unit increase in expenditure on parks

and recreation

=26-UNIT REDUCTION

IN CRIME.2

What we now know

Good environmental design

=IMPROVED QUALITY OF

LIFE FOR RESIDENTS, LESS

FEAR AND LESS CRIME.3

Improved built environment + social cohesion

=LESS CRIME.1

MIRVAC INVESTMENT VS SAVINGS FROM REDUCED CRIME

Mirvac financial investment levels determine what percentage of savings are attributable to our developments.5

How we do SAVINGS FROM REDUCED CRIME

Average saving per annum, per resident in a Mirvac Development.7

SENSE OF SAFETY

89% of residents have a ‘satisfied to strong’ sense of safety in Mirvac Developments, compared to a national average of 67%.6

4 Value of Social Change Report, KPMG, Aug 2015 pg 225 Value of Social Change Report, KPMG, Aug 2015, pg 24

6 General Social Survey Results, Australian Bureau of Statistics, Sept 2011 7 Value of Social Change Report, KPMG, Aug 2015, pg 22

VALUE OF REDUCING CRIME IN OUR DEVELOPMENTS

Per year, per residence, or $17,648 to $293,361 across developments.4

$108 $493between

What we don’t know (yet)

Despite there being a strong sense of safety across all our developments our research raised some interesting questions that we would still like to clarify:

Why does residents’ feedback regarding

their sense of safety, vary so greatly

from 71.4% – 100%??

Why did we find inconsistent results

around increased safety linked to spend

on specific amenities??

11

2

Where are we heading?While the report has taught us a great deal, we still want to:

Look at ways to further understand our residents, how they rate and use amenities, and how they feel about safety in their area.

Further analyse specific developments to better understand the exact links between spend, design, amenities and safety.

Address improvements across multiple stages of developments.

Make our customers feel safer.

Always create the safest communities.

Direct our investments more effectively.

Save more in reduced crime costs.

This will help us

Case studyCreating Safer Places

Harcrest

TOP FACTORS IN DECIDING TO LIVE IN HARCREST

Surveys from our Harcrest development found the natural environment, community feel + safety were the top

three factors in deciding to live there.

A Mirvac masterplanned community located within the coveted City of Knox, Victoria.

Harcrest surveyed as one of our safest communities.

10% of the site includes public open space including walking trails, playgrounds, exercise equipment and a community garden.

1 General Social Survey Results, Australian Bureau of Statistics, Sept 2011 2 Value of Social Change Report, KPMG, Aug 2015, pg 40

SAVINGS FROM REDUCED CRIME

Average saving per annum, per Harcrest resident.2

$419

SENSE OF SAFETY

100% of residents have a ‘satisfied to strong’ sense of safety, compared to a state average of 67%.1

State average

100%

Mirvac development

In all our developments, we strive to create warm,

inclusive communities. We do this through our

innovative building designs, the way we integrate

common spaces and facilities, and our wide range

of community engagement programs.

Attending local

events and

activities, all

year round.

Feeling you’re an

active part of your

local community.

Being surrounded

by familiar,

trusted faces.

Imagine…

1 National Greenstar Survey, 20,000 respondents, 83% agreed

2 BTCV People Places Awards Scheme Evaluation, SQW, 2005

3 ‘Economic Impact of Public Transportation Investment,’ American Public Transportation Association, Forkenbrock & Weisbrod 2001

4 BTCV People Places Awards Scheme Evaluation, SQW, 2005

Attractive + safe + walkable streets

=INCREASED WALKABILITY.1

Increased spend on social programming

CAN CREATE A GREATER

IMPACT THAN INCREASED

SPEND ON COMMUNITY

INFRASTRUCTURE.4

Community liveability

+social cohesion

=SENSE OF COMMUNITY.3

What we now know

Community activities

=INCREASED USE OF SPACE

=INCREASED COMMUNITY

PARTICIPATION.

Parks + open spaces

=COMMUNITY FOCAL

POINT THAT BRINGS

PEOPLE TOGETHER.2

IMPACT OF WHERE MONEY IS SPENT

$ spend on social programming equals greater impact than $ spent

on amenity infrastructure.

How we do SPEND ON FACILITIES

Increased spend on appropriate facilities equals an increased sense of community.

5 Vic Health Indicators Survey, Vic Health Research, 2011

ROLE OF COMMUNITY MANAGERS & RESIDENTS’ ASSOCIATIONS

Community managers and residents’ associations create an increased

sense of community.


87% of surveyed Mirvac residents were satisfied with sense of community (26% higher than state average).5


Volunteer hours are commonly used as a value measurement for sense of community – should Mirvac measure this? ?

Why did we find inconsistent results around increased spend on specific community facilities and links to a sense of community?

?

There is a big range in scores for sense of community across developments, from 7.48% above national baselines6 to a high of 25.5%. Why is this?

?

Our research raised some interesting questions that we would still like to clarify:


4 Correlate what we spend on design features

with overall customer satisfaction.

1

2

Survey our residents to understand their

involvement in community activities.

Compare differing levels of community

involvement across our developments.

3 Confirm the link between financial spend on social

programming and residents’ sense of community.


Consistently create strong communities.

Always build the best possible infrastructure and provide

social programming relevant for our customers.

Further understand the role of design in creating a sense of community.

Define the % impact of programming vs facilities to better understand our investment return.

Ensure all our customers are part of a thriving community.

This will help us

Case studyBuilding a Sense of Community

Elizabeth PointA Mirvac masterplanned community set alongside one of Sydney’s newest suburbs, Elizabeth Hills New South Wales.

This development has our highest change in sense of community in comparison to the surrounding area.


96% of residents have a ‘satisfied to strong’ sense of community compared to a state inner city average of 71%.1

SENSE OF SAFETY


93State average

%

Mirvac development

COMMUNITY MANAGER & RESIDENTS’ ASSOCIATION

SAVINGS FROM REDUCED CRIME

Average saving per annum, per Elizabeth Point resident.3

$346

1 Vic Health Indicators Survey, Vic Health Research 2011 2 General Social Survey Results, Australian Bureau of Statistics, Sept 2011

3 Value of Social Change Report, KPMG, Aug 2015, pg 40

It’s our goal to create healthier, more outdoor-focused

communities. We want our residents to live longer, more

active and healthier lives. We do this by implementing a

wide range of facilities in our developments, and enabling

residents to use parks, join local exercise groups and

benefit from good accessibility features.

Having parks, local

exercise groups and

facilities at your doorstep.

Living a more active life, and

reducing your health costs as

you do so.Being able to easily

and safely walk, cycle

or run around your

neighbourhood.

Imagine…

Increased physical activity

=MEANS IMPROVED COMMUNITY

HEALTH AND WELLBEING

(PHYSICAL AND MENTAL).

Losing productivity due to obesity through

absenteeism, presenteeism + premature death

COSTS AN ESTIMATED

$6.4 BILLION A YEAR IN

AUSTRALIA.1

Built environment

=CAN SIGNIFICANTLY

PROMOTE OR DISCOURAGE

WALKING AND PHYSICAL

EXERCISE IN ADDITION TO

SOCIAL FACTORS.2

1 ‘Obesity in Australia: financial impacts and cost benefits of intervention’, Medibank Health Solutions, March 2010

2 ‘Getting Australia Active II: An update of evidence on physical activity for health’, VicHealth, 2004

3 The economic benefits of reducing physical inactivity: an Australia example, Cadilhac et al. International Journal of Behavioural Nutrition and Physical Activity 2001

What we now know

10% increase in Australia’s physical activity

=6,000 FEWER INCIDENTS OF

DISEASE, 2,000 FEWER DEATHS,

114,000 EXTRA WORKING DAYS,

180,000 EXTRA HOME DAYS, A

SAVING OF $265M A YEAR.3

Tracking an individuals’ level of physical activity (rather than

self-assessed health)

=INCREASING OUR ABILITY TO

PROMOTE PHYSICAL ACTIVITY.

ESTIMATED MIRVAC INFLUENCE ON RESIDENTS’ LEVEL OF

PHYSICAL ACTIVITY

Of the three factors that influence peoples physical activity, Mirvac has

an estimated 0% influence on personal factors, 25% influence on the social and cultural environment and 75% on built

environment influences.5


5 ‘Participation in physical activity: A determinant of mental and physical health,’ Vic Health, October 2012

6 ‘Health People in a Health Economy: A Blueprint for Action in Massachusetts,’ The Boston Foundation, June 2009, p7

WAYS MIRVAC DEVELOPMENTS CREATE ACTIVE LIFESTYLES

Mirvac developments are designed to create active, outdoor orientated lifestyles

by including or enhancing walkability, open spaces, cyclability, connectivity and

community facilities.6

How we doSAVINGS FROM REDUCED

HEALTH COSTS

Potential average savings per annum, per resident in a Mirvac Development through increased physical activity.4

$241



?How many people walk to work?

What do people think of the quality of open space?

How many people actually use our swimming pools, gyms, cycle-paths and park facilities?

?

?

What exercise do people do that Mirvac can support or influence? ?


4 Understand what facilities should be

created vs activities programmed.

1

2

Measure the use of facilities against health improvements.

Track exercise patterns within our developments.

3 Better understand the outcomes and the positive

change we can create in the future.

Know what our customers need, want and use to lead healthier, more active lives.

Define the % impact of programming vs facilities on residents being active

and invest accordingly.

Link savings to specific types of programming or facilities.

Show how Mirvac developments create healthier communities.

Start to demonstrate the savings made from

investments to our customers.

This will help us

Mirvac’s sixth apartment tower located within Mirvac’s exclusive waterfront precinct, Yarra’s Edge, Melbourne.

The development includes 300 sqm rooftop of herbaceous gardens, residents lounge, gym and business centre. All supporting the improved health and wellbeing of residents.

Case studyCreating healthier, more active communities

Docklands, Yarra’s Point

SENSE OF SAFETY


92State average

%

Mirvac development

DEVELOPMENT AWARDS

Australian Apartment complex of the year at the 2015 HIA CSR National Housing Awards.

Australian Apartment complex of the year

HEALTH AND WELLBEING CLASSES

200 Live Life Get Active classes per year.

1 General Social Survey Results, Australian Bureau of Statistics, Sept 2011

200

Having access to open and

communal spaces where you can

participate in activities.

Walking through your local

park, knowing all about your

area’s history through local

signage and public art.

Having the opportunity

to learn about other

cultures and sub-cultures

in your community.

Creating a sense of place is important to us. We want

residents to feel grounded and comfortable in their

local community. Our aim is to create places that feel

authentic and connected to their local history and

community, with open spaces accessible for all.

Imagine…

The arts

=IMPACT ON OUR

DEVELOPMENT

AND WELLBEING.3

Walkable neighbourhoods

=20% PREMIUM

ON VALUES.1

1 ‘Synthesis Report,’ UK NEA, 20112 ‘Will “Walkable” Suburbs Outperform in the Future,’ Yardne, M, 2015

3 http://artfacts.australiacouncil.gov.au

Cultural facilities,public art + cultural

programming

=A SENSE OF SHARED

COMMUNITY IDENTITY.

What we now know

A view of green space

=INCREASED INDIVIDUAL

EMOTIONAL WELLBEING BY 5%

AND GENERAL HEALTH BY 2%.2

Increased density

= INCREASED IMPORTANCE

OF PLACES AND SPACES

IN-BETWEEN RESIDENCES.

(THE THIRD SPACE)

TOP FACTORS IN DECIDING TO LIVE IN OUR DEVELOPMENTS

Surveys from our Harcrest and Yarra’s Edge developments found the natural

environment, community feel + safety were the top three factors in deciding to live there.

4 KPMG Report, based on linear regressions modelling

WAYS MIRVAC INVESTS IN ARTS + CULTURE

All Mirvac developments invest in arts + culture through public art, heritage preservation,

information plaques and local naming.

VALUE OF GREEN SPACE + AFL PITCH

This went to a premium of $36,299 or 7% at our Waverley Park development, where

lots looked out onto an AFL pitch.

VALUE OF GREEN SPACE

People pay on average $11,195 more to be near open or green space on an average

lot price of $460,427.4

2.4% 7.0%

How we do



Sense of place is unique to every development, so are there any common threads we can identify? ?

Is there a national benchmark Mirvac can use or do we need to develop our own? ?

How much do we spend on arts, culture and history? ?

4 Further understand and quantify the economic benefits of creating a sense of place.

3 Re-think our pre-conceptions of which social facilities are most in-demand at our developments.

2 Understand how we can more accurately compare our developments with regards to art and culture.

5 Link our investment in health and wellbeing with our investment in the arts.

1 Survey our residents on their sense of attachment to an area so as to create our own baseline for comparing developments upfront.


This will help us

Create relevant spaces that offer cultural and educational activities

that bring people together, to establish a connection to place.

Improve how we incorporate art and culture into our developments.

Define what Mirvac customers see as high quality open space and

access to nature.

Understand what is driving the changes we observed, and which

can be used to improve future design decisions.

Clearly define what place means to Mirvac customers.

MIDDLETON GRANGE COMMUNITY ASSETS

Middleton Grange includes two community facilities and a community liaison manager.

Case studyInstilling a Sense of Place

Middleton Grange

CYCLABILITY IN MIDDLETON GRANGE

3.2km perimeter cycleway and Western Sydney Parklands entrance to cycle and walking parks.

Part of the Southern Hoxton Park release area, and is situated between the M7 motorway and the Western Sydney Parklands.

Situated on the land of the Darug Aboriginal people, indigenous artists were commissioned to create a series of works including half km markers with Darug paintings.

INDIGENOUS PUBLIC ART

Capturing the culture, stories and value of the Darug clans.

3.2km

Community facilities

Community liaison manager

Mirvac’s Impact Prediction Tool estimates the economic and social impact of Mirvac developments based on academic research and data collected both internally and externally.

Through the input of basic project information we are able to analyse a project’s:

• Economic impact analysis, based on ABS Input/Output Table multipliers

• Local spend analysis, based on ABS Census Surveys of Household Expenditure

• Social impact analysis, based on relevant academic literature relating to safety and physical activity.

Data inputTo estimate an existing project or predict a future projects impact, specific data must be entered into the tool. This includes information on: CONSTRUCTION

FACILITIES CONNECTIVITY RESIDENT SURVEY DATA

OPEN SPACES

Mirvac’s impact on health and active living

Industry share of total direct and indirect (value-added and employment)

Benchmarking of a projects investment in community facilities

Local area expenditure – from construction, residents and employees

Mirvac’s impact on community, safety and savings

Economic impact of construction (value-added and employment)

Outputs generated

Continued refinement and updating of data contained in the tool will help to ensure that the estimated impacts continue to reflect the economic and social impacts driven by Mirvac’s value proposition.

The following outputs can then be automatically generated:

FAQs

OVERVIEW

Why does a property developer care about Social Return on Investment (SROI)? What are the benefits to Mirvac?

SROI provides another way for Mirvac to measure and communicate social impact. It enables Mirvac to measure how we are contributing beyond our boundaries to the broader community, demonstrating the value we create to the local community, our partners and define clear targets on what success looks like beyond financials to our different stakeholders. Importantly this will provide an important source of feedback to help Mirvac improve both existing and new communities.

What were the key indicators used in your initial research?

A wide range of national and international indicators as well as research papers were utilised in this project. These included the City of Sydney Community Wellbeing Indicators, London’s Quality of Life Indicators, Green Star Communities Guidelines and Community Indicators Victoria. We ensured that all data used is from credible, reliable and robust sources.

For how long will Mirvac go back to the same communities and survey them in order to identify trends and improvements?

At present we have not set a definite timeframe, however, we have developed a SROI tool which can be used on all future projects to ensure that we continue to increase the number of projects measured. Also, as part of our wider strategy ‘This Changes Everything,’ we will be launching our Sustainable Lifestyles Index in 2016 which will increase data capture from our residents. As part of this, we will be looking at going back to communities used in our initial SROI study to identify potential trends.

How will the results contribute to maintaining and improving performance?

All the results so far will be used to help create benchmarks and targets for future developments. Further work is required before we finalise these benchmarks, so all new developments will be required to use our SROI tool subsequently growing our database. This initial study already provides us with benchmarks on the % of development costs invested into key elements that create social value. It also provides us with metrics for our developments to aim towards e.g. All developments could be asked to meet a 89% “satisfied to strong” sense of safety score. If this performance isn’t achieved we can look at why and ensure we make further investments or improve delivery in future developments.

CREATING SAFER PLACES

How is the cost of crime calculated?

The study utilised research undertaken by the Australian Institute of Criminology to identify the cost of crime per resident in Australia. These costs have been broken down to identify which costs Mirvac has the ability to influence.

Using the number of residents and applying the victimisation rate to estimate the number of incidents, per crime, in a development area, a national average cost can be calculated per resident.

Two factors are then considered to determine what percentage of these costs Mirvac is likely to have influenced. The first is the level of investment in an area on safety measures, such as creating open space, and connectivity. Secondly survey ratings of residents are compared to state averages to determine what change has occurred compared to surrounding areas.

SENSE OF COMMUNITY

Are community managers appointed by Mirvac or the residents?

At the majority of our developments the community manager is appointed by Mirvac.

At what point is the assessment of the community undertaken (when comparing Mirvac developments against national and state averages)?

Currently surveys of our communities take place four months after settlement. National and state statistics relate to the most recent release of data available.

FAQs

INSTILLING A SENSE OF PLACE

Why is a property developer concerned with art and culture?

Art and culture is a key element for creating places where people want to live, work and play. It supports the creation of communities and enables new developments to link with their historical past, or feel more connected with a surrounding area.

What kinds of cultural programming does Mirvac provide?

Cultural programs are tailored to specific projects depending on the local residents, history of the location, retail offering or cultural tenants. Activities vary from movie nights, arts and craft activities, through to live music and theatre such as our jazz in the park events.

CREATING HEALTHIER MORE ACTIVE COMMUNITIES

What is the importance of green spaces on emotion within a community?

This was not something we studied in detail for this phase of the work. We chose to focus initially on the use of green space, impact on house prices and the impact of green space on improving sense of community and safety.

IMPACT PREDICTION TOOL

Can the tool only be used on Master Planned Communities?

No, the impact prediction tool can be utilised on all our residential projects as well as offices and mixed use.

mirvac.com/sustainability2016.sustainabilityreport.mirvac.com/uploads/sroi.pdfthrough the delivery...

Documents