Our risks and opportunities

Our approach to managing risk is an integral part of how we devise and deliver our strategy with effective risk management, identification and review being core constituents of our business activity. 

Our approach

In identifying material issues we considered internal factors as well as global megatrends such as rapid urbanisation, technological advances, changes in demographics, consumer behaviour and business models, climate change and resource scarcity, and the shift in global economics.

What is material is defined as an issue that would impact our Board and Committee decisions.

Each issue was scored on a scale 1-5 across three areas, namely:

  • its economic impact on the business;
  • the degree to which our principal external stakeholders are concerned with it; and
  • the extent to which it is likely to grow in significance and impact in the future.

From an initial list of 15, the scoring identified the ten material issues below.

 Key to resources and relationships

Our ability to control or influence our response to the issue:

  • Direct control – Our response to the issue is entirely within our control
  • Shared control – Control in how we respond to the issue is shared with, or exercised through, another organisation or third party
  • Strong influence – We have the ability to influence our response to the issue within our own business and value chain
  • Some influence – We have the ability to influence our response to the issue within our own business.

 

 

Reputation and trust
What it's about

Maintain the trust of stakeholders so we can operate successfully and demonstrate our core values of commerialism, integrity and stewardship

Government policy, constitutional change and political uncertainty
What it's about

Demonstrate resillience uncertainty related to Brexit, as well as adaptability to changes in Government policy and regulations that can influence our markets

Strategic counterparty alignment
What it's about

Create and maintain strategic partnerships - and attract investors who share our values - so we can access capital to reinvest in our business

Impact of technology on the business
What it's about

Anticipate and address the impact of technological change on our business.

Availability of skills and talent
What it's about

Ensure that we and our supply chain partners can attract and retain employees with the right skills, experence and values

Health of the economy
What it's about

Achieve sustainable, profitable long-term growth so we can meet our targets and build resilience in our business

London's place in the world
What it's about

Play a central role in helping the capital develop its opportunities and address key challenges, ensuring it remains a thriving world city and an attractive and safe place to live and work

Customer aspirations 
What it's about

Understand our customers' aspirations - and their cutomer's expectations - through our buildings, providing excellent customer service and maintaining our position as a landlord of choice

Climate change
What it's about

Address the risks and opportunities generated by changes in global climate and weather patterns, particularly in regard to property and energy policy

Natural resources
What it's about

Manage carefully the natural resources we rely upon, from construction materials to seabed aggregates and the soil on our farms