Materiality

Business today is about striking the right balance in everything we do.

In keeping with the NZX’s updated Corporate Governance Code, we have extended the commentary in this year’s Annual Report to include more discussion of our sustainability practices. To support this focus, we commissioned an independent assessment of the material factors influencing our success.

Our approach to determining materiality

The assessment of GMT’s material Environmental Social and Governance (ESG) factors was carried out in line with a Global Reporting Initiative (GRI) Standards approach. Although we have not followed the GRI Standards for this report, we felt it was important to base what we have done on an internationally acknowledged and respected benchmark.

We identified 16 factors as material to our business and these were mapped against the four strategic pillars.

This assessment was then canvassed with senior staff and selected stakeholders including investors, customers, suppliers and industry representatives. From there, we developed a materiality matrix based on the extent to which each factor influences stakeholders’ decision-making and the significance of those factors to our success.

The matrix to the right should be read in conjunction with the legend alongside.

We identified 16 factors as material to our business and these were mapped against the four strategic pillars.
Materiality reporting

Mapping our materiality matrix back against our business model

All 16 factors are important contributors to the long-term performance of our business. In terms of ranking, the most significant factors for us were positioned in the upper right quadrant. These factors had the greatest influence on how our stakeholders assessed us, and were also those we judged most important for GMT economically, environmentally and socially.

The high ranking of customer attraction and retention is particularly satisfying. It convinces us that we are making strong progress in our bid to be the leader in quality business space and that our integrated own+develop+manage business model is keeping our stakeholder expectations front of mind. The attractiveness of our portfolio to customers directly aligns with our vision to have valued stakeholder partnerships and to contribute to thriving cultures and communities.

The presence of sustainable design and building resilience and adaptation in that top quadrant reflects our commitment to a future-proof portfolio. Securing the best land at prices that make future growth and development viable and sustainable, has underpinned our business model and our success for many years. By carefully choosing where we develop and then insisting on masterplanned industrial and office spaces that are highly functional, well designed and that meet high environmental standards, we are developing assets that will work to all our stakeholders’ advantage. Future-proofing those designs by incorporating minimum sustainability standards then maintaining and managing our buildings ensures that our assets remain valuable, desirable and relevant to our customers.

Our ratings for health and safety confirm our approach to people and community, which is to always value and respect those we work with, establishing long-term mutually beneficial relationships. Mitigating risk is an important part of doing that.

Finally, it’s good to see that other stakeholders are as focused as we are on strong financial performance. We see the inclusion of capital structure and financial results in the top quadrant as an assurance for customers, suppliers and investors that they are working with a business that understands that financial sustainability underpins all the other attributes.