SUSTAINABILITY REPORTING

WP GLIMCHER VS. SIMON PROPERTY GROUP

By: Zack Hicks

Why these two companies?•Market sectors•Company scopes•Simon Property Group is much larger company

WP Glimcher

Overview•Formed in 2015 after merger of Glimcher Realty Trust and Washington Prime

•Based in Columbus, OH•Operates 97 properties•Manages 53 million sf of commercial space

•Equity market capitalization: $2 billion

•Local properties: Bowie Town Center, St. Charles Town Plaza

Communication•2014 Annual Report makes no mention of sustainability; neither does web site

•Individual properties have installed sustainable features before merger – no mention of this on web site

Simon Property Group

Overview•Founded in 1993 after former private firm went public

•Based in Indianapolis, IN•Operates 325 properties•Manages 241 million sf of commercial space

•Equity market capitalization: $60 billion

•Local properties: Hagerstown Premium Outlets, Arundel Mills

Communication•Web site is a shrine to sustainability

•Emphasis on all aspects of sustainability•Economic•Environmental•Social•Governance

Engagement•Stakeholder Engagement: addresses how Simon informs all parties of their sustainability practices•Investors, tenants, suppliers, and shoppers

•Director of Sustainability provides updates on company’s sustainability progress upon request

•Needed examples of stakeholder interactions

Metrics Reported•Inconsistent•Only benchmark greenhouse gases at corporate level

•Assets will benchmark where required by law

•Need to benchmark water consumption, waste production, etc.

Truthful•Sustainability reporting borders on gloating•Specificity would suggest numbers are accurate, statements are true

•Greenhouse gas emission methodologies from Greenhouse Gas Protocol Initiative

Specificity/Examples•Examples are plentiful•Report subdivided into energy management, water management, waste management, and customer-oriented perspectives

•Measures performed by individual properties used as examples•E.g., South Shore Plaza in Braintree, MA and Emerald Square in North Attleborough, MA divert one ton of food waste weekly from landfills

Marketing•Marketing is boasting about how great one is, right?•Statement: “Sustainability leader for over a decade” Reality: First sustainability report released in 2014•Marketing emphasizes awards won, de-emphasizes individual measures performed

•Being arrogant and concise > Being arrogant and precise

Sustainability Reporting GradesCompany

Overall Communication

Engagement

Metrics Reported

Truthful Specificity/Examples

Aesthetics/Marketing

WP Glimcher

Incomplete

F N/A N/A N/A N/A N/A

Simon Property Group

A- B+ B+ C+ B+ A+ A+