Executive Summary
In this present report, one may note that the approach adopted by Land Securities (Land Sec or LS) is through the PwC Value Framework. This helps them in measuring and managing the performance of the company. It also creates an overall structure for reporting the necessary and essential information with respect to their performance. It also helps in laying out a reporting model designed for the requirements and needs of the investors. This is given in details and full information is laid out in a logical manner. Furthermore, it helps in an investigation towards the nature and quality of Land Sec’s performance with the help of the main key elements as outlined and discussed in the PwC Value Framework. This helps in moving towards the domains of the value creation model for the sustainability in the business world. Land Sec is a very popular company listed out in the real estate domains and is involved into the investments in the properties of UK> It showcases the trusted owners, management and develops a good portfolio towards the excellent and high-quality properties available in the country of UK.
With the help of the Land Sec’s “Experience Matters Annual Report 2019″, ” Green Bond Framework 2019″, ‘Land Sec Green Bond Framework Second Party Opinion”, ” Our Economic Contribution”, “Our Social Contribution”, “Power of Partnership-Our Sustainable Charter”, “Sustainability Performance & Data 2019” and “Sustainability Update 2019”, the analysis has been performed according to each Framework elements. This supports the academic comments against the quality of the performance of l
Land Sec. each one of the factors is used to measure and access both the available and comprehend the information as depicted in the above listed reports. Subsequently, it also helps to understand the material in all of the versions available through the reports. As a result, it becomes easier to see the different sectors of the reports as clear and transparent towards the sharing of the information. This is helpful for the investors to take the further steps and help in their decision-making strategies for the future projects. One must also perceive the different areas in the performance information channels and for the excellent reporting formats. These are addressed in the following manner:
The Elements of organizational health
Goals and Objectives
Governance Models
Risk Factors
Remuneration Strategies
Elements of Organizational Performance
Economic Performance
Environmental Performance
Segmental Performance
The most important aspects for the Land Sec are goals and objectives. These help them to achieve their “sustainable long-term values” for their external and internal customers, clients and investors. As a corporate company, they thrive and stress upon the importance of being clear, present the details and transparent reports to the external world. This includes their governance, remuneration and performance models and strategies to earn profits and survive in the competitive world. This helps the investors to take necessary steps towards the future projects for the Land Sec.
It is good to know that the Land Sec has provided all the relevant information on their web-portal for the easy access by the important decision makers and contains all elements of the PwC Value Framework. Apart from the reports listed in the above paragraph, the company has also showcased other relevant information on the website. One may observe the details and separate categories of the reports published from the side of the Land Sec. This makes it easier and convenient to move from one element to another in the report making phases. Though this is bit time consuming task, nevertheless, it is good to invest some time to understand the subtleties of the various sectors of the operating Land Sec. This helps the readers and other stakeholders to know more about the company, their strategies, their achievements and the manner they operate and function to run their business. This also helps in presenting the detailed and effective explanations of both qualitative and quantitative data used to support the facts of the reports. The past performance of the company is known through different metrics, tables and figures shared in the reports. This helps in knowing the results of the company and their performance. This reveals their straight forward transparent nature in their business and commercial dealings and helps one to interpret their achievements and outputs. In the end, one may conclude that their reports are highly claimed in terms of the quality and drive the investors to take relevant and necessary decisions towards the company.
1.0 Introduction-Land Securities
There are 17 elements in the PwC Value Framework. These will be used to know more about the performance of the company the Land Sec (Land Securities, 2020), (Land Securities, 2019), (Land Securities, 2020), and (Land Securities, 2020),
1.1 Strategy: Goals and Objectives
Report Extract:
Page No. 44
(Land Securities, 2020, p. 44)
Report Critique
Under this, one may observe the importance of the goals and the manner in which it has been classified according to the UN General assembly and adoption of the 17 Sustainable Development Goals (SDGs) These help them to build in partnerships and run their business. They aim at two things: addressing the global issues and 17 simple goals in order to get the access of their progress. This will be useful for investors, partners, customers and communities. With these goals, they are committed to their business responsibilities, human rights, labor, environment and anti-corruption. It also helps them in designing and planning their strategies, actions and move towards the goals.
Accessibility
The goals are found on Page No. 44 and it was easily discovered in the Annual Report 2019. The goals are discussed in different box on the page and has some good photographs also to support the discussion. The discussion really helps to know about their long-term goals aligned with the UN. Though the discussion on goals does not begin in the first few pages of the Report.
Comprehensiveness
There is a flow in their discussion about their goals and is well-associated and connected with discussions on employees, gender inclusiveness, sustainability in employment and career options, risks, mitigation, development of the healthy, safety and secured committee, in audits, financial transactions, etc.
Overall Conclusion
The Report gives a clear and extensive discussion on the goals of the Land Sec and in different ways in which the strategies and plans are designed for the company as per the goals.
Objectives
(Land Securities, 2020, p. 16)
Report Extract
The discussions and information on “Objectives” are not located at one page only. These are spread across the Report. On page 16, Land Sec discusses about the strategic approach and maps them with the objectives. Similarly, on page 20, the key indicators for the strategic objectives are stated clearly. On page 56, Strategic Objectives and principle Risks are shown in the Report. Various discussions are linked to the objectives and one may observe the signs against them and this may be seen on page 60. On page 70, the board activity is depicted with the support of their objectives. On page 70, there are links with the setting of the strategies, their associations with the stakeholders, shareholders and governance and acceptable risks. On page 76, there is their progress exhibited with their objectives set for the years 2018 and 2019. On page 109, one may find the key business plan and objectives.
(Land Securities, 2020, p. 20)
(Land Securities, 2020, p. 56)
Report Critique
It is perceived that the Land Sec has good strategic objectives with their business plans. It is this reason why one may find the discussions of their strategic objectives at different places in the Report. It also means that the company is much focused when it comes to their strategic objectives and never ignore them from their business domains.
(Land Securities, 2020, p. 60)
(Land Securities, 2020, p. 70)
(Land Securities, 2020, p. 70)
Accessibility
The objectives are not simply stated in one page in their Report. It is spread across the report and this may be seen from the different page numbers and discussions and links with the objectives. These are not simple statements for Land Sec. These are their main principles and aligned in a very detailed manner in the different discussions and topics. One may also find that these discussions are linked with the topics on different page numbers and one may not miss them or ignore while going through it.
(Land Securities, 2020, p. 76)
d. Comprehensiveness
As it is titled, “Our Experiences-The Annual Report 2019”, it is indeed he experience to know more about the strategic objectives of the Land Sec. The topic is well discussed and linked with their key themes and discussions like on partnerships, main business ideas, mitigations, customers, etc. Thus, one may observe their detailed design for their objectives and the manner it has been laid out in the entire Report.
(Land Securities, 2020, p. 105)
e. Overall Conclusion
In the end, one may state that the strategic objectives are well-planned and established in a detailed manner so that these may not be ignored or missed out throughout their business journey and covers every aspect of the business for Land Sec.
Strategy: Business Model
Report Extract
The discussion on the business model is extracted from page numbers 12-15 in the Report 2019.
Report Critique
The business model has been discussed with respect to their main inputs viz. financial, physical, and social. Thus, the journey begins from selling, buying, managing and developing their business activities.
Accessibility
The discussion on the business model for Land Sec is observed in page numbers 12-15 of the Annual Report 2019. In these pages, the company has discussed their model in depth the status of their financial transactions, investments, etc. under the physical inputs, they are including land, buildings, materials, technologies, etc. and for their social inputs, the categories are mainly focusing on the relationships with their customers, communities and partners. This includes their capabilities also. There are good diagrams and images to map their model of business.
Comprehensiveness
Under the bracket of the finances, they are concerned with their profits, asset value, balance sheet and dividends. The physical approach aims at the quality of their portfolios, changes in the climate, natural resources and sustainable designs and innovations. The social approaches are towards the customers, communities and their partners and employees. Thus, the model encapsulated the entire factors necessary for a successful business.
Overall Conclusion
In the end, one may conclude that the business model is not a simple one and captures all important parts of a business right from customers to finances to the investors. Each one of them is well associated and connected to one another.
(Land Securities, 2020, pp. 12-15)
(Land Securities, 2020, p. 13)
(Land Securities, 2020, p. 15)
Strategy: Governance
Report Extract
In their Annual Report, the topic of “Governance” may be observed from page number 62 onwards till 118.
Report Critique
It begins with the letter from the Chairman of the company. This is followed by the board of directors and the details about it is extended from page numbers 62 to 68. There are discussions on Leadership, Audit Committee, Investor Relations, and Annual Report on statements, remuneration and its policy and ends with the Director’s Report.
Accessibility
It is covered in the page numbers 62 to 118. It is covered under one heading and easily accessible. The readers are able to see the separate headings for the topics falling under “Governance”. It is well planned and placed in the Report.
(Land Securities, 2020)
(Land Securities, 2020)
Comprehensiveness
It gives a vivid picture for the entire model of the governance at Land Sec. The details of their leadership and the management committees across the platforms of the company is presented in the Report. It has discussions on various topics like leadership and their composition, committees, etc.
e. Overall Conclusion
In the end, it may be added that the Governance element has been covered and captured in a very well manner in the Annual report.
Strategy: Risk Management
Report Extract
Extracted from page no. 54-59, 70, 77, 81-91 and 166.
(Land Securities, 2020)
Report Critique
The Report highlights the risks as understood in their strategic objectives. It is well discussed and linked with their topics on finance, accounting, audit, leadership and risks. The discussions exhibit the importance of risk in their business and how their leaders deal with them. It is good to know that there is a separate department focusing on Risk Management and leadership to play its role under the risk management.
(Land Securities, 2020)
(Land Securities, 2020)
(Land Securities, 2020)
Accessibility
It is not covered under one heading like Governance. It is again spread across their Report 2019. This shows that risks are involved in three main areas: Finance, Accounting, and Business dealings and operations.
d. Comprehensiveness
Since it is discussed under separate topics, it becomes easier to understand the importance of the risks and their relevance to the business of Land Sec. It covers the following main headings:
Financial Risks
Accounting Risks
Audit Risks and Control Risks
Leadership & Risks
Performance & Risks
(Land Securities, 2020)
e. Overall Conclusion
Risk is very important for the business of Land Sec. Thus, the leadership is present to take the control over them with the help of the audit team and the manner in which there is internal controlling system to monitor each and every part of their business.
Strategy: Remuneration
Report Extract
It is extracted from page number 94 to 117 under the heading of the “Governance”. The remuneration committee is extracted from 91-117 pages.
(Land Securities, 2020)
(Land Securities, 2020)
(Land Securities, 2020, p. 93)
(Land Securities, 2020)
(Land Securities, 2020, p. 95)
Report Critique
Since it falls under the main heading of the topic “Governance”, it is easier to comprehend it. In the first place, there is an overview glance presented in the Report. Secondly, an Annual Report on it is presented and discussed in it. There is also a summary of the remuneration of the directors. There are few policies around it for Land Sec.
Accessibility
It is easily accessible from page numbers 94 to 117 in the Report. In the pages 94-95, the discussion is on the remuneration, its structure and outcomes for the current year. From pages 96-107, there is an Annual report prepared and presented on remuneration and from pages 111-117, the policy of the remuneration is discussed.
Comprehensiveness
Simon Palley heads the Remuneration Committee. It is very nicely explained and describes the entire structure of the management of the remuneration. It is classified in the following manner:
Remuneration of the Directors and Non-Directors
Remuneration based upon the performance
Structure of the remuneration
Stakeholders role in the remuneration
Details of the remuneration distributed to the senior members of the management
Clear cut policy for the remuneration.
Committee members of the remuneration
(Land Securities, 2020)
(Land Securities, 2020)
(Land Securities, 2020)
(Land Securities, 2020)
Overall Conclusion
(Land Securities, 2020)
In the end, it may be noted that the company has a very clear and transparent structure with respect to their remuneration and its policy for all the employees of the company. It is well designed with their strategies and performance based one too. Since there are details and explanation in the report, the quality if good.
(Land Securities, 2020)
Resources and Relationships: Financial Assets
Report Extract
Extracted from page no. 130 in the Annual Report 2019.
(Land Securities, 2020)
(Land Securities, 2020)
(Land Securities, 2020)
(Land Securities, 2020)
Report Critique
The financial assets for the company is discussed in length in the report. There are separate sections in the balance sheet for the details of the assets. It becomes to observe them and understand the importance of the assets in the financial domains. It is also associated to the mitigation, cost, risks involved, etc. for the assets.
Accessibility
It was easily accessible through search and had some pictures of their top ten properties in UK. The details are given and discussed in the report. In fact, the details of the properties in terms of their profits and loss is also explained in it. There are separate tables and images for the entire discussion.
Comprehensiveness
It is easily understood through the details and explanation of the financial assets as given in the balance sheet. Thus, the company has shown the importance of the balance sheet in the financial report rather than on the income sheet.
Overall Conclusion
The company gives and highlights the separate areas for the discussion of the assets in their report. Since there are good number of the visualizations for their discussions on the financial assets, the quality is good.
Resources and Relationships: Physical Assets
Report Extract
Extracted from page number 30 onwards.
(Land Securities, 2020)
(Land Securities, 2020)
(Land Securities, 2020)
(Land Securities, 2020)
Report Critique
The details and descriptions of the physical assets is important for the company. The report has vivid explanations in different sections of their report. This makes them clear and transparent with respect to the net income generated through the properties and investments made towards them
Accessibility
Since the properties are important for Land Sec, one may find them under the financial reports. The discussions are linked at different places in the Report, thus, it becomes easier for the reader to know where to reach and know more and get details for various reasons. There are different headings for their discussions and explanations are given for it.
d. Comprehensiveness
There are discussions on different kinds of portfolios in the net rental income like the London Portfolio, Retail Portfolio, and Combined Portfolio. The details are shown against the net rental income for the entire year from important physical assets. Since the company is a real estate industry, the physical assets are the properties for them. Thus, their discussions are restricted to the life for like investment properties, developments, various programs, acquisitions, etc. There are inclusions of trading, selling and investment properties also. These are discussed in their investments. The valuation is done for their shopping centers, outlets, retail parks, leisure and hotels, central London shops, etc.
e. Overall Conclusion
Since there are good number of the tables and notes for the inclusion of the physical assets and their varieties for the revenue that is being generated for the company, the quality is good.
Resources and Relationships: Customer
Report Extract
Extracted from page 2 of the Annual Report which gives the importance to the status of the customers.
(Land Securities, 2020)
Report Critique
The customers make center of attraction for the company. As a real estate industry, there are developmental projects in different versions for the customers and their experience of the products designed from the side of the company.
(Land Securities, 2020)
Accessibility
It is not easily discussed and found in the Annual Report. One has to search for the relationships that has driven the company in many ways to develop new projects and attract their investors for the future projects with focus on customers.
Comprehensiveness
It is clearly highlighted in the purpose and vision that the company is providing the right space for their customers and communities in their business model. In fact, the most important value for them is through the customer service. The projects are show cased in their cover pages and linked to their website also. Their developmental projects like “MYO” stands for the new generation of the customers and begins the new business ventures. The move is from the construction to the customer service. However, the company recognizes the skill shortages also in the communities. Thus, their experience is to provide better place to the employment and give a career option to the individuals. They focus on the “heightened customer experience”. The big drivers are revealed through
a. Changes in the working ways
b. Changes in the shopping sprees
c. Changes in ways of buildings
d. Changes in the life styles
e. Changes in the expectations moving around the sustainability
The social inputs focus upon the relationships with the customers. The physical inputs drive upon requirements of the customers in the market. The portfolio quality focus is upon the customers.
Overall Conclusion
Since the customers and the relationship with them is spread and expanded in the entire Report and is not easily accessible for the readings on them, the quality is average.
1.9 Resources and Relationships: People & Culture
Report Extract
Extracted from page numbers 14 and 71
(Land Securities, 2020)
(Land Securities, 2020)
(Land Securities, 2020)
Report Critique
People and Culture play important to Land Sec. They thrive more on the experiences given to the people through various real estate projects and take experiences from the people. This makes them absolutely “people centric” company.
(Land Securities, 2020)
(Land Securities, 2020)
Accessibility
The details are not easily accessible. One has to search for the different sections of the report. This is cumbersome and time-consuming task.
Comprehensiveness
The company maintains a customer centric culture. Their strong culture is through the employee engagement and listen to them carefully. There are meetings between the Chairman and Employee forum to know more about the culture. There is proper alignment between the customer centric culture and values of the company. The most important culture is “Experience” for the company. This is observed in their values also. Under the social inputs, the company thrives on gender, ethnicity, culture, socio-economic background, etc. There is risk culture identified in the business. Thus, importance of the Audit Committee.
Overall Conclusion
There is no one heading dedicated to the customer or their experiences. The report highlights the markets and then discusses about the people and culture. This is not a good quality for the company as they value their customers in the first place.
1.10 Resources and Relationships: Innovation
Report Extract
Extracted from different page numbers.
(Land Securities, 2020)
Report Critique
There is importance for the innovation for the company through the shifts bending towards the customers. Thus, they get the regular feedback from the customer experiences in different ways and introduce new products in the markets.
Accessibility
It is not easily accessible and one has to really search for different perspectives on the innovations by the company.
Comprehensiveness
One of the most important value for the company is innovation. There are innovations in the real estate products. It is an area of focus for 2019 and 2020 to introduce innovation in construction and bring in new products and services to their customers. It is present in their physical approaches and aim at “sustainable design and innovation”. They do focus on the manner in which it is going to be measured for the innovations. They did achieve their targets through introduction of retail such as Black Box in Trinity Leeds. They are focusing on diversified income streams through innovations in retail industry. In order to bring on the innovations, the company has identified a number of customer persona wherein different roles are seen for their customers through interactions, understanding the customers, their actions, manner of their performance, etc.
Overall Conclusion
The discussions on innovation for the company is again not dedicated under one particular topic or heading. It is spread across the Report and is not good in quality for the readers.
1.11 Resources and Relationships: Brands and Intellectual Assets
Report Extract
Extracted from page number 6 and 10-19.
(Land Securities, 2020)
Report Critique
Brands and intellectual assets play an important role for Land Sec. Since company is not focusing only on the real estate and there is competition in the market, they are introducing and launching products in most innovative manner. It is with this reason, they are including local and global brands into their retail sector and combined retail industry with the real estate products in the society.
Accessibility
It was not easily accessible in the report. One has to search for the facts across the Report.
Comprehensiveness
The retail sector for the company is confined to different locations across the globe. Thus, the company is facing challenge. Thus, they consider themselves to be a great brand and are in constant competition in various locations. Their vibrant brands are leisure, food and hotel operators and these form the diversified income base for the company. The focus is on the retail sector for the company as it provides them the opportunity to attract the emerging consumer brands in the markets. They are utilizing the gap opportunities in the markets. Their brands are present through the retail industry. They are innovative in launching their products like “Refill Me” wherein 7.7billion plastic bottles are purchased in UK. For good customer experiences, the company has included consumer brands into their business portfolios.
Overall Conclusion
Brands and Intellectual assets form the core of their innovations in the market. Thus, one is not comfortable in see this topic under one title or the heading. In a way it is not good quality also. However, one has to appreciate their hard work in explaining details pertaining to it here and there in the Report.
1.12 Resources and Relationships: Internal Process & Supply Chain
Report Extract
Extracted from page no. 47 from Annual Report 2019 and webpage focusing on “working with our supply partners” (Land Securities, 2020) and (Land Securities, 2020).
Report Critique
The company works on cyclical model and gives importance to the internal processes and supply chain partners. They have very good rapport with their partners in the supply chain areas. The problems or issues are solved with their supply chain partners.
Accessibility
It is not easily accessible and discussed at different parts of the report.
Comprehensiveness
The company is into charity partnerships helping the community with creating opportunities to work, give training academies and show to real world. Thus, the importance to their project “Bounce Back” and launched training academies across the London prisons. This was done through their engagement with their supply partners. The company focuses on the manner they are treating their partners and supply chain individuals. They follow a cyclical model of working with the commercial property projects. There are certain supply issues observed in the management of the company. They thrive upon being “partner of choice to their supply chain”. Their long-term goal is through “resilience to their supply chain”. It is the driving competition for the company and forms an advantage for them to sustain in the society. The issues of “Gunwharf Quays” and “Blue water” were resolved with help of their supply chain partners and launched the solution for the hard to recycle product in the market.
Overall Conclusion
Though there is importance given to the supply chain partnerships, the overall conclusion is that proper attention has not been given or presented in quality manner. It lacks the quality.
1.13 Performance: Operational Performance
Report Extract
Extracted from page number 130 and 180-185.
(Land Securities, 2020)
(Land Securities, 2020)
(Land Securities, 2020)
Report Critique
The report reveals the net income through operations. A separate department to take control of operations across the locations.
Accessibility
Search shows that details are present under the financial report. Separate headings are present for the discussions. However, they are not very clearly mentioned. The visualizations of the tables and figures help one to understand them more.
Comprehensiveness
This is through the tables and figures shared in the Report.
Overall Conclusion
Not a good quality and it should be covered in different section.
1.14 Performance: Economic Performance
Report Extract
From “Our Economic Performance-2020” and from page no. 1.
(Land Securities, 2020)
(Land Securities, 2020)
(Land Securities, 2020)
Report Critique
The details are presented in clear and transparent manner. The outlay is perfect in the report.
Accessibility
Easily accessible through their website. Different sections are present and headings are clearly marked out. There are good numbers shown with the project pictures and explanation to each one of them.
Comprehensiveness
The report discusses on the economic impacts from company in the immediate communities. Highlights global economic conditions and giving job opportunities.
e. Overall Conclusion
It is excellent in quality and presents transparency at its peak.
1.15 Performance: Social Performance
Report Extract
Through the separate Report titled “Social Contribution”.
Report Critique
The separate Report on the social inputs gives real picture of the company. It highlights the social activities and the manner the company has given its contribution towards the society.
(Land Securities, 2020)
(Land Securities, 2020)
(Land Securities, 2020)
Accessibility
It is easily accessible through the company’s website.
Comprehensiveness
The report charts the details of various activities and projects involved toward the community. There are projects focusing on investing in local youth, creating opportunities for the individuals with the housing needs, development of the inclusive workforce and capture the diversifications in it. There is a support for the people to prepare them for the labor markets.
Overall Conclusion
It is awesome in quality.
1.16 Performance: Environmental Performance
Report Extract
Extracted from “Green Bond Framework” and “Land Sec Green Bond Framework-Second Party Opinion-Sustainalytics”.
Report Critique
Both the reports give a clear and open picture of the goals and aims of the company towards the environment and steps taken to protect the environment through its real estate projects and investments towards these projects.
Accessibility
The reports are easily accessible through the website of the company. The discussions are very clear and enough explanation is portrayed through them
Comprehensiveness
There are details about
Summary of the four core components of the Green Bond Principles 2018 comprising of use of the proceeds, project evaluation and selection, management of the proceeds and reporting of the same.
Discusses on leadership in resilience, detailed discussions on the four core principles of the Green Bond Framework. It also gives the reason for the second opinions also.
Overall Conclusion
Overall conclusion is awesome as the company has given its contribution through “Green Bonds” and explains it very nicely. Thus, the quality is simply awesome and excellent one (Land Securities, 2020) , (Land Securities, 2020) and (Land Securities, 2020).
1.17 Performance: Segmental
Report Extract
Extracted from page numbers 134 and 184 onwards from Annual Report 2019 (Land Securities, 2020) and (Land Securities, 2020).
(Land Securities, 2020)
(Land Securities, 2020)
Report Critique
Detailed explanation and description of different kinds of segments are presented in the Report.
Accessibility
Not easily accessible. However, through search options, one may get the relevant information.
Comprehensiveness
It is discussed under hidden parts like
“Generation Rent” covering youth in UK
Diversified market segments
Growing experience of the consumer segments
Revenue Segments
Two main segments of the company: London and Retail
Segmental information-London Portfolio and Retail Portfolio
Overall Conclusion
The quality is not so bad. It has excellent discussions around their innovativeness in the matters of the segmentation. Thus, an average quality towards it.
2.0 Reporting of material matters
Report Extract
Extracted from page no. 85 onwards.
(Land Securities, 2020)
(Land Securities, 2020)
Report Critique
This helps the company to evaluate its own performance and allocate the performance materiality towards the audits of each component of the Group. Accordingly, the materiality is applied in planning and performing the audit.
Accessibility
It is easily accessible and presents good discussions with help of the Tables and Charts.
Comprehensiveness
Discusses the importance of the materiality in audit. This allows auditing of each and every component of their business. Thus, honesty, transparency and clearness in their reports is perceived for the external customers and clients.
Overall Conclusion
Since it gives the financial importance to the investors and other stakeholders, the quality is good one.