Aveo : Sustainability Report

2019

SUSTAINABILITY

REPORT

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CONTENTS

CEO Message..............................................................................	2	Our People..................................................................................	28
Who we are and what we do.........................................	4	Our Environment .................................................................	32
Approach to Sustainability ...........................................	10	Aveo Newstead.......................................................................	34
Our Community......................................................................	14	Our Performance .................................................................	36
Aveo Newcastle.......................................................................	18	Our Governance....................................................................	40
Our Residents...........................................................................	20	Corporate Directory...........................................................	44
Aveo Bella Vista.....................................................................	26

The Aveo 2019 Annual Reporting suite

The reports available for securityholders are as follows:

1. 2019 Annual Report
2. 2019 Sustainability Report
3. 2019 Corporate Governance Statement

2019		2019		2019
ANNUAL		SUSTAINABILITY		CORPORATE
REPORT		REPORT		GOVERNANCE
				STATEMENT

AVEO GROUP SUSTAINABILITY REPORT 2019

Our commitment & approach to sustainability

Aveo recognises the importance of operating in an ethical and sustainable manner, and is committed to delivering commercial success while championing the interests and experience of those living in

our communities.

Our values are how we achieve the vision and mission, our guiding principles;

Kindness, Care and Respect.

AVEO GROUP SUSTAINABILITY REPORT 2019

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CEO'S MESSAGE

Dear Securityholders

On behalf of the Aveo Group Board of Directors, we are pleased to present Aveo Group's first Sustainability Report.

Aveo recognises that a socially responsible company is accountable for its impact on, and has an obligation to protect and sustain the environment and communities in which it operates.

At the Annual General Meeting on 14 November 2018, Aveo confirmed its commitment to Sustainability and agreed to present Aveo Group's first Sustainability Report from FY19 onwards, including more detailed and specific reporting.

Traditionally, Aveo's approach to sustainability was predominantly environmentally focussed. However, in recognition of the importance of operating in an ethical and sustainable manner and Aveo's ongoing commitment to deliver commercial success whilst championing the interests and experience of our residents and people, the sustainability framework was expanded to ensure a more rounded and holistic approach.

As a result, Aveo's sustainability strategy has adopted a multifaceted view of the Group's operations and interactions with the wider community and environment. This approach reflects Aveo's firm belief that sustainability encompasses how Aveo conducts its business now, and into the future.

In promoting sustainable business practices and reporting against our sustainability strategy, we believe Aveo is better placed to create long-term value for key stakeholders and revolutionise the way retirement living, aged care and home care is delivered to Australians.

Key highlights for FY19

As demonstrated throughout this report, and through each Sustainability Pillar, we have made significant progress in developing our sustainability strategy and putting in place measures to track progress towards our goals.

During FY19, the satisfaction, welfare and quality of the retirement offering we provide to our residents continued to be our core focus. We are proud to report that in FY19, resident satisfaction levels were at their highest since 2014, with 83% of our residents "satisfied" or "very satisfied" with their community.

Our People are fundamental to the success of Aveo and are pivotal in the delivery of high quality services for our residents.

Aveo was recognised by key industry associations for its leadership and innovation in the provision of greater living choices for older Australians. This includes our recent developments at Aveo Newstead, Aveo Newcastle and Aveo Bella Vista, which demonstrate sustainable construction methods and designs that support sustainable living.

We continue to support many fundraising initiatives predominantly focussing on aged related health issues faced by many of our residents.

In FY19, we continued to strengthen and implement appropriate frameworks aimed at strengthening our governance frameworks and ensure we are well placed to address legislative change and community expectations.

Sustainability Committee

Aveo has established a Sustainability Committee to oversee the sustainability approach for Aveo. The Committee's sole focus is to assist the Board in building the framework, policy and actions required to become a more sustainable organisation.

The Sustainability Committee chaired by the Chief Financial Officer, formalised the Board's strategy and established Aveo's six key Sustainability Pillars: Our Communities, Our Residents, Our People, Our Governance, Our Environment and Our Performance.

Throughout FY19, the Sustainability Pillars have been embedded within the business. The Sustainability Committee, made up of key members of the senior leadership team, is responsible for defining measurable metrics for each Pillar, as well as identifying, setting and delivering the objectives associated with their pillar of responsibility.

Focus for FY20

Whilst we have made significant progress throughout the year in developing and delivering against Aveo's sustainability framework, there is still more to be done.

During FY20, the Group will focus on more comprehensive external reporting and measures to track progress on our goals. This includes establishing a system that will from 1 July 2019, measure and track emissions data for our built portfolio.

With sustainability at our core, we remain well positioned for continued growth and to consolidate our position as the market leader in retirement living in Australia. Working to improve and innovate on the provision and delivery of greater living choices for older Australians is at the heart of everything we do.

Geoff Grady

Chief Executive Officer

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Sustainability Highlights for FY19

Development and communication of the Group's new Sustainability Framework

83% Resident survey statistics Resident satisfaction is at the highest level since 2014 - 83% of residents are "satisfied" or "very satisfied" with their community

Employee engagement

Highest ever result of Employee Engagement Survey

Corporate governance outcomes

Early adoption of most of the Fourth Edition ASX Corporate Governance Guidelines

$700k Total Community Donations $700,000 total funds raised for Project Pink since 2016

Winner of the Australian Timber Award for Sustainability

For best use of sustainable design principles

The established

Sustainability framework reflects Aveo's position in the market as the leading pure play retirement living provider, who owns, manages and is the operator of Retirement Communities

AVEO GROUP SUSTAINABILITY REPORT 2019

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