To the Management and Stakeholders of City Developments Limited

Ère-S was commissioned in May 2009 by City Developments Limited [CDL] to provide assurance that the content of CDL's Sustainability Report 2009 is accurate, reliable and supported by solid data collection systems.

The assurance engagement covers the Sustainability Report information related to CDL's strategy and operations in the context of sustainability. This includes sustainability-related figures, strategy statements, management systems and associated processes, policies and procedures. The assurance engagement was drawn on the ISAE 3000 and AA1000AS standards, which were used as guidance for the audit process, methodology, evaluation criteria and assurance report formatting.

Assurance Level

Ère-S provided an overall moderate level of audit, which includes evidence gathering from sources with simple data verification. For qualitative information, the assurance is based on evidence that the statements truly reflect CDL's operational and strategic activity.

The following criteria were used to evaluate quality of the report content; Accuracy which is defined as the level of correctness of information in regard to the source it is obtained from, Reliability which is defined as how the information is supported by reliable data collection systems and Integration (for qualitative information) which is defined as the level of support from the management and the evidence of implementation.

For substantial elements, a more detailed audit analysis based on the AA1000 AccountAbility Principles (materiality, inclusiveness and responsiveness) was used when possible but did not include in-depth and multi-level research, statistical analysis, stakeholder engagement analysis and company performance analysis.

Methodology

Preparation of the assurance engagement consisted of sorting report information and defining audit requirements. Around 160 statements and data sets were identified in the Sustainability Report and classified according to the relevant data owners and the type of evidence required for the audit process.

The audit phase included 12 Interviews to collect evidence of data and obtain an understanding of the underlying processes. Interviewees included key individuals from the departments of Environment, Health & Safety, Human Resource, Projects, Property & Facilities Management, Corporate Communication, Corporate Sec Services, Internal Audit, Customer Relationship Management, Administration and the Senior Management Team. A small number of employees, suppliers and external agencies were also interviewed.

Information and answers collected during the audit were assessed and recommendations were expressed immediately to allow amendment by the CSR reporting team.

Findings

Overall, a good quality level of data source and calculation methods was found. The accuracy of the majority of the elements audited could directly be validated through the provided proof of evidence and detailed descriptions of CSR-related processes, policies and management systems. Reliability was often enforced by the confirmation of the same evidence from multiple interviewees.

The audit uncovered a small number of minor inaccuracies that were due to incomplete calculation methods. These issues were promptly assessed and amended by the CSR reporting team. The rest of the recommendations expressed by Ère-S covered general improvement of the report, such as modification of wording and formatting or use of additional information found during the audit to reinforce the relevance, transparency and precision of current statements and figures. The CSR reporting team has taken note of the recommendations and amended the report accordingly.

Assurance Conclusion

In our opinion, the findings of the assurance engagement provide confidence, within satisfactory limits, that CDL Sustainability Report accurately represents the company sustainability profile and performance for the reporting period. We are confident that the statements and figures provided in the report are supported by comprehensive and verifiable data and that the underlying management processes audited are aligned with the sustainability strategy and policies of the company. We are also satisfied that the report is an appropriate representation of CDL's engagement to sustainability reflected in the top management of the company.

Moving forward, the following recommendations have been made:

All KPIs, data collection procedures and calculation methods should be clearly defined and documented in a protocol to prevent the same minor inaccuracies found in this report and reinforce its coherence and comparability.
 
A more detailed materiality based assessment should be undertaken to determine new and strengthen current areas of focus for the report content. This should also include processes for stronger stakeholder engagement.

The above findings and additional suggestions for improvement have been presented to the management of CDL in a more detailed assurance report.

Responsibility and Limitations:

Ère-S responsibility is to execute the assurance engagement, prepare the assurance report and this assurance statement for the management of CDL alone and for no other purpose. All information including statements and figures contained within the CSR report are the responsibility of CDL.

Ère-S engagement focussed on sustainability performance and activities of CDL during the reporting period. However, Ère-S did not confirm whether or not all material issues relating to stakeholders engagement or sustainability performance are included in the report and figures or statements not related to sustainability and already supported by existing documents, such as the annual report, were not covered in the audit. These include all or part of the organisation profile (GRI disclosures 2.1 to 2.10), corporate structure and corporate financial and economic performance, risk management, technical descriptions and figures of buildings, equipment and production processes. Finally, Ère-S did not assure the CSR report for GRI application level check.

Independence:

Ère-S has been engaged by CDL to review the elements of its Sustainability Report and was not responsible for any prior work on the report. The activity of Ère-S is independent to CDL and contains no other financial interest in the business operation of CDL.