2016 CORPORATE RESPONSIBILITY REPORTFOCUSED PLACEMAKING2016 CORPORATE RESPONSIBILITY REPORT<img alt="" src="/SiteCollectionImages/CSR/materiality_stakeholder_engagement.jpg" style="BORDER:0px solid;" />



Sustainable Growth > Materiality & Stakeholder Engagement<div class="restrictInterior generalContent"><div class="ms-rtestate-read ms-rte-embedcode ms-rte-embedil ms-rtestate-notify s4-wpActive" unselectable="on"><div class="restrictInterior generalContent" unselectable="on"><h1 unselectable="on">Materiality & Stakeholder Engagement</h1><h2>Corporate Responsibility Materiality Assessment</h2><div>In 2015, Forest City conducted a materiality assessment to identify and prioritize our most significant CR topics. As part of this assessment, we conducted extensive industry research and a benchmarking analysis of customers, competitors, Forest City associates, industry groups, suppliers and REIT peers. We mapped our value chain to identify the key stakeholders that impact or are impacted by Forest City. We engaged key internal and external stakeholders to determine the most significant CR topics. The assessment includes perspectives of the following stakeholders:</div><div class="crreportColumnGroup"><div class="crreportColumns crreportColumnHalf"><div><ul><li>Communities, cities and government partners</li><li>Tenants and residents</li><li>Associates</li><li>Suppliers</li></ul></div></div><div class="crreportColumns crreportColumnHalf"><div><ul><li>Industry thought leaders</li><li>Investors</li><li>Voluntary frameworks and certifications</li><li>Activists, media and NGOs</li></ul></div></div></div><div>Through this research, we aggregated external stakeholder feedback regarding Forest City’s current CR practices, explored how Forest City’s decisions impact these stakeholders and drafted recommendations for management of CR topics. Internal stakeholders identified business opportunities and topic alignment with the company’s strategic plan. From this process, we determined Forest City’s priority corporate responsibility topics shown below. </div><h3>Relative Priority of CSR Topics</h3><div class="crreportColumnGroup" style="text-align:center;"><div class="crreportColumns crreportColumn3"><div style="text-align:center;"> <img src="/SiteCollectionImages/CSR/materiality_matrix.jpg" alt="" /> </div></div></div><h2>Stakeholder Engagement</h2><div>Forest City understands that ongoing stakeholder engagement is integral to managing our material sustainability and corporate responsibility topics and to ensuring that we are continuously improving our overall performance. Below we have identified the individuals, groups of individuals, and organizations that affect and/or could be affected by our company’s activities, products, services, and performance, and we have outlined the nature and frequency of our engagement. </div><div class="tableContainer"><table class="tableEngagement"><thead><tr><th>Stakeholder Group</th><th>Engagement Type</th><th>Engagement Frequency</th><th>Engagement Objectives</th></tr></thead><tbody><tr><td class="cellBolded" rowspan="9">Associates</td><td> “FC Voices” associate survey </td><td> Bi-annually </td><td rowspan="9"> To ensure that associates understand how their individual contributions improve our business and the lives of our residents, tenants and communities. </td></tr><tr><td> Orientation/onboarding program </td><td> During on-boarding of new associates </td></tr><tr><td> Training and development programs </td><td> Ongoing throughout the year </td></tr><tr><td> Performance Reviews </td><td> Annually </td></tr><tr><td> Company-wide town hall meetings </td><td> Several times throughout the year </td></tr><tr><td> Associate Resource Groups </td><td> Ongoing throughout the year </td></tr><tr><td> Health and wellness program </td><td> Ongoing throughout the year </td></tr><tr><td> Company-wide communications via email and MainStreet intranet portal </td><td> Ongoing throughout the year </td></tr><tr><td> Change Sponsor Program - survey to collect associate feedback on Forest City internal communications </td><td> As needed during company reorganization and transition to REIT </td></tr><tr><td class="cellBolded" rowspan="6" height="23"> Investors</td><td> Dedicated investor disclosures </td><td> Quarterly </td><td rowspan="6"> To build and maintain trust with existing and potential shareholders through increased transparency in financial disclosures as well as robust corporate responsibility reporting.</td></tr><tr><td> Quarterly earnings calls </td><td> Quarterly </td></tr><tr><td> Dedicated investor relations team </td><td> Ongoing throughout the year </td></tr><tr><td> Annual Report and 10K Supplemental Package </td><td> Annually </td></tr><tr><td> Corporate Responsibility Report </td><td> Annually </td></tr><tr><td> Investor meetings and events </td><td> Annually or more frequently as needed </td></tr><tr><td class="cellBolded" rowspan="5"> Communities (New Development) </td><td> Dedicated community affairs teams and developers </td><td> Continuous throughout the year </td><td rowspan="5"> To obtain insight into our neighboring community members’ individual needs, challenges and requirements, and work to integrate their feedback into our developments’ mix of functions, design, and community amenities. Through this engagement, we ensure the creation of longstanding, successful developments that are responsive to local needs and complement and integrate with existing neighborhoods.</td></tr><tr><td> Community town hall meetings and other direct engagement (e.g., emails, door-to-door canvassing, surveys) </td><td> Ongoing during the entire development process </td></tr><tr><td> Hosting community events </td><td> Several times throughout the year, varies by property </td></tr><tr><td> Community hotlines </td><td> Ongoing throughout the year </td></tr><tr><td> Community Benefit and Development Agreements </td><td> Continuous throughout the new development process </td></tr><tr><td class="cellBolded" rowspan="4"> Tenants (Operating Properties) </td><td> Hosting tenant social events (e.g. meet-and-greets) </td><td> Several times throughout the year, varies by property </td><td rowspan="4"> To foster and strengthen the sense of community within all Forest City properties and developments, and to uphold a safe and welcoming environment at all Forest City properties. To obtain insight into our residents’ and tenants’ individual needs, challenges and requirements, and work to integrate their feedback into daily operations. </td></tr><tr><td> Social Media </td><td> Ongoing throughout the year </td></tr><tr><td> Active Building tenant communication system </td><td> Ongoing throughout the year </td></tr><tr><td> Resident and tenant surveys </td><td> Monthly </td></tr><tr><td class="cellBolded" rowspan="2"> Government</td><td> Direct engagement with policymakers to advocate for specific issues related to the real estate industry </td><td> Ongoing throughout the year </td><td rowspan="2"> To support candidates and ballot issues at the local, state and federal levels that align with Forest City’s strategic objectives and core values.</td></tr><tr><td> Indirect engagement through industry associations (e.g., Real Estate Roundtable) </td><td> Ongoing throughout the year </td></tr><tr><td class="cellBolded" rowspan="3"> Industry Associations</td><td> Active membership and participation in meetings and conferences to advance group objectives </td><td> Ongoing throughout the year </td><td rowspan="3"> Regularly engage with key industry groups to help advance important issues related to sustainability and the real estate industry in general.</td></tr><tr><td> Maintain leadership roles in several key industry associations and working groups </td><td> Ongoing throughout the year </td></tr><tr><td> Partner with other members to advance thought leadership on key topics and issues </td><td> Ongoing throughout the year </td></tr><tr><td class="cellBolded"> Contractors, Vendors & Suppliers</td><td> One-on-one meetings </td><td> Quarterly for our largest vendors/suppliers, as needed throughout the year for other vendors </td><td> Utilize internal targets and regular one-on-one engagement with suppliers and contractors to ensure the sustainability of Forest City’s supply chain, including the growth and success of minority- and women-owned businesses.</td></tr><tr><td class="cellBolded" rowspan="4"> Media</td><td> Press Releases </td><td> Several times throughout the year </td><td rowspan="4"> To provide increased transparency with all Forest City stakeholders on significant events through regular interactions with media outlets.</td></tr><tr><td> Interviews to report on Forest City’s financial and corporate responsibility performance and discuss major events related to company operations </td><td> Several times throughout the year </td></tr><tr><td> Host media events for important milestones, such as groundbreakings, facility openings, and community events </td><td> Varies depending upon development schedule </td></tr><tr><td> Social Media (both corporate and property-specific) </td><td> Ongoing throughout the year </td></tr><tr><td class="cellBolded" rowspan="5">NGOs</td><td> Active membership and/or leadership by associates in NGO groups </td><td> Ongoing throughout the year </td><td rowspan="5"> To support our core value of community involvement by giving time, talent and resources through NGOs and other non-profit organizations.</td></tr><tr><td> Company-wide Community Day of Volunteering </td><td> Annually </td></tr><tr><td> Skills-based and pro-bono volunteering </td><td> Ongoing throughout the year </td></tr><tr><td> Employee Volunteering </td><td> Ongoing throughout the year </td></tr><tr><td> Corporate philanthropy </td><td> Annually to several times throughout the year, varies by program </td></tr></tbody></table></div> </div></div></div>Materiality & Stakeholder EngagementSustainable Growth > Materiality & Stakeholder Engagement