Lendlease Annual Report 2021

Digitising for a more connected, safer and healthier world The slow adoption of digitisation in the real estate sector has been a factor in poor efficiency outcomes. During the past 50 years, real estate productivity has declined by 19 per cent compared to average productivity across all other industries rising by 153 per cent. As digital solutions emerge, Lendlease is forging new design and operational standards, processes and partnerships to simplify the interdependencies in the built environment. Together with some of the largest and best in class organisations such as Google Cloud, Stora Enso and JCI we aim to transform the property value chain by harnessing collective knowledge through digital technology and data insights. Our new Product Development Centre in Singapore is part of a wider digital ecosystem of innovation that includes centres in Silicon Valley and Sydney. The foundations for long term transformation are being assembled. We anticipate this will deliver products to market faster, and more sustainably and safely, thereby creating value for customers and communities. Keeping people safe Data insights allow us to simulate the response of building fabrics to changes in external conditions and identify risks prior to the commencement of construction. Using digital platforms, we model the safe positioning of cranes, and identify hidden risks and opportunities to assemble and operate buildings according to our high safety standards. Accelerating speed to market We constantly challenge the way we do things in search of a more efficient and consistent approach. The implementation of digital platforms is expected to improve the timeliness and quality of decision making by providing best practice methodologies, frameworks and tools for the entire project lifestyle. One Lendlease Interactive (OLi), launched into our Construction portfolio this year, helps manage more than 230 projects1 and future business opportunities valued at c.$60 billion. This project management platform provides greater consistency across our operations and the ability to digitise discrete processes, such as our investment risk analysis. It enables data to be utilised more comprehensively and therefore enhances our decision making. Our agile development approach to OLi caters to new functionality added almost weekly. Additionally, our digital solutions, such as digital twin technology, are set to: • Simplify and accelerate the built form process • Reduce project costs • Enable us to design hundreds of scenarios to develop and and assemble a building. Designing healthier assets for people and the planet Buildings and construction are responsible for 38 per cent of all carbon emissions in the world, with the operational emissions of buildings accounting for 28 per cent.2 We are investing to create smarter, more highly connected buildings. Digital technology is used to monitor elements such as air quality, waste consumption and energy efficiency. The resulting data insights provide the ability to test designs to improve building performance, including the abundance of natural light and reduced carbon footprints. At Barangaroo, we are testing innovative and renewable energy resources: • Solar panels integrated with a green roof to improve energy efficiency and output • Using maggots to process food waste into animal feed and fertiliser. At Milan Innovation District, data is being collected on the materials we dismantle and demolish. This enables the monitoring of recycling and the use of the circular economy. More broadly, the connectivity features of our buildings, combined with customer focused wellness programs, enable the delivery of wellness outcomes to our customers. This year, Lendlease became the world’s first owner of commercial buildings certified with a WELL portfolio rating from the International WELL Building Institute (IWBI). We achieved this at scale across a portfolio of buildings totalling 569,216 square meters (6.1 million square feet) and benefiting nearly 60,000 people. Digitisation Targeting cost reduction in project costs Targeting improved efficiency To deliver on our targeted production of more than $8 billion per annum , Lendlease is sourcing and developing new tech skills, capabilities and digital solutions. 1. Includes origination opportunities, projects in bid, conversion and delivery. 2. 2020 Global Status Report for Buildings and Construction. 25 A sense of place 24 Lendlease Annual Report 2021 A Sense of Place