Lendlease Annual Report 2021

Safety metrics Lendlease has achieved further improvements against some of our key safety metrics. Despite this, it is with much sadness that we report two fatalities on two of our operations in FY21. In October 2020, a subcontractor working on our Curtin University project in Western Australia was involved in a partial roof collapse and died from his injuries. In November 2020, an elevator fit out subcontractor was fatally injured within the lift shaft on a Lendlease project in Malaysia. As is our practice, following both incidents an independent organisation was appointed to conduct an investigation to understand the factors involved and to independently verify the application of our Global Minimum Requirements (GMRs). Our thoughts continue to be with the families of these two workers and everyone impacted by these tragic events. Health and Safety Showing care through continuous improvement We believe that a place that cares is a safe place to work and we’ve gone to great lengths to embed a culture of care across our organisation. Our 2021 GMRs Our GMRs are our high standard framework for how we manage environmental, health and safety risk across our business. In FY21 we launched the fourth edition, our 2021 GMRs, which incorporate updated work practices, lessons learned over the last five years and have a greater focus on the health and wellbeing of our people. We show care through the application of our GMRs from origination, so our people know when they come to an operation they are coming to work at a safe place. EH&S Passport To help employees understand how to apply the 2021 GMRs, Lendlease launched new online mandatory training called EH&S Passport. The training reinforces the role we all play in safety, emphasising the everyday decisions we make and how they impact the safety of others. 95 per cent of our global workforce completed the EH&S Passport within 90 days of launch Supporting our people through COVID and beyond Recognising the potential impacts of the pandemic on our people, we invested in the development of Mental Health First Aid skills and actively embedded our program into the organisation's culture. One of the ways we did this was by emphasising wellbeing in performance conversations. This investment was particularly important in construction, knowing workers in this segment are six times more likely to have a mental health illness. 800 employees trained as Mental Health First Aiders across our global network Gold Australia awarded top status as a Skilled Workplace with Mental Health First Aid (MHFA) Australia Certified as Global Healthy Workplace for the third time Silver Asia received accolade in workplace safety at 2020 Workplace Safety and Health awards Gold Europe topped the 2020/21 Workplace Wellbeing Index A sense of place – a safe one 1. A Critical Incident is an event that caused or had the potential to cause death or permanent disability. This is an indicator unique to Lendlease. 2. The Critical Incident Frequency Rate (CIFR) is calculated to provide a rate of instances per 1,000,000 hours worked. 3. The Lost Time Injury Frequency Rate (LTIFR) is calculated to provide a rate of instances per 1,000,000 hours worked. 4. Australian Council of Superannuation Investors (ACSI). Safety in Numbers: Safety Reporting by ASX200 Companies (September 2020). Lendlease Hardship &Wellbeing Fund Our Hardship & Wellbeing Fund was created in 2020 to help employees experiencing genuine hardship due to the impacts of COVID or other reasons. To date, around $4.5 million has been distributed across our regions. In some areas of Lendlease, the impacts of the pandemic have been particularly hard. In 2021, we utilised the Fund to make a one-off payment to a number of our frontline and customer facing workers who went to great lengths to support our customers during the pandemic. The Fund addressed the immediate financial need, but we want to set our people up for success in the long term. In FY21 we engaged with our partners to deliver financial wellness education via a series of webinars to equip our people with the tools and knowledge to make informed financial decisions. Empowering our people with tools at their fingertips. At Lendlease, when it comes to safety, we’re all in. We have invested in the latest technology to empower our people to make good decisions around safety, in the moment, to prevent incidents from happening. Safety at Lendlease (S@L) A 2019 PwC Culture & Climate survey identified the need to find new and interesting ways to engage our people around the GMRs. Utilising the latest in artificial intelligence technology and our existing communications platform of Microsoft Teams, our new chat bot S@L gives all employees across Lendlease on demand information on how to apply the GMRs to workplace activities across the project lifecycle. Enablon First launched in 2016, our Enablon Go mobile app makes it easy for anyone at Lendlease to take safety reporting into their own hands and record safety observations as and when they happen. In FY21, we passed 1 million observations via a mobile device. Our highest priority is ensuring our employees, subcontractors, and all those who interact with our places return home safely each day. Learning from incidents Getting our people home safely each day is our highest priority. Anything less is unacceptable. To learn from any serious incident and work to prevent any repeats we address the findings and recommendations from any independent incident investigations and work with internal and external designers, engineering consultants and supply chain partners to improve design, to mitigate risk and apply improved quality assurance processes. The incident in Malaysia occurred when a worker was accessing the external side of an elevator car to install the interior handrail. In response: • Lendlease issued a global EH&S alert across all operations to prohibit the procurement of elevator cars requiring external access for handrail fit out • Our third party provider now prohibits designs that require external access for lift car handrail fixation. In addition, through our collaboration they will now provide external reporting of workplace fatalities in their annual Sustainability Report • Lendlease has added ‘elevator installation/fit out’ to our list of acute high risk activities in the 2021 GMRs that require independent third party review of the proposed work methodology. We continue to share our learnings with the broader elevator and construction industry to drive improvements in design and installation methods and processes. Benchmarking industry reporting Increasing range of safety reporting data publicly available Basic/standard reporting Inclusion of industry metrics Unclear which persons or scenarios included No safety reporting 70 ASX200 companies4 Transparent reporting Consistent performance data Includes all business scenarios Increasing range of persons and scenarios included in statistics Included in Lendlease safety reporting data, including fatalities Employees Yes Consultants Yes Contractors Yes Subcontractors (incl. labour hire) Yes Visitors Yes Members of the public Yes All businesses in all operating geographies Yes All operations regardless of contractual or statutory health and safety responsibilities Yes Key performance insights 91% 94% Operations without a Critical Incident 1 FY20 FY21 0.70 0.66 Critical Incident Frequency Rate 2 FY20 FY21 1.5 1.8 Lost Time Injury Frequency Rate 3 FY20 FY21 35 A sense of place 34 Lendlease Annual Report 2021 Managing and Measuring Value