Lendlease Annual Report 2021

Our people are the greatest contributors to our success and enable us to fulfil our purpose. Together we create value through places where communities thrive . To deliver our refreshed business strategy we need to attract, retain and invest in our people to have the right capabilities to succeed into the future. We aspire to create a work environment that: • Cares for its people, with safety and wellbeing our priority • Provides inspirational leadership with a clear direction for the future • Is team oriented, inclusive and diverse • Fosters a culture aligned to purpose and values that drives the way we operate with each other and creates a sense of belonging. To support our aspirations our people strategy has focused on engaging our leaders and developing leadership excellence. We are working to foster an enterprise first mindset and sharing knowledge globally. FY21 was a challenging year as we adapted to new ways of working. Supporting our people during the pandemic has been our priority. From enhanced communications and technology enabling remote work to providing additional funding for frontline workers (see Hardship & Wellbeing Fund on page 35), we are invested in the health and wellbeing of our people. Developing and deploying key talent As we accelerate the delivery of our global pipeline of projects, we continue to invest in the development of our people’s capabilities. This year we launched our Leadership Excellence Program aimed at driving leadership engagement and providing our leaders with the right capabilities to inspire and lead our people. We have continued to invest in the development of key talent through our Construction Director and Project Director talent programs, which shifted to virtual delivery. In FY21, our pipeline of successors for key leadership roles, along with the number of women in our succession pool, increased. For senior executive positions, we have a target of three unique successors and in our FY21 talent and succession review, 79 per cent of senior executive positions met this target. Retention of key talent has been challenging in the current operating environment. In FY21, we achieved a retention rate of 87 per cent, slightly below our target of 90 per cent or higher. We see this as an ongoing risk into 2022 as border restrictions continue to impact the mobility of talent. A sense of place – inclusive, diverse and talented 1. As at 30 June 2021. 2. For all senior executive positions, we have a target of three unique successors. We define this as succession strength. 3. Leadership roles include a number of levels in the Lendlease Career Job Framework, including executive level roles. Our People 10,825 Employees globally 1 Leadership positions held by women 3 26.9% 29.9% FY20 FY21 Succession strength 2 75% 79% FY20 FY21 Engagement scores compared to country benchmarks Australia Lendlease Group Americas UK China Japan Malaysia Italy Singapore 0 10 20 30 40 50 60 70 80 90 100  Engagement score (May 2021)   Country benchmarks (median to top quartile)   Global benchmarks (median to top quartile) Diversity and inclusion Lendlease has a diverse global workforce and we have made great progress in improving our diversity areas of focus, but we still have work to do. We are committed to creating a workplace that unites diverse minds, where respect, equal treatment and equal opportunity are the norm. Aligned with our Modern Slavery Statement, this helps us to act with integrity in our business relationships. In FY21, to strengthen our culture of inclusion, we focused on unwelcomed or intrusive language and behaviours, many of which are influenced outside of the workplace. We understand the importance of psychological safety and have further invested in the ongoing support for employee wellbeing. Our efforts not only provide support for affected individuals, but also educate for social change. FY21 diversity and inclusion actions Anti-racism Lendlease conducted a number of listening sessions in the US and UK to provide a safe space for our people to share their stories, listen and learn. This has led to a number of internal working groups focused on equity at all Lendlease touch points, internally and externally. The Americas' business established a Diversity, Equity and Inclusion (DEI) Advisory Council with a diverse mix of employees and two external DEI experts to help inform DEI strategic priorities for the region. In Australia, our Elevate RAP includes a detailed action plan to support career progression for our First Nations' employees (see RAP on page 45). Eradicating everyday sexism We created an awareness video and toolkit to bring attention to common language, behaviours and social norms that perpetuate gender stereotypes and assumptions. Resources were designed to generate self reflection and conversation. We provided tips on how to identify and address inappropriate behaviour and sent a call to action to all employees. Supporting flexible working We prioritise connection to our workplaces and our culture. We remain committed to enabling flexible work options. We established newways of working through virtual tools, events and communications to share knowledge and connect people, regardless of where they were working. Our team in Japan were quick to establish new work protocols to accommodate remote working, while maintaining team connections and a core focus on mental health. Initiatives such as using chat bots for enquiries and an online wellbeing community hub influenced our global standard, not only during periods of lockdown, but how we conduct business on an ongoing basis. LGBTQ+ inclusion and recognition Our actions add up. We continue to be recognised for our efforts in LGBTQ+ inclusion. In the Americas, Lendlease scored 100 in the Corporate Equality Index for the fifth consecutive year and achieved 'Best Place to Work for LGBTQ Equality'. In Australia, we partnered with the University of New South Wales to research barriers to LGBTQ+ inclusion on construction sites and shared insights and recommendations with the industry. Employee experience Teams are at the heart of our listening strategy and help us to understand the environment and experiences we are providing our employees. These insights help us to be responsive and provide our leaders with key actions to support our employees to thrive. In our most recent People Survey, we achieved an employee engagement result of 62 per cent. At the global level this falls below the median and top quartile benchmarks and is a concern for us, however, we see substantial variance between countries and their respective benchmarks. In our four largest operating markets, we are performing above the country median, with the UK towards top quartile scores. Consistently our highest performing area in the survey is Safety which is pleasing. To improve our engagement result our people have told us we need to provide more visible career development and pathways. This will form a key part of our People Strategy next year. Further demonstrating our strong culture of care, our most recent results also showed that employee perceptions of their manager providing support through COVID increased. Supporting our managers and employees through these challenging times remains a key focus for us as we deliver on our $114 billion pipeline. 41 A sense of place 40 Lendlease Annual Report 2021 Managing and Measuring Value