Lendlease Annual Report 2021

Shanghai: Ardor Gardens, Qingpu District Artist's impression Our approach recognises the nature and level of risk we are willing to accept to achieve our strategic goals and key performance targets to create securityholder value. Governance in a rapidly changing environment Our Business Continuity Enterprise Risk Framework has been exercised beyond the defensive, to add value for our employees, business partners and customers. Our sites have been operating under enhanced COVID measures so that we can continue to deliver our projects safely and in line with expectations. The impact of COVID from an operational perspective has been felt around the world. Operational Enterprise Risks such as Execution and Commercial have experienced the greatest impact in the reporting period. As the Group continues to actively work through understanding and addressing the long term impacts of COVID from an operational and strategic perspective, our risk teams around the world remain active participants in government and industry forums to help reshape the future. Our areas of focus for business resilience are: Health, Safety and Wellbeing: The health and safety of our places and people is our priority. The Board and Leadership Teams continue to provide frequent and transparent communications to the business to keep our people well informed and safe. Operational Risk: Global COVID steering committees are in effect and continue to receive weekly updates and insights relevant to our business. Lendlease is prepared and has clear processes for the management of interruption to our operations and people. Business Continuity and Crisis Management: During the reporting period Crisis Management Plans were activated and followed in response to COVID impacts. The business was technologically prepared which empowered employees to work remotely. Business continuity plans are reviewed and updated periodically. Supply Chain Resilience: We recognise that sustainable supply chains strongly align with our strategic priorities, allowing us to minimise risk and maximise opportunities for collective value creation across economic, social and environmental objectives. Supply chain resilience is an important imperative which is supported by our Enterprise Risk Framework through the following relevant Enterprise Risks and our Risk Appetite Statement: • Commercial Underperformance: failure to execute given reliance on supply chain to deliver • Regulatory and Counterparty: supply chain ethics fail to meet our standards • Non-scalable Growth: the need for strong global and regional supply chain partnerships are required to support in a global context or in dynamic supply chains. Our commitment to the UN Guiding Principles on Business and Human Rights has been memorialised in our Modern Slavery Statement (FY20). Our phased approach scopes potential modern slavery risks that we may either cause, contribute to, or to which our operations may be directly linked. We will continue to evolve and mature as envisaged in our statement. Responding to climate related impacts The business also recognises the risks and opportunities associated with climate change. Lendlease supports the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and in 2018 committed to producing annual disclosures that consider these recommendations. We have a phased approach to integrating the recommendations of TCFD over time, and this is our third annual TCFD disclosure. Our disclosure continues to evolve as we enhance our management of climate related risks and as advancements are made in the maturity of climate related financial disclosures. Risk and Climate Related Resilience 47 A sense of place 46 Lendlease Annual Report 2021 Risk and Climate Related Resilience