Lendlease Annual Report 2022

Year in review 9 Creating a sustainable future The world is warming at an unsustainable rate. Only through collective global action will we avoid a climate catastrophe. Our carbon reduction targets are among the most ambitious for the real estate sector globally. Industry leadership in sustainability is becoming increasingly valued by our customers and reflected in the rapid increase in demand for sustainable assets. We’re now well advanced on our Mission Zero Roadmaps to eliminate carbon emissions and we’re creating significant social value. Our progress against these targets is highlighted from page 42. In addition, Green, Social and Sustainability (GSS) financing now accounts for more than 60 per cent of our total facilities. Our people are the heart and soul of our company Without doubt, our people are the driving force of our business and have been resilient in adapting to how they perform their work. We have overhauled our approach to leadership, recognising culture is set from the top. Greater emphasis has been placed on career development, knowledge sharing and alignment with securityholders’ interests. The implementation of a range of new programs, including leadership development, accelerating diverse talent and technical training underpin our investment in people. A commitment to a diverse and inclusive working environment reflects our belief that to thrive as an organisation everyone needs a place where they feel included and valued. Service and partnering ethos We have a diverse range of customers – from first homeowners to governments with a civic refresh agenda – who trust us to deliver great outcomes for and with them. It is a privilege to serve and partner with our customers. To remain focused, each year we undertake a broad range of customer listening and insights research to improve our customer experience and outcomes. Outlook We have entered the new financial year as a company that is leaner, more agile in responding to customer needs and less distracted by our legacy issues. As the world adapts to COVID, we’re witnessing a resurgence in city life that underpins our strategy. There is now significant operating momentum across the Group, providing confidence in the Create phase of our five year roadmap. While more factors are within our control going forward, we will be influenced by the external environment of higher inflation and interest rates. The Group remains on track to meet our targets of more than $8b in development completions per annum by FY24 and funds under management of $70b by FY26. We will also maintain delivery capability to support both our integrated projects and construction clients. I believe this will create lasting securityholder returns while delivering on our commitment of leadership in health, safety, and sustainability. Importantly, we have the capacity to fund our share of this significant growth potential while maintaining our financial leverage within target range. My thanks to our Board, my management team and the people of Lendlease for your unwavering commitment. Finally, to our securityholders I restate our commitment to restore securityholder returns. Tony Lombardo Global Chief Executive Officer