Lendlease Annual Report 2022

Our focus areas 43 Key actions Operationalising our targets Expanding on our 5-step decarbonisation pathway, we launched Regional Mission Zero Roadmaps, embedding decarbonisation into our business strategy for each operating segment. Developed through extensive engagement with our senior leaders, the roadmaps outline initiatives to reduce scope 1, 2 and 3 carbon emissions in line with our targets. Each roadmap has been tailored to account for regional variances in availability of alternative fuel options, renewable energy markets, technology solutions, supply chain maturity and government policies. Carbon offset guidance and procurement We updated our global Carbon Offset Guidance and Criteria in response to price volatility and supply issues in the voluntary carbon offset market. We are now developing a Carbon Offset Procurement Strategy to support our Net Zero by 2025 target. Renewable electricity procurement We also developed global Renewable Electricity Guidance in response to the varied frameworks, purchasing options and recognised certification schemes across our regions of operation. This will help us maintain the highest level of quality and transparency associated with the purchase of renewable electricity as we target 100 per cent renewable electricity use by 2030. Measurement and reporting for scope 3 We commenced the drafting of our House View and Position Statement on scope 3 emissions to clearly define our reporting boundaries and planned approach for measurement, tracking and reporting. Expanded disclosure and ongoing engagement In November 2021 we delivered our third annual Sustainability Investor Briefing and released our inaugural ESG Databook. We are working to evolve the ESG Databook to help improve the accessibility of our ESG data set. We have been actively monitoring the evolution of ESG reporting standards, including participating in industry submissions on the International Sustainability Standards Board’s (ISSB) exposure draft standards. The establishment of ISSB is expected to lead to globally consistent ESG disclosure standards and we will look to align our reporting to these standards. We also launched Mission Zero Ready, a global carbon literacy e-learning module to help our people understand the importance of our Mission Zero journey. Building collaboration and alignment To generate momentum for decarbonising the real estate sector, we participated in industry working groups, joined cross- sector initiatives and shared thought- leadership. Some examples include: • Participated at several events at COP26 in Glasgow. • Established a strategic partnership with Stora Enso, one of the world’s leading suppliers of sustainable timber. • Joined Built by Nature and continued to be active participants in MECLA and the SteelZero initiative. • Partnered with the Green Building Council of Australia to recognise leadership in the transition to fossil fuel free construction sites with a new challenge initiative. Mission Zero Roadmap Progress We are making progress on our Mission Zero Roadmap initiatives to reduce scope 1, 2 and 3 emissions. SCOPE 1 Fuels we burn We are working towards our goal of zero fossil fuels in construction activities by using alternative fuels, increasing the use of electric construction plant and equipment and trialling battery storage and charging infrastructure. Proof point: • Implemented an Alternative Fuels Policy to help reduce fossil fuels usage from our UK construction sites. At the end of Q3, renewable diesel accounted for 98 per cent of fuels used in the UK, including sustainably sourced low carbon alternatives such as hydrotreated vegetable oil (HVO). We are increasing the number of new all-electric developments and have begun the process of identifying legacy gas infrastructure to guide future capex aligned electrification upgrades for assets under management. This includes reducing fossil fuels used in asset maintenance and operation. Proof point: • New all-electric projects include 1 Java Street, New York, La Cienega, Los Angeles, and all new homes at the Fort Hood residential community. Above: London: The Pavilion, IQL. Opposite: London: Park & Sayer, Elephant Park. Left: Americas: Investigating mushroom remediation to create clean fill from roofing shingles.