Lendlease Annual Report 2022

Risk & climate-related resilience 51 An independently appointed ‘Voice of Risk’ executive continues to form part of each Regional Leadership Team. This individual continues to play an objective role to challenge both the business and the risk function on strategic and operational risk management. Our Risk Management Framework is outlined above. Each of the Enterprise Risks has a cascade of granular risks and opportunities which are tactical and operational. These are supported by Group policies and Risk Appetite Tolerances. This facilitates a portfolio lens across our risk profile. Three Lines of Defence 1 Business Operations Regional Leadership Team 2 Group Functions 3 Internal and External Audit Board and Committees Global Leadership Team Strategic Direction Risk Management Framework Enterprise Risks Reset Create Thrive ● Cyber, Data Governance, Asset Protection ● Disruption ● Geopolitical ● Business Continuity ● Corporate and Environmental Sustainability ● Health, Safety and Wellbeing ● Non-Scalable Growth ● Performance, Commercial, Execution ● Corporate Culture ● Customer ● Regulatory and Compliance Group Policies* Market Operational Supporting Tools & Techniques ● Acceptable use of IT ● Information Security ● Records Management ● Risk Management ● Business Travel ● Environment, Health & Safety ● External Communications and Continuous Disclosure ● Sustainability ● Tax ● Treasury ● Conduct Breach Reporting ● Customer Complaints ● Employee Code of Conduct ● Privacy ● Political Donations * Non- exhaustive list An overview of global market risks across the business: Geopolitical Heightened geopolitical tensions are impacting the global economy, creating volatility across the global markets, reflected most notably in higher energy prices and rising inflation. We continue to actively monitor the global political and economic risk landscape, ensuring our resilience framework is up to date to support the business and our Board in understanding our potential exposures and mitigation strategies. Disruption of supply chain Global supply chain disruption and dependency is being actively managed across all areas of the business, with mitigation strategies in place across key areas including higher inflation, construction cost volatility and surety of supply. COVID Despite an easing of restrictions across our operations, notwithstanding extended lockdowns in China, we are cognisant that the business will continue to be challenged by COVID from both a strategic and operational perspective. Our risk teams work closely with the business, governments and industry to prepare for disruption and support business continuity across the Group. Our global Supply Chain team play a key role in managing the related exposures flowing from the market risks noted above. The team supports procurement activities across the business by leveraging our global scale through our preferred supply chain partnerships. In addition, the Supply Chain team manages enterprise-wide risk policies and standards, plus systems to provide enhanced insights of supply chain risk. The team is also responsible for co-ordinating Lendlease’s modern slavery risk mitigation response.