Lendlease Annual Report 2022

Year in review 7 culture, and deliver sustainable growth for our securityholders. We are proud of our leadership position on environmental sustainability. Our goal is not only to eliminate the use of fossil fuels across our business but also help transform the real estate sector. Decarbonisation mandates have been implemented as we work towards our Net Zero scope 1 and 2 emissions targets by 2025. Initiatives include the use of renewable diesel, the design of all electric buildings, and the switch to 100 per cent renewable electricity for operating assets in Europe. We have also made progress on scope 3 emissions through various supply chain partnerships. Further details on sustainability are provided on page 42 of this Report. From a social sustainability perspective, we have created more than $100m of social value since launching our target of $250m by 2025 two years ago. Our ‘shared value’ partnerships focus on creating measurable social value by addressing the needs of communities. These include: our partnership with the Australian Red Cross in supporting the delivery of cultural programs, health and wellbeing initiatives and disaster preparedness in remote Australian communities; and Programma 2121 which offers training and paid internships for offenders in the Italian prison system. In addition to our shared value partnerships, we continued to embed commitments to First Nations engagement through our Elevate Reconciliation Action Plan. Board program The Board program, in addition to its regular cadence of meetings this year, expanded to reflect the broader range of both operational and strategic issues which required oversight. While some engagement activities were restricted by the pandemic, the Board was able to assess our Asian operations in person while other parts of the program were maintained virtually. This enabled the Board to engage in programs in all four operating regions – including site tours (physical and virtual), project reviews, interactive employee roundtables, leadership discussions and engagement with external stakeholders. The Board firmly believes these activities, in addition to our formal meetings, are critical for corporate governance. More detail on aspects of the Board’s engagement is provided on page 72. Looking to the future Following a year focused on resetting the organisation and rebuilding momentum, the Group has a clear pathway to meet its financial and operational targets by FY24. We expect FY23 to be a recovery year with further operating momentum and improved financial performance. The recovery of global gateway cities is increasingly evident and is reflected in the operating momentum across the Group. Our investment partners share this conviction with a record amount of development Work in Progress, supported by our construction delivery capability. The external environment will remain challenging, notably geopolitics and monetary policy settings. The Board will closely monitor these, including the potential impacts on our supply chain, broader inflation and implications for our products and services. I would like to thank my Board colleagues and the entire Lendlease team for their continued dedication in navigating the challenges of a global pandemic and the resetting of the organisation. We are now well positioned to create long term value for securityholders. M J Ullmer, AO Chairman