Lendlease Annual Report 2024

34 Lendlease Annual Report 2024 Sustainability We are well positioned to reach our targets of Net Zero by 2025 for Scope 1 & 2 emissions and $250 million of social value by 2025 and have laid important groundwork in our journey to reach Absolute Zero by 2040 for Scope 1, 2 & 3 emissions. 53% Reduction in gross Scope 1 & 2 emissions since Mission Zero launched in 2020 1 1.5 degree aligned Our progress Since launching our global Mission Zero targets in 2020, we have reduced our gross Scope 1 & 2 emissions by 53 per cent and continue to track well below our 1.5 degree aligned target. These emissions reductions are underpinned by the continued delivery of our Mission Zero strategy, which supports the purchase of renewable electricity, the use of renewable energy, and ongoing electrification across our business. Globally, 65 per cent of our electricity use was from renewable sources, and we are well positioned to achieve our target of 100 per cent renewable electricity by 2030. We are also continuing to electrify our business operations and reduce our dependency on fossil fuels. In FY24, 66 per cent of total energy use was from electricity and 44 per cent was from renewable sources. We continued our purchase of carbon offsets for unavoidable emissions. In FY24, we offset 19 per cent of our gross Scope 1 & 2 emissions of 99 ktCO2-eq, taking our net Scope 1 & 2 emissions to 80 ktCO2-eq. Clear decarbonisation pathways Our Mission Zero carbon emission reduction targets have been verified by the Science Based Targets initiative (SBTi) as aligned with the Paris Agreement goal aiming to limit global warming to 1.5°C. Our climate transition plans, called Mission Zero Roadmaps, detail the specific regional strategies and timeframes we plan to undertake to progress towards our Mission Zero targets. Mission Zero Roadmaps are supported by Mission Zero Minimum Requirements, which detail shorter-term actions to drive the appropriate rate of decarbonisation across our three lines of business to maintain our 1.5 degree aligned carbon trajectory. Together, the Mission Zero Roadmaps and Minimum Requirements demonstrate our clear intention and the tangible actions we are taking to achieve our Mission Zero targets. Mission Zero Roadmap delivery We continued to make strong progress in the delivery of our Mission Zero Roadmaps and are currently working on our second cycle of Mission Zero Minimum Requirements for FY25 through FY27. The majority of our Scope 1 emissions relate to our Construction activities. To minimise these emissions, we have continued to move towards our goal of Fossil Fuel Free Construction. We are using electric plant and equipment where available, trialling battery storage and responsibly sourcing biofuels and renewable diesel. In Development, where possible, new buildings will be designed to take full advantage of renewable electricity through 100 per cent electrification of space heating and hot water requirements. We are also progressing the lifecycle upgrade planning for existing asset infrastructure, conducting technical feasibility and prioritising buildings across our Investments portfolio for all electric retrofit in line with our Mission 1. This figure excludes emission reductions achieved through divestment of non core businesses. Scope 2 emissions have been calculated using the market-based method, which includes the use of renewable energy certificates, power purchase agreements, renewable tariffs and the benefit of inherent grid renewable electricity where we have evidence that there is no claim by another entity. Melbourne: One Melbourne Quarter