Lendlease Annual Report 2024

64 Lendlease Annual Report 2024 Supporting value creation The Board recognises that the five focus areas of value creation, supported by disciplined governance and risk management, contribute to performance and drive the long-term value of our business. During the year, the Board and Board Committees deliberated on the following specific matters and undertook a number of activities to support value creation. While these do not represent the full scope of Board activities, they highlight some of the areas of focus by the Board. Health and Safety Material Issue: Operating safely across our operations and projects. Maintaining the health and wellbeing of our employees and those who engage with our assets and sites. The Board, Risk and Sustainability Committees undertook the following activities as part of their continued review of the Lendlease Health and Safety Framework and the unwavering commitment to the safety of our people and those who interact with Lendlease assets and sites. Activities and actions: • Continued to receive reports from management on the steps taken to reduce incidents through continuous improvement measures, and by advocating for industry change. • In August 2023, assessed the remuneration adjustments to be made following the supply chain fatality in FY23, using a safety decision tree. No fatalities were reported in FY24. • Oversighted the progress of the revised health and safety strategy which addresses the '3Ps', being Physical Safety, Product Safety and Psychological Safety. • Monitored lead and lag indicator targets to measure broader safety performance in FY24 to create a Lendlease Safety Index. • Reviewed the overall external reporting definitions to align with the Group's Investment led strategy. • Continued to receive reports on Critical Incidents, investigation findings and the actions to close out these incidents. • Continued to receive quarterly updates on project metrics which are treated as a leading indicator of safety risk. • Received a report on the roll out of the Psychological Safety Workshops held across all regions. • Endorsed a Group wide approach to Engineered Stone Benchtop requirements and installation in line with SafeWork Australia recommendations. • Received a report on global safety initiatives such as 'Stop the Drops' to reduce critical incident exposure to fall of materials. Financial Material Issue: Delivering securityholder returns. Maintaining strong capital management to enable investment in our future pipeline. The Board, Audit and Risk Committees undertook the following activities to help fulfil the Board’s oversight responsibilities in delivering returns to securityholders and by adopting a prudent approach to capital management with a view to maintaining a strong balance sheet throughout market cycles. Activities and actions: • Considerable focus was spent in FY24 on reviewing and approving the Group's strategic direction, culminating in a comprehensive update to the market in May 2024 on the new direction to build a more profitable Lendlease. The key outcomes for the new direction included: – Refocussing the business towards the Australia market and maintaining and growing the international Investments platform. – Simplifying structures to support the business segments of Investments, Development and Construction. • Ongoing monitoring and review of Treasury management was a key focus area to ensure that Lendlease remains within the target gearing ranges and maintains investment grade credit ratings. • Concluded the audit tender process in accordance with the Group's Audit Tender Policy. Given uncertainties in the professional services market and the extent of change across the Group, a decision was made to retain KPMG until the end of FY27. Owing to the current dynamics in the Australian consultancy sector, this was agreed to be the optimum path for our business. • Continued to consider project approvals in the context of the Portfolio Management Framework, with the object to maximising long-term securityholder value.