Lendlease Annual Report 2024

Governance 65 Our Customers Material Issue: Understanding our customers and responding to changes in the market. Designing and delivering innovative, customer-driven solutions to win the projects we want to win and ultimately deliver the best places. The Board and its committees undertook the following activities as part of its support of the Group’s customer focussed approach and to embed a process of continuous improvement based on customer insights and actions. Activities and actions: • Continued to engage with clients, investors and other stakeholders at various industry functions, site visits, events and meetings. • Continued to receive reports on the progress against prescribed metrics for the Australian Government Payment Times Reporting Scheme for small business suppliers. • Engaged with securityholders through meetings and events including the Annual General Meeting (AGM) and webcasts. • Continued to provide access to a greater number of securityholders at the AGM, by facilitating attendance via a hybrid meeting. Our People Material Issue: Attracting, developing and retaining diverse talent. Ensuring we have the right capability across the organisation to deliver results for all stakeholders. The Board, People and Culture Committee and Nomination Committee undertook the following activities to help attract, develop and retain diverse talent and to monitor the investment in developing leaders and capabilities. Activities and actions: • Continued the program of Board renewal by actively reviewing Board composition against the skills matrix. Appointed Barbara Knoflach to the Board effective October 2024. • In line with the approval of the Group's new strategic direction, approved a new segment led leadership structure (the Corporate Leadership Team) to replace the existing Global Leadership Team responsible for leading Lendlease into the future. • Continued to oversee the implementation of the human capital strategy, review mission critical capabilities and endorsed refreshed global leadership programs. • Continued to receive reports on the outputs of the Group's flagship leadership programs focussed on acceleration of under-represented female and racial minority talent. • Considered ways to respond to the strike received against the FY23 Remuneration Report and engaged with key stakeholders to understand the reasons for the strike and receive input on potential changes to the reward framework. • Continued to receive reports on the recalibration of globally consistent gender pay reporting. Sustainability Material Issue: Managing and optimising our performance in the context of challenges facing the built environment, including climate change and social pressures such as population growth and housing affordability. The Board and the Sustainability Committee engaged in the following activities to help deliver inclusive, healthy and adaptable places that can thrive through change. Activities and actions: • Received quarterly reports tracking progress against the Group’s two sustainability targets to reflect the Group’s commitment to: – A ‘Net Zero Carbon’ for Scope 1 and 2 emissions by 2025, and ‘Absolute Zero Carbon’ by 2040 – Delivering $250m of measured social value by 2025. • Received Deep Dive reviews on: – The output of business engagement including key regional & global insights on Nature & Biodiversity. – The Group's Mission Zero emissions reduction strategies including information on RECs and offset strategies. – An overview of Scope 3 emissions as they relate to Lendlease's Absolute Zero Target. – The Social Value Strategic Direction review. • Received regular reports on ethical supply chain within the Group to ameliorate the risk of material substitution and modern slavery. • Continued to receive reports at every meeting on the progress against the Task Force on Climate-Related Financial Disclosures risk assessment and reporting framework. • Reviewed and approved the extension of the Elevate RAP. • In tandem with the Audit Committee, continued to receive reports on Lendlease's readiness for adoption of enhanced climate and sustainability reporting under the proposed International Sustainability Standards Board exposure drafts. • Reviewed and approved the Lendlease position statement on Nature & Biodiversity. • Approved TEM as the preferred Offset Partner for Lendlease.