Lendlease Annual Report 2021

Singapore: Paya Lebar Quarter Mall Our disclosure progress and next steps The below table provides a summary of our TCFD disclosure. For further detail related to this and previous disclosure, please visit the Lendlease website (www.lendlease.com ). Actions FY19-20 FY21 FY22 Governance Disclose the organisation’s governance around climate related risks and opportunities Strengthen Board and Management oversight of climate related risks through Board Sustainability Committee Establish cross functional TCFD Steering Committee chaired by Chief Commercial Risk Officer Strategy Disclose the actual and potential impacts of climate related risks and opportunities on the organisation’s businesses, strategy and financial planning where such information is material Identified climate related risks and opportunities for each scenario Impact of climate related risks and opportunities on the entity Assess the effect of climate related risks and opportunities on decisions and plans of the entity Resilience of climate related risks and opportunities (see page 53) Risk Management Disclose how the organisation identifies, assesses and manages climate related risks Climate related risk integrated into Risk Committee Climate related risk assessments integrated into Investment Committee decision making process Integrated climate related risks into risk management framework Metrics and Targets Disclose the metrics and targets used to assess and manage relevant climate related risks and opportunities where such information is material Establish metrics for managing climate related risks and opportunities Continued disclosure of Scope 1 and 2 emissions Establish Scope 3 emission reporting boundaries and methodologies Disclose Scope 3 emissions Establish targets for managing climate related risks and opportunities Completed  Commenced  Ongoing action Scope 1 and 2 carbon target performance ktCO2-eq 263 116 103 370 210 352 198 150 222 234 118 107 34 0.9 FY19 FY20 FY21 FY22 FY23  Scope 1   Scope 2   Net emissions after offsets   1.5ºC aligned trajectory This financial year we have brought our environmental performance data disclosure in line with our financial reporting program by providing 12 months of data to 30 June 2021, which includes actual data for Q1-Q3 and estimated Q4 data. As per previous years, we will update our full year environmental performance data on the Lendlease website once actual Q4 data has been gathered and the limited assurance engagement completed. Our environmental performance has seen both energy use and emissions affected by the impact of COVID and the sale of the Engineering business. We have also made significant progress in reducing carbon emissions through business commitments to renewable electricity and renewable diesel (see page 43). In FY21, the business easily achieved the first year carbon target for our 1.5°C alignment and made significant progress on our 2030 renewable electricity target. Environmental performance FY19 FY20 FY21 Investments 1 307 319 177 Construction 170 123 123 Engineering and Services 368 406 58 Lendlease tenancies 9 8 4 Total 854 856 362 % of electricity use from renewable sources including grid renewable electricity 31% FY21 waste diverted and disposed (kTonnes) FY19 FY20 FY21 Waste disposed 682 338 59 Waste diverted 705 409 185 %Waste diverted from landfill 51% 55% 76% FY21 water consumption by business line (MLitres) FY19 FY20 FY21 Investments 4,935 4,950 4,527 Construction 600 476 504 Engineering and Services 610 711 27 Lendlease tenancies 52 47 19 Total 6,197 6,184 5,077 2% 13% 64% 21% 150 kt CO -e  Investments  Construction  Engineering and Services  Lendlease tenancies Scope 1 and 2 emissions by business line FY21 energy use by business line (GWh) Scope 2 emissions have been calculated using the market based method. Gross Scope 2 emissions are calculated after the purchase of renewable electricity certificates, power purchase agreements and green power. Total energy consumption in FY21 has reduced by 58 per cent compared to FY20 due to the sale of Engineering, ongoing COVID impacts and change in reporting boundaries in the US residential portfolio to bring tenant energy emissions into Scope 3 rather than Scope 2. In FY21, the reporting boundaries for waste disposed were changed to exclude soils to landfill, in line with other market peer reporting definitions. This change has been a significant contributor to the increased waste diversion rate to 76 per cent. In addition, COVID impacts and the sale of Engineering has seen total waste decrease by approximately 67 per cent this financial year. The sale of Engineering and COVID impacts has seen water consumption drop by approximately 18 per cent this financial year. Electricity used by the Investment Management business is the largest contributor to our Scope 1 and 2 emissions. Our plans to increase the purchase of renewable electricity to achieve our target of 100 per cent renewable electricity by 2030 should significantly reduce the Scope 2 carbon emissions associated with this line of business. 1. Includes Development business line of 2GWh for FY19 and 1GWh for FY20. 55 A sense of place 54 Lendlease Annual Report 2021 Risk and Climate Related Resilience