Lendlease Annual Report 2022

Renewal 21 An eye to the future As an integrated real estate group with projects that often span several property cycles, we take a long term view. In 2009 we committed that Barangaroo South would be a carbon neutral precinct. That vision was realised in 2020, with Barangaroo South recognised as the first carbon neutral precinct in Australia. A recent Oxford University-Protiviti 1 survey revealed that business leaders share a very positive view on the increasing importance of cities given their concentrated pools of labour, skills, new talent and knowledge. Almost two thirds believe that by 2030 the role of cities will be more important for their businesses, compared with just six per cent who believe they will be less important. The survey results indicate that first tier, larger and specialised urban economies will benefit most and will increase in importance for business operations. This aligns with our strategy to have a presence in gateway cities that demonstrate the most favourable prospects for long term outperformance. The upside of urban renewal A holistic approach to urban renewal is critical for cities to adapt and become more productive, liveable, affordable and sustainable. Higher urban density is linked to improved: • Economic performance through higher wages, more innovation and lower costs of public service provision • Wellbeing via social connection, as evidenced by growing mental health challenges experienced through the pandemic isolation • Environmental outcomes via lower pollution and energy consumption. Transport infrastructure typically determines the urban form of cities and shapes their evolution – think of the two hubs of New York City with Downtown evolving around the port and Midtown shaped by the rail terminals. Sydney is currently in the throes of a rail infrastructure boom with the network set to grow to 338 stations. This provides for a more rapid evolution of the urban environment to create a more liveable, productive and sustainable city. A recent Committee of Sydney study 2 indicated that station precinct development could provide almost half of the new dwellings required to meet Sydney's expected population growth over the next two decades. It is these types of opportunities across our targeted gateway cities that play to our strengths. Collaboration among government, the private sector and local communities is a must to achieve desired outcomes. Our global reach, placemaking capabilities, integrated business model and partnering approach all combine to provide a unique skill set. 1. Executive Outlook on Cities and Strategy 2030: Mykhnenko et al, University of Oxford, 2021. 2. Rethinking Station Precincts - How to create great precincts around rail stations and why this matters for Sydney: Committee for Sydney, April 2022.