Lendlease Annual Report 2022

44 Lendlease Annual Report 2022 SCOPE 2 Power we consume We continue to focus on improving operational energy efficiency while increasing the generation and purchase of renewable electricity. We are also trialling battery storage technologies. Proof points: • Achieved Energy Star (ES) certification at The Cooper, Chicago, the first in our plan to target ES ratings across the multifamily portfolio. • Switched to 100 per cent renewable electricity, with guarantees of origin, across our European operations. SCOPE 3 Indirect activities We continue to collaborate with our suppliers to progressively source and procure low embodied carbon materials and our supply chain team is establishing a cohort of Mission Zero aligned supplier partnerships. Some examples of key initiatives across our operations have been included below. Steel We are working closely with steel producers to identify and procure low carbon steel alternatives. • At Claremont Hall, New York, we procured steel rebar with 97 per cent post-consumer recycled content, resulting in an estimated 27 per cent 1 reduction in embodied carbon. Concrete We have developed a tender evaluation tool to assess embodied carbon in proposed concrete mixes. We are specifying lower carbon concrete and trialling emerging technologies. • Targeting an average 40 per cent Portland cement replacement across all three residential towers at One Sydney Harbour is estimated to reduce overall embodied carbon emissions by up to 10 per cent 2 . Aluminium and glass We have developed an embodied carbon tool in our façade designs. We are collaborating with suppliers to reduce the embodied carbon of materials by increasing the amount of recycled content in the aluminium and glass we buy. • At Park & Sayer, Elephant Park, London, the façade being installed includes 75 per cent recycled aluminium. The use of renewable energy saved approximately 2,100 tCO2e compared with primary aluminium manufactured using fossil fuels. Timber As we look to a low and zero carbon future, we continue to explore the application of alternative materials such as mass engineered timber. • Achieved a BREEAM Outstanding rating on The Pavilion at International Quarter London (IQL). The building’s timber superstructure delivered a 56 per cent reduction in embodied carbon compared with an efficient concrete alternative, surpassing industry best practice 3 . Green Leasing To reduce downstream scope 3 emissions, we continue to engage with tenants and residents on the purchase of renewable electricity and energy efficiency initiatives. • Enhanced our UK commercial green leases to require all new office tenants to procure 100 per cent renewable electricity. Office tenants at IQL in Stratford should be the first to use the updated lease. Decarbonisation challenges and insights To achieve Absolute Zero Carbon by 2040 we will be reliant on sector transformation at scale and pace, however, we recognise there are challenges ahead and that key to finding solutions is sharing insights we have gained. Fossil Fuel Free Construction We collaborated with the University of Queensland to research the range of technologies that could drive the transition to fossil fuel free and ultimately zero emission construction sites. The research findings showed that although electrification of construction equipment and machinery is underway, the pace will need to accelerate to achieve zero emissions construction by 2040. Hence, we will continue to shift our business towards the use of renewable diesel and alternative fuels where viable, while also advocating for acceleration in the electrification of construction equipment. Existing gas infrastructure The major urban regeneration schemes in the UK provide an insight into some of the challenges in eliminating fossil fuels from development projects and assets. Connecting to the local energy infrastructure network is mandated for several of these projects, some of which rely on the combustion of gas. We are working with local authorities and energy providers in developing and executing their decarbonisation strategies for these networks which align with our Absolute Zero Carbon target. Main: Chicago: Roof Crop at The Cooper. 1. Compared with the US Concrete Reinforcing Steel Institute industry average. 2. Against standard construction practice. 3. LETI 2020 A1-A5 embodied carbon benchmark for commercial office, excluding sequestration.