Lendlease Annual Report 2022

74 Lendlease Annual Report 2022 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, in addition to the responsibilities and tasks set out in the charter documents, 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: • In tandem with the People & Culture Committee, led the work on the approach to setting the guiding principles to manage remuneration adjustments following safety incidents. • Received an independent report on and discussed the measures and actions taken in response to the subcontractor fatality that occurred on our operations in FY22. No employee fatalities were reported in FY22. • Continued to receive reports from management on the steps taken to reduce incidents through continuous improvement measures, and by advocating for industry change. • Resumed on-site project visits to observe and test, through speaking with site workers, the addressing of health and safety culture. Received deep-dive reports from management on the ways that safety issues are being managed on these projects. • Reviewed the way safety performance is reported across Lendlease, noting that Lendlease goes beyond industry requirements by reporting all fatalities including subcontractors and everyone who interacts with our places. • Received a report on the internal Safety Culture and Climate Survey undertaken in April 2022. • Received deep dive presentations from various businesses on particular areas of EH&S focus during investment, design and procurement. Received reports from business leaders on the ways they have shared lessons learnt from Level 3 critical incident reports. 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: • Oversighted the CEO’s wide ranging business review of the assessment of Development project impairments in Australia and the UK, change in capital partnering approach across urban projects, and restructure provisions taken. • Reviewed relevant accounting issues and considered components of the Group’s restructuring following the CEO’s business review. • Supported the ‘Reset, Create, Thrive’ roadmap following the CEO’s business review and communications of this to market. • Continued to consider project approvals in the context of the Portfolio Management Framework, with the object to maximising long term securityholder value. • Oversaw the sale of the non-core Services business and reviewed the accounting treatment associated with the sale and adequacy of provisions held. • Continued the review of existing risk management process to further enhance risk maturity. • Continued to oversight improvements to internal risk standards and frameworks, including the risk appetite, so that they remained fit-for-purpose within the organisation. • In accordance with the Group’s Audit Committee Charter, the Audit Committee will be conducting an audit tender process during FY23.