Lendlease Annual Report 2023

38 Lendlease Annual Report 2023 Sustainability Our sustainability targets and aspirations provide a leadership platform for our core business segments, as we continue to decarbonise our operations and create measurable social value. 1.5 degree aligned Our progress Scope 1 and 2 gross emissions continue to track well below our 1.5 degree aligned target, resulting in an 18 per cent reduction against FY22. These emission reductions are underpinned by our global decarbonisation mandates, the delivery of Mission Zero Regional Roadmaps, and increasing renewable electricity and renewable diesel purchase. Globally, 63 per cent of our electricity use is from renewable sources, and we are well positioned to achieve our target of 100 per cent renewable electricity by 2030. We continued our purchase of carbon offsets for unavoidable emissions. In FY23, we offset 28 per cent of our remaining Scope 1 and 2 emissions of 81 ktCO2-eq, taking our net position to 58 ktCO2-eq. 18% Reduction in gross Scope 1 and 2 emissions 1 against FY22 63% Global electricity use from renewable 2 sources, up from 42% in FY22 and targeting 100% renewables by 2030 Building momentum We received validation from the Science Based Targets initiative that our carbon reduction targets are 1.5 degree aligned. We have progressed our global Carbon Offset Procurement Strategy and are engaging with potential partners to support our ability to access high quality carbon offsets to meet our Net Zero by 2025 target. We are now developing our global Renewable Energy Procurement Guidance and Criteria to outline how we intend to source alternative fuels, including renewable diesel, hydrogen and biogas. To position our business to achieve our Absolute Zero by 2040 target, we have developed the Lendlease Scope 3 Emissions Protocol V.1, which outlines our current view on our Scope 3 emissions reporting boundary. The Protocol is available on our website and is intended to contribute to a broader global conversation on a consistent and comparable approach to the measurement and reporting of Scope 3 emissions across real estate investments, development and construction business activities. We continue to build momentum for the decarbonisation of the real estate sector, including working with Concrete Zero in Europe to advocate for lower carbon concrete and contributing to the Green Building Council of Australia’s Low Carbon Design Guide. We joined the Global Cooksafe Coalition, committing to phase out gas from kitchens in our new developments by 2030 and delivering all-electric retrofits of existing properties by 2040, helping our residents and tenants transition to fossil fuel-free cooking powered by renewable electricity. We expanded our ESG Databook to provide a more complete view of how we manage our environmental, social and governance topics. The ESG Databook includes links to policies, governing committees, and other related information such as our new Human Rights Position Statement. 1. Scope 2 emissions calculated using the market-based method, which includes the use of renewable energy certificates, power purchase agreements, and renewable tariffs. 2. Includes renewable energy certificates, power purchase agreements, renewable tariffs and the benefit of inherent grid renewable electricity where we have evidence that there is no claim by another entity.