48 Lendlease Annual Report 2023 Climate-related strategic resilience Lendlease supports the recommendations of the Task Force on Climate- Related Financial Disclosure (TCFD) and in 2018 committed to producing annual disclosures that consider these recommendations. We have a phased approach to integrating the recommendations of TCFD over time, and this is our fifth annual TCFD disclosure. Our disclosure continues to evolve as we enhance our management of climate- related risks and as advancements are made in the maturity of climate-related financial disclosures. Building strategic resilience Lendlease has previously identified 10 Climate-Related Impacts (CRIs) associated with our three potential climate scenarios: Polarisation (a 3 degree scenario), Paris Alignment (a 2–3 degree scenario) and Transformation (a well below 2 degree scenario). In FY23, Lendlease senior leaders met to review the CRIs for continued relevance. The CRIs were assessed for their ongoing likelihood over the next 10 years and updated accordingly – focusing on five key CRIs under each scenario. The residual sensitivity under each CRI, by reference to potential impact to revenue, remains unchanged from prior periods including the assessed level of action required to achieve the residual sensitivity. Initial work was also undertaken on the identification of financial and non- financial metrics to measure and/or monitor the emergence of the updated CRIs. These metrics span both physical and transition risks and opportunities across all three scenarios. With the refresh of the identified CRIs now complete across the three scenarios, Lendlease will continue to monitor the identified climate-related risks and opportunities for signs of the CRIs emerging. This includes expanding the scope of our data capture and analysis to assess the materiality of any potential future impacts to the business. While every effort has been taken to engage in a robust scenario analysis process with input from experienced senior leaders in each business around the globe, scenario planning is, by its nature, subjective and may be subject to change as key considerations evolve. When reviewing the disclosures below, please consider the above factors. Emerging Climate-Related Reporting Requirements In June 2023, the International Sustainability Standards Board (ISSB) released its global sustainability disclosure standards, IFRS S1 and IFRS S2. IFRS S1 provides a set of disclosure requirements designed to enable companies to communicate to investors about the sustainability- related risks and opportunities they face over the short, medium and long- term. IFRS S2 sets out specific climate- related disclosures. The Australian government has also confirmed they intend to introduce standardised, climate-related reporting requirements for businesses, through proposed amendments to the Corporations Act 2001, aligned to the ISSB standards. The new reporting requirements are expected to be aligned to the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), which Lendlease has been following. As a result, it is anticipated that Lendlease will be able to meet the new Australian standard requirements when they are introduced. Top Left: Manchester: Potato Wharf. Top Right: London : Elephant Park.