Lendlease Annual Report 2024

Managing and measuring value 35 Zero Minimum Requirements and asset sustainability plans. We are also engaging with our food and beverage tenants in support of our Global Cooksafe Coalition commitments. Examples: • In FY24, 99 per cent of liquid fuels used by our UK Construction business were from renewable sources. • At The Exchange TRX in Kuala Lumpur, close to 80 per cent of construction equipment was electrified, including a fleet of 16 electric tower cranes. • At Melbourne Quarter West, we are using renewable diesel in concrete pumping, extending our use of imported renewable diesel in Australia. The large majority of our Scope 2 emissions relate to our Investments portfolio. To minimise our Scope 2 emissions, we continue to focus on improving the operational energy efficiency of our assets, setting minimum third party energy ratings, while also generating onsite solar electricity at selected assets. Renewable electricity purchase across the business remained high, ahead of our timetable. For our Australian business, we have progressed our renewable energy procurement strategy, with preferred renewable energy providers agreed and contracts due to start from FY25. Examples: • At Paya Lebar Quarter, Singapore, a total of 614 solar PV panels have been installed and are projected to reduce emissions by 186 tCO2-eq in the first year of operation. • One Melbourne Quarter achieved a market leading 6 star NABERS energy rating for the base building, incorporating a large 201kW rooftop PV array, supporting approximately 17 per cent of the base building’s energy consumption. Initiatives undertaken to minimise our Scope 3 emissions include ongoing collaboration with designers, suppliers and clients to reduce embodied carbon. In Australia, we have been engaging with our key subcontractors and suppliers to understand their progress in decarbonising their manufacturing processes and sourcing low embodied carbon materials. We continue to engage with tenants to encourage the shift to renewable electricity. Examples: • At 51 Flinders Lane in Melbourne, we are collaborating with GPT Group to build its first upfront embodied carbon neutral office tower, to be certified through Green Star and Climate Active upon completion. • Our portfolio of privatised military homes in the US was recognised as a 2024 Platinum Green Lease Leader for implementing energy efficiency best practices, including cost recovery for capital improvements and sustainability training. • In our FY24 engagement survey of Australian commercial and industrial tenants, approximately 25 per cent are already using renewable electricity. We have begun planning for the transition to 100 per cent renewable electricity as part of tenant lease renewals. Mission Zero Progress Reports Our European business published its third annual Mission Zero Progress Report while our Americas and Asia regions published inaugural progress reports. We have also shared our Australian Fossil Fuel Free Construction guide, detailing our plans and progress using electric equipment, battery energy storage systems, renewable diesel and biofuel. Carbon offset procurement To achieve our Net Zero by 2025 target, we are working to reduce our Scope 1 & 2 greenhouse gas emissions as far as possible, with the remainder offset via acquisition of high quality carbon offsets. A central team will manage our group wide sourcing of high quality nature based carbon removals that meet our stringent assessment criteria, including independent, third party certification. Pathway to Absolute Zero We have taken important steps to establish a pathway to measure and disclose progress towards achieving our Absolute Zero by 2040 target. Our Absolute Zero by 2040 target includes eliminating Scope 1, 2 and 3 emissions, within the Lendlease defined boundaries and without the use of offsets. At Climate Week in New York in September 2023, we officially launched the Lendlease Scope 3 Emissions Protocol v.1, our current view on the Scope 3 emission categories we have determined to be relevant to our value chain and that form part of our Absolute Zero by 2040 target. We published the Protocol to advocate for and move towards a consistent and comparable approach to the measurement and reporting of Scope 3 emissions associated with real estate Investments, Development and Construction business activities. The Protocol has been well received by peers and industry groups and recognised in industry leadership and impact awards, such as the Singapore Green Building Council & the Building and Construction Authority, as well as The Urban Developer in Australia. In addition to moving forwards on Scope 3 measurement and reporting, we have continued to advocate alongside key industry groups for investment in transition and decarbonisation, joining the World Business Council for Sustainable Development’s Built Environment Pathway. Nature and biodiversity Nature is one of six focus areas in our global Sustainability Framework and, given the global decline in biodiversity and increasing regulatory requirements to enhance protections for nature, we have commenced a strategic review to better understand the role we can play in protecting and restoring nature. We have developed a framework to locate our nature interface across each line of business and to evaluate our direct nature-related dependencies and impacts. Our framework uses elements of the Taskforce for Nature- related Financial Disclosures (TNFD) LEAP approach (locate, evaluate, assess, prepare). We have also joined as a TNFD Forum Member. Governance We published our ESG Databook, submitted the latest Lendlease Modern Slavery Statement and our annual United Nations Global Compact (UNGC) Communication on Progress submission. 65% Global electricity use from renewable sources 1 and targeting 100% renewables by 2030 1. 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.