Lendlease Annual Report 2024

Risk and Climate- Related Resilience 47 Sustainability Standards, which in turn are closely aligned to the TCFD approach. As a large Australian listed corporation, Lendlease will be captured within the proposed ‘Group 1’ category of the reporting hierarchy and subsequently subject to reporting requirements under ASRS commencing in FY26. We are well placed to respond to the ASRS, given our history of voluntary disclosure under TCFD. While ASRS introduces some new and specific disclosure requirements, for the most part, these build on the strategic work that Lendlease has been progressing under the TCFD framework. Cross-functional approach As we work to transition from TCFD to the ASRS, we have conducted a gap assessment between our TCFD related measures and ASRS disclosure requirements. Where differences or gaps have been identified, we have established plans to address them, often through leveraging additional information readily available across our business. We are also developing processes to capture new metrics to further assist in the ongoing monitoring and management of key climate-related risks and opportunities. From our initial commitment to TCFD, Lendlease undertook a cross-functional approach to assessing and reporting on climate-related risks and opportunities. Climate change can be pervasive in its impacts and, by examining the potential impacts of climate as an integrated team, we’ve carefully considered it using the deep knowledge of our business. Governance of our approach is overseen by functional working groups composed of senior leadership across sustainability, finance, legal, and supply chain functions. We also use our Executive Committee reporting rhythm to oversee our sustainability reporting from the business level through to the Board. To facilitate our readiness to respond to the ASRS, we established a specific Sustainability/Finance Working Group, which was formed to examine how the business can further streamline and leverage existing accounting frameworks and processes to capture climate-related financial metrics. In addition, a Supply Chain/Sustainability Working Group was formed to analyse potential climate-related risk concentrations across our global supply chain to proactively monitor and guide our strategic risk management planning and future disclosures. Assessing physical climate- related risks To help identify and manage the physical climate-related impacts to projects and assets that Lendlease are engaged in, we have worked with Swiss Re to implement a new risk data and services (RDS) platform with geospatial physical climate and nature risk capabilities. The RDS platform uses cutting-edge technology to help users manage current and future climate and nature risks. It provides Lendlease with access to data that was previously only available to insurance risk experts. The deployment of the RDS platform has streamlined our physical climate risk assessment screening process for any new project proposals or asset acquisitions and is now being used to examine physical climate risk exposure across our existing assets under management. We are also using RDS data to assist in our preparation to report against ASRS in FY26. More information For more information about our TCFD disclosures, please refer to our ESG Databook. For further information about our decarbonisation strategy, please visit Mission Zero.