Jones Lang LaSalle (JLL)

JLL’s low-carbon transition plan is informed by comprehensive climate change scenario testing. The assessment covers the company’s operations but not its supply chain. It looks at the materiality of climate-related risks and opportunities, both physical and transition-related. Moreover, the assessment explicitly covers market and technology, reputation, physical, and policy and legal risks. It tests for three scenarios, including a low-carbon economy scenario, taking into consideration multiple parameters with cross-impacts. The results are expressed in terms of the impact on JLL’s revenues, and a carbon price is used.

JLL publishes a list of its trade association affiliations and there is no evidence the company is a member of any organisations that have non-climate-aligned activities or positions. The company is a member of multiple initiatives to progress action on climate. JLL has also publicly supported climate policies to phase out coal-fired power generation, promote electrification of transport, invest in clean energy, and align public financing in line with climate science. Additionally, the company signed an open letter ahead of COP26 calling on G20 leaders to take action to limit global temperature rise to 1.5°C.

Despite the robustness of the company’s scenario analysis, it can still make improvements to its transition plan. The company has set a net-zero target for 2040 and an interim target for 2030. The company describes how it will achieve its targets in the short term, by improving energy efficiency and purchasing renewable energy certificates (RECs). However, it has not yet set any quantified key performance indicators. Similarly, in the long term, the company plans to expand its sustainability services division but does not set specific time-bound targets. The company can also report its process for reviewing and updating its transition plan over time.

JLL has several programmes to influence client behaviour to reduce clients’ emissions. This includes the development of net-zero portfolio strategies, asset decarbonisation pathways, sustainable refurbishment (retrofitting), energy advisory services, net-zero investments, net-zero asset audits, monitoring clients’ emissions and sharing JLL performance data so clients can calculate their scope 3 footprint. The company can strengthen these efforts further by quantifying the impact of its client engagement. Additionally, JLL should consider other clients, such as property developers and construction companies, that it can be engaging with beyond its asset owners and investors.

The in-use emissions intensity trend of JLL’s portfolio decreased by approximately 1% per year between 2018 and 2021. However, this does not align with the company’s 1.5°C pathway, which requires it to reduce the in-use emissions intensity of its portfolio by 9% per year between 2021 and 2026. Though JLL offers a renovation service in its client engagement strategy, the company has not quantified the proportion of buildings in its portfolio that the commitment applies to, nor specified the expected emissions reduction. As a result, it is not possible to provide a meaningful assessment of the company’s future emissions intensity trend.

JLL has set a 2040 net-zero target for its scope 1, 2 and 3 emissions and an interim target to reduce emissions by 51% by 2030 compared to 2018. Both targets are validated by the Science Based Targets initiative (SBTi). The company also plans to switch to 100% electric vehicles across its global vehicle fleet by 2032.

JLL plans to reduce the in-use emissions from its buildings (representing 96% of its emissions) by expanding its consulting services. These services will include the development of net-zero portfolio strategies, asset decarbonisation pathways, retrofitting, energy advice, net-zero investments and net-zero asset audits.

For its occupied portfolio, JLL has been increasing energy efficiency and purchasing RECs. Further, JLL has publicly supported climate policies to phase out coal-fired power generation, promote electrification of transport, invest in clean energy, and align public financing in line with climate science.

JLL only discloses data for its property management business, for which the company’s emissions intensity shows a downward trend between 2018 and 2021, though not at a rate aligned with its 1.5°C pathway. Notably, the company’s emissions trend was impacted by a sharp increase in intensity between 2020 and 2021.

JLL is working to transition to a low-carbon economy. It has set targets and is working with clients which represent the bulk of its emissions. However, so far, these efforts have not been sufficient for the company to align its emissions reduction with its 1.5°C pathway.

No evidence was found of JLL’s commitment to social dialogue or of the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders.

No evidence was found of the company undertaking just transition planning to mitigate the social impacts of the low-carbon transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in its just transition planning.

JLL discloses the actions it takes to help employees who may lose their roles find other positions internally through its recruitment deployment team. It also discloses the measures it takes to ensure that these jobs embed equality of opportunity for women and vulnerable groups. In particular, it has programmes to provide apprenticeships to military veterans and jobs to people with disabilities. However, no evidence was found of the company committing to create and support access to green and decent jobs as part of the low-carbon transition. Furthermore, no relevant disclosure was found of the company’s assessment of employment dislocation risks.

The company discloses the actions it takes to provide training opportunities for workers and affected stakeholders. For instance, the company supports women’s development via leadership and mentorship programmes. However, no relevant disclosure was found of the company embedding equality of opportunity for both women and vulnerable groups in these actions. Furthermore, no evidence was found of the company having a process for identifying skills gaps for workers and affected stakeholders or a public commitment to help workers displaced by the transition to re- or up-skill.

No relevant disclosure was found to show if JLL identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders.

No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

JLL commits to respecting human rights and the ILO fundamental rights at work, and it expects its business relationships to respect the ILO fundamental rights at work. However, no evidence was found of the company’s process to identify, assess and mitigate salient human rights risks in its own operations and in its supply chain. Moreover, no evidence was found of the company disclosing the stakeholders whose human rights have been affected by its activities. The company does, however, have a grievance mechanism available to workers and external stakeholders to raise human rights concerns.

JLL commits to respecting worker health and safety and expects the same commitment of its business relationships. Furthermore, the company discloses quantitative information on health and safety for its workers and how it monitors the health and safety performance of its business relationships. However, no evidence was found of the company having a time-bound target for paying all its workers a living wage. The company discloses some indicators of workforce diversity, including the age, gender, and race and ethnicity of its workforce by employee category. Additionally, the company commits to promoting gender equality and women’s empowerment.

JLL commits to protecting personal data. However, no evidence was found of the company having a privacy statement regarding the collection, sharing and access to personal data. There is also no evidence that the company discloses its global tax strategy and the corporate income tax it pays in its individual tax jurisdiction. The company does have a policy prohibiting bribery and corruption, and it includes corresponding clauses in its business relationship contracts. Moreover, the company specifies that it does not make political contributions. Regardless, no relevant disclosure was found of the company’s lobbying and political engagement policy and its expenditure on lobbying activities.