LendLease Group

LendLease has a supplier code of conduct that outlines environmental responsibilities but does not specifically mention emissions reductions. The company has established strategic partnerships with Stora Enso to source sustainable timber, joined Built by Nature and is an active participant in the Materials & Embodied Carbon Leaders’ Alliance (MECLA) and the SteelZero initiative. As nearly 80% of LendLease’s reported scope 3 emissions are from purchased goods and services these partnerships are important for it to achieve its net zero by 2040 target. LendLease can improve further by including emissions reduction targets in its supplier engagement.

In the company’s Mission Zero, Five-Step Pathway, LendLease states that through collaboration with tenants and residents, it will achieve absolute zero carbon by 2040. However, there is little detail in this plan. The company engages with residents and tenants on purchasing renewable electricity and energy efficiency initiatives. For example, all commercial green leases in the UK require new office tenants to procure 100% renewable electricity. However, it does provide details of how it plans to grow this service. The company can improve by creating a client-engagement strategy, governed by a clear policy and integrated into business decision making.

LendLease has a target for its scope 1 and 2 emissions to be net zero carbon by 2025. The company will use an unquantifiable amount of offsets to achieve this target. LendLease aims to use 100% renewable electricity by 2030. By 2040, it has a net zero target for scope 1, 2 and 3 emissions. No offsets will be used to achieve this target. The company has not set interim scope 3 targets. Setting regularly spaced intermediate targets incentivises near-term actions on/towards its longer-term goals.

LendLease reports its scope 1, 2 and 3 emissions in its annual environmental, social, and governance data book. However, in 2022, the company does not publish information about its business activities by floor space or its scope 3 use of sold product emissions. Therefore, it is not possible to meaningfully assess the past emissions intensity trends of the company. LendLease does not quantify its commitments to construct low-carbon buildings in the future. As a company that operates globally, 100% of the buildings it constructs in 2030 are expected to be low-carbon.

LeadLease aims to use 100% renewable electricity before 2030. It aims to be net zero for scope 1 and 2 emissions by 2025 and net zero, including scope 3 emissions, by 2040. Offsets will be used to achieve the 2025 target but not the 2040 target.

LendLease’s transition plan is published as the ‘Mission Zero LendLease Five Step Pathway’. The company plans to phase out diesel and gas in its operations, use 100% renewable electricity before 2030 and work with suppliers and clients to reduce emissions. However, little detail is provided in the transition plan.

LendLease has established partnerships with suppliers to reduce emissions in the materials used in construction. LendLease requires commercial leases in the UK to source renewable energy but there is little evidence of this being expanded. The company uses 42% renewables in its operations.

LendLease has reduced its scope 1 and 2 absolute emissions by 74% between 2019 and 2021 and its reported scope 3 absolute emissions by 30% between 2020 and 2021. However, as the company does not disclose its total business activities or its use of sold products emissions, it is not possible to assess the company’s in-use emissions intensity trend.

LendLease has set a net zero by 2040 target and publishes a transition plan stating how it will achieve this. The transition plan lacks sufficient detail to meaningfully assess its current performance. The company publish an ESG Databook that contains all emissions data but does not publish the floor space for its business activities. Therefore, it is not possible to analyse its emissions intensity.

No evidence was found that Lendlease commits to social dialogue or engages with the categories of stakeholders 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 that the company undertakes low-carbon transition planning to mitigate the social impacts of the 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.

No public commitment by Lendlease was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found that the company actions to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks.

No public commitment by the company was found stating its intention to re- and up-skill workers displaced by the transition to a low-carbon economy. Additionally, no evidence was found that the company re- and up-skills workers in a way that ensures gender balance and inclusion of vulnerable groups.

No relevant disclosure was found to show if Lendlease identifies the 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 its 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.

Lendlease 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 that the company has a process to identify, assess and mitigate salient human rights risks in its own operations and supply chain. Moreover, no evidence was found that Lendlease Group discloses 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.

Lendlease commits to respecting the health and safety of its workers. However, it does not expect the same commitment of its business relationships. Furthermore, no evidence was found of a time-bound target for paying all workers a living wage. While the company discloses the proportion of its direct workforce covered by collective bargaining agreements, no relevant disclosure was found of the company’s required working hours. The company does not disclose indicators of workforce diversity. Furthermore, no relevant disclosure was found of additional indicators of workforce diversity.

Lendlease commits to protecting personal data. However, no evidence was found of a privacy statement regarding the collection, sharing and access to personal data. While the company discloses its global tax strategy, no relevant disclosure was found of the corporate income tax paid for each relevant jurisdiction. The company does have a policy prohibiting bribery and corruption, and it includes corresponding clauses in its contracts with business relationships. Furthermore, the company has a lobbying and political engagement policy, and it specifies that it does not make political contributions. Yet, no relevant disclosure was found of the company’s expenditure on lobbying activities.