Lend Lease | Adding Up - Detail
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Adding Up
Detail
Contents
- Commitment and Purpose
- Internal Reporting
- Global Reporting Initiative
- Dow Jones Sustainability World Index
- Carbon Disclosure Project
- Additional Reporting
Just as we recognise that sustainability must be an integrated part of our corporate strategy, so too we recognise that we must transparently and accurately report on our sustainability performance, internally and externally, according to robust and meaningful global indicators.
By so doing, we allow meaningful comparison of our performance with others in our sector and, more broadly, comparison of the positive impacts of our sector against other sectors.
Reporting this information also responds to the growing expectations of customers, business partners, investors and the wider community for open and transparent communication about corporate impacts.
A long-term aspiration is that our sustainability performance attracts investment in Lend Lease, our funds, projects and assets.
The challenge is in finding the right indicators against which to measure our performance and, while we voluntarily report against a range of environmental and social indicators, we are also a leading global advocate for improved indicators for our sector through our participation in the development of the Global Reporting Initiative’s Construction and Real Estate Sector Supplement.
Commitment and Purpose
In November 2005 the Board made a commitment to measure our sustainability performance and report it to the market.
In September 2007 the Board approved a range of short- and long-term Sustainability Aspirations, and a review of sustainability metrics was conducted to ensure collection of all data
required to monitor progress against these Aspirations.
There are a range of possible benefits from sustainability measurement and reporting:
- Improved management of resource use, waste and operating costs
- Improved employee attraction and retention
- Enhanced stakeholder relations and customer confidence
- Improved relationships with regulators
- Reduced costs compared to just-in-time regulatory compliance
- Increased Business Unit alignment
- Improved internal communications and knowledge sharing
- Improved data management and information access
- Internal and external benchmarking of performance
- Enhanced brand reputation
- Supply-chain advantage
- Identification of risks and opportunities
Our sustainability metrics were selected for Lend Lease businesses globally as mandatory minimum measures to be reported from October 2007. The metrics and their boundaries were determined according to the principle of Materiality, when applied to the consolidated, worldwide operations of the Lend Lease group of companies.
Metrics were selected based on data required to monitor progress against our Sustainability Aspirations, as well as Key Performance Indicators (KPIs) for the Executive Office,
Function Heads and CEOs. Each year the Lend Lease Board's Personnel and Organisation Committee sets the KPIs for key management personnel and other senior executives. The KPIs include financial and non-financial measures,
including health & safety and sustainability, relating to the Group, the Business Unit geography or function, and the individual. They directly align the individual's reward to the KPI of the Group and to its strategy and performance.
Internal Reporting
Internal reporting and analysis serves a variety of purposes ranging from improving the performance of an individual construction project or building, or operational elements thereof, to identifying corporation-level risks and opportunities, and informing group strategy. For example, when one shopping centre has higher energy consumption than others, we can interrogate its data to identify potential improvements to reduce consumption, cut costs and reduce emissions.
At a corporation level, internal reporting and analysis allows us to track our progress against our Sustainability Aspirations while also identifying market opportunities or potential risks. For example, by evaluating total materials consumption by type, we can estimate our exposure to market trends such as rising commodity prices.
To stay at the leading edge of non-financial management and reporting demands constant experimentation, including the regular trial of new metrics. For example, it wasn't until we tried to benchmark the water efficiency of our buildings against regional regulatory standards that we found those standards simply don't exist in many countries.
We also need to collect robust information for a significant period of time before it becomes useful, particularly in an external context.
Sustainability metrics on the social and environmental performance of our offices, assets and projects are collected and consolidated at three levels:
- Individual project and asset performance
- Business Unit and geography
- Group-wide totals
Lend Lease operates in over 20 countries across four key regions, comprising of Asia, Australia, Americas and EMEA (Europe (incl. United Kingdom), Middle East and Africa).
The figures below reflect the data collected by Lend Lease during the three months from January to March 2010 -
Asia
- 150 figures collected
- 18 active Projects, Assets and Offices
- 3471 figures collected
- 157 active Projects, Assets and Offices
- 2232 figures collected
- 167 active Projects, Assets and Offices
- 2307 figures collected
- 169 active Projects, Assets and Offices
Global Reporting Initiative (GRI)
The Global Reporting Initiative (GRI) has provided a Sustainability Reporting Framework for organisations around the world since 2000.
Today the GRI is referenced by more than 1,000 organisations worldwide — and the number increases every year.
Lend Lease first reported the company's performance using key indicators from the GRI in 2005. Since 2006 Lend Lease has contributed to the consultation process in the development of the latest version of the GRI Reporting Framework.
Internationally recognised, the GRI seeks to make the global reporting on environmental, social and governance performance by all organisations as routine and comparable as financial reporting, by providing a framework that allows for comparison between companies, as well as for benchmarking and informed target setting.
In addition to providing universal Sustainability Reporting Guidelines, GRI also allows for "Sector Supplements' in response to the unique, detailed needs of particular sectors.
Designed to complement the Guidelines, the Sector Supplements identify sector-specific environmental, social and governance issues not fully articulated in the Guidelines and provide related performance indicators.
GRI Sector Supplements are completed or are in development for a range of other industries including:
- Airports
- Apparel & Footwear
- Automotive
- Construction & Real Estate
- Electric Utilities
- Event Organisers
- Financial Services
- Food Processing
- Logistics & Transportation
- Media
- Mining & Metals
- NGOs
- Telecommunications
Since August 2006, Lend Lease has globally advocated the development of a Construction and Real Estate Sector Supplement for the property industry to address a range of unique sustainability impacts.
In 2008 Lend Lease sponsored GRI in the formation of a Global Working Group to develop this Sector Supplement, and in September signed a Memorandum of Understanding with GRI to be the first company to commit to the process.
For more information on the Construction and Real Estate Sector Supplement and its development, visit the GRI website by clicking here.
Dow Jones Sustainability World Index
(DJSI World)
Lend Lease was the first Australian property company to be included on the Dow Jones Sustainability World Index (DJSI World)—in 2001. Since then, we have been included on the Index in 2002, 2003, 2004, 2006, 2007, 2008 and 2009.
The DJSI World comprises the leading companies in terms of sustainability around the world. It captures the top 10 percent of 2,500 of the biggest companies worldwide
on the basis of long-term economic, environmental and social criteria. The results of the annual review of listed companies influence the investment decisions of asset managers in 16 countries who have licensed the DJSI family for a variety of sustainability-driven portfolios—including mutual funds, segregated accounts and structured products, as well as an exchange-traded fund (ETF). In 2009 total assets under management in DJSI-based investment vehicles reached close to $8 billion USD.
The value of sustainability and good governance to running a successful business are shown by comparing returns from companies in the Index with the rest of the market. Since 1999, companies on the DJSI World have out-performed the market.
Lend Lease is the only company in its sector classification (Real Estate Holding & Development, Financial Services) to operate on a global scale. This makes our non-financial reporting more challenging, given the unique social and environmental priorities in each of the more than 40 countries in which we operate.
In the 2008/2009 reported review of companies on the DJSI World, Lend Lease achieved the "best score" in our industry group for our corporate governance, climate change policy and standards for suppliers. Click here for full details of the DJSI Benchmark Report.
For more information on DJSI World please visit: www.sustainability-index.com
Carbon Disclosure Project
For the past eight years, the annual Carbon Disclosure Project has called for the world's largest publicly listed companies globally
(2,500 companies in 2009), to report their greenhouse gas emissions as well as business risks, opportunities and strategies relating to climate change. These results are provided to investors to help inform investment decisions. This year's Carbon Disclosure Project report was undertaken on behalf of
534 institutional investors,
holding USD$645 trillion of assets under management.
Lend Lease has responded to the Carbon Disclosure Project each year since 2006.
In each subsequent year we have significantly expanded our disclosure, reporting on 139 sites and 88.5 percent coverage of greenhouse gas emissions in 2007, to 234 sites and 100 percent coverage of
emissions in 2008, to 444 sites and 100 percent coverage of emissions in 2009.
In 2007 our culture of leadership in disclosure was recognised by Goldman Sachs JBWere, with the announcement that it had included us in their influential Climate Disclosure Leadership Index for the first time.
The Climate Disclosure Leadership Index identifies companies that most adequately demonstrate to investors that they understand and have assessed the risks and opportunities associated with climate change, and have in place effective governance, strategies and programmes to manage such risks.
In 2008 and 2009 Lend Lease was again included in the Carbon Disclosure Project (CDP) Goldman Sachs JBWere (GSJBW) Climate Leadership Index.
For additional details on our performance in the latest Carbon Disclosure Project, see our 2010 CDP Submission here.
To access our 2009 CDP Submission click here.
To access our 2008 CDP Submission click here.
To access our 2007 CDP Submission click here.
Additional Reporting
In addition to regular participation in the above reporting activities, Lend Lease also participates in a number of other frameworks as requested. These include assessments of corporate non-financial performance by analysts such as SIRIS and OEKOM who research company performance on behalf of investors and subscribers.
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