Climate and Environment

Mission Zero

Climate and Environment

The built environment contributes around 40 per cent of the world’s carbon emissions. We have a responsibility and an opportunity to act. As a 1.5°C aligned company, we have set ourselves ambitious science-based emissions reduction targets. Our targets have been validated by the Science Based Target initiative as being line with a 1.5°C trajectory.

Our industry-leading targets make our intention clear: to lead the transformation of our industry, inspiring a different level of thinking and shifting the attention to carbon elimination – not just reduction or offsetting. This is our Mission Zero.

Net Zero Carbon by 2025

We are targeting the reduction of greenhouse gas emissions from business activities as far as possible, with the remainder offset in an approved carbon offset scheme. Our Net Zero by 2025 target applies to Scope 1 & 2 emissions.

Absolute Zero Carbon by 2040

We are targeting the elimination of greenhouse gas emissions from our business activities. Our Absolute Zero by 2040 target applies to Scope 1, 2 & 3 emissions, within the Lendlease defined boundaries and without the use of offsets.

MISSION ZERO

Hear why we have made it our mission to reach absolute zero by 2040

Lendlease Scope 3 Emissions Protocol: Our Reporting Boundary

The Lendlease Scope 3 Emissions Protocol V.1 is our current view on the Scope 3 emission categories we have determined to be relevant to our value chain and which will form part of our Absolute Zero by 2040 target.

We are pleased to share our Scope 3 Emissions Protocol V.1. It is intended to contribute to broader efforts to help define a global approach to the measurement and reporting of Scope 3 emissions associated with real estate investments, development, and construction business activities.

Mission Zero Regional Roadmaps

We have clear plans in place to decarbonise our business globally

We’ve developed a five-step pathway to guide our journey to Absolute Zero by 2040. Our regional Mission Zero Roadmaps set out specific regional strategies and timeframes to eliminate Scope 1, 2 and 3 in line with our targets. Our Roadmaps are tailored to account for regional variances in the availability of alternative fuel options, renewable energy markets, technology, supply chain maturity and government policy. They provide the detail to drive specific and timely action towards achieving our targets, and are another measure of our performance.

Mission Zero Progress Report, Australia

Our goal of absolute zero carbon by 2040 is starting to become a reality

Climate action

Our climate ambitions and actions are embedded across the organisation.

Investments

We are positioning our portfolio of assets to meet tenant and resident expectations to live and work in highly sustainable buildings and precincts. We acquire high performing assets and invest in operational energy efficiency while increasing the generation and purchase of renewable electricity. Sustainable real estate attracts capital partners and quality tenants, as well as contributing to investment performance and our competitive edge. We maintain a leading position across ESG assessments and benchmarks for real estate.
Development

We create independently rated green buildings and net zero precincts, as well as inclusive, integrated and climate-resilient communities across our gateway cities. Lendlease has achieved several innovative green building firsts, including world-leading sustainability precincts such as Barangaroo.
Construction

We are phasing out fossil fuel diesel and gas from our construction sites, using electric plant and machinery where available, and switching to renewable diesel or replacement fuels as well as renewable electricity. We are increasing the number of all electric buildings and we are collaborating with our suppliers to progressively source and procure low embodied carbon materials, targeting embodied carbon reductions.

Our progress

We are making progress on our Mission Zero Roadmap initiatives to reduce Scope 1, 2 and 3 emissions.

Reducing Scope 1 emissions

We are working towards our goal of Fossil Fuel Free Construction by using electric plant and equipment where available, trialling battery storage and responsibly sourcing biofuels and renewable diesel.

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.

Reducing 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 remains high, ahead of our timetable.

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.

Reducing Scope 3 emissions

We are collaborating 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 our tenants to encourage the shift to renewable electricity.

For the Sydney Metro Martin Place Station project we partnered with Boral Cement and De Martin & Gasparini to replace approx 50 per cent of Ordinary Portland Cement with lower carbon supplementary cementitious materials, projected to reduce embodied carbon emissions by an estimated 38 per cent.

INDUSTRY TRANSFORMATION

We’re working in partnership to drive industry transformation

Meaningful, lasting change is a global challenge. We’re learning from and inspiring clients, partners, tenants and our supply chain to help achieve the radical industry transformation we need.

We’re on our way, with some brilliant partners.

Learn more

CLIMATE RESILIENCE

We are assessing climate change impacts to support the resilience of our business

Lendlease recognises the risks and opportunities associated with climate change. Climate related risk is embedded in our strategic and business planning cycles and all projects and investments conduct climate related risk assessments. Climate change adaptation and mitigation plans inform development, construction and operation of the buildings and places we create.

Since 2018 we have been disclosing our exposure and resilience to climate change through the lenses of governance, strategy, risk management, and metrics and targets, prepared in accordance with the Task Force for Climate-related Financial Disclosures (TCFD) recommendations. We are in the process of transitioning to report under the incoming Australian Sustainability Reporting Standards (ASRS), which are based on the Task Force on Climate-related Financial Disclosure (TCFD) and the International Sustainability Standards Board frameworks. The complete evolution of our climate-related financial disclosures is under the TCFD tab in our ESG Databook.