Getting closer to Mission Zero in Asia
The biggest problem in the world today is climate change. And a huge part of that problem is the real estate and construction industry.
We create places for millions of people to live, work and play. But in the process, we contribute to the built environment’s emissions which make up almost 40% of global greenhouse gas emissions. Our industry has a unique responsibility and opportunity to act.
At Lendlease, we have set targets to reach Net Zero carbon by 2025 for Scopes 1 and 2, and Absolute Zero by 2040 for Scopes 1, 2 and 3 emissions within the Lendlease defined boundaries and without the use of offsets.
This is the biggest challenge we have ever set ourselves. Our industry-leading targets make our intention clear: to lead the transformation of our industry, encouraging a different level of thinking and shifting the attention to carbon elimination – not just reduction or offsetting.
This is our first Mission Zero and Social Value Progress Report for Asia.
We plan to update the report annually to share not only our progress, but also our journey. We’re doing this to help others to take their own action so we can work together to transform our industry to support a 1.5°C future.
The data in this report covers the FY23 period for the Lendlease Asia business, unless otherwise stated.
WE ARE A 1.5°C ALIGNED COMPANY
NET ZERO BY 2025
We’ll reduce greenhouse gas emissions as far as possible, with the remainder offset in an approved carbon offset scheme. Our net zero target applies to Scope 1 and 2 emissions, within the Lendlease defined boundaries.
ABSOLUTE ZERO BY 2040
We’re targeting no greenhouse gas emissions from fuels, electricity, our building materials or tenants. Our Absolute Zero target applies to Scope 1, 2 and 3 emissions, within the Lendlease defined boundaries and without the use of offsets.
Creating measured social value along the journey
Lendlease Foundation aims to create $250m of social value by 2025
Our progress at a glance
Our current emissions trajectory globally is on track to reach our targets. The progress we have made is a testament to the relentless dedication of our people, clients, consultants, suppliers, and industry partners to work together.
However, each region where Lendlease operates has different challenges and opportunities.
In Asia, our challenges include limited access to renewable diesel and clean energy from the grid, low levels of data transparency and supplier awareness of the emissions contribution from building materials, and the absence of regulations to incentivise lower embodied carbon materials.
Therein lies our opportunity: to advocate with our governments, to galvanise our stakeholders, and to lead.
For FY23, Asia has undertaken a number of commitments and achieved notable progress despite our challenges, as detailed in this report.
In FY23, we saved 12,900 tonnes of Scope 1 & Scope 2 emissions in Asia, about a 37% reduction from FY22. At the close of FY23, our corporate level shared value partnerships have created more than A$186m of social value, meeting more than 74% of our social value target globally.
Our efforts in FY23
SCOPE 1: FUELS WE BURN
50.7%
increase in Scope 1 emissions against FY22 due to an increase in construction activity on new and existing projects
SCOPES 1 & 2 IN CONSTRUCTION
Lendlease Asia achieved carbon neutral for construction delivery from FY23 onwards
SCOPE 3: INDIRECT ACTIVITIES
100%
of our development projects have assessed embodied carbon, and the Comcentre Redevelopment Project is among Singapore's first to target a reduction in embodied carbon, at 30%
SCOPE 1: FUELS WE BURN
Advocating for access to Renewable Fuels
We have been calling for access to renewable fuels in Singapore(2). We have introduced minimum requirements for the use of biodiesel in our development tenders as part of our commitment to reduce carbon emissions on our projects.
SCOPE 2: POWER WE CONSUME
40%
reduction in Scope 2 emissions against FY22(1)
SCOPE 3: INDIRECT ACTIVITIES
Advocating for Gas-Free F&B in Singapore
Since joining the Global Cooksafe Coalition, we have been advocating to transition away from gas cooking. Recent changes in Green Mark 2021(3) have been encouraging
(1) Lendlease FY23 ESG Databook
(2) Lendlease Advocacy: Singapore Budget
(3) Singapore nudges phaseout of gas cookers in new buildings
Highlights and insights
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Scope 1: Fuels we burn
Construction is responsible for 23% of global greenhouse gas emissions, with roughly 5.5% of these emissions directly caused by powering construction machinery and equipment, mainly through fossil fuel use such as mineral diesel.
What are we doing?
- Using electric construction machinery and equipment on Lendlease and external client projects.
- Using biodiesel on all Lendlease development projects.
- Trialling Battery Energy Storage System (BESS) to replace diesel-powered generators.
ElectrificationWith nearly 75% of heavy construction machinery powered by diesel today, construction machinery and equipment are a major contributor to carbon emissions in the construction industry.
During construction at The Exchange, TRX, Malaysia we replaced mineral diesel-powered heavy machinery with electric alternatives. Close to 80% of construction equipment on site was electrified, which included 16 fully electric tower cranes and an electric–powered conveyor belt for soil transfer.
BiodieselBiodiesel is a bio-based fuel made from waste cooking oil that replaces conventional mineral diesel in construction machinery and equipment.
Unlike diesel, biodiesel is non-toxic, biodegradable and significantly reduces toxic emissions when burned as a fuel.
Lendlease has implemented biodiesel initiatives on several projects in Singapore, including Shaw Tower and Paya Lebar Green. At Shaw Tower, 4,900 litres of pure biodiesel (B100) was used, saving approximately 11,800 kgCO2eq. At Paya Lebar Green, a total of 2,100 litres of pure biodiesel (B100) was used, saving approximately 5,100 kgCO2eq.
Artist's impression of Paya Lebar Green
Artist's impression of Shaw Tower
Battery Energy Storage System (BESS)To meet the energy requirements of the electric tower crane at Shaw Tower, Singapore, the team trialled the AMPD Enertainer, a battery energy storage system that provides onsite power without producing tailpipe emissions. Transitioning from diesel generators to a BESS, reduced emissions by approximately 63,300 kgCO2eq over a five-month period.
BESS stationed at Shaw Tower project site
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Scope 2: Power we consume
We have achieved a 40% reduction in Scope 2 emissions against FY22.
What are we doing? - Installed onsite solar PV panels at our retail assets.
- Commitment to procure offsite renewable energy through the use of Renewable Energy Certificates (RECs).
Retail assets typically have high energy intensity and implementing onsite solar can reduce the asset’s reliance on grid power.At Paya Lebar Quarter, Singapore, a total of 614 solar PV panels have been installed and these panels are projected to reduce emissions by 163,000 kgCO2eq annually.
At 313@Somerset, Singapore, a total of 466 solar PV panels were installed, reduced emissions by 21,400 kgCO2eq annually.
Solar Panels at PLQ Mall
Solar Panels at PLQ 3
Solar Panels at 313@somersetIn Singapore, Lendlease concurrently committed to ongoing procurement of renewable energy through Renewable Energy Certificates (RECs), given limited space to generate onsite solar energy, and limited supply of local RECs. This is an interim measure before renewable electricity becomes more widely available in the market.
In FY23, 55% of the electricity used across our operations came from renewable sources. Our Construction and Investment business contributed to this through the commitment to purchase RECs against residual Scope 2 emissions.
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Scope 3: Materials and services we buy
Lendlease is part of the Singapore Green Building Council’s Carbon Technical Committee and catalysed the Singapore Built Environment Embodied Carbon Pledge launched in 2021 (FY22).
We were key contributors to the recently published Embodied Carbon in Buildings Calculation Guide, which standardises carbon data collection and industry benchmarking for the construction industry.
With these initiatives, Lendlease is actively working with industry peers and partners to reduce upfront emissions through procuring materials with lower embodied carbon and by minimising materials usage and wastage.
What are we doing? - Collaborating with our supply chain to specify and procure low carbon materials on our projects, especially targeting concrete and steel.
- Assessing the embodied carbon of all our development projects through undertaking Life Cycle Assessments as part of our Sustainability Asia Minimum Standards for all new projects and assets.
- Setting embodied carbon reduction targets for projects with Mission Zero-aligned clients.
ConcreteCement accounts for 8% of all global greenhouse gas emissions. The use of lower embodied carbon concrete presents a significant decarbonisation opportunity.
At The Exchange TRX, Malaysia, Lendlease collaborated with the supplier to develop a lower carbon cement mix, replacing 30% Ordinary Portland Cement with Ground Granulated Blast-furnace Slag. The resultant lower carbon concrete mix was used in the construction of slabs, columns and staircases, with an estimated reduction of 25% in embodied carbon for the hotel site.
Construction works ongoing in The Exchange TRX
On the Comcentre redevelopment project, Singapore, Lendlease is targeting a 30% reduction in embodied carbon, compared to Singapore’s BCA Green Mark 2021 reference value of 1000kgCO2e/m2 (EN15978 Stages A1 to A4). To achieve this embodied carbon reduction target, we see opportunities to specify and procure low embodied carbon materials, including lower carbon concrete and steel.
The Comcentre redevelopment project is envisioned to be one of Singapore’s first end-to-end carbon neutral development: from design, construction to operations.
Artist's impression: view of the new Singtel Comcentre at Kiliney and Exeter from Eber Road. Targets are based on the current design proposal and subject to relevant authorities approval. Artist impressions are illustrations, and the design may change as the development progresses
Paya Lebar Green, Singapore, is using Singapore Green Building Product certified ‘4-Tick’* concrete as well as PanU CO2 mineralised concrete, a carbon capture utilisation & storage concrete technology. These initiatives have allowed for an overall reduction in approximately 33% of embodied carbon for the concrete used on the project.
*Note: Singapore Green Building Product certification ranges from 1 to 4 Ticks, with 4-Tick being the highest level of environmental product certification for building materials in Singapore.
SteelThe global steel industry is responsible for approximately 7-9% of global greenhouse gas emissions. Lendlease was one of the first companies to join SteelZero, a global initiative aimed at driving market demand for net zero carbon steel.
As part of our membership, we commit to procure: - 50% Net Zero emission steel by 2030
- 100% Net Zero emission steel by 2040
At Paya Lebar Green, Singapore, the steel rebar used contains 97% recycled steel. It is estimated that this initiative has reduced the project’s overall embodied carbon by 26%.
Sustainability Asia Minimum StandardsIn FY23, Lendlease Asia implemented Sustainability Asia Minimum Standards for all new projects and assets, which include: - Low carbon specifications for all new tenders (in practice since FY22)
- Life Cycle Assessments to be conducted for all new projects, enabling the collection of building materials data and benchmarking of embodied carbon
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Social Value
COMMUNITY ENGAGEMENT
> 1,800 volunteers
Since FY21, we have supported 24 community volunteering projects, with over 1,800 employees participating
COMMUNITY WELL-BEING
A$1.5M
Community health and well-being programmes across Asia have created over A$1.5M in social value from FY21 to FY23
INCLUSIVE EMPLOYMENT
A$1 : $6.3
For ever $1 invested in employment programmes for People with Disabilities in Singapore, A$6.3 of social value was created
Our social impact efforts are fuelled by our mission to help communities thrive and we are committed to supporting partners who are working to reduce barriers to employment and housing, improve community health and accelerate climate action.
Creating A$250m of social value through the Lendlease FoundationAlongside the Mission Zero target is our Social Value Target to create A$250m of social value by 2025. This target includes the social value created through our corporate shared value partnerships supported by the Lendlease Foundation. Importantly, our social value target focuses on initiatives that go above and beyond any project or asset contractual obligations. At the end of FY23, we have created over A$186m of social value globally, achieving more than 74% of our social value target.
Some of the Asia initiatives supported through the Lendlease Foundation are featured below:
Project Dignity, Singapore: Enabling Employment for People with Disabilities
Our 2-year partnership with Project Dignity supports our mission to promote inclusive employment. Through their Train-and-Place Programme, People with Disabilities (PWDs) were trained in kitchen and restaurant management skills. Graduates were assessed on their capacity and interest before being matched to a suitable role with food and beverage establishments across Singapore for employment.
In addition to increased income, the programme allowed participants to have the opportunity to be further integrated into society and build personal autonomy.
“One of the main positive aspects is that the family feels happy that he has found something to do that he really enjoys. His self confidence has improved as a result. He used to rely on his mum for everyday support, but they have seen his confidence to carry out tasks improve drastically." - Parent of beneficiary
Trainees testing out their new kitchen skills
Hands on learning on food preparation and hygiene
Connecting Families, Malaysia: Creating safe spaces to improve well-being of migrant construction workers
The Connecting Families cabin at our former TRX project site in Kuala Lumpur, was installed to provide a comfortable and safe space for workers to call home through video and voice calls and connect with loved ones.
Open 24 hours, 7 days a week, the café styled cabin was outfitted after consultations with workers onsite and saw over 1,100 workers utilizing the space between 2021 and 2022. The project also included a research partnership with the University of Malaya to better understand mental health challenges within the migrant construction worker population, and ways to support them.
The Connecting Families cabin
Cabin is open 24 hours, 7 days a week for workers to make calls home
Future Smiles, China: Raising health awareness amongst seniors in Shanghai
With a growing senior population, ageing and health in China has become a key concern. In partnership with the Future Smiles Foundation, Lendlease developed community health workshops to increase awareness of chronic diseases and cognitive disorders, focusing on seniors in Shanghai.
Workshops were gamified to highlight risk factors and preventive behaviours for diabetes and Alzheimer’s disease in an engaging way. Participants could opt to have a blood sugar test, which saw previously unknown diabetic conditions being referred for further medical attention. In its latest cycle, the project introduced capacity building workshops for caregivers of individuals with Alzheimer’s, to better manage their dependants and personal well-being.
To date, the workshops have reached over 2,800 seniors, through the outreach efforts of our volunteers from the local community and Lendlease staff.
Raising health awareness through play
Supported the development of an engagement toolkit to engage seniors through play
Community Koen, Japan: Supporting emotional and social wellbeing of mothers
Lendlease, together with members of Community Koen, refurbished a local community space “Teramachi House” to create an inviting environment for stay-at-home mothers in the area to gather for activities and connect with one another. Workshops on parenting and emotional management were curated to support the challenges they faced day-to-day.
Teramachi House, a community space used by Community KOEN
Community Grants Programme, Asia
The Lendlease Foundation Community Grants Programme, Asia, is an annual micro-grant programme that supports local community-based organisations, charities and social enterprises working on community development and climate action in Malaysia and Singapore.
Launched in 2021, 16 non-profits and social enterprises have received grants of 20,000 in local currency to scale their programmes and impact.
