Getting closer to Mission Zero and creating Social Value in the Americas
Climate change represents the biggest threat to the world we have ever known, and the real estate and construction sector is a large contributor to that problem. As this sector creates thriving places for people to live, work and play, through this process, we contribute to the built environment sector’s carbon emissions, which make up almost 40% of total global greenhouse gas emissions. That is why 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. Our industry-leading targets make our intention clear: to lead the transformation of our industry; to encourage a different level of thinking; and to shift the attention to carbon elimination – not just reduction or offsetting. Our Absolute Zero target is the biggest challenge we have ever set ourselves, and there’s no denying it is an ambitious goal. We recognize it will only be achieved through intentional collaboration with our clients, partners, tenants and supply chain.
Alongside 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. To date, we have created over A$186m of social value, achieving more than 74% of our social value target.
Each region across Lendlease established a Mission Zero Roadmap and Social Value community partnerships specific to their needs. This is our inaugural Progress Report for the Americas region. We plan to continue updating the report to share not only our progress but also our journey, through updates on our efforts, data reporting and case studies. The effort to Absolute Zero is a challenging but necessary one. We’re sharing to help others take their own action, so we can collectively transform our industry in support of a 1.5°C aligned and socially just future.
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
No offsets – 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.
Creating measured social value along the journey
Lendlease Foundation aims to create $250m of social value by 2025
Our progress at a glance
While our target of Absolute Zero by 2040 for Scopes 1, 2 and 3 within the Lendlease defined boundaries is bold, we are making progress. We are currently tracking below the emissions trajectory required to reach our targets. The progress we have made is a testament to the dedication, hard work and innovative approaches that our people, clients, consultants, suppliers, industry partners and stakeholders have taken to combat climate change and create thriving communities. The challenges that remain galvanize our efforts and drive us forward.
“Lendlease has fully committed to achieving our ambitious Mission Zero targets, and I am thrilled that we have created measurable progress toward these industry-leading goals. We look forward to continued hard work and innovation to drive our carbon emissions goals going into the next fiscal year and beyond.”
- Claire Johnston, CEO, Lendlease Americas
Our efforts in numbers
SCOPE 1: FUELS WE BURN
7.56%
reduction in Scope 1 emissions since FY21
Saving 578 tonnes of carbon
Equivalent to 689 acres of forest sequestering CO2 in one year (about the area of Central Park in New York City)
SCOPE 2: POWER WE CONSUME
60.53%
reduction in Scope 2 emissions since FY21
Saving 3,123 tonnes of carbon
Equivalent to 8.01 million miles (8,005,963) of an average gasoline powered passenger vehicle
SCOPES 1 & 2 IN CONSTRUCTION
Net Zero
Since FY21, our Construction business has been Net Zero for Scope 1 and 2 emissions
SCOPES 1 & 2
9%
Energy Use Intensity (EUI) (kBTU / sq ft) reduction in Multifamily Portfolio since FY21*
SCOPE 2: RENEWABLE ELECTRICITY
84%
Annual electricity consumption from renewable sources in FY23
Up from 16% in FY21
SCOPE 3: EMBODIED EMISSIONS
10.5%
the average reduction of embodied emissions in our development projects from baseline**
*calculated for assets with two years of stabilized whole building data and not equity adjusted (i.e. 100% of energy accounted for)
**reductions are measured via a recognized methodology for the LEEDv4 credit Lifecycle emissions reductions
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MENTAL HEALTH SUICIDE PREVENTION
$A8.70
For every dollar invested in Suicide Prevention Train-the-Trainer programs, we created a return on social value of A$8.70 from FY21 to FY23.
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SKILLS TRAINING PROGRAM
$A1.6 million
Our partnership with Chicago Women in Trades Program has created $1.6 million in social value from FY21 to FY23
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SUPPLIER DIVERSITY
US$102.81 million
awarded to under-represented business enterprises nationwide in FY23
Highlights and insights
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Scope 1: Fuels we burn
To tackle emissions directly onsite, Lendlease is using fossil fuel alternatives and transitioning to all-electric operations within all business units. This includes sourcing all-electric construction and maintenance equipment wherever we can and using renewable diesel to power traditional equipment. We are also designing our new assets to use less or no natural gas for heating and cooling. Doing this requires coordination both upstream with our supply chain partners to ensure we have market availability for electric products and renewable fuels, as well as downstream with our end users to ensure adoption of all electric equipment, vehicles and buildings. The benefits associated with all-electric design and operations go beyond the climate – improved air quality, less noise and safer practices are additional benefits as well. Below is an example of how we’ve been tackling Scope 1 emissions within our businesses.
All-Electric DesignA direct opportunity to reduce Scope 1 emissions is through designing buildings that do not need fuels for heating or cooling. Lendlease was able to incorporate major energy demand savings at our Brooklyn-based mixed use development project, 1 Java Street, by leveraging the thermal energy of the ground beneath the site. The installation of 320 boreholes will host a geoexchange system allowing the complex to use solely electric power—two years ahead of a 2027 New York City mandate—and reduce its carbon emissions profile. The geo-exchange system at 1 Java Street will cut annual heating and cooling emissions by 53% compared with traditional natural gas boilers and cooling towers or avoid 1,050 metric tons of CO2 emissions annually. When 1 Java Street opens in late 2025, it will have the largest multifamily geothermal system in New York State, and possibly the U.S.
Snapshot of the 1 Java Street jobsite drilling the boreholes that will host the geoexchange system
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Scope 2: Power we consume
Not all electricity is created equal. According to the U.S. Energy Information Administration, about 60% of electricity generation in 2022 was sourced from fossil fuels. To reduce emissions tied to the electricity we directly consume, known as our Scope 2 emissions, Lendlease investigated opportunities for renewable energy production onsite and establishing agreements with utility companies to source green power.
Sourcing Green Electricity in Construction OperationsThe Southbank E plan for field office and conference rooms provided a perfect opportunity to implement a solar/battery power system. The conference rooms were constructed on one of the open-air parking levels of the building, which provided an optimal opportunity to place solar panels that could take advantage of southern sun exposure. The team decided to use solar panels from Renogy and an expandable power system and battery from Bluetti because they combine to form a flexible system that can expand to include additional batteries if needed in the future. The solar/battery system was sized with 5,000kW of solar with the intent to power the LED fixtures, TVs, and convenience outlets in two conference rooms. All conduit raceways were painted green and left exposed to help educate users about the power system. The project did not need to use any grid power to supplement the solar/battery system throughout the life of the construction project.
Views of the solar panel installation the supported the Southbank E site conference rooms
Sourcing Green Electricity in Asset OperationsLendlease is committed to supporting renewable power grids to reduce our Scope 2 emissions. In 2022, the Americas business secured renewable electricity for all our operational multifamily properties’ base building use, paving the way for utilities to invest in more renewables on the grid. Additionally, to continue validating our buildings’ energy efficiency efforts and improve upon our portfolio’s building operations, Lendlease’s multifamily properties are ENERGY STAR certified, reporting our energy consumption annually, and the portfolio has earned recognition from the Department of Energy Better Buildings Initiative.
Lakeshore East in Chicago is one of Lendlease's multifamily assets sourcing green power for its house loads
Optimizing our Communities Business with Systems Upgrades and PhotovoltaicsLendlease leveraged our Energy Solutions & Security (ESS) Joint Venture (JV) with Ameresco to comprehensively evaluate and improve the energy performance of two of our largest privatized military housing communities, Island Palm Communities and Hickam Communities, both in Hawaii. These two communities span over 10,000 military homes. Through this joint venture, the partners created holistic Energy Services Agreements to address critical infrastructure challenges, stabilize utility consumption costs, lower maintenance and capital repair and replacement costs, and provide health and wellbeing benefits as well as energy security to residents. These efforts included installing 5,300 new super high-efficiency water source heat pump HVAC systems, an additional 6.45 MW of rooftop solar, adding to Lendlease’s existing 40 MW solar portfolio, and HVAC system upgrades with advanced energy controls in 2,293 homes. The ESS JV serves as a proof point for reducing carbon emissions using Lendlease’s ‘home of the future' concept that promotes low-carbon, healthy, and climate-resilient homes while helping to support Lendlease's Mission Zero goals.
Hickam Communities continues solar installation to support renewable power procurement -
Scope 3: Materials and services we buy
Our Absolute Zero by 2040 target includes eliminating our Scope 3 emissions without the use of carbon offsets. Scope 3 emissions are generated in activities up or down our supply chain, such as those associated with the manufacture and transportation of construction materials. While there is consistency and clear guidance on how to account for Scope 1 and 2 emissions across the real estate sector, the same clarity is not yet in place for Scope 3 emissions. Part of our focus in FY23 has been to better account for and capture our Scope 3 emissions. This led to the publication of our Lendlease Scope 3 Emissions Protocol. This document details for our industry how we decided what is included and what is excluded from our Scope 3 emissions reporting boundary, hopefully spurring other companies to begin setting meaningful Scope 3 reduction targets.
Though Lendlease only recently published our Scope 3 Emissions Protocol, we have been working to reduce the Scope 3 emissions associated with our materials for many years and had clear successes in FY23.
Low carbon concrete with slagLendlease leveraged our partnerships with supply chain partners across the nation to drive lower carbon concrete mixes. For The Reed at Southbank in Chicago, our partner collaboration resulted in a concrete mix design that replaces over 60% of the Portland cement with post-industrial slag, reducing the building's overall embodied carbon emissions by over 10%. The Reed at Southbank was awarded the Sustainable Concrete Project of the Year award by the Slag Cement Association in recognition for their efforts.
Low carbon concrete with ground glass pozzolanTypically, companies including Lendlease have replaced traditional emission-intensive Portland cement with low carbon materials like slag and fly ash to reduce the carbon footprint of the final specified concrete. However, fly ash and slag are becoming less available and more expensive, and thus the need for other reliable and more sustainable Supplementary Cementitious Materials (SCMs) is more important than ever. SCMs are added to Portland cement within concrete mixes to support performance qualities such as strength and durability, and can also reduce the amount of Portland cement, the highest source of embodied emissions within the mix. We need new low carbon SCMs that are readily accessible, available in millions of tons a year, and sourced at a reasonable price for concrete manufacturers.
With few possible candidates that meet these demands, one solution is rising to the surface: Ground-Glass Pozzolan (GGP). Made of recycled bottles from municipal recycling and window glass from construction retrofits that is sorted, cleaned and ground into a uniform powder, this SCM can be sourced at a reasonable price because it is a “waste” material with few other end consumers. It also has the advantage of containing high, consistent amounts of amorphous silica found in engineered glass that provides concrete strengths that are equal to or better than traditional SCMs. Another benefit of GGP is that it is denser than other SCMs and provides low permeability to chloride and water intrusion. This feature allows it to be a substitute for the more expensive Silica Fume Pozzolan typically used to increase the durability of parking garages and foundations.
The low permeability, along with its carbon emission reducing benefit, inspired the 1 Java Street team in Brooklyn to trial a 40% cement replacement GGP concrete mix for caissons and foundation concrete pours, which is estimated to reduce the embodied carbon of the concrete by approximately 30%. The mix has performed well in both workability and design strength. Early/7-day strength gain is a bit slower than traditional slag mixes and a bit faster than traditional fly ash mixes, though research shows GGP mixes continue to gain strength for longer than traditional mixes through 90 days. The 1 Java Street team continues to install the GGP mixes in vertical walls and concrete masonry applications.
Concrete mix with ground glass pozzolan being poured at 1 Java
Leveraging circular materials with gypsumTo better support diverting waste from landfill and sourcing materials with higher recycled content, Lendlease construction projects in New York have partnered with local recyclers and manufacturers to reclaim gypsum wallboard trim scrap to reuse as feedstock for new gypsum products. According to Amanda Kaminsky, Director of Sustainable Construction at Lendlease: “Diverting our job site-generated clean drywall trim scrap into regional reuse and purchasing new drywall with higher post-consumer recycled content aids in reducing embodied carbon emissions and increasing resource circularity. ” You can read more about the pilot initiative here.
Gypsum collection at a Lendlease jobsite -
Scope 3: Tenant emissions
Green Leasing ProgrammingLendlease has tackled tenant emissions in its Communities business through a comprehensive green leasing program, targeting opportunities for greater energy and water efficiency, healthy indoor air quality, and cost savings. Green leases are powerful: the Institute for Market Transformation (IMT), which defines green leasing for the real estate industry, estimates that green leases can help reduce utility bills by up to approximately 51 cents per square foot (22%) in U.S. office buildings alone. In 2022, Lendlease partnered with IMT to create a pathway for military housing portfolios to attain Green Lease Leader recognition. As a result, Lendlease’s Campbell Crossing, located at Fort Campbell, KY, became the first military housing project to be awarded Green Lease Leader at the Gold level. To receive this recognition, Lendlease demonstrated success in implementing energy efficiency and sustainability best practices such as utility data tracking and sharing, unit turn checklists that focus on energy and water efficiency, leasing agent training around the benefits of green building, optimized HVAC preventative maintenance protocols, and enhanced resident engagement around energy and water efficiency. Efforts to reduce embodied carbon and improve water efficiency and waste reductions also contributed to results. Learn more about the green leasing recognition for Lendlease’s military portfolio.
Campbell Crossing is recognized at the Gold level as a Green Lease Leader -
Social Impact
At Lendlease, we strive to create the best places to live, work and play. Through our social impact efforts, we aim to make a positive difference on people’s lives by improving their quality of life, supporting health and wellbeing, providing economic opportunities, improving the local environment and building resilient and thriving communities.
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. To date, we have created over A$186m of social value, achieving more than 74% of our social value target. Some of the initiatives supported through our Foundation are featured below:
SKILLED & DIVERSE CONSTRUCTION WORKFORCE
Promote women and minorities in construction trades by reducing barriers to employment
COMMUNITY RESILIENCE
Restore oyster reef structure which protect shorelines and rebuild marine ecosystems
THRIVING COMMUNITIES
Address food insecurity issues through excess food recovery
Billion Oyster Project: Building climate resilience in communities with nature-based solutionsLendlease Foundation partnered with Billion Oyster Project in support of the organization’s volunteer program, which helps to implement oyster reef restoration efforts. Billion Oyster Project was founded in 2014 with a vision to create a healthy and biodiverse harbor, in one of the world’s busiest ports, through restoration, education and collaboration. Engaging with students, volunteers, community scientists, and restaurants gives everyone the opportunity to learn about New York City’s rich oyster history and a way to help restore it. With the goal to restore 1 billion oysters to New York Harbor by 2035, this work is only possible with the support of volunteers who clean and prep recycled shells for use as cultch for growing young oysters and substrate placed in the harbor to support new reefs.
Creating social value through our projects and assetsWe are guided by the three social focus areas of our Sustainability Framework: economic prosperity, community inclusion and wellbeing.
Our social impact journey extends throughout our business operations where we aim to deliver social value across all our projects and assets. These efforts create meaningful social value for communities throughout the project lifecycle. Some key highlights:
COMMUNITY SUPPORT
Lendlease (US) Community Fund raised US$470,000 in support of military families and veterans in FY23
VOLUNTEERING PROGRAMMING
Project-led volunteering programs engage and support the communities within which we work
WORKFORCE DEVELOPMENT
In FY23, The Forum project in Boston pledged US$225,000 to advance workforce development in Life Sciences by project completion
Claremont Hall: Community fund in partnership with project developmentAs part of Lendlease’s partnership with LMXD and Daiwa House to develop Claremont Hall, a transformative 354,000-square-foot mixed-use academic and residential building adjacent to Columbia University in the neighborhood of Morningside Heights, a $5million pledge was made toward the Morningside Heights community fund. Funding will support community groups based in Morningside Heights, to address neighborhood priorities such as social justice programming, homelessness, health and wellness, education and other efforts to create a resilient community.
Claremont Hall in the springtime
