RI TRANSPARENCY REPORT - Lendlease - Reporting Tool
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R I T R A N S P A R E N C Y R E P O RT 2 01 8 Lendlease An investor initiative in partnership with UNEP Finance Initiative and UN Global Compact
About this report
The PRI Reporting Framework is a key step in the journey towards building a common language and industry standard for
reporting responsible investment (RI) activities. This RI Transparency Report is one of the key outputs of this Framework.
Its primary objective is to enable signatory transparency on RI activities and facilitate dialogue between investors and their
clients, beneficiaries and other stakeholders. A copy of this report will be publicly disclosed for all reporting signatories on
the PRI website, ensuring accountability of the PRI Initiative and its signatories.
This report is an export of the individual Signatory organisation’s response to the PRI during the 2018 reporting cycle. It
includes their responses to mandatory indicators, as well as responses to voluntary indicators the signatory has agreed to
make public. The information is presented exactly as it was reported. Where an indicator offers a response option that is
multiple-choice, all options that were available to the signatory to select are presented in this report. Presenting the
information exactly as reported is a result of signatory feedback which suggested the PRI not summarise the information.
As a result, the reports can be extensive. However, to help easily locate information, there is a Principles index which
highlights where the information can be found and summarises the indicators that signatories complete and disclose.
Understanding the Principles Index
The Principles Index summarises the response status for the individual indicators and modules and shows how these
relate to the six Principles for Responsible Investment. It can be used by stakeholders as an ‘at-a-glance’ summary of
reported information and to identify particular themes or areas of interest.
Indicators can refer to one or more Principles. Some indicators are not specific to any Principle. These are highlighted in
the ‘General’ column. When multiple Principles are covered across numerous indicators, in order to avoid repetition, only
the main Principle covered is highlighted.
All indicators within a module are presented below. The status of indicators is shown with the following symbols:
Symbol Status
The signatory has completed all mandatory parts of this indicator
The signatory has completed some parts of this indicator
This indicator was not relevant for this signatory
- The signatory did not complete any part of this indicator
The signatory has flagged this indicator for internal review
Within the table, indicators marked in blue are mandatory to complete. Indicators marked in grey are voluntary to complete.
1Principles Index
Organisational Overview Principle General
Indicator Short description Status Disclosure 1 2 3 4 5 6
OO TG -
OO 01 Signatory category and services Public
OO 02 Headquarters and operational countries Public
Subsidiaries that are separate PRI Public
OO 03
signatories
OO 04 Reporting year and AUM Public
Asset mix
OO 05 Breakdown of AUM by asset class disclosed in
OO 06
How would you like to disclose your asset Public
OO 06
class mix
OO 07 Fixed income AUM breakdown n/a
OO 08 Segregated mandates or pooled funds n/a
OO 09 Breakdown of AUM by market Public
Active ownership practices for listed n/a
OO 10
assets
OO 11 ESG incorporation practices for all assets Public
Modules and sections required to Public
OO 12
complete
Breakdown by passive, quantitative, n/a
OO LE 01
fundamental and other active strategies
Reporting on strategies that areCCStrategy and Governance Principle General
Indicator Short description Status Disclosure 1 2 3 4 5 6
SG 01 RI policy and coverage Public
Publicly available RI policy or guidance Public
SG 02
documents
SG 03 Conflicts of interest Public
Identifying incidents occurring within Private
SG 04
portfolios
SG 05 RI goals and objectives Public
SG 06 Main goals/objectives this year Public
SG 07 RI roles and responsibilities Public
SG 07 CC Climate-issues roles and responsibilities Public
RI in performance management, reward Public
SG 08
and/or personal development
SG 09 Collaborative organisations / initiatives Public
SG 09.2 Assets managed by PRI signatories n/a
SG 10 Promoting RI independently Public
Dialogue with public policy makers or Public
SG 11
standard setters
Role of investment consultants/fiduciary Public
SG 12
managers
SG 13 ESG issues in strategic asset allocation Public
Long term investment risks and Public
SG 14
opportunity
Allocation of assets to environmental and Public
SG 15
social themed areas
ESG issues for internally managed n/a
SG 16
assets not reported in framework
ESG issues for externally managed n/a
SG 17
assets not reported in framework
SG 18 Innovative features of approach to RI Public
SG 19 Communication Public
SG End Module confirmation page -
3Direct - Property Principle General
Indicator Short description Status Disclosure 1 2 3 4 5 6
Responsible Property Investment (RPI) Public
PR 01
policy
PR 02 Fund placement documents and RI Public
PR 03 Formal commitments to RI Public
Incorporating ESG issues when selecting Public
PR 04
investments
Types of ESG information considered in Public
PR 05
investment selection
PR 06 ESG issues impact in selection process Public
ESG issues in selection, appointment
PR 07 and monitoring of third-party property n/a
managers
PR 08 ESG issues in post-investment activities Public
Proportion of assets with ESG targets Public
PR 09
that were set and monitored
Certification schemes, ratings and Public
PR 10
benchmarks
Proportion of developments and
PR 11 refurbishments where ESG issues were Public
considered
Proportion of property occupiers that Public
PR 12
were engaged with
Proportion of green leases or MOUs Public
PR 13
referencing ESG issues
Proportion of assets engaged with on Public
PR 14
community issues
ESG issues affected financial/ESG Public
PR 15
performance
Examples of ESG issues that affected Public
PR 16
your property investments
PR End Module confirmation page -
Assurance Principle General
Indicator Short description Status Disclosure 1 2 3 4 5 6
CM1 01.1 Assurance, verification, or review Public
CM1 01.2 Public
Assurance of this year's PRI data
& 01.8
CM1 01.3 Public
Assurance of last year's PRI data
& 01.9
CM1
01.4, 10- Other confidence building measures Public
12
CM1 01.5 External assurance n/a
CM1 01.6 Assurance or internal audit n/a
CM1 01.7 Internal verification Public
CM1 01 -
Module confirmation page
End
4Lendlease
Reported Information
Public version
Organisational Overview
PRI disclaimer
This document presents information reported directly by signatories. This information has not been audited by the PRI
Secretariat or any other party acting on their behalf. While this information is believed to be reliable, no representations or
warranties are made as to the accuracy of the information presented, and no responsibility or liability can be accepted for
any error or omission.
5Basic information
OO 01 Mandatory Public Gateway/Peering General
OO 01.1 Select the services and funds you offer
Fund management
% of assets under management (AUM) in ranges
50%
Fund of funds, manager of managers, sub-advised products
Other, specify
Further options for investment managers (may be selected in addition to the above)
Execution and advisory services
Hedge funds
Fund of hedge funds
OO 01.3 Additional information. [Optional]
Lendlease's Investment Management (LLIM) business manages A$27.9 billion in assets under management (AUM)
comprised of property assets held across unlisted funds and separate mandates in Australia, Asia and Europe.
Lendlease Group also manages A$0.4 billion of social infrastructure assets, but these investments are not managed
by LLIM. On this basis, they have been excluded in the reported AUM and the scope of the PRI assessment.
LLIM invests on behalf of institutional investors including pension funds, sovereign wealth funds, investment
managers and insurance companies, and gives its investment partners access to quality property assets across the
risk/return spectrum.
The investment management business has access to Lendlease's in-house development, asset and property
management, research, capital transactions, project management and construction skills. These end-to-end
capabilities help it provide property investment opportunities that meet its client's needs.
OO 02 Mandatory Public Peering General
OO 02.1 Select the location of your organisation’s headquarters.
Australia
6OO 02.2 Indicate the number of countries in which you have offices (including your headquarters).
1
2-5
6-10
>10
OO 02.3 Indicate the approximate number of staff in your organisation in full-time equivalents (FTE).
FTE
108
OO 03 Mandatory Public Descriptive General
Indicate whether you have subsidiaries within your organisation that are also PRI signatories in
OO 03.1 their own right.
Yes
No
OO 04 Mandatory Public Gateway/Peering General
OO 04.1 Indicate the year end date for your reporting year.
31/12/2017
Indicate your total AUM at the end of your reporting year, Exclude subsidiaries you have chosen
OO 04.2 not to report on and any advisory/execution only assets.
trillions billions millions thousands hundreds
Total AUM 27 900 000 000
Currency AUD
Assets in USD 21 198 390 004
OO 04.5 Additional information. [Optional]
Lendlease's global investment management platform spans Asia, Australia and the United Kingdom.
Its investment management business manages A$27.9 billion in assets under management (AUM) comprised of
property assets held across unlisted funds and separate mandates in Australia (A$21.2 billion), Asia (A$5.7 billion)
and Europe (A$0.6 billion).
Lendlease Group also manages A$0.4 billion of social infrastructure assets, but these investments are not managed
by LLIM and have been excluded from the AUM reported above.
7OO 06 Mandatory Public Descriptive General
New selection options have been added to this indicator. Please review your prefilled responses carefully.
OO 06.1 Select how you would like to disclose your asset class mix.
as percentage breakdown
Internally managed (%) Externally managed (%)
Listed equity 0 0
Fixed income 0 0
Private equity 0 0
Property 100 0
Infrastructure 0 0
Commodities 0 0
Hedge funds 0 0
Forestry 0 0
Farmland 0 0
Inclusive finance 0 0
Cash 0 0
Other (1), specify 0 0
Other (2), specify 0 0
as broad ranges
OO 06.2 Publish asset class mix as per attached image [Optional].
OO 06.3 Provide contextual information on your AUM asset class split. [Optional]
The AUM quoted in asset class splits can be summarised as follows:
Retail shopping centres: A$13.24 billion (assets located in Australia, New Zealand, Singapore, Malaysia and United
Kingdom)
Commercial office: A$12.46 billion (assets located in Australia)
Mixed use assets (retail and commercial office): A$1.4 billion (assets located in Singapore)
8Industrial warehouses and business parks: A$0.8 billion (assets located in Australia)
OO 09 Mandatory to Report Voluntary to Public Peering General
Disclose
OO 09.1 Indicate the breakdown of your organisation’s AUM by market.
0%
50 %
Emerging, Frontier and Other Markets 0%
50 %
Total100%
OO 09.2 Additional information. [Optional]
Lendlease Investment Management invests in assets located primarily in the developed markets of Australia, New
Zealand, Singapore and the United Kingdom. It also holds an asset in Malaysia (Setia City Mall), an emerging
market.
Asset class implementation gateway indicators
OO 11 Mandatory Public Gateway General
Property
We address ESG incorporation.
We do not do ESG incorporation.
OO 12 Mandatory Public Gateway General
Below are all applicable modules or sections you may report on. Those which are mandatory to
OO 12.1 report (asset classes representing 10% or more of your AUM) are already ticked and read-only.
Those which are voluntary to report on can be opted into by ticking the box.
Core modules
Organisational Overview
Strategy and Governance
9RI implementation directly or via service providers
Direct - Other asset classes with dedicated modules
Property
RI implementation via external managers
Closing module
Closing module
Peering questions
OO PR 01 Mandatory to Report Voluntary to Public Descriptive General
Disclose
New selection options have been added to this indicator. Please review your prefilled responses carefully.
OO PR Indicate the level of ownership you typically hold in your property investments.
01.1
a majority stake (>50%)
a 50% stake
a significant minority stake (between 10-50%)
a limited minority stake (50%
10 – 50%
OO PR 02 Mandatory to Report Voluntary to Public Gateway General
Disclose
OO PR Provide a breakdown of your organisation’s property assets based on who manages the assets.
02.1
Property assets managed by Breakdown of your property assets (by number)
Managed directly by your organisation >50%
10-50%
50%
10-50%
50%
10-50%
50%
10-50%
< 10%
0%
Total100%
OO PR Additional information. [Optional]
02.2
Lendlease Investment Management (LLIM)'s AUM is comprised of a large proportion of assets in shopping centres
and commercial offices that are directly managed.
A small minority (3 shopping centres and 1 commercial office property by number) of assets are managed by joint-
venture partners and jointly appointed property managers. Whilst these assets are managed by JV partners, they
are managed in accordance with LLIM's principles, policies and procedures in accordance with our Responsible
Property Invesmtent Policy Statement and the relavant fund specific sustainability strategy.
LLIM's industrial assets are predominantly managed by tenants with operational control. The percentage allocated
(10-50% by number of total assets in LLIM) in this circumstance reflects the greater number of industrial assets than
offices and shopping centres in LLIM. In cases of assets with common areas and multiple tenants, these areas are
managed directly by LLIM.
OO PR 03 Voluntary Public Descriptive General
11OO PR Indicate up to three of your largest property types by AUM.
03.1
Types Main property types (by AUM)
Largest property type Industrial
Retail
Office
Residential
Leisure/Hotel
Mixed use
Other, specify
Second largest property type Industrial
Retail
Office
Residential
Leisure/Hotel
Mixed use
Other, specify
Third largest property type Industrial
Retail
Office
Residential
Leisure/Hotel
Mixed use
Other, specify
OO PR Additional information.
03.2
Lendlease Investment Management (LLIM)'s sector weighting is led by retail shopping centres, representing 47% or
A$13.24 billion of AUM. Commercial offices account for 45% or A$12.46 billion of AUM. Mixed use assets
(represented by JEM, a mixed shopping centre and commercial office asset in Singapore) accounts for 5% or A$1.4
billion of AUM. Industrial logistics and warehouse buildings located in Australia represent 3% or A$0.8 billion of
AUM.
12Lendlease
Reported Information
Public version
Strategy and Governance
PRI disclaimer
This document presents information reported directly by signatories. This information has not been audited by the PRI
Secretariat or any other party acting on their behalf. While this information is believed to be reliable, no representations or
warranties are made as to the accuracy of the information presented, and no responsibility or liability can be accepted for
any error or omission.
13Investment policy
SG 01 Mandatory Public Core Assessed General
New selection options have been added to this indicator. Please review your prefilled responses carefully.
SG 01.1 Indicate if you have an investment policy that covers your responsible investment approach.
Yes
SG 01.2 Indicate the components/types and coverage of your policy.
Select all that apply
Policy components/types Coverage by AUM
Policy setting out your overall approach Applicable policies cover all AUM
Formalised guidelines on environmental factors Applicable policies cover a majority of AUM
Formalised guidelines on social factors Applicable policies cover a minority of AUM
Formalised guidelines on corporate governance factors
Asset class-specific RI guidelines
Sector specific RI guidelines
Screening / exclusions policy
Other, specify (1)
Reporting against Fund ﹠Corporate targets
Other, specify(2)
SG 01.3 Indicate if the investment policy covers any of the following
Your organisation’s definition of ESG and/or responsible investment and it’s relation to investments
Your investment objectives that take ESG factors/real economy influence into account
Time horizon of your investment
Governance structure of organisational ESG responsibilities
ESG incorporation approaches
Active ownership approaches
Reporting
Climate change and related issues
Other RI considerations, specify (1)
Other RI considerations, specify (2)
14Describe your organisation’s investment principles and overall investment strategy, and how
SG 01.4 they consider ESG factors and real economy impact.
Lendlease's Investment Management business first released a Responsible Property Investment Policy (RPI
Policy) in June 2007. The RPI Policy creates a formal framework for ESG and safety factors for all
Lendlease managed funds.
Lendlease's RPI Policy commits to formally evaluating the impacts and risks of ESG issues in its investment
and management decision making. This includes developing and implementing sustainability strategies for
each of its funds, globally, that address Lendlease's operating principles and key sustainability focus areas.
The strategies clearly articulate the sustainability aspirations and performance targets for assets and
portfolios, addressing the key ESG factors that will govern how each existing asset and acquisition will
contribute to investment value in both sustainable and financial terms.
There are specific sustainability strategies for each fund that provide clear ESG guidelines, objectives,
commitments and targets.
Provide a brief description of the key elements, any variations or exceptions to your
SG 01.5 investment policy that covers your responsible investment approach. [Optional]
In line with Lendlease Investment Management (LLIM)'s signatory commitment under the United Nations
supported Principles for Responsible Investment (PRI), LLIM is committed to creating value for all
stakeholders in everything it does by delivering positive economic, environmental and social outcomes whilst
operating in an environment that is incident and injury-free.
LLIM's Responsible Property Investment (RPI) Policy commits the organisation to the following actions:
1. Formally evaluating the impacts and risks of environmental, social and corporate governance (ESG)
issues in its investment and management decision making;
2. Developing and implementing sustainability strategies for each of its funds, globally, that address
Lendlease Group's operating principles and key sustainability focus areas;
3. Measuring and reporting on ESG criteria;
4. Using green rating tools and labels, where they exist, to benchmark and disclose the ESG performance of
assets and portfolios;
5. Engaging and sharing knowledge with stakeholders on ESG issues related to responsible property
investment practices, promoting the PRI;
6. Collaborating with industry bodies, government agencies and like-minded stakeholders on tools, labels
and incentives which promote sustainable ESG performance in the property and investment industries.
7. Reporting progress annually against its actions.
The fund specific sustainability strategies described above provided clear ESG guidelines, objectives,
commitments and targets for each Lendlease managed property fund.
Lendlease's Code of Conduct commits Lendlease to investing in "people today for their tomorrow" and
fostering a culture of diversity and inclusion. This commitment includes support for responsible labour
practices that contribute to the development of a fair and inclusive workplace, consistent with international
standards such as the OECD guidelines for multinational enterprises, the Universal Declaration of Human
Rights, the ILO Declaration on fundamental principles and rights at work and the UN guiding principles on
business and human rights.
Suppliers to Lendlease are expected (at a minimum) to:
- Comply with all relevant, local and national laws and regulations with regards to employment practices,
benefits, health and safety and ante-discrimination.
- Advance an inclusive workplace free of discrimination, harassment, bullying and other unlawful behaviour.
- Not use any form of child, forced or involuntary labour and abide with all international standards and
domestic regulations relating to the employment of children, and have policies or procedures in place to
prevent the use of suppliers of goods and services who engage in such activities.
- Respect the rights of workers to associate freely with one another and be able to communicate openly with
management regarding working conditions without threat of reprisal, intimidation or harassment.
15 No
SG 02 Mandatory Public Core Assessed PRI 6
New selection options have been added to this indicator. Please review your prefilled responses carefully.
Indicate which of your investment policy documents (if any) are publicly available. Provide a URL
SG 02.1 and an attachment of the document.
Policy setting out your overall approach
URL/Attachment
URL
URL
https://www.lendlease.com/au/-/media/llcom/hy18-updates/investment-management/ll-rpi-policy_sep-
2017_final.ashx?la=en
Attachment (will be made public)
Attachment
File 1:LL RPI Policy_Sep 2017_Final.pdf
Formalised guidelines on environmental factors
URL/Attachment
URL
URL
http://www.lendlease.com/au/company/sustainability/our-progress/
Attachment (will be made public)
Attachment
File 1:LL sustainability framework_Enviro.pdf
Formalised guidelines on social factors
URL/Attachment
URL
16URL
http://www.lendlease.com/au/company/sustainability/our-progress/
Attachment (will be made public)
Attachment
File 1:LL sustainability framework_Social.pdf
Formalised guidelines on corporate governance factors
URL/Attachment
URL
URL
http://www.lendlease.com/au/company/sustainability/our-progress/
Attachment (will be made public)
Attachment
File 1:LL sustainability framework_Governance.pdf
Asset class-specific RI guidelines
Sector specific RI guidelines
Other, specify (1)
Other, specify (1) description
Reporting against Fund ﹠Corporate targets
URL/Attachment
URL
URL
http://www.lendlease.com/expertise/what-we-do/investment-management/#/section/anchor-
responsibleinvestment?animate=true
Attachment (will be made public)
17Attachment
File 1:LL sustainability performance reporting.pdf
We do not publicly disclose our investment policy documents
Indicate if any of your investment policy components are publicly available. Provide URL and an
SG 02.2 attachment of the document.
Your organisation’s definition of ESG and/or responsible investment and it’s relation to investments
URL/Attachment
URL
URL
https://www.lendlease.com/expertise/what-we-do/investment-management/#/section/anchor-
responsibleinvestment?animate=true
Attachment
File Attachment
LLIM ESG definition.pdf [258KB]
Your investment objectives that take ESG factors/real economy influence into account
URL/Attachment
URL
URL
https://www.lendlease.com/-/media/llcom/hy18-updates/investment-management/ll-rpi-policy_sep-
2017_final.ashx?la=en
Attachment
File Attachment
LL RPI Policy_Sep 2017_Final.pdf [25KB]
Time horizon of your investment
URL/Attachment
URL
18URL
https://www.lendlease.com/-/media/llcom/hy18-updates/investment-management/ll-rpi-policy_sep-
2017_final.ashx?la=en
Attachment
File Attachment
LL RPI Policy_Sep 2017_Final.pdf [25KB]
Governance structure of organisational ESG responsibilities
URL/Attachment
URL
URL
https://www.lendlease.com/-/media/llcom/hy18-updates/investment-management/ll-rpi-policy_sep-
2017_final.ashx?la=en
Attachment
File Attachment
LL RPI Policy_Sep 2017_Final.pdf [25KB]
ESG incorporation approaches
URL/Attachment
URL
URL
https://www.lendlease.com/-/media/llcom/hy18-updates/investment-management/ll-rpi-policy_sep-
2017_final.ashx?la=en
Attachment
File Attachment
LL RPI Policy_Sep 2017_Final.pdf [25KB]
Active ownership approaches
19URL/Attachment
URL
URL
https://www.lendlease.com/-/media/llcom/hy18-updates/investment-management/ll-rpi-policy_sep-
2017_final.ashx?la=en
Attachment
File Attachment
LL RPI Policy_Sep 2017_Final.pdf [25KB]
Reporting
URL/Attachment
URL
URL
https://www.lendlease.com/company/sustainability/our-progress/
Attachment
File Attachment
LL RPI Policy_Sep 2017_Final.pdf [25KB]
Climate-related issues
URL/Attachment
URL
URL
https://www.lendlease.com/company/sustainability/our-progress/resilience-and-adaptation/
Attachment
File Attachment
LL sustainability framework_Resilience.pdf [292KB]
We do not publicly disclose any investment policy components
20Indicate if your organisation’s investment principles, and overall investment strategy is publicly
SG 02.3 available
Yes
URL
https://www.lendlease.com/expertise/what-we-do/investment-management/australian-prime-property-fund-
commercial/
No
SG 02.4 Additional information [Optional].
Lendlease Investment Management (LLIM) Responsible Property Investment (RPI) Policy is underpinned by
Lendlease Group's Sustainability Framework. Formalised guidelines on environmental, social and corporate
governance considerations is publicly available at:
http://www.lendlease.com/au/company/sustainability/our-approach/#/section/anchor-
sustainabilityframework?animate=true
Each of the 12 sustainability elements is explained in detail along with progress made at:
http://www.lendlease.com/au/company/sustainability/our-progress/
In response to SG02.3, LLIM's investment principles can be described in each of the fund profile pages. For
example:
* https://www.lendlease.com/expertise/what-we-do/investment-management/australian-prime-property-fund-
commercial/
* https://www.lendlease.com/expertise/what-we-do/investment-management/australian-prime-property-fund-retail/
https://www.lendlease.com/expertise/what-we-do/investment-management/australian-prime-property-fund-
industrial/
SG 03 Mandatory Public Core Assessed General
Indicate if your organisation has a policy on managing potential conflicts of interest in the
SG 03.1 investment process.
Yes
SG 03.2 Describe your policy on managing potential conflicts of interest in the investment process.
Lendlease Investment Management (LLIM) implements several policies that contribute to the management of
potential conflicts of interest. These policies include but are not limited to the following:
- Arrangements for Managing Conflicts of Interest (Australia)
- Allocation of Property Asset Investment Opportunities in Australia
- Related Party Transactions Policy
- Core Values
- Code of Conduct
- Employee Conduct Guide
- Code of Conduct Breach Reporting Policy
Several of the policies noted above are publicly available on the Lendlease website (under Company Policies)
http://www.lendlease.com/company/governance/
21 No
Objectives and strategies
SG 05 Mandatory Public Gateway/Core Assessed General
Indicate if and how frequently your organisation sets and reviews objectives for its responsible
SG 05.1 investment activities.
Quarterly or more frequently
Biannually
Annually
Less frequently than annually
Ad-hoc basis
It is not set/reviewed
SG 05.2 Additional information. [Optional]
Lendlease Investment Management (LLIM)'s Australian business undertakes periodic reviews for the funds through
Sustainability Project Control Group (PCG) meetings (or equivalent) where participants review key achievements,
project completions and objectives for each fund's responsible investment activities. LLIM's Asia business reviews
asset performance during Quarterly Asset Reviews. LLIM's Australian and European businesses review the
progress of responsible investment objectives and provides quarterly performance updates to investors.
LLIM's performance is also featured (as a material contributor to Lendlease corporate 2020 targets) in Lendlease's
Quarterly Business Review (QBR) process. In this instance, the review seeks to examine the performance of LLIM
quarterly against the twelve aspirations in Lendlease's Sustainability Framework. Detailed drivers of performance
are examined to help establish short and medium term objectives to be achieved, demonstrating the continual
monitoring and review process.
SG 06 Voluntary Public Descriptive General
SG 06.1 List the main responsible investment objectives that your organisation set for the reporting year.
Responsible investment processes
Provide training on ESG incorporation
Key performance indicator
Employees briefed on Lendlease's ESG approach and fund strategies via "Lunch and Learn" presentations
together with internal conferences.
Progress achieved
All employees of Lendlease Investment Management participated in responsible investment related learning
and development events including 'lunch and learn' sessions, with themes covered in 2017 that included:
* GRESB Real Estate Assessment - briefing undertaken by local GRESB representative
* Footprint - Lendlease's new global online environmental reporting system which was deployed in 2017
22* Project knowledge profiles such as the Barangaroo, Sydney precinct
* All employees were required to complete the "How we work at Lendlease" online training modules that
captures ESG considerations in the course of the employees' roles and responsibilities at Lendlease.
Mandatory online courses and annual refreshers on health, safety and environment (Lendlease's Global
Minimum Requirements) complement ESG-related training.
Provide training on ESG engagement
Key performance indicator
Employees trained on community and stakeholder engagement strategy development.
Progress achieved
In 2017, many Lendlease employees were provided with training on community and stakeholder
engagement for retail assets. The training delivered provides a structured approach to community and
stakeholder engagement strategy development, which commences with a comprehensive stakeholder
mapping exercise. All stakeholders are mapped against level of influence and level of interest. The training
confirms that once stakeholders have been mapped, strategic engagement plans can be developed.
Lendlease also completed its delpoyment of Cultural Awareness training was in which participants learn
about Australian indigenous culture and history as part of Lendlease's Indigenous Reconciliation Action Plan
commitments.
Improved communication of ESG activities within the organisation
Key performance indicator
Quality and usability of case studies in fund publications.
Progress achieved
In 2017, 25 unique case studies were written on ESG issues. Titles included:
- Environmental efficiency at 66 Eagle Street Brisbane
- Green Leasing
- The transformative power of transparency (GRESB)
- Maximising recycling opportunities from de-fit activities at Brisbane Transit Centre
- Organic waste recycling at Erina Fair
- Erina's Fiar Pulpmaster organics recycling journey
- Warehouse lighting upgrades
- A partnership approach to sustainability outcomes (industrial assets)
- Northgate Shopping Centre LED lighting replacement program
- The benefts of continued energy and water efficiency audits
- Power factor correction at Dress-Smart Onehunga (Auckland, New Zealand retail)
- Barangaroo South District Cooling Plant
- Innovation in design and construction to reduced embodied carbon emissions
- Green Roof at Darling Square
- Solar energy implementation at 35 Tumbalong Boulevarde, Sydney
- Cloud-based data analytics (for mechanical building systems)
- Electric vehicle charging stations at Lakeside Joondalup (Australian shopping centre)
23- Leveraging big data to identify and resolve building service problems
- The benefits of energy and water audits
- Bluewater LED lighting replacement
- Bluewater Employee Well-being policy
- Bluewater Don't Waste
- Touchwood Enterprise Kiosk
- Touchwood Energy Management (ISO50001 Accreditation)
- Touchwood Waste Management Strategy
Improved engagement to encourage change with regards to management of ESG issues
Key performance indicator
Tenant electricity usage benchmarking to inform energy efficiency opportunities.
Progress achieved
For LLIM Australia's industrial portfolio, electricity usage was sought from tenants. Information for over 83%
of area coverage with discussions on energy efficiency programs such as lighting upgrades and solar PV
installations. Several initiatives including lighting upgrades were completed during calendar 2017. The data
provided is helping to inform the feasibility of a strategic solar PV installation across the industrial asset
portfolio. This activity commenced in 2017 and is ongoing.
In 2017, LLIM completed a benchmark study of the electricity usage trends of shopping centre tenants.
Sourcing the electricity usage of almost 3000 retail tenants, this study identified both low and high energy
users across a large spectrum of tenancy uses. The objective was to identify the lowest tenancy energy
users (relative to their tenancy retail functions) and to engage with higher than average electricity usage to
develop strategies that could reduce their overall usage. This analysis will be undertaken on an annual basis
(as updated data is received on an annual basis) and used to engage with key stakeholders.
Improved ESG incorporation into investment decision making processes
Key performance indicator
Application of LLIM's due diligence checklist during the acquisition process.
Progress achieved
Lendlease Investment Management undertakes a comprehensive due diligence process for acquisitions. A
key element of the process is the completion of a due diligence checklist which extensively considers
environmental, social and governance factors.
The due diligence checklist was extensively utilised in calendar 2017 and resulted in the successful
acquisition of five assets.
Other, specify (1)
Other, specify (2)
Other, specify (3)
Financial performance of investments
Increase portfolio performance by consideration of ESG factors
24Key performance indicator
Proportion of portfolio classed as 'green buildings'
Progress achieved
Australian Prime Property Fund (APPF) Commercial achieved a 6 Star portfolio Green Star Performance
certification. This achievement is the first portfolio in Australia to achieve a 6 Star portfolio outcome.
APPF Industrial was awarded a 5 Star Green Star Design and As Built certification for an asset in Western
Sydney (36 Honeycomb Drive, Eastern Creek).
In 2017, the resolution of legacy metering issues resulted in 100% of rateable retail shopping centre and
commercial office properties achieve a NABERS Energy and NABERS Water ratings (where achievable).
This excludes properties (all industrial assets) that cannot achieve a NABERS rating as the tool is applicable
to office and shopping centre type properties.
LLIM funds actively seek to enhance sustainability performance and outcomes of property acquisitions
through the identification of building upgrades that can achieve environmental efficiency outcomes. An
example is the APPF Commercial acquisition of 8 Spring Street Sydney. The completion of energy and water
efficiency audits identified immediate capital expenditure initiatives relating to lighting upgrades, plant
upgrades and metering installations to assist in the operation of the asset and performance assessed
through NABERS ratings and Green Star Performance certification process.
LLIM Asia have maintained their asset environmental ratings performance in 2017.
Other, specify (1)
Other, specify (2)
Other, specify (3)
ESG characteristics of investments
Over or underweight companies based on ESG characteristics
Improve ESG ratings of portfolio
Key performance indicator
GRESB Performance
Progress achieved
Lendlease continued to outperform its stated targets for Australian and Asian core funds, at both global and
regional leadership. A summary of the GRESB performance of LLIM Funds in 2017 below:
* Australian-based APPF Commercial achieved a score of 96% (improving from 93% in 2016) and a ranked
1st out of 823 global GRESB Real Estate Assessment participants (850 when including GRESB Developer
Assessment participants).
* Australian-based LLITST and LLOITST both achieved a score of 96% and ranked equal first of 27 global
respondents in the GRESB Real Estate Developer Assessment.
* Australian-based APPF Retail achieved a score of 93% (an increased change of 5% from 2016) and was
ranked 12th globally out of 823 GRESB participants, improving from the 2016 rank of 22nd of 759 GRESB
participants. It was ranked third of 17 shopping centre funds in the Australia retail peer group.
LLIM Asian based funds all achieved a rank in the top 10 real estate funds in Asia including Lendlease Asian
Retail Investment Fund (ARIF) 1 ranked first, Lendlease Jem Partners ranked second, ARIF 3 ranked third,
ARIF 2 ranked fourth and Lendlease Parkway Parade Partners ranked seventh.
25 Setting carbon reduction targets for portfolio
Key performance indicator
Carbon targets set by 2020 against fiscal year 2014 baseline.
Progress achieved
Lendlease has set a group-wide carbon reduction target of 20% by fiscal year 2020. Lendlease Investment
Management achieved a 28.1% reduction in carbon emissions in December 2017 against a calendar 2014
baseline.
Other, specify (1)
Other, specify (2)
Other, specify (3)
Other activities
Joining and/or participation in RI initiatives
Key performance indicator
RI initiatives participated in.
Progress achieved
Lendlease actively participates in several RI initiatives on an ongoing basis. In addition to this, Lendlease
became a member of the Investor Group on Climate Change, Australia and New Zealand in 2015.
Lendlease Investment Management Asia participate in the Asia Pacific Real Estate Association (APREA)
Sustainability and ESG Roundtable Committee.
The Head of Sustainability, Property is an active participant in the UNEP FI Property Working Group (PWG)
activities since 2008. The UNEP FI Property Working Group (PWG) promotes responsible property
investment that achieves the best possible environmental, social and financial results. Participation in the
PWG has included contributing to important UNEP FI papers, attendance at meetings/roundtables, and
participation in regular teleconferences.
Lendlease Group has a formal commitment to the UN Global Compact. It supports the 10 principles and
intends to implement the principles across its operations. Lendlease has become a Compact Network
member in Australia and has already hosted an external stakeholder event on Human Rights in the
Construction supply chain. The event was attended by NGOs, clients, project partners and investors.
LLIM employees in Australia currently participate in all Better Buildings Partnership working groups. As
founding members, the General Manager, Sustainability is a member of BBP's Leadership Panel.
Encouraging others to join a RI initiative
Key performance indicator
RI initiatives promoted.
26Progress achieved
Lendlease actively encouraged its investors to become members of GRESB in 2017.
Lendlease Investment Management's (LLIM) support and active participation can be exemplified through the
following:
- Scott Mosely (APPF Commercial Fund Manager) keynote speaker at the GRESB Oceania results launch
(Sep, 2017)
- Liam Timms (Fund Manager of LLITST) was a panel speaker at the Property Council of Australia Climate
Resilience event.
- Jon Collinge (General Manager Sustainability, LLIM Australia) presented at the GRESB Sustainability &
ESG Investment in Real Estate conference (Tokyo, Japan. Nov 2017)
- Andrew Cole (Regional Sustainability Manager, Lendlease Property) moderated at a Health and Wellbeing
plenary session at Green Build 2017 (Boston, MA, USA. Nov 2017)
- Direct engagement with investors at events such as investor forums and ESG meetings and presentations.
Documentation of best practice case studies
Key performance indicator
Number of case studies developed.
Progress achieved
In 2017, 25 unique case studies were written on ESG issues. Titles included:
- Environmental efficiency at 66 Eagle Street Brisbane
- Green Leasing
- The transformative power of transparency (GRESB)
- Maximising recycling opportunities from de-fit activities at Brisbane Transit Centre
- Organic waste recycling at Erina Fair
- Erina's Fiar Pulpmaster organics recycling journey
- Warehouse lighting upgrades
- A partnership approach to sustainability outcomes (industrial assets)
- Northgate Shopping Centre LED lighting replacement program
- The benefts of continued energy and water efficiency audits
- Power factor correction at Dress-Smart Onehunga (Auckland, New Zealand retail)
- Barangaroo South District Cooling Plant
- Innovation in design and construction to reduced embodied carbon emissions
- Green Roof at Darling Square
- Solar energy implementation at 35 Tumbalong Boulevarde, Sydney
- Cloud-based data analytics (for mechanical building systems)
- Electric vehicle charging stations at Lakeside Joondalup (Australian shopping centre)
- Leveraging big data to identify and resolve building service problems
- The benefits of energy and water audits
- Bluewater LED lighting replacement
- Bluewater Employee Well-being policy
- Bluewater Don't Waste
- Touchwood Enterprise Kiosk
- Touchwood Energy Management (ISO50001 Accreditation)
27- Touchwood Waste Management Strategy
Using case studies to demonstrate engagement and ESG incorporation to clients
Key performance indicator
Extent of case study incorporation into investor reporting.
Progress achieved
Lendlease increased the number of case studies being included in investor reporting (from 14 in 2014 to 25
case studies in 2017), and continued to report independently assured carbon, energy, water and waste data
to investors in 2017.
Other, specify (1)
Other, specify (2)
Other, specify (3)
Governance and human resources
SG 07 Mandatory Public Core Assessed General
Indicate the roles present in your organisation and for each, indicate whether they have oversight
SG 07.1 and/or implementation responsibilities for responsible investment.
Roles present in your organisation
Board members or trustees
Oversight/accountability for responsible investment
Implementation of responsible investment
No oversight/accountability or implementation responsibility for responsible investment
Chief Executive Officer (CEO), Chief Investment Officer (CIO), Investment Committee
Oversight/accountability for responsible investment
Implementation of responsible investment
No oversight/accountability or implementation responsibility for responsible investment
Other Chief-level staff or head of department, specify
Fund Managers
28 Oversight/accountability for responsible investment
Implementation of responsible investment
No oversight/accountability or implementation responsibility for responsible investment
Portfolio managers
Oversight/accountability for responsible investment
Implementation of responsible investment
No oversight/accountability or implementation responsibility for responsible investment
ESG portfolio manager
Oversight/accountability for responsible investment
Implementation of responsible investment
No oversight/accountability or implementation responsibility for responsible investment
Investment analysts
Oversight/accountability for responsible investment
Implementation of responsible investment
No oversight/accountability or implementation responsibility for responsible investment
Dedicated responsible investment staff
Oversight/accountability for responsible investment
Implementation of responsible investment
No oversight/accountability or implementation responsibility for responsible investment
External managers or service providers
Oversight/accountability for responsible investment
Implementation of responsible investment
No oversight/accountability or implementation responsibility for responsible investment
Investor relations
Oversight/accountability for responsible investment
Implementation of responsible investment
No oversight/accountability or implementation responsibility for responsible investment
Other role, specify (1)
Other role, specify (2)
For the roles for which you have RI oversight/accountability or implementation responsibilities,
SG 07.2 indicate how you execute these responsibilities.
Lendlease's Responsible Property Investment (RPI) Policy Statement is endorsed on an annual basis by the boards
of trustees of Lendlease Investment Management funds. This policy forms the cornerstone for all RPI activities
undertaken by Lendlease. Endorsement at the trustee levels ensures that trustees and executives are aware of and
accountable for Lendlease's RPI activities.
Further, the RPI Policy Statement calls for RPI strategies to be developed by each Lendlease managed property
fund. The aim of these strategies is to clearly define the RPI vision, objectives, commitments and targets. Once in
place and endorsed by the trustee board, the RPI strategies are used to define each fund's RPI deliverables.
RPI Strategies are in place for all active Funds and reviewed annually for currency of aspirations and targets. These
are continually reviewed at formal Sustainability Project Control Group (PCG) meetings involving all key
stakeholders.
29SG 07.3 Indicate the number of dedicated responsible investment staff your organisation has.
Number
12
SG 07.4 Additional information. [Optional]
Lendlease's Investment Management business (LLIM) has dedicated sustainability professionals and is supported
by health and safety professionals and a compliance manager who together assist the business to integrate ESG
into every aspect of management and business processes. The LLIM sustainability program is directed and
supported by the regional sustainability heads in Australia, Asia and Europe.
Rowan Griffin is the Head of Sustainability for Lendlease's Property Australia business. Responsible Investment for
LLIM Australia is headed by Jon Collinge (General Manager, Sustainability) with support from Chewy Chang
(Sustainability Manager) and Mary Farag (Sustainability Analyst). The business is supported by a Head of
Compliance.
LLIM's environment, health and safety program is supported by the Environment, Health and Safety function which
includes eight (8) Environment, Health and Safety (EHS) resources.
Simon Wild is the Head of Sustainability for Lendlease in Asia. Reina Tham is the regional Sustainability Analyst for
Lendlease's Asia business. Each retail asset in the LLIM Asia funds or mandates is supported by a compliance
manager.
Anita Mitchell is the Head of Sustainability for Lendlease in Europe and supported by Nardia Bowden (Sustainability
Manager) for Lendlease's European business.
Where appropriate, LLIM utilises the corporate sustainability resources of the broader Lendlease Group. This
includes the National Environment Manager for Lendlease's Property business, Rhonda Lenardon, National
Environment Manager and Andrew Cole, Regional Sustainability Manager - Property, Duncan Young, Head of
Health and Wellbeing - Property, Melissa Haigh - Head of Indigenous Affairs, Property, and sustainability analysts
that work on a consultancy basis within Lendlease's Building business.
SG 08 Voluntary Public Additional Assessed General
Indicate if your organisation’s performance management, reward and/or personal development
SG 08.1 processes have a responsible investment element.
Board members/Board of trustees
Responsible investment included in personal development and/or training plan
Describe any activities undertaken during the reporting year to develop and maintain
SG 08.2 Board members’ skills and knowledge in relation to responsible investment.
Trustee board members are required to undertake Responsible Manager training on an annual or bi-
annual basis and Directors duties and responsibilities are formally reviewed and discussed on a regular
basis.
Further to this, a sustainability/responsible property investment update, which includes important updates
on Lendlease's sustainability framework, industry trends and legislative changes, is provided to Australian
trustee boards on a six monthly basis by the General Manager, Sustainability Investment Management,
Lendlease Investment Management Australia.
None of the above
Chief Executive Officer (CEO), Chief Investment Officer (CIO), Investment Committee
30 Responsible investment KPIs and/or goals included in objectives
Responsible investment included in appraisal process
Variable pay linked to responsible investment performance
Responsible investment included in personal development and/or training plan
None of the above
Other C-level staff or head of department
Fund Managers
Responsible investment KPIs and/or goals included in objectives
Responsible investment included in appraisal process
Variable pay linked to responsible investment performance
Responsible investment included in personal development and/or training plan
None of the above
Portfolio managers
Responsible investment KPIs and/or goals included in objectives
Responsible investment included in appraisal process
Variable pay linked to responsible investment performance
Responsible investment included in personal development and/or training plan
None of the above
ESG portfolio manager
Responsible investment KPIs and/or goals included in objectives
Responsible investment included in appraisal process
Variable pay linked to responsible investment performance
Responsible investment included in personal development and/or training plan
None of the above
Investment analysts
Responsible investment KPIs and/or goals included in objectives
Responsible investment included in appraisal process
Variable pay linked to responsible investment performance
Responsible investment included in personal development and/or training plan
None of the above
Dedicated responsible investment staff
Responsible investment KPIs and/or goals included in objectives
Responsible investment included in appraisal process
Variable pay linked to responsible investment performance
Responsible investment included in personal development and/or training plan
None of the above
31Provide any additional information on your organisation’s performance management, reward and/or
SG 08.3 personal development processes in relation to responsible investment.
In addition to the KPI's and goals of individuals, Lendlease also implements a formal Performance Management
system which requires that every employee has a personal development plan. As a minimum, the following training
is undertaken by Lendlease Investment Management's employees (new starters at induction programs and periodic
courses for current staff):
Employee Code of Conduct (annual)
EH&S Passport (GMR) (annual)
Equal Opportunity Management (bi-annual)
Privacy (bi-annual)
Competition and Consumer (bi-annual)
Anti-money laundering/counter terrorism financing (new starters and bi-annual)
Lendlease Group's new sustainability framework is deployed across the business. The deployment includes
education relating to the twelve sustainability aspects that Lendlease has determined are material to its business.
The twelve aspects are: energy; water; waste; nature; community development; health and wellbeing; training,
employment and skills; diversity; resilience and adaptation; responsible investment; innovation. The education
campaign is being delivered through inductions, presentations, articles on Lendlease's internal intranet and through
messaging on each employee's computer equipment. Further details relating to Lendlease Group's sustainability
framework can be found on the Lendlease website http://www.lendlease.com/company/sustainability/our-
approach/#/section/anchor-sustainabilityframework?animate=true
A sustainability/responsible property investment update, which includes important updates on Lendlease's
sustainability framework, industry trends and legislative changes, is provided to Australian trustee boards on a six
monthly basis by LLIM's sustainability team.
The following responsible investment training is also undertaken by Lendlease Investment Management's
employees with key financial or managerial responsibilities:
Financial services licence (new starters and bi-annual)
Responsible Manager (responsible managers and senior management) (annual) (Australia market-specific)
DRS (derivative risk statement) - (finance and senior managers - bi-annual) (Australia market-specific)
Specific training required by individuals to meet the demands/requirements of their roles within the business is also
provided e.g. practicing lawyers and finance professionals.
Lendlease Investment Management Australia retains a training register, maintained by the Compliance Manager,
updated quarterly and reviewed annually as part of the Compliance Plan and external audits.
Promoting responsible investment
SG 09 Mandatory Public Core Assessed PRI 4,5
New selection options have been added to this indicator. Please review your prefilled responses carefully.
Select the collaborative organisation and/or initiatives of which your organisation is a member or in
SG 09.1 which it participated during the reporting year, and the role you played.
Select all that apply
Principles for Responsible Investment
32Your organisation’s role in the initiative during the reporting period (see definitions)
Basic
Moderate
Advanced
Provide a brief commentary on the level of your organisation’s involvement in the initiative.
[Optional]
In November 2007, Lendlease's investment management business became one of the first property investment
managers to become a signatory to the Principles for Responsible Investment (PRI).
Lendlease participates in regional PRI events and activities, and attended the PRI in Person conference in
Berlin in September 2017. Lendlease employees have also presented at PRI events.
Lendlease Investment Management has responded to the PRI survey every year since 2008.
Asian Corporate Governance Association
Australian Council of Superannuation Investors
AFIC – La Commission ESG
BVCA – Responsible Investment Advisory Board
CDP Climate Change
CDP Forests
CDP Water
CFA Institute Centre for Financial Market Integrity
Code for Responsible Investment in SA (CRISA)
Code for Responsible Finance in the 21st Century
Council of Institutional Investors (CII)
Eumedion
Extractive Industries Transparency Initiative (EITI)
ESG Research Australia
EVCA – Responsible Investment Roundtable
Global Investors Governance Network (GIGN)
Global Impact Investing Network (GIIN)
Global Real Estate Sustainability Benchmark (GRESB)
Your organisation’s role in the initiative during the reporting period (see definitions)
Basic
Moderate
Advanced
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