Carbon Disclosure Project 5

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					Carbon Disclosure Project 5
Lend Lease Corporation
Questionnaire Response
June 26, 2007

         This report has been prepared by Lend Lease Global Sustainability Group with assistance from Hyder Consulting Pty Ltd
Lend Lease Corporation:
Carbon Disclosure Project 5 Response

        Introduction .......................................................................................................................... 1

        1         Climate Change Risks, Opportunities and Strategy .............................................. 3

        2         Greenhouse Gas Emissions Accounting................................................................ 8

        3         Additional Greenhouse Gas Emissions Accounting ........................................... 14

        4         Greenhouse Gas Emissions Management............................................................ 15

        5         Climate Change Governance ................................................................................. 19

        6         Appendices.............................................................................................................. 20

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Carbon Disclosure Project 5                                                                                                        Lend Lease Corporation
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Lend Lease Corporation:
Carbon Disclosure Project 5 Response

                                               protocols for data collection of energy      - development of the largest solar-
Introduction                                   use, water efficiency in the permanent       powered community for the US
                                               offices we occupy, and waste                 Army in Hawaii (5,000 homes will
Since responding to Carbon Disclosure          generated and avoided across all             have solar panels)
Project 4, Lend Lease has spent the            sites where Lend Lease has a
past 12 months implementing systems            presence (offices, projects and              - construction of the Lancashire
and processes to deliver on the public         assets);                                     Waste Project in the UK with Global
commitment we made to better                                                                Renewables which includes
understand and address the impact of           • Broad advocacy of a carbon                 resource recovery, increased
Lend Lease operations globally.                abatement platform and work towards          recycling, reduction of waste to
                                               development of a carbon trading              landfill, and avoiding incineration, all
The diversity of Lend Lease’s                  mechanism based on energy                    of which reduce greenhouse gas
operations, its risk profile and               efficiency in buildings; Lend Lease is       emissions from household waste.
geographic spread - more than 80% of           also advocating for statutory
the organisation’s revenue comes from          incentives for business to reduce            The Lend Lease Executive
off-shore operations - makes the               energy consumption where these do            Management Team recently
calculation of our carbon footprint a          not exist;                                   committed to a series of
complex exercise but we have made a                                                         environmental, social and economic
good start.                                    • International advocacy for and             targets (to 2010) and longer-term
                                               development of the Real Estate and           aspirations that focus the
This year, the company’s employees –           Construction Sector Supplement               organisation on becoming more
almost 10,000 across 40 countries –            under the UN Global Reporting                sustainable.
have participated in a program that aims       Initiative framework for property and
to build a shared understanding of             construction sector reporting of non-        The key environmental aspiration is
sustainability at Lend Lease and an            financial performance;                       to make all buildings produced
urgency to respond to our organisation                                                      and/or operated by Lend Lease zero
impacts. Many employees have been              • Integration of sustainability filters in   carbon, water and waste (as a
directly involved in collecting data in this   the investment decision pipeline             minimum requirement).
first year of the company’s sustainability     process – the organisation’s
reporting program.                             investment fund exposure, long-term          The key environmental target, set
                                               maintenance contracts (some are up           for 2009, is to make all permanent
Our response to the Carbon Disclosure          to 50 years) and project horizons of         offices carbon neutral.
Project 5 highlights key activities            up to 30 years require full
undertaken as we work towards                  interrogation of climate impacts which       Lend Lease has taken a strong
realising our aspiration to become a           are addressed in the evaluation of all       international position on the impact
sustainable organisation. These include:       investment opportunities;                    of buildings and the potential to
                                                                                            rapidly reduce greenhouse gas
• Establishment of the Lend Lease              • Retrofitting Lend Lease offices in         emissions through energy efficiency.
Board’s Sustainability Committee to            London, Chicago and Denver to                We are very pleased for the
ensure governance and transparent              deliver energy reduction and                 opportunity to participate in the
reporting of environmental, social, and        efficiency;                                  Carbon Disclosure Project 5, both
economic impacts;                                                                           as part of our broader program to
                                               • Advocating and participating in the        quantify our impacts but also
• The company-wide adoption of the             development and establishment of             because we believe it is essential to
Lend Lease Climate Change and Waste            new Green Building Councils in the           work with like-minded organisations
Management Policy Position                     UK (Lend Lease is a founding board           in our own sector and across
Statements;                                    member), UAE, and China;                     industries to share the information
                                                                                            and the best practices that position
• Reporting, for the first time, Lend          • Partnering with other Australian and       us all to act on the climate-related
Lease’s energy use in over 100 offices         international organisations to develop       threats and opportunities we face.
(owned premises and tenancies)                 innovative and iconic environmental
worldwide and calculating the                  projects, such as:
corresponding greenhouse gas
emissions;                                     - construction of the world’s largest        GREG CLARKE
                                               green building for ANZ Banking               Group CEO
• Development of procedures and                Group’s headquarters in Melbourne            Lend Lease Pty Ltd

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Lend Lease Corporation:
Carbon Disclosure Project 5 Response

About Lend Lease:

We are a diversified international
property group with market leading
positions in our chosen geographies
and sectors.

Headquartered in Australia, we operate
in three key regions around the world
and three core sectors: retail and
residential property, property investment
management and construction.

We apply our world class development,
project management, construction and
investment management skills using
imagination, creativity and collaboration
to create smart solutions that add value.

We are passionate about the
relationship between people and places
and our role in building a legacy for
future generations. We do this safely,
ethically and sustainably.

We are in business to deliver the best
possible outcomes for all our
stakeholders, from investors,
employees and subcontractors to our
business partners, suppliers and the
communities in which we operate.

For detailed information on Lend Lease
Pty Ltd structure and operations, refer
to the 2006 Annual Report to
Shareholders and to our website:

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Lend Lease Corporation:
Carbon Disclosure Project 5 Response

Section A
                                             such as IPCC WG 3, Vattenfall, and       regulation.
                                             the International Energy Agency,
                                             point to the significant contribution
1 Climate Change                             that energy efficiency in the built
                                                                                      Lend Lease engages in Enterprise
                                                                                      Wide Risk Management.
                                             environment stands to make to this
Risks, Opportunities                         effort, much of it at negative or
                                                                                      Sustainability issues, including
                                             minimal cost when compared with
and Strategy                                 other abatement opportunities in         climate change, are incorporated as
                                             industry, agriculture, transport or      risk elements within this analytical
A Risks                                      energy supply. IPCC WG 3 highlights      framework. Risk management is one
What commercial risks does climate           the following technologies and           driver for the development of Lend
change present to your company               practices that need to be applied
                                                                                      Lease’s comprehensive
including, but not limited to, those         which are of relevance to Lend Lease
                                             businesses: efficient lighting and       sustainability program, ensuring the
listed below?                                                                         proactive management of
                                             daylighting, more efficient electrical
                                             appliances and heating and cooling       community concerns and
Lend Lease has a strong awareness of
the risks and opportunities presented by     solutions, improved building             government regulation and, in doing
climate change impacts, regulation, and      insulation, passive and active solar     so, retaining its social mandate to
shifting market preferences and is           design for heating and cooling, and      operate.
implementing proactive initiatives.          alternative energy generation.
                                             Ensuring that the best pathway is
                                                                                      The company is actively engaged in
Preliminary impact analysis has been         taken to pursue these opportunities is
                                             important, to ensure optimal social      leading sustainability initiatives and
undertaken at both business and                                                       indicators across its businesses and
corporation levels while programs to         and environmental outcomes.
                                                                                      in all regional markets. In addition to
interrogate risk and enhance data
gathering and reporting are in hand. As      Lend Lease’s leadership on               risks identified in CDP4, such
described in the Carbon Disclosure           advocating sector responsibility         initiatives include the development
Project 4 submission (Appendix A), in        impact is evident from its many public   of both voluntary and mandatory
2006 Lend Lease has continued to track       statements.
                                                                                      building environmental rating tools.
climate change research at international                                              In markets where existing voluntary
and regional levels, in particular the      I. Regulatory risks associated
                                              with current and/or expected            schemes such as building rating
recent summaries of findings of the
                                              government policy on climate            tools exist Lend Lease has engaged
Working Groups of the
Intergovernmental Panel on Climate            change e.g. emissions limits or         with the UK Green Building Council
Change on climate change science,             energy efficiency standards.            (founding Director), US Green
impacts, and mitigation.                                                              Building Council (founding New York
                                             Lend Lease is conversant with each       Board Member), Australian Green
Further regional work undertaken by          of the main regulatory imposts in its    Building Council (founding Director),
CSIRO under the Australian Adaptation        key markets. The Citigroup 2006          Emirates Green Building Council
Programme, and UKCIP and the Hadley          analysis of 100 ASX companies            and the Mexico Green Building
Centre in the UK, have been important        ranked Lend Lease as better              Council.
in informing impacts on regional
                                             prepared to mitigate and manage
                                             impacts of climate change than any of    In general, major risks have been
Lend Lease recognises the contribution       its home market competitors1.            identified as increasing electricity
to greenhouse gas emissions that                                                      prices associated with pass-through
buildings make, and the need to future       Lend Lease advocates consistent and      costs of emissions trading markets,
proof the built environment for the risks    certain regulatory change raising the    carbon taxes, mandatory renewable
presented by climate change.                 issue of the detrimental impact on       energy targets, and changes to
                                             compliance costs of fragmentation of     building standards.
The global property and construction
industry must contribute to the effort to
reduce greenhouse gas emissions to                                                    Specific legislation recognised as
assist in meeting goals of the United         “Climate Change and the ASX 100”        influential in core operating markets
Nations Framework Convention on              by Bruce Rolph (Citigroup Global
                                             Markets - Equity Research) November
                                                                                      include: the EU Emissions Trading
Climate Change. Analysis by groups           2006
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 Lend Lease Corporation:
 Carbon Disclosure Project 5 Response

 Scheme, the Australian Government               The IPCC Working Group summary                 operational disruption to the region
 Energy Efficiency Opportunities                 reports on climate change science,             of impact. Such impacts are factored
 regulation, and plans for emissions             impacts and adaptation have revised            into the risk assessment process of
                                                 and confirmed many of the core                 Lend Lease businesses.
 trading in Australia and the United
                                                 findings of previous analysis. In
 States at both State and Federal levels.        addition, regional analyses of the             Other factors of climate variability
 Lend Lease businesses that have                 implications of climate change have            and change have the power to
 recognised the potential impacts of             been documented in Australia,                  impact Lend Lease’s business.
 market-based mechanisms include its             Europe, and the United States.                 Water availability may influence the
 Investment Management and Catalyst              Lend Lease has a communication                 sales timing and prices of lifestyle
 Lend Lease businesses. These                    program to raise awareness among               property developments. Water
                                                 employees of the main implications of          availability may also affect operation
 businesses, through ownership of
                                                 this modelling, ensuring that design           technologies which are water
 assets either directly involved in              and ownership considerations are               intensive, such as mechanical
 emissions trading markets or impacted           informed by this information.                  heating and cooling systems. Water
 as sizeable energy users, are subject to                                                       pricing that reflects scarcity, direct
 energy price rises. Assets and portfolios       As described in Lend Lease's CDP4              regulatory limits, or community
 continue to be subject to review of             response (Appendix A), weather-                concerns combined with peak
 energy use and regulatory impacts.              related insurance risk continues to be         energy loads and shorter winter
                                                 monitored, and Lend Lease has                  periods may impact adequate indoor
                                                 leveraged relationships with major             environmental services which may
 While some cost impacts caused by
                                                 insurers including Insurance Australia         have ramifications if contractual
 regulatory approaches may to a large            Group to better appreciate this risk           obligations are breached.
 extent be unavoidable, Lend Lease               and to better understand modelling             Investment, acquisition and disposal
 businesses have undertaken proactive            and research impacts on both                   policy may also be influenced by
 actions to identify and mitigate or avoid       geographies and the built                      severe climate change scenarios.
 such risks These activities include             environment.
 policy dialogue and regulatory                                                               III. Other risks including shifts
                                                 Increased weather variability and               in consumer attitude and demand
 development, internal education and
                                                 extremes have been identified as
 training, investment and services               potentially presenting issues for some         The recent growth in consumer
 associated with design and operations,          Lend Lease assets. Through                     awareness with regard to impacts of
 proactive participation in building             awareness-raising of the possible              climate change and carbon
 regulation reviews, community and               implications, and by working with              abatement solutions have meant
 sector awareness campaigns.                     insurers, regulators and building              that increasingly informed clients
                                                 standards boards, Lend Lease                   and property investors specify
 One recent example is that Lend Lease           interrogates insurance and design              performance levels for Lend Lease
                                                 solutions to mitigate for potential            as a service provider including the
 has announced its cooperation with a
                                                 impacts.                                       standards of products delivered.
 utility retailer ‘Origin Energy’ in Australia
 to develop a mechanism in its voluntary         In 2007 Lend Lease integrated                  Lend Lease continues to
 emissions trading scheme which would            sustainability filters into its investment     demonstrate its capacity to perform
 recognise credits from energy efficiency        decision Pipeline Review Process.              to such standards.
 in buildings, generating an incentive           Climate risk impacts are interrogated
 structure to enable investment in               and addressed in the evaluation of             Employee surveys indicate that high
                                                 investment opportunities.                      performing employees seek to work
 improved energy performance
                                                 In addition to interrogating and               for organisational leaders who are
 (Appendix B).                                   mitigating extreme weather risk, Lend          committed to non-financial
                                                 Lease also addresses impacts of                performance including action to
II. Physical risks to your business              natural disasters such as skilled              address the threat of climate
   operations from scenarios identified          labour shortages and increased costs           change.
   by the Intergovernmental Panel on             of materials and workforce. If asset
   Climate Change or other expert                damage and business disruption                 Inversely, any business that fails to
   bodies, such as sea level rise,               occurs due to weather variability,             sustain this position risks reduced
   extreme weather events and                    periodic labour scarcity is considered         employee attraction and retention.
   resource shortages                            to add to project costs and further            Attraction and retention of high

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Lend Lease Corporation:
Carbon Disclosure Project 5 Response

quality personnel is a benefit of Lend        recognised for its leading expertise in    recognising building energy
Lease’s aspiration to be a sustainable        sustainable design, project delivery       efficiency as a credit in all carbon
organisation.                                 and asset management.                      trading schemes (voluntary and
                                              Lend Lease believes that changing          mandatory). Reports in 2007 by
Lend Lease is also closely monitoring         stakeholder demands and                    McKinsey and Vattenfall and the
its operations for emerging impacts with      subsequent regulations will create         IPCC have since validated this
regards to:                                   opportunities for organisations that       position, identifying the built
                                              provide solutions. Given the extent of     environment as representing the
• Its presence in specific at-risk            the effort required to attain the goals    single biggest and cost effective
geographies;                                  of the United Nations Framework            carbon abatement opportunity of
                                              Convention on Climate Change               any sector. By IPCC estimates,
• Accelerated depreciation or                 (UNFCCC) across the global                 worldwide low-cost carbon
obsolescence of inefficient buildings;        economy, the sectors and regions           abatement opportunities in buildings
                                              within which Lend Lease is active,         approach all opportunities in
• Modification of building standards and      and the skills within the company,         industry, power supply, agriculture
design to mitigate damage from severe         Lend Lease can and is meeting the          and transport combined. Lend
weather events;                               new market demands.                        Lease is confident that regulators
                                                                                         and administrators of carbon trading
• Changing consumer attitudes due to          Green Building:                            schemes worldwide will soon
rising fuel and electricity costs impacting                                              recognise the merit of this solution.
demand for low density residential            In particular, Lend Lease believes
property or community development             that its recognised skills and             As discussed in Section A(1)(A)(i),
without integrated education,                 capability in building design,             Lend Lease is working with the
employment, recreational and retail           procurement, technology, and project       Australian utility retailer ‘Origin
infrastructure;                               and asset management provides it           Energy’ to develop a mechanism for
                                              with a distinct competitive advantage.     a voluntary emissions trading
• Rising fuels costs and impacts on           Efforts to address energy demand-          scheme to allow energy efficiency to
transport or industrial assets which rely     side greenhouse gas emission               create carbon credits (Appendix B).
on vehicle distribution;                      abatement will continue in retail,
                                              commercial, industrial and residential     Adoption of building efficiency by
• Consumer spending patterns in retail        sectors.                                   carbon trading schemes will offer an
assets; and                                   Already, the market is experiencing a      incentive for building owners to
• Implications of milder winters and          growth in high-value clients and           retrofit existing building stock to
protracted summers for operational            investors demanding strong                 increase its energy efficiency, thus
overheads including energy costs, water       environmental performance.                 creating demand for more efficient
supply and long-term maintenance              Landmark projects demonstrate Lend         solutions and technologies.
contracts.                                    Lease’s leadership in this sector. In
                                              mid 2007 the international banking         Distributed Power Generation:
B    Opportunities                            group ANZ appointed Bovis Lend
                                              Lease to construct its new head office     Lend Lease has developed its
What commercial opportunities does            in Melbourne. At more than 80,000m2        credentials in the delivery of large
climate change present to your                it is expected to be the world’s largest   grid-connected solar communities.
company for both existing and new             green building. The office is              Subsequent to the delivery of the
products and services?                        committed to achieving a green             world’s largest solar powered
                                              building rating of ‘World Leader’ and      community in 2000 for the Sydney
Lend Lease is well positioned to take         plans to incorporate efficient design,     Olympic Village – now home to
advantage of the new market                   solar panels and wind generation to        around 5,000 residents and
opportunities created by the need to          cut reliance on fossil fuel-generated      integrating 640 one kilowatt
reduce greenhouse gas emissions.              power by around 70%.                       photovoltaic cells – Lend Lease is
Lend Lease has demonstrated its first                                                    delivering the world’s largest solar-
mover advantage in providing the              Creating Carbon Credits through            powered community with 5,388 new
assets and services that meet and             Building Efficiency:                       homes and 2,506
surpass the demands of regulators and                                                    renovated/restored existing homes
clients. Lend Lease is recognised             As described in the CDP4 (Appendix         in Hawaii. Thirty percent of the
globally as delivering quality buildings      A) response, Lend Lease continues to       communities’ electrical needs will be
and management services and is                advocate the importance of

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Lend Lease Corporation:
Carbon Disclosure Project 5 Response

provided through photovoltaic panels.         Lease markets will exceed US $30          Lend Lease hosted a meeting of
                                              trillion from 2005-20302.                 leading property industry thought
Additional opportunities have also been                                                 leaders to discuss ways the industry
identified to extend this capability to       C    Strategy                             could proactively learn of the risks of
include other renewable and alternative                                                 climate change and mitigation
on-site energy solutions on large-scale       Please detail the objectives and          strategies.
community developments worldwide.             targets of the strategies you have
                                              undertaken or are planning to take        Furthermore, at the corporation
Lend Lease has been selected as the           to manage these risks and                 level, Lend Lease has completed a
preferred developer of the London 2012        opportunities. Please indicate            major strategic review of
Olympic Village which is committed to         adaptation to physical risks?             opportunities, including those
achieving carbon zero buildings.                                                        presented by climate change. A new
Innovative carbon abatement solutions         In addition to the delivery of Business   business unit named Lend Lease
are expected to result from this high         Unit Sustainability Plans (detailed in    Ventures was launched in June
profile project.                              Appendix A - CDP4 Response), each         2007 to focus, to some degree, on
                                              business unit within the Lend Lease       the opportunities afforded
Delivery of Infrastructure:                   group was responsible for the delivery    environmental business
                                              of complete Carbon Disclosure             opportunities.
Bovis Lend Lease’s experience in              Project 5 responses to the
delivering complex infrastructure             corporation via the Global                Building on experience in different
projects positions it to secure work          Sustainability Group. This information    areas of the business, Lend Lease
resulting from investment in solutions to     has been compiled and analysed by         Ventures aims to invest in, and
address impacts of climate change,            both the corporate group and external     expand, technology and service
such as infrastructure. In June 2007,         specialist consultants, with a view to    offerings related to sustainability.
Lend Lease was awarded a contract to          identifying risks, management issues,     The construction business, Bovis
deliver an 18km pipeline with capacity        and opportunities. The sustainability     Lend Lease, has significant
to deliver 30% of Sydney’s water needs.       planning undertaken by each               experience in the design and
                                              business unit includes pathways for       implementation of building
Another infrastructure offering where         implementation of actions.                integrated renewable energy
demand has potential to increase in                                                     systems. The Global Alliance
response to emissions abatement is the        Lend Lease is also working towards        partnership between Bovis Lend
delivery of transport projects. Lend          the development of a Real Estate and      Lease and BP has delivered the
Lease infrastructure experience extends       Construction Sector Supplement            construction, modification and
to significant transport projects including   under the United Nations Global           maintenance of 10,000 BP
road, heavy and light rail and shipping       Reporting Initiative (GRI) framework      environmentally-focussed retail
projects. For example, Bovis Lend             for public reporting of non-financial     sites, and has incorporated
Lease is currently providing strategic        performance. Businesses across the        renewable energy systems including
project management services for the           group are currently collecting            photovoltaic cells, natural gas micro
Dubai Metro project in which phases           pertinent data, while at the              turbines, wind power, and water
one and two involve the construction of       corporation level an integrated global    recycling and purification systems.
70 kilometres of track and 41 stations        knowledge management system is
valued at US $4 billion with a target of      under development.                        Moving beyond the recent strategic
1.85 million passengers a day. Phase          Plans are in place to ensure more         review of market opportunities, Lend
three includes a further 47 kilometres of     effective data capture and reporting of   Lease plans to expand and
track between Dubai International             performance. Data metrics to be           operationalise its strong record of
Airport and the new airport at Jebel Ali      captured within this process include      creating markets for sustainable
for completion in 2011.                       energy consumption and associated         products, and will continue to do so
                                              greenhouse gas emissions.                 to maximise the advantage that we
It is now estimated that due to a             Lend Lease also invests in employee       have across the organisation.
combination of aging or outdated              and supply chain training and
infrastructure and increasing demand          awareness-raising activities. In 2006     Project Initiatives:
due to climate change that global
spending on water, transport and                                                        In addition to the Lend Lease group
shipping infrastructure projects in Lend      2
                                                “Lights! Water! Motion!” by V Doshi,    strategy project based and asset
                                              G Schulman, and D Gabaldon                specific business initiatives are in
                                              (strategy+business, Spring 2007)          place to drive both energy efficiency

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Lend Lease Corporation:
Carbon Disclosure Project 5 Response

and investment in onsite energy               to Council, highlighting areas where        demolition work, supply of labour,
generation.                                   water savings can be achieved, and          materials and equipment and
                                              what actions and timeframe will be          construction of temporary structures
In advance of implementation of               required;                                   including the Family Center at Pier
regulation and greenhouse gas                                                             94 to house the Red Cross, NYPD,
emissions trading markets, Lend Lease         • Installation of additional water          Medical Examiner and others, a
makes investments to improve both             meters to cooling towers and tenants,       Command Center at Pier 92, and
absolute and relative resource use            to help identify areas of excessive         ferry slips at Pier 11, to the City of
across its range of assets.                   use; and                                    New York in the World Trade Center
Lend Lease recently undertook a major         • Education of tenants and
refurbishment of a large retail centre in     contractors in not wasting a drop,          After the 2005 Boxing Day Tsunami
Brisbane, Australia, to improve its           particularly cleaners, to ensure they       Lend Lease partnered with United
environmental performance. The                report all leaking toilets and taps to      Nations to provide pro-bono project
following is provided to demonstrate          Centre Management.                          management services to the clean-
current project initiatives.                                                              up and reconstruction efforts in Sri
                                              Renewable Energy Projects:                  Lanka and has continued to provide
Asset Energy Efficiency Case Study:                                                       these services for more than two
Brisbane Transit Centre                       Lend Lease is investing in and              years.
                                              constructing world leading renewable
Brisbane Transit Centre is 50% owned          energy projects. In March 2007              The skills developed over many
by Lend Lease managed fund APPFC              Global Renewables Ltd, subsidiary of        years assisting with recovery from
and 50% by The GPT Group. From                GRD Limited, in partnership with            some of the world’s worst disasters
2005 to 2006 a 32% savings in energy          Bovis Lend Lease Limited, signed            have permitted the organisation to
use (520,538KW) was achieved and a            one of the largest Waste Private            make significant contributions to
24% saving in water use (25,665KL)            Finance Initiative (PFI) contracts          clean-up and reconstruction due to
from initiatives including:                   awarded in the United Kingdom.              extreme weather events including
                                                                                          flooding, bushfires and cyclones
• Refurbishment of the centre’s cooling       The 25 year contract, awarded by            resulting from climate change.
towers and installation of time clocks;       Lancashire County Council and
                                              Blackpool Council, is worth more than       In 2003 Bovis Lend Lease was
• Adjustment of set points on floors,         $5 billion over the full term. Under the    appointed project manager for the
raising floor temperatures within lease       contract Global Renewables and              clean-up of 530 homes destroyed by
guidelines;                                   Bovis Lend Lease, with backing from         Canberra bushfires and in 2006
                                              major international banks, will invest      project manager for the clean-up of
• Adjustment to starting times for air        more than $800 million in the design,       areas affected by cyclone Larry in
conditioning plant, to restrict the running   construction and operation of two           north-east Queensland, Australia.
hours of the cooling towers;                  cutting edge UR-3R waste
                                              management and renewable energy             D Reduction Targets
• A full plumbing audit of the complex        facilities. The new facilities at Leyland   What are your emissions
including installation of flow restrictors    and Thornton will handle some               reduction targets and time frames
to taps and shower heads, and                 600,000 tonnes of household waste           to achieve them? What renewable
adjustment of flow rates to all urinals in    per annum and will reduce waste             energy and energy efficiency
the complex;                                  being sent to landfill, avoid the need      activities are you undertaking to
                                              for incineration, increase recycling        manage your emissions? (This
• Transit Centre and Hotel Management         rates and reduce greenhouse gas             question not required if
participation in the Brisbane Water           emissions from household waste by           answering Section B)
(Waterwise Business Efficiency                over 4,000,000 tonnes of greenhouse
Program) to assist management to              gas emissions (tCO2e).                      Refer to answers in Section B.
understand what can be done to
improve water management practices,           Disaster Recovery: Lend Lease is
and implement water savings                   experienced in large scale disaster
measures;                                     recovery projects.
                                              In September 2001 Bovis Lend Lease
• Submission of a Water Efficiency            provided search and rescue
Management Plan for the Transit Centre        assistance, removal of debris,

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 Carbon Disclosure Project 5 Response

                                               energy use in buildings, which specify      As the CDP5 reporting cycle does
 2 Greenhouse                                  that the trustee for a commercial           not coincide with Lend Lease’s
                                               property trust is responsible for           planned 2007 audit and reporting
 Gas Emissions                                 reporting energy used in common             timetable, the information contained
                                               areas and unmetered tenancies in            in this report has not been externally
 Accounting                                    buildings in which that trust invests or    verified or audited. However, Lend
                                               co-invests. However this definition         Lease verifies data in its Annual
 A Methodology                                 poses significant issues for the sector     Report to Shareholders.
 I. The accounting year used to                as responsibility for energy used by
 report GHG emissions.                         tenants, where an investor has             IV. An explanation for any
                                               minimal or no direct influence over          significant variations in
 Lend Lease has advanced its group-            the practices of building occupants          emissions from year to year, e.g.
 wide Sustainability Measurement and           and energy efficiency, therefore             due to major acquisitions,
 Reporting Program, developed in               becomes an externality for building          divestments, introduction of new
 accordance with United Nations Global         tenants.                                     technologies, etc.
 Reporting Initiative guidelines. This
 program allows detailed reporting             For its Australian businesses, Scope        Lend Lease’s CDP4 response
 against Key Performance Indicators,           1 and 3 emissions have been                 (Appendix B) included analysis of
 including greenhouse gas emissions,           calculated from on-site natural gas         electricity and gas emissions from
 across all business units and                 use, using the Australian Greenhouse        its corporate headquarters in
 geographical locations. Following a           Office Factors and Methods                  Sydney.
 successful pilot program in Australia         Workbook, December 2006.
 from January 2005, Lend Lease began                                                       For this CDP5 response, Lend
 its global roll-out of energy reporting in    This workbook has allowed detailed,         Lease significantly expanded the
 January 2007 in 139 business locations        state-by-state analysis of emissions        scope of its report to include
 in 21 countries (including 10 Annex B         from natural gas, including on-site         greenhouse gas emissions from 139
 countries). Consequently in this              combustion, extraction, and                 sites, representing 88.5% coverage
 questionnaire, Lend Lease has reported        production.                                 of operations. The data reported
 on electricity and gas emissions from                                                     includes greenhouse gas emissions
 the first quarter (January-March) of          Electricity Use: With the exception of      from electricity and gas across a
 2007. Future reports will include year-       Australia, Scope 2 emissions from           range of business ventures and
 long data from a range of emissions           purchased electricity have been             activities, leading to a significant rise
 sources.                                      calculated using GHG Protocol               in reported emissions. It is expected
                                               Indirect CO2 emissions from the             that reported emissions will continue
II. The methodology by which                   consumption of purchased electricity,       to rise in coming years as the roll-
   emissions are calculated.                   heat, and/or steam, version 1.2,            out of Lend Lease’s Global
                                               January 2007                                Sustainability Performance reporting
 All data has been self-reported by                                                        program continues.
 relevant business managers. As its            For its Australian businesses, Scope
 automated Global Management System            2 and 3 emissions from purchased            During January-March 2007, Lend
 is rolled out all reported data will be       electricity have been calculated using      Lease consumed 210,312kWh of
 subject to audit.                             the Australian Greenhouse Office            electricity in its Head Office tenancy,
                                               Factors and Methods Workbook,               resulting in 224 tCO2e, compared to
 On-site Natural Gas Consumption: With         December 2006.                              774,072kWh and 805 tCO2e
 the exception of Australia, Scope 1                                                       between October 2004 and
 greenhouse gas emissions from on-site         This workbook has allowed detailed,         September 2005.
 natural gas use have been calculated          state-by-state analysis of emissions
 using the GHG Protocol revised tool for       from purchased electricity, including       The reporting period and accounting
 direct emissions from stationary              indirect emissions from suppliers, as       methodology has changed since
 combustion, version 3.0, October 2006.        well as resource extraction,                Lend Lease’s previous CDP
                                               production and transmissions loss.          response (Appendix B). As such a
 Lend Lease has adopted the application                                                    comparison cannot be drawn
 of rules specified by the Australian         III. Whether the information                 between these results. However,
 Federal Government’s Energy                     provided has been externally              rudimentary analysis indicates an
 Efficiency Opportunities (EEO) Act 2006         verified or audited.                      increase in electricity consumption
 and associated guidelines with regard to                                                  by 8.7% and emissions by 9.3% per

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 Carbon Disclosure Project 5                                                                           Lend Lease Corporation
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Lend Lease Corporation:
Carbon Disclosure Project 5 Response

quarter.                                           TABLE 1
Lend Lease attributes this increase, in            Business Unit                              (Q1 ’07)             %
part, to increased staff numbers at its
Head Office, which has increased from              Actus Lend Lease                                  1,513.35                5.95%
800 in 2005 to 976 in 2006, with                   APPFC                                             2,857.58               11.24%
intermittent fluctuations due to                   Bovis Lend Lease                                  1,910.77                7.52%
relocation of project teams during short-          Delfin Lend Lease                                   314.52                1.24%
term projects. This has led to increased           Lend Lease Communities                        Not available         Not available
electricity consumption and heat loads
                                                   Lend Lease Development                               22.63                0.09%
from additional computers.
                                                   Management Services                                 616.77                2.43%
The normalised energy efficiency of the            Lend Lease Retail                                17,008.66               66.90%
Sydney headquarters remains                        Multisite                                     Not available         Not available
consistent with previous years and the             Retirement By Design                              1,177.96                4.63%
building maintains its 5 star Green Star
(Green Building Council of Australia)              Total                                            24,294.76                  100%
and operational energy Australian                                                                 responsibility for energy use in
Building Greenhouse Rating.                       The Lend Lease Multisite business is            buildings are required throughout
                                                  also omitted as all staff are distributed       the international property industry to
Lend Lease occupies but does not own              in small teams of less than 15 people           better allocate energy use to the
its corporate headquarters and thus has           co-located with other businesses or in          parties directly responsible for
not included base building emissions              client offices, and do not occupy their         consumption.
data in this report.                              own fixed office tenancies.
                                                                                                  As Lend Lease businesses improve
Report Coverage – By Business Unit:               Emissions Distribution – By                     data collection and establish
                                                  Building Type:                                  performance baselines, its capacity
(Refer to Table 1 above.)                                                                         to compare performance across
                                                  (Refer to Chart 1 below.) The majority          regions and over time will improve.
Lend Lease Communities USA is                     of emissions reported above are                 Ultimately, by understanding
excluded as this business unit has only           generated by energy use in property             seasonal and other variations, Lend
recently occupied its office in Denver            assets where Lend Lease is a partial            Lease can better achieve
and data is not yet available. This               investor, trustee, or asset manager             meaningful and effective
tenancy has however obtained a                    but actual energy consumption is                greenhouse gas emission
certified LEED green building rating              attributable to a third party. Improved         reductions.
from the US Green Building Council.               boundaries and allocation of

                                      CHART 1: Emissions by Building Type (Q1 '07)
                                    Data Centre

                  Other Offices
                                                                                                     Head Office
               Head Office                                                                           Other Offices
                 0.74%                                                                               Data Centre
Commercial Investments                                                   Shopping Centres            Shopping Centres
      11.24%                                                                 66.52%
                                                                                                     Community Centres
                                                                                                     Maintenance Facilities
  Retirement Communities
                                                                                                     Retirement Communities
                                                                                                     Commercial Investments

           Maintenance Facilities
                                        Community Centres

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                                                                                                                ABN 76 104 485 289
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Lend Lease Corporation:
Carbon Disclosure Project 5 Response

B        Scope 1 and 2 of GHG Protocol                                     TABLE 2
                                                                                                                                                     Globally                    Annex B
(Refer to Table 2, right.)
                                                                           Scope 1 tCO2e emitted                                                     1,127                       1,127
Please enter the accounting year                                           Scope 2 tCO2e emitted                                                     24,295                      24,002
used to report GHG emissions                                               MWh of purchased electricity                                              31,437.3                    30,906.8
details below:
                                                                      Please state the MWh of electricity                                            Lend Lease recognises several
January 1 2007- 31 March 2007                                         purchased and consumed by your                                                 important and varied sources of
                                                                      company globally:                                                              greenhouse gas emissions brought
Total Global Emissions:                                                                                                                              about by its business activities. This
                                                                      31,437 MWh                                                                     year, Lend Lease has reported
25,422 tCO2e                                                                                                                                         electricity and on-site natural gas
                                                                      Please state the MWh of electricity                                            use across 139 locations in 21
Total Emissions Annex B countries:                                    purchased and consumed by your                                                 countries, including 10 Annex B
                                                                      company in Annex B countries:                                                  countries.
25,129 tCO2e
                                                                      30,906 MWh                                                                     Lend Lease also recognises other
Scope 1 activity emissions globally:                                                                                                                 important emissions sources,
                                                                      Please state the percentage of                                                 including refrigerants from air-
1,127 tCO2e                                                           purchased and consumed MWh of                                                  conditioning units and chillers.
                                                                      electricity from renewables                                                    Currently data is not available for
Scope 1 activity emissions Annex B:                                   globally:                                                                      these emissions sources. Lend
                                                                                                                                                     Lease will interrogate its significant
1,127 tCO2e                                                           3.33%                                                                          greenhouse gas emissions for future
                                                                                                                                                     performance reporting.
Scope 2 activity emissions globally:                                  Please state the percentage of
                                                                      purchased and consumed MWh of
24,295 tCO2e                                                          electricity from renewables in
                                                                      Annex B countries:
Scope 2 activity emissions Annex B:
                                                                      3.4 %
24,002 tCO2e

                                                                CHART 2: tCO2e - On-site Gas Use (Q1 '07)



    Tonnes CO2e









                                                                                                                                    Czech Republic
                                                                                                (South Australia)




                                                                                                                    United States

                      United Kingdom

                                                                 (New South

                                                                                                                                                               * Non-Annex ‘B’ country

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Lend Lease Corporation:
Carbon Disclosure Project 5 Response

Scope 1 - Direct
                                                                                                                                     Lend Lease has experienced
                                                                                                                                     difficulties in obtaining consistent and
                                                                                                                                                                                                                                          Scope 2 - In-Direct
Emissions                                                                                                                            complete data from some tenancies,                                                                   Emissions
                                                                                                                                     in some countries. This appears to be
                                                                                                                                     a result of differing local culture and                                                              Electricity Use
On-site Natural Gas Consumption
                                                                                                                                     tenancy regulation and practices, as
                                                                                                                                     well as tenancy agreements                                                                           (Refer to Chart 3, below.)
(Refer to Chart 2, above.)
                                                                                                                                     preventing access to electricity and
                                                                                                                                     gas consumption data. Lend Lease is                                                                      Lend Lease has reported
A total gas consumption of                                                                                                                                                                                                                electricity data from 138 business
21,916,499.58 MJ was reported,                                                                                                       committed to improving its reporting
                                                                                                                                     and is working closely with these                                                                    locations, across 21 countries;
resulting in 1,139.29 tCO2e. This data                                                                                                                                                                                                    including 10 Annex B countries. This
covers 39 Lend Lease business                                                                                                        locations to achieve comprehensive
                                                                                                                                     data capture and disclosure.                                                                         represents 87.9% coverage from
locations, across 7 Annex B countries.                                                                                                                                                                                                    expected respondents. A total of
This number is significantly lower than                                                                                                                                                                                                   31,242.4 MWh of purchased
expected, representing 24.8% coverage                                                                                                Significant omissions in the above
                                                                                                                                     data include ‘King of Prussia’ retail                                                                electricity was reported, resulting in
of its business activities.                                                                                                                                                                                                               24,190.59 tCO2e.
                                                                                                                                     mall in Pennsylvania in which Lend
Significant obstacles exist to obtaining                                                                                             Lease holds a financial interest, and
                                                                                                                                     Catalyst Lend Lease hospitals in the                                                                 The remaining sites include either:
natural gas usage in tenancies due to a
consistent lack of sub-metering in all                                                                                               UK. Corresponding data was not
                                                                                                                                     available at the time of the receipt of                                                              • Properties in which Lend Lease is
locations. Data is only available for an                                                                                                                                                                                                  a trustee on behalf of a full or part
entire building as opposed to the                                                                                                    the CDP questionnaire.
                                                                                                                                                                                                                                          owner but does not hold operational
tenancy occupied by Lend Lease. An                                                                                                                                                                                                        control;
investigation is underway for alternative                                                                                            The high volume of on-site gas use in
methods of determining gas use for                                                                                                   the UK is primarily attributable to gas
                                                                                                                                     used in heating 5 shopping centres                                                                   • Properties which Lend Lease
tenancies, with building operators to                                                                                                                                                                                                     operates or maintains on behalf of
determine what proportion of tenancies                                                                                               with a combined total 499.78 tCO2e,
                                                                                                                                     or more than 99% of total onsite gas                                                                 clients or partners, but does not hold
reporting zero gas use are omitting                                                                                                                                                                                                       management or financial control;
unmetered or unbilled gas consumption.                                                                                               use for reported operations in the UK.

                                                                                       CHART 3: Tonnes CO2e - Purchased Electricity (Q1 '07)





 Tonnes CO2e


























                                                                                                 South Australia


                                                                                                                                                                                           Czech Republic





                                                                                 United States









                                                                United Kingdom

                      New South Wales




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                                                                                                                                                                                                                                                                         ABN 76 104 485 289
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Lend Lease Corporation:
Carbon Disclosure Project 5 Response

• Temporary buildings occupied by Lend          TABLE 3
Lease during project-based operations;                                     tCO2e –         tCO2e –           Total
or                                              State                      Electricity     Natural Gas       (Q1 '07)
                                                New South Wales            1,594.25        2.63              1596.88
• Properties primarily operated or
occupied by Lend Lease customers or             Queensland                 969.22          1.09              970.31
clients.                                        South Australia            14.18           0.20              14.38
                                                Victoria                   246.11          51.23             297.34
For the purposes of sustainability              Total                      2,823.76        55.15             2878.91
performance reporting, Lend Lease are
currently developing approaches to             Elsewhere, in such locations as the        of assets under operational control
defining boundaries and definitions for        operation of these assets contributes      with regard to buildings is defined by
direct and indirect energy use by              to Lend Lease’s profitability but are      bodies such as DEFRA (UK) and
buildings in which Lend Lease has a            not directly controlled – financially or   the EEO Act (Australia) as including
diverse range of interests. Where Lend         operationally – by Lend Lease, it will     energy use by building occupants.
Lease is deemed to have financial or           be deemed indirect energy use
operational control of an asset, it will be    Lend Lease continues to obtain             Your supply chain:
considered direct energy use.                  information from third parties
Elsewhere, in such locations as the            regarding energy used by assets,           2,878 tCO2e
operation of these assets contributes to       however the data is not yet sufficient
                                                                                          External distribution/logisitics
Lend Lease’s profitability but are not         to provide a full analysis of indirect
directly controlled – financially or           energy use, or of Lend Lease indirect      Lend Lease businesses do not have
operationally – by Lend Lease, it will be      energy use through assets.                 distribution or logistics operations.
deemed indirect energy use.                    Significant exclusions in the above
                                               data include electricity use for retail    Employee business travel:
Lend Lease continues to obtain                 assets in Singapore Corresponding
information from third parties regarding       data was not available at the time of      It is Lend Lease's position that
energy used by assets, however the             the receipt of the CDP questionnaire.      airlines have responsibility for the
data is not yet sufficient to provide a full                                              efficiency of these services and
analysis of indirect energy use, or of         The high volume of electricity use in      associated environmental impacts,
Lend Lease indirect energy use through         New South Wales, Australia is              and as such Lend Lease has
assets.                                        attributable to the fact the state         contacted the major airlines which
                                               contains both the highest                  its businesses use seeking to
Significant exclusions in the above data       concentration of Lend Lease staff and      establish a frequent flyer offset
include electricity use for retail assets in   property investments including two of      program in which Lend Lease
Singapore. Corresponding data was not          the largest shopping centres in the        employees would sacrifice frequent
available at the time of the receipt of the    group’s asset portfolio.                   flyer points to offset air travel
CDP questionnaire.                                                                        emissions.
                                               C Scope 3 of GHG Protocol
The high volume of electricity use in          Please enter the accounting year           I. Use/Disposal of company’s
New South Wales, Australia, is                 used to report GHG emissions               products and services
attributable to the fact the state contains    details below.
both the highest concentration of Lend                                                    As noted above in Section A(2)(A)(ii)
                                               January 1 2007- 31 March 2007              Lend Lease has adopted the EEO
Lease staff and property investments
including two of the largest shopping                                                     definition regarding reporting energy
                                               If possible, please provide                use in buildings which specify that
centres in the group’s asset portfolio.        estimates in metric tonnes CO2e            the trustee for a commercial
For the purposes of sustainability             for the following categories of            property trust is responsible for
performance reporting, Lend Lease are          emissions:                                 reporting energy used in common
currently developing approaches to                                                        areas and unmetered tenancies in
defining boundaries and definitions for        Use/disposal of company’s                  buildings invested in by that trust.
direct and indirect energy use by              products and services:                     The assignment of responsibility for
buildings in which Lend Lease has a                                                       measuring, reporting and managing
diverse range of interests Where Lend          The boundaries of data in this             energy efficiency in buildings
Lease is deemed to have financial or           response include a combination of          represents an ongoing challenge for
operational control of an asset, it will be    use and disposal of company's              the sector due to the shared
considered direct energy use                   products and services. The definition      influence and responsibility of
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Lend Lease Corporation:
Carbon Disclosure Project 5 Response

designers, owners, managers and              considerations regarding the
occupants.                                   contribution of a particular building
                                             material to the greenhouse gas
II.   Your supply chain                      emissions of a building over the
                                             course of its lifetime. Embedded
(Refer to Table 3, above.)                   energy in the manufacture or shipping
                                             of a material is considered secondary
Lend Lease in Australia has calculated
                                             to greenhouse gas emissions from
supply chain emissions from purchased
                                             buildings in operation.
electricity and natural gas, including
emissions from resource extraction,
                                             IV. Employee business travel
production, transportation, and
transmission loss.
                                             Refer to comments above in section
Lend Lease has also initiated
                                             A(2)(C)(ii) ‘Supply Chain’ for
correspondence with air travel suppliers
                                             comments regarding air travel.
to (a) obtain automated reporting
                                             Lend Lease is in the process of
regarding air travel of its employees,
                                             determining the materiality of motor
and (b) develop an employee offset
                                             vehicle use for its various businesses
program using frequent flyer point
                                             including delineation of business use
sacrifice by Lend Lease employees.
                                             and personal use, and defining
                                             suitable definitions and boundaries.
Lend Lease recognises product
use/disposal, distribution/logistics and
employee business travel as sources of
greenhouse gas emissions.

Temporary Offices: At any given time,
Lend Lease businesses and personnel
occupy as many as 3,000 temporary
project locations worldwide, for short
periods of time and under diverse
agreements. Equally at any given time
Lend Lease businesses subcontract
minor works including construction
trades, cleaning and maintenance to
upwards of 60,000 contractors and
suppliers, consisting largely of SMEs
and sole traders. Typically over 90% of
workers in the construction sector are
employed in micro organisations with
less than 10 employees. Establishing
indirect energy use, such as fuel use, by
these parties is not considered material.
III. External distribution/logistics

Due to the nature of its products and
services Lend Lease does not directly
operate any significant distribution or
logistic activities. Its project
management and construction
management business does receive
significant deliveries of materials. These
deliveries are conducted by Lend Lease
subcontractors and their suppliers.

It is also important to note

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Lend Lease Corporation:
Carbon Disclosure Project 5 Response

                                             may therefore be included in future           Lend Lease advocates that energy
Section B                                    expansions of the EU ETS or
                                             alternate schemes.
                                                                                           efficiency should be recognised as
                                                                                           carbon credits and included in any
3 Additional                                 Total number of allowances issued
                                                                                           voluntary or mandated carbon
                                                                                           trading scheme (refer Appendix B).
Greenhouse Gas                               under all National Allocation Plans
                                             applicable to installations covered
Emissions                                    by the EU ETS:

Accounting                                   1,999 tCO2e

                                             C       EU ETS impact
A    Countries
                                             Lend Lease is well positioned, having
Please note, the relationship between        developed in-house skills and
all figures in Table 4 is indicative only,   capacity for participation in carbon
as the data represents first quarter only    trading schemes such as EU ETS, for
and is subject to seasonal variation.        future extension of such schemes and
(Refer Table 4 below.)                       implementation of other similar
Scope 3 is provided for Australia only.      schemes in other markets.
B    Facilities
                                             TABLE 4
Lend Lease is participating in the EU                                          Tonnes CO2e                      Total
ETS via a PFI hospital in the UK which
                                             Country                 Scope 1       Scope 2        Scope 3*      (Q1 '07)
is owned by a consortium comprising
Lend Lease Corporation, Bovis Lend           Argentina               -             2.37           -             2.37
Lease, RCO Holdings plc, the British         Australia               238.29        17824.38       2878.92       20941.59
Linen Bank Ltd and French Bank,              New South Wales         6.97          8088.99        1596.88       9692.84
Société Generale. The hospital is            Queensland              3.57          6120.33        970.31        7094.21
operated by Lend Lease subsidiary Vita
                                             Victoria                227.27        3545.76        297.35        4070.38
Lend Lease. Calderdale Hospital
currently operates in excess of 20MW of      South Australia         0.47          69.30          14.38         84.16
thermal input per Schedule 1 activities      Austria                 0.04          1.10           -             1.14
according to the boundaries defined by       Czech Republic          5.50          10.95          -             142.84
the EU ETS. Based on the DEFRA               Germany                 -             5.17           -             5.17
definition of an operator as ‘the person     China                   -             2.24           -             2.24
who has control over the operation of
the installation’ Lend Lease adopted         Italy                   0.06          4.15           -             4.16
responsibility for participation in the EU   Japan                   -             42.32          -             52.23
ETS on behalf of the hospital’s              Malaysia                -             0.02           -             0.02
occupants and consortia partners. The        Mexico                  -             64.67          -             64.67
emissions allowance received is 1999
                                             Oman                    -             5.59           -             5.59
carbon credits per year and involvement
has had no impact on the profitability of    Poland                  5.50          6.39           -             11.89
the site whereas significant costs were      Portugal                0.35          1.80           -             2.15
avoided by full and prompt participation     Singapore               -             41.72          -             41.72
in the scheme. Previously, a second          Spain                   -             14.70          -             14.70
Lend Lease hospital under                    Taiwan                  -             29.20          -             29.20
management - Worcester Hospital –
                                             Thailand                -             19.46          -             19.46
also exceeded the 20MW however has
recently exited the trading scheme           Turkey                  -             0.97           -             0.97
through energy efficiency initiatives        UAE                     -             18.23          -             18.23
reducing its on site combustion below        United Kingdom          510.82        3342.03        -             3852.85
the 20Mw threshold. Lend Lease also          United States           0.90          2753.13        -             2754.03
operates 13 PFI hospitals in the UK
which exceed 10MW thermal input, and         Total                   761.45        24190.59       2878.92       27967.22

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Lend Lease Corporation:
Carbon Disclosure Project 5 Response

                                             technologies such as biomass boilers     Improvements in allocation of
4 Greenhouse                                 (Lancashire Schools projects, UK),       responsibility for energy
                                             Combined Heat and Power                  consumption to end users will also
Gas Emissions                                generation systems (PFI Hospital         reduce the scope of emissions
                                             project Essex, UK) and mini-wind         reported by Lend Lease.
Management                                   turbines (BP Petrol station, LA, USA).
                                             Solar panels are being utilised on       V. What renewable energy and
A Reduction programmes                       many offices and school projects.        energy efficiency activities are
Does your company have an                                                             you undertaking to manage your
emissions reduction program?                 II. What are the emissions               emissions?
                                             reduction targets and over what
Yes                                          period do those targets extend?          Lend Lease has focussed primarily
                                             Emissions reductions target (%):         on energy efficiency activities to
I. What is the baseline year for the                                                  reduce overall cost, with strategic
emissions reduction program?                 0 %.                                     use of offsets or purchasing of
                                                                                      renewable energy.
                                             Time frame for reduction target:
                                                                                      Energy efficiency and significant
                                             2 years
As described above in Section A(2)(A)                                                 savings have been identified
‘Methodology’, Lend Lease began              Further information:                     through improved monitoring,
global sustainability data collection                                                 optimisation of base loads,
reporting in January 2007 following a        As described in 4(a)(i) Lend Lease's     employee and contractor education,
pilot program in Australia from January      target is for all permanent office       upgrading of equipment including
2005. Once a 12 month base-line for          tenancies to be zero carbon by 2009.     lighting and use of timed lighting.
energy use has been established                                                       Examples have been provided
                                             III. What investment has been/will       throughout this CDP5 response.
(December 2007) Lend Lease will then
                                             be required to achieve the targets
determine global reduction targets
                                             and over what time period?               36% of energy consumed by
according to that baseline. In addition,
in May 2007 Lend Lease Executive                                                      commercial assets in the Lend
Management committed to a                    425,000 US$                              Lease managed property fund
sustainability aspirational target to make   Over what time period?                   APPFC is from renewable sources
all buildings produced and/or operated                                                based on 1,045 MWh of renewable
by Lend Lease zero carbon as a               1 year                                   energy from a total of 2,858 MWh
minimum, and a target for 2009 to make                                                used.
all permanent offices carbon neutral.        A full costing for achieving Lend
                                             Lease’s vision of carbon zero by 2009    B Emissions Trading
The implementation plan is being                                                      EU ETS:
formulated at a corporate level for the      will be completed when a 12 month
2008-2009 Business Planning period.          baseline for energy use has been
                                             established. Current estimates put       As discussed above in Sections
Lend Lease business units have                                                        A(1)(A)(i), A(1)(B) and B(3), Lend
developed individual greenhouse gas          this cost at approximately 0.5% of
                                             profit after tax.                        Lease currently has one asset
emissions reduction programs in their                                                 participating in the EU ETS.
Business Unit specific Sustainability
Business Plans, with some business           IV. What emissions reductions
                                             and associated costs or savings          CDM/JI:
unit’s establishing their own targets in
advance of a group target. For example,      have been achieved to date as a
                                             result of the program?                   Lend Lease is proactively
Actus Lend Lease in North America,                                                    advocating that energy efficiency
through its SYNERGY programme                                                         from buildings should be included in
(“Save Your Nations Energy”) has             It is estimated that when a 12 month
                                             baseline for energy use has been         voluntary and mandatory carbon
established its own target to reduce                                                  trading schemes.
energy consumption by 20% by 2010.           established significant reductions be
                                             achieved across the group.
                                             Significant cost savings have also       CCX:
Other initiatives include green building
ratings for new permanent tenancies,         been identified, in particular in the
                                             operation of retail assets which         Lend Lease is proactively
and a number of Lend Lease projects                                                   advocating that energy efficiency
using/specifying onsite alternative and      represent the highest consumption of
                                             electricity and gas.                     from buildings should be included in
renewable energy and energy efficient
                                                                                                                Page 15
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Carbon Disclosure Project 5 Response

voluntary and mandatory carbon trading        For example, a Delfin Lend Lease            Lend Lease commenced global
schemes.                                      design office in South Australia is         measurement of greenhouse gas
                                              located inside a shopping centre and        emissions from its permanent office
RGGI:                                         as such reflects the more intensive         tenancies in January 2007.
                                              heating, cooling and lighting utilisation
Lend Lease is proactively advocating          of a large retail centre, escalating the    Current Intensity Details:
that energy efficiency from buildings         average energy intensity for the Lend
should be included in voluntary and           Lease tenancies in that state.              Lend Lease commenced measuring
mandatory carbon trading schemes.                                                         greenhouse gas emissions from its
                                              Emissions intensity varies                  permanent office tenancies in
Others:                                       significantly across geographical           January 2007. This information will
                                              locations, with only 28% of offices         be available once Lend Lease
Lend Lease is proactively advocating          returning values within +/-20% of the       establishes a full seasonal year of
that energy efficiency from buildings         average.                                    electricity consumption and
should be included in voluntary and                                                       greenhouse gas emissions from its
mandatory carbon trading schemes.             Other locations have higher than            office accommodation operations
                                              average energy use as a direct result       (December 2007). Early indications
More detail:                                  of high on-site gas use for winter          are that these energy intensities will
As also discussed above in Section            heating, as in Northern Europe, or          vary significantly between types of
A(1)(A)(i), Lend Lease has announced          extensive use of air conditioning in        buildings and climatic zones.
its cooperation with Australian energy        tropical regions.
retailer ‘Origin Energy’ to develop a                                                     Emissions intensity (kJ/m2) are a
mechanism in its voluntary emissions          Low values from certain countries
                                                                                          product of separately collected
trading scheme which would recognise          may be due, in part, to under-reported
                                              or unaccounted emissions. This is           values for (a) total energy use and
credits from energy efficiency in                                                         (b) net lettable area (NLA m2) for
buildings (Appendix B).                       almost certainly the case in Turkey,
                                              Argentina and Malaysia, which all           each occupancy. Total floor space
                                              returned unexpectedly low emissions         for tenancies in the U.S.A. is
C    Emissions Intensity                                                                  collected in square feet and
                                              intensity values.
                                                                                          converted by head office. Those
Lend Lease has estimated emissions                                                        tenancies unable to establish total
intensity using the metric of kgCO2e/m2       Lend Lease is working to achieve
                                              accurate and comprehensive data             direct energy use from electricity
for 90 offices, across 19 countries,
                                              across its portfolio and will report on     billing due to co-tenancy or leasing
including 9 Annex B countries.
                                              its emissions annually as part of its       agreements which conceal energy
Importantly, we recognise a high degree
of uncertainty surrounding these figures,     Annual Report to Shareholders.              use have been instructed to either
particularly several outliers. We believe                                                 (a) separately meter their tenancy,
that these outliers may be due, in part,      Emissions intensity varies                  (b) calculate per square meter
to under/over-reported or unaccounted         significantly when analysed by Lend         energy use for the metered area that
emissions sources at these locations.         Lease business units, ranging from          corresponds most closely with the
                                              22-43kgCO2e/m2. It is expected that         occupied space and calculate Lend
Lend Lease is working to determine            business activity, along with               Lease share of energy use based
appropriate and material metrics to           geographical location, resource             preferably on a share of floor space,
reflect the complexities of its operations,   availability/use and operational            or secondarily on a per head basis.
including varied circumstances of part        performance all impact on these
                                                                                          Total emissions intensity for all Lend
ownership and of assets not owned by          results. Lend Lease is working to
                                                                                          Lease group companies is then
Lend Lease management.                        identify the specific impact of each of
                                                                                          consolidated at a global level.
                                              these factors, which will be used to
Lend Lease recognises that factors            shape future emissions reductions           Target details:
such as local climate, equipment              initiatives.
availability and use, and operational                                                     Lend Lease commenced measuring
performance can impact significantly on       Historical intensity details:               greenhouse gas emissions from its
emissions intensity. Across the various                                                   permanent office tenancies in
                                              Historical intensity details are only       January 2007. This information will
tenancies shown above offices differ
                                              available in limited locations where        be available once Lend Lease
greatly, ranging from floor space in
                                              pilot measurement progams began in          establishes a full seasonal year of
large commercial buildings to small free
standing sales offices.                       mid 2005.                                   electricity consumption and
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Carbon Disclosure Project 5 Response

greenhouse gas emissions from its              costs than others. In particular, retail   have now been reviewed in light of
office accommodation operations                centres pay material energy costs.         this modelling.
(December 2007).                               However, overall Lend Lease’s total
                                               energy costs equate to less than           Have these considerations made
Lend Lease permanent office tenancies          0.05% of total revenue.                    an impact on your investment
are to be zero carbon by 2009.                                                            decisions?
                                               Lend Lease monitors external
Lend Lease’s long-term sustainability          research regarding impacts on energy       In addition to a range of other social
aspiration is that all buildings we            prices in major markets. For example,      and environmental considerations,
produce and/or operate are zero                ACIL Tasman research for the               Lend Lease's potential investment
carbon.                                        Australian Prime Ministerial Task          and project Pipeline Review Process
                                               Group on Emissions Trading and ‘The        includes an environmental risk
Targets for energy intensity for buildings     Impact of Carbon Prices On Victorian       assessment of the following impacts
will need to be developed by geography         Selected Household Types – A               related to climate change:
and building type due to significant           Preliminary Analysis’ by the National
variations between assets (retail,             Institute of Economic and Industry         • Displacement of prime agricultural
premium commercial, non-premium                Research.                                  land (used for growing food)
commercial, temporary offices, sales
offices, etc.) and climatic zones.             E Planning                                 • Severe weather at risk
                                               Do you estimate your company’s             geographies
D Energy Costs                                 future emissions?
Total costs of energy consumption                                                         • No public/alternative transport
(in US$)                                       No                                         infrastructure

3,742,926 US$                                  Please provide details of these            • Groundwater usage
                                               estimates and summarize the
Percentage of total operating costs            methodology for this or provide            • Community group concerns
(%)                                            details of why you do not estimate
                                               your company's future emissions.           In addition, Lend Lease Investment
0.13 %                                                                                    Management's 'Sustainable
                                               Future greenhouse gas emissions of         Responsible Investment Policy'
Total cost provided above is for               Lend Lease operations will vary            includes commitments to:
electricity only, based on most recent         according to the number of
rate for each country per IEA End-Use          employees and permanent office             • Formally evaluate the impacts and
Electricity Prices posted June 7, 2007.                                                   risks of environmental, social and
                                               accommodation occupied by Lend
Note, this cost includes charges passed                                                   safety issues in our investment and
                                               Lease businesses. In the first quarter
on to tenants in assets where occupiers                                                   management decision making;
                                               of 2007 Lend Lease assessed its
pay an allocation for electricity use but
are not explicitly submetered, and as          construction project greenhouse gas
                                               emissions. It was determined based         • Measure and report on
such is not an accurate reflection of true                                                environmental and safety criteria;
operational cost.                              on energy cost that these emissions
                                               were minor and are not included in
                                                                                          • Set targets to increase
Total operating costs for FY07 are not         this response.
                                                                                          environmental and safety
yet available. They will be publicly                                                      performance in operation and
reported in the 2007 Annual Report to          How do you factor the cost of
                                               future emissions into capital              development;
Shareholders. Based on approximate
total operating costs for the equivalent       expenditure planning?
                                                                                          • Create and implement a
period in 2006 the total cost of electricity                                              Sustainable Development
                                               Detailed modelling was undertaken in
reported above as a percent of these                                                      programme for managed
operating costs (US $5,772.75 Million          conjunction with The McKinsey Group
                                               in early 2007 to forecast short,           development projects incorporating
for July 06-Dec 06 based on a current                                                     environmental, social and safety
currency conversion rate of 1 AUD =            medium and long term impacts of
                                               climate change and rising energy           considerations for site selections,
0.8477 USD ) the percentage of total is                                                   design and construction;
approximately 0.13%.                           costs on Lend Lease businesses
                                               globally. These impacts were
                                                                                          • Create and implement a
Some Lend Lease business units are             modelled separately and then
                                                                                          Sustainable Operations programme
more heavily exposed to rising energy          combined. All business strategies
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for managed investments
incorporating environmental
management plans and operation

• Use green building rating tools where
they exist, to benchmark environmental

• Engage and share knowledge with
stakeholders on environmental, social
and safety issues;

• Work with industry bodies and
government on tools and incentives
which promote
improved environmental, social and
safety performance in the property

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                                                      responsible for driving group-wide            implementation of the Business
5 Climate Change                                      implementation of sustainability              Sustainability Plan. The
                                                      activities and non-financial reporting        performance of Senior Managers
Governance                                            of Lend Lease’s activities.                   and payment of financial incentives
                                                                                                    are determined by this KPI.
A Responsibility                                      More information about the Lend
I. Which Board Committee or other                     Lease Board Committee structures is           Dedicated Sustainability Executives
executive body has overall                            provided in the Lend Lease Annual             in all business units worldwide also
responsibility for climate change?                    Report to Shareholders at                     have performance objectives tied to
                                                                 remuneration. For more information
Subsequent to the implementation of                                                                 refer to Governance in Section
the governance structure as described                 Each Lend Lease business unit has a           B(5)(1)(a) above.
in the CDP4 response (Appendix A) the                 Sustainability Plan, with pathways for
Lend Lease Board formed a                             action implementation.                        Additional information relating to
Sustainability Committee. The Charter                                                               this question:
for this committee was finalised at the               II. What is the mechanism by
June 2007 meeting of Directors.                       which the Board or other executive            Executive Education:
                                                      body reviews the company’s
From July 1, 2007 the Global Head of                  progress and status regarding                 Employees are informed of impacts
Sustainability will become a member of                climate change?                               of climate change through formal
the Extended Executive Management                                                                   and informal learning including
Team.                                                 The Lend Lease Board Sustainability           attendance at internal and external
                                                      Committee reviews the sustainability          speaking events, movie screenings,
The Sustainability Committee oversees                 performance of the group.                     newsletters and other
the activities of the Global Sustainability                                                         communications. In addition, four
Group (GSG) and its network of                        B Individual Performance:                     Lend Lease Executives including, a
dedicated Sustainability Executives                   Do you provide incentive                      CEO and a non-executive Director
across all business units. (Refer                     mechanisms for managers with                  have been trained by former US
diagram attached.)                                    reference to activities relating to           Vice President the Hon. Al Gore in
                                                      climate change strategy, including            Sydney, Nashville and Cambridge
The GSG is responsible for developing                 attainment of GHG targets?                    respectively through his ‘The
Lend Lease sustainability strategies and                                                            Climate Project’ initiative. Lend
policies, and communicating                           All Lend Lease Senior Managers                Lease is also a global sponsor of the
sustainability information across all                 have a Key Performance Indicator              Prince of Wales Business and
businesses. The GSG is also                           related to the successful                     Environment Programme and
                                                                                                      participates in its Senior Executive
                                                                                                      Seminars held annually.
                      Board           Non-Executive
                      Sustainability     Director
                      Committee      (Committee Chair)

                              Group            Executive             -Executive
                               CEO              Director             Director

 Sustainability                               Group CEO
 Committee                                  (Committee Chair)

     CEO           CEO            CEO     Global Head            Global          Global    Group
    Retail &      PM, CM       Investment  of Human              Head of        Head of   General
  Communities      & PFI       Management Resources            Sustainability     Risk    Counsel

                     Global                  Global Head of
                     Sustainability           Sustainability

                           Sustainability     Sustainability       Sustainability
                            Research           Reporting           Communication

                Dedicated Sustainability Executives in All Business Units
                                                                                                                              Page 19
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Carbon Disclosure Project 5 Response

6               Appendices

6.1             Appendix A
Carbon Disclosure Project 4 Response

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   Carbon Disclosure Project 4, 2006

Response by Lend Lease Corporation

                        31 May 2006

1. GENERAL: How does climate change represent commercial risks and/or opportunities for your

Lend Lease is a leading retail and community development property group supported by investment
management and construction management businesses. As a property developer or builder or manager of
property investments, climate change impacts might present themselves directly or indirectly.

Lend Lease Corporation has just completed stress testing its ten year business plan. The process involved
identifying the assumptions and uncertainties in each of the business plans for the three global lines of
business (Retail and Communities, Investment Management and Bovis). These uncertainties were grouped
into global drivers and regional drivers. The global drivers were subject to sensitivity analysis in a macro
economic world, while the regional drivers were tied to financial drivers, which could be modelled to
determine the value at risk. Climate change and severe weather events were considered as part of the
extensive review of global markets and trends. Lend Lease adopts Enterprise Wide Risk Management
philosophies. Operational risks (which might include climate change impacts), which are inherent in the lines
of business are managed by the lines of business. The lines of business identify project risks and map these
risks by using two dimensional risk maps.

In the context of managing insurable risk, insurers underwrite weather-related catastrophes by calculating,
pricing and spreading the risk and then meeting claims when they arise. A changing, less predictable
climate has the potential to reduce their capacity to calculate, price and spread this weather-related risk.
Any weather-related damage to an asset owned or managed by Lend Lease, could only result in financial
risk if the reinsurer was unduly exposed.

The property sector is seeing a number of activities that are endeavouring to deal with climate change and
its impacts. These are not exhaustive, and present emerging opportunities for the property sector to differing
degrees, and include:

•   regulatory interventions to cut emissions from the consumption of electricity, such as mandated building
    regulations, demand management initiatives (to deal with peak electricity load risks) or more
    competitive energy price signalling as part of a suite of mechanisms that respond to consequentially
    mitigating climate change impact. Governments are increasingly requiring the building industry to
    comply with new climate change regulations using energy efficiency codes for new buildings and in
    some countries for the refurbishment of existing buildings. In some cases the new compliance
    requirements set maximum greenhouse gas emissions for whole buildings.

•   Voluntary market solutions such as green building rating tools (e.g. Green Star in Australia, LEED in the
    USA and BREEAM in the UK) and the increasing market transformation.

•   A reframing of contractual relationships in the commercial building sector between owners and tenants
    to maximise eco-efficiencies.

•   Other government support schemes (e.g. grants) to stimulate energy efficiencies and reduce
    greenhouse gas emissions.

Lend Lease actively supports and participates in these initiatives. More detail is provided in the case studies
section of the 2006 Lend Lease Sustainability Report:

In order to reduce its greenhouse gas emissions Lend Lease has:

    Analysed the implications of climate change for its organisation.
    Developed an action plan, focusing on cost-effective, practical solutions for calculating greenhouse gas
    emissions across all businesses globally for 2005-2007; and
    Plans to introduce greenhouse gas emissions reduction targets 2007-2008.

2. REGULATION: What are the financial and strategic impacts on your company of existing
   regulation of GHG emissions, and what do you estimate to be the impact of proposed future

For the property and construction sector, regulation related to climate change is reflected predominantly by
changes in building performance codes and standards, which require greater energy efficiency in the
building design. The likely price impacts on the manufacturing sector, as major consumers of electricity (for
production of steel, glass, aluminium products etc) has the potential to result in increased costs for critical
construction materials.

About 38% of greenhouse gas emissions come from the activities within buildings. Buildings, as diffuse
emitters, could contribute to significant reductions in greenhouse gas emissions through efficiencies. An
international emissions trading scheme which allows for energy efficiency and demand side abatement
would provide an incentive for developers to undertake energy efficiency and demand side abatement
measures, while also allowing industry to work in partnership with government to reduce greenhouse gas
emissions. In Australia, the State Government of New South Wales has established an emissions trading
scheme called the ‘Greenhouse Gas Abatement Scheme’. This scheme aims to reduce greenhouse gas
emissions associated with the production and use of electricity. It achieves this by using project-based
activities to offset the production of greenhouse gas emissions. Monitoring the performance of benchmark
participants is undertaken by the Independent Pricing and Regulatory Tribunal of NSW in its role as Scheme
Administrator. Lend Lease advocates that international emissions trading schemes should allow the property
sector to accrue and trade carbon credits from energy efficiency and demand side abatement initiatives. A
similar scheme exists in the United Kingdom. It should be noted however, that apart from the United
Kingdom and New South Wales, no other carbon trading scheme allows for the inclusion of buildings to
accrue and trade carbon credits from energy efficiency and demand side abatement initiatives.

The financial impacts could be any or all of the following:

    1. Cost of increasing industry and supply chain capacity to design and construct more efficient
    2. Capital cost of the efficiency or cost associated with change in design or construction
    3. Capital cost of efficient technology; and
    4. Cost of the products and materials that have passed on their carbon penalty.

The strategic impacts include the need for:

    1. Greater analysis of likely weather impacts and associated risks when considering developments;
    2. Investment in the education of industry to respond to increasing energy efficiency design and
       construction solutions.
    3. Supply chain solutions (including consultants and contractors).

3. PHYSICAL RISKS: How are your operations affected by extreme weather events, changes in
weather patterns, rising temperatures, sea level rise and other related phenomena both now and in
the future? What actions are you taking to adapt to these risks, and what are the associated financial

The principal commercial risks of the predicted outcomes of climate change to the property sector broadly,
and to Lend Lease specifically, are the potential damage to assets it has an interest in. If the severity of the
weather event is high, then significant damage to assets could result. Financial impacts could result from
insurance premiums.

Lend Lease has included climate change risk into its scenario planning and as a result of this analysis are
responding to the risk in the following ways:

    1. Increasing energy efficient design, procurement and construction knowledge and skills; and
    2. Commissioning of modelling for assessment of ‘at risk’ geographies when considering investment
       and development opportunities.
    3. Adopting of Enterprise Wide Risk Management philosophies to identify project risks and map these

In addition, Lend Lease is a global advocate for buildings to be included in international carbon trading
schemes. The inclusion of buildings to accrue and trade carbon credits from energy efficiency and demand
side abatement, if combined with other incentives targeted to overcome any first cost barriers of
environmental efficiencies and would significantly help to reduce greenhouse gas emissions from buildings.

4. INNOVATION: What technologies, products, processes or services have your company
developed, or is developing, in response to climate change?

Lend Lease’s Head Office, 30 The Bond, in Australia, has set new benchmarks in energy efficiency for
commercial office buildings in Australia. 30 The Bond was the first commercial office building in Australia to
achieve a Certified Rating under the Green Star – “Office As Built” rating tool. It achieved a 5 Star Green
Star Certified Rating, recognising Australian Excellence. A case study on The Bond is featured in the 2006
Lend Lease Sustainability Report, at

Lend Lease has a history of leadership in the development of responses to climate change. Within the three
regions in which we operate Lend Lease has in-house sustainable design specialists and have contributed
to development of rating tools in the three regions (LEED, BREEAM, Green Star).

Lend Lease is committed to better understanding and measuring its overall sustainability impact as a
company. To this end it has initiated the following actions:

    1. Committed to sustainability disclosure beginning with its 2006 Sustainability Report With the
       publication of its first Sustainability Report in February 2006, Lend Lease has embarked on
       consolidating and formalising its commitment to sustainability, building on earlier, intuitive
    2. Established a Corporate Sustainability Team with a Global Head of Sustainability.
    3. Developed a Global Sustainability Plan covering a roll-out of sustainability initiatives across all of
       Lend Lease’s operations.
    4. Committed all Lend Lease businesses to have a Sustainability Plan in place by January 2007 with
       key performance indicators established. Lend Lease is developing benchmarks for application
       across all its businesses and global geographies to guide efforts to help understand how to
       minimise the impact of its operations on the environment.

Lend Lease will progressively add metrics and targets for all its businesses and will continue to report on its

Lend Lease is a founding board member of the US Green Building Council and the Green Building Council
of Australia and it is currently supporting the formation of the UK Green Building Council. Hundreds of Lend
Lease employees have attended or participate in green building educational courses, seminars and forums
and are active members of industry committees to drive better outcomes for the environment. In addition,
Lend Lease staff are green building Accredited Professionals (BREEAM, LEED and Green Star) and offer
advice on reducing greenhouse gas emissions from buildings.

Lend Lease sponsors a resource to the AP6 Buildings and Appliances Taskforce role to contribute to the
Asia-Pacific Partnership on Clean Development and Climate (the 'Partnership'). The Partnership has been
established to serve as a framework for supporting "agile, constructive, and productive international
cooperation among the Partners to meet our development, energy, environment, and climate change
objectives". The purposes of the Partnership are consistent with the principles of the United Nations
Framework Convention on Climate Change and other relevant international instruments, and are intended to
complement but not replace the Kyoto Protocol.

5. Responsibility: Who at board level has specific responsibility for climate change related issues
and who manages your company's climate change strategies? How do you communicate the risks
and opportunities from GHG emissions and climate change in your annual report and other
communications channels?

Where climate change related issues are evaluated as operational risks or opportunities they are managed
by the lines of business.

The Board of Lend Lease Corporation has also an established ‘Risk Management and Audit Committee’
(RMAC) as a permanent Board committee. Its role is to assist the Board by reviewing the effectiveness of
risk management and compliance systems in all of our businesses worldwide and by providing assurance
that assets are protected against financial loss, legal and regulatory obligations are met, and proper
accounting and auditing practices are maintained.

The Corporate Sustainability Team (CST) is responsible for developing policy, communicating information
and undertaking stakeholder engagement relating to sustainability, across the businesses to the Global
Executive Management Team (another Board Committee which runs parallel to RMAC) and to the Lend
Lease Board. The CST is responsible for driving group-wide implementation of sustainability measurement
and the non-financial reporting of Lend Lease’s activities.

Each business bears responsibility for direct management of environmental issues, and also coordinates
with the Global Head of Environmental Health and Safety (who is a member of the Global Executive
Management Team). More details about the Lend Lease Board Committee Structures are provided in the
Lend Lease Annual Report at

6. Emissions: What is the quantity in tonnes CO2e of annual emissions of the six main GHGs
produced by your owned and controlled facilities in the following areas, listing data by country?
Globally, Annex B countries of the Kyoto Protocol, EU Emissions Trading Scheme.

Globally: Due to the nature of its business Lend Lease measures carbon dioxide from energy consumption.
The other 5 greenhouse gases are not relevant to the property sector.

Annex B: Lend Lease currently operates in 23 of the 39 countries covered by Annex B.

Lend Lease has embarked on a Sustainability Measurement and Reporting Program which is being rolled
out over a 3 year period across all operating regions. This will include energy consumption and emissions
calculations from operations and be aligned with the Global Reporting Initiative Property Sector Supplement.
The scope contemplates the differing businesses across all regions of operations to ensure consistency of
data collection calculation methodology and target setting.

The following data relates to energy consumption of Lend Lease’s Global Head Office, 30 The Bond,
Sydney Australia, which accommodates approximately 800 staff.

Through pre and post occupancy evaluations, Lend Lease has collected data for its greenhouse gas
emissions from its global headquarters. The Australian Building Greenhouse Rating Scheme calculates the
greenhouse gas coefficients as 0.94. Lend Lease refers to the National Electricity Market Management
Company (NEMMCO) greenhouse gas coefficient of 1.04. The following emissions data is relevant to the
last reporting period.

Base Building - from 1 October 2004 to 30 September 2005:

         1291148kWH --- 1342794kgCO2e/annum (electricity)
         684735MJ --- 157489kgCO2e/annum (gas)

Tenancy - from 1October 2004 to 30 September 2005:

         774072kWh -- 805035kgCO2e/annum (general office power)
         678340kWH - 705474kgCO2/e annum (data centre - excluded from ABGR rating)

30 The Bond has consecutively exceeded its design greenhouse gas emissions target of 30% less
greenhouse gas emissions than an average office building in Australia.

EU Emissions Trading Scheme: Lend Lease Corporation is currently not involved in the EU Trading
Scheme. We are however, exploring opportunities for emissions trading participation in this Scheme.

7. Products and services: What are your estimated emissions in tonnes CO2e associated with the
following areas and please explain the calculation methodology employed.
             - Use and disposal of your products and services?
             - Your supply chain?

Refer to Question 6. Over the next 3 years, Lend Lease is progressively systematising its measurement and
data collection of greenhouse gas emissions, amongst other key sustainability criteria, across its operating
regions and supply chain.

8. Emissions reduction: What is your firm’s current emissions reduction strategy? How much
investments have you committed to its implementation, what are the costs/profits, what are your
emissions reduction targets and time-frames to achieve them?

Refer to Questions 6 and 7. Lend Lease is working to identify its baseline position globally, as a precursor to
the setting of greenhouse gas emission reduction targets.

Over the next 3 years, Lend Lease is also consolidating its global position on sustainability by reviewing its
existing policies to contemplate: sustainability measurement utilising the Global Reporting Initiative

Lend Lease is also evaluating carbon-trading opportunities and current barriers / incentives to participation
in emissions trading schemes (refer to Question 9). Lend Lease is a supporter of the recently launched
United Nations ‘Sustainable Building Construction Initiative (UNSBCI). Lend Lease supports the objectives
of the UNSBCI and its two Focus Areas:

1. Qualify buildings and construction activities as eligible activities for support under the flexible
   mechanisms of the Kyoto protocol.

2. Develop and promote economic incentives for a life cycle approach in design, construction and
   financing of buildings, so as to create market conditions favourable to buildings that are optimized from
   a life cycle perspective.

9. Emissions trading: What is your firm’s strategy for, and expected cost/profit from trading in the
EU Emissions Trading Scheme, CDM/JI projects and other trading systems, where relevant?

Buildings, as diffuse emitters, can contribute to significant reductions in greenhouse gas emissions. An
international emissions trading scheme which allows for energy efficiency and demand side abatement
would provide incentives for developers to undertake energy efficiency and demand side abatement
measures, while also allowing industry to work in partnership with governments to reduce greenhouse gas

Lend Lease advocates that international emissions trading schemes should include buildings.

10. Energy costs: What are the total costs of your energy consumption, e.g. fossil fuels and electric
power? Please quantify the potential impact on profitability from changes in energy prices and

Lend Lease operates in over 40 countries globally. Its presence ranges from regional offices, construction
and sales site offices to retail centre management offices, and typically leased premises. Lend Lease’s
Sustainability Measurement and Reporting Program will coordinate and consolidate the costs for energy
consumption, both direct and indirect (refer to Question 6). Total costs are expected to be dependent on the
metering configuration, seasonality, billing and tariff arrangements under energy contracts and usage levels
by other co-tenants for these sites.

However, by way of example our energy provider has advised that for the calendar year Jan to Dec 2005
the total electricity bill for our global headquarters, 30 The Bond, Sydney Australia, for direct consumption
amounted to: AU$130,883.00, and our corresponding greenhouse gas emissions were equivalent to
1,560.84 tonnes of greenhouse gas emissions.

An assessment of profitability impact will be conducted as part of the Sustainability Measurement and
Reporting Program (refer to Question 6).

Lend Lease Corporation:
Carbon Disclosure Project 5 Response

6.2             Appendix B
Carbon Trading comments and Origin media release

                                                                 Page 21
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Media Release
Tuesday 20th March 2007

Origin’s Carbon Reduction Scheme offers Australian businesses a
new and transparent way to offset their ‘carbon footprint’
Today Origin Energy launched its new Carbon Reduction Scheme targetted at Australian
businesses looking for an accredited and verified carbon offsetting framework to reduce their
environmental impact.

Origin’s Carbon Reduction Scheme now provides the business community with a consistent
standard for buying and selling voluntary carbon offsets, rather than having to source these
from a fragmented market.

Origin’s new scheme is the first industry developed scheme in Australia to be anchored by an
independently audited framework that ensures all carbon abatement activities and carbon
offset products comply with a governance regime. Ernst & Young will audit the scheme
against the Carbon Reduction Scheme Governance Structure, created by Origin.

Speaking at today’s launch, Origin’s chief operating officer, Karen Moses said, “The
Australian business community – specifically those not in the stationary energy and related
industries - have been searching for ways to reduce their business’ carbon impact. Our
Scheme allows business to offset emissions associated with any part of their business,
products or services using a verified and transparent framework.

“Origin has recognised this need in the business community and plans to market its Carbon
Reduction Scheme to all segments of the Australian economy. We have the expertise in
managing the trading, accreditation and compliance aspects of mandatory carbon schemes so
it makes sense that we are well positioned to lead the Australian business community towards
a broad-based voluntary scheme,” Ms Moses said.

Origin welcomed advice and input from the Australian Conservation Foundation, St James
Ethics and Energetics while developing the Carbon Reduction Scheme. ACF Executive
Director, Don Henry commented, “climate change is the most important issue we face and
we can all make a difference. Government, business and individual Australians should work
together to reduce our emissions, choose accredited GreenPower and offset the emissions we
can’t avoid.”

Origin Energy Limited ABN 30 000 051 696 ? Level 21 Melbourne Central 360 Elizabeth Street Melbourne VIC 3000
GPO Box 186C Melbourne VIC 3001 ? Telephone (03) 9652 5555 ? Facsimile (03) 9652 5536 ?
Origin has already secured agreements with a number of high-profile Australian businesses
including: National Australia Bank, Transurban, Lend Lease, Insurance Australian Group,
Australian Football League, Student Travel Association and Intrepid Travel.

“Typically, participating organisations are keen to reduce their environmental impact in a
manner that creates value for their organisation. Generally the first step is to reduce energy
consumption, then replace coal-fired electricity with Green Power and finally purchasing
carbon offsets through a scheme like ours to reduce the remaining emissions from other
activities like company air and road travel,” Ms Moses said.

The range of companies already signed up to Origin’s Carbon Reduction Scheme demonstrates
its flexibility in practise. It draws on existing mandatory and voluntary frameworks to ensure
that participating organisations can use one framework and apply it to national and global
operations as required. Further, participants can choose to engage in two sides of the carbon
exchange: to allow Origin to undertake carbon abatement activities on their behalf through
the purchase of carbon offset products, or to sell carbon credits through the scheme.

“Origin’s scheme now allows business to also purchase carbon offsets that are sourced from
abatement activities overseas. This is particularly attractive to companies with operations
here and abroad,” Ms Moses said. “Many offset products currently available lack transparency
in regards to the carbon reduction projects they source from and how the carbon credits are
then retired to ensure they cannot be used again. Our Carbon Reduction Scheme now
provides customers with the certainty that all products on offer meet public and verified
standards.” Ms Moses said.

Origin’s Carbon Reduction Scheme offers businesses a range of options to reduce their carbon
emissions, such as energy efficiency projects, renewable energy or low-emission generation,
carbon sequestration, composting, and industrial abatement like methane destruction.


Media contact:
Tony Wood
General Manager Public and Government Affairs
Telephone: 03 9652 5506
Mobile 0419 642 098

About Origin Energy: With a history dating back 140 years, Origin Energy is a leading Australian
ASX -listed energy company and participates in most segments of the energy supply chain, including
natural gas and oil exploration and production; power generation; energy retailing and trading; and
asset management services. Origin Energy currently supplies energy to more than 2.1 million
Australian homes and businesses and employs over 3,200 people. Origin Energy is also the major
shareholder in New Zealand’s Contact Energy. In 2005-06 Origin’s revenue was $5,950 million.

Building a tradable solution to climate change
by Maria Atkinson

The failure of the report by the Prime Minister’s Task Group on Emissions Trading to recognize buildings as
a key part of a carbon emissions trading scheme was a missed opportunity to drive deep and cost-effective
emissions cuts, and a lost economic opportunity.

What have buildings got to do with greenhouse gas emissions? A lot. In fact, the construction, operation,
maintenance and demolition of buildings contribute up to 40% of global greenhouse gas emissions. To put
this in perspective, the average office building in Australia achieves a 2 Star Australian Building Greenhouse
Rating which is equivalent to 167kg greenhouse gases/ sq m each year and the average Australian office
tenancy (2 Star ABGR) emits 144kg greenhouse gases/sq m … making a total of 301kg greenhouse
gases/sq m each year. And if we work on the basis of there being 509 office buildings in the Sydney CBD
with a total floorspace of 4,733,947 sq m (according to the Property Council of Australia) then collectively
the commercial office buildings in the Sydney CBD generate something in the order of 1,424,818 tonnes
greenhouse gases each year. So it goes without saying that across Australia, the built environment can
make a real contribution to reduction targets.

Achim Steiner, UN Under-Secretary General and UNEP Executive Director, recently said: “By some
conservative estimates, the building sector world-wide could deliver emission reductions of 1.8 billion tonnes
of CO2e(greenhouse gas emissions)." And according to the Intergovernmental Panel on Climate Change,
these reductions can be delivered with net economic benefit. In fact, they forecast that by 2030 energy
efficient buildings can not only cut projected greenhouse gas emissions in the building sector by about 30%,
they can also improve indoor and outdoor air quality, improve social welfare and enhance energy security.
Perhaps the most convincing analysis so far is the Vattenfall/ McKinsey cost-curve which clearly shows that
improving the energy efficiency of buildings through improvements to heating, cooling and ventilation
systems, appliances and lighting is not just the quickest but also the most cost-effective way to cut
greenhouse gas emissions. Closer to home, even Prime Minister Howard’s own Task Group of Emissions
Trading has acknowledged that improving energy efficiency is “one of a number of measures available to
reduce emissions which are either low cost or have a net economic benefit beyond emissions abatement”.

The recent bidding war by the Federal Government and Federal Opposition on rebates for solar panels
seemed to suggest that our federal politicians were finally getting the message that improving the energy
efficiency of buildings is a quick and cost-effective solution to reducing emissions. But while rebates for solar
panels on Australian homes are important incentives,. the fact is that much more could be achieved for
much less, simply by creating a carbon emissions trading scheme that allows buildings to accrue and sell
credits for emissions cuts achieved through energy efficiency measures.

Consider this: based on the BASIX energy benchmark of 3,292kg of greenhouse gases per person per
year, the average Australian family home, with two parents and 2.2 children generates around 13,826kg
each year; the average (2 star ABGR) Australian office tenancy generates something in the order of 2010
tonnes of greenhouse gas emissions each year. Labor estimates that their rebates will deliver cuts of “up to
16,800 tonnes a year” or the equivalent of taking 4000 cars off the road for a full year. But if every
commercial office building in the Sydney CBD were to cut its emissions by half – which could effectively be
achieved through the installation of more efficient lighting and heating and cooling solutions - we could
deliver a 700,000 tonne reduction. Using the City of Sydney’s metrics that a 5000 m2 tenancy cutting its
emissions by half is equivalent to taking 250 cars off the road, if all tenancies in the Sydney CBD did that it
would be equivalent to taking more than 230,000 cars permanently off the road. It’s pretty clear where the
Government should be playing.
The good news is that around the country, big players in the property industry are already delivering real
cuts in greenhouse gas emissions through a range of energy efficiency measures in buildings. According to
recent analysis by the Green Building Council of Australia, each of the 26 Green Star certified commercial
office projects is on average consuming 85% less energy than the typical office building, and reducing
greenhouse gas emissions equivalent to taking 300 cars off the road - each. Lend Lease’s own global
headquarters, 30 The Bond, has been measured at producing 48% less energy related greenhouse gas
emissions than the average Sydney office building – which are more efficient than many around the country.
Indeed the evidence is there to suggest that green buildings are reducing greenhouse gas emissions by 40
or 50% over conventional or typical buildings.

And the cost to the taxpayer of these reductions in greenhouse gas emissions? Exactly nil.

Yes, there are market drivers and financial returns for building owners and tenants in investing in energy
efficiency measures, not least of which being lower operating costs. But the split incentive nature of the
property industry means that it is more common than not that the entity responsible for developing the
building is not the owner of the building, let alone the tenant. So there is no financial incentive for a
developer to invest in energy efficiency and little incentive for a owner to make the investment either. But
there could be.

The Government could – and should - be driving even greater and faster uptake of energy efficiency
measures in buildings across the country. We’re not talking hand-outs. The answer is as simple as putting a
dollar figure on the greenhouse gas abatements achieved through energy efficiency measures – via a
carbon emissions trading scheme that goes beyond the standard offsets of renewable energy and tree-
planting to recognize abatement achieved through energy efficiency in buildings. The benefit is for all – this
would stimulate more affordable energy efficient solutions for all Australians.

While Australia continues to wait for a government-sanctioned national carbon emissions trading scheme,
Origin Energy recently launched such a scheme, and Lend Lease is currently working with Origin to put the
final touches on a mechanism that would enable property developers and portfolio owners to measure the
abatement from various energy efficiency measures. This would in turn allow them to accrue and ultimately
sell those carbon credits into the market – effectively making a financial return on their investment, and
providing a real incentive to the industry – with no cost to the taxpayer. What sort of incentive are we talking
about? Even at the low rate of $8 per tonne, a large office building to 5 Star Green Star standards can save
4 million kg greenhouse gas emissions a year from design efficiency initiatives which is worth about $30,000
in carbon credits.

And by providing a financial incentive for developers and owners to install energy efficiency measures – at
no cost to the tax-payer – it would also drive skills, technology and jobs for the Australian economy, and
position us as a world leader and demonstrate Australian excellence in green building design and efficiency

Given the number of Australian property companies heavily involved in construction in developing countries
with massive urban development needs, such as China and India, it would also have flow-on effects in
terms of assisting those countries in reducing their predicted emissions.

The Issues Paper released by the Task Group in February this year questioned whether emissions trading
would have an impact on the take-up of low cost abatement options such as energy efficiency measures?
Sadly the final report doesn’t address this option but the answer is unequivocally yes.
And thanks to the sheer size of the commercial property industry, that take-up would inevitably lead to
supply going up and the price going down - making them more affordable for all Australians. More sensible
and a lot cheaper than $150 million worth of rebates for solar panels on 14,000 homes.

Best of all, it could all be up and running almost immediately – there’s no need to wait until 2012. And it’s not
complex or onerous - it’s a very simple way to address a large part of the problem.

In short, including buildings in Australia’s carbon emissions trading scheme would be a huge economic
opportunity; not to do so would be a missed opportunity – environmentally and economically.

Maria Atkinson is Global Head of Sustainability at Lend Lease. She was previously the founding
CEO of the Green Building Council of Australia.
Lend Lease Corporation:
Carbon Disclosure Project 5 Response

6.3             Appendix C
Other media clips and releases

                                                     Page 22
Carbon Disclosure Project 5            Lend Lease Corporation
                                          ABN 76 104 485 289
                                                  2/07/07 3:33 7
                               Sydney Morning Herald                                            Brief: LEASE
                               Saturday 5/5/2007                                                Page 2 of 3
                               Page: 30
                               Section: News Review
                               Region: Sydney Circulation: 355,750
                               Type: Capital City Daily
                               Size: 820.10 sq.cms.
                               Published: MTWTFS-

2004. Last August, he was praised for cre-               While some environment groups criti-
ating Australia's greenest and healthiest             cised the State Government after it weak-
office building for his work on the City of           ened the rules for apartment blocks, Taper
Melbourne's Council House.                            believes BASIX is still a groundbreaking
   But Wall, like many of his supporters, fears       model. The problem is the rules cover only
Australia is lacking political leadership on the      new homes, about 2 per cent of all housing.
building revolution under way, which is cut-          Upgrading the energy efficiency of existing
ting greenhouse gas emissions from build-             homes is the crucial challenge.
ings in California and most big cities in                One idea floated by Taper is to offer home
Europe. The release this week of Government           buyers a rebate on their stamp duty to help
figures showing emissions from electricity            them install energy-saving devices. Given Syd-
generation have leapt more than 40 per cent           ney houses are sold once every seven years, on
since 1990 reinforced his pessimism.                  average, it is one way to drive change.
   While Europe and several US states are talk-          Energy- and water-efficiency measures are
ing about mandatory efficiency measures to            expected to feature in the federal budget on
cut emissions by up to 20 per cent by 2020,the        Tuesday. But many environmentalists and
Howard Government's many measuresto curb              some business executives believe Australia is
energy consumption are largely voluntary.             doing too little, too late. Without tougher,
   "The leadership is almost non-existent at          enforced regulations and bigger incentives,
the federal level," Wall says. "I am very frus-       the changes envisaged by the UN panel just
trated with all the debate this week around           won't happen on a scale big enough to make
nuclear power when weare not going to solve           a real difference.
the problem in Australia with that."                      f
                                                          I the rest of the world moves as slowly as
   As well as its plan to roll out energy-efficient   Australia, global warming will cause cata-
light bulbs,the Government backed a building          strophic damage to the planet, all the avail-
code introduced last year to bolster the energy       able science shows. The Environment
efficiency of new commercial buildings. And           Minister, Malcolm Turnbull, said this week
this week ANZ said it would spend $34 million         that Australia was on track to meet its Kyoto
making its global headquartersin Melbourne a          Protocol target. But on that trajectory, our
six-star green building.                              greenhouse gas emissions will rise to 108 per
    But these showcase designs make up a              cent of 1990 levels by 2012 then shoot up in
small slice of commercial property. Wall be-          the following decade.
lieves the Government should urgently pro-                Labor and the Greens argue that without
 vide tax incentives for business to upgrade          national targets to cut greenhouse gases,
the many older commercial buildings that              Australia will be become isolated in the de-
are hugely energy inefficient.                        veloped world on climate change. This view
    As the chairman of the World Green                is shared by some key business figures
 Building Council and founder of the Aus-             worried that companies here are failing to
 tralian body, Wall's vision is for a building        comprehend the challenges and oppor-
 industry that can sell its ideas on                   tunities that climate change is creating.
 sustainability around the world. "We still               Atkinson's Lend Lease colleague Ross Taylor
 have a mentality in Australia dominated by           warned business last year. "Australiais not
 the resources industry and we don't see that          leading in the area of sustainability.As a result,
 our expertise in building sustainability is           businesses in Australia are at risk of being
 something we can invest in," he says.                 increasingly left behind and becoming increas-
    On the home building front, he is encour-          ingly vulnerable to international competitors."
 aged by the efforts of the NSW Government,               While Sydney is still struggling to cut its
 which has pushed through the country's                soaring energy use, especially in older houses
 strongest energy-efficiency guidelines for            and apartments, Berlin is on track to reduce its
 new houses and apartments.                            greenhouse gas emissions by 25 per cent on
    The building sustainability index, or              1990 levels by 2010. While some of that drop in
 BASIX, requires new houses to cut 40 per cent         emissions is from closing inefficient Cold War
 of greenhouse gas emissions on a 2003 base-           industrial plants, Berlin has slashed domestic
 line. Most importantly,says Bruce Taper, the          energy use by offering subsidies for solar ther-
 architect of the system, the scheme is fair. A        mal plants in blocks of old apartments. The
 new McMansion house cannot get by with                municipal government has also supported the
 solar-powered hot water if its uses vast              installation of solar collectors on 75 per cent of
 amounts of coal-fired electricity to run air-         all new buildings. Even the Reichstag, the
 conditioning and pool pumps.                          German Parliament,has a solar energy system.
    This is critical because the size of Aus-              While the Federal Government recently
 tralian houses has grown by about 40 per              announced new funding for the Solar Cities
 cent since the 1980s, and so have emissions            program to give the industry a boost, many
 from electricity use. Heating and cooling ac-         Australians will find it strange that Germany
  count for almost a quarter of the electricity         has passed this country as one of the leading
  used in the home.                                     users of solar power in the world.

                                 Copyright Agency Limited (CAL) licensed copy                                  Ref: 27770453
 Sydney Morning Herald                         Brief: LEASE
 Saturday 5/5/2007                             Page 3 of 3
 Page: 30
 Section: News Review
 Region: Sydney Circulation: 355,750
 Type: Capital Citv Dailv
 Size: 820.10 sq.cms.
 Published: MTWTFS-

Copyright Agency Limited (CAL) licensed copy             Ref: 27770453
Developers push for credits on properties

Author: Philip Hopkins       Publication: The Age
Date: 04/06/2007             Section: Business
Words: 342                   Page: 2
Source: AGE
AN EMISSIONS trading scheme could allow developers and owners of energy efficient
buildings to earn money from selling greenhouse credits, according to a senior industry
Maria Atkinson, who is head of global sustainability at Lend Lease, said a carbon
emissions trading scheme should go beyond the standard offsets of renewable energy
and tree planting. She said it should put a dollar figure on the greenhouse gas
abatements achieved through energy efficient measures.
"We're not talking handouts," said Ms Atkinson, who was the founding chief executive of
the Green Building Council of A    ustralia. "The benefit is for all - this would stimulate
more affordable energy efficient solutions for all Australians."
Ms Atkinson said Origin Energy and Lend Lease were putting together a mechanism that
would enable property developers and owners to measure the abatement from various
energy efficient measures.
"This in turn would allow them to accrue and ultimately sell those carbon credits into the
market," she said.
This would allow them to make a financial return on their investment and provide an
incentive to industry with no cost to the taxpayer.
"Even at the low rate of $8 per tonne, a large office building to five green star standards
can save 4 million kilograms of greenhouse gas emissions a year," she said.
This would come from design efficiency initiatives and be worth about $30,000 in carbon
credits. Ms Atkinson said the size of the commercial property industry meant the take-up
would inevitably lead to supply going up and the price going down.
She said cutting in half the emissions from every commercial building in the Sydney
central business district would reduce greenhouse gas emissions annually by 1005
tonnes. The cuts could be easily achieved through more efficient lighting and heating,
and cooling solutions. "It would be equivalent to taking more than 230,000 cars
permanently off the road," she said.
Ms Atkinson said the construction, operation, maintenance and demolition of buildings
contribute up to 40 per cent of greenhouse gas emissions.

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