an environmental, social & governance update · the four pillars of building a better tomorrow...

An Environmental, Social & Governance update

August 14, 2019

© 2019 Jones Lang LaSalle IP, Inc. All rights reserved. 2

Cautionary note regarding forward-looking statements

This presentation, and other statements that Jones Lang LaSalle Incorporated (“JLL”) may make, may contain forward-looking

statements within the meaning of the Private Securities Litigation Reform Act of 1995, with respect to JLL’s future financial or business

performance, strategies, or expectations. Forward-looking statements are typically identified by words or phrases such as “trend,”

“potential,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,”

“outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as

“will,” “would,” “should,” “could,” “may,” and similar expressions. Forward-looking statements in this presentation may involve, without

limitation, known and unknown risks, uncertainties, and other factors which may cause JLL’s actual results, performance, achievements,

plans and objectives, to be materially different from those expressed or implied by such forward-looking statements. Important factors

that could cause actual results to differ from those in our forward-looking statements include, without limitation: 1) the effect of political,

economic and market conditions and geopolitical events, 2) the logistical and other challenges inherent in operating in numerous

different countries, 3) the actions and initiatives of current and potential competitors, 4) the level and volatility of real estate prices,

interest rates, currency values and other market indices, 5) the outcome of pending litigation, and 6) the impact of current, pending and

future legislation and regulation. Any forward-looking statements speak only as of the date of this presentation, and except to the extent

required by applicable securities laws, we expressly disclaim any obligation or undertaking to publicly update or revise any forward-

looking statements contained herein to reflect any change in our expectations or results, or any change in events. We caution investors

not to rely unduly on any forward-looking statement and urge you to carefully consider the risks described in our Annual Report on Form

10-K for the year ended December 31, 2018, our Quarterly Report on Form 10-Q for the quarter ended March 31, 2019, our Quarterly

Report on Form 10-Q for the quarter ended June 30, 2019, and other reports and documents filed with the Securities and Exchange

Commission.

JLL issued its tenth annual sustainability report


Key highlights

• Helped clients achieve a record 254 sustainable building certifications, covering over 98 million sqft

• Highly diverse Board of Directors with representation from all three geographic regions; set a target, linked to executive compensation, to increase the gender balance of our leadership population in our eight largest countries by 2021

• At 39%, on track to achieve goal of 100% sustainability certified of JLL’s offices larger than 10,000 sqft by 2030

• JLL staff donated a record 12,245 days to charitable causes in their communities

REINCARNATION

by Erika Wildash 2019

Recycled cardboard and photographs

A series of works created by recycling materials, commissioned by JLL for MIPIM 2018. Using

old discarded boxes, corrugated cardboard and collaged photography to depict people within an

everyday urban environment. The remnants of the recycled packaging and labels evoke the

patina of a cityscape while the corrugated cardboard amplifies the perspective and scale of the

city and the person.

The four pillars of Building a Better TomorrowThe foundation for everything we do is governance & ethics, thought leadership and innovation


• Develop leaders at all levels & create a culture where people inspire each other

• Embrace diversity & promote inclusion, improving gender balance of leadership by 2021

• Promote employee health & wellbeing

• Ensure the highest levels of health & safety for our people, clients and partners

• Apply the highest standards of sustainability and well-being in our own offices

• Set a Science Based Target for carbon reduction

• Reduce business travel through use of sustainable alternatives

• Ensure consistency of approach to sustainable procurement process and ambitions

• Actively encourage & enable employee volunteering

• Forge global & local charitable partnerships aligned to JLL’s identified SDGs

• Embed sustainability in core real estate services

• Provide expert energy & sustainability services and solutions

• Enhance the performance of our clients’ investments in LaSalle sustainable property investing

• Drive sustainability in procurement undertaken on behalf of clients

Status of targets

© 2019 Jones Lang LaSalle IP, Inc. All rights reserved.5

• Improve gender balance of leadership in our 8 largest countries by revenue by 2021 – ON TRACK, 16% in 2018

• Identify challenges & provide targeted solutions to the attrition of employees by 2019 – ON TRACK

• Drive prompt reporting of incidents and ensure that employees in all corporate offices are consulted on health and safety – ON TRACK

• Reduce employee lost time injury frequency rate by 10% off of the two prior performance periods by 2020 – ON TRACK, 9% reduction in 2018

• Reduce building-related emissions & energy consumption per corp. Office employee by 2% annually from ‘17 to ‘19 – ACHIEVED

• Occupy only green certified space over 10,000 sqft by 2030 – ON TRACK, 39% to date

• Set a science-based target for energy and resource use, resulting in 100% renewable energy – ON TRACK

• Increase the time our employees spend volunteering year on year, with an aim of reaching 15,000 days by 2020 – ON TRACK, 12,245 days in 2018, a 47% increase over 2017

• Incorporate sustainability basics into JLL onboarding for new hires by 2020 – ACHIEVED

• Deliver targeted training to employees from key business lines by 2020 – ON TRACK

• Establish a process for gathering and reporting on emissions reduction with and through our clients for execution in 2020 – ON TRACK

© 2019 Jones Lang LaSalle IP, Inc. All rights reserved.

What we’re hearing from our stakeholders

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Expand client sustainability engagement to maximize impact and generate business value

Proactively educate and engage clients

Use JLL’s influence to advocate for change of “broken systems”, e.g., waste management, circular economy, etc.

Take an active approach at the building manager level through to the broad corporate level

Stakeholder engagement


Expanding transparency and investor engagement

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1. Adopting SASB and TCFD reporting guidelines

2. ESG-focused webinar

3. Sponsorship of GreenMoney Built Sector edition

4. SRI conference participation

“Increasing transparency makes markets more efficient, and economies more stable and resilient.”

—Michael R. Bloomberg, Chair

The Taskforce on Climate-related Financial Disclosure

SASB demonstrates to investors the financial value and

impact of sustainability

• Adoption of the SASB principles continues to grow with strong uptake in the real estate industry

• JLL identifies the Real Estate Services SASB standard as applicable to its operations

• We will publish our first SASB disclosure based on 2018 reporting, responding to both the Accounting and Activity Metrics

• While unable to respond to all of the points at present, we are working towards clarifying the disclosures and hope to present a full disclosure in the future


The Sustainability Accounting Standards Board (SASB)


SASB Real Estate Services disclosure metrics

Topic Code Metric

Sustainability Services IF-RS-410a.1 Revenue from Energy and Sustainability Services.

IF-RS-410a.2 (1) Floor area and (2) number of buildings under management provided with energy and sustainability services.

IF-RS-410a.3 (1) Floor area and (2) number of buildings under management that obtained an energy rating.

Transparent Information &

Management of Conflict of Interest

IF-RS-510a.1 Brokerage revenue from dual agency transactions.

IF-RS-510a.2 Revenue from transactions associated with appraisal services.

IF-RS-510a.3 Total amount of monetary losses as a result of legal proceedings associated with professional integrity, including

duty of care.

Activity Metric Code Activity Metric

Activity Metric IF-RS-000.A Number of property management clients, categorized by: (1) tenants and (2) real estate owners.

Activity Metric IF-RS-000.B Floor area under management with owner operational control.

Activity Metric IF-RS-000.C Number of buildings under management with owner operational control.

Activity Metric IF-RS-000.D Number of leases transacted, categorized by (1) tenants and (2) real estate owners.

TCFD supports the assessment, pricing and management of

climate risk, and is structured around four thematic areas that

represent core elements of how organizations operate:


The Task Force on Climate-Related Financial Disclosures (TCFD)


The TCFD journey

To date• Agreed to adopt the TCFD framework in June 2019

• Established core working team

Next steps• Determine reporting options

• Geographically based

• Line of business based

• Limit to physical risks and opportunities; evaluate transitional risks secondly

• Select a single scenario

• Agree third-party partner

Considerations• Resource allocation

• Assessment of non-linear, longer range risks

• Application to our supply chain

To date

• Completed data management plan

• Evaluated & agreed energy platform

• Established baselines for Scopes 1, 2 & 3; client emissions represent 96% of Scope 3

Next steps

• Develop targets for Scopes 1, 2 & 3

• Create country-level delivery plans for 8 largest countries

• Present recommendations to JLL Global Executive Board

• Gain approval by SBTi

Challenges

• Data integrity & collection

• Potential cost implications

• Gaining client concurrence

Setting & achieving a Science Based Target


24Real Estate companies

committed

230+Companies with targets set

590+Further companies

committed


Leveraging the Sustainable Development Goals for action

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Identified the significant impacts for each business unit and mapped the most relevant SDGs based on the greatest potential impact, resulting in six SDGs of focus

JLL Project & Development Services – example in action

• Waste reduction / circular solutions for JLL and our clients

• Reduce site and construction waste

• Develop site waste management prequalification criteria via supply chain platform

• Create new offering re: resource efficient / circular service

Lead by example

• Develop standards for JLL corporate office fitouts

• Trial a zero-waste fit out; bring learnings to our clients


Clients case study Majid Al Futtaim

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Challenge:

Devise and implement long-term carbon and water reduction strategy

Solution:

• Assess the full extent and impact of MAF operations over 15 countries and 10+ business lines

• Performed site energy audits, training courses, tracked initiatives

• Created training courses for senior executives and business leaders

• Developed key action plan for 2019 to ensure forward momentum

Results:

• Set energy and water efficiency targets across every site to start driving reductions in carbon emissions and water use

• Develop & execute the business plans for the transformative changes needed to meet the net positive ambitions


Workplaces case studyJLL Brisbane Headquarters

15

Challenge:

Improve JLL Brisbane’s sustainability rating without any additional cost to the project

Solution:

Utilize all in-house expertise and engage a wide range of employees from across the business

Results:

The office was upgraded from a 5-star Green Star Design space to a 6-star rating, the highest in Australia

• 63% reduction in energy consumption compared to the previous office tenancy

• 67% reduction in lighting intensity from the Australian standard

• Reconciliation Action Plan for indigenous awareness

• Reduction of construction demolition waste to just 2.04 kg per square meter


Richard Batten, Chief Sustainability Officer

Cynthia Curtis, SVP Sustainability Stakeholder Engagement

Karen Samhat, SVP Investor Relations

[email protected]

an environmental, social & governance update · the four pillars of building a better tomorrow...

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