Multiplex Europe ESG 2023 Highlights

Multiplex Europe Environmental Social Governance 2023 Highlights

| ESG Report 2023

Multiplex is a premier construction company with a simple purpose: to construct a better future.

The fundamentals of ESG have been embedded in our global business for many years. We have led conversations and actions that have evolved our business and industry, and created significant positive impact for our people, communities and environment. Our global ESG strategy consolidates those efforts, and challenges us to do more at a regional level, as detailed in this report, to achieve our purpose.

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Contents Environment Climate Action Responsible and Circular Resourcing

6 7 11

Building in Sustainability

12

Net Positive Biodiversity, Air Quality, and Water

15

People Health, Safety and Wellbeing

18 19

Diversity and Inclusion

20

Socio-Economic Value

22

Social Procurement

22

Ethical Treatment of Labour

23

Equitable Employment

24

Social Value Investment

26

Respecting Communities

27

Governance and Operational Excellence Governance and Risk Management

30 30

Resilience

31

Risks and Opportunities

32

2023 Performance Data 2023 Performance Data | Environment

44 46

2023 Performance Data | People 2023 Performance Data | Health, Safety and Wellbeing

49 50

| ESG Report 2023

01

Environment

| ESG Report 2023

Environment Our European ESG strategy features four environmental pillars, with set goals and targets. These include:

Climate Action

Responsible and Circular Resourcing

Building in Sustainability

Net Positive Biodiversity, Air Quality and Water

Collaboration is key to the success of our ESG Strategy, and we witness the enthusiasm and leadership that comes from our supply chain, our peers and our clients first hand. It is clear that our stakeholders share our commitment to climate action, and we all recognise the need to work together, on an industry wide scale, to achieve positive ends. The construction industry urgently requires a fundamental shift, and we can only bring about the transformation required by pulling together.

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Climate Action Since launching our net zero strategy, One Decade to Act: Our Pathway to Net Zero Carbon, we have delivered several innovative low carbon initiatives. The net zero conversation has continued to evolve and continues to provide a framework for how we can drive positive change within the wider built environment by working in partnership with our clients, suppliers and the industry at large.

| ESG 2023 Highlights

2023 Headline achievements

Goal 1: Zero onsite emissions by 2025

Goal 2: 50% reduction in embodied carbon intensity by 2030

Goal 3: Net Zero Carbon B by 2030

We entered an agreement to deliver an industry first Power Purchase Agreement (PPA) that will provide additional renewable energy through the delivery of a new solar facility in Norfolk. The site is expected to deliver more than 9,000 MWh of renewable energy – displacing 2,850 tonnes of carbon emissions every year.

Currently under construction, Elephant and Castle Town Centre will deliver almost 500 new homes, a new tube station and a new campus for University of the Arts London’s London College of Communication.

We successfully deliver fossil fuel free mixed-us behalf of our client, Nat part of Bankside Yards Bank and the building b performance triple glaz for tenanted areas and generation energy netw development.

We are implementing circular economy principles on site by reusing construction materials. By substituting approximately 20% of the originally planned steel with reclaimed steel, the team anticipates carbon emissions reduction of 188 tonnes.

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Goal 4: Building Operations Zero Transport Emissions by 2030

Goal 5: Zero avoidable waste by 2030

red the UK’s first se development on tive Land. Arbor forms s on London’s South benefits from high zing, smart metering connection to a fifth work across the wider

In partnership with Madigan Gill, we trialled a PPE recycling scheme at our 76 Southbank project. Nearly 3,000 items of PPE were collected, amounting to over 700kg in total. Nearly half of the items collected were reused, meaning they were cleaned, with any existing branding removed, and made ready for their next use. Most of the remaining items were recycled, with the PPE items being used for blankets, insulation, and pipe linings. For the small amount of the collections that could not be reused or recycled, they were incinerated for energy recovery.

In January 2023, we hosted the second of our Transport Taskforce sessions. Bringing together a wide range of stakeholders, the event sought to address feedback received from our first session and provide more details on the current and near term capabilities of electric commercial vehicles.

| ESG 2023 Highlights

Progress against our science-based targets Target

1

2

Progress

Reduce absolute scope 1 and 2 carbon emissions 55% by 2030 from a 2017 base year. This We reduced our Scope 1 and 2 carbon emissions by 70% compared to comprises of emissions from our 2017 base year. our purchased electricity, gas and fuel.

Key suppliers representing 95% of emissions from our purchased goods (i.e. building materials) will set a sciencebased emissions reduction target by 2023.

Key suppliers and subcontractors representing 98.8% of our emissions from purchased goods have set, or committed to setting, science-based emissions reduction targets. These suppliers and subcontractors contributed to our Scope 3 Cat 1 emissions between our base year to our current reporting period.

Committed

Target set

Combined

40.76%

38.79%

79.55%

In 2023 we reviewed the building sector specific guidance published by the SBTi. However, we identified that it does not address the challenges faced by Main Contractors to set up Scope 3 targets. We are currently in conversations with the SBTi to review our target to continue driving decarbonisation within our supply chain.

Progress against our WorldGBC Net Zero Carbon Buildings Commitment Target

1

We commit to only owning and occupying assets that are net zero carbon in operation by 2030.

Progress In 2023, we continued to report our progress to the WorldGBC Net zero Carbon Buildings commitment. Globally, we have zero owned assets and seven tenanted assets, with a total floor area of 14,816 m2 across our Australian, Canadian, and European regions combined.

Two of the nine tenanted assets make up our London and Scotland head offices. 100% of the electricity used in both European offices was supplied through a renewable energy tariff.

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Responsible and Circular Resourcing Responsible and circular resourcing remains a key pillar of our sustainability strategy. In 2023, we continued to work towards eliminating waste across all our projects, while maintaining the highest standards of responsible sourcing for procured materials. We utilise the waste hierarchy to reduce, reuse, recycle, recover, and divert waste from landfill in line with circular economy principles.

In 2023, we continued to monitor compliance with our responsible sourcing standards during project delivery. This included ensuring procured goods were responsibly sourced, included healthy materials, and featured high levels of recycled content. To ensure the best material standards, ISO 14001 Environmental Management System Certification, BES 6001 Responsible Sourcing of Construction Materials,

2023 Headline achievements

99.93% non hazardous construction waste diverted from landfill.

99.1% of the top 10 construction materials were responsibly sourced in 2023.

100% timber products were FSC or PEFC certified.

29.01% average recycled content in key construction materials.

the Programme for the Endorsement of Forest Certification (PEFC) and Forest Stewardship Council (FSC) certifications are validated by third party verification schemes.

We track responsible sourcing data across all live projects, in partnership with our supply chain. Our minimum responsible sourcing standards require timber to be either FSC or PEFC certified, and in 2023 we were once again 100% compliant with this standard, confirmed by audits of all timber deliveries received by subcontractors across our projects. Industry takeup of Environmental Product Declarations, produced in line with verifiable standards, increased again this year, with high quality, accurate carbon data improving our reporting of Scope 3 emissions in comparison to our 2022 results.

Case Study Glass recycling at New Zealand House The New Zealand House project team have partnered with Saint Gobain Glass to implement their cullet return scheme on the project. As part of the scheme, existing internal and façade glazing will be removed and stored on site, collected, and then transported to Saint Gobain’s collection centre to be processed into new flat glass. Saint Gobain estimate that every tonne of cullet collected prevents 300kg of carbon being emitted, and we anticipate that nearly 100 tonnes of glass will require removal from the building.

| ESG 2023 Highlights

Building in Sustainability ‘Building in Sustainability’ focuses on ensuring healthy and sustainable livelihoods are provided through the projects we deliver. We know that the characteristics of buildings can affect the physical and psychological welfare of the people who occupy them. This is considered throughout our operations, from the welfare provided to our supply chain, to the assets we hand over to our clients.

2023 Headline achievements In 2023, we achieved 100% of targeted sustainability assessment ratings (BREEAM, WELL, Code for Sustainable Homes).

These projects included:

One Nine Elms River Tower: Code for Sustainable Homes Level 4

The Broadway: BREEAM UK New Construction 2014 (Shell & Core) Excellent

Clarice Pears School of Health & Wellbeing: BREEAM UK New Construction 2014 Excellent

Bankside Yards Building 3: BREEAM UK New Construction 2014 (Shell & Core) Excellent

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Case Study Delivering environmental certifications globally Across our global operations, we have taken a leading role in the delivery of a wide range of sustainability assessments. Across 109 buildings, we have delivered the following:

44 12 4

46 13

162

Sustainability ratings

109

Buildings

30

PassiveHaus

2 11

Green building ratings that Multiplex has delivered

| ESG Report 2023

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Net Positive Biodiversity, Air Quality, and Water Our understanding of the intricate relationship between buildings and the natural environment continues to evolve. We are ever conscious of our impact, and the opportunities we have to improve as a business. Nature is a key pillar of our ESG Strategy, and encompasses biodiversity, water and air quality. We have clear actions in place to facilitate nature positive outcomes.

2023 Headline achievements

100% Compliance on NRMM audits.

500+ Hours of biodiversity volunteering across all our projects, which more than doubles the hours we achieved in 2022.

Joined the Air Pollution Footprint Partnership, supporting the trial of calculator tools prior to the launch.

Case Study Biodiversity Volunteering with RSPB and Idverde In 2023 we embarked on the beginning of an ongoing partnership with RSPB, the UK’s largest conservation charity, and Idverde, the UK & Europe’s leading provider of grounds maintenance and landscape services. During this time we have been restoring and replanting the Sexby Garden at Peckham Rye Park in London, and Baron’s Haugh Nature Reserve in Glasgow. We have removed the old planting and replaced it with low maintenance, perennial pollinator friendly species that will support an increase in ecological value, helping to encourage wildlife. With over 570 hours of biodiversity volunteering completed, we look forward to continuing our efforts in supporting conservation across all our projects.

A team of Multiplex volunteers starting the restoration works at Peckham Rye Park

| ESG Report 2023

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People

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| ESG 2023 Highlights

People In 2021, we launched ‘Leave No One Behind’, our ten year social equity strategy to tackle inequality and injustice in construction. Key issues addressed by our strategy include: the just transition; mental health; wellbeing; fair employment; prompt payment; modern slavery; diversity and inclusion and income inequality.

We have set goals and targets to achieve over the course of this decade, included within our strategic pillars, which are as follows:

Health, Safety and Wellbeing

Diversity, Inclusion and Respect

Socio-Economic Value

Respecting Communities

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Health, Safety and Wellbeing Our approach to health, safety and wellbeing is driven by our commitment to caring for our people, providing safe and desirable places to work where everyone feels supported. This is reflected in our ‘One life. One team’ programme, which is designed to enhance the working environment, promoting collaboration and engagement to enhance quality of delivery, safety, health and productivity across all our projects.

Multiplex is on a continuous journey to boost safety culture and standards across our business and industry. For our projects, our robust ‘Safer by Design’

strategy focuses on eliminating critical risks that will have the greatest consequences. This means working with clients to design out safety risks and design in safety controls in the early stages of projects, because we know we stand to have the most impact when we plan upfront.

For our people, we resource and promote programs to support their physical and mental health – from flexible working programs that are recognised as industry leading, to mental health first aid training that equips our people to support each other.

2023 Headline achievements

333

9

0

All

RIDDOR free projects.

Serious Safety Incidents (SSI).

Staff completed the One life. One team.

Workshop which is also part of the onboarding for all new starters.

142

154

All

Engagement ‘Time Out’ sessions were held building the culture and community on our projects.

High risk review workshops were held to ensure critical risk activities were delivered right first time.

Staff completed the mandatory mental health training, which is also part of the onboarding for all new starters.

Workplace occupational health intervention tours were conducted.

Case Study Industry Collaboration Leads to Safety Improvements In late 2022, a Mobile Elevating Work Platform suffered a malfunction whilst in use on one of our projects, which resulted in the machine destabilising, putting two operatives at risk. Following their rescue, we launched an investigation, involving the manufacturer, supplier and a representative of the International Powered Access Federation (IPAF). After extensive collaboration, the investigation concluded in 2023, and resulted in additional quality control processes at the production factory and an amendment to IPAF industry training.

| ESG 2023 Highlights

Diversity and Inclusion Our strategy is devoted to developing and retaining a workforce that reflects the diversity of the global communities in which we operate. We will achieve this by working on five strategic focus areas, including: Base, Mindset, Networks, Family and Gender Equality.

We will have a solid Base from which to monitor and measure progress. We will continue developing a Mindset that prioritises inclusion at all levels of our business, providing Networks that support all our people.

We will ensure we are a Family friendly workplace by delivering parental leave, family care, wellbeing initiatives and flexible working. We will focus on retaining female employees, facilitating their development and fostering Gender Equality in everything we do.

2023 Headline achievements We have continued promoting Multiplex Flex, our flexible working model. Results from our 2023 employee survey showed that staff felt we were a flexible employer, benefiting both the company and our people.

Our UK Women’s Network continue to support our female staff and drive initiatives to attract and retain female talent and enhance development opportunities for them.

In 2023, we piloted a high potential programme, and a larger percentage of women have met the criteria to participate.

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Case Study Multiplex’s UK Women’s Network We are committed to creating a fair and equitable high performing workplace with an inclusive culture, where everyone has the freedom and opportunities they need to succeed.

In 2020, we established the first Multiplex UK Women’s Network (UKWN) as part of our UK social equity strategy; aiming to foster a more inclusive workplace for women in our business, supporting UK leadership in understanding the current challenges female staff face, driving initiatives to attract and retain female talent and enhancing development opportunities for them.

The UKWN has led and supported significant changes in our company, winning the Women’s Network of the Year award at the 2023 London Construction Awards.

Some noteworthy achievements include:

Creating “The Good, The Bad and The Built Environment” podcast to share stories and insight from prominent female leaders and male allies in the built environment industry.

Creating a Reverse Mentoring Pilot scheme for the women of Multiplex and Senior Leadership Team.

Hosting multiple networking events with guest speakers to share knowledge, connect and empower.

Partnering with Mentoring Circle, as a lead sponsor, securing a number of Multiplex placements per year as mentees on this female led, industry leading, 12 month development programme.

Delivering a series of expert led educational workshops on Women’s Health.

| ESG 2023 Highlights

Socio-Economic Value We care about the people who bring our buildings to life. Our employees deserve to earn a living wage in a safe and respectful environment, and we are committed to ensuring legal, fair and responsible treatment of all our workers at all times. We know that we have an opportunity to maximise our impact by using our purchasing power to generate social value far beyond what we spend, which is essential to improving the livelihoods of local communities and multiplying the gains for local businesses.

Social Procurement Leveraging our supply chain relationships is key in our drive towards social procurement. Throughout the year we have continued to work on improving our payment terms and implementing our new Pre-Qualification and supply chain database system, MPartners. Our supply chain are required to be accredited with the industry led Build UK/CECA developed Common Assessment Standard (CAS), with MPartners also including specific ESG topics, emphasising to our suppliers the importance we place on ESG.

2023 Headline achievements

£80,310,195 Spent with SMEs local to our projects. 14% of our overall business spend.

£217,353,611 Spent with non local SMEs. 39% of our overall business spend.

£82,854,287 Spent with businesses local to our projects.

15% of our overall business spend.

Further reduced the average time to pay our supply chain by 9 days to 30 days.

Case Study University of Glasgow’s Meet the Buyer The University of Glasgow team held a Meet the Buyer event in preparation for the University’s Keystone building, construction due to commence Q4 2024. The event was very well attended by local businesses and demonstrated the market demand to work on the next phase of the Campus Development programme; with Multiplex having already successfully delivered four buildings on behalf of the university.

Presentations from the Client, Project Managers, and our team provided an overview of the scheme, highlighting some of the key social value deliverables.

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Ethical Treatment of Labour Construction is consistently ranked as one of the industries with the highest risk of modern slavery. At Multiplex, we want to be known as a great company to work with and for. That is why one of the pillars of our social equity strategy focuses on the ethical treatment of our labour force, ensuring that all those working on our sites and within our broader supply chain is treated with the fairness and dignity that everyone deserves.

2023 Headline achievements Achilles completed our biannual site engagement audits across all sites, with nearly 1,000 interviewed.

Hosted Nutral’s roundtable event, discussing how all value chain members can help support ethical employment across the workforce.

Completed 3rd party employment practices audits for our logistics & security supply chain partners.

Recorded a case study video for Supply Chain Sustainability School on Worker Voice & Ethical Labour Case Study: Multiplex Construction Europe.

Case Study University of Liverpool’s research: Modern slavery and the construction sector In 2023, eight members of our operational staff volunteered to support research being carried out by the University of Liverpool on modern slavery in the construction industry. The research used an innovative photo-elicitation methodology, in which Multiplex staff were asked in the weeks prior to an interview to take a photograph on their smartphone whenever they encountered something that prompted them to think about modern slavery. The photographs taken were then used as the basis for the interview, with our staff having the opportunity to explore their understanding of modern slavery and how it related to their work.

Eight major construction companies participated in the research, with approximately fifty interviews. The findings from the research have been used in a followup impact and engagement project, sharing relevant findings and facilitating improvements in practice within the sector.

| ESG 2023 Highlights

Equitable Employment As part of our ongoing commitment to attracting diverse talent to our business and the industry, a continued focus area for 2023 was the provision of work placements across our projects. We prioritised partnerships with organisations that champion typically under represented groups found in construction, including those from low income households and individuals from ethnic minorities.

To deliver these placements, we worked closely with schools, colleges, universities, and charities as well as local authorities and training providers to offer opportunities for candidates across all disciplines. We want to make sure we play our part in diversifying the workforce to help build a more sustainable and resilient construction industry of the future.

2023 Headline achievements

133

89

11

New entrant roles and new apprentices were placed across our sites.

Work experience placements were hosted across our projects.

Graduates were hosted across our projects.

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Case Study Build your own house Our commitment to supporting neurodiversity in the workplace is championed through our bespoke Neurodiverse Work Experience Programme. We created a ten week virtual learning programme with the brief: ‘build your own house.’

During the programme students heard from a wide range of our staff, including some with neurodiverse conditions themselves, such as autism, Attention Deficit Hyperactivity Disorder (ADHD) and dyslexia, who shared their career routes into construction, and challenges they have overcome in the workplace since. Students showed great engagement and commitment throughout the ten week period and presented their achievements to the team at the end of the programme. They also attended a group site visit, a brilliant opportunity to experience a live construction project.

Since the pilot, we have successfully run an additional in person Neurodiverse Work Experience Programme at our One Leadenhall project, in partnership with The Courtyard School. This has been a positive step towards raising awareness, fostering an open dialogue and building confidence with supporting neurodiversity of all levels within the workplace.

We are proud to say that our initiative received formal recognition: • Council for Tall Buildings and Urban Habitat (CTBUH) “Award of Excellence” in the Equity, Diversity & Inclusion category, October 2023.

• Shortlisted for the London Construction Awards in the Diversity & Inclusion category, September 2023.

• Considerate Constructors Scheme (CCS) Leading Lights Awards winner, November 2023.

| ESG 2023 Highlights

Social Value Investment For transparent, robust, and accurate reporting, we partnered with Social Value Portal to complete a full retrospective measurement of our live projects to demonstrate the total local and social economic value that we have invested back into our communities. Our data is verified by Social Value Portal on a quarterly basis by a qualified economist. This platform also allows us to demonstrate how our achievements align with the National TOMs (Themes, Outcomes, Measures) Framework and the UN Sustainable Development Goals (SDGs).

2023 Headline achievements

£1,350,454,415.46 of social and local economic value delivered to date, and validated by Social Value Portal.

When launching our Social Equity Strategy, Leave No One Behind, in December 2021, we identified seven of the UN Sustainable Development Goals (SDGs) that we believed were particularly relevant to the social value commitments we set out within our ten year strategy. Through Social Value Portal, we identified our estimated contribution towards each of those UN SDGs. These figures are based on mapping via the Portal which takes into account whether the beneficiaries of the TOMs interventions (our recorded outputs) mirror what the SDGs are aiming to achieve, and whether the measurable contribution of the TOMs would directly impact the progress of the Global Goals indicators.

Social and Local Economic Values:

£12,537

£39,574

£9,925

£41,907

£26,177

£12,189

£49,209

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Respecting Communities We are proud to be a responsible contractor, and we know that driving meaningful and inclusive engagement whilst providing long term support to the communities in which we work is critical to our wider ESG approach.

2023 Headline achievements

£232,616

61

Was raised in total for charity.

community engagement events were held.

58

3,969

education engagement events organised.

students engaged with through our projects.

925

15

members of the community engaged.

diversity and inclusion events organised.

45

4,047

Average Considerate Constructors Scheme across our projects.

hours of volunteering completed.

Case Study Plan Zheroes volunteering In 2023, we discovered Plan Zheroes, a local charity that redistributes surplus food from Borough Market to local homeless shelters and foodbank charities. We have been volunteering with them on a regular basis, diverting good quality food away from landfill and instead making sure it reaches those who need it most.

We are proud to say that many of our project teams have gladly volunteered their support so far, with future opportunities to get involved in the pipeline.

| ESG Report 2023

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Governance & Operational Excellence

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| ESG 2023 Highlights

Governance and Operational Excellence Governance and Risk Management The committee of highest governance within Multiplex Construction Europe is the European Senior Leadership team (SLT). The SLT is responsible for the development, approval, and updating of the organisation’s strategies, policies, and goals related to economic, environmental, and social topics. This is done in conjunction with the Global Leadership Team who manages all Multiplex organisations.

In relation to climate-related risks and opportunities, the SLT, who meet twice a week, are responsible for the following:

The SLT includes the following management personnel:

• •

• • • • • • • • • • • •

The SLT and management teams are critical in ensuring the business addresses all climate related risks and opportunities that are essential to the business. There are two key management teams: the Sustainability function and project operations. The Sustainability function are responsible for assessing issues and developing plans while the project operational teams are responsible for implementing those plans, monitoring progress and feeding back to the Sustainability function.

Technical Director Finance Director Operations Director Regional Director Regional Directors - Operations Head of Sustainability Health, Safety and Wellbeing Director Head of Legal Human Resources Director Head of Engineering Legal Director Managing Director (Chair)

• • •

Keeping informed of climate related issues; Assessing climate-related issues to identify those that are material to the business; Developing goals, targets and action plans to address the climate-related issues; Managing the implementation of action plans; Monitoring and reporting progress against the goals and targets.

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Resilience To assess the resilience of the business strategy and model, two climate scenarios were applied to determine potential impacts. These scenarios have been aligned to pathways adopted by the IPCC for their Fifth Assessment Report (AR5) and are referred to as Representative Concentration Pathways (RCPs).

The RCPs are projected models developed to represent different possible warming outcomes at the end of the century.

Firstly, we considered a scenario consisting of a sharp and immediate decrease in global emissions. In this scenario decarbonisation efforts within the value chain and more generally across the global north are realised in the short to medium term in line with the Paris Agreement. This scenario is aligned with Representative Concentration Pathway (RCP) 2.6, where the average change in global mean surface temperatures (compared to the pre industrial period) is 1.6 degrees Celsius between 2081-2100. This scenario is defined by the following characteristics: • • •

Consistent and joined up policy development Climate conscious customer behaviour Rapid decarbonisation of the grid

A secondary scenario, equivalent to the highermedium (RCP6.0), has also been considered in determining the resilience of the business. In this scenario the global carbon emission profile plateaus in the 2030s, thereafter rising until mid century before decreasing in the final decades of the century. In this scenario global mean temperatures rise on average by 2.8 degrees Celsius.

In assessing the risks and opportunities against these scenarios it is evident that the transition risks are most prevalent under the ‘RCP2.6’ scenario and conversely the physical risks more so under the ‘RCP6.0’ scenario. It is however recognised that the acute impacts of climate change are already being experienced and require consideration within short term business planning.

| ESG 2023 Highlights

Risks and Opportunities Management have identified climate-related risks and opportunities up to 2030 as the short to medium term given that this timeframe represents the design & construction lifecycle of current business operations, and 2030 to 2050 as the long term.

Across these timeframes, key transition risks, physical risks and opportunities relating to climate change have been identified. Transition risks are those associated with the transition to a lower carbon economy, whilst physical risks are those relating to the physical impacts of climate change. Management have also assessed the impacts as well as the measures that can be taken to mitigate risks and capitalise on opportunities.

Transition risks Risk

Impact

Mitigation

Time period

Inability to sufficiently resource projects and achieve accelerated programmes

Promote and monitor upskilling and knowledge transfer of supply chain

Short to medium term

Likelihood Severity RCP2.6 RCP6.0

Policy and Legal Expedient changes to environmental policy, resulting in a shortage of key skills within the immediate labour pool

Multiplex Transport Taskforce Increased supply to monitor chain costs Stricter policy forthcoming associated measures regarding policy measures with non-road air quality (i.e. Nonand engage plant, vehicles Road Machinery supply chain with and equipment, Regulations & Low allowance made emphasised by Emission Zones) within tender limited availability to enquiries for service projects requisite plant specifications Develop low carbon specifications Inflation of tender Increased taxation and continued pricing to account of carbon intensive development of for increased products strong and diverse product costs supply chain relationships

Short to medium term

Short to medium term

Key: Lower likelihood/impact

Higher likelihood/impact

33

Risk

Impact

Increased taxation of carbon intensive energy supplies

Increased costs of energy costs, resulting in additional prelim costs and risk of uncompetitive pricing

New build by exception only policy

Limited newbuild market opportunities

Mitigation

Time period

Likelihood Severity RCP2.6 RCP6.0

Energy management processes to reduce demand, specification Short to of renewable medium term energy tariffs and introduction of Power Purchase Agreement (PPA) Increasing business capacity to respond Long term to retrofit market opportunities

Technology

Potential cost uplift for low emission technology and products

Inflated tender pricing and uncompetitive in market

Unavailability of low emission technology in the market Market

Inability to meet Client and/or local authority requirements

Maintain technically-led approach, using carbon hierarchy to ‘design-out’ carbon impacts and minimise exposure to ‘procuring-out’ carbon Use of early project appointments to facilitate supply chain engagement

Products that have historically been used to reduce the embodied carbon of structural solutions have carbon intensity factors significantly increased to reflect commoditisation

Use of alternative low carbon solutions such as calcined clays or other structural solutions including CLT/steel hybrid to meet project environmental targets

Commoditisation of by products from carbon intensive industry, specifically Ground Granulated Blast furnace Slag (GGBS)

Short to medium term

Short to medium term

Short to medium term

Key: Lower likelihood/impact

Higher likelihood/impact

| ESG 2023 Highlights

Risk

Impact

Mitigation

Time period

More stringent client requirements reflected with increasing environmental outcomes specified within contracts

Potential for increased risk and financial penalties associated with the delivery of environmental outcomes

Thorough examination of contract requirements and utilisation of early engagement to seek clarifications and minimise exposure

Short to medium term

Expectations set by industry bodies for the market, e.g.

UKGBC, LETI, BBP

Impracticable environmental deliverables on the balance of other project factors such as cost, programme and quality

Ongoing industry engagement to champion a managed transition to a low carbon economy

Short to medium term

Public expectations of the construction industry Inability to attract and general and retain talent stigmatisation of within the business the construction sector

Strong ESG leadership and active participation from staff

Short to medium term

Ambitious ESG strategies and transparent disclosure

Short to medium term

Likelihood Severity RCP2.6 RCP6.0

Reputation

Market expectations and increased stakeholder concern, e.g. local communities

Reduced revenue as a result of negative market perception, lack of confidence from supply chain and challenging planning landscape

Key: Lower likelihood/impact

Higher likelihood/impact

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Physical risks Risk

Impact

Mitigation

Time period

Reduced revenue from decreased production capacity, e.g. concrete curing, tower crane operation, rainwater drainage, material deliveries, workforce productivity (onsite and absenteeism)

Climate change adaptation appraisals during the development of construction methodologies at tender stage

Short to medium term

Increased operating costs, e.g. more drainage mechanisms, tower crane operation, increased heating/ cooling in offices and welfare

Use early project engagement to optimise operating plans and technological solutions to minimise peak energy demand

Short to medium term

Buildings unfit for use in the future, e.g. unsuitable MEP for temperature conditions, unsuitable drainage for change in precipitation and increased flooding

Climate change adaptation appraisals during design development at tender stage

Long term

Likelihood Severity RCP2.6 RCP6.0

Acute/abrupt

Increased severity of extreme weather events

Chronic/gradual Global temperature rise, resulting in changes in precipitation patterns and extreme variability in weather patterns

Key: Lower likelihood/impact

Higher likelihood/impact

| ESG 2023 Highlights

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Opportunities Opportunity

Impact

Improved resource efficiency in construction operations including reducing, reusing and recycling waste and water

Reduced operating costs, e.g. reduced energy use, reduced waste processing

Use of renewable energy sources, new technologies, and a shift toward decentralised energy generation

Increased reliability of energy supply and reduced exposure to future fossil fuel price increases

Access to new markets, e.g. low carbon projects

Increased production capacity resulting in increased revenue

Development of low embodied carbon building materials and net zero emission services

Increased workbook resulting in increased revenue, continued compliance with policies and legislation

Adoption of energy efficiency measures and construction methodologies

Increased production capacity resulting in increased revenue, increased reliability of supply chain

Mitigation • One decade to act: Our Pathway to Net Zero Carbon • Supply chain contracts • Tender pricing • ESG Supply Chain Charter • Environmental Management System • Involvement with industry bodies • Work winning process • Engagement with design teams and supply chain

| ESG 2023 Highlights

SASB: Engineering & Construction Services Table 1. Sustainability Disclosure Topics & Accounting Metrics

Category

Unit of Measure

Code

Number of incidents of non compliance with environmental permits, standards, and regulations environmental permits, standards, and regulations in 2023.

Quantitative

Number

FEN160

Discussion of processes to assess and manage environmental risks associated with project design, siting, and construction.

Discussion and Analysis

N/A

FEN160a

Amount of defect and safety related rework costs.

Quantitative

Reporting currency

FEN250

Total amount of monetary losses as a result of legal proceedings associated with defect and safety related incidents.

Quantitative

Reporting currency

FEN250a

Workforce Health and Safety

(1) Total recordable incident rate (TRIR) and (2) fatality rate for (a) direct employees and (b)contract employees.

Quantitative

Rate

FEN320

Lifecycle Impacts of Buildings Infrastructure

Number of (1) commissioned projects certified to a third party multi attribute sustainability standard and (2) Quantitative active projects seeking such certification.

Number

IFEN410

Topic

Environmental Impacts of Project Development

Structural Integrity and Safety

Accounting Metric

39

Response

e

0a.1

a.2

0 incidents of non compliance

Multiplex operate an ISO 14001:2015 certified Environmental Management System (EMS), helping to ensure consistency of delivery across our projects.

A central part of our EMS is the development of an Environmental Sustainability Management Plan for each site. This live document outlines the project specific environmental risks and controls, and is communicated within the project team.

This is supported by our Environmental Responsibilities Training, which is delivered by our project-based sustainability team.

0a.1

Not currently recorded.

a.2

1) £0

0a.1

1a) Accident Frequency Rate: 0.14 2a) 0 2b) 0

0a.1

Number of commissioned projects with a third party sustainability standard: In 2023, 4 projects achieved their sustainability assessments (see Building in Sustainability) As of 31 December 2023, projects that were seeking such certification: 1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

One Exchange Square One Leadenhall 30 Grosvenor Square 311-345 Argyle Street 65 Davies Street 76 Southbank Elephant and Castle Town Centre One Nine Elms University of Glasgow – Adam Smith Business School (completed) Bankside Yards Building 2

| ESG 2023 Highlights

Topic

Lifecycle Impacts of Buildings Infrastructure

Climate Impacts of Business Mix

Business Ethics

Accounting Metric

Category

Unit of Measure

Code

Discussion of process to incorporate operational phase energy and water efficiency considerations into project planning and design.

Discussion and Analysis

N/A

IFEN410

Amount of backlog for (1) hydrocarbon related projects and (2) renewable energy projects.

Quantitative

Reporting currency

IFEN410

Amount of backlog cancellations associated with hydro-carbon related projects.

Quantitative

Reporting currency

IFEN410

Amount of backlog for non energy projects associated with climate change mitigation.

Quantitative

Reporting currency

IFEN410

(1) Number of active projects and (2) backlog in countries that have the 20 lowest rankings in Transparency International’s Corruption Perception Index.

Quantitative

Number, Reporting currency

IFEN510

Total amount of monetary losses as a result of legal proceedings associated with charges of (1) bribery or corruption and (2) anti competitive practices.

Quantitative

Reporting currency

IFEN510

Description of policies and practices for prevention of (1) bribery and corruption, and (2) anticompetitive behaviour in the project bidding processes.

Discussion and Analysis

N/A

IFEN510

41

Response

e

0a.2

We utilise our supply chain partners to develop our client offering, enabling us to put forward opportunities for energy and water efficiencies.

When appointed on the project, we work closely with the existing design team, using frameworks such as BREEAM, to benchmark the building’s performance and to seek further opportunities for improvement.

Our digital capabilities also enable us to take a systems approach, which in turn facilitates decision making and end user operations.

0b.1

(1) £0 (2) £0

0b.2

£0

0b.3

£0

0a.1

None

0a.2

1) £0 (2) £0

0a.3

https://www.multiplex.global/media/4anh21l4/codeofbusinessconductandethics2021.pdf https://www.multiplex.global/media/tayg1jzi/210208_antibriberycorruptionpolicy_final.pdf

| ESG 2023 Highlights

Table 2. Sustainability Disclosure Topics & Accounting Metrics Accounting Metric

Category

Unit of Measure

Code

As of 3

Number of active projects

Quantitative

Number

IFEN000.A

1.

2.

3.

4.

5.

6.

7.

8.

In 202

Number of commissioned projects

Quantitative

Number

IFEN000.B

1.

2.

3.

We ha contra Total backlog

Quantitative

Number

FEN000.C

As of 3

43

Response

31 December 2023 Multiplex Construction Europe had 8 live projects.

One Exchange Square One Leadenhall 30 Grosvenor Square 311-345 Argyle Street 76 Southbank Elephant and Castle Town Centre One Nine Elms Western Yards Building 2

23 we secured three main contracts: 76 Southbank One Exchange Square Bankside Yards – Building 2

ave secured other PCSA’s on commercial and higher education schemes and aim to convert these PCSA’s into main acts during 2024.

31 December 2023 Multiplex Construction Europe construction revenue backlog stood at £1.1 billion.

| ESG Report 2023

04

2023 Performance Data

45

| ESG 2023 Highlights

2023 Performance Data | Environment Climate Impact Carbon Footprint (Scope 1, 2 & 3) 2022 Scope Sources Breakdown

2023

Emissions (tCO2e)

Carbon per £100k spend (tCO2e/£100k)

Emissions (tCO2e)

Carbon per £100k spend (tCO2e/£100k)

Scope 1

Purchased fuel and gas

753

0.14

576

0.12

Scope 2

Purchased electricity

46

0.01

443

0.09

50,105

9.18

43,770

9.33

934

0.17

727

0.15

2,183

0.40

1,400

0.30

674

0.12

1,061

0.23

694

0.13

709

0.15

953

0.17

804

0.17

0

0.00

0

0.00

33,412

6.12

3,441

0.73

722

0.13

63

0.01

89,677

16.42

51,975

11.07

90,476

16.57

52,994

11.28

Scope 3

[Cat.1] Embodied carbon and subcontractor fuel [Cat.3] T+D of Multiplex electricity and WTT for all fuel [Cat.4] Material deliveries to site [Cat.5] Waste generated on site [Cat.6] Business travel [Cat.7] Employee commuting and home working [Cat.8] Gas and electricity not bought by Multiplex [Cat.11] Projected completed buildinguse [Cat.12] End of life treatment of completed buildings Scope 3 Total

Total (Scope 1, 2 and 3)

We record electricity, fuel, transport, waste and material information on all our sites, and we use this information to calculate our total carbon footprint inventory. Our carbon inventory follows the Greenhouse Gas Protocol Corporate Standard and has been consolidated based on financial control. The unit used is CO2e (carbon dioxide equivalent). We have taken a market-based approach to determine the carbon footprint of our electricity consumption and use the Inventory of Carbon & Energy (ICE) from the University of Bath to determine the embodied carbon of our building materials. We use the Energy Performance Certificates of the buildings completed each year to forecast operational carbon emissions. We apply an emission uplift factor of 85%, as recommended by Innovate UK, to address the widely recognised gap between designed energy consumption and actual energy consumption. We assumed a building’s lifetime lasts 60 years, and we account for the UK government’s emissions projection for electricity over this timeframe.

On One Leadenhall, Multiplex has been engaged in a Construction Management (CM) role, thus limiting the operational and financial influence we have. While we continue to track the carbon data for the development, in line with the GHG protocol, the data is not allowed in the above table.

47

Responsible Sourcing and Circular Economy Non Hazardous Waste Produced

Tonnage of Non Hazardous waste by Disposal Route (t/£100K spend)

Year

2022

2023

Year

2022

2023

Tonnage produced (t)

242,939

176,269

Reused (t/£100k)

5.58

0.40

Tonnage produced per £100k spend (t/£100k)

44.53

37.57

Recycled (t/£100k)

33.28

33.03

% diverted from landfill

99.98%

99.93%

Recovered (t/£100k)

5.66

4.11

Landfilled (t/£100k)

0.01

0.03

Hazardous Waste Produced Year

2022

2023

Hazardous and Non hazardous waste reporting covers excavation, construction and demolition phase.

Tonnage produced (t)

8.69

10.52

Tonnage produced per £100k spend (t/£100k)

0.002

0.002

Hazardous and Non hazardous waste is reported in tonnage due to the increase in tonnagereporting projects in 2023. Converting waste data from volume to tonnage is more accurate than tonnage to volume.

% diverted from landfill

18.77%

33.49%

| ESG 2023 Highlights

Responsible Sourcing Total Volumes m3 (2022)

Total Volumes m3 (2023)

2022 (%)

2023 (%)

Aggregate

772

250

100

100

Brick

28

20

100

100

Concrete (InSitu and Precast)

50,235

47,092

100

100

Concrete Blocks

1,342

1,067

72.3

100

Glass

755

888

99.2

99.9

Insulation

4,406

4,867

97.84

92.3

Plasterboard and Plaster

6,253

6,617

100

100

Steel Rebar

994

1,371

100

100

Structural Steel

816

827

100

98.5

Timber

2,619

3,717

100

100

Total Volumes and Average %

68,223

66,720

96.93

99.1

Key Material Type

The information in the table above is taken from our Metrics Environmental Reporting system, based on the Building Research Establishment’s online SMART Waste platform. The materials certifications are independently certified ISO 14001 Management Systems, BES 6001 certifications, CARES, EcoReinforcement and FSC or PEFC for timber.

Net positive biodiversity, water, and air quality Onsite water consumption

Onsite groundwater or trade effluent discharged to public sewer

Year

m3/£100K spend

Year

m3

2022

7.7

2022

27,112

2023

13.1

2023

8,706

We use water in our offices and welfare facilities, as well as on our sites for various purposes, including construction activities, commissioning, cleaning and dampening down dust. We usually consume water through the main water network. We record water consumption on all our sites, and whilst our water consumption is relatively low, we continue to drive for water minimisation and management through our processes and systems, and employee engagement initiatives.

We measure the discharge volume of groundwater and trade effluent on all our sites and report this information to the relevant water regulatory body, where applicable. To manage the quality of our effluent discharge, we align with the minimum standards of the relevant water regulatory body. These standards often stipulate requirements for the content, pH and volume rate of the discharge.

49

2023 Performance Data | People Organisational profile – Information on employees and other workers Total number of employees by employment contract (permanent and temporary), by gender:

Total number of employees by employment type (full time and part time), by gender:

Male

Female

Male

Female

Permanent

546

181

Permanent

546

181

Temporary

3

6

Part time

4

13

Temporary part time

0

0

Total number of employees by employment contract (permanent and temporary), by region: Male

Female

London

460

158

Scotland

36

13

Peterborough

53

16

*Data extracted from online Human Resources (HR) system “Workday” Most activities conducted on Multiplex Construction Europe’s construction sites are undertaken by subcontractor workers.

| ESG 2023 Highlights

2023 Performance Data | Health, Safety and Wellbeing Headline Safety Data 2023 Total hours

AFR

RIDDORS

LTIs

0.01

1

14

Accident Frequency Rate

RIDDOR

Lost Time Injury

2022

0.14

10

22

2023

0.01

1

14

Incident Classification

Type of Incidents

8,444,183

Accident Frequency Rate Year

Serious Potential Incident (SPI) 2023 Incident Classification

Type of Incidents

Incident Classification

Type of Incidents

Electrical

1

Falling objects

3

Lifting Operation

2

Unintentional Release of Pressure Working with Temporary Works

TOTAL SPI

1 1

9

Physical Health Data 2023 Project

Type of RIDDOR

Count of Incidents

Location of Injury

65 Davies Street

Specified Injury

1

Left hand

51