Greater alignment with The International <IR> Framework

Building on the Strategy 2020 Project and as an important part of our Integrated Reporting approach, in 2014 we proceeded to identify and interrogate a number of additional medium- to long-term global mega-trends with the potential to impact materially upon our business. Using the ‘six capitals’ model advocated by the International Integrated Reporting Council, this review encompassed a strong focus on non-financial trends, as potential future challenges and opportunities were identified across all six capitals (financial, human, intellectual, manufactured, social and natural).

While JLL is most heavily dependent on financial, human and intellectual capital in order to execute its own operations, significant trends were identified with implications for our business across all six capitals. Furthermore, changes in the availability of all six capitals’ stocks impact our clients’ businesses, and by extension, our service provision. Through internal consultation, 21 trends were identified as being significant for the business in the medium- to long-term. All of these ‘‘Global Trends’’ which we are tracking and/or actively managing are illustrated in the table below. The ‘‘JLL Activities’’ which address these trends are summarized in the table below primarily via a combination of references to (1) sections within Items 1 and 1A in this Form 10-K and (2) resources we publish on our website where relevant points are discussed in more detail.

 

Type of Capital Global Trends JLL Activities
Financial Continued risk of financial crises Maintaining our financial strength as a differentiator; Financial Risk Factors

Enterprise Risk Management; External Market Risk Factors
Potential increase in disruptive market cycles Enterprise Risk Management; External Market Risk Factors; Financial Risk Factors
Shift towards emerging markets G1: Build our Leading Local and Regional Service Operations

Strategy 2020 focus on potential growth markets and cities
Regulatory reform in banking & other sectors Enterprise Risk Management; Internal Operational Risk Factors
Growth increasingly dependent on productivity gains Strategy 2020 focus on productivity
Global push against tax avoidance Enterprise Risk Management; External Market Risk Factors; Financial Risk Factors
Human Changing demographics affects workplace profiles Enterprise Risk Management; Human Resource Risk Factors
Growing importance of technology in the workplace G5: Connections Strategy 2020

Internal HR programs for data & technology and social media
Evolving leadership needs Leadership pipeline development program
Diversity is equated with “good business” Strategy 2020

Sustainability Report 2013 (on our website)
Diversity and Inclusion Report (on our website)
Intellectual Increased risk of cyber-attacks and data theft Enterprise Risk Management; Internal Operational Risk Factors
Intellectual capital becomes increasingly disseminated Strategy 2020 focus on technology, digital and social media

Enterprise Risk Management; Internal Operational Risk Factors
Digital technology transforms how people live and work Strategy 2020 focus on technology, digital and social media
Manufactured Urbanization trends, including rapid urbanization and ‘megacities’ G1: Build our Leading Local and Regional Service Operations

Strategy 2020 focus on potential growth markets and cities JLL Cities Research Centre (on our website)
Changing levels of demand for different types of real estate Strategy 2020 focus on most lucrative potential services

JLL Research
Expansion of the global investable real estate universe G3: Capture the Leading Share of Global Capital Flows for Investment Sales

G4: Strengthen LaSalle Investment Management’s Leadership Position
Social Unprecedented levels of transparency

Code of Business Ethics and Corporate Sustainability
Transparency Report 2013 (on our website)

Enterprise Risk Management; External Market Risk Factors

Increasing political instability and conflict Enterprise Risk Management; External Market Risk Factors
Businesses need to demonstrate social contribution Sustainability Report 2013 (on our website)
Natural Increase in extreme weather events Enterprise Risk Management; External Market Risk Factors

Global Sustainability & Cities Research
Natural resources in increasingly short supply

Enterprise Risk Management; Internal Operational Risk Factors

Sustainability Report 2013 (on our website)

Privacy statement

Terms of use

JLL.com

© 2016 Jones Lang LaSalle, IP, Inc.

q
q