Alignment with the integrated reporting framework

Building on the Strategy 2020 and as an important part of our aim to align more closely with the Integrated Reporting Framework, we began to identify the medium- to long-term global megatrends with the greatest potential to impact materially upon our business. To do this, we used the ‘six capitals’ model advocated by the International Integrated Reporting Council, namely financial, human, intellectual, manufactured, social, and natural capitals.

While we are most heavily dependent on the financial, human, and intellectual capitals to execute our own operations successfully, we identified significant trends with implications for our business across all six capitals. Furthermore, changes in the availability of all six capitals impact our clients’ businesses, and by extension, our service provision. An example in 2015 was the effect of significantly lower oil prices on the financial ability of energy-related companies to improve their real estate assets. Through internal consultation, we identified a number of trends as significant for our business in the medium to long term. All of these ‘‘Global Trends,’’ which we are tracking and/or actively managing, are illustrated 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 Annual Report on Form 10-K and (2) resources we publish on our website, where we discuss relevant points 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; Strategic Risk Factors

Potential increase in disruptive market cycles Enterprise Risk Management; Strategic 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; Operational Risk Factors; Legal and Compliance Risk Factors
Growth increasingly dependent on productivity gains Strategy 2020 focus on productivity
Global push against tax avoidance Enterprise Risk Management; Strategic Risk Factors; Financial Fisk Factors; Legal and Compliance Risk Factors
Human Changing demographics affects workplace profiles Enterprise Risk Management; Operational 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
Global Sustainability Report 2014 (on our website)
Diversity and Inclusion Report (on our website)
Intellectual Increased risk of cyber-attacks and data theft Enterprise Risk Management; Operational Risk Factors
Intellectual capital becomes increasingly disseminated Strategy 2020 focus on technology, digital and social media
Enterprise Risk Management; 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 2014 (on our website) 
Enterprise Risk Management; Strategic Risk Factors

Increasing political instability and conflict Enterprise Risk Management; Strategic Risk Factors
Businesses need to demonstrate social contribution

Global Sustainability Report 2014 (on our website)

Natural Increase in extreme weather events Enterprise Risk Management; Strategic Risk Factors
Global Sustainability & Cities Research
Natural resources in increasingly short supply

Enterprise Risk Management; Operational Risk Factors 
Global Sustainability Report 2014 (on our website)

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