What changed in this filing

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Item 1. Business

2021-02-18 compared with 2020-02-27 · 271 added, 252 removed, 303 unchanged (63% of the section changed)

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We shape the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities.

JLL is a Fortune 500 company with annual revenue of $18.0 billion, operations in over 80 countries and a global workforce of over 93,000 as of December 31, 2019 .

JLL is a Fortune 500 company with annual revenue of $16.6 billion, operations in over 80 countries and a global workforce of approximately 91,000 as of December 31, 2020.

We provide services for a broad range of clients who represent a wide variety of industries and are based in markets throughout the world.

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We deliver an array of services across four business segments.

We manage our Real Estate Services (“RES”) offerings across three geographic segments:

(i) the Americas, (ii) Europe, Middle East and Africa ("EMEA"), and (iii) Asia Pacific, and we manage our investment management business globally as (iv) LaSalle Investment Management.

We manage our Real Estate Services (“RES”) offerings across three geographic segments (i) the Americas, (ii) Europe, Middle East and Africa ("EMEA"), and (iii) Asia Pacific, and we manage our investment management business globally as (iv) LaSalle Investment Management.

In our Americas, EMEA and Asia Pacific segments, we provide a full range of leasing, capital markets, integrated property and facility management, project management, advisory, consulting, valuations and digital solutions services locally, regionally and globally.

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Our extensive global platform and in-depth knowledge of local real estate markets enable us to serve as a single-source provider of solutions for the full spectrum of our clients' real estate needs.

On July 1, 2019, we acquired HFF, Inc.

("HFF"), regarded as one of the premier capital markets advisors in the industry.

The acquisition greatly expanded our ability to provide world-class capital markets services and expertise to our clients, in particular in the United States.

In addition, we have the ability to offer our expanded services to legacy clients of HFF.

These acquisitions have given us additional share in key geographical markets, expanded our capabilities in certain service offerings and further broadened the global platform we make available to our clients.

For information on recent acquisitions, refer to Note 4, Business Combinations, Goodwill and Other Intangibles , of the Notes to the Consolidated Financial Statements, included in Item 8.

These mergers and acquisitions have given us additional share in key geographical markets, expanded our capabilities in certain service offerings and further broadened the global platform we make available to our clients.

For information on recent acquisitions, refer to Note 4, Business Combinations, Goodwill and Other Intangible Assets, of the Notes to the Consolidated Financial Statements, included in Item 8.

A timeline of notable milestones in our history is illustrated below.

OUR SERVICES AND BUSINESS SEGMENTS

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We offer our real estate services locally, regionally and globally to real estate owners, occupiers, investors and developers for a variety of property types, including:

Critical Environments and Data Centers

Hotels and Hospitality Facilities

Office (including Flex Space)

Cultural Facilities

Industrial and Warehouse

Residential (Individual and Multifamily)

Educational Facilities

Infrastructure Projects

Retail and Shopping Malls

Government Facilities

Logistics (Sort & Fulfillment)

Sports Facilities

Healthcare and Laboratory Facilities

Military Housing

Transportation Centers

• Critical Environments and Data Centers • Hotels and Hospitality Facilities • Office (including Flex Space)

• Cultural Facilities • Industrial and Warehouse • Residential (Individual and Multifamily)

• Educational Facilities • Infrastructure Projects • Retail and Shopping Malls

• Government Facilities • Logistics (Sort & Fulfillment) • Sports Facilities

• Healthcare and Laboratory Facilities • Military Housing • Transportation Centers

We develop and activate technology to make real estate work for the long-term benefit of our people, clients and communities.

Across our service lines, we offer and will continue to develop and invest in unique digital solutions and products that help us and our clients strategize, capture and analyze data, offer workplace technology and visualize real estate innovations.

Refer to the Digital portion of our Strategic Framework section below for additional information about our digital agenda.

We believe our market reach and depth of service offerings strengthen the long-term value of the enterprise in a number of ways, including:

(i) reducing the potential impact of episodic volatility or disruption in any specific region;

(ii) enhancing the expertise of our people through knowledge sharing among colleagues across the globe;

and (iii) allowing us to identify and quickly react to emerging trends, risks and opportunities.

Across our service lines, we offer and will continue to develop and invest in unique technology products and services that help us and our clients strategize, capture and analyze data, develop and implement workplace technology, and visualize real estate innovations.

Refer to the Digital portion of our Strategic Framework section below for additional information about our technology agenda.

We believe our market reach and depth of service offerings strengthen the long-term value of the enterprise in a number of ways, including (i) reducing the potential impact of episodic volatility or disruption in any specific region, (ii) enhancing the expertise of our people through knowledge sharing among colleagues across the globe, and (iii) allowing us to identify and quickly react to emerging trends, risks and opportunities.

The following reflects our revenue and fee revenue by service line for the year ended December 31, 2020:

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Management's Discussion and Analysis of Financial Condition and Results of Operations for additional discussion of fee revenue, a non-GAAP measure, and reconciliation from the most comparable U.S.

GAAP measure.

GAAP measure, Revenue.

Real Estate Services:

Americas, EMEA, and Asia Pacific

We organize our RES offerings into five major product service lines:

(2) Capital Markets;

(3) Property & Facility Management;

(4) Project & Development Services;

and (5) Advisory, Consulting and Other Services.

For the year ended December 31, 2020, our RES revenue and fee revenue was:

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Our five RES service lines, and the services we provide within them, include:

Agency Leasing executes leasing programs, including marketing, on behalf of property owners (including investors, developers, property companies and public entities) to secure tenants and negotiate leases with terms that reflect our clients' best interests.

In 2019 , we completed approximately 15,200 agency leasing transactions representing 257 million square feet of space.

Agency Leasing executes leasing programs, including marketing, on behalf of property owners (including investors, developers, property-owning companies and public entities) to secure tenants and negotiate leases with terms that reflect our clients' best interests.

Between 2018 and 2020, we completed an average 14,300 agency leasing transactions annually representing an average 236 million square feet of space per annum.

Tenant Representation establishes strategic alliances with occupier clients to help them evaluate and execute transactions to meet their occupancy requirements and ongoing real estate needs.

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Our involvement helps our clients reduce real estate costs, minimize occupancy risk, improve occupancy control and flexibility, and create more productive office environments.

In 2019 , we completed approximately 23,800 tenant representation transactions representing 639 million square feet of space.

Between 2018 and 2020, we completed an average 21,900 tenant representation transactions annually representing an average 686 million square feet of space per annum.

Our agency leasing and tenant representation fees are typically based on a percentage of the value of the lease revenue commitment for executed leases, although in some cases they are based on a monetary amount per square foot leased.

Capital Markets serves our clients locally, regionally and globally by leveraging extensive knowledge of the commercial real estate markets and our fully-integrated capital markets platform to provide a broad array of advisory services, provided for substantially all real estate asset classes.

Capital Markets serves our clients locally, regionally and globally by leveraging extensive knowledge of the commercial and residential real estate markets and our fully-integrated capital markets platform to provide a broad array of advisory services, provided for substantially all real estate asset classes and sectors.

Our services primarily include (ordered alphabetically):

● Debt placement

● Equity placement

● Loan servicing

● Funds advisory

● M&A and corporate advisory

● Investment sales and acquisitions

In the U.S., we are an approved Freddie Mac, Fannie Mae and HUD/Ginnie Mae commercial multifamily lender and loan servicer.

● Debt advisory ● Loan sales

● Equity advisory (funds and placement) ● Loan servicing

● Investment sales and acquisitions ● M&A and corporate advisory

In the U.S., we are an approved Freddie Mac, Fannie Mae and Housing and Urban Development/Ginnie Mae commercial multifamily lender and loan servicer.

In addition, we are one of only 23 Fannie Mae Delegated Underwriting & Servicing ("DUS") lenders.

Global capital and M&A and corporate advisory include sourcing capital, both equity and debt, derivatives structuring, and other traditional investment banking services designed to assist investor and corporate clients in maximizing the value of their real estate.

To meet client demands for marketing and acquiring real estate assets internationally and investing outside of their home markets, our Capital Markets teams combine local market knowledge with our access to global capital sources to provide superior execution in raising capital for real estate transactions.

M&A and corporate advisory include sourcing capital, both equity and debt, and other traditional investment banking services designed to assist investor and corporate clients in maximizing the value of their real estate.

To meet client demands for selling and acquiring real estate assets internationally and investing outside of their home markets, our Capital Markets teams combine local market knowledge with our access to global capital sources to provide superior execution in raising capital for real estate transactions.

By researching, developing and introducing innovative new financial products and strategies, Capital Markets is integral to the business development efforts of our other businesses.

Most of our revenues are in the form of fees, derived from the value of transactions we complete or securities we place.

In certain circumstances, we receive retainer fees for portfolio advisory services.

In certain circumstances, we receive retainer fees for portfolio advisory or consulting services.

In addition, we also earn fees from commercial loan servicing activities.

During 2019 , we provided capital markets services for approximately $278 billion of client transactions.

Between 2018 and 2020, we provided capital markets services for an average $208 billion of client transactions per annum.

Property & Facility Management

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We support them with regional supervisory teams and central resources in such areas as training, technical and environmental services, accounting, marketing, and human resources.

We are generally compensated based upon a percentage of cash collections on behalf of our clients or square footage managed;

We are generally compensated based upon a percentage of cash collections we make on behalf of our clients or square footage managed;

in some cases, management agreements provide for incentive compensation relating to operating expense reductions, gross revenue or occupancy objectives, or tenant satisfaction levels.

Consistent with industry custom, management contract terms typically range from one to three years, although some contracts can be terminated at will at any time following a short notice period, usually 30 to 120 days, as is typical in the industry.

Integrated Facilities Management ("IFM") provides comprehensive facility management services to corporations and institutions that outsource the management of the real estate they occupy, typically those with large portfolios (usually over one million square feet) that offer significant opportunities to reduce costs, meet energy savings targets, improve service delivery and enhance end-user experience.

Integrated Facilities Management ("IFM") provides comprehensive facility management services to corporations and institutions that outsource the management of the real estate they occupy, typically those with large portfolios (usually over one million square feet) that offer significant opportunities to reduce costs, meet sustainability targets, improve service delivery and enhance end-user experience.

Our IFM offering blends human, digital and experiential elements to help clients achieve optimal financial and operational results from their facilities, while also enhancing the experience and productivity of the end-user.

Our extended delivery team includes our own personnel as well as third-party vendors and subcontractors who can meet clients' needs by providing consistent service delivery worldwide and a single point of contact from their real estate service providers.

We tailor our service delivery to individual client needs by combining our large global platform with substantial local expertise.

Solutions include:

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As of December 31, 2020, IFM managed approximately 1.6 billion square feet of real estate for our clients.

Digital IFM solutions :

• Technology-enabled IFM solutions :

Technology is the backbone of our IFM offering.

Facilities teams leverage advanced products to make faster and more informed decisions, manage compliance, and improve efficiency through automation, accountability, assets, and analytics - all while enhancing the experience of end-users.

One example is Building Services Network, which provides facilities managers with access to a digital marketplace powered by our Corrigo platform for centralized repair, maintenance, and analytics - instantly connecting them with reliable, high-quality services at negotiated rates from handpicked vendors.

Facilities teams leverage advanced products to enhance the experience of end users as well as make faster and more informed decisions, manage compliance, and improve efficiency through automation, accountability, assets, and analytics.

One example is Corrigo, which enables facilities managers to easily manage work orders, centralizing repair, maintenance, and analytics as well as automating tasks.

We also provide technology-enabled predictive maintenance strategies and smart building technologies which can help extend the lifespan of costly equipment while preventing system failures.

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Advisory, Consulting and Other

Advisory and Consulting delivers innovative, results-driven real estate solutions that align with client business objectives.

We provide clients with specialized, value-added real estate consulting services in such areas as technology implementation and optimization, mergers and acquisitions, asset management, occupier portfolio strategy, workplace solutions, location advisory, industry research, financial optimization strategies, organizational strategy and Six Sigma process solutions.

Advisory and Consulting provides clients with specialized, value-added real estate consulting services in such areas as technology implementation and optimization, mergers and acquisitions, asset management, occupier portfolio strategy, workplace solutions, location advisory, industry research, financial optimization strategies, organizational strategy and Six Sigma process solutions.

Our professionals focus on translating global best practices into local real estate solutions, creating optimal financial and operational results for our clients across asset classes.

We typically negotiate compensation for Advisory and Consulting based on developed work plans that vary based on the scope and complexity of projects.

Valuations helps clients determine market values for office, retail, industrial, mixed-use and other types of properties.

These services range from valuing a single property to a global portfolio with multiple property types.

We conduct valuations for a variety of purposes supporting our clients, including acquisitions, dispositions, debt and equity financings, mergers and acquisitions, securities offerings (including initial public offerings) and privatization initiatives.

Clients include occupiers, investors and financing sources from the public and private sectors.

We usually negotiate compensation for valuation services based on the scale and complexity of each assignment, and our fees typically relate in part to the value of the underlying assets.

We provide Energy and Sustainability Services to occupiers and investors to help them realize the positive impact of sustainability on their brand, financial statements and the environment.

Our energy and sustainability accredited professionals worldwide assist clients to green their real estate portfolios, manage energy consumption and carbon footprint through sustainable operations, provide green building assessments, lead green retrofits/upgrades, and prepare corporate social responsibility and sustainability reports.

The breadth of our expertise allows us to provide end-to-end services to all clients, regardless of their focus, from leasing to capital market transactions, and projects to facility management.

We recognize and are fully behind the continued shift towards sustainability in our industry and believe our leadership positions us to be the best choice for our clients.

Valuations Advisory delivers customized solutions to enable clients to take the fastest, best informed decisions for their investment interests throughout the life cycle.

The services include valuation, secured lending advisory, transaction support, data & analytics, development advisory, asset and infrastructure advisory, financial reporting, business valuation, property tax advisory, restructuring and complex litigation.

We are a sector based organization and have strong expertise in retail, alternatives & special use, infrastructure, public sector, office, residential, hotels & hospitality, agribusiness, healthcare, senior living, and industrial and logistics.

We usually negotiate compensation for Valuation Advisory services based on the scale and complexity of each assignment, and our fees typically relate in part to the value of the underlying assets.

Energy and Sustainability Services help occupiers and investors realize the positive impact of sustainability on their brand, workforce, financial statements and the environment.

Like JLL, our clients are increasingly recognizing that there are both potential risks and opportunities associated with addressing the impacts of climate change, and are turning to partners like us for guidance and assistance.

Our accredited energy and sustainability specialists worldwide assist clients with technologies and strategic solutions to deliver measurable improvements that yield clear environmental and societal benefits, as well as operational and cost efficiencies.

This includes managing energy consumption and carbon footprint through sustainable construction and operations;

providing green building assessments;

leading green retrofits/upgrades;

advising on occupier experience and engagement, socio-economic impacts and site locations;

and creating corporate social responsibility and sustainability reports.

The breadth of sustainability expertise positions us as the best choice to partner with clients, regardless of their focus, from leasing to capital markets transactions, and projects to facility management.

Refer to our latest Global Sustainability Report, available on our website, for metrics on documented energy savings, reduction in greenhouse gas emissions and the work of our sustainability teams.

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Corporate Solutions

As a strategic partner of clients with a global footprint, Corporate Solutions brings together services across four of the five JLL service lines described above.

As a strategic partner of clients with a global footprint, Corporate Solutions brings together services across four of the five JLL RES service lines described above (Capital Markets services fall outside of the Corporate Solutions remit).

Our global delivery platform enables consistent outcomes on both a local and global scale, and places us in a small cohort of competitors who can deliver on clients’ multi-service, multi-geography needs.

Rapid and complex change, including digitization, increasing regulation, globalization and evolving workforce demographics, have transformed the world of work.

Organizations are realizing the potential for workplaces and real estate portfolios to help address broader business objectives, such as talent attraction, customer experience, employee productivity, financial performance and environmental sustainability (See Growth of Corporate Outsourcing in the Industry Trends section below).

Organizations are realizing the potential for workplaces and real estate portfolios to help address broader business objectives, such as talent attraction, customer experience, employee well-being and productivity, financial performance and environmental sustainability (See Growth of Corporate Outsourcing in the Industry Trends section below).

As clients buy with an increasingly global and/or multi-service mindset, they are looking to simplify and consolidate their supply chain with more integrated solutions.

This puts Corporate Solutions in a unique position to help clients bring together their real estate ecosystem, simplify decision making and maximize value of their real estate investments.

While each client is unique, they are consistent in looking for real estate to enable business transformation around three key value levers, (1) driving data-driven decisions and digital transformation, (2) achieving operational excellence through improved productivity and financial performance, and (3) attracting and retaining key talent through an enhanced user experience.

While each client is unique, they are consistent in looking for real estate to enable business transformation around three key value levers:

(1) making informed, data-driven decisions and digital transformation, (2) achieving operational excellence through improved productivity and financial performance, and (3) attracting and retaining key talent through an enhanced user experience.

Our offering addresses the entire life cycle, which we consider to include portfolio, capital and operations functions.

Through the nexus of services our Corporate Solutions business provides to clients, we gain deep knowledge and extensive data about their corporate real estate footprints, business strategies and organizational priorities.

Combining this with the expertise we draw from our broader integrated global platform, we advise our clients about how to optimize their workplace strategies and occupancy planning efforts to improve utilization and ultimately enhance the productivity and well-being of those who use the space.

Combining this with the expertise we draw from JLL's integrated global platform, we advise clients on how to optimize their workplace strategies and occupancy planning efforts to improve utilization and ultimately enhance the productivity and well-being of those who use the space.

More broadly, this advice may extend to our clients’ portfolio strategies, including location advisory, technology implementation and optimization, and options to add and integrate flexible space solutions.

When evolution of strategies dictates change, our Corporate Solutions business partners work with other professionals throughout our organization to help clients execute leasing, acquisition and disposition strategies.

With the view workplaces are living environments that can help individuals, organizations and communities innovate and thrive, Corporate Solutions advises clients about how and when to make critical capital decisions to maximize the human and financial returns on portfolio investments.

Viewing workplaces as living environments that can help individuals, organizations and communities innovate and thrive, Corporate Solutions advises clients about how and when to make critical capital decisions to maximize the human and financial returns on portfolio investments.

Our design & build professionals work alongside clients to capture and advance their organization’s brand identity, purpose and sustainability commitments through the design of space they occupy, including owned, leased, static and flexible environments.

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In addition to maximizing efficiency and quality of service delivery, our digitally-enabled platform also provides clients with opportunities to tailor the balance of services we provide versus what they self-perform.

Data, Technology and Business Intelligence .

Data and technology have become core to all clients’ workplace and business transformation agendas.

Ahead of this trend, we built a comprehensive data and technology platform that underpins all of our offerings, helping clients make fast, informed decisions that enhance the performance of their workplaces, portfolios and people.

Digital Solutions experts guide clients’ selection, implementation and management of real estate-related software and applications The Building Services Network opens new client segments by revolutionizing end-to-end facility repair and maintenance service delivery, using the Corrigo platform to find clients the best service providers.

Complementing our real estate services capabilities, our global real estate investment management business, LaSalle, is one of the world's largest managers of institutional capital invested in real estate assets and securities.

Business Intelligence, Data Management and Technology .

Data and technology are core to all clients’ workplace and business transformation agendas.

Our comprehensive data and technology platform underpins all of our offerings, helping clients make fast, informed decisions that enhance the performance of their workplaces, portfolios and people.

Experts in our JLL Technologies group guide clients’ selection, implementation and management of real estate-related software and applications.

The Corrigo ecosystem opens new client segments by revolutionizing end-to-end facility repair and maintenance service delivery, and helping clients find the best service providers.

Complementing our real estate services capabilities, our global real estate investment management business, LaSalle, is one of the world's largest managers of institutional and individual capital invested in real estate assets and securities.

We seek to establish and maintain relationships of trust with sophisticated investors who value our global platform and extensive local market knowledge.

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• Deliver uniformly high levels of client service globally

LaSalle provides clients with a broad range of real estate investment products and services in the private and public capital markets.

LaSalle provides clients with a broad range of real estate investment products and services in private and public capital markets.

We design these products and services to meet the differing strategic, asset allocation, risk/return and liquidity requirements of our clients.

The range of investment solutions includes private investments in multiple real estate property types, including office, retail, industrial, health care and multifamily residential, as well as investments in debt.

The range of investment solutions includes private and public equity investments in multiple real estate property types, including traditional sectors such as office, retail, industrial, and multifamily residential, as well as emerging or specialized sectors such as healthcare, life sciences, self-storage and data centers.

We also have established commercial debt investment vehicles in Europe and North America that diversify our capital stack exposure.

We act either through commingled investment funds or single client account relationships ("separate accounts").

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Where consistent with client requirements and market terms and conditions, LaSalle retains JLL to provide services to assets in LaSalle funds in the ordinary course of business.

We believe LaSalle's success is the product of our strong investment performance, research capabilities, experienced investment professionals, innovative investment strategies, global presence and coordinated platform, local market knowledge and strong client focus.

LaSalle launched its first institutional investment fund in 1979.

LaSalle launched its first institutional investment fund in 1979, making us one of the most experienced real estate focused investment managers in the industry.

We have invested, on behalf of clients, in real estate assets in 26 countries around the globe, as well as in public real estate companies traded on all major stock exchanges.

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In serving our investment management clients, LaSalle is responsible for the acquisition, financing, leasing, management and divestiture of real estate investments across a broad range of real estate property types.

Some investors prefer to partner with investment managers willing to co-invest their own funds to more closely align the interests of the investor and the investment manager.

Some investors prefer to partner with investment managers who are willing to co-invest their own funds to more closely align the interests of the investor and the investment manager.

We believe our ability to co-invest alongside our clients' funds will continue to be an important factor in maintaining and improving our competitive position.

As of December 31, 2020, we had a total of $300.8 million of co-investments, alongside our clients, in real estate ventures included in total AUM.

LaSalle is generally compensated for investment management services for private equity investments based on capital committed, invested and managed (advisory fees), with additional fees (incentive fees) tied to investment performance above benchmark levels.

In some cases, LaSalle also receives fees tied to acquisitions, financings and dispositions (transaction fees).

Separate account advisory agreements generally have specific terms with "at will" termination provisions, and include fee arrangements linked to the market value of the assets under management, plus incentive fees in some cases.

Our investment funds have various life spans, typically ranging between five and nine years, but in some cases they are open ended.

In 2019, our open-ended funds grew 30% to represent approximately one-quarter of AUM.

Separate account advisory agreements generally have specific terms with "at will" termination provisions, and include fee arrangements linked to the market value of the AUM, plus incentive fees in some cases.

Our investment funds have various life spans, typically ranging between five and nine years, but in some cases are open ended.

In 2020, our open-ended funds grew nearly 25% and represented approximately 30% AUM as of December 31, 2020.

ORGANIZATIONAL PURPOSE

JLL’s organizational purpose is to shape the future of real estate for a better world.

Staying true to this purpose in all that we do enables us to fully align with the best interests and ambitions of our clients and all our stakeholders.

It exemplifies our commitment to the highest standards of environmental, social and corporate governance ("ESG") , and to a more sustainable, diverse and inclusive future.

We shape the future of real estate for a better world

This core organizational purpose is fully aligned with, and supported by, our corporate values of teamwork, ethics and excellence.

Ultimate responsibility for promoting awareness and ensuring adherence to our values and purpose across the enterprise is held by the JLL Global Executive Board ("GEB") and is endorsed by our Board of Directors.

Our purpose guides our strategic growth vision and informs our response to the macro trends prevalent in the real estate industry.

These trends and our strategic framework are summarized below.

INDUSTRY TRENDS

Our long-term growth strategy is framed around four major macroeconomic trends we see affecting the real estate sector today, each with an estimated multi-year lifespan:

Informing our long-term growth strategy, we have identified five macro trends we see as major guiding influences on the continued growth and evolution of the real estate sector.

Each of these trends has a multi-year lifespan, and while the COVID-19 pandemic (the "pandemic") has slowed some and accelerated others, we expect all five trends to maintain their long-term trajectory and relevance in the post-pandemic era.

These macro trends are:

Rising investment allocations and globalization of capital flows to real estate

During the past decade, real estate has grown out of its previous 'alternative investment' classification to become a major defined asset class of its own, attracting a sustained long-term trend of rising investment allocations.

Complementing that, we see sustained strong transaction volumes and increasing capital flows across borders and between continents, creating new opportunities for advisors and investment managers equipped to source and facilitate these capital flows and execute cross-border transactions.

In 2020, while the initial impacts of the pandemic slowed all transactional markets, this trend has reasserted as economic activity resumed.

Indications from pension companies and other institutional investors and capital sources suggest it will further strengthen as we move into post-pandemic recovery, with real estate continuing to offer attractive returns.

Complementing this, we see long-term sustained strong transaction volumes and increasing capital flows across borders and between continents, creating new opportunities for advisors and investment managers equipped to source and facilitate these capital flows and execute cross-border transactions.

Our real estate investment expertise, linking seamlessly across the world's major markets, is ideally placed to support our clients' investment ambitions.

Growth in corporate outsourcing

While corporate outsourcing of real estate services still represents a relatively small proportion of the total commercial-built real estate worldwide, there has been a steady long-term trend towards outsourcing since the early 1990s, originally driven by U.S.-based corporations and has now become a global trend.

An increasing number of large organizations are partnering with firms like JLL to improve their workplace efficiency and experiences, as well as seeking strategic portfolio advice to realize broader business objectives.

We have a particular focus and expertise, supported by broad-based research and analysis on the future of work, in partnering with clients to optimize workplace design, space planning, management and supplies, with sustainability and positive human experience (for all employees, customers and communities) all as core objectives.

Historically, outsourcing clients’ primary focus was reducing cost and improving the operations of their portfolios.

The convergence of the digital and physical worlds is driving increased demand for mobility, flexibility and enhanced experience, alongside traditional performance metrics.

By focusing their own resources on core competencies and partnering with dedicated service providers to manage real estate strategy and activities, organizations are better positioned to advance their goals of financial and operational performance, talent attraction, customer experience, employee productivity and environmental sustainability.

These trends have increased the demand for global real estate services, including digitally-enabled and experience-focused solutions.

Although some continue to unbundle and separate the sources of their real estate services, a growing proportion of medium-to-large commercial real estate services users continue to demonstrate an overall preference for working with single-source service providers or enterprise integrators to enable seamless management from a local to global level.

In addition, public and other non-corporate users of real estate that require specific expertise to address unique industry regulations, including government agencies and health and educational institutions, are increasingly outsourcing real estate activities.

Offering a full range of services on this scale requires significant infrastructure investment, including digital applications, personnel training and industry vertical expertise.

Smaller regional and local real estate service firms, with limited resources, are less able to make such investments.

As a result, we believe there will continue to be significant growth opportunities for companies like ours that can provide consistent, integrated real estate products and services across many geographic markets, industries and types of clients.

Our diverse outsourcing services, described above within Corporate Solutions, address clients' needs across the real estate life cycle and allow them to enable enterprise objectives through their real estate investments.

Growing urbanization continues to be a powerful global trend.

In its latest World Urbanization Prospects report (May 2018), the United Nations Department of Economic & Social Affairs predicted 68% of the global population will live in urban areas by 2050, up from 55% as of the publication date (with total global population growth of just over 1% per year).

More specifically, the international hub cities where we and our clients do a substantial majority of our business are thriving.

This is another sustained trend that successfully overrides national and global political changes and uncertainties.

JLL has a well-established global research series - the City Momentum Index - exploring this and associated trends in more depth, including related dynamics in the way the world’s leading 130 emerging and established markets are growing, adapting and evolving.

4th Industrial Revolution

The 4th Industrial Revolution of technology, data and the rapid rise in applications of artificial intelligence ("AI") continues to change everything.

However, there is currently no single technology disruptor positioned to dominate the real estate industry.

Instead, thousands of start-ups, applications and concepts are vying to transform the marketplace.

The challenge to innovate and maximize the potential benefits of new technology, data and AI uses is constant.

At the heart of our Beyond strategy (discussed in detail below), supported by major ongoing investments and innovations, we continue to accelerate progress toward our goal of becoming the widely-recognized leading user of technology and data in real estate.

ORGANIZATIONAL PURPOSE & STRATEGIC FRAMEWORK

Organizational Purpose

Our purpose, We shape the future of real estate for a better world , has strong and deep roots in our identity and history.

During 2019 we set JLL’s organizational purpose into a short and memorable phrase, endorsed by our Global Executive Board (“GEB”) and Board of Directors.

The CEO letter in our forthcoming annual report will expand on the central role and relevance of our organizational purpose in relation to our interactions with and responsibilities to all of our stakeholders as we move into this new decade.

While corporate outsourcing of real estate services still represents a relatively small proportion of the total commercial-built real estate worldwide, the steady long-term trend towards outsourcing which began in the early 1990s, originally with U.S.-based corporations, is now a global trend.

By focusing their own resources on core competencies and partnering with dedicated service providers like JLL to manage real estate strategy and activities, organizations are better positioned to advance their goals of financial and operational performance, talent attraction, customer experience, employee productivity and environmental sustainability.

In corporate boardrooms around the world, the global onset of the pandemic in 2020 rapidly accelerated the growing focus on reimagining workplaces and concepts for the future of work.

These are areas in which JLL holds deep expertise and sector-leading specialist experience and resources.

Across different industries we are positioned to provide highly adaptive and relevant solutions that promote organizational culture and prioritize health and well-being, flexible working models and digital enablement.

In the post-pandemic era, we predict further growth in the strong and sustained trend for organizations to outsource real estate services while increasingly seeking strategic advice on reimagining their workspaces and workstyles to reinforce culture, attract talent and drive performance.

While the world of urban living and working was thrown into temporary flux in 2020 by the pandemic, we believe its foundations are deep and secure, and a dynamic future is already taking discernible shape.

With the successful rollout of vaccination programs, the concentrations of culture, diversity, opportunity, facilities and creative expression in the world’s major cities will continue to attract strong inflows of ambitious and aspirational people.

In the post-pandemic era, cities will again thrive, characterized by vibrant and reimagined office, cultural, retail and residential profiles.

Growth in major urban populations around the world will continue to be a prevalent trend, and with it comes increasing demand for all forms of real estate services and advice.

JLL has a well-established global research series - the City Momentum Index - exploring this and associated trends in more depth, including related dynamics in the way the world’s 130 emerging and established markets are growing, adapting and evolving.

Fourth Industrial Revolution

The World Economic Forum defines the Fourth Industrial Revolution as the wave of change being driven through advances in technology, data and artificial intelligence.

The real estate industry is affected in many ways, a few examples include:

(1) the transition to flexible and hybrid office working models, (2) new data-driven understanding of how all forms of real estate can be more efficient, sustainable and productive, (3) the rise of experiential and online retail, (4) new asset management technologies, and (5) the growth of the logistics sector.

While there is currently no single technology disruptor positioned to dominate the real estate industry, there are thousands of start-ups, applications and concepts vying to transform the marketplace, collectively known as proptech.

The challenge to innovate and maximize the current and future benefits of proptech is constant.

At the heart of our Beyond strategy (discussed below), supported by major ongoing investments and innovations, we continue to accelerate progress toward our goal of becoming the widely-recognized leading user of technology and data in real estate.

Sustainability

Addressing and managing climate change and the finite nature of global resources are defining issues for our time.

According to the International Energy Agency, real estate and the built environment account for nearly 40% of total global direct and indirect CO₂ emissions.

At the same time, stakeholders are demanding greater focus on ESG from businesses and organizations in all areas of society.

These and other factors, including heightened awareness of the importance of promoting health and well-being, coalesce into strong rising demand for sustainability services and advice across the real estate industry.

JLL has identified meeting this demand as a major growth opportunity and priority, aligning with our purpose to shape the future of real estate for a better world.

Refer to our annual Global Sustainability Report for information on JLL’s commitment to net zero carbon operations for our leased offices and updates on progress toward achieving our science-based target, which was approved by the Science Based Target initiative in 2020.

STRATEGIC FRAMEWORK

Strongly aligned with our organizational purpose, our GEB established the broad framework for our Beyond strategy in 2016 .

This ambitious strategic vision aims to drive long-term sustainable and profitable global growth, incorporate transformational enhancements to our digital, data and AI capabilities, and complement our unwavering commitment to the highest standards of client service, teamwork, ethics and expertise.

Throughout 2017 and 2018, the GEB developed the specific initiatives, goals and investment priorities to support the Beyond strategic vision and led implementation of the foundational steps.

Examples included the global alignment of our administrative functions (finance, legal, HR, IT/technology);

completing transformational global platform enhancements for our Finance and Human Resources capabilities;

establishing JLL Spark as a global proptech innovation business based in Silicon Valley and launching the JLL Spark Global Venture Fund including securing several subsequent proptech investments;

launching our Achieve Ambitions brand identity and accompanying Achieve your ambitions employee value proposition;

implementing a new consistent and transparent global career framework and launching a comprehensive single system supporting our human resources interactions for our global employee base;

introducing CapForce, an advanced and globally integrated CRM system for our Capital Markets teams worldwide;

and the launch of our new fully-integrated and wholly-redesigned global website us.jll.com .

This year, strong ongoing business performance enabled us to further accelerate our multi-year Beyond transformation.

During 2019, we have reorganized our Corporate Solutions, Capital Markets and Valuation Advisory capabilities to be fully globally-aligned businesses.

Such changes reflect the continuing evolution of client demand, increasingly looking for a seamless single-provider solution worldwide, and opportunities presented to us by new technology and data advances in our business.

We also significantly strengthened our Capital Markets capabilities with our acquisition of HFF, propelling JLL into a clear leadership position among the world’s largest real estate capital advisors.

Another key transformation was bringing together all of our internal and client-facing technology, data and AI operations into a globally-aligned group called JLL Technologies, headed by the co-CEOs of our JLL Spark business who both joined our GEB.

We predict the creation of JLL Technologies will become apparent as a major growth driver for us over the medium term.

Having completed this comprehensive series of significant transformative steps over the past three years, we are focused on fully embedding these changes and leveraging the enhanced strengths of our platform to drive client service and further growth through 2020.

We will continue to deliver on the key priorities within our multi-year Beyond strategic vision, which is summarized in following section.

Our GEB has set out the Beyond strategic vision and framework to deliver long-term sustainable and profitable global growth.

This framework comprises broad strategic priorities grouped into five pillars – Clients, Brand, Digital, People and Values – which collectively support and drive our ambitious long-term growth trajectory.

Our Strategic Vision for Long-Term Sustainable and Profitable Growth

We are a global leader in providing seamlessly integrated services and advice to international corporate and investor clients in all parts of the world.

Our Beyond strategic vision sets ambitious goals for continued enhancements to our comprehensive service offering, attracting new talents and skills to our business, marshaling the best new technology and data analytics, and focusing our teams on truly understanding each client’s broader strategic needs.

Our service offerings span the whole real estate life cycle, being consistently delivered to the highest quality and creating real value for our clients.

Within our Beyond strategy, we are making significant ongoing investments in advanced client relationship management processes and tools, always with a core commitment to ensuring our own systems and structures never become an obstacle to assembling international and multidisciplinary teams tailored to meet each client’s requirements.

As a major step on our Beyond journey, during 2020 we completed a two-year leadership transformation initiative to move all parts of our business to global organizational structures.

Reorienting from the previous locally-based structures means we are now even better positioned to provide seamless and highly consistent services to our clients across the world, as well as smoothly and rapidly deploy innovations, best practice and new technologies.

We continue to enhance our comprehensive service offering to create real value for our clients.

Guided by our Beyond strategy, we are making significant ongoing investments in advanced client relationship management processes and tools, ensuring we can quickly assemble the best multidisciplinary teams and expertise tailored to meet each client’s requirements.

During 2020, JLL’s status as trusted adviser and partner to our clients was readily apparent.

Clients turned to us for solutions and insights to adapt their real estate strategies and operations to weather a year of unprecedented challenges, and to plan ahead for the post-pandemic world.

Our major research-led global focus on reimagining real estate ensured our brand and services were positioned in the vanguard of the industry’s response.

We continue to strengthen and expand awareness of our brand beyond the traditional real estate sector, with a focused goal in our Beyond strategic vision to reach more CEOs and other senior decision makers.

Supporting this goal, we are an active strategic partner of the World Economic Forum and regular participant in its annual meeting in Davos and at other events.

In January 2020, Fortune magazine again named JLL as one of the World’s Most Admired Companies (see below for further awards and recognition during the past year).

As part of our Beyond strategy, we launched a new visual identity and brand positioning strategy centered on our Achieve Ambitions theme, which is relevant to all our clients and other stakeholders.

Further, our leadership on embedding sustainability into our overall business conduct is increasingly central to our brand.

Technology is changing the definition of work:

where we work, how we work, and what type of work we do.

We are still in the early days of harnessing technology through digitization, data, analytics, AI and machine learning to deliver value for our clients, people and shareholders.

Supporting this goal, we are an active strategic partner of the World Economic Forum and regular participant in its annual meeting in Davos and at other events, and our President and CEO, Christian Ulbrich, is a member of the Forum’s International Business Council and Alliance of CEO Climate Leaders.

Further, in January 2021, Fortune magazine again named JLL as one of the World’s Most Admired Companies (refer to the Distinguishing Attributes and Competitive Differentiators section below for additional awards and recognition during the past year).

The events of 2020 highlighted how technology is changing the way we work and where we do it more than ever before.

JLL is embracing technology to meet the needs of clients today and anticipate the opportunities of tomorrow.

Leading this technology transformation is core to our growth strategy and reflected in our significant investments:

Forming JLL Technologies in 2019 to align and expand our technology capabilities for our clients and our company.

JLL Technologies will expand the suite of technology products and services to help our clients and global organization navigate key real estate needs, with a focus on increasing the value and liquidity of the world’s buildings, while improving the experiences of those who occupy them.

Transforming and enabling delivery of standardized services worldwide with a best-in-class technology foundation and an operational emphasis on data and analytics.

This includes increasingly leveraging AI and machine learnings to drive insights, speed and accuracy.

A notable example is our 2015 acquisition of Corrigo, which enables our facilities management business globally and continues to grow as a component of our integrated platform.

Expanding Digital Solutions, our global digital advisory and implementation services capability.

Digital Solutions designs, integrates and implements innovative digital solutions for clients across industry types in the areas of integrated workplace management platforms, workplace experience, and smart buildings.

In 2018, we nearly doubled the size of this team through the acquisition of ValuD, a leading provider of software integration and consulting services.

This combined organization is bringing the next generation of technology to our clients.

Launching the JLL Spark Global Venture funds, with plans to invest up to $100 million in a number of “proptech” (property technology) early-stage companies, helping to drive innovation for JLL and its clients through cutting-edge products and improved service delivery and operations.

Visit our website to see the full portfolio of investments.

These investments, along with digital enhancements in our internal platform and throughout our core service offerings, put us in position to extend our role as the digital leader in corporate real estate.

People are at the heart our business.

We are committed to helping our people achieve their ambitions by enabling them to explore new opportunities, build expertise, create long-term careers, work with other talented people, and succeed through inclusion.

Achieve your ambitions , our employee value proposition, articulates the key attractions and advantages of a career with JLL.

We offer inclusive, collaborative and flexible working environments and an array of developmental and training opportunities.

In 2019, we benefited from the first full year of operating our global career framework providing transparency and clarity on career paths, supporting succession planning and resource allocation, and allowing our people to explore a wide variety of new career opportunities within our organization, including internationally.

We support career growth by providing guidance on globally-aligned leadership capabilities and offering formal mentoring and coaching programs.

Our people, their skills and aspirations, and their commitment to a consistently high-performance culture and JLL’s core values are central to our ongoing success and sustained profitable growth.

All our people are committed to the core values of teamwork, ethics and excellence.

Leading this transformation is core to our growth strategy and reflected in our significant investments.

Our JLL Technologies group is a global leader in proptech – expanding and refining our technology capabilities to deliver significant competitive advantage and value for our clients and our company.

This includes our $100 million commitment to JLL Spark Global Venture funds which incubate and drive proptech innovation as well as our recently launched workplace experience app, JLL Jet.

Visit our website at www.jll.com to see the full portfolio of technology offerings.

Within our own operations, the substantial platform technology investments we made in the early phases of our Beyond journey are bearing significant fruit.

Despite the impact of the pandemic, the ready availability and consistency of information in our Finance and HR systems enabled us to drive record cash flow from operating activities in 2020.

People are at the heart of our business.

We are dedicated to helping our people achieve their ambitions by enabling them to explore new opportunities, build expertise, create long-term careers, and draw inspiration through working with talented colleagues and clients.

We are committed to promoting and achieving true diversity and inclusion, as exemplified by the composition of our highly talented and experienced Board of Directors.

All of our people are committed to the core values of teamwork, ethics and excellence.

These values are the foundation of our organization.

Clients, employees, business partners and potential recruits are strongly attracted to these values and to our commitments to a sustainable future through Building a Better Tomorrow , our sustainability leadership ambition.

This has earned us repeated recognition from organizations such as the Ethisphere Institute, which in 2019 named JLL as one of the World’s Most Ethical Companies for the 12th consecutive year.

As discussed in more detail in Distinguishing Attributes and Competitive Differentiators, we achieved our existing multi-year sustainability targets for our own operations and, therefore, we are setting ambitious new medium-term goals, including a science-based target for carbon emissions reduction.

These new targets will be published in our next annual Global Sustainability Report.

Clients, employees, business partners and potential recruits are strongly attracted to these values and to our commitments to a strong ESG, including ambitious goals and regular transparent reporting.

In April 2020, the Science Based Target Initiative (SBTi) confirmed its approval of our target of a 68% reduction in our total carbon emissions by 2030.

In September 2020, we signed the World Green Building Council’s Net Zero Carbon Buildings Commitment, pledging to achieve net zero carbon emissions from JLL-occupied buildings by 2030.

In November 2020, we announced the appointment of Guy Grainger – previously CEO of our EMEA segment – in a newly created senior role as Global Head of Sustainability Services and ESG, reflecting our core strategic focus in this area.

We have earned repeated recognition from organizations such as the Ethisphere Institute, which in 2020 named JLL as one of the World’s Most Ethical Companies for the 13th consecutive year.

Our Beyond priorities for clients, people, values, digital and brand combine to provide an integrated strategic vision and platform for growth.

This vision is supported by our commitment to enhance productivity in all operations, build margin and create the basis for long-term sustainable and profitable growth, which reward all our stakeholders, helping them achieve their ambitions.

We regularly reevaluate our strategic priorities to optimize sustainable and profitable long-term growth and on-going value creation for all our stakeholders.

This vision is supported by our commitment to enhance productivity, optimize sustainable and profitable long-term growth, and create value for all of our stakeholders.

Our Beyond strategic vision and priorities for growth are built on our closely integrated platform, which combines deep local market knowledge with seamless advice and services tailored to each client’s specific needs.

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A BUSINESS MODEL THAT COMBINES DIFFERENT CAPITAL TO CREATE STAKEHOLDER VALUE

The built environment is estimated to account for more than 40 percent of global energy consumption and approximately one-third of the world's carbon emissions according to International Energy Agency's 2019 report Energy Efficiency.

As referenced above, the built environment is estimated to account for over one-third of global final energy consumption and nearly 40% of total direct and indirect CO 2 emissions, meaning JLL can have a significant impact through the work we do with our clients as well as in our workplaces and communities.

Building a Better Tomorrow - our global sustainability strategy.

Through the four pillars of Building a Better Tomorrow , depicted below, we work to shape the future of real estate for a better world.

Our purpose, we shape the future of real estate for a better world, has strong and deep roots in our identity and history.

We bring our purpose to life by partnering with our stakeholders to drive disruptive, impactful and sustainable change.

We do this by embedding sustainability into everything we do through the four Pillars of Building a Better Tomorrow :

Clients, People, Workplaces and Communities.

These pillars are underpinned by three foundations:

(1) our commitment to the highest standards of corporate governance, (2) our efforts to drive sustainability thought leadership and (3) our commitment to deploying innovative, forward thinking solutions for ourselves and our clients.

To ensure these efforts support our broader business strategy, Building a Better Tomorrow is an integral part of our long-term strategic vision, Beyond .

By addressing issues which materially affect our clients, investors, employees and communities, we drive positive change through our organization and more widely.

In 2019, we again reviewed our most material issues and identified the top five environmental and social issues.

Environmental Issues

Social Issues

Energy consumption and emissions

Business ethics and integrity

(1) our commitment to the highest standards of corporate governance, (2) our efforts to develop and drive sustainability thought leadership and (3) our commitment to deploying innovative, forward thinking solutions for ourselves and our clients.

Building a Better Tomorrow is integral to our business and supports our long-term strategic vision, Beyond .

To ensure that JLL’s sustainability strategy and targets home in on the key impacts of our business and what matters most to our stakeholders, we engage in a regular assessment of our material issues.

In 2020, in large part due to the pandemic, we conducted a deep dive materiality review.

Through our process of market evaluation and direct stakeholder input, we identified the top five current environmental and social issues, which are detailed below.

Environmental Issues Social Issues

Energy and climate

Diversity and Inclusion

Sustainable buildings 2.

Corporate culture & reputation

Adaptation and resilience

Ethics and compliance

Healthy buildings

Innovation and technology

Enhancing client sustainability through our services

Health, safety and security

Talent attraction and retention

Responsible supply chain 5.

Employee wellbeing

We are in the process of setting ambitious new goals for JLL, rooted in the results of our materiality process.

These goals will be covered in detail in the next annual Global Sustainability Report, due for publication in the summer of 2020 and available on our website.

Employee well-being

These results will inform our evaluation of additional opportunities for impact beyond our already ambitious science-based target and net zero commitments.

All targets will be covered in detail in the next annual Global Sustainability Report, due for publication in the second quarter of 2021 and available on our website.

Generating sustainable value for our clients.

Through industry-leading strategies, tools and technologies, we partner with our clients to create and deliver solutions to achieve their sustainability goals.

As their objectives expand to include a broader spectrum of services, our approach of embedding sustainability considerations across our service lines helps them own, occupy, invest in and develop healthier and more productive spaces.

Through industry-leading strategies, tools and technologies, we help our clients achieve their sustainability goals.

Increasingly, our clients require innovative and consistent sustainability solutions across all regions in which they operate.

In response to this demand, we have expanded our focus on energy and sustainability capabilities with the intent of providing a broader complement of globally scalable, consistent and profitable services.

We have a designated team of energy and sustainability product management professionals, who are responsible for developing industry-leading energy and sustainability products that create differentiated value for our clients, deliver accelerated revenue growth and margin expansion to JLL, and help us shape the future of real estate for a better world.

This group, working in conjunction with our business lines, geographical leaders and operations teams, works collaboratively to develop and enhance our client offerings and is responsible for scaling up our services in the sustainability space, driving global consistency and best practices and bringing forward new offerings ahead of future client needs.

Our expertise addresses the entire life cycle of a building - from its design and planning, through construction, occupation, management, refurbishment and sale.

Our professionals offer advice on how sustainability considerations can be embedded at each of these stages to maximize value for our clients.

Our property and asset management professionals, for example, embed sustainability criteria into our supply chain via contractor selection and the monitoring of sustainability performance against KPIs.

Our Property & Facility Management professionals, for example, embed sustainability criteria into our supply chain via contractor selection and the monitoring of sustainability performance against key performance indicators.

We also support our clients’ data management and reporting requirements whether it be for frameworks such as 'GRESB', 'WELL' and 'LEED' or waste, water and utility information.

Our commitment to technological innovation extends to our sustainability service offering.

We have developed a number of in-house technology platforms to help us deliver our clients’ sustainability objectives.

For example, our Portfolio Energy and Environment Reporting System (PEERS) and the Energy and Sustainability Platform (ESP) reflect our commitment to investing in digital, data and information management platforms.

By deploying flexible digital solutions, we are able to measure, manage and improve environmental impacts for the nearly 200,000 buildings included on these platforms.

Our commitment to technological innovation extends to our sustainability service offering for our clients.

We utilize a number of technology platforms, both in-house and externally sourced, to help deliver our clients’ sustainability objectives.

Our OneView Energy and Sustainability Analytics (OVESA) platform is used to manage the ever-increasing volumes of complex sustainability data on behalf of our clients.

This system, along with our other platforms such as the Portfolio Energy and Environment Reporting System (PEERS) and the Energy and Sustainability Platform (ESP), reflects our commitment to investing in digital, data and information management platforms.

By deploying flexible technology solutions, we were able to measure, manage and improve environmental impacts for thousands of buildings included on these platforms in 2020.

In 2021, JLL will see further investments to simplify, streamline and enhance our digital capabilities.

Creating sustainable value for all our stakeholders

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We strive to create a healthy and dynamic balance between activities that will produce short-term value and returns for our stakeholders through effective management of current transactions and business activities, and investments in people (such as new hires), acquisitions, technologies and systems designed to produce sustainable returns over the long term.

"Thinking Beyond" our value creation model summarizes how we create value for our shareholders and our broader stakeholders.

"Thinking Beyond" our value creation model (illustrated on the next page) summarizes how we create value for our shareholders and our broader stakeholders.

It starts with the capital resources - or inputs - we need to do business.

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Since we provide a broad range of commercial real estate and investment management services across many geographies, we face significant competition at international, regional and local levels.

We also face competition from companies who may not traditionally be thought of as real estate service providers, including institutional lenders, insurance companies, investment banking firms, investment managers, accounting firms, technology firms, software-as-a-service companies, firms providing co-working space, firms providing outsourcing services of various types (including technology, food service and building products), and companies that self-provide their real estate services with in-house capabilities.

We also face competition from companies who may not traditionally be thought of as real estate service providers, including institutional lenders, insurance companies, investment banking firms, investment managers, accounting firms, technology firms, software-as-a-service companies, firms providing co-working space, firms providing outsourcing services of various types (including technology, food service and building products), and companies that self-perform their real estate services with in-house capabilities.

DISTINGUISHING ATTRIBUTES AND COMPETITIVE DIFFERENTIATORS

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• Our sustainability leadership , with a sustainability strategy that addresses long-term financial, environmental, and social risks and opportunities for ourselves and our clients

The quality and worldwide reach of our industry-leading research function, enhanced by digital applications and our ability to synthesize complex information into practical advice for clients

• The quality and worldwide reach of our industry-leading research function, enhanced by our ability to leverage granular data at a global scale through technology and our ability to synthesize complex information into practical advice for clients

• Our employee engagement as well as our employee value proposition - Achieve your ambitions - which articulates what differentiates JLL as an employer

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As an example, CapForce , our sophisticated CRM tool, links all our capital markets business lines and activities around the world.

Our goal is to provide each client with a single point of contact, an individual responsive to and accountable for all the activities we undertake for the client.

Our goal is to provide a seamless understanding of our clients' needs across our global capital markets platform, to drive a customized experience and accountability for all the activities we undertake for the client.

We achieve superior client service through best practices in client relationship management, seeking and acting on regular client feedback, and recognizing each client's own specific definition of excellence.

We also invest in developing the highest caliber talent dedicated to managing our client relationships through an employee compensation and evaluation system aligned with our global career framework and designed to reward client relationship building, teamwork and quality performance.

Our client-driven focus enables us to develop, sustain and grow long-term client relationships that generate repeat business and create recurring revenue sources.

Our client-driven focus enables us to develop, sustain and grow long-term client relationships that generate repeat business and create recurring revenue opportunities.

In many cases, we establish strategic alliances with clients whose ongoing service needs align with our ability to deliver fully integrated real estate services across multiple business units and locations.

Globally-Integrated Business Model .

Through the combination of a wide range of high-quality, complementary services and their delivery at consistently high service levels globally, we develop and implement real estate strategies that meet the increasingly complex and far-reaching needs of our clients.

With operations spanning the globe, we have in-depth knowledge of local and regional markets and can provide the full life cycle of real estate services around the world.

Through the combination of a wide range of high-quality, complementary services we deliver at consistently high service levels globally, we develop and implement real estate strategies that meet the increasingly complex and far-reaching needs of our clients.

With operations spanning the globe, we have in-depth knowledge of local and regional markets and can provide services which address the entire life cycle of real estate around the world.

This geographic coverage, combined with the ability and connectivity of our people, positions us to serve the needs of our multinational clients and manage the flow of investment capital on a global basis.

This model enables cross-selling potential across geographies and service lines that will continue to develop new revenue sources and growth.

This model enables cross-selling opportunities across geographies and service lines that we expect will continue to develop new revenue sources and growth.

Technology Leadership .

Our globally-coordinated investments in research, technology, data science and analytics, people, quality control and innovation, provide a foundation for us to develop, share and continually evaluate best practices across our global organization.

In 2018, we launched our new global people information system across the globe.

In 2019, we finished the implementation of the upgrade to our digitally integrated finance system.

We have been acquiring and/or developing technology-enabled expertise, products and services to better serve our employees and clients.

We will continue to develop and deploy technology as well as online and social media applications to support our marketing and client development activities and to make our products and services increasingly accessible.

Our globally-coordinated investments in research, technology, data and analytics, people, quality control and innovation provide a foundation for us to develop, share and continually evaluate best practices across our global organization.

In recent years, we launched a new global people information system, upgraded our digitally integrated finance system, and scaled the use of CRM tools globally to drive consistency across our organization.

In addition, we have been heavily focused on acquiring and/or developing technology-enabled expertise, products and services to better serve our employees and clients.

For example, in 2020, we launched the Investor Center, our global capital markets listings platform.

This online marketplace helps our clients find their next investment opportunity across asset types and facilitates the due diligence process.

We will continue to develop and deploy technology to support our marketing and client development activities and to make our products and services increasingly accessible.

The combined strength of our JLL and LaSalle brands represents a significant advantage when we pursue new business opportunities and is also a major motivator for talented people to join our global brand.

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We have ample capacity to fund our business.

Our primary source of credit liquidity is our unsecured credit facility (the "Facility") provided by an international syndicate of banks, which as of December 31, 2019 had a maximum borrowing capacity of $2.75 billion and a maturity date in May 2023.

A key source of liquidity is our unsecured credit facility (the "Facility") provided by an international syndicate of banks, which as of December 31, 2020 had a maximum borrowing capacity of $2.75 billion and a maturity date in May, 2023.

Sustainability Leadership.

With our global sustainability strategy - Building a Better Tomorrow - we are committed to new ways of partnering with our stakeholders to achieve shared ambitions for a sustainable future.

As we noted earlier, the built environment is estimated to account for more than 40 percent of global energy consumption and approximately one-third of the world's carbon emissions according to International Energy Agency's 2019 report Energy Efficiency.

Our vision is to make JLL a world-leading, sustainable professional services firm by creating spaces, buildings and cities where everyone can thrive.

The world’s financial, social and environmental challenges demand a bolder response from businesses around the globe.

From serving our clients and engaging our people, to respecting natural resources in our workplaces and building community relationships, we are focused on what is good for both business and a sustainable future.

This progressive approach increases value for all our stakeholders and leads to responsible investment decisions as well as healthier, safer and more engaged people.

We are Building a Better Tomorrow everywhere we can.

Leading on sustainability is fundamental to both our purpose and our future long-term growth strategy because it’s about creating a positive impact not only today, but also in the future.

Being a responsible corporate citizen is the right thing to do and is what our clients and employees expect from us.

To that end, and in alignment with the recommendations from the Taskforce on Climate-related Financial Disclosure ("TCFD"), we undertook an evaluation of the potential risks and opportunities to our business resulting from climate change.

Specifically, we analyzed the impacts of two climate scenarios, (1) an aggressive mitigation resulting in <2° C warming and (2) an intermediate mitigation resulting in 2° - 3.7° C warming.

Our findings were published in JLL’s first TCFD report included within our Global Sustainability Report published in 2020.

With both scenarios, we anticipate significantly more climate-related opportunities than risks as our business model is not carbon-intensive and mitigation measures are already in place for many risks.

Additionally, our existing investments in property technology, green building solutions and our climate change consulting provide significant and scalable avenues to realize the identified climate-related opportunities.

There is a strong and direct correlation between our ESG performance and the long-term health and success of our business.

We address this by putting into action our sustainability strategy, Building a Better Tomorrow , which delivers transformative changes for our business, people, clients, communities and planet.

Our market position enables us to take actions that contribute to a better world.

In so doing, it identifies us as a responsible organization, brings our purpose to life, adds value to our brand, and helps us attract and retain talent.

Industry-Leading Research Capabilities .

We invest in and rely on comprehensive research to support and guide the development of real estate and investment strategy for our clients.

With nearly 580 research professionals who gather data and cover market and economic conditions around the world, we are an authority on the economics and market dynamics of commercial real estate.

With approximately 480 research professionals who gather data and cover market and economic conditions around the world, we are an authority on the economics and market dynamics of commercial real estate.

Research plays a key role in keeping colleagues throughout the organization attuned to important trends and changing conditions in world markets.

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As examples, we were named:

A member of the Dow Jones Sustainability Index North America, for the fourth consecutive year

One of the World's Most Ethical Companies by the Ethisphere Institute, for the 12th consecutive year

An America's most JUST company on the Forbes' "JUST 100" list, for the fourth consecutive year

One of the World's Most Admired Companies by Fortune Magazine , for the third consecutive year

One of Working Mother's 100 Best Companies, for the third consecutive year

One of the Top 70 Companies for Executive Women by the National Association for Female Executives, for the fourth consecutive year

To the Human Rights Campaign Foundation's Corporate Equality Index, a benchmarking survey on corporate policies and practices related to LGBTQ workplace equality, with a perfect score, for the sixth consecutive year

One of the Global Outsourcing 100 by the International Association of Outsourcing Professionals, for the eleventh consecutive year

• A member of the Bloomberg Gender-Equality Index, for the second consecutive year

• A member of the Dow Jones Sustainability Index North America, for the fifth consecutive year

• One of America's 100 Most Sustainable Companies by Barron's

• An Energy Star Sustained Excellence Award recipient, by the U.S.

Environmental Protection Agency, for the eighth consecutive year

Environmental Protection Agency, for the ninth consecutive year

• One of America's Most Responsible Companies by Newsweek , for the second consecutive year

• One of the World's Most Ethical Companies by the Ethisphere Institute, for the 13th consecutive year

• One of the World's Most Admired Companies by Fortune Magazine , for the fourth consecutive year

• To the Human Rights Campaign Foundation's Corporate Equality Index, a benchmarking survey on corporate policies and practices related to LGBTQ workplace equality, with a perfect score, for the seventh consecutive year

• One of America's Best Employers for Diversity by Forbes , for the second consecutive year

• One of America's Best Employers for Women by Forbes

• One of the Top Companies for Executive Women by Working Mother , for the fifth consecutive year

• One of Working Mother's Best Companies for Dad

INTEGRATED REPORTING

As a part of the Business Network and Framework Panel of the International Integrated Reporting Council ("IIRC"), we support the general principles designed to promote communications and integrated thinking about how an organization's strategy, governance and financial and non-financial performance lead to the creation of value over the short, medium and long term.

JLL was one of the first U.S.

listed companies to participate in the International Integrated Reporting Council ("IIRC"), and we continue to support the general principles set forth by the IIRC, which are designed to promote communications and integrated thinking about how an organization's strategy, governance and financial and non-financial performance lead to the creation of value over the short, medium and long term.

Components of Our Integrated Report .

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Our Finance and Legal functions are primarily responsible for the integrity of our integrated reporting efforts, collaborating in the preparation and presentation of this report and engaging our organization's leadership.

A large portion of our revenue is seasonal, which investors should keep in mind when comparing our financial condition and results of operations from quarter to quarter.

Historically, our quarterly revenue and profits have tended to increase from quarter to quarter as the year progresses.

This is a result of a general focus in the real estate industry on completing or documenting transactions by calendar year-end and the fact certain expenses are constant through the year.

Historically, we have reported a relatively smaller profit in the first quarter and then increasingly larger profits during each of the following three quarters, excluding the recognition of investment-generated performance fees and realized and unrealized co-investment equity earnings and losses, each of which is inherently unpredictable.

We generally recognize such performance fees and realized co-investment equity earnings or losses when assets are sold, the timing of which is geared toward the benefit of our clients.

This is a result of a general focus in the real estate industry on completing or documenting transactions by calendar year end and the fact that certain expenses are constant throughout the year.

Generally, we recognize incentives fees when assets are sold, the timing of which is geared toward the benefit of our clients.

In addition, co-investment equity gains and losses are primarily dependent on underlying valuations, the direction and magnitude of changes to such valuations are not predictable.

Non-variable operating expenses, which we treat as expenses when incurred during the year, are relatively constant on a quarterly basis.

The following table reflects our global headcount for reimbursable and non-reimbursable employees.

(in thousands)

December 31, 2019

December 31, 2018

In 2020, macroeconomic conditions influenced by the COVID-19 pandemic impacted the historical seasonality of our revenue and profits and may continue to do so in 2021.

HUMAN CAPITAL

The following table details our global headcount for reimbursable and non-reimbursable employees.

(in thousands) December 31, 2020 December 31, 2019

Professional non-reimbursable employees 49.7 51.6

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Directly reimbursable employees have costs which are fully reimbursed by clients, primarily in our Corporate Solutions business.

Specifically, reimbursable employees include our property and IFM professionals as well as our building maintenance employees.

Specifically, reimbursable employees include our property and facility management professionals, including our building maintenance employees.

Our employees do not report being members of any labor unions, with the exception of approximately 2,600 property maintenance employees in the United States, 75% of whom are reimbursable.

As of both December 31, 2020, and 2019, approximately 70% of our employees were based in countries other than the United States.

Diversity and Inclusion

Diversity and inclusion are strategic imperatives for the way we do business.

Engaging in diverse and inclusive practices leads to better productivity, higher performing teams and business growth.

At JLL, we succeed through inclusion and celebrate the characteristics that make us unique.

A few recent examples are detailed below.

• A significant portion of our employee base participates in one or more of our Business Resources Groups.

Noteworthy in 2020, we launched our Parent and Caregiver Experience group to provide additional support and resources in response to pandemic-related increased pressures on parents and caregivers.

• In 2020, we appointed female CEOs for three of our largest country businesses - the UK, Germany and India.

• We launched our first Black Excellence Summit in 2020 and kicked off a reverse mentoring program with our senior leaders across the globe.

• In January 2021, we appointed our first dedicated global head of Diversity & Inclusion.

This role reports to our Chief Human Resources Officer, a member of the GEB, and will directly engage with leadership across the organization.

In addition, we regularly measure our inclusion index though our employee engagement survey, and have launched a Belonging@JLL program focusing on driving inclusive behaviors worldwide, including “Diversity Moments that Matter.”

Training and Development

Using extensive internal and external research, we have a set of core capabilities that define our leadership behaviors to drive our near and long-term success.

Those capabilities are the foundation for our employee talent assessments, succession planning and other talent processes.

Our employees can self-assess and be assessed against these capabilities to participate in our award-winning development platform, Real Leadership.

The platform provides specific programs to help our employees and leaders grow, develop their career, and become better leaders using in-person training, virtual programming, various assessments and coaching.

Just as our business needs to constantly evolve, so too does the Real Leadership platform -for example in 2020, we launched an online learning platform to accelerate the skills of employees’ working virtually.

Over 25,000 employees were able to learn, in seven different languages, through our virtual on-demand offerings this year.

Since we launched Real Leadership, we have had over 40,000 leaders and employees participate, through both virtual and instructor-led classes.

In 2020, we launched a well-being framework consisting of four pillars:

physical, mental, financial, and inclusion.

We provided resources on our well-being site in 15 languages including online courses, webinars and resources for caregivers.

This site has had more than 50,000 visits with over 12,000 employees attending webinars.

Health and Safety

Health and safety is at the forefront of JLL's operations.

With over 450 health and safety professionals, we are committed to creating an environment that unequivocally protects our employees, clients and supply partners.

To effectively manage health and safety, our program is aligned to the principles of the internationally recognized health and safety management standard ISO 45001.

We implement global health and safety standards that ensure we apply a consistent approach to harm prevention and operate assurance programs to ensure legal compliance.

We recognize that successful health and safety programs are built on proactive individual and collective safe behaviors.

Through our health and safety vision, ‘One team S.A.F.E.R together’, we create a stronger culture of health and safety, underpinned by our S.A.F.E.R.

S – Speak about safety;

A – Act safely;

F – Focus on safety standards;

E – Engage in safety initiatives;

R – Recognize safe performance.

To monitor the strength of our safety culture, in 2020 we benchmarked our organization against data from 130 other companies using the UK Health and Safety Laboratory’s Safety Climate Survey Tool.

Our global survey received 12,500 responses and showed our culture to be in the 95th percentile when compared against the all-industry scores.

While this score sets a high internal benchmark, our goal is to improve our culture and improve our scores year on year.

Through our safety vision and our awareness and education programs, like Global Safety Week, the strength of our program is realized in the low accident rates for the year 2020, compared with the U.S.

Occupational Safety and Health Administration ("OSHA") industry average accident rates for our industry (NAICS Code 531:

Real Estate).

• Lost Time Incident Rat e was 0.10 (OSHA industry average was 0.70):

12-month average of OSHA recordable illness and injuries per 100 JLL employees that resulted in days away from work.

• Total Recordable Incident Rate was 0.27 (OSHA industry average was 2.10):

12-month average of OSHA recordable illness and injuries per 100 JLL employees.

• Days Away, Restricted Duty and Transfer was 0.12 (OSHA industry average was 1.00):

12-month average of OSHA recordable illness and injuries per 100 full-time employees that resulted in days away from work or restricted duties.

• There were zero JLL employee workplace fatalities reported in 2020.

In addition, we closed, cleaned and reopened more than 350 corporate offices in the months following the onset of the pandemic, focusing on both employee safety and their office experience while complying with local regulations, incorporating proper social distancing practices and enhancing sanitation efforts.

INTELLECTUAL PROPERTY

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We own numerous domain names, have registered numerous trademarks, and have filed applications for the registration of a number of our other trademarks and service marks in the United States and in foreign countries.

We hold the "Jones Lang LaSalle," "JLL" and "LaSalle Investment Management" trademarks and the related logos, which we expect to continue to renew, as necessary, to conduct the material aspects of our business globally.

We hold the "Jones Lang LaSalle," "JLL" and "LaSalle Investment Management" trademarks and the related logos to conduct the material aspects of our business globally.

We own the rights to use the ".jll" and ".lasalle" top level domain names.

Although we believe our intellectual property plays a role in maintaining our competitive position in a number of the markets we serve, we do not believe we would be materially adversely affected by the expiration or termination of our trademarks or trade names or the loss of any of our other intellectual property rights other than the “JLL,” "Jones Lang LaSalle," “LaSalle,” and "LaSalle Investment Management" names, and our Design (Three Circles) mark that is also trademarked.

Our trademark registrations have to be renewed every ten years.

Our trademark registrations have to be renewed every ten years, which we expect to continue to renew, as necessary.

Based on our most recent trademark registrations, the JLL mark would expire in 2024, while the Jones Lang LaSalle name would expire in 2022 and the Design (Three Circles) mark would expire in 2021.

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• Annual self-assessment by the Board and each of its Committees

Periodic assessment by our senior executive management of the operation of our Board

Code of Business Ethics .

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We believe it is the only available independent verification of a company's ethics program.

As previously noted, we were named to Ethisphere Institute’s list of the World's Most Ethical Companies for the twelfth consecutive time in 2019.

As previously noted, we were named to Ethisphere Institute’s list of the World's Most Ethical Companies for the thirteenth consecutive time in 2020.

We also were recertified under the Ethics Inside program by the Ethisphere Institute.

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COMPANY WEBSITE AND AVAILABLE INFORMATION

JLL's website address is www.us.jll.com .

JLL's website address is www.jll.com .

We use our website as a channel of distribution for company, financial and other information.

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The SEC maintains www.sec.gov , containing annual, quarterly and current reports, proxy statements and other information we file electronically with the SEC.

We will also make the following materials available in print to any shareholder who requests them in writing from our Corporate Secretary at the address of our principal executive office set forth on the cover page.

Code of Business Ethics

Vendor Code of Conduct

Corporate Facts

Global Sustainability Report

Transparency Report

Business Continuity

Modern Slavery Statement

Health & Safety Report

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business