What changed in this filing

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Item 1. Business

2023-02-28 compared with 2022-02-28 · 307 added, 381 removed, 251 unchanged (73% of the section changed)

5 unchanged sentences

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 $19.4 billion, operations in over 80 countries and a global workforce of over 98,000 as of December 31, 2021.

JLL is a Fortune 500 company with annual revenue of $20.9 billion, operations in over 80 countries and a global workforce of more than 103,000 as of December 31, 2022.

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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LaSalle is also a registered trademark in the countries in which we conduct business, as is our logo.

Through December 31, 2021, we delivered an array of services across four business segments, managing 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 managing our investment management business globally as (iv) LaSalle.

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

LaSalle is one of the world's largest and most diversified real estate investment management companies with $76.6 billion assets under management as of December 31, 2021.

Effective January 1, 2022, our Real Estate Services operations were reorganized into four global business segments focused on product offerings versus geographical alignment.

The new RES segments are:

(i) Markets Advisory, (ii) Capital Markets, (iii) Work Dynamics, and (iv) JLL Technologies ("JLLT").

Effective with financial reporting in 2022, prior period results will be restated to conform with our new organizational structure.

We will continue to manage our investment management business globally as LaSalle, a distinct segment.

On February 28, 2022, we announced a new organizational structure that became effective on January 1, 2022.

Under the new structure, we organize our operations around, and publicly report our financial results on, five global business segments:

(i) Markets Advisory, (ii) Capital Markets, (iii) Work Dynamics, (iv) JLL Technologies and (v) LaSalle.

Prior period results have been restated to conform with our new organizational structure.

Refer to the Our Services and Business Segments section for detail on the range of real estate services we provide.

We began to establish our network of services across the globe through the 1999 merger of the Jones Lang Wootton companies ("JLW," founded in England in 1783) with LaSalle Partners Incorporated ("LaSalle Partners," founded in the United States in 1968 and incorporated in 1997).

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We do this by addressing the needs of real estate owners, occupiers and investors, leveraging our deep real estate expertise and experience to provide clients with a full range of services on a local, regional and global scale.

For detail on the range of services provided by each of the five segments outlined in the following graphic, refer to the narrative starting on page 6.

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 (ordered alphabetically):

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• 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 technology products and services that help us and our clients transform the way they acquire, operate, manage, and experience commercial real estate.

Refer to the Technology 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 across the globe to facilitate opportunities to engage clients across our service offerings;

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, 2021:

To calculate fee revenue, we deduct directly reimbursed expenses from revenue and then exclude (i) net non-cash mortgage servicing rights and mortgage banking derivative activity and (ii) gross contract costs associated with client-dedicated labor, and third-party vendors and subcontractors.

The following reflects our revenue and fee revenue by segment for the year ended December 31, 2022:

To calculate fee revenue, we exclude (i) net non-cash mortgage servicing rights and mortgage banking derivative activity and (ii) gross contract costs associated with client-dedicated labor, and third-party vendors and subcontractors.

Refer to Item 7.

1 unchanged sentence

GAAP measure, Revenue.

Real Estate Services:

Americas, EMEA, and Asia Pacific

For the year ended December 31, 2021, our RES revenue and fee revenue was:

In the Americas, our RES revenue and fee revenue for 2021 was earned geographically as follows:

Americas Revenue by Country - $11.9B

Americas Fee Revenue by Country - $4.9B

In EMEA, our RES revenue and fee revenue for 2021 was earned geographically as follows:

EMEA Revenue by Country - $3.5B

EMEA Fee Revenue by Country - $1.6B

In Asia Pacific, our RES revenue and fee revenue for 2021 was earned geographically as follows:

Asia Pacific Revenue by Country - $3.5B

Asia Pacific Fee Revenue by Country - $1.1B

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-owning companies and public entities) to secure tenants and negotiate leases with terms that reflect our clients' best interests.

Our revenue was $20.9 billion and fee revenue was $8.3 billion for 2022, earned geographically as follows:

Greater China is defined as China, Hong Kong, Macau and Taiwan.

Our five segments, and the services we provide within them, include:

Markets Advisory

Markets Advisory offers local expertise across the globe covering a comprehensive range of services across asset types.

We aggregate such services into three categories:

Leasing, Property Management, and Advisory, Consulting and Other.

Agency Leasing executes marketing and leasing programs on behalf of property owners (including investors, developers, property-owning companies and public entities), including product positioning, target tenant identification and competitor analysis through to securing tenants and negotiating leases with terms that reflect our clients' best interests.

In 2022, we completed approximately 18,200 agency leasing transactions representing 380 million square feet of space.

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.

We partner with clients to define space requirements, identify suitable alternatives, recommend appropriate occupancy solutions, and negotiate lease and ownership terms with landlords.

Tenant Representation establishes strategic alliances with occupier clients to define space requirements, identify suitable alternatives, recommend appropriate occupancy solutions, and negotiate lease and ownership terms with landlords.

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

In 2022, we completed approximately 24,400 tenant representation transactions representing 650 million square feet of space.

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 and residential real estate markets and our fully-integrated capital markets platform to provide a broad array of advisory services.

Our services primarily include (ordered alphabetically):

● Corporate Capital Markets ● Investment sales and advisory

Our agency leasing and tenant representation advisory anchors to the workplace of the future and helps owners and occupiers realize their sustainability commitments and goals.

Both 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.

Property Management

Property Management provides services to real estate owners for office, industrial and logistics, retail, multi-housing and specialty properties.

We typically provide property management services through local teams, which are generally on-site for office and multi-housing properties, supported by regional supervisory teams and central resources in such areas as technology, training, environmental services, accounting, marketing, lease administration and human resources.

We leverage our market share and buying power to deliver superior service and value to our clients, and our extended delivery team increasingly uses new technology and digital capabilities we deploy at the property.

This allows clients to drive value, optimize operations, gain insights and elevate the tenant experience.

Our work with clients also includes advisory, tenancy management and services focused strategically on reducing energy usage and carbon impact.

As of December 31, 2022, we provided property management services for properties totaling approximately 3.0 billion square feet.

We are generally compensated by either directly agreeing to a fixed fee, a cost plus fee model, or based upon a percentage of cash collections we make on behalf of our clients, or based on 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 norms, 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.

Advisory, Consulting and Other

Advisory and Consulting provides clients with specialized, value-add real estate consulting services in such areas as occupier portfolio strategy, workplace solutions, location advisory, mergers and acquisitions advisory, asset management, development advisory and master planning activities.

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

Capital Markets

Capital Markets is a full-service global provider of capital solutions creating a world of opportunity for investors and owners of real estate.

As a leading provider of commercial property sales, debt and valuation advisory services, we combine the unique knowledge of our people with the power of collective insight and technology made possible by our fully integrated capital markets platform.

Our broad array of services include (ordered alphabetically):

● Debt advisory ● Loan sales

● Equity advisory (funds and placement, M&A

and corporate advisory) ● Loan servicing

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.

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.

● Equity advisory (funds and placement, M&A and corporate advisory) ● Loan servicing

● Investment sales and advisory ● Valuation advisory

Investment Sales, Debt/Equity Advisory and Other

We provide brokerage and other services for real estate transactions, such as sales or loan originations and refinancing.

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

To meet client demands for selling and acquiring real estate assets domestically and internationally, 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 originating, 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 or consulting services.

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

For the year ended December 31, 2022, we provided capital markets services for approximately $286 billion of client transactions.

Property & Facility Management

Property Management provides on-site management services to real estate owners for office, industrial, retail, multifamily residential and specialty properties.

We seek to leverage our market share and buying power to deliver superior service and value to our clients.

Our extended delivery team includes our own personnel as well as third-party vendors and subcontractors, striving to maintain high levels of occupancy and tenant satisfaction while partnering with clients to reduce property operating costs.

As of December 31, 2021, we provided on-site property management services for properties totaling approximately 3.9 billion square feet.

We typically provide property management services through an on-site general manager and staff.

Our general managers are responsible for day-to-day property management activities, client satisfaction and financial results.

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 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 sustainability targets, improve service delivery and enhance end-user experience.

Our IFM offering focuses on the work, worker and workplace 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.

The scope of IFM solutions offered to clients generally fall within one of the following three categories:

• Full-service IFM outsourcing :

Day-to-day operations management of client site locations, delivered through a globally integrated platform with standardized processes.

Valuation Advisory

Our Valuation Advisory professionals provide several services, including valuation, secured lending advisory, transaction support, data and analytics, development advisory, asset and infrastructure advisory, business valuation, property tax advisory, and restructuring.

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.

Loan Servicing

In the U.S., we are a commercial multifamily lender and loan servicer approved by Freddie Mac, Fannie Mae and Housing and Urban Development/Ginnie Mae (the “Agencies”).

In addition, we are one of only 24 Fannie Mae Delegated Underwriting and Servicing ("DUS") lenders.

We service substantially all the loans we originate and sell to the Agencies, and service loans we did not originate but subsequently acquire the rights to service.

We obtain a periodic fee for each loan we service based on a proportion of the cash collections.

As of December 31, 2022, we serviced a loan portfolio of approximately $134 billion.

Work Dynamics

Workplace Management ("WPM")

As a strategic partner of clients with a multinational footprint, Work Dynamics offers a single, cohesive service-delivery team focused on three key value levers:

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

WPM provides comprehensive facility management services globally to corporations and institutions that outsource the management of the real estate they occupy, typically those with large multi-market portfolios of over one million square feet.

Our WPM offering leverages tech-enabled solutions and focuses on the work, worker and workplace to help clients manage costs, achieve sustainability goals, improve workplace service delivery and enhance end-user experience and performance.

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

WPM solutions offered to clients range from mobile engineering at a single location to a full-service outsourcing, where we execute day-to-day operations management of client site locations, delivered through a globally integrated platform with standardized processes.

Facilities under management cover all real estate asset classes, including corporate headquarters, distribution facilities, hospitals, research & development facilities, data centers and industrial complexes.

As of December 31, 2021, IFM managed approximately 1.6 billion square feet of real estate for our clients.

• Technology-enabled IFM solutions :

Technology is the backbone of our IFM offering.

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.

• Mobile engineering services :

We provide mobile engineering services to clients with large portfolios of sites or where we have multiple clients in proximity to each other.

This model reduces clients' operating costs by offering a single point of contact for services, bundling on-site services, leveraging resources across multiple accounts, and reducing travel time between sites.

IFM contracts are typically structured to include reimbursement for costs of client-dedicated personnel and third-party vendors and subcontractors in addition to a base fee and performance-based fees.

Performance-based fees result from achieving quantitative performance measures and/or target scores on recurring client satisfaction surveys.

IFM agreements are typically three to seven years in duration, although most contracts can be terminated at will by the client upon a short notice period, usually 30 to 60 days, as is typical in the industry.

Project & Development Services provides consulting, design, management and build services to tenants of leased space, owners in self-occupied buildings and owners of real estate investments, leveraging technology to drive outstanding service delivery.

We bring a "life cycle" perspective to our clients, from consulting and capital management through design, construction and occupancy.

In addition, we provide these services to public-sector clients, particularly to military and government entities, as well as educational institutions, primarily in the U.S.

As of December 31, 2022, WPM managed approximately 1.6 billion square feet of real estate for our clients.

WPM contracts are generally structured on a principal basis (a fixed fee, guaranteed maximum, or reimbursement-based pricing model) but may also be on an agency basis.

Typically, our structures include a direct or indirect reimbursement for costs of client-dedicated personnel and third-party vendors and subcontractors in addition to a base fee and performance-based fees.

Performance-based fees result from achieving quantitative and qualitative performance measures and/or target scores on recurring client satisfaction surveys.

WPM agreements are typically three to seven years in duration and, although most contracts can be terminated at will by the client upon a short notice period (usually 30 to 60 days), a transition period of six to twelve-months is more common in our industry.

We typically experience a high renewal rate, with most clients renewing their contracts at least once;

many of our largest contracts have been in place for more than a decade.

Project Management

Project Management provides consulting, design, management and build services to tenants of leased space, owners in self-occupied buildings and owners of real estate investments, leveraging technology to drive outstanding service delivery.

We also provide services to public-sector clients, notably military and government entities, and educational institutions, primarily in the U.S.

and to a growing extent in other countries.

Predominantly in Europe, we provide design, fit-out and refurbishment services under the Tétris brand.

Our Project & Development Services business is generally compensated on the basis of negotiated fees as well as reimbursement of costs when we are principal to a contract (or client).

We bring a "life cycle" perspective to our clients, from consulting and capital management through design, construction and occupancy via our JLL brand, while we also provide fit-out, refurbishment and design services under the Tétris brand, predominantly in Europe.

Our Project Management business is generally compensated on the basis of negotiated fees as well as reimbursement of costs when we are principal to a contract (or client).

Individual projects are generally completed in less than one year, but client contracts may extend multiple years in duration and govern a number of discrete projects.

Advisory, Consulting and Other

Advisory and Consulting provides clients with specialized, value-added real estate consulting services in such areas as technology implementation and optimization, mergers and acquisitions advisory, 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.

Valuation 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, 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, advising on socio-economic impacts and site locations;

and creating corporate social responsibility and sustainability reports.

The breadth of our 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.

We have a variety of compensation models for Energy and Sustainability Services including those based on shared savings as well as a fee for service, depending on the scale and complexity of the project.

Technology Services help organizations transform the way they acquire, operate, manage, and experience space.

We offer multiple cloud-based software solutions that generate value for occupiers and investors by improving the quality of decision-making through improved data and analytics, delivering unique insights, and improving net operating income.

For example, Building Engines serves as a comprehensive, easy-to-use system that unites all the technology and applications used to run buildings in one place, streamlining work orders, making maintenance more efficient, and simplifying interactions between building tenants, management and staff.

Hank uses machine learning and AI to optimize building energy efficiency, air quality, maintenance costs, and tenant comfort, which ultimately delivers opportunities to reduce operating costs while accelerating the achievement of buildings’ sustainability goals.

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

JLL Marketplace provides more transparency and efficiency to increase the flow of capital and improve quality of services delivered.

Work Dynamics

As a strategic partner of clients with a global footprint, Work Dynamics offers a single and cohesive team to clients in order to bring together services across our RES service lines, including partnering with other JLL professionals to help clients execute leasing and capital markets transactions.

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 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 Work Dynamics 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) 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 Work Dynamics 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 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 Work Dynamics business partners work with other professionals throughout our organization to help clients execute leasing, acquisition and disposition strategies.

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

Our design and 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.

We then manage, and in some cases are responsible for, the successful completion of the fit-out activities to achieve their vision.

Helping our clients manage the costs they incur to realize their space and location objectives is essential to that strategy.

When capital decisions involve a change in location, our relocation management professionals facilitate smooth transitions.

IFM is our largest Work Dynamics service offering.

Composed of integrated, digitally-enabled and flexible services that blend human, digital and experiential elements, this offering helps clients drive enhanced value from their facilities by improving operational performance and the experience of employees and other users of the space.

Most frequently, new client relationships are formed through IFM business wins, which we accomplish through transitions from other service providers or conversions from insourced real estate management models.

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.

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 JLLT 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.

Our three strategic priorities:

• Deliver superior risk-adjusted investment returns to our clients

• Develop and execute investment strategies that meet the specific investment objectives of our clients

• Deliver uniformly high levels of client service globally

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 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").

We also offer global indirect investments, primarily in private equity funds, joint ventures and co-investments, as well as publicly traded real estate investment trusts ("REITs") and other real estate equities.

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 steadfast client focus.

Portfolio Services

Through the suite of services our Work Dynamics business provides to clients via our "One JLL" approach, we gain deep knowledge and extensive data about their corporate real estate footprints, business strategies and organizational priorities.

This knowledge enables our consulting practice to effectively advise clients on how to optimize their workplace strategies and occupancy planning 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, transaction management, lease administration, technology implementation and optimization, and options to add and integrate flexible space solutions.

Our fee structures vary and are based on the point-in-time or over-time nature of services and deliverables provided to our clients.

JLL Technologies

JLL Technologies leverages its comprehensive technology portfolio of software platforms, apps, hardware and technology services, as well as innovations from venture-backed companies, to help organizations maximize their real estate experience.

Services and Software Solutions

We offer professional services including program and project management, implementation and support, managed services, and advisory/consulting services.

We recognize the associated revenue at the time our performance obligation is satisfied, sometimes over the course of multiple years.

In addition, our cloud-based software solutions enable higher-quality insight and decision-making through improved data and analytics, creating opportunities to improve clients' financial performance.

These solutions are typically sold via subscription offerings and we recognize revenue over time, commensurate with the length and terms of the contract.

Examples include:

• Building Engines , a comprehensive system that unites the technology and applications used to manage a building with simplified upstream and downstream user interactions;

• Corrigo , a mobile and desktop-integrated product that enables facility managers to efficiently manage work orders, centralize repairs and maintenance, and automate tasks, all on a scalable level;

• Hank , a technology which uses machine learning and artificial intelligence to optimize building energy efficiency, maintenance costs and tenant comfort, facilitating improved property operating income.

An additional product offering is JLL Marketplace, which enables one-stop shopping for facility product needs and supports ordering, billing and order tracking.

We generate revenue by taking a share from gross market value of all goods and services sold via this platform.

JLL Spark - Investments in Proptech

We incubate and drive property technology (proptech) innovation across the real estate spectrum, supporting the development of an array of products and data analytics tools.

One way we achieve this goal is through strategic investments in proptech funds and early to mid-stage proptech companies, including through our JLL Spark Global Ventures Funds.

We generally report these investments at fair value and include fair value adjustments in our Consolidated Statements of Comprehensive Income within Equity earnings.

As of December 31, 2022, the fair value of such investments was $480.4 million.

Equity earnings for 2022 were $46.6 million.

LaSalle is a global, real estate investment management firm that invests institutional and individual capital in real estate assets and securities with a strategic priority to meet client objectives and deliver superior risk-adjusted returns over market cycles.

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 28 countries around the globe, as well as in public real estate companies traded on all major stock exchanges.

We have invested, on behalf of our clients and ourselves, in real estate assets located in 28 countries around the globe, as well as in public real estate companies traded on all major stock exchanges.

LaSalle provides clients with a broad range of real estate investment products and services, designed to meet the differing strategic, asset allocation, risk/return and liquidity requirements of our clients.

The range of investment solutions are offered either through commingled or single investor strategies and include private and public equity investments and real estate debt strategies structured as private or public open-ended funds or private closed-end funds (commingled funds), separate accounts, joint ventures, or co-investments.

LaSalle's assets under management ("AUM") of $79.1 billion, as of December 31, 2022, by geographic distribution and fund type is detailed in the following graphics ($ in billions).

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 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.

We believe our ability to co-invest alongside our clients' funds aligns our interests and will continue to be an important differentiating factor in maintaining and improving our investment performance and attracting new capital to manage.

As of December 31, 2022, we had a total of $366.5 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 specific hurdles.

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

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 AUM, plus incentive fees in some cases.

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

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

In 2021, our open-ended funds grew nearly 20% and represented approximately 30% AUM as of December 31, 2021.

In 2022, our open-ended funds grew nearly 20% and represented approximately 35% of AUM as of December 31, 2022.

ORGANIZATIONAL PURPOSE

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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.

Our purpose guides our strategic growth vision and informs our response to the long-term macro trends which maintain prevalence in the real estate industry at all points in the economic cycle, remaining relevant during and since the COVID-19 pandemic and through the global economic downturn which began in early 2022.

These trends and our strategic framework are summarized below.

INDUSTRY TRENDS

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.

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

Each of these trends has a multi-year lifespan, and while the COVID-19 pandemic and subsequent economic volatility have acted to slow some and accelerate others, we expect all five trends to maintain their long-term trajectory and relevance over the next decade.

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.

While the initial impacts of the pandemic slowed all transactional markets during 2020, this trend strongly reasserted in 2021.

As we move into the post-pandemic economy, pension companies and other institutional investors and capital sources continue to be drawn to real estate's attractive returns and distinctive investment characteristics.

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.

1 Prospects Report - United Nations Department of Economics and Social Affairs, May 2018.

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, the steady long-term trend towards outsourcing which began in the early 1990s, originally with U.S.-based corporations, is now a global trend.

While corporate outsourcing of real estate services still represents the minority 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.

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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 technology 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 flux by the initial onset of 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.

At present, we are already seeing 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.

Rising investment allocations and globalization of capital flows to real estate

In the years following the 2008 Global Financial Crisis, as investors reappraised investment allocations and priorities, real estate emerged out of its previous "alternative investment" classification to become a major defined asset class of its own.

This began a sustained long-term trend of rising investment allocations to the real estate sector.

While significant global and market events such as the initial onset of the pandemic in 2020 and economic downturn of 2022 have significant near-term impacts on real estate investment transaction volumes, the deeply engrained long-term trend has quickly and strongly reasserted itself in recent history.

As we move into 2023, there remains a substantial amount of capital seeking the right opportunities to access real estate's attractive returns and distinctive investment characteristics.

Following a period of repricing, we anticipate significant upswing in transaction volumes and reestablishment of the long-term trend in capital flows into real estate.

Complementing this, we anticipate increased 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.

While urban life and the long-term global trend of migration into the world's major cities was thrown into flux by the initial onset of the pandemic, its foundations are deep and a dynamic future is already taking discernible shape.

Cities continue to provide the concentrations of culture, diversity, opportunity, facilities and creative expression to attract strong inflows of ambitious and aspirational people.

While work patterns and preferences will continue to rapidly evolve, driven in part by new possibilities created by technology and the widespread adoption of flexible working, cities will thrive as they deliver on people's lifestyle and economic ambitions, characterized by vibrant and reimagined office, cultural, retail and residential profiles.

In October 2022, the World Bank's latest Urban Development update predicted that 70% of people worldwide will live in cities by 2050, up from 56% as of the report date.

With that growth will come 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.

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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.

The real estate industry is affected in many ways including, for example, (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.

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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 more detailed research, case studies and information, including JLL's commitment to net-zero carbon operations for our leased offices and updates on progress toward achieving our broader net-zero emissions target, which was certified to the new Net-Zero Standard by the Science Based Target initiative ("SBTi") in 2021.

Refer to our annual Global Sustainability Report, available on our website, for further information.

STRATEGIC FRAMEWORK

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, Technology, People and Values – which collectively support and drive our ambitious long-term growth trajectory.

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

Our Strategic Vision for Long-Term Sustainable and Profitable Growth

We successfully completed a multi-year transformation program building fully integrated global organizational structures for all our business lines and functions.

As a result, 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.

Since initiating our Beyond strategic plan in 2017, we successfully completed a multi-year transformation program building fully integrated global organizational structures across our business lines and functions.

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 the height of the pandemic and the subsequent economic recovery, JLL’s status as trusted adviser and partner to our clients has been readily apparent.

Clients turned to us for solutions and insights to adapt their real estate strategies and operations to weather 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.

Guided by our Beyond strategy, we are making continued 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.

Our “One JLL” philosophy formalizes how our teams engage with each other and enables us to deliver the best capabilities to our clients.

Under “One JLL” our teams go to market together, which allows us to seamlessly serve clients across business lines and geographies.

The unique culture that is created under “One JLL” helps us attract and retain talent.

This talent, combined with our integrated full-service platform, creates an agile global business that operates as “One JLL.”

Our extensive biannual global client surveys (which we call Client Voice) and ongoing monitoring of net promoter scores repeatedly demonstrate JLL’s status as trusted adviser and strategic business partner.

Clients turn to us for solutions and insights to optimize their real estate strategies and support their operational needs and growth strategies.

Our industry leading research capabilities and data analytics equip JLL's people to enable clients to SEE A BRIGHTER WAY.

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, member of the World Green Building Council and a founding partner of Bloomberg Green.

In November 2021, JLL actively supported the UN climate negotiations and participated in the events surrounding COP26 in Glasgow, UK.

Further, in February 2022, 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).

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

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

JLLT 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.

The group offers multiple cloud-based software solutions that generate value for occupiers and investors by improving the quality of decision-making leveraging data and analytics, delivering unique insights, and reduce operating costs.

During 2021, we strengthened our tech capabilities and broadened our offerings by acquiring:

• Skyline, a leading artificial intelligence technology company which uses proprietary machine learning models to gain a competitive advantage in the origination and analysis of real estate opportunities for our producers

• Building Engines, a leading building operations platform

• Hank, a virtual engineering platform focused on sustainability.

Additionally, we continue to be committed to the Spark Global Venture funds, which incubate and drive proptech innovation as well as an increasing array of advanced market-leading technology products and data analytics tools.

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 benefiting all areas within our enterprise.

Supporting this goal, we are an active strategic partner of the World Economic Forum, playing a key role in its Real Estate and Investment industry groups and its Alliance of CEO Climate Leaders among other areas of engagement.

In February 2022, Fortune magazine again named JLL as one of the World’s Most Admired Companies and in April 2022 Ethisphere named JLL as one of the World's Most Ethical Companies for the 15th consecutive year, while in December 2022 the Drucker Institute listed JLL as one of the top 50 best managed companies in America (refer to the Distinguishing Attributes and Competitive Differentiators section below for additional awards and recognition during the past year).

JLL embraces technology to deliver value for our clients, people and shareholders.

Technology is core to our growth strategy as reflected in our significant investments in JLL Technologies.

With a comprehensive portfolio of purpose-built solutions, unparalleled industry expertise and leading-edge, venture-backed companies, JLL Technologies enables organizations to achieve exceptional building performance, accelerate the path to net zero and optimize spaces for the future of work.

JLL Technologies is a global leader in proptech, expanding and refining our technology capabilities to deliver significant competitive advantages and value for our company and our clients, across all business lines.

The technology and data solutions we provide include multiple cloud-based software products that generate value for occupiers and investors by leveraging data and analytics to improve the quality of decision-making, deliver unique insights and reduce operating costs.

Additionally, we continue to be committed to the JLL Spark Global Ventures Funds, the offerings of which are further discussed in Our Services and Business Segments.

Visit our websites at www.jll.com and www.jllt.com to see the full portfolio of technology services.

The substantial platform technology investments we made in the early phases of our Beyond journey are benefiting all areas within our enterprise by improving efficiency of our producers, increasing margins, growing market share of our existing businesses and enabling entry into adjacent markets with new business models.

People & Values

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.

Global economic recovery during 2021 has further accelerated the war for talent, resulting in highly fluid and competitive recruitment markets.

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

Our commitment to promoting and achieving true diversity and inclusion is exemplified by achieving 25% female representation amongst our top 100 leaders.

In the world's major markets across most industries, declining working age populations and long-term economic growth continue to drive competition for talent, resulting in highly fluid and competitive recruitment markets.

A successful enterprise-wide coordinated talent strategy is central to our Beyond vision and delivery.

This strategy ensures JLL is positioned as an employer of choice for top talent, achieving and sustaining a diverse, inclusive and collaborative culture that strongly appeals to our people and our clients alike.

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

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 strong ESG, including ambitious goals and regular transparent reporting.

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

Sustainability

With the built environment responsible for around 40% of carbon emissions according to the International Energy Agency, the real estate industry must play a central role in enabling companies, communities and cities to deliver their net zero goals.

More broadly, ESG is now a major priority for our investor and occupier clients who are looking to reduce investment risk and increase their resilience in the face of global social and environmental challenges.

JLL has established comprehensive global capabilities delivering sustainability advice and solutions to clients around the world and advocating ambitious target setting and delivery to ensure the real estate industry plays its part in achieving a sustainable global future for all.

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.

Building on this pledge, in October 2021, the SBTi certified our commitment to reach net zero greenhouse gas emissions across our value chain by 2040.

This places JLL among a select group of global companies to be recognized for aligning its net zero commitments with climate science.

This made JLL one of the first global companies to be recognized for aligning its net zero commitments with climate science.

Within this overall target, JLL has committed to:

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A long-term target to reduce absolute scope 1, 2 and 3 emissions by 95% by 2040 from a 2018 base year

We have earned repeated recognition from organizations such as the Ethisphere Institute, which has named JLL as one of the World’s Most Ethical Companies every year since 2008.

In addition, during the fourth quarter of 2021, JLL collaborated with the World Economic Forum in establishing 10 Green Building Principles to guide real estate investors and corporate occupiers on implementing and achieving their net zero targets across their portfolios.

Our Beyond priorities for Clients, Brand, Technology, People and Values combine to provide an integrated strategic vision and platform for growth.

Launched in 2021 and updated in 2022, JLL has collaborated with the World Economic Forum in establishing 10 Green Building Principles to guide real estate investors and corporate occupiers on implementing and achieving their net zero targets across their portfolios, demonstrating our commitment and leadership to sustainability within our industry.

We further discuss our issue areas of focus in the next section, Sustaining Our Enterprise:

A Business Model That Considers All Aspects of Stakeholder Value.

Our Beyond priorities for Clients, Brand, Technology, People & Values and Sustainability combine to provide an integrated strategic vision and platform for growth.

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.

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It recognizes and leverages the vital part continuing innovations in data and technology will play, ensuring JLL has the products and data-driven insights to lead this wave of change.

Our growth strategy and strategic vision places a central focus on diversity and inclusion, ensuring we attract and retain a truly diverse, inclusive and talented global workforce, committed to inspiring each other and delivering outstanding results for our clients.

All of which is infused through our closely integrated global platform and vibrant business culture, combining deep local market knowledge with seamless advice and services tailored to each client’s specific needs.

Our growth strategy and strategic vision places a central focus on diversity, equity and inclusion, ensuring we attract and retain a truly diverse, inclusive and talented global workforce, committed to inspiring each other and delivering outstanding results for our clients.

SUSTAINING OUR ENTERPRISE:

A BUSINESS MODEL THAT COMBINES DIFFERENT CAPITAL TO CREATE STAKEHOLDER VALUE

A BUSINESS MODEL THAT CONSIDERS ALL ASPECTS OF STAKEHOLDER VALUE

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.

Our Global Sustainability Program

Our organizational purpose - we shape the future of real estate for a better world - has deep roots in our identity and history and is the guiding principle informing our sustainability program.

In 2021, we initiated a comprehensive review of our sustainability approach, soliciting input from a variety of internal and external stakeholders.

The result was an updated program that is purpose-driven, issues-based and impact-assessed.

We bring our purpose to life by collaborating with our stakeholders on three core issue areas where we can deliver the greatest impact:

(1) climate action for sustainable real estate, (2) healthy spaces for all people and (3) inclusive places for thriving communities.

In addition, we have adopted a new governance structure which underpins the delivery of the program and is aligned to the global structure of our business.

This will move us closer to fully embedding sustainability into the way we operate and supporting 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, Equity and Inclusion

Sustainable buildings 2.

Corporate culture & reputation

Our sustainability program focuses on three issue areas that directly align to our purpose and JLL's corporate strategy.

Each area is supported by targets and delivered by global business lines and corporate functions.

• Climate action for sustainable real estate:

We take urgent climate action that accelerates the transition to net zero, enhances performance, mitigates risks and helps shape a better world.

• Healthy spaces for all people:

We create safe and healthy spaces that promote productivity, well-being and sustainability.

• Inclusive places for thriving communities:

We provide fair and inclusive places that create positive social impact and equal opportunities.

Four principles underpin our program and demonstrate how we will deliver a positive impact for our stakeholders and lead our sector on sustainability.

Being a responsible business:

Being a responsible business is central to our values and everything we do.

Leading by example gives us the credibility to talk to our clients and advance industry action on sustainability.

Harnessing the power of our people:

We harness the power of our people and equip them with the skills and tools to inspire positive change and create a better world of work where people can thrive.

Driving change through client solutions:

We drive change through client solutions to maximize impact, collaborating to transform and transition toward more sustainable outcomes.

Advocating for a better real estate sector:

We advocate for a better real estate sector by driving demand for sustainability, demonstrating thought leadership and engaging the industry, governments and society on the issues that matter most.

We undertake a periodic assessment of our sustainability issues to ensure that our program and targets address the key impacts of our business and what matters most to our stakeholders.

Through this process of market evaluation and direct stakeholder input, we identify the most important ESG issues that inform our evaluation of additional opportunities for impact beyond our already ambitious net zero commitment, which are detailed below.

● Adaptation and resilience

Ethics and compliance

Healthy buildings

Innovation and technology

Responsible supply chain 5.

Employee well-being

These results will continue to inform our evaluation of additional opportunities for impact beyond our already ambitious 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 2022 at which time it will be available on our website.

Generating sustainable value for our clients.

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.

● Employee well-being ● Healthy buildings

● Corporate culture and reputation ● Energy and climate

● Responsible procurement

● Diversity, Equity and Inclusion ● Ethics and compliance ● Sustainable buildings

Our approach and performance in relation to these issues, including progress against targets, will be covered in detail in our annual ESG Report, due for publication in the second quarter of 2023, available on our website.

Creating Sustainable Value for Clients, Shareholders and Employees

We have designed our business model to (i) create value for all our stakeholders, (ii) establish high-quality relationships with the suppliers we engage and the communities in which we operate and (iii) respond to macroeconomic trends impacting the real estate sector.

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.

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

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

In response to this demand, we have expanded our focus on energy and sustainability capabilities to provide 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 sustainability and decarbonization products that create differentiated value for our clients, deliver accelerated revenue growth and margin expansion for JLL, and help make the global real estate industry more sustainable.

This group, working in conjunction with our business lines, geographical leaders and operations teams, develops and enhances our client offerings and is responsible for scaling up our services in the sustainability space and driving global consistency and best practices.

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 & 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.

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

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 technology, 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 2021.

In 2022, JLL will see further investments to simplify, streamline and enhance our tech capabilities.

Creating sustainable value for all our stakeholders

We have designed our business model to (i) create value for our clients, shareholders and employees, (ii) establish high-quality relationships with the suppliers we engage and the communities in which we operate, and (iii) respond to macroeconomic trends impacting the real estate sector.

Based on our intimate knowledge of local real estate and capital markets worldwide, as well as our investments in thought leadership and technology, we create value for clients by addressing their real estate needs as well as their broader business, strategic, operating and longer-term sustainability goals.

"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.

We use these resources in the context of our mission and vision to deliver services - or outputs - for our clients through the business activities we manage.

We apply our business model to the resources and capital we employ to provide services.

We provide these services through our own employees and, where necessary or appropriate in the case of Property & Facility Management and Project & Development Services, through the management of third-party contractors.

The revenue and profits we earn from those efforts are allocated among further investments in our business, employee compensation and returns to our shareholders.

We are increasingly focused on linking our business and sustainability strategies to promote the goal of creating long-term value for our stakeholders, including shareholders, clients, employees, and the global community of which JLL is a part.

These efforts help our clients manage their real estate more effectively and efficiently, promote employment globally and create value for our shareholders and employees.

In turn, they allow us to be an increasingly impactful member of, and positive force within, the communities in which we operate.

Our Canopy platform is used to manage the ever-increasing volume of sustainability data on behalf of our clients.

This reflects our commitment to investing in technology, data and information management platforms.

By deploying flexible technology solutions, we measured, managed and improved environmental impacts for thousands of buildings in 2022.

In 2023, we will continue investments to simplify, streamline and enhance our tech capabilities.

Our sustainability program is aligned with our purpose and corporate strategy to create long-term value for our stakeholders, including shareholders, clients, employees and communities.

Through this, we help our clients manage their real estate more effectively and efficiently, promote employment and create value for our shareholders and employees.

We operate across a wide variety of highly competitive business lines within the commercial real estate industry globally.

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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-perform their real estate services with in-house capabilities.

We also face competition from companies who may not traditionally be considered 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

We deliver exceptional strategic, fully-integrated services, best practices and innovative solutions for real estate owners, occupiers, investors and developers worldwide through an integrated global platform.

We invest in technology and data capabilities that enable our people to be more productive and provide clients the best insights.

These characteristics among others distinguish us from our competitors, drive service excellence and customer loyalty, and demonstrate our commitment to a sustainable future.

While we face formidable competition in individual markets, the following are key attributes differentiating JLL for clients seeking real estate and investment management services across the globe.

• Our focus on client relationship management to provide superior client service on a highly coordinated basis

• Our globally-integrated business model with local market knowledge, including a highly diverse set of service offerings, enabling our ability to deliver expertise wherever our clients need it

• Leadership in leveraging technology to enhance the services we provide our clients and the way we operate

• The strength of our brand , including our reputation as an ethical organization

• The strength of our financial position

• Our focus on sustainability , 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 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 strategic focus on our most critical resource, our employees

• The quality of our internal governance and enterprise risk management , which clients can rely on over the long term

The following is a detailed discussion of these distinguishing attributes and competitive differentiators.

Client Relationship Management

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

Our clients are the center of our business model, and we enable superior service delivery through ongoing investments in the people, processes and tools that support client relationship management.

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 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.

Our client experience management platform allows us to gather, understand and act on our clients' feedback

Our goal is to provide a holistic understanding of our clients' needs across our business, drive a customized experience and identify a single point of contact at JLL to be accountable for all the activities we undertake for each 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 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 .

Globally Integrated Business Model & "One JLL"

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 opportunities across geographies and service lines that we expect will continue to develop new revenue sources and growth.

With operations spanning the globe, our in-depth knowledge of local and regional markets and "One JLL" approach - leveraging the ability and connectivity of our people - can provide services which address the entire life cycle of real estate around the world.

"One JLL" enables cross-selling opportunities across geographies and service offerings that we expect will continue to develop new revenue sources and growth.

Technology Leadership

Technology is transforming commercial real estate and CRE technology strategy is top of mind for our clients.

We are focused on curating an industry-leading technology portfolio to tech-enable JLL and our clients by innovating and building technology solutions internally as well as by partnering with, investing in, or selectively acquiring market leading proptech companies.

Our unique technology strategy empowers our clients and creates material differentiation for our company while leading the transformation of our industry.

Some examples of this include:

• A proprietary technology solution that drives higher productivity for our leasing brokers within Markets Advisory

• A proprietary technology platform that generates leads and insights for advisors in our Capital Markets business and helps us identify and win new business

• Corrigo, one of our software offerings, helps improve client outcomes and drive cost efficiency for our Work Dynamics business

In addition, through our JLL Technologies business, we offer a comprehensive set of products - including Building Engines, Corrigo, Hank - and services for Investor and Occupier clients.

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 2021 we acquired Skyline AI, which uses proprietary machine learning models to gain a competitive advantage in the origination and analysis of real estate opportunities for our producers.

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.

Our investments are focused on both platform and client-facing technology.

Further, 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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The integrity our brand represents is one of our most valuable assets and a strong differentiator for JLL.

The JLL name is our primary trading name;

Jones Lang LaSalle Incorporated remains our legal name.

Using the shorter JLL name facilitates its adaptation to different communication styles in different countries, languages and channels and especially to the use of digital and online channels for marketing and communications.

We unveiled our global brand idea SEE A BRIGHTER WAY in November 2022 which embodies our commitment to bring optimism, innovative ideas and unmatched intelligence in everything we do for our clients.

Employee Engagement

Our people are united by our purpose to shape the future of real estate for a better world.

Our purpose combined with our strategic focus on People, Technology and Workspaces positions us for exciting business growth.

Embedded in everything we do are our values:

Teamwork, Ethics and Excellence.

Driving the best people experience is imperative, enabling our employees to continue to grow with JLL while also feeling part of an inclusive and collaborative culture.

Our goal-setting framework uses three categories of goals (clients, growth and people) that align our people’s efforts with enterprise-wide strategy throughout all levels of the organization and builds focus and attention on our priorities.

Ongoing employee feedback is important to the continued improvement of our organization and to harness this valuable feedback, we conduct an all employee survey regularly, measuring key aspects such as engagement, leadership, inclusiveness and well-being.

Financial Strength

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This further differentiates JLL from firms with more limited service offerings or that are only local/regional and must rely on fewer markets or services.

Confidence in the financial strength of long-term service providers is important to our clients, who require financial strength when they select real estate service providers.

Confidence in the financial strength of long-term service providers is important to our clients, who require this when they select real estate service providers.

We focus on maintaining financial performance metrics, particularly our leverage and debt service coverage ratios, that support investment-grade financial ratings.

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Our issuer and senior unsecured ratings as of December 31, 2022 are Baa1 from Moody’s and BBB+ from S&P.

Accordingly, our ability to present a superior financial condition distinguishes us as we compete for business.

Accordingly, our ability to present a strong financial condition may distinguish us as we compete for business.

We have ample capacity to fund our business.

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Focus on Sustainability

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.

Leading on sustainability is fundamental to both our purpose and our long-term growth strategy with a strong correlation to the success of our business.

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

That commitment was reinforced in October 2021 when we were one of only seven companies globally to have our science-based net-zero target verified by the SBTi.

In addition and as part of our commitment to sustainability, in 2018, we announced our support of the Taskforce on Climate-related Financial Disclosure ("TCFD").

Starting in 2019, we began our multi-year analysis to evaluate (with subsequent refinements) the potential risks and opportunities to our business resulting from climate change in alignment with TCFD.

• In 2019, we identified seven top climate-related risks and opportunities and analyzed the impacts of two climate scenarios:

(1) an aggressive mitigation scenario resulting in <2° C warming and (2) an intermediate mitigation scenario resulting in 2° - 3.7° C warming by the end of the century.

• Then in 2020, we expanded our analysis to quantify climate-related physical perils to the headquarter locations of our top eight countries by revenue and, based on stakeholder feedback, added a worst-case climate scenario with >5° C warming.

• Most recently in 2021, we conducted a quantitative climate scenario analysis estimating the financial impacts of physical risks (temperature, sea level rise and extreme climate shocks) in ten higher-risk cities and transaction risks and opportunities (carbon pricing, climate technology disruption, climate change consultancy and climate migration) globally by 2030 and 2050.

Based on rapidly evolving climate science and market trends, in 2021 we updated our aggressive mitigation scenario (<2° C warming) with a net zero scenario that aligns with the goal to limit warming to <1.5° C.

We anticipate lower climate-related financial risks to JLL 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.

Our findings were published in the first and second TCFD reports included within our 2019 and 2020 Global Sustainability Reports, respectively, and in 2022 these findings will be published in our first standalone TCFD report.

These reports are available on www.jll.com .

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

We address our ESG performance by putting our sustainability program into action, 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 .

As part of our commitment to sustainability, in 2018 we announced our support of the Taskforce on Climate-related Financial Disclosures ("TCFD").

Starting in 2019, we began a phased approach to evaluate (with subsequent refinements) the potential risks and opportunities to our business resulting from climate change in alignment with the TCFD recommendations.

Our first phase report in 2019 considered climate impacts on our business from a qualitative perspective, while our second phase report in 2020 assessed the physical effects of climate change on some of our most prominent office locations.

The findings were published in JLL’s Global Sustainability Report for each respective year.

In 2022 we published the findings of a quantitative assessment of climate opportunities and risks to our business in a standalone report.

Our 2022 ESG Report provides a summary of the potential risks and opportunities to our business identified through this analysis, as well as information on our management approach, metrics and targets aligned to the recommendations of the TCFD.

The report also provides information on our management approach and performance against the three issue areas that underpin our sustainability program, and additional ESG impacts identified through our sustainability materiality review.

Industry-Leading Research and Data 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 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.

With approximately 550 research professionals who gather data and cover market and economic conditions around the world, we are a leading adviser within the commercial real estate industry.

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

We continue to devise and invest in new approaches through data science techniques and other technology to make our research, services and property offerings more readily available to our people and clients.

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the world's leading real estate owners, occupiers, investors and developers.

Employee Engagement .

Our people are united by our purpose to shape the future of real estate for a better world.

As individuals and as teams, we celebrate what we do every day and talk about what can we do for a better world tomorrow.

Our purpose combined with our strategic focus on People, Technology and Workspaces positions us for exciting business growth.

Embedded in everything we do, are our Values, Ethics, Teamwork and Excellence.

Driving the best people experience is imperative, allowing our employees to continue to grow with JLL while also feeling part of an inclusive and collaborative culture.

Ongoing employee feedback is important to the continued improvement of our organization and to harness this valuable feedback, we conduct an all employee survey at least twice annually, measuring key aspects such as engagement, leadership, inclusion index and well-being.

Governance and Enterprise Risk Management.

The Chairman of our Board of Directors is an independent Director and is separate from our CEO, who also serves as a Director.

This structure together with our transparent senior management promotes an environment of best practices in corporate governance and controls.

We believe these attributes allow us to infuse a culture of internal communication and connectivity throughout the organization.

Successful management of any organization's enterprise risks is critical to its long-term viability.

We seek to promote, operate and continually improve a globally-integrated enterprise risk management model that optimizes our overall risk/reward profile through the coordinated and sophisticated interaction of business and corporate functions.

We won numerous awards and recognitions through January 2023 that reflect the quality of the services we provide to our clients, the integrity of our people and our desirability as a place to work.

As examples, we were named:

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

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

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

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

Environmental Protection Agency, for the tenth consecutive year

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

Environmental Protection Agency, for the eleventh consecutive year

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

• A recipient of the Global Outsourcing 100 by the International Association of Outsourcing Professionals (IAOP), for the second consecutive year

• One of the World's Most Ethical Companies by the Ethisphere Institute, every year since 2008

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

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

• A recipient of Procter & Gamble’s (P&G) first-ever Supplier Sustainability Award, recognizing external business partners who play a pivotal role in protecting the planet

• 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 eighth consecutive year

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

• A Military Friendly Employer by VIQTORY, for the fifth consecutive year

• One of the Best Places to Work for Disability Inclusion by Disability:IN and the American Association of People with Disabilities, for the third consecutive year

• A Wall Street Journal Management Top 250 company by the Drucker Institute, for the second consecutive year

• One of America's Best Employers for Diversity by Forbes , every year since 2019

• One of the Best Places to Work for Disability Inclusion by the Disability Equality Index, for the fourth consecutive year

• A member of Seramount’s Inclusion Index, recognizing our dedication and progress to creating an inclusive workplace

• One of America’s 100 Most Sustainable Companies by Barron’s, for the third consecutive year

• To the Wall Street Journal's Management Top 250 ranking, for the third consecutive year

• Best Compliance and Ethics Program by Corporate Secretary Magazine

INTEGRATED REPORTING

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The mechanisms we use to make our clients comfortable with respect to our transparency and fair dealing are summarized in our Ethics Everywhere Annual Report.

The behaviors and standards we expect of our employees and of the suppliers we engage for our own company and on behalf of clients are presented in our

Code of Business Ethics and our Vendor Code of Conduct.

The behaviors and standards we expect of our employees and of the suppliers we engage for our own company and on behalf of clients are presented in our Code of Business Ethics and our Vendor Code of Conduct.

We publish details of our ethics program and ethics statistics in our Ethics Everywhere Annual Report to increase transparency and understanding of the types of concerns and issues raised through our reporting channels.

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

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

Historically, we have reported a relatively smaller revenue and profit in the first quarter with both measures increasing during each of the following three quarters.

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.

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 can be unpredictable).

Generally, we recognize incentives fees when assets are sold or as a result of valuation increases in the portfolio, the timing of which may not be predicable or recurring.

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.

Our seasonality excludes the recognition of investment-generated performance fees and realized and unrealized investment equity earnings and losses.

Specifically, in our LaSalle business, we recognize incentives fees when assets are sold or as a result of valuation increases in the portfolio, the timing of which may not be predictable or recurring.

In addition, investment equity gains and losses are primarily dependent on underlying valuations, and 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.

In 2020 and 2021, macroeconomic conditions influenced by the COVID-19 pandemic impacted the historical seasonality of our revenue and profits.

By the end of 2021, the historical seasonality trends began to return.

Other factors may affect seasonality.

For example, in 2020 and 2021, macroeconomic conditions influenced by the COVID-19 pandemic impacted the historical seasonality of our revenue and profits.

In the second half of 2022, we experienced disruption to our historical seasonality trends due to rising interest rates and widespread economic uncertainty.

HUMAN CAPITAL

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

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 3,100 property maintenance employees in the United States, 78% of whom are reimbursable.

Specifically, reimbursable employees include many of our WPM and Property Management professionals, inclusive of our building maintenance employees.

Our employees do not report being members of any labor unions, with the exception of approximately 3,400 property maintenance employees in the United States, over 75% of whom are reimbursable.

As of both December 31, 2022 and December 31, 2021, approximately 65% of our employees were based in countries other than the United States.

Diversity, Equity and Inclusion (DE&I)

We have a steadfast commitment to a more diverse and inclusive future, which is core to our purpose of shaping the future of real estate for a better world.

We are focused on accelerating a culture of DE&I by holding ourselves accountable, setting short-term and long-term goals and taking comprehensive action - ultimately providing environments where all of our people feel they belong, creating a company culture we are proud of, and enabling higher performing teams.

Diversity, Equity and Inclusion (DEI)

At JLL, diversity, equity, and inclusion are core to our purpose of shaping the future of real estate for a better world.

Our vision is for a culture where differences are valued, people feel that they belong, and authenticity thrives across the communities where we live and work.

We have embarked on a strategic DEI journey that includes focusing on our workforce, workplace and marketplace.

We have enhanced our commitment to DEI by revamping our strategy and strategically focusing on talent, culture and clients.

Some examples of our actions and progress include:

• Continued to advance our gender diversity

• Continued growth of diversity efforts

◦ 36% of our global workforce is female

◦ 45% of our independent board members are female

◦ Half of our largest eight countries are led by female CEOs

◦ Signed the Commercial Real Estate Women (CREW) Pledge for Action to support the advancement of women in real estate

◦ Published our fourth Gender Pay Gap report in the UK

• Support Business Resource Groups in all three regions provide a supportive and safe platform to navigate career development and facilitate networking

• Offer targeted development programs for female and diverse talent, including Black Leadership Summit, Women's Leadership Summit and an inaugural Latinx Summit

• Launched programs to break down financial barriers for underrepresented populations to entering the real estate industry, including a college loan repayment program and an investment fund for entry-level compensation to supplement the industry's traditionally commission-based salary models

• Continue to be recognized for our commitment to diversity;

◦ 83% of our independent board members are female and/or an ethnic minority

◦ Three of our largest eight countries are led by female CEOs

◦ In 2021, signed the Commercial Real Estate Women (CREW) Pledge for Action to support the advancement of women in real estate

◦ Published our fifth Gender Pay Gap report and third Ethnicity Pay Gap report in the United Kingdom

• Supported Business Resource Groups to provide supportive and safe platforms to navigate career development and facilitate networking

• Continued the rollout of programs to break down financial barriers for underrepresented populations entering the real estate industry, including a college loan repayment program and an investment fund for entry-level compensation to supplement the industry's traditionally commission-based salary models

• Continued recognition of our commitment to diversity;

refer to the Distinguishing Attributes and Competitive Differentiators section above for awards and recognition during the past year

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

Further, just as our business needs to constantly evolve, so too does the learning and leadership development venues and products that we use to serve the business.

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

In 2019, we launched Real Leadership, our end-to-end platform that helps our employees grow their leadership skills from frontline to executive.

This award-winning program has served over 10,000 employees worldwide with 10 different programs including partnerships with Harvard, Stanford, and many other prestigious partnerships.

In addition, we continue to upskill our workforce on future focused skills, ensuring our employees worldwide have the development they need whether for technical or professional development leveraging our JLL Virtual Learning library.

Nearly 90,000 employees annually have been able to learn, in seven different languages, through our virtual on-demand offerings this year.

Our total learning platforms have resulted in over 2 million learning assets consumed to accelerate our development of our employees.

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

Our employees can self-assess and be assessed against these capabilities to participate in our award-winning development platform, Real Leadership, which was launched in 2019.

Real Leadership is an end-to-end platform that helps our employees grow their leadership skills from frontline to executive.

It has served over 10,000 employees worldwide with 10 different programs including partnerships with Harvard, Stanford, Cambridge University, IMD Business School and many other prestigious partners.

As our business has evolved, so too have our broader learning and development platform and products.

We continue to upskill our workforce on future-focused skills, ensuring our employees worldwide have the development they need, whether for technical or professional development, leveraging our JLL Virtual Learning library.

Nearly 90,000 employees annually have been able to learn, in seven different languages, through our virtual, on-demand offerings about topics such as, but not limited to, sustainability, technology and the future of work.

Our learning platforms have resulted in over 2 million learning assets consumed to accelerate the development of our employees.

Launched in 2020, and refreshed in 2022, our well-being framework consists 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.

Since its launch, the Well-being site has over 27,000 unique users and has had 177,000 visits.

In addition, we implemented well-being training for managers across the globe.

As we navigated the challenges of the COVID-19 pandemic over 2021, we continued our efforts to elevate the care for our people and support their well-being.

We added resources to our JLL Well-being site, including self-care tips, information about employee assistance programs, webinars on stress management and guidance for managers about leading through uncertain times.

We also continued to build out resources for working caregivers and grew our new business resource group, PACE – Parent and Caregiver Experience.

Through our two people surveys, we also continued to listen to our people and understand how they were feeling about their health, safety and return to the office.

More than 80 percent of our employees told us they would like to be at a JLL office or at a client site full-time or on a hybrid schedule, and we have continued to welcome employees back to our spaces, in accordance with local mandates and guidelines, to drive innovation, collaboration and networking.

Through our well-being sites, employees across the globe can leverage helpful resources, presented live and virtually, on such topics as mental health, financial education and resources for caregivers.

Health and Safety

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R – Recognize safe performance.

To monitor the strength of our safety culture, in 2021 we benchmarked our organization against data from other companies using the UK Health and Safety Laboratory’s Safety Climate Survey Tool.

Our global survey received over 12,500 responses and showed our culture continued to be in the 95th percentile when compared against the all-industry scores and exceeded the 2020 highest average scores for Real Estate & Facilities Management organizations.

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 2022, compared with the U.S.

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• There were zero JLL employee workplace fatalities reported in 2022.

We continue to react to the ongoing COVID threat and now have robust procedures in place that ensure the safety of JLL employees and enable us to react to local situations and legislation changes as they happen.

This includes the ability for employees to have flexible working that is also beneficial to their personal well-being.

JLL began a journey toward the WELL building standard in 2017 with the certification of our New York City office.

Now, with over 19 offices certified or in progress across the globe, we are more committed than ever to lead the market and invest in technology to build healthy workplaces for our people and our clients.

Over the past several years, we have strengthened our commitment to health and wellness and enrolled our own assets into the WELL Portfolio Program, expanding from APAC to North America and now including EMEA.

Our WELL Portfolio now covers more than 4,000,000 square feet, impacting 23,550 JLL employees in well over 250 offices.

We have pushed ourselves to be transparent about our performance, acknowledging both areas of success and where we have room for improvement.

WELL Portfolio has allowed us to have a reputable, and equitable, way to benchmark our performance against science-based methodology and create a roadmap for ongoing improvement.

Since 2012, we have benchmarked the strength of our safety culture against data from other companies using the U.K.

Health and Safety Laboratory’s Safety Climate Survey Tool.

Our global survey received over 11,500 responses in 2022 and showed our culture continued to be in the 95th percentile when compared against the all-industry scores and exceeded the 2021 highest average scores for Real Estate & Facilities Management organizations.

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

Since JLL's first WELL certification in 2017, we continue to be committed to providing healthy workplaces for our people and have enrolled additional assets in the WELL program.

By the end of 2022, JLL had a total of five Platinum Certified

Offices and one Gold Certified Office.

JLL's WELL at Scale (formerly WELL Portfolio) program covers 4.3 million square feet, impacting more than 35,000 employees in over 270 offices worldwide.

WELL at Scale made it possible to evaluate the performance in a trusted and unbiased manner against a science-based methodology and create a roadmap for continuous improvement.

WELL at Scale is applied globally and makes well-being features available to all office employees.

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 to conduct the material aspects of our business globally.

We hold the "Jones Lang LaSalle," "JLL," "LaSalle Investment Management" and "LaSalle" 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.

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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 2031.

Based on our most recent trademark registrations, the JLL mark would expire in 2024 and the Design (Three Circles) mark would expire in 2031.

Our LaSalle and LaSalle Investment Management marks will expire in 2026.

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• Separation of Chairman and CEO roles, with the Chairman serving as Lead Independent Director

• Required approval by the Nominating and Governance Committee of any related-party transactions

• Required approval by the Nominating, Governance and Sustainability Committee of any related-party transactions

• Executive session among the Non-Executive Directors at each in-person meeting

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

Code of Business Ethics .

The ethics principles that guide our operations globally are embodied in our Code of Business Ethics, which applies to all employees of JLL and the members of our Board.

The Code of Business Ethics is the cornerstone of our Ethics Everywhere Program, by which we establish the operating framework to communicate, monitor and enhance our ethical culture and maintain compliance with our Code.

Code of Ethics.

In 2022, we launched an updated version of our Code of Ethics which sets forth the ethics principles that guide our operations globally and applies to all employees of JLL and the members of our Board.

The Code of Ethics is the cornerstone of our Ethics Everywhere Program, by which we establish the operating framework to communicate, monitor and enhance our ethical culture and maintain compliance with our Code.

We are proud of, and are determined to protect and enhance, the global reputation we have established.

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Since 2008 we have continuously held Ethics Inside™ certification from the Ethisphere Institute, a leading organization dedicated to best practices in ethics, compliance, corporate governance and citizenship.

As previously noted, we have been named to Ethisphere Institute’s list of the World's Most Ethical Companies ™ every year since 2008.

As previously noted, we have been named to Ethisphere Institute’s list of the World's Most Ethical Companies™ every year since 2008 and, in 2022, we received an award for "Best Compliance and Ethics Program" by Corporate Secretary magazine.

Our Whistleblower and Non-Retaliation Policy and our Human Rights Policy also support our values and our commitment to ethical business practices.

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This includes developing means to efficiently survey and compare responses about the ethical environment and riskiness of current and potential suppliers we engage both for our own company and on behalf of clients.

Corporate Sustainability.

Corporate ESG.

We encourage and promote the principles of sustainability everywhere we operate, seeking to improve the communities and environment in which our people work and live.

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These priorities guide the interactions we have with our shareholders, clients, employees, regulators and vendors, as well as with all others with whom we come into contact.

We recognize both the risks and opportunities presented by climate change and seek to address these impacts both in and beyond our business.

We recognize both the risks and opportunities presented by climate change and seek to address these impacts in and beyond our business.

We also work to foster an environment which values the richness of our differences and reflects the diverse world in which we live and work.

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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