Transurban FY18 Sustainability Report

FY18 Sustainability Report

FY18 Sustainability Report Transurban

About this report

Transurban is committed to sustainability and this is our 13th report to date. This year we’ve strived to prepare a more concise and useful report by focussing on the areas that matter most to our key stakeholders. At the same time, we’ve ensured consistency with the Global Reporting Initiative and detailed our contribution to relevant United Nations’ Sustainable Development Goals. The report showcases the wide range of tangible outcomes that have been realised across a range of areas throughout Financial Year 2017/2018 (FY18). The report covers all of our operations and geographic markets as at the end of FY18. Detailed FY18 environmental and social performance data are available separately on our website. The report has undergone limited assurance by KPMG.

There are nine key sustainable development goals that are particularly relevant to our business. We also contribute to most of the remaining eight.

FY18 Sustainability Report Transurban 01

Contents

Energy and climate change 28 Energy performance 29 Climate change management 31 Sustainable procurement 32 Aiming for supply chain excellence 33 Innovation 36 Materials 37 Innovation grants 39 Creating future-ready infrastructure 40 Health, safety and environment 42 Our approach 43 Environmental leadership 45

Message from the CEO About our business

02 03

FY18 progress and performance towards the SDGs 04 Customer and community 06 Stakeholder engagement 07 Customer service 08 Customer hardship 10 Making tolling processes simpler 11 Strengthening communities 12 Safer roads 16 Road safety performance 17 Road safety strategic framework 18 Diversity, inclusion and wellbeing 22 Gender diversity 23 Cultural diversity 25 Wellbeing 26

Governance and benchmarking

48 49 50 51 52 53

Governance

Ratings and benchmarking

Appendices About this report

FY18 community grant recipients

FY18 Sustainability Report Transurban 02

Message from the CEO

• continuing to prepare for the arrival of connected and automated vehicles, and in particular, testing how these vehicles interact with our existing infrastructure (SDG 9) • extending and enhancing our gender diversity and inclusion initiatives, including a pay equity review (SDG 5) • launching a carpooling challenge in partnership with the Banksia Foundation (SDG 11) • achieving Infrastructure Sustainability ratings for two major Australian projects (SDG 11) • leading an industry push towards sustainable construction materials (SDG 12). This work is helping to provide more equitable access to mobility and employment across communities, and minimising the impact our motorways and projects have on the environment. Looking ahead to the 2018–19 financial year, we are refreshing our sustainability strategy to more clearly align our activities with the SDGs and create new momentum for our own ambitious sustainability goals. We are also setting new performance targets to report on over time. Importantly, we are looking to build and grow partnerships in our sector, both nationally and globally, to drive and accelerate progress towards achieving these goals.

As we were preparing this year’s Sustainability Report, the NSW Government chose a Transurban-led consortium as its partner to deliver the new 33 kilometres WestConnex motorway. With the acquisition of WestConnex in September 2018, we now operate 17 motorways across five geographical markets and have nine development projects under way. As a world-leading toll-road operator, we must set the highest standards in everything we do—and particularly in how we are contributing to a more sustainable future for people and our planet. Everything we do from our multi-billion dollar development projects to our grants programs for grassroots community groups considers the lasting benefits that we can deliver to make our cities better places in which to live and to work. In this, our approach is aligned with the United Nations’ Sustainable Development Goals (SDGs), and we remain committed to the United Nations Global Compact. These two global initiatives aim to address the world’s pressing social, environmental and economic challenges. Of the 17 SDGs, we have identified nine that are particularly relevant to us—and we’ve been working to bring our operations further in line with these goals. Some of our key sustainability achievements for FY18 include: • implementing a major program to meet the needs of customers experiencing financial hardship (SDG 11) • making considerable progress towards sustainable procurement processes, including considering modern slavery (SDG 8)

Image: Scott Charlton Chief Executive Officer

Scott Charlton Chief Executive Officer

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About our business

As cities in Australia and around the world grow, we give them room to move. By partnering with government, we provide effective toll roads that help solve transport challenges. Giving people back valuable time they'd otherwise spend in traffic, while easing demand on national budgets (we have invested or committed more than $18 billion since 2012). In business since 1996, we are now a top 15 listed company on the Australian Securities Exchange with 14 roads in Australia and three in North America. Major changes in FY18 We acquired the A25 in Montreal, Canada, a 7.2km toll road and bridge connecting Northern Montreal across the Rivière des Prairies to commercial and residential areas. We began construction on the West Gate Tunnel Project in Melbourne, to provide a vital alternative to the West Gate Bridge and reduce peak travel time by up to 20 minutes.

Image (below): A25 in Montreal, Canada Image (far right): Mini Tunnel Boring Machine (TBM) for the sewer diversion on the West Gate Tunnel Project

Roads

Projects

AUSTRALIA Victoria CityLink

West Gate Tunnel CityLink Tulla Widening * Monash Freeway Upgrade *

New South Wales Cross City Tunnel Eastern Distributor Hills M2 Lane Cove Tunnel M5 South West Westlink M7 M4 † Queensland Gateway Motorway Logan Motorway AirportlinkM7 Clem7 Legacy Way Go Between Bridge

NorthConnex WestConnex †

Gateway Upgrade North Logan Enhancement Project Inner City Bypass

UNITED STATES OF AMERICA Virginia

495 Express Lanes 95 Express Lanes

395 Express Lanes I-95 Fredericksburg Extension ‡

CANADA Montreal A25

* Project completed during FY18 † Acquired in FY19 ‡ In procurement

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FY18 progress and performance towards the SDGs

SDG 3 Good health and wellbeing • Transurban Road Safety Centre partnership with NeuRA • 4.82 injury crashes per 100 million kilometres travelled • 5.03 contractor injuries per million hours • 19,018 proactive health, safety and environment observations by employees • 95 employees trained as Mental Health First Aid Officers SDG 5 Gender equality • 44 per cent female employees across the business • 45 per cent females in senior executive positions • 48 female students participated in our FEET mentoring program • WGEA Employer of Choice for gender equality

SDG 7 Clean and affordable energy • 568,370 GJ energy consumption • 140 kW of renewable energy capacity on Transurban buildings SDG 8 Decent work and economic growth • over $1.6 billion in supply chain spend • no significant pay gap between male and female employees • 6,000 jobs created through major projects • over $800 million of contracts with DBE/SWaM businesses in the USA • $123,000 committed to Aboriginal partnerships

SDG 9 Industry, innovation and infrastructure • two new Infrastructure

Sustainability ratings certified Excellent

• registered for our first

Infrastructure Sustainability Operations rating • four automated vehicle trials underway or completed • one innovation grant completed and two approaching completion • 100 volunteers participated in a tunnel evacuation exercise at Eastern Distributor SDG 11 Sustainable cities and communities • 328,000 hours average workday travel time savings • $1.3 million in community investment • 6,026 hours of employee volunteering • demand notice aggregation initiative will save our customers $36.5 million per year in fees • launched ‘Banksia Ignite’ carpooling innovation challenge

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2 2 5 new projects West Gate Tunnel in Victoria and A25 in Montreal completed projects CityLink Tulla Widening and Monash Freeway Upgrade star GRESB rating highest rated transport infrastructure company

SDG 12 Responsible consumption and production • 220,000 tonnes of EME2 used on the Logan Enhancement Project • began low carbon cement research partnership with Beyond Zero Emissions and Boral • hosted a sustainable materials forum in Queensland SDG 13 Climate action • targeting a 52 per cent reduction in GHG emissions by 2030 (compared with 2016) • risk reviews completed on all Australian assets • on track to respond to the

Task Force on Climate related Financial Disclosure (TCFD) recommendations by end of FY19

Here are a few things we are planning for FY19: • a revised sustainability strategy aligned more closely with the UN Sustainable Development Goals • a waste and materials strategy with targets and metrics • a published revised Climate Change strategy implementing the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) • a new Customer Investment framework • finishing our first Infrastructure Sustainability Operations rating for the Cross City Tunnel • integrating our new assets into our overall sustainability strategy.

A report showing detailed progress against the UN Sustainable Development Goals is available to download here.

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Customer and community

FINISH

More than five million customers use our roads and services each year and we’re striving to make sure these experiences are easy, safe and efficient. We’ve been streamlining our services and creating apps and using new technology to ensure our customers get the best value at every point in their journey. Building strong relationships with communities through anticipating, listening and responding to their needs, is an essential part of delivering benefits and managing some of the more challenging impacts associated with our business. $1.3M hours of employee volunteering in community investment 6,026

hours average workday travel time savings 328,000

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Customer and community

Stakeholder engagement

We are focused on continually improving the ways we acknowledge, understand and respond to stakeholder areas of interest or concern. We work with six key stakeholder groups that are interested in and affected by different aspects of our business. We engage each of these stakeholder groups through a variety of means to confirm our understanding of key issues and opportunities and introduce practical responses.

Key improvements in FY18: • empowering customer choice through improving accessibility and transparency of information on travel options and costs • exploring further ways to support those experiencing or vulnerable to hardship • working with our government partners to achieve better outcomes for all road users from infringement processes, particularly for those financially or socially vulnerable • simplifying information to help customers manage accounts and payments and minimise avoidable fees • continuing to enhance Transurban’s approach to engaging communities around our assets and projects.

Community

Customers

Employees

Government

Investors

Business partners

Material and other relevant UN Sustainable Development Goals for this chapter

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Customer and community

Customer service

5M 4.4/5 94% Australian customers now together on Linkt average customer service rating customer queries resolved during the first contact

With more than eight-and-a-half million people using our roads, an ongoing focus and commitment to customer experience is critical to our business. We continually look to improve our customers’ experience on and off the road. Following the successful introduction of the new Linkt retail brand in New South Wales, this year we extended the Linkt brand and tools into Queensland and Victoria—creating Australia's first national tolling brand. In FY18, our team resolved 94 per cent of customer queries during the first contact, which contributed to our achieving an average customer service rating of 4.4 out of five. Last year, we launched new toll payment management tools into our New South Wales market, along with the new Linkt brand. Our new Linkt-branded tools include a mobile app and a user- experience-enhanced website, along with improved fee structures, improved customer-focused communications and a GPS-tolling experience app, LinktGO. We've also made significant improvements to our customer hardship program. Linkt mobile app The Linkt mobile app now services all of our Australian customers. It's the first of its kind in Queensland and has been well received by customers who increasingly want to manage their toll-road travel through digital channels. In Victoria, the app replaced the CityLink app and offered increased functionality and improved experience. Key features of the new mobile app include: • simple login—supported by fingerprint and passcode options • quick payments—with a swipe option for manual payments

• ability to add and remove vehicles and make updates to personal details

• major incident notification • visual trip history display

• ability to view and export statements. The design of the app has been shaped by extensive research into customer needs and preferences, and we will continue to enhance it based on customer feedback. Response to the app has been positive with more than 400,000 downloads since it was launched. LinktGO mobile tolling Launched in FY18, LinktGO is a world- leading GPS-enabled tolling app for infrequent toll-road users. Our research found infrequent toll-road users are often unfamiliar with toll road travel and payments, and LinktGO was designed to make it easier for these users to travel seamlessly on our roads.

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Customer and community

stay up to date and avoid toll notices or fines. All data and information is stored securely. LinktGO’s innovative and customer- centric approach has been recognised with multiple design and industry awards. Fee changes The FY18 transition to the Linkt brand in Queensland and Victoria came with customer-friendly improvements to our fees and charges. Customers have shared feedback on our fees—and we’ve responded with a clearer and easier to understand fee structure. As part of the changes, a card- payment surcharge was introduced. The surcharge is a straight pass- through of costs from our financial institution for payments by credit and debit cards. We have promoted fee-free options (such as direct debit payments from their nominated bank accounts) to our customers.

LinktGO allows drivers to view their toll travel at the end of their journey and to pay trip-by-trip via their smartphone, with no ongoing commitment. To use the app, customers register their vehicle and provide their credit card details directly into the app. Using the app requires no paperwork, start-up costs or an e-Tag. And importantly, the app does not require any user interaction while driving. LinktGO can also give users safety warnings and includes built-in safety features that temporarily freeze the app—and delay trip completion notifications—until the phone’s GPS indicates the customer is no longer moving at speed. With LinktGO, customers are covered to drive on toll roads across Australia. Even if their phone’s GPS isn’t detected, or they forget their phone or run out of battery, the app will record their trip details. Payment reminder notifications help customers

Key fee changes QUEENSLAND • removed the $1.19 retail service fee • removed the $1.19 manual top-up fee • reduced the $47.78 tag non- return fee to $15 • reduced the $3.59 fee for out- of-cycle statements to $2.75. VICTORIA • removed the $27.50 minimum annual payment fee • removed the $3.50 additional tag holder fee • reduced the 75c vehicle matching fee to 55c • reduced the $55 tag non-return fee to $15 • reduced the $50 account start- up credit requirement to $25.

Case study Voice of Customer program

We expanded our Voice of Customer (VoC) program during FY18. This program uses a systematic and quantitative approach to better understand customer feedback, delivering unbiased insights into our customers’ experiences and their expectations of our services, products and processes. In FY18, we have included an online customer panel that provides feedback on various topics throughout the year, and customer immersion sessions where we invite customers into our control rooms for a tour and focus group sessions. VoC enables a greater focus on data-driven decision making, supported by deeper insights into customer sentiment. Insights from this program help ensure investments in customer experience are made in areas that will deliver the greatest value. Through VoC, we received around 250,000 pieces of individual feedback from customers during FY18.

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Customer and community

Customer hardship

Helping customers who are experiencing payment difficulties Customers are at the heart of our business and we continually strive to improve the way we serve and support them. We recognise that sometimes customers need additional support with payment difficulties. Transurban’s hardship policy is designed to help customers in financial difficulty due to special circumstances like homelessness, sudden or prolonged illness, chronic unemployment, caring responsibilities or family violence. Our policy is to help customers in financial difficulty, including offering flexible options to help them manage their payment obligations. We encourage customers experiencing payment difficulties to ask for help as soon as possible. Working with community practitioners In FY18, we worked to enhance the way we detect and respond to financial vulnerability in the community, starting with hosting workshops with community- based organisations that are already helping people in hardship. We met with services, financial counselling, emergency relief, and local and state government. Following these workshops, we tested a range of options for reducing tolling debt, including: • employee training to enhance detection and response to customers in likely distress • a dedicated community practitioner line 50 community organisations across Australia including community legal

Image (right): Workshop discussions to improve support for customers experiencing hardship

• a streamlined eligibility process where we can receive advice from community organisations about their clients experiencing hardship • new information materials, designed to aid with understanding the support and payment options we offer to people experiencing financial hardship. In FY19 we will continue with this work and start implementing recommendations. Thriving Communities Partnership In June 2018, we joined the Thriving Communities Partnership (TCP) as a founding partner. This partnership comprises utilities, financial services, telecommunications and transport organisations who are working together to build more resilient communities and stronger businesses. Tolling debt is often just one of multiple debt obligations that burden vulnerable people, and the TCP encourages a holistic approach to helping customers in hardship circumstances.

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Customer and community

Making tolling processes simpler

Tolling legislation varies in each region and we work with governments to improve and simplify customer options. Following changes in New South Wales in FY17 when Linkt was first launched, this year we simplified payments and notifications in Queensland and Victoria. Demand notice aggregation process Transurban Queensland launched a joint initiative with the Queensland Government and Brisbane City Council to aggregate demand notices and the amount of fees that can rapidly increase for some motorists. Historically, Queensland legislation required a demand notice to be issued for each unpaid toll. The introduction of Demand Notice Aggregation (where one demand notice is issued for up to three days of consecutive travel) in the last financial year will result in an estimated 1.7 million fewer demand notices being issued to customers and a reduction of up to $36.5 million per year in fees. Changing toll enforcement processes In 2018 we worked with the Victorian State Government to change tolling enforcement processes to make it easier for people having difficulty paying their tolls to get help and avoid being fined. When tolls remain unpaid, we follow the processes agreed by the relevant regional authorities. This action may eventually lead to enforcement processes (such as infringement notices) managed by those authorities.

Our goal is to resolve all unpaid toll issues before they escalate to enforcement. In Victoria, as part of the proposed West Gate Tunnel Project legislation, we are advocating positive changes, including: • doubling the amount of time we have to identify and contact customers who have unpaid tolls • ensuring only one infringement is issued over a seven day period per license plate number • not referring unpaid tolls to infringement if a person has submitted a valid hardship application • asking the state enforcement agency to discontinue or suspend infringement or court proceedings if a person applies and is eligible for hardship. These changes will enable us to better help people with toll payment difficulties and avoid further issues.

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Customer and community

Strengthening communities

With 16 assets across three countries, and nine projects underway during FY18, building strong relationships with the communities around our assets is important so we can help cities thrive. We build and support these relationships through partnerships, investment, community grants, and engagement activities. Many of our initiatives are featured in our In the Community website. Supporting communities through our road network Every year, we use our roads to host and support causes close to the hearts of communities. The Herald Sun/CityLink Run for the Kids fun run, is an annual event that raises money for the Royal Children’s Hospital Good Friday Appeal. This year the event raised $1.4 million, bringing the total amount raised for the appeal since the event began to more than $17 million. The fun run course includes a section of our CityLink motorway in Melbourne. As well as making our road available to the event, we also contributed $60,000 to the appeal.

The 21st Bridge-to-Brisbane charity fun run took 30,000 participants over our Go Between Bridge. To help keep traffic moving, despite major road closures, we waived tolls on our Clem7 tunnel. We donate 1c from every toll on the Legacy Way tunnel in Brisbane to Legacy Australia with a minimum commitment of $100,000 for each financial year. This year we donated $100,000 to Legacy Australia’s Youth Development Program that helps young people develop strong leadership skills and overcome personal career and educational challenges. Celebrating the five year anniversary of the 495 Express Lanes, we awarded a US$10,000 anniversary grant to the Emergency Medical Services Bike Team from the Fairfax County Fire and Rescue Department and the Vienna Volunteer Fire Department, to support their ongoing emergency response to citizens throughout Fairfax County, Virginia. We regularly light up our bridges in Queensland and Victoria to support many causes and awareness campaigns across the community.

Image (below): Bridge to Brisbane Video (below right): Tiny Tunnellers school holiday program at NorthConnex

$1.4M $100,000 raised on the Herald Sun/ CityLink Run for the Kids

donated to Legacy Australia

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Customer and community

Community partnerships In FY18 we partnered with a number of organisations that deliver real benefits to communities, including: • NeuRA (Australia) —We partner with NeuRA and fund research into road safety and practical injury prevention via the Transurban Road Safety Centre. • Ronald McDonald House (Queensland) —Along with our corporate partners, we raised $175,000 for this charity at our annual Transurban Queensland Charity Day. • Australia’s CEO Challenge (Queensland) —We sponsored and participated in the 110km ‘Darkness to Daylight’ event in Brisbane, to raise awareness for those affected by domestic violence. • Orange Sky Showers (New South Wales) —We helped fund mobile shower facilities for people who are homeless in Sydney. • Indigenous Australian Engineering Summer School (New South Wales) —We sponsored this annual event, with several Transurban engineers also attending to provide Aboriginal and Torres Strait Islander students with the opportunity to experience engineering studies and understand what's involved in a career in this area. • Ryde Hunters Hill Community Transport Association (New South Wales) —We contributed to community vehicle and transportation costs to provide transport to people with specific transport needs due to their frailty, location, or disability. • Drive Link (Victoria) —This Moonee Valley City Council program gives migrants and refugees supervised driving experience to help them gain their licence. Transurban has sponsored DriveLink for several years. • Northern Virginia Family Service (USA) —We support this long-term community partner through sponsorship and staff volunteering.

Video (top): Ronald McDonald House charity day Image (centre): Volunteering at the Darkness to Daylight event in Brisbane Video (right): Orange Sky showers

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Customer and community

Community grants Every year, we give grants to

Image (right): Lending a hand near Moonee Ponds Creek (VIC) Image (below): Mural created with Berwick Lodge Primary School during delivery of the Monash Freeway Upgrade project (VIC)

community organisations located near our roads. Grants are awarded to organisations working with the community in areas such as transport and mobility, health, Aboriginal and Torres Strait Islander heritage, national parks, and education. The 395 Express Lanes Community Grant Program is designed to support organisations that sustain, enhance or protect the people, local environment and neighbourhoods in the I-395 corridor. Among this year’s grant awardees was a student health program at Mount Eagle Elementary School in Alexandria, Virginia. The program empowers students to learn skills to live a healthy lifestyle with a focus on mental health, nutrition, physical health and preventive care. In FY18 we awarded 56 community grants totalling over $200,000 across Australia and the USA. Community engagement Our West Gate Tunnel Project in Melbourne is a major undertaking, encompassing a diverse range of communities. As part of our community engagement approach, we are supporting Western Chances, a non-profit organisation that offers scholarships to students aged 12 to 25 living in Melbourne's western suburbs. Western Chances scholarships help students buy laptops, Myki travel cards and textbooks to use in their studies, easing the financial burden of education and allowing them to complete their studies.

56 community grants awarded

For another major, Melbourne-based project, the CityLink Tulla Widening Project, we provided a total of $30,000 to six community groups in Melbourne’s north-west. All groups are working on sustainability-focused projects. Lending a hand Transurban employees are supported to take one day of paid volunteering leave each year to contribute to a cause of their choice. In FY18, Transurban employees volunteered 6,026 hours through this program. We also partnered with Landcare Australia during employee volunteering days to transform two reserves along the Moonee Ponds Creek, a creek running alongside (and at some points, beneath) the CityLink motorway.

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Customer and community

Case study Banksia Ignite Enabler challenge

Every day we hear about—or experience first-hand—the pressures of living with traffic congestion. More people are driving, and many of our cities roads are choking as a result. With significant population growth and urbanisation across all of Australia's major cities, more and more people need to get around. This means we need to work out new ways to get the most out of our existing transport infrastructure. Carpooling is a solution that will simply get more people into less cars and this was an idea that we wanted to explore through the 2018 Banksia Ignite Enabler Challenge. We are specifically looking for solutions that address: • fair cost-sharing between drivers and passengers • safety concerns • flexible pick-up and drop-off arrangements • participation by different vehicle types • scalability to meet future demand. The competition runs until November 2018 and the best solution will be awarded a $15,000 prize. Transurban will work with one or more of the winners to develop their idea with the view to potentially piloting and implementing it. About the Banksia Ignite Enabler The Banksia Foundation is a non-profit that works with industry and the community to promote excellence in sustainability. Banksia Ignite Enabler is the Foundation’s platform to generate creative crowd-based solutions for corporate Australia to help address the Sustainable Development Goals. Through the Banksia Ignite Enabler program, participating corporate organisations partner with industry and the community to solve some of their most pressing sustainability issues.

We were excited to partner with Transurban for the inaugural Banksia Ignite challenge which promises to deliver on SDG 11–Sustainable Cities and Communities—helping make cities more inclusive, resilient and sustainable by significantly increasing car-pooling on Australian toll-roads.” Graz van Egmond CEO Banksia Foundation

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Safer roads

We’re striving for injury-free roads and we design, build, maintain and manage our roads with this intent in mind. Our roads are among Australia’s safest, but we have a lot of work ahead of us in this challenging area. We have brought the globally recognised Safe System approach to road safety into our own thinking and, as well as investing in safer infrastructure, we also invest in public education and behaviour-change campaigns to promote safer driving behaviours.

More than 6.4B

lower rate of crashes on our roads compared to other similar alternatives 50–80%

injury crashes per 100 million kilometres travelled 4.82

kilometres travelledon our roads

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Safer roads

Road safety performance

In FY18, the Road Injury Crash Index (RICI) across all Transurban assets was 4.82 injury crashes per 100 million vehicle kilometres travelled, or 312 injury crashes in more than 6.4 billion vehicle kilometres travelled. Injury crashes were slightly lower in FY18 than FY17 (see table below), but were higher than our FY18 RICI target of 4.04. This result is lower than the peak in 2015, indicating the effectiveness of our continued road safety efforts despite increased travel by our customers. Three fatal road accidents occurred on our roads in FY18; two accidents involving passenger vehicles and one involving a motorcycle. outcomes with other similar roads, we engaged the Monash University Accident Research Centre (MUARC). The project found that Transurban’s roads have significantly fewer crashes than similar roads with New South Wales being 80 percent lower, Victoria 81 per cent lower and Queensland 53 per cent lower. To analyse injury crashes on our Australian network and compare

In line with the safe system- based strategies across Australia and around the world, we recognise that road safety is a shared responsibility and we proactively engage with our customers, partners and the community to make every journey a safe one. We continue to strive for fatality and injury free roads, using data and research to inform our road safety activities and action plans, and to improve the safety and performance of our networks.

Historical and current road safety performance on Transurban assets is shown below.

MEASURE

FY14

FY15

FY16

FY17

FY18 FY18 TARGET FY19 TARGET

Material and other relevant UN Sustainable Development Goals for this chapter

RICI

4.56

5.52

4.58

4.85

4.82

4.04

3.92

A serious road injury crash is where any number of persons need treatment for a serious injury following a crash on our roads. This entails any person taken to hospital in an ambulance following a crash. Incidents where individuals are assessed and released from medical care at the crash scene are not classified as serious injury crashes. Crashes are counted as single incidents even when involving multiple people. The Road Injury Crash Index (RICI) measures how many serious road injury crashes occur per 100 million vehicle kilometres travelled.

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Safer roads

Road safety strategic framework

Transurban is focused on being a leader in road safety. We have a range of measures in place to support the safety of our employees, contractors and customers on our road networks. We’ve adopted the Safe System approach to underpin our Road Safety Strategic Framework and the road safety action plans in each of our operating regions. Our plans set out our goals and objectives, actions, and performance measures. The Safe System is about recognising human vulnerability, sharing responsibility for road safety and creating a forgiving road system through safe roads, safe vehicles, safe speed and safe people.

During FY18 we: • completed the Regional Road Safety Action Plans • analysed of injury crashes on Transurban’s Australian network by Monash University Accident Research Centre • made a submission to the NSW Staysafe Committee’s inquiry into heavy vehicle safety • made a submission to the Commonwealth’s inquiry into the National Road Safety Strategy.

Image (right): Road Safety Strategic Framework

O L

People in safer vehicles

Acknowledge human fallibility

I

Through safety features reduce the risk of crashing and severity of injury when a crash h appens.

People make mistakes. They shouldn’t be

seriously injured or lose their life because of this.

I

Create a forgiving system

Work together

Road safety is a shared responsibility—everyone has a role to play to keep our customers, community and employees safe.

Through safe design, build and operate roads that help reduce

the risk of crashing and protect road users when crashes do happen.

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Safer roads

Trucks and vulnerable road users Transurban partnered with VicRoads, the Level Crossing Removal Authority and Rail Projects Victoria to take a proactive step towards eliminating serious injuries for vulnerable road users around major projects in Melbourne from increased construction truck movements. Forums with industry and peak groups identified four key safety issues on which to focus (truck standards, public engagement, route selection and traffic management). Initiatives in each of these areas have delivered practical outcomes and this issue is now included in the updated National Road Safety Action Plan. Road safety awareness To deliver on road safety initiatives and improve incident response times, operating procedures and community awareness, we recognise partnerships with local governments, emergency services and our operating partners are essential. We also work with the media to educate the public about the safe use of our roads. Encouraging safe behaviour, including proactive engagement with our customers, partners and the community, is part of Transurban’s approach to road safety.

Case study Tunnel evacuation simulation at Eastern Distributor In March 2018, Transurban conducted a full-scale emergency simulation exercise within the Eastern Distributor in NSW. The purpose of this exercise was to test the coordinated response and evacuation procedures for the motorway. Transurban arranged for key agencies including Police NSW, State Emergency Services, St John Ambulance, Fire and Rescue NSW, Roads and Maritime Services, Transport Management Centre and industry representatives to come together to conduct the exercise. The scenario, which involved more than 100 volunteers, plus almost the same number of logistics and support personnel, simulated a realistic significant incident within the tunnel, resulting in a mock fire and multiple accidents and injuries, in turn leading to the scenario of significant major congestion on the broader road network. With over 125,000 motorists on average each day relying on the Eastern Distributor to get to where they need to go, regular testing and maintenance of this critical infrastructure is important to ensure the safety of Sydney motorists. During the exercise, Transurban also trialled new technology with the aim of ensuring motorists can evacuate as safely and efficiently as possible, including: • SMS broadcast messaging to communicate information to those within the tunnel • additional digital CCTV cameras in the emergency egresses • directional illuminated exit signs to better guide evacuees on foot to safety • LED strip lighting around the egress doors to improve visibility of the safe egress route. This exercise is part of a series of activities conducted by Transurban across its assets to demonstrate a world’s best practice approach to emergency response procedures and road safety.

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Safer roads

Case study Orange Cones. No Phones

Transurban, the Virginia Department of Transportation, Virginia State Police and AAA Mid-Atlantic, launched the “Orange Cones. No Phones.” campaign to reduce distracted driving within the 395 Express Lanes work zone. A Transurban-led survey of more than 1,000 Washington D.C. area drivers who travel the I-395 corridor shows they self-report engaging in a number of distractions while behind the wheel. The top three mobile phone distractions reported among D.C. area drivers were using a phone to talk, checking GPS or travel planning, and reading a text message. More than half of the area's drivers report feeling unconcerned about using their phones to talk while behind the wheel, despite growing research that finds talking on a mobile phone is still dangerously distracting. The “Orange Cones. No Phones.” campaign aims to improve safety by reducing distracted driving within the 395 Express Lanes work zone.

Orange cones

• Queensland Road Safety Week with a key theme of speaking up for road safety and focusing on a different road safety issue daily. • Re:act Project an initiative of Hard Edge in collaboration with Swinburne University, providing final year design students with industry experience to develop a behaviour change campaign targeting a road safety issue. Queensland Government co-lab initiative targeting safe road use with young people. • "Phone Down, Chin Up", a

During FY18, we participated in, or supported, the following awareness campaigns: • Yellow Ribbon National Road Safety Week where we promoted the key message, "Drive so others survive". • People Behind the Roads campaign, showcasing the work of Transurban’s people and their expertise in keeping the network safe. • "Orange cones. No phones" campaign targeting distracted driving through a work zone on our USA network.

Image (right): Re:act Project design students from Swinburne University

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Safer roads

Case study Educating motorists about safe driving in tunnels

To educate motorists about safe driving in tunnels, Transurban Queensland commenced a program of proactive media in FY18 with television and newspaper outlets in Brisbane. Some key themes that have been presented in the media stories include: • what to do in the unlikely event that you are involved in an incident in a tunnel • the role of incident response officers • the existence of tunnel control centres and their role in managing tunnels • CCTV footage of unsafe driving behaviour in tunnels to educate motorists of what ‘not to do’ • the technology in tunnels that helps drivers have a safe, efficient journey. NeuRA Partnership Transurban, in partnership with Neuroscience Research Australia (NeuRA), established the Transurban Road Safety Centre during FY17. NeuRA is one of the world’s leading centres of neuroscience research. The Transurban Road Safety Centre is equipped with a state-of-the-art crash sled that enables test speeds of up to 64 km/h, replicating real-world crash conditions. The Transurban Road Safety Centre seeks to alleviate the significant impact of lives lost and serious injury on our roads. The new state of the art facilities provide researchers the opportunity to undertake critical research in emerging issues and to address road trauma both in Australia and internationally. A new research program started in FY18 with initial results due by the end of 2018.

FY18 Sustainability Report Transurban 22

Diversity, inclusion and wellbeing

Every member of our workforce, whether that’s our employees or parts of our supply chain, brings individual skills, perspectives, backgrounds and experiences to work every day. Our diversity strategy is about creating a work environment that respects, supports and values difference. We aim to have a lively, inspiring and safe workplace where everyone can perform at their best.

44%

95

of funding committed to support Aboriginal and Torres Strait Islander organisations $123,000

employees qualified as Mental Health First Aid Officers

of our total workforce are women

FY18 Sustainability Report Transurban 23

Diversity, inclusion and wellbeing

Gender diversity

Transurban employs around 2,000 people across Australia and North America, and our major construction projects provide employment to over 6,000 contractors. The proportion of women and men across our permanent workforce are 44 per cent versus 56 per cent; within our senior executive the split is 45 per cent versus 55 per cent and our Company Board 30 per cent versus 70 per cent. Our gender equity policies and programs are ensuring everyone has opportunities for career development. Transurban’s diversity objectives include the goal of achieving gender equity throughout the organisation, from senior executives to our overall workforce and to ensure our processes support this ambition. Our efforts are proving effective. For the past four years, the Australian Government’s Women’s Gender Equality Agency (WGEA) has named us an Employer

of Choice for Gender Equality. We have also recently been ranked by Equileap in the top 200 companies globally for gender balance and gender equality.

Permanent workforce

56 %

44 %

Senior Executive

55 %

45 %

Board 70 %

30 %

Case study Emma-Lee Wood

Engineer, Project Delivery Transurban Queensland “I joined Transurban through the Graduate Development Program in 2016. Transurban has tailored my early-career experience by allowing me to follow my interests and develop practical skills. I developed business skills by working on Transurban Queensland’s Business Plan. I then spent the following six months on the Gateway Upgrade North project, learning about construction and site safety. I’m now managing maintenance projects on the fire suppression systems in Brisbane’s tunnels. It’s exciting to be building diverse engineering knowledge.”

Material and other relevant UN Sustainable Development Goals for this chapter

FY18 Sustainability Report Transurban 24

Diversity, inclusion and wellbeing

Equal pay reviews Every 12 months we review our performance on gender-pay equity. Our 2018 review identified no significant pay gap between male and female employees across the organisation. Inspiring a new generation of female engineers We’re passionate about creating pathways to support women entering and excelling in engineering and technology. We’re doing this by: • providing the Females Excelling in Engineering and Technology (FEET) mentoring program. (Read more about FEET in the next section) • hosting tunnel tours for groups of female secondary school students during Careers Week, sharing insights on motorway operation and highlighting the rewarding career opportunities that are available to engineers • awarding "Transurban Women in Engineering" Scholarships through universities in both Sydney and Melbourne • supporting Power of Engineering, a non-profit organisation focused on showcasing the diverse career opportunities available to engineers. The program targets female urban, regional and Aboriginal students.

Women in leadership Launched in 2014, more than 50 female Transurban employees have completed our Women in Leadership training program. A further 15 employees participated in the program this year.

FEET mentorship program Transurban opened its doors to 48 female students from across Australia through the 2018 summer and winter intakes of our Females Excelling in Engineering and Technology (FEET) mentoring program. The program offers students 35 hours of one-on-one mentoring, as well as a tour of an asset in each state and the opportunity to meet with our Group Executives. In New South Wales nine students were placed with mentors from various divisions including Risk Management, Project Delivery, Technology and Asset Management. Fourth year Engineering and Construction student Chantelle Yousif and first year Civil Engineering student Sue Lay Yoong worked with

the Lane Cove Tunnel and Hills M2 Asset Manager to see what it takes to manage and maintain busy motorways. “I’m trying to find more hands- on experience before I finish my degree and this program is perfect,” Chantelle said. In Queensland, students were placed across multiple assets and in Queensland Business Operations. Civil Engineering student Amelia Tenaglia completed her mentoring with the National Business Advisor for Operational Excellence. “I’m really enjoying meeting such a broad range of people. It’s great to see how everyone collaborates from all areas of the business to manage such massive roads and infrastructure,” Amelia said.

FY18 Sustainability Report Transurban 25

Diversity, inclusion and wellbeing

Cultural diversity

70

We acknowledge Traditional Owners of Country throughout Australia and recognise the continuing connection to lands, waters and communities. We pay our respect to Aboriginal and Torres Strait Islander cultures; and to Elders both past and present. The acknowledgement, respect and proud celebration of Aboriginal and Torres Strait Islander cultures is a key focus of Transurban’s Reconciliation Action Plan —we want to see these qualities demonstrated at all times by both our employees and our business partners. We also want to see equitable standards of living and social mobility for Aboriginal and Torres Strait Islander peoples. Launched in 2014, our Australian Reconciliation Action Plan (RAP) uses a holistic approach to create meaningful relationships, enhance respect and promote opportunities for Aboriginal and Torres Strait Islander peoples. The plan guides the development of opportunities and advance reconciliation. Case study Genesys Works, changing the lives of under-represented minority youths in Virginia We are proud to partner with Genesys Works, a not-for-profit social enterprise focused on changing the lives of under- represented minority high school students through providing meaningful work experience. Every August we welcome a high school student to join our business for a year via a part-time internship, and we also provide ongoing mentoring.

employees completed Cultural Awareness Training

$123,000 committed to Aboriginal and Torres Strait Islander Organisations

National reconciliation week Each year, Transurban hosts events across its Australian offices. In FY18 these events included: • a panel discussion on the theme ‘Don’t Keep History a Mystery’, hosted in partnership with AECOM and KPMG • a didgeridoo performance and a market stall run by the Indigenous-owned Kakadu Plum, selling indigenous foods • screening The Apology short film for New South Wales employees • a Welcome to Country and dance performance by the Aboriginal Centre for Performing Arts. Partnerships To support local Aboriginal and Torres Strait Islander organisations, we have committed a minimum of $123,000 in funding (arrangements will be finalised in FY19) to be provided over the next three years. So far, we have signed commitment letters with three individual organisations: • The Aboriginal Centre for the Performance Arts (ACPA) in Queensland • The Clontarf Foundation—exists to improve opportunity for young Aboriginal and Torres Strait Islander men to participate meaningfully in society • Bubup Wilam—an Aboriginal Child and Family Centre in Melbourne’s north.

4

interns hosted as part of the non-profit CareerTrackers indigenous internship program

FY18 Sustainability Report Transurban 26

Diversity, inclusion and wellbeing

Wellbeing

84% of our people said that they have the flexibility to manage their working

Flexible working Just as our wellbeing program supports the health of our employees, our flexible ways of working help employees balance their work and home lives. People’s circumstances, priorities and flexibility needs are ever-changing, and offering flexibility in how our employees work makes a balanced life easier to achieve. A pulse survey (April 2018) indicated more than 84 per cent of our people have the flexibility to manage their working responsibilities in a way that allows them to maintain a healthy balance between their work and personal life. Our employees use flexible working for a range of purposes including: • attending courses and training • improving their mental wellbeing • recovering from injuries • looking after and picking up children • caring for and supporting elderly parents • attending university studies, to enhance knowledge and advance career progression. Flexible Work Day During FY18 we hosted a Flexible Work Day, an event promoting our flexible working options, including part-time work, flexible hours, working from home, job sharing and lifestyle leave, and the various technology available to support our workforce.

Mental health resilience and support

All our employees are encouraged to take opportunities to improve their mental resilience. As well as working to remove the stigma around mental health issues, we also offer: • counselling via our free employee assist program • training in mental health first aid, now completed by 95 employees across our offices. During FY18 we also: • supported World Mental Health Day and RUOK? Day by hosting events and encouraging employees to talk about their overall wellbeing or mental health with their colleagues • hosted mindfulness workshops to help employees manage stress and build resilience through relaxation and mindfulness techniques • ran strengthening resilient mindset training to arm employees with practical skills to manage stress and improve their emotional resilience • ran Leader Wellbeing at Work Training to help our people leaders recognise mental health issues in the workplace and refer employees to appropriate support.

responsibilities and maintain a healthy balance

Transurban’s Mind Wellbeing Program was a finalist in the 2017 Allan Fels AO Mental Health in the Workplace Award.

Image (right): Chathurika, Graduate Project Engineer, works part time while studying a combined civil engineering and law degree

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