Governance and risk
Directors' Report
Financial statements
Assurance statements
Security holder information
Introduction Business performance Stakeholders Sustainability
Contents
Climate change and sustainability The physical impacts of climate change, including extreme weather events such as severe storms, flooding, and sustained high temperatures, present ongoing risks to global infrastructure. Collectively across modes, transport emissions are projected to be Australia’s largest source of greenhouse gas (GHG) emissions by 2030, the leading cause of climate change, unless action is taken. 5 Our response to these challenges, including our targets, is detailed in our Sustainability Report (Climate Statements) on page 34. Corporate sustainability reporting requirements are rapidly evolving. Australia has introduced new mandatory climate-related disclosures (ASRS s2), while global standards are merging into a single framework led by the International Sustainability Standards Board. Integrated reporting This report provides a comprehensive overview of our operations and performance during FY26. We remain committed to transparency and meeting the evolving needs of our stakeholders, embedding these priorities across our business and throughout this report. FY26 materiality review Using our double materiality approach, we have reviewed our prior year topics to ensure we continue to focus on the areas of greatest impact. As a result, in FY26 we consolidated our material topics into five core themes: 1. Customer experience: Customer safety and wellbeing; customer experience and satisfaction. 2. Community engagement: Communities, stakeholder and First Nations engagement. 3. Impactful partnerships: Government and industry relationships; responsible supply chain. 4. Trust and transparency: Cyber security, artificial intelligence and data privacy; ESG governance and disclosure. 5. Environmental stewardship: Climate change and low carbon transition; nature, biodiversity and ecological impact. While we have created a simplified structure for these themes, no new material topics have been added and all previous material topics have been retained. Many of the insights described in the Strategic Context section of this report were reinforced through our materiality review process in FY26, with global energy volatility and rapid technological transformation emerging as significant themes. Reporting standards We continue to report against globally recognised sustainability frameworks including GRI, SASB and the UN SDGs. Read more in our FY26 Sustainability Basis of Preparation and FY26 Sustainability Supplementary Data Pack. We have also transitioned to reporting against ASRS s2 climate-related disclosures (see page 34). 6 ¢ 6
In Australia, the continued transition of the vehicle fleet means fuel excise is forecast to effectively disappear as a revenue source by 2050 1 . Recent fuel price shocks have also required additional support, with the Government halving fuel excise from April to June 2026. We continue to stay actively engaged on this issue, contributing to research and policy discussions in Australia, the US and New Zealand, as well as conducting real-world RUC trials. Read more on page 26. AI and technology Rapid technological transformation and digital integration continue to reshape urban mobility, influencing both our operations and customer experiences. AI and automation are playing an ever-larger role in our operations. In our traffic operations centres, predictive analytics, automation, and machine learning are used to anticipate congestion and respond to incidents more rapidly. This technology monitors roads for incidents such as debris and stopped vehicles, and alerts operators, helping to minimise congestion and improve the customer experience. For more on how our people are adopting AI in their work, see page 30. With human error a factor in around 92% of crashes, 2 the continued momentum of CAV technology presents significant opportunities to improve safety and reduce congestion. For example, our managed motorways are already embedded with smart road technology. By feeding real-time roadside data directly into CAVs, we could extend their awareness beyond on-board sensors, boosting freight efficiency, easing traffic, and helping eliminate incidents. While FY26 saw autonomous ride share services like Waymo expand in the US, 3 just 5% of Americans say they’ve ridden in a driverless car, and public trust remains a hurdle to widespread adoption. 4 With CAV adoption lagging in Australia, we’re using anonymised telematics data to monitor our roads for safety issues and track the performance of safety interventions. This technology will be a major tool in the future of road safety. For example, during construction of the M7-M12 Integration Project in Sydney, we used connected vehicle data to enhance road-worker safety along the Westlink M7 motorway. This involved developing a digital platform to continuously monitor traffic speeds, allowing us to manage road-work speed limits more effectively and enhance the safety of our people working near live traffic. Customer expectations Amid widespread cost-of-living pressures, customer expectations are continually evolving, creating an ever-increasing need for businesses to not only deliver but clearly demonstrate tangible value. With technology enabling a shift towards digital-first and highly personalised solutions, customers now expect businesses to anticipate their needs in real time. In the transport space, this means leveraging data to deliver more tailored offerings. Linkt customers can now receive personalised travel time savings data and live on-road incident notifications, while Linkt Rewards members receive tailored offers based on their location. Privacy breaches and cyberattacks pose a tangible threat in an environment of heightened global instability and shifting economic policies. Navigating these technological advancements while mitigating emerging risks is fundamental to our strategic success and continued growth.
1 Parliamentary Budget Office (Cth), 'Shrinking Revenue Bases in Excise Taxes', Budget Explainer, Parliamentary Budget Office website, 2024, accessed June 2026 2 S Doecke, J Thompson, and C Stokes, 'How do we prevent and mitigate crashes? Evidence from Australian at-scene in-depth crash investigations', Journal of Road Safety, 31(2), pp 35–43, accessed 9 July 2026 3 Waymo, Ready to Ride: Dallas, Houston, San Antonio, and Orlando, Waypoint - The official Waymo blog website, 2026, accessed June 2026 4 W Bishop, '5% of Americans say they’ve ridden in a driverless car', Pew Research Center website, 2026, accessed July 2026 5 Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts, Transport and Infrastructure Net Zero Roadmap and Action Plan: Transport Sector Plan, Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts, 2025, accessed May 2026 6 See FY26 Sustainability Basis of Preparation, materiality methodology section, for more information
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