Transurban FY26 Corporate Report Section B: Governance
Corporate policies The Group’s corporate policies provide guidance to support the Group’s climate action and environmental efforts including: • Sustainability Policy outlines the Group’s commitment to positive environmental outcomes and sustainable asset lifecycle practices; • Risk Management Policy sets out responsibilities for managing risks, which include climate-related risks, through consistent, organisation- wide risk processes; and • Supplier Sustainability Code of Practice guides and aligns procurement with the relevant United Nations Sustainable Development Goals. Capital approval process Climate-related considerations are integrated into the capital approval process to support informed decision-making. This involves a two-step climate-related risk assessment for investments: 1. An initial high-level climate-related risk screening applied to all business cases within the capital allocation framework; and 2. A more detailed risk assessment for material investments. All investment business cases are assessed and approved in accordance with the Group’s delegated approval procedures.
• Oversight by the Group Executive Committee of the capital approval process for material capital investment decisions, including screening for climate-related risks; • Use of sustainability ratings for major projects, including Infrastructure Sustainability (IS) ratings in Australia and Envision ratings in North America, which include processes for assessing and adapting to physical climate-related risks and reducing GHG emissions during project design and construction; • Integration of climate-related matters into the internal audit plan, with oversight from the ARC; and • Cross-functional collaboration across asset management, operations, procurement and safety functions to embed climate-related risk management into broader governance and operational processes. Together, these controls and procedures ensure that climate-related risks and opportunities are actively monitored, managed, and integrated into the Group’s decision-making processes.
Section C: Strategy This section outlines Transurban’s strategy for managing climate-related risks and opportunities, including its integration into strategic planning and long-term decision-making.
The Group’s climate-related risks and opportunities have been assessed across the following time horizons. 1 The ‘short-term’, ‘medium-term’ and ‘long-term’ timeframes correspond to the Group’s forward planning horizons, which are used for strategic decision- making and support its strategy for achieving GHG emissions targets. Short-term 0–1 year aligned with the Group’s budget
C1: Business model and value chain Information on the Group’s business model and value chain is provided on page 7 and is incorporated by cross-reference. In assessing climate-related risks and opportunities, the Group has considered relevant upstream and downstream value chain activities based on reasonable and supportable information that is available to the Group without undue cost or effort. During FY26 there were no material changes to the Group’s business model. As at the reporting date, no material changes to the Group’s business model are anticipated in response to climate-related risks and opportunities. C2: Climate-related risks and opportunities The Group assesses climate-related risks and opportunities that could reasonably be expected to affect its prospects on the basis of their likelihood and potential impact. This assessment considers both financial effects (including cash flows, access to finance and cost of capital) and non-financial effects (such as reputational and legal considerations). Material climate-related risks and opportunities with a medium or high residual risk rating have been disclosed in this report. Refer to Section D: Risk management for further details on the Group’s processes for identification, assessment, prioritisation and monitoring of climate-related risks and opportunities.
Medium-term
1–4 years aligned with the Group’s business plans that support its 2030 emissions reduction targets 4+ years aligned with the Group’s 2050 emissions reduction target and reflecting the long-dated nature of its assets
Long-term
The Group’s assessment of climate-related risks and opportunities indicates that short to medium-term impacts can be adequately managed through business-as-usual operational activities. These risks are managed through established mitigation measures that are integrated into the Group’s operational and risk management processes. Over the long-term, uncertainty relating to climate-related impacts increases due to the longer assessment horizon and evolving climate-related conditions. The Group manages these uncertainties through ongoing asset lifecycle planning, adaptation measures, and the integration of climate-related considerations into its risk management processes. The tables below outline the Group’s climate-related risks and opportunities, including where in the value chain they are concentrated, the time horizons over which they could reasonably be expected to occur, and their potential impacts.
38 1 These time horizons are specific to the Group’s climate-related disclosures and may differ from the time horizons applied elsewhere in the Corporate Report. Where different time horizons are referenced in this report in relation to climate risk management and asset resilience these are clearly explained in the relevant section
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