Governance and risk
Directors' Report
Financial statements
Assurance statements
Security holder information
Introduction Business performance Stakeholders Sustainability
Contents
Climate-related physical risks
R2 Safety and wellbeing of customers, communities, employees and contractors
R1 Weather related impacts to infrastructure and operations
R1 Weather related impacts to infrastructure and operations
Time horizons 1 Short
Medium Long-term Short
Medium Long-term Short
Medium Long-term
Climate- related risk description
R1 (a) Extreme weather events may disrupt construction activities, leading to delays and increased costs due to asset damage, equipment loss and transport interruptions.
R1 (b) Extreme weather (including heatwaves, flooding and storms) may damage infrastructure, increase maintenance costs and restrict road access, while sea level rise may exacerbate flooding and reduce drainage capacity.
Increased heat and extreme weather events raise the risk of injuries, accidents and safety incidents affecting road users and workforce.
Primary areas of climate risk exposure across the business model and value chain
Upstream
• Funding • Project design, delivery and construction
• Project design, delivery and construction
Own operations
• Operations and maintenance • Tolling and revenue collection • Technology and innovation • Sustainability and environmental management • Corporate enablement functions • Customer service and management • End-of-life asset management / concession handover • Infrastructure damage or road closures may reduce network availability and operational performance. • Damage to road assets, intelligent transport systems and power infrastructure may increase repair, replacement and recovery costs. • Damage to adjoining property and infrastructure may result in service disruptions and recovery costs. • Incident response, maintenance and recovery activities may require additional resources. • Accelerated asset deterioration may increase maintenance and rehabilitation costs over time. • Changing weather-related risk profiles may affect insurance premiums and coverage.
• Operations and maintenance • Corporate enablement functions
Downstream
• Customer service and management • Stakeholder engagement
Potential business impacts
• Extreme weather events may disrupt supply chain, site access, and construction activities, resulting in schedule delays, reduced productivity and increased project delivery costs.
• Reduced workforce availability and efficiency due to heat stress and adverse weather conditions may affect productivity. • Weather-related safety incidents and disruptions may reduce stakeholder confidence. • Exposure to extreme temperatures may increase health and safety risks. • Hazardous road conditions during extreme weather may increase traffic incidents and disrupt operations. • Changing weather-related risk profiles may affect insurance premiums and coverage.
Transurban’s exposure to climate-related physical risks is primarily concentrated within its owned and operated road assets, reflecting that these assets operate over long periods and are located in specific regions. As a result, they remain directly exposed to local climate conditions, including extreme weather events and long-term climate impacts, which may affect asset performance, maintenance requirements and network availability. The Group continues to monitor both infrastructure and safety-related indicators and incorporate climate considerations into its risk management and operational processes.
1 No material impacts observed in the current period or anticipated in the short-term. With increasing frequency and magnitude, there is potential for impacts to become material over the medium and long-term
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