Transurban FY26 Corporate Report Section C: Strategy
Climate-related transition risks
R3 Changing stakeholder perceptions and dependencies related to transport sector emissions intensity
R4 Structural changes to transport system
Time horizons 1 Short
Medium
Long-term
Short
Medium
Long-term
Climate- related risk description
Increasing transport sector emissions, changing transport sector regulations, and construction material decarbonisation dependencies may influence social licence, investor confidence and the availability of capital. These changes may also affect the attractiveness and support for future road projects.
Structural changes in transport systems, including shifts in mobility patterns, increased adoption of low-carbon transport alternatives and changes in travel behaviour, may reduce demand for roads and influence long-term traffic volumes and network utilisation.
Primary areas of climate risk exposure across the business model and value chain
Upstream
• Opportunity identification • Funding • Project design, delivery and construction • Operations and maintenance • Technology and innovation • Tolling revenue and collection • Sustainability and environmental management • Corporate enablement functions
• Opportunity identification • Funding
Own operations
• Technology and innovation • Tolling revenue and collection • Corporate enablement functions
Downstream
• Customer service and management • Stakeholder engagement • End-of-life asset management / concession handover • Changing stakeholder, investor and policy expectations may influence government support and the cost of capital. • Regulatory compliance, emissions reduction initiatives and transition requirements may increase compliance, decarbonisation and operating costs. • Climate-related performance perceptions may affect stakeholder confidence and competitive positioning. • Customer emissions management and offset requirements may increase costs and obligations. • Carbon pricing and technology developments may increase supply chain costs.
• Customer service and management • Stakeholder engagement • End -of-life asset management / concession handover • Changing travel behaviour, modal shifts to lower-emissions transport, and planning and approval constraints may affect traffic volumes, asset utilisation and revenue. • Changes in transport demand or policy settings may affect asset values or recoverability. • Changes in network utilisation patterns may affect maintenance requirements and expenditure profiles. • Delays in adapting to changing technologies, customer preferences or regulatory expectations may affect the ability to compete for new infrastructure assets and concessions.
Potential business impacts
Transition risks are primarily concentrated in Transurban’s operational asset base, where changes in transport policy, technology or customer behaviour may influence traffic volumes, road asset utilisation and long-term infrastructure relevance. Climate-related transition risks may affect the Group’s financial position, financial performance and cash flows as presented in the following table through the business impacts outlined above.
1 No material financial effects have been observed in the current period or are anticipated in the short-term. There is potential for anticipated financial effects to increase over the medium to long-term
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