Governance and risk
Directors' Report
Financial statements
Assurance statements
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Introduction Business performance Stakeholders Sustainability
Contents
Climate-related opportunities are primarily concentrated within the Group’s operational asset base, where initiatives can enhance asset resilience, improve network performance and support lower-emissions transport. The Group may also benefit from opportunities through its development activities, where climate-related capabilities, resilience considerations and emissions performance are considered in the evaluation and procurement of infrastructure assets and concessions. These opportunities are driven by the Group’s ability to optimise existing infrastructure, respond to evolving transport needs and maintain strong stakeholder and investor confidence over the long-term. Climate-related opportunities may affect the Group’s financial position, financial performance and cash flows through the business impacts outlined above. Financial statement line items potentially impacted by climate-related opportunities – O1 and O2 Time horizons 1 Short Medium Long-term Short Medium Long-term Short Medium Long-term
Profit and Loss Revenue: • Increased traffic volumes and network utilisation resulting from improved network efficiency and customer experience. • Potential benefits from low-carbon transport solutions and related customer offerings that support long- term demand. Operating costs: • Efficiency savings from smart traffic systems, digital technologies and operational optimisation. • Cost savings arising from innovation, collaboration and improved climate risk management.
Balance Sheet Concession assets and equity accounted investments: • Improved asset performance and longevity, supporting asset values and reducing impairment risk. • Capital investment in low-carbon technologies and smart infrastructure supporting long-term asset value. Provisions: • Reduced maintenance provisions resulting from improved asset resilience, durability and proactive risk management.
Cash Flow Operating cash flows and capital expenditure: • Higher toll receipts from improved network performance, reliability and customer experience. • Reduced cash outflows from lower maintenance, incident response and disruption-related costs. • Investment in digital infrastructure, low- carbon technologies and emissions reduction initiatives that support long- term asset value. • Capital expenditure (e.g. resilience upgrades and smart systems) that strengthens network performance and adaptation to climate-related impacts. Financing cash flows: • Improved access to capital and/or more favourable funding terms resulting from a stronger ESG profile and increased investor confidence.
Description
Current and anticipated financial effects from transition opportunities There were no material effects on the Group’s financial position, financial performance or cash flows from climate-related transition opportunities in FY26, and the Group has not identified any significant risk of a material adjustment to the carrying amounts of the Group’s assets and liabilities for FY27. Based on current qualitative assessments, climate-related opportunities are not expected to result in material financial effects in the short-term.
During FY26, the Group reduced its leased vehicle fleet by 16 vehicles, from 48 to 32 vehicles, representing a 33% reduction. Of the 16 vehicles removed, 12 were diesel-powered vehicles. This initiative s expected to contribute to a reduction in Scope 1 emissions. While the leased vehicle fleet represents a relatively small proportion of the Group’s operations and the resulting impacts on fuel consumption, emissions and financial performance are not expected to be material, the initiative demonstrates the Group’s ongoing commitment to reducing operational emissions and supporting its decarbonisation objectives. Further information on investments in initiatives that support or enable climate-related opportunities is provided in Section C4: Business resilience (Integration of climate-related risks and opportunities into capital allocation). See also Section C3: Climate strategy (Mitigation and adaptation efforts). Assets and activities aligned with opportunities The Group’s climate-related opportunities are closely linked to the operation and long-term performance of its assets. The Group’s core business aligns with these opportunities, supporting the development of more resilient infrastructure, optimising asset performance, and reducing operational emissions. These benefits have the potential to extend across the Group’s entire portfolio, including assets held through joint ventures. Collectively, these opportunities are expected to support long-term resilience and operational efficiency. Refer to Section C4: Business resilience for further discussion of resilience initiatives undertaken during the asset design phase.
At this stage, the Group is unable to reliably quantify medium to long- term financial effects of climate-related opportunities due to significant measurement uncertainty. For example, initiatives related to achieving IS ratings and contract - specific sustainability targets for major projects are typically incorporated within overall project delivery and broader contractual arrangements. As a result, while these initiatives may contribute to positive project outcomes, there is significant measurement uncertainty in quantifying the associated costs and financial benefits of individual initiatives. Similarly, while the achievement of IS ratings may be a factor in major project approval, there is significant uncertainty in measuring the degree to which specific climate initiatives or enhancements delivered via the IS ratings process influence project approval, or the degree to which this influence may change in the future. Climate-related opportunities, including the development of more resilient infrastructure and the adoption of energy - efficient and digital technologies, may deliver value to stakeholders and contribute positively to financial performance over time through improved efficiency and asset resilience. For example, ventilation and LED technology upgrades implemented across Australian tunnels in prior years are now embedded in operations and have resulted in sustained reductions in electricity consumption and associated emissions.
1 No material financial effects have been observed in the current period or are anticipated in the short to medium-term. There is potential for anticipated financial effects to increase over the long-term
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