Governance and risk
Directors' Report
Financial statements
Assurance statements
Security holder information
Introduction Business performance Stakeholders Sustainability
Contents
Lifecycle replacements of major mechanical and electrical equipment are expected to improve operational efficiency and reduce electricity consumption across the Group’s assets, though anticipated energy efficiency and emissions reduction benefits have not been quantified. Current-year expenditure on certain example projects identified as contributing to energy efficiency and emissions reduction outcomes totalled approximately $7 million. This amount is not a comprehensive reflection of all relevant investments, including expenditure incurred in prior reporting periods. Addressing physical risks The Group monitors asset performance and adopts preventive and adaptative measures to reduce the operational and financial effects of extreme weather. Findings from CCAPs completed to date indicate that assets demonstrate a high level of resilience to future potential climate events, supported by design specifications and maintenance standards embedded in existing maintenance provisions. These adaptation-focused measures are designed to support the resilience and long-term performance of the Group’s assets under changing climate conditions. They complement the Group’s 2050 emissions reduction target by maintaining asset integrity, operational continuity and service reliability under a range of climate scenarios. The Group’s mitigation and adaptation efforts include: • Development and periodic review of asset-specific CCAPs to identify vulnerable asset components; • Monitoring of asset performance, scheduled preventative and routine maintenance and inspections; • Application of a road safety approach, including action planning and performance tracking; • Coordination of emergency management and response, including collaboration with government partners; • Group property insurance program providing coverage for physical loss or damage from applicable perils; • Deploying climate resilience and adaptation measures within project design and construction through IS ratings in Australia and Envision ratings in North America; and • Climate change risk and adaptation workshops. All of these activites were undertaken in FY26 and will continue on an ongoing basis. Adverse weather plans and incident management manuals are in place across all regions with assets, outlining processes for managing weather-related events, including prevention, preparedness, response and recovery. Risk and adaptation assessments, including adaptation pathways, are integrated within CCAPs for assets in Australia and North America. Addressing transition risks The Group continues to pursue Scope 1, 2, and 3 GHG emissions reductions in line with its FY30 and FY50 targets. The Group also reports on customer emissions. The initiatives below form the core of the Group’s decarbonisation approach and are directly aligned to its Scope 1, 2 and 3 emissions reduction targets. Actions focused on energy efficiency, renewable electricity procurement and fleet transition are expected to contribute to the achievement of the FY30 Scope 1 and Scope 2 target, while supplier engagement, sustainable procurement and low-emissions materials support progress toward the Scope 3 intensity targets for maintenance and capital activities. Collectively, these measures contribute to the Group’s long-term pathway to achieve its FY50 emissions reduction target (refer Section E: Metrics and Targets for further information).
The Group supports decarbonisation through a range of current and ongoing initiatives, including: • Monitoring progress and providing updates towards Scope 1, 2 and 3 GHG emissions targets; • Installing or procuring energy-efficient and low-emission technologies for road operations, including LED lighting, smart traffic systems, and battery- and hybrid-electric maintenance fleets; • Establishing strategic partnerships and engaging stakeholders across government and industry to support GHG emissions targets; • Renewable electricity procurement through power purchase agreements (PPAs) as part of the market-based approach to Scope 2 emissions activity; • Raising awareness, advocacy, and industry engagement (for example, participation in stakeholder forums, and collaboration with transport bodies); • Supplier risk management, including monitoring global events to anticipate potential disruptions to goods and services; • Traffic modelling to monitor travel patterns and patronage across operational markets; • Tracking climate-related policy developments in Australia and North America; • Pursuing opportunities to reduce embodied GHG emissions in materials such as concrete and asphalt across the lifecycle of the Group’s assets to reduce Scope 3 emissions from capital goods, including through contractual requirements to obtain IS ratings for major projects; • Continued implementation of a sustainable procurement program and supplier engagement, including annual disclosure requests for the Group’s major suppliers through CDP, a global environmental reporting platform; and • Engaging technical experts to undertake studies on decarbonisation pathways for Scope 3 construction-related GHG emissions (undertaken in FY25). Unless otherwise stated, all of these activites were undertaken in FY26 Notwithstanding no identified material financial effects in FY26, the Group continues to pursue operational energy efficiency across its assets. Initiatives such as tunnel lighting upgrades, system optimisation, and increased use of renewable electricity are contributing to reductions in both energy consumption and emissions. For example, ventilation fan optimisation undertaken demonstrates the potential to achieve both efficiency gains and emissions reductions through targeted operational improvements. and are expected to continue on an ongoing basis. Addressing transition opportunities The Group also leverages smart motorway and traffic management technologies to improve traffic flow and reduce congestion across its network. These digital optimisation initiatives support more efficient vehicle movement, reducing stop-start driving and associated fuel consumption and emissions. Transurban further supports the transition to more fuel - efficient vehicles and evolving road user charging approaches through engagement with governments and key stakeholders. Ongoing investment in road maintenance, congestion relief, and key freight routes contributes to more efficient transport outcomes. Collectively, these initiatives are expected to create climate-related opportunities by improving network efficiency, lowering the emissions intensity of transport, and supporting the transition to a more sustainable transport system. The IS ratings process also supports climate outcomes by promoting low - emissions design, energy efficiency, and resilience, enabling the delivery of more sustainable and climate - aligned infrastructure.
47
Made with FlippingBook Digital Publishing Software