Transurban FY26 Corporate Report Section C: Strategy
— WestConnex M8, Sydney
C4: Business resilience The Group’s approach to business resilience focuses on maintaining the ability to adapt strategy, operations and capital allocation as climate- related risks and opportunities evolve, informed by scenario analysis and supported by financial flexibility. Asset resilience
The Group’s roads and related infrastructure are designed and constructed to applicable industry standards, such as the Austroads Guide to Road Design. 1 Several of the Group’s more recent assets have also been designed and delivered in accordance with industry best practice, including the IS rating scheme in Australia and Envision rating in North America, which award credits to projects that consider climate-related impacts. For example, during the design phase of WestConnex’s M4-M5 Link Tunnels (now the M4-M8 Link), which received a “Leading” IS As Built rating, the project incorporated physical climate risk controls and adaptation actions into asset design, construction, and operation which contributed to the achievement of adaptation credit benchmarks. The West Gate Tunnel project, which opened to traffic in December 2025 and received a “Leading” IS Design rating, reduced lifecycle GHG emissions by 46% below an estimated base case through design changes to minimise energy use during construction and incorporation of efficient lighting and ventilation equipment to minimise energy use during operation.
For qualitative asset-level physical risk assessments conducted during the design and construction phase (delivered by contractors via the IS ratings process) and the operational phase (via asset-specific CCAPs), the Group uses regionally downscaled climate projections from publicly accessible government sources. These have included RCP 8.5 projections based on CMIP Phase 5 modelling for risk assessments completed before FY26 and SSP3-7.0 projections based on CMIP Phase 6 modelling for risk assessments completed in FY26. Group- wide network modelling supported by an external consultant and specialist data provider was undertaken using RCP 8.5 projections (see Scenario analysis section below). SSP3-7.0 and RCP 8.5 scenarios correspond to average end-of-century temperature increases between 2.8-4.6C and 3.3-5.7C, respectively, and have been used to evaluate asset resilience under more extreme climate conditions. To date, these asset-level climate-related risk assessments have identified primarily low and medium level risks in the medium and long-term as determined by the Group’s ERM Framework, indicating a high level of asset resilience. A limited number of asset components have a high risk rating in FY50 and beyond. A summary of these asset components is included in Section C2: Climate-related risks and opportunities (Assets vulnerable to physical risks).
48 1 austroads.gov.au/safety-and-design/road-design/guide-to-road-design
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