Transurban FY26 Corporate Report Section C: Strategy
Capacity to adjust strategy and business model Scenario analysis has not identified material financial effects over the medium to long-term associated with physical climate risks or transition risks arising from potential carbon pricing under the scenarios assessed. However, the potential long-term impacts of climate-related risks, including changes in travel and mobility patterns and customer behaviour, remain uncertain in terms of their nature, timing and magnitude. The Group continues to monitor emerging climate, policy, technology and mobility trends and will assess and evolve its strategy, business model and risk management approach as required to respond to changing circumstances. The Group’s approach to climate resilience is integrated into its existing investment and asset management programs. Its approach focuses on optimising existing asset performance and undertaking replacements or upgrades on a planned lifecycle basis, informed by ongoing delivery of asset-specific CCAPs. Resilience related activities, such as upgrades to drainage, ventilation, power systems, tunnel resilience, and networkwide monitoring, are embedded within the Group’s established maintenance, renewal and asset management programs. This ensures that resilience is funded as part of core operations and delivered in parallel with broader programs to maintain and enhance asset performance. Examples of this integrated approach include sustainability and resilience related enhancements incorporated into the design and construction of the West Gate Tunnel delivered via the IS Ratings process and ongoing optimisation of asset and business performance. As disclosed in Note B13 of the financial statements, the Group has access to committed credit facilities, providing financial flexibility and additional capacity to respond to evolving business needs, as well as emerging climate-related risks and opportunities. • Low-warming scenario: The Group retains sufficient financial flexibility to adjust capital allocation over time, including increasing investment in decarbonisation initiatives and transition-related opportunities where warranted by changing business, regulatory or market conditions. • High-warming scenario: The Group retains financial flexibility to increase investment in adaptation and resilience measures, including projects designed to manage increased exposure to extreme weather events and other physical climate risks. The Group’s approach to asset lifecycle management further supports its ability to respond to evolving physical risk exposures and maintain the long-term resilience of its assets.
Integration of climate-related risks and opportunities into capital allocation The Group maintains ongoing financial capacity to support strategic investments and has the flexibility within its cost base to adjust cost allocations and moderate cost base growth in response to evolving risks and priorities including emerging climate related risks and priorities. The Group’s resilience is further supported by maintaining flexibility to reallocate capital toward evolving and emerging risk and opportunity areas, including potential climate-related initiatives. Key areas where capital allocation may shift include energy procurement and energy efficiency measures, or adaptation, and supply-chain resilience measures should changing climate conditions necessitate such adjustments. Capital investment to maintain and strengthen climate resilience across the Group’s asset portfolio, particularly in relation to physical climate impacts, is guided by the Group’s capital allocation framework and integrated into its strategic planning cycle. These investments, including climate-related mitigation, adaptation and opportunity initiatives, are largely embedded within business-as-usual processes and lifecycle asset management. Examples of the Group’s investment in climate-related mitigation, adaptation and opportunities include: • Progress towards sourcing the equivalent of 100% renewable electricity. In FY26, the equivalent of 93% renewable energy was decarbonisation strategy and market-based Scope 2 emissions accounting. In FY26 these include three financial PPAs with Sapphire, Bango, and Coopers Gap Wind Farms, and one retail PPA. The Coopers Gap financial PPA expired on 30 June 2026 and a new retail PPA took effect on 1 July 2026; • Implementing complementary initiatives, including energy-efficiency upgrades across tunnel ventilation and lighting systems, and progressing the phased transition of light vehicle fleets, including contractor fleets, to electric vehicles; • Reducing embodied carbon and adopting sustainable infrastructure design principles through IS Design and As Built ratings for major projects, including the use of low-carbon construction materials where feasible; sourced across the Group, a 2% year-on-year increase; • Establishing PPAs as a key component of the Group’s • Integration of climate resilience considerations into broader asset lifecycle management and capital planning processes; and • Partnering with Transport Australia and Q-Free in 2026 to gauge public support for a new road-user charge, and with major freight and logistics operators in Australia to undertake a heavy vehicle road-user charging trial.
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