Governance and risk
Directors' Report
Financial statements
Assurance statements
Security holder information
Introduction Business performance Stakeholders Sustainability
Contents
Key judgements and uncertainties Calculation methods for GHG related metrics The measurement approach for the calculation of GHG emissions is included in Appendix 2: Measuring climate-related metrics and GHG emissions activities. The calculation of GHG emissions requires management judgement in selecting appropriate methodologies, assumptions and data sources. Reported emissions metrics are subject to inherent uncertainty due to reliance on third-party information, including supplier and contractor data, external emissions factors and other value chain inputs. The accuracy of estimates is dependent on the quality, completeness and representativeness of the underlying data and assumptions applied. Scope 1 and Scope 2 (location-based) emissions are primarily quantified using internal data sources, including fuel and energy consumption data, supplemented by inputs from subcontractors and external emissions factors sourced from nationally and internationally recognised databases and technical references. Scope 2 (market-based) emissions are further quantified by accounting for LGC and REC transactions using data obtained from energy suppliers or derived from the CER’s REC Registry. The use of internal activity data provides a comparatively higher level of measurement certainty, although some estimation may be required where third-party data is delayed, incomplete or based on provider-level assumptions. Current reporting period energy data is based on 9-12 months of data available as at the time of reporting and extrapolated to provide full year total. Scope 3 emissions involve higher uncertainty because they rely on supplier and value chain data, and where this is unavailable, the Group applies estimates and secondary data including sector average emission factors and activity data. The accuracy of these estimates is dependent on data quality and the representativeness of proxies used. The Group periodically reviews its emissions calculation methodologies, assumptions and data sources to maintain alignment with applicable standards and evolving industry practice. This may result in updates to methodologies and assumptions and, where appropriate, the restatement of previously reported emissions. ¢
E2: Climate-related targets The Group has set GHG emissions reduction targets to guide the Group’s decarbonisation pathway and support the transition to a lower-carbon transport network, as summarised in the table below. FY19 is used by the Group as a baseline to measure progress against GHG emissions targets. Target 1 covers assets under Transurban’s operational control. Targets 2 to 4 cover assets under Transurban’s operational control and Transurban’s value chain, including indirect GHG emissions, and both upstream and downstream stages. The Group’s FY30 GHG emissions targets (Targets 1–3) were validated by the SBTi in FY20 but have not been revalidated within the five-year
review period stipulated by SBTi, pending consideration of Australia’s new 2035 national emissions reduction target and the recently released SBTi Corporate Net-Zero Standard. As per the SBTi methodology, the targets cover all material Scope 1 and 2 emissions, and relevant Scope 3 emissions. 1 During the year, there were no changes to the Group’s targets. None of the targets were derived using a sectoral decarbonisation approach. The FY19 baseline and progress towards targets for each GHG emissions target are presented in the following table.
61 1 SBTi requires Scope 3 targets to cover at least two-thirds of Scope 3 emissions if Scope 3 emissions account for more than 40% of total Scope 1, 2 and 3 emissions
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