Governance and risk
Directors' Report
Financial statements
Assurance statements
Security holder information
Introduction Business performance Stakeholders Sustainability
Contents
Previously reported GHG emissions have been updated to reflect the following retrospective material adjustments, including to the Group’s FY19 baseline metrics. Target Relevant metrics FY19 baseline adjustment
Achievement of the FY50 target is dependent on industry and government innovation and collaboration to reduce GHG emissions across hard-to-abate sectors in the Group’s value chain, supported by relevant government policy (such as renewable energy targets, vehicle emissions standards, and other industrial policy to support low carbon technologies). While the Group continues to work with value chain partners and governments on new and emerging technologies to reduce GHG emissions, particularly for emissions- intensive construction materials such as cement, steel, and asphalt, progress will be influenced by the pace of innovation and the regulatory and engineering standards applicable in the Australian and North American context, such as compliance with engineering regulations and standards. As noted above, the Group is currently updating its methodology for Scope 3 emissions calculation to enable more consistent and reliable performance tracking over time. This reflects ongoing advancements in data availability, measurement approaches and industry practice since the Group’s targets were established. As a result, the update will also entail a review and potential revision of current targets, including associated emissions reduction actions. Planned use of carbon credits to achieve climate- related targets The Group’s primary objective is to reduce operational GHG emissions through structural abatement measures. Transurban aims to meet its emissions reduction targets by implementing effective mitigation strategies. As at the date of this report, the Group does not anticipate using carbon credits to achieve its 2030 GHG emissions targets. Transurban uses offsets in limited cases where carbon neutrality or offset evidence is required to meet regulatory or specific product or service commitments. With respect to its 2050 target for 90% reduction in emissions across the value chain, at the target date the Group may need to neutralise residual emissions through offsets or carbon removals beyond value chain mitigation measures to reach a state of net zero emissions as stipulated by SBTi. The approach to carbon credits may change over time. As the Group progresses toward its emissions goals, carbon credits may play a supportive role in the Group’s strategy to meet emissions reduction targets.
-22% (i)
Target 1 Scope 1 and 2 (market-based) emissions
Scope 3 Category 1 emissions per customer VKT Scope 3 Category 2 emissions per $M capital expenditure Scope 1, Scope 2 (market-based) and Scope 3 emissions
-16% (ii)
Target 2
2% (iii)
Target 3
-6% (iv)
Target 4
Notes on key factors influencing the FY19 baseline adjustments: (i) Clean Energy Regulator methodology guidance, including the reclassification from Scope 2 to Scope 3 Category 3 emissions. (ii) Inflationary adjustments, expenditure classification updates, and a -1% reduction in customer VKT. (iii) Expenditure classification updates and a -0.4% adjustment to construction costs. (iv) Cumulative adjustments across all emissions scopes and categories. Review process for climate-related targets No revisions have been made to the Group’s targets in the current period. Refer to Section C: Strategy on CTAP for planned review of Scope 3 GHG calculation methodology and potential future updates to GHG targets. The SSC reviews the Group’s previous year performance and future expectations in relation to Scope 1, 2 and 3 emissions, targets, and roadmap, which may include input from both internal experts and external advisors. Progress is monitored using a set of key performance indicators, including GHG emissions intensity, renewable energy usage, and energy efficiency improvements together with other information required for the proper management of Transurban’s GHG emissions. Progress is reported periodically to the ARC and the Board. The Group’s governance process supports ongoing monitoring of target progress and relevance informed by discussions on operational performance, market trends, evolving stakeholder expectations and alignment with the Group’s projects, initiatives and strategy. Further information is provided in Section B: Governance.
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