Transurban FY26 Corporate Report Governance and risk
Increasing due to growing regulatory scrutiny, expanded legislative and regulatory regimes Change in threat within FY26
Threat
Trend
Example management responses
Regulatory and compliance Failure to meet regulatory and compliance obligations could lead to a breach of laws, regulations or commercial agreements, leading to penalties and enforcement action.
• Identification, tracking and regular review of compliance obligations • Regular compliance reporting to the Executive Committee, the ARC and compliance steering committee • Internal and external audits and reviews to oversee, test and monitor compliance • Conducting periodic reviews and updates to our compliance plan, policies, controls and procedures to improve our compliance maturity • Where areas of improvement are identified, strengthening process and controls and improving our systems • Delivery of mandatory compliance learning to employees • • • • Engagement on NSW toll reform and road user charging initiatives • Contributions to policy and legislative discussions through submissions to government inquiries and draft strategies • Engagement at all levels of government to better understand policy positions and their potential implications to Transurban and its operations • Monitoring potential changes to stakeholder, government and regulatory policies, including alignment to ESG recommendations and transition to net zero • Monitoring of Transurban’s regulatory and compliance requirements through the compliance management system, including notification and escalation of compliance actions and regulatory changes • Due diligence throughout procurement and tender processes • Enhanced project governance framework (including project steering committees, internal audit program and periodic program reviews) • Consistent risk reviews performed to identify and manage risks throughout the project lifecycle • Proactive focus on relationship management with current and potential contractors and suppliers including senior management engagement with major contractors and stakeholders (including government and community partners) • Clarification of project scope, consideration of alternative contracting frameworks and commercial engagement models including risk allocations. • Proactive contractual management and enhancement of claims management processes
Changes in government policies or legislative and regulatory environment A change in law, regulation, government policy - including direct Government intervention – or regulator expectations – could adversely impact our operations, financial performance or reputation, together with our ability to execute our strategy and drive growth. Delivering our major projects to meet agreed outcomes Project risk allocation, combined with ineffective contractor engagement and management contractor performance and broader industry and geopolitical conditions, could lead to a failure to procure and deliver projects on time and within budget, impacting our reputational standing, financial performance and/or future growth opportunities
Risk remains a key focus due to our ongoing engagement with the NSW Government to finalise toll reform
Challenges continue to be experienced in the construction industry as a result of the impact of current geopolitical and macro-economic conditions.
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