Corporate Report for the year ended 30 June 2022
Introduction and overview
Business performance
Governance and risk
Directors’ report
Remuneration report
Financial statements
Sustainability supplement
Security holder information
Buying better Our Sustainable Procurement Program directs more spending towards community social, economic and environmental wellbeing. For example, the program is helping deliver local community benefits by creating jobs, including for disadvantaged groups.
Labour and supply chain challenges
In Australia, skilled visa availability has been declining for the past five years, contributing to a labour shortage further exacerbated by two years of pandemic- related border closures. 2 With multiple city-shaping construction projects underway and many more planned, this national skilled labour shortage risk is impeding overall capacity to deliver critically needed infrastructure projects. In response to capacity constraints and demand in the market, we are exploring opportunities for more flexible project delivery models that may relieve a portion of current labour constraints. For example, splitting project scope/works packages to attract a broader range of contractors, including Tier 2 and 3 suppliers. This approach creates opportunities for smaller operations to build capacity and capability. We’re also building industry capacity through our projects. For example, on the West Gate Tunnel Project, our resourcing aligns with the Victorian Industry Participation Policy (VIPP), promoting access to local small to medium enterprises (SMEs) to supply this major project. To date, 46% of our delivery partners are categorised as SMEs. We’re also delivering on the Victorian Government’s Major Project Skills Guarantee, with apprentices working 12.3% of our labour hours—2.3% more than the 10% minimum requirement. This ensures young Victorians develop valuable skills, benefitting directly from the project.
Sustainable supply chain In FY22, we continued progress towards achieving net zero GHG emissions in our supply chain and projects by 2050 (read more on page 38). We engaged with our suppliers on reducing their environmental impact through using low-carbon materials, reducing energy use and transitioning to renewable energy. We assess our suppliers’ efforts in taking practical action towards the United Nations Sustainable Development Goals (UN SDGs) via Support the Goals, an international agency that rates and recognises businesses’ UN SDG efforts. So far, around 25% of our top suppliers have taken action on the UN SDGs. We will continue using our influence and buying power to drive more sustainable supply chain outcomes. Investment partners We have seven investment partners across 15 assets. Our investment partners operate or own infrastructure assets in more than 35 countries and have more than $1.6 trillion in collective funds under management or net assets. Partners include leading global pension funds and infrastructure investors. The direct asset funding our investment partners provide enables us to access new markets and assets with less reliance on the Transurban balance sheet. Our expertise as a global toll road operator, coupled with our project delivery capability, attracts quality investment partners. In FY22, the Sydney Transport Partners (STP) consortium strengthened its commitment to the Sydney market by acquiring the remaining 49% share in WestConnex, for $11.1 billion. Read more on page 66.
Supporting small business cashflow
During FY22, we spent more than $71 million with 664 Australian small businesses 1 that supply us with goods and services ranging from personal protective equipment (PPE) to office supplies. We know reliable and on-time cashflows help small businesses grow and support their people. We’ve signed the Business Council of Australia’s (BCA) Supplier Payment Code, including agreeing to pay eligible Australian small businesses on time and within 30 days. In the first half of FY22, we paid 98% of Australian small businesses within 30 days of invoicing. Recognising the impact of the floods, we halved our payment terms between March and 30 June 2022 to support our Queensland-based small business suppliers.
Investment partnership Members
Assets
Sydney Transport Partners
Transurban, AustralianSuper, Canada Pension Plan Investment Board (CPP Investments), Tawreed Investments Ltd and Caisse de dépôt et placement du Québec
WestConnex, 3 currently comprising of M4, M8, M5 East
Airport Motorway Pty Limited Transurban, IFM Investors and UniSuper
Eastern Distributor
North West Roads Group
Transurban, CPP Investments and QIC Limited Transurban, AustralianSuper, CPP Investments and UniSuper Transurban, AustralianSuper, Tawreed Investments Ltd
M7, NorthConnex
495 Express Lanes, 4 95 Express Lanes, 5 395 Express Lanes AirportlinkM7, Clem7, Gateway Motorway, Go Between Bridge, Legacy Way, Logan Motorway
Transurban Chesapeake
Transurban Queensland
1 Entities with an annual turnover of less than $10 million 2 T he Age (2022), ‘We’ve got a crisis. We need workers’: Big business urges election winner to boost migration. Accessed 30 June 2022 3 WestConnex concession includes M4–M5 Link and Rozelle Interchange (both currently under construction) 4 495 Express Lanes concession includes the 495 Express Lanes Northern Extension Project (currently under construction) 5 95 Express Lanes concession includes the Fredericksburg Extension (currently under construction)
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