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
Chair’s message This year’s Corporate Report
“By understanding what matters to our stakeholders, we create road transport solutions that make us a partner of choice”. These solutions come in many forms— from multi-billion-dollar infrastructure projects such as extending our Express Lanes in the US to create faster and more efficient travel choices, to enhancing technologies and rewards programs for our customers and supporting community organisations. Safety plays a critical role in many of our transport solutions. Our efforts begin right from the outset of our asset design and span our business from operations to research and education programs such as improving child car seat safety. We track our on-road performance using a Road Injury Crash Index (RICI)—the number of serious injury crashes per 100 million vehicle kilometres travelled on our roads. In FY22, pleasingly we achieved a RICI of 3.78, 11% lower than our target RICI of no more than 4.25. Our solutions also respond to the urgent and very real need to reduce greenhouse gas (GHG) emissions and to minimise our environmental impacts. ESG initiatives During FY22, we continued to make significant progress on a number of Environment, Social and Governance (ESG) initiatives that reinforce our sustainable business practices as well as our commitment to reduce our GHG emissions. We have committed to net zero emissions by 2050 from our operations, supply chains and major project developments and have also set targets for significant reductions by 2030 (see page 37). Our transition to renewable energy sources in FY22 led to a 46% reduction in GHG emissions compared to the previous year and we are now sourcing two thirds of our electricity from renewable sources. While our customers’ GHG emissions are not formally within our control, we recognise their impact on the environment and continue to educate our customers about efficient driving to reduce GHG emissions and fuel use. Further, by choosing our roads over alternate stop-start routes, drivers can save an average of 27% in GHG emissions. 2 During the year, we also launched initiatives to encourage the take up of electric vehicles (EVs). This included a campaign to support Australia’s COVID-19 vaccine rollout by offering vaccinated customers the opportunity to win an EV.
The need for climate action was put sharply into focus this year with major flooding in Queensland and NSW. Natural disasters such as these highlight the importance of resilience in both our operations and the design and construction of our assets. We will continue to work to better understand the financial implications that climate change may present for our operations and assets. Our progress is reported in our FY22 Climate Change Disclosure , which is available on our website. Recognising that sustainability is part of everyday business for Transurban, this year we have integrated more of our previous standalone Sustainability Supplement into this report. This approach endeavours to present the most holistic view of our performance. Our approach to sustainability is guided by our ongoing commitment to the United Nations (UN) Global Compact and the UN Sustainable Development Goals (UN SDGs). We have identified the UN SDGs that are most relevant to our business, and we report annually on how we are contributing to these global goals. Our achievements for FY22 are available in our Insights hub on our website. FY23 outlook As the world continues to adapt the way in which they move about, and with domestic and international travel returning, we feel confident that customers will continue to see value in using our assets. In FY23, we also look forward to progressing our development projects, in particular in Sydney. Civil works are complete on the final stage of WestConnex—the M4-M5 Link—and the project is expected to open to traffic in 2023. Project developments such as this, position us well for growth in the coming year. The Board has also issued guidance that it expects the FY23 distribution to be 53.0 cps representing approximately 30% growth on FY22. This will be subject to the Group’s distribution policy (page 73), traffic performance and macroeconomic factors, and timing of distributions from subsidiaries. 3 While FY22 again presented uncertainties, the team at Transurban maintained its focus on delivering for all our stakeholders. The Board would like to take this opportunity to thank all employees for their hard work and dedication in achieving so many milestones during the year.
We also thank our security holders for your ongoing support of Transurban and commend this report to you as an excellent summary of our performance in FY22. I would like to take this opportunity to thank my fellow Board members as well as the broader Transurban team for their commitment and dedication to the ongoing success of Transurban. I look forward to speaking with you further at my final Transurban AGM on 20 October 2022. In that time, Transurban has realised many milestones from our entry into the Queensland market to the creation of 85 kilometres of Express Lanes in the US, to the successful partnership that acquired Sydney’s WestConnex network. Achievements such as these are the result of a talented and committed team that is steadfastly focused on creating long-term value for our investors and other stakeholder groups. marks my final as Chair of Transurban as I have announced my retirement at the conclusion of this year’s Annual General Meeting (AGM) in October. Transurban is an exceptional business and I am extremely proud of our achievements since joining the Board in 2008 and becoming Chair in 2010.
Lindsay Maxsted Chair and Independent Non-executive Director
Scott Charlton Chief Executive Officer and Executive Director
1 R emaining concession life as at 30 June 2022 for each concession on a non-revenue weighted basis with each concession expiring in December 2060 2 Transurban internal calculation based on vehicle type, distance travelled and COPERT emission modelling tool 3 D istributions to be determined by relevant Board discretion at the time
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