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
Key risks—Opportunities and threats 1
Up Down Neutral
Threat
Change in threat within FY22 2
Example management responses
Failure of technical infrastructure or an inability to respond effectively to a disruption Failure to adequately maintain our infrastructure or failure to respond effectively to an emerging failure, incident or disruption, including preparing for potential changes to the operating environment, could lead to impacts on asset lifecycle planning, breaches of concession, possible safety risks and/or reputational damage.
• Transurban’s asset management and operations system and their associated processes • Supplier and Contractor Management Framework outlines requirement for regular audits, inspections and quality assurance assessments of contractors and sub-contractors • Asset reviews and Internal Audit Program Scenario analysis of future weather events and/or changes in the operating environment on system/asset reliability and asset lifecycle planning • Business Continuity Plan and Incident Management and Emergency Strategy Teams in place • Annual desktop exercises and field exercises with emergency services to coordinate response • Annual update and review of all corporate emergency procedures. • Contributions to policy discussions through submissions to government inquiries and draft strategies • Engagement with all levels of government—political and bureaucratic— to understand policy positions (and their potential implications) • Monitoring potential changes to stakeholder and government policies, including alignment to TCFD recommendations and transition to net zero • Compliance management system enhancement in place and automatic notification and escalation of compliance actions and regulatory changes • Compliance working group continues to oversee and report to Board on compliance activities. • Ongoing review of external trends and performance • Early identification of pressure points and action if changes identified. Responses include: – Review of cost base – Stress testing and scenario analysis
Less COVID restrictions on access combined with enhanced response training, including testing of climate change adaptation plans
Changes in government policies or regulatory interpretations A change in government policy and/ or expectations could impact on the ability to deliver the business strategy.
Potential impacts of emerging recession
Increase reflects global economic challenges
A potential recession could impact on business confidence leading to reduced economic activity, increased unemployment which (when combined with an increased cost of living) could lead to reduced revenue.
– Implement early changes to spend plans • Ongoing approach to financing activities.
1 Transurban’s exposure to financial risks and the policies we have in place for managing that risk can be found in the Derivatives and Financial Risk Management notes—see note B15. This section discusses our hedging policies, credit risk, interest rate risk and liquidity and funding policies Transurban considers the impacts of climate change as a potential contributing factor to many of our threats and opportunities. For more information on our climate change management strategies and our consideration of transition and physical risks refer to climate change risk management on page 89 of this report and our Sustainability Supplement 2 D irectional arrows are a general assessment only of the risk change over the year, detailed risk reviews are undertaken regularly to ensure alignment with our risk appetite statement as outlined in “Risk management” on page 82
88
Made with FlippingBook Annual report maker