Business performance
Climate governance
Stakeholder engagement To support our climate response and prepare for new and emerging disclosure requirements (page 37), we have conducted stakeholder engagement across the business. FY24 initiatives include: • Double materiality assessment: co-led by the ESG and Sustainability, and Finance teams, involving extensive engagement with internal and external stakeholders, including direct interviews with investors (read more on page 8). • Capacity building: delivered business-wide internal training on climate-change science, and conducted climate scenario planning workshops with internal stakeholders from Asset Management, Corporate Affairs, ESG and Sustainability, Government Relations, HSE, Operations, Project Delivery, Finance, Risk, Strategy and Traffic teams. • Climate Change Adaptation Plans: developed for CityLink, and several NSW assets (Cross City Tunnel, Eastern Distributor, Lane Cove Tunnel, M4, M4-M8 Link, M5 East, M5 West, M8), engaging teams from Asset Management, Finance, HSE, Operations, Risk, and ESG and Sustainability. • ASRS Steering Committee: created a new ISSB Governance Project Manager position and established a Steering Committee, chaired by the CFO, to oversee ASRS reporting-readiness across the business. Concurrently, we have engaged broadly across the business to support awareness, education, and uplift in anticipation of new reporting requirements. • Project Delivery Scope 3 Working Group: established cross-market Project Delivery working group to review and update our approach to achieving embodied-carbon reductions in project delivery and building out transition planning detail in light of emerging innovations and technologies.
Board oversight Climate-related risks (threats and opportunities) are overseen by the Transurban Board. The Audit and Risk Committee (ARC) assists the Board in oversight of such risks. Throughout the year, the ARC is updated on key risks (which may include any material risks with a cause or consequence related to climate change) through our standard business and operational risk reporting. The ARC also receives dedicated updates on climate-related risks, areas of progress and relevant regulatory developments, including in relation to new mandatory climate-related financial disclosures. Our Enterprise Risk Management (ERM) process (Figure 24, page 79) outlines our methodology for identifying, assessing and governing our physical and transition risks, and for ensuring appropriate escalation for decision-making and proactive management where required. Management responsibility Climate change is considered a key risk area, and its impacts are seen as contributing factors to many of our strategic, business, operational and project risks (threats and opportunities). All areas of our business are therefore responsible for identifying and managing climate-related risks. Climate-related risks are identified, assessed and prioritised using our ERM Framework, consistent with our other risks, and in line with our business-wide approach for managing risk. Supporting these activities, the strategic response and overall direction is managed, and monitored through the ESG and Sustainability and the Risk teams. In FY24, preparations for the introduction of mandatory climate-related financial reporting were led by both the ESG and Sustainability and the Finance teams, with oversight from the CFO.
In developing asset-specific Climate Change Adaptation Plans (CCAPs) we engage relevant stakeholders to help consider relevant climate-related risks (threats and opportunities). These are then integrated into the risk-based decision making for the operations and maintenance of the asset. These are then also used as scenarios to support our resilience and response planning exercises. During this transition period, both in preparation for anticipated ASRS reporting requirements and in adopting our new operating model, we have recognised a need for the continued evolution and integration of our governance approach to climate and sustainability-related risks (threats and opportunities). To address this we have conducted wide-ranging internal stakeholder engagement, while utilising several governance bodies for management oversight of climate-related risks and associated activities. In FY24, from Q1 to Q3, the Customer, Community and Sustainability Council provided governance and guidance for the development and implementation of Transurban’s customer, community and sustainability agendas. 1 A cross- disciplinary working group, the Climate Change Governance Committee, provided additional internal input on climate-related initiatives, management priorities, and emerging industry trends as needed. A new ASRS Steering Committee, sponsored by the CFO, was also created to oversee the implementation of the expected ASRS requirements. Under our new operating model, which came into effect in June 2024, the Group Executive Corporate Affairs will be accountable for sustainability and climate-related activities.
1 T he Customer, Community and Sustainability Council convened through Q3 2024 and was paused with the announcement of our new operating model
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