Business performance
Transition to net zero We have set a target for net-zero GHG emissions by 2050 across scope 1 (fuel), scope 2 (electricity) and scope 3 (value chain). This includes interim science-based targets (SBTi validated) to reduce absolute scope 1 and 2 GHG emissions 50% by 2030, and to reduce carbon intensity of purchased goods and services (scope 3, category 1) by 22%, and major projects (scope 3, category 2) by 55%, by 2030. 1 Achieving our 2050 target is dependent on innovation, government policy and GHG reduction across hard-to-abate sectors in our value chain (such as cement, steel, and asphalt). While we are committed to working with value chain partners and governments on new and emerging technologies to reduce GHG emissions, our ability to meet our targets may be limited to what is possible in the Australian and North American context, such as compliance with engineering specifications. In FY23, we achieved our interim 2030 GHG targets seven years early 2 and in FY24 we achieved a scope 1 and 2 emissions reduction of 70% compared to FY19 baseline (a 30% year-on-year reduction). We increased our use of renewable electricity to 87% in FY24. To reduce scope 1 emissions, which comprise 8% of our total energy use, we continue to seek opportunities to transition our direct fleet to EVs between now and 2030 and are also working with our contractors on opportunities to electrify incident response and maintenance vehicles. To reduce scope 2 emissions, which comprise 92% of total energy use, we continue to work on ways to reduce energy use across ventilation and lighting systems and transition towards 100% renewable electricity use. As part of working towards scope 3 emissions reduction, in FY22 we introduced supplier engagement on GHG management via CDP Supply Chain Reporting. We continue to expand this engagement each year. In 2023, 108 major suppliers were engaged to report through CDP processes, 3 representing more than 60% of value chain emissions from purchased goods and services. Engaging suppliers and having oversight of their progress is critical in meeting our overall emissions reduction targets. We also continue to work with our delivery partners on major projects to increase the use of lower-carbon construction materials at asset planning, design and development stages.
Industry-wide, we continue to engage with the Materials and Embodied Carbon Leaders’ Alliance (MECLA) – comprising over 140 industry representatives and government agencies working together to reduce embodied carbon across the building and construction industry and to reduce carbon emissions by one million tonnes by 2030. In FY24 we supported the Business Council of Australia’s Net Zero Project 2035 to develop emissions reduction targets and associated sectoral decarbonisation pathways for priority sectors including transport. We are also participating in the Australian Sustainable Finance Institute’s (ASFI) Australian Sustainable Finance Taxonomy Technical Advisory Group for Transport. CDP supplier engagement results 3 61 /108 of requested suppliers disclosed via CDP 70% reported having absolute and/or intensity based GHG reduction targets in place 77% renewable electricity use reported 49% reported having climate change integrated into their business strategy and/or a transition plan aligned to 1.5°C degrees 37% reported climate change integration was in development or influencing their strategy
Customer emissions Travel on our roads results in indirect use- phase emissions, dependent on the type of customer and vehicle used. While we design and operate roads in a manner that aims to reduce individual customer emissions compared to alternative routes (through improved free flowing traffic conditions and smoother gradients), we have a very limited ability to influence customer vehicle selection, the primary driver of indirect use- phase emissions. As such, we do not report customer emissions under the optional indirect use-phase boundary (scope 3, category 11). We acknowledge the significance of road transport-related emissions, and playing a role in reducing these emissions is an important part of our climate change response. To promote visibility, we estimate and report customer travel emissions in our disclosures. See our FY24 Sustainability Data Pack for more information. We seek to reduce transport-related emissions by: • designing and managing roads to minimise emissions, including flatter gradients and reducing congestion • participating in EV advocacy and education • leveraging our data, internal capability and network to play an enabling role in transport decarbonisation activities. On average, our customers reduce their vehicle GHG emissions by 29% when using one of our roads compared to the alternative route. 4 Sustainable driving and mobility As part of our sustainable driving program, in FY24, we carried out two of pieces of research: Transurban Insights: Electric Vehicles, as well as a study into EV attitudes and perceptions with high-mileage, car-reliant communities in our Australian markets. We also launched our EVs for Everyone initiative to help address the barrier of EV affordability (read more on page 33). In June 2023, we launched a competition for our EV-driving customers, giving away $10,000 worth of charging vouchers. For our commercial customers, we have engaged in multiple freight decarbonisation industry and government workshops to better understand requirements and inform our sustainable driving strategy. And for our people, in FY24 we partnered with Uber to use their Uber Green product – a low- emission option for corporate travel which help reduce business-related travel emissions. Transurban employees based in Victoria were also given the opportunity to take a Tesla for a two-day test drive, to experience using an EV.
Our FY24 Sustainability Data Pack provides a detailed breakdown of our energy and GHG emissions, transurban.com/reporting Our Transurban GHG Basis of Preparation describes the key activity boundaries, methodologies, and references used to prepare our reported GHG emissions and associated climate disclosures, transurban. com/ghg-basis-of-preparation
1 F or more information on Transurban’s reporting methodology and scope see the Transurban GHG Basis of Preparation 2 Achieved a 56% absolute scope 1 and 2 GHG emissions reduction in FY23 relative to FY19 baseline 3 2023 results 4 G HG savings compared to next best alternative un-tolled route(s), see the Transurban GHG Basis of Preparation for more information
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