Business performance
Resilient infrastructure and operations Climate change poses both threats and opportunities to our business that could have a financial impact on revenues, expenditures, assets, liabilities, capital and financing particularly over the medium and long term. See Figure 13 (page 46) for a more detailed summary of threats and opportunities. Our infrastructure may face a range of climate-related physical and transitional risk drivers, both acute and chronic, which may lead to financial, operational, and service delivery impacts. These include transitional risks such as changing stakeholder, regulatory and political environments, as well as acute physical events such as extreme weather linked to bushfire or flooding. For example, in January and February 2024, Brisbane saw a 1.1% decrease in car and heavy vehicle traffic, largely due to significant rainfall. Rainfall was approximately three times the previous year. Figure 11 illustrates a climate-related logic map for the potential financial impacts of extreme rainfall. Based on climate-related physical and transition risks identified and assessed to date, through high-level qualitative scenario analysis and asset-specific CCAPs, we currently do not expect any resulting material impacts to our organisational strategy in
Figure 11: Example climate-related logic map for increased instance of extreme rainfall
the short term (2030). In the medium (2050) and longer term (2090), we may be affected by both acute and chronic physical events, given these impacts are projected to be more frequent and intense over time. However, further analysis of climate-related risks is planned in FY25 to assess the associated impacts to our organisational strategy. We also recognise it is important to consider the potential implications of the accumulation of events and the interrelation of different events, such as sea-level rise and storm surge. We will continue to consider these possible impacts as part of our ongoing scenario planning. Progress on asset Climate Change Adaptation Plans (CCAPs) In 2022, we adopted a standardised approach for our operational assets with regard to physical climate-related risk identification and adaptation management. CCAPs identify relevant hazards and exposures, assess business risk and define adaptation pathways to assist in the mitigation of climate-related risks and resilience of all assets. CCAPs use RCP 8.5 climate projections from the CSIRO to assess physical risks under a high-emissions scenario to ensure a high level of resilience across our assets to changing climate conditions.
Increased instance of extreme rainfall
Flooding on Transurban roads and connecting arterials
Disruption for road users Financial impacts
Reduced road trips
Increased maintenance of drainage
Lower revenue
Higher costs
Potential flow on effects
Impact on value of concessions
Impairment
Changes to maintenance schedule
Fully electric incident response vehicle, M2 Motorway Control Centre, Sydney
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