2024 Corporate Report

Business performance

Climate variables considered include: temperature and heatwaves; rainfall and flooding; bushfire weather; sea-level rise; droughts; and relative humidity, over the short (2030), medium (2050), and long term (2090). Facilitated by an independent consultant, the development of CCAPs involves our operations and asset management specialists, as well as Risk, HSE, and ESG and Sustainability representatives. Identified risks are assessed using our Enterprise Risk Management Framework and added to a climate risk register, along with identified controls and potential adaptation options. Additional workshops are then undertaken to develop adaptation pathways and delve into potential risk mitigation measures in more detail to understand potential thresholds and triggers for implementation over the life of the asset. Climate-related risk is also included in our Strategic Asset Management and Operations Plan. CCAP findings are also integrated into our business resilience activities and enable teams to exercise and enhance their response to climate-based disruption events. We also monitor indicators, such as vehicle breakdowns in extreme weather, to gauge whether our adaptation actions are sufficient. In FY24 six new CCAPs were developed for assets in Victoria and NSW resulting in climate-related risk assessments and adaptation pathways substantially in place for most of our assets. We are committed to completing CCAPs for remaining assets in FY25, and developing CCAPs for future assets following an initial period of operations. CCAPs have generally identified a high degree of resilience to projected climate change impacts. Adaptation plans have helped the business understand both shared and unique risks across assets and timeframes, and highlight key areas to monitor and consider for future decision making. For example, in future decades, sea-level rise could impact the operation of drainage infrastructure in tunnel assets, while various hazards, including storms and heatwaves, could reduce the reliability of the electricity supply. Given the complex and interdependent nature of climate risks, responding to these and other risks will require external stakeholder engagement, including with customers, local and state governments, and other infrastructure operators, to increase risk awareness and to coordinate shared adaptation and resilience actions.

Long-term asset impacts, controls and actions We have analysed possible long-term threat and opportunity impacts across individual asset components using the most extreme climate projections aligned with a 4ºC ‘business as usual’ scenario and identified potential impacts likely to occur from now until 2100 (aligned with RCP8.5). The analysis combined market-specific data that captured differences across asset locations and the broader markets where we operate. Our assets are designed and delivered in accordance with industry best practice, including the IS rating scheme in Australia and Envision in North America, which consider climate-related impacts. These ratings award credits to projects that assess climate-related risks and incorporate adaptation measures into project design, amongst other economic, social, and environmental sustainability criteria.

This helps to build resilience into design and operations for the future longevity of our assets. A long-term timeframe and extreme climate scenario have been used given the forecast useful life of infrastructure assets, our long operational concession periods, and the opportunity to capture and prepare for worst-case climatic changes. These potential long-term impacts and control measures have been progressively incorporated into asset- specific adaptation plans. A summary of possible long-term impacts, current controls and actions is in our FY24 Sustainability Data Pack. This informs our climate risk management process and broader Climate Change Framework (Figure 10). For detailed breakdowns of our IS and Envision

ratings, our TCFD response to metrics and targets, and our TCFD Index, see our FY24 Sustainability Data Pack, transurban.com/reporting

Kinetica, M2 Motorway, Sydney

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