Business performance
Climate risk management
Consideration of climate-related risks extends across our current operational activities as well as our longer term strategic and growth activities.
Managing climate-related risks We continue to monitor the regulatory environment and our supply chains to ensure that assumptions and potential impacts remain up to date with national trends, and climate science. Four strategic climate-related threats and two opportunities (Figure 13, page 46) inform our Climate Change Framework (Figure 9, page 38). The six themes represent the most material and relevant potential impacts to our organisation and business operations across our three climate scenarios (Figure 12, page 44). We consider possible risks both from a threat and opportunity impact perspective across different time horizons, the likelihood and consequence that the risk will be realised, the relationship with our organisational strategy and financial systems, and the effectiveness of existing controls. Our management response provides commentary on the interdependencies across overarching risk themes, and the relevant financial category which could impact our financial processes. Each risk theme is supported by detailed control and management measures at the organisation and asset levels where applicable.
We consider risks as threats (for example, changes in patronage, failure of technical infrastructure or an inability to respond effectively to a disruption) and opportunities (for example, enabling new business opportunities or ways of working in our target markets). Climate change is also integrated into our enterprise approach to risk management. Read more in our Governance and risk chapter (page 71). We identify and manage climate-related risks through our business-wide Climate Change Risk and Adaptation Guideline. Aligning with and supporting our enterprise approach to risk management, this guideline describes the process we use to identify, assess, manage, and escalate climate-related risks and document them in asset-specific CCAPs to ensure we are operating within our risk appetite. For the complete CCAP list, see the FY24 Sustainability Data Pack, transurban.com/reporting In FY23, we integrated climate-related risk as a consideration within our Strategic Asset Management and Operations Plans, as well as at a business and strategic level. These plans are integrated into our business resilience activities and enable teams to exercise and enhance their response to physical climate
risks. Given climate change risk continues to evolve, it is essential to monitor emerging trends. We do this through our ERM Framework and ongoing monitoring of our climate-related metrics. For new assets, we endeavour to include contractual requirements to undertake climate risk assessments, consider the impact of design and construction on the environment, and achieve third-party sustainability performance ratings. We are committed to achieving at least an Excellent IS rating (Australia) or Envision sustainability rating (North America) through design and construction for all major construction and development projects. Specific requirements for climate risk and adaptation are included in the IS rating tool, which drives projects to deliver innovative and resilient infrastructure under a worst-case scenario of approximately four degrees Celsius of warming by 2100. Within our supply chain, we engage with major suppliers to disclose GHG emissions, reduction targets and outcomes via CDP. In FY24, we expanded this group to represent more than 80% of our emissions from purchased goods and services.
Read more about how we’re assisting with decarbonising construction (page 69)
CityLink, Melbourne
45
Made with FlippingBook Digital Publishing Software