Business performance
Figure 13: Our strategic response to climate-related risks
Threats
Threat 1: Unexpected changes to stakeholder expectations, government policies and regulation in relation to climate change create an unfavourable operating environment, impacting our reputation and financial performance Relevant financial category 1 Relevant climate-related risk category Revenues, expenditures, assets and liabilities, capital financing Acute and chronic physical risk, policy and legal, market, reputation Potential business impacts Our management response • Changes to infrastructure approval and concession deed requirements • Increased capital expenditure and operating costs
• Interim (2030) and long-term (2050) GHG emission reduction targets • In FY24, 87% of our electricity needs met through renewable energy (with all markets now procuring a percentage of renewable electricity) • Continued to pursue opportunities to reduce embodied GHG emissions in materials such as concrete and asphalt across the lifecycle of our assets • Continued our sustainable procurement program and supplier engagement, including annual disclosure requests for our top-150 major suppliers via CDP • Monitored environmental and climate-related litigation cases, and broader media coverage of potential greenwashing • Engaged government partners and industry to drive climate response, including contributing to discussions and strategies. In FY24, this included supporting the Business Council of Australia’s Net Zero Project 2035 and the Parliamentary Friends of Electric Vehicles (read more on page 33) • Monitoring and preparing the business for emerging and anticipated mandatory reporting and disclosure requirements including IFRS S1 and S2, ASRS
• Increased risk of litigation associated with emissions and our contribution to climate change • Changes in access to capital, such as introduction of more stringent lending requirements • Community concern related to emissions affecting travel and transport choices • Global supply chain impacts from carbon pricing, extreme weather events, pandemics (such as COVID-19), global conflicts and resource constraints
Threat 2: Increase in incidence of severe weather events and average temperature affects lifecycle planning, disrupts operations, and increases operating costs Relevant financial category 1 Relevant climate-related risk category Revenues, expenditures, assets and liabilities, capital financing Acute and chronic physical risk, policy and legal, market, reputation Potential business impacts Our management response
• Disruption to power supply, possibly leading to increased operating costs and increased likelihood of blackouts • Heat-related injuries affect employee and contractor safety • Road user safety is affected in extreme weather events (water over road, reduced visibility) • Disruption to asset lifecycle, causing delays and possibly increasing funding allocation
• Adhered to and implemented robust design standards in accordance with industry best practice, including IS ratings in Australia and Envision in North America, which consider climate-related impacts • Monitored asset performance, implemented preventative and regular maintenance schedules, and asset inspections • Ongoing lifecycle planning processes for individual assets • Captured existing and emerging risks, and applied mitigation measures via our HSE management and risk management systems and processes • Applied road safety approach, including road safety action plans and performance measurement • Conducted climate-related risk reviews to ensure emerging trends, threats and opportunities are captured • Upskilled senior asset managers and operational staff via climate change risk and adaptation workshops. This included adaption workshops for select NSW and Victoria assets, and the development of asset-specific climate change risks and adaptation pathways • Delivered climate change awareness and resilience training for additional internal stakeholders throughout the business • Continued financial impact assessment, based on CCAPs results
Threat 3: Access to and use of our roads and tunnels is impacted during extreme weather events and in periods of extended rain and heat Relevant financial category 1 Relevant climate-related risk category Revenues, expenditures, assets and liabilities, capital financing Acute and chronic physical risk, policy and legal, market, reputation Potential business impacts Our management response • Changes to toll revenue • Changes to traffic patterns and forecasts • Impacts on customer safety • Ongoing implementation of asset-specific CCAPs to identify potential hotspots on our operational assets • Financial impact assessments continued in response to identified threats
1 T hreats and opportunities have been mapped to relevant financial and climate-related risk categories, as outlined in the TCFD Implementation Guideline 2021
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