Business performance
Threat 4: Macroeconomic and land-use changes (caused by climate policy and severe weather events) alter city travel patterns, development opportunities and toll-road use, impacting traffic models and revenue 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 • Economic growth slows and affects future development and growth opportunities • Reduction in long-term revenue as city travel patterns shift due to climate impacts • Ongoing monitoring of travel patterns and patronage across the markets where we operate through our strategic traffic modelling capability • Monitored valuation and project due diligence processes • Tracked national and global climate policies, changes to insurance and city planning, and renewables transition progress in Australia and North America • Continued financial impact assessment in response to identified threats. Investigated and monitored long-term transition and physical impacts across our asset operations
Opportunities
Opportunity 1: Showcase our leadership in climate-risk management to open new market opportunities, strengthen relationships with existing government partners, and capitalise on innovation opportunities 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
• New market opportunities • Favourable lending rates
• Active engagement and partnering with our supply chain, government partners, and industry to enhance sustainability outcomes for our projects, assets, and communities • Continued to benchmark major project and operational asset sustainability performance against robust, third-party standards (page 69). See the FY24 Sustainability Data Pack for more • Supported lower-emission materials and strengthened future asset resilience via MECLA. Read more on page 69 • Continued developing climate change risk and adaptation pathways through relevant workshops. This included adaption workshops for select NSW and Victoria assets, and the development of asset-specific climate change risks and adaptation pathways • Targeted and business-wide educational programs • Resourcing for increased focus on sustainability including new roles, including Group Executive Corporate Affairs (with oversight of ESG and Sustainability team) and a Climate Manager • Ongoing disclosure and engagement with our investors • Continued financial impact assessment in response to identified threats
• Increased trust and reputation with community and other key stakeholders • Partnership opportunities for research and innovation
Opportunity 2: Take proactive steps to reduce scope 1, 2 and 3 GHG emissions and customer emissions, and transition to net zero 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 • Mitigate impacts associated with any carbon taxes and fluctuations in pricing
• Ahead of target for scope 1 and 2, with emissions 70% below 2019 levels (30% year-on-year reduction) • Renewable energy transition underway, with 87% renewable electricity use in FY24 (9% year-on-year increase) • Transitioning fleet, as well as our contractors’ vehicles, to electric low-emission vehicles • Continued to review and seek opportunities to implement or partner with our suppliers on use of lower-carbon and circular materials on current assets and major projects. For example, on M7-M12 Integration Project, our contractor is using B5 bio-diesel across the project’s lighting and generators which delivers a 5% GHG reduction compared to traditional mineral diesel. Recycled materials are also being used in construction activities, including more than 9,000 tonnes of recycled densely graded base (DGB). Read more on page 69
• Reduce operating expenditures (energy) • Demonstrated leadership in sustainability • Improved trust and reputation with stakeholders
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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