2024 Corporate Report

Governance and risk

Key risks – Opportunities and threats 1

Up Down Neutral

Threat

Trend Change in threat within FY24

Example management responses

Dependency on third parties and critical supply chains Loss of a strategic supplier could lead to disruption to Transurban. The potential impact of third- party failure includes operational disruption, increased costs, and reputational damage. Delays and disruption could also be experienced with supply chains due to the impact of regional conflicts and significant weather events on supply chains and logistics. Inability to attract and retain the workforce capability required by the organisation for critical roles An inability to attract best talent as well as ensure that we retain the key critical people necessary to drive and grow the business could lead to the unavailability of critical key roles or capabilities.

Increase reflects global economic and geopolitical

• Due diligence throughout procurement processes • Environmental scans and proactive industry engagement • Supplier and Contractor Management Framework which includes requirements for Supplier Performance Management • Ongoing delivery of Sustainable Procurement Program including acting in accordance with the Modern Slavery Act requirements, potential climate change obligations and collaboration with suppliers to respond to potential risks within our supply chain • Considerations of alternative risk sharing concepts including sharing of risk for supply impacts and cost escalations • Explore opportunities for engaging a broader range of contractors, through innovative and project-specific procurement packaging • Review of new industry procurement and contractual approaches • Strategically prioritising talent growth and development opportunities • Workforce planning • Regular talent reviews and succession planning • Employee engagement, belonging and wellbeing initiatives • Strategic sourcing for agreed roles • Tactical strategies including resourcing, retention, performance and remuneration to support acquisition and retention of critical skills • Key industry partnerships/memberships • Annual pay equity reviews to identify and address any gaps in pay • Rating protections through Transurban’s predictable cash flow from established concessions, which are supported by embedded Tarif escalations • Regular reporting of funding activities, performance against key metrics, compliance, operational issues/breaches • Annual review and approval of the Treasury Frameworks, Treasury Policy and Charter by the Board • Capital Strategy and annual review of the Funding Plan • Monthly reporting of compliance against debt limits, targets and covenants to ensure compliance with risk appetite • Debt book management • Stress testing of debt exposure based on market assumptions • Disciplined approach to opportunities • Effective management of costs, debt and balance sheet • Framework to prioritise our capital allocation and refreshing our distribution policy

challenges impacting global supply chains.

Risk has reduced based economic conditions.

Treasury management of debt, liquidity, and balance sheet Volatility in interest rates, hedging and refinancing could impact financial exposure and funding for new projects.

Risk remains a focus in light of economic conditions to ensure that the existing business’ funding and market risks are appropriately identified and managed, as well as ensuring that the balance

sheet is positioned to deliver on the Group’s growth strategy.

With board transitions successfully completed risk is focus on CEO transition plan.

• Transition plan development and implementation • CEO and Board engagement • Operating model project management team

CEO transition and operating model changes Failure to effectively manage CEO transition and operating model changes could impact on business performance and market confidence.

1 Transurban’s exposure to financial risks and the policies we have in place for managing that risk can be found in the Derivatives and Financial Risk Management notes – see Note B14. This section discusses our hedging policies, credit risk, interest rate risk and liquidity and funding policies. Transurban considers the impacts of climate change as a potential contributing factor to many of our threats and opportunities. For more information on our climate change management strategies and our consideration of transition and physical risks refer to climate change risk management on pages 38–47 of this report

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