Climate Change Data

Environmental Metrics

ESG Focus Areas

• Energy transition
• Sustainable mining
• Water security

Environmental Achievements

• Increased proportion of revenue from sustainable focus areas to 33.6% in FY24

Social Achievements

• Improved employee retention rates and reduced recruitment costs

Governance Achievements

• Improved operating disciplines and control under new management

Climate Goals & Targets

Environmental Challenges

• Historically, sustained profitability has been affected by underperformance in several fixed-price contracts
• Challenges with labour costs and availability
• Project underperformance impacts profitability
• Macro weakness inhibiting growth

Mitigation Strategies

• Reduced exposure to fixed-price contracts; reimbursable, O&M and training projects now represent more than 72% of group revenue
• Improvement in operating efficiencies and cost controls
• Divestment of unprofitable training assets
• Improved project delivery performance (FY24 projects achieved above bid margin at aggregate)
• Improving the risk weighting of the portfolio

Supply Chain Management

Climate-Related Risks & Opportunities

Opportunities

• Capitalising on Australia’s energy transition story

Sustainable Products & Innovation

• StacksOn technology

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• COVID-19 impacts on Training business (lockdowns, trainer shortage)
• Legacy poor performing projects impacting margins and EBITDA
• Challenges in retaining and attracting talent due to labor shortage

Mitigation Strategies

• Renegotiated bank debt facilities
• Launched a new Training website
• Secured additional State based funding agreements for training
• Increased marketing efforts and search engine optimisation for training
• More rigorous and disciplined approach to pricing and refined internal commercial models for projects
• Pricing escalation in contracts to maintain margins
• Active interest in identifying bolt-on acquisitions

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• StacksOnTM

Environmental Metrics

ESG Focus Areas

• Sustainability
• Clean Energy Transition
• Digital Transformation
• Safety

Environmental Achievements

• Assisting energy companies transition to net zero emissions
• Involvement in the world’s first shipment of hydrogen
• Waste-to-energy project in Victoria
• Construction of one of Queensland’s first green hydrogen generation facilities powered entirely from solar
• Hydrogen refuelling station trial in New South Wales

Social Achievements

• Zero lost time injuries for the sixth consecutive year
• Wellness initiatives - mental health support, flexible working arrangements
• Verbrec Academy launched, including the Verbrec Emerging Leaders Program
• Government funded job ready training programs for the under-privileged and unemployed

Governance Achievements

• Enhanced risk identification guidelines
• Improved estimating and pricing tools
• Robust commercial evaluation framework
• Appointment of Sarah Zeljko as Chair of the Board Proposal Approval Committee

Climate Goals & Targets

Environmental Challenges

• COVID-19 related disruptions and workplace restrictions
• Border closures and floods
• Sickness amongst trainers in the Industry Training business
• COVID-19 travel and indoor gathering restrictions impacting training course participation
• Floods in Queensland disrupting classroom schedules
• Three legacy projects impacting profitability

Mitigation Strategies

• Resilience and determination of employees to deliver solutions
• Transferring aspects of training courses to online delivery
• Investments made to merge Competency Training and Site Skills Australia businesses
• Enhanced risk identification guidelines, improved estimating and pricing tools, and a robust commercial evaluation framework

Supply Chain Management

Climate-Related Risks & Opportunities

Opportunities

• Opportunities in renewable energy projects and operational technology

Sustainable Products & Innovation

• StacksOn™ software

Environmental Metrics

ESG Focus Areas

• Electrification & Energy Storage
• Gas Market Transition
• Sustainable Mining
• Water Security

Environmental Achievements

• 33.5% of FY2024 revenues were generated from projects related to sustainable focus areas.
• Achieved eighth consecutive year of zero lost time injuries.

Social Achievements

• Decreased voluntary employee turnover by 9.0% compared to FY2023.
• Revitalized employee value proposition and benefits program.
• Launched internal learning and development program with over 1,400 e-learning modules completed.

Governance Achievements

• Established a Sustainability Committee.
• Published Sustainability Policy and Climate and Sustainability Position Statement.
• Successfully completed a $4.0 million capital raise (before fees), with 10% contributed by Directors, CEO, and executive management team.

Climate Goals & Targets

Environmental Challenges

• Industry-wide competition for professional labor with skills applicable to the evolving energy landscape.
• Higher than desired employee turnover rates.
• Poor performing legacy projects (finalized in H1 FY2024).

Mitigation Strategies

• Improved operating efficiencies and reduced overhead burdens, resulting in annual overhead reduction of $2.3 million.
• Divestment of unprofitable parts of the training business.
• More selective project selection focusing on economically attractive, higher-margin projects and clients.
• Appointment of new managers throughout FY2024.
• Revitalised key account management program.
• Increased proportion of reimbursable, O&M, and training projects (71.7% in FY2024 vs 60.5% in FY2023).

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• StacksOn™

Environmental Metrics

ESG Focus Areas

• Energy Transition
• Sustainable Mining
• Decarbonization

Environmental Achievements

• Delivered Snapper Point PRMS project supporting lower emissions compared to diesel generators
• Delivered Broadlands Biogas Upgrade project supporting NZ's energy transition and circular economy
• Engaged in Australian first battery trial assessing applicability and integration of new battery technologies

Social Achievements

• Improved employee well-being through operational review and divestment of unprofitable parts of the training business resulting in $4.8 million in annual savings
• Strengthened client relationship program
• Upskilling client personnel to meet the challenges of the rapid energy market transition through Competency Training

Governance Achievements

• Operational review and reduction in overheads resulting in annualised EBITDA saving of $1.8 million
• Improved project management systems and procedures
• Streamlined structure and GM accountability

Climate Goals & Targets

Environmental Challenges

• Poor performing projects
• Changing nature of the market
• Competition

Mitigation Strategies

• Poor performing projects closed
• $4 million capital raise completed
• Refreshed strategy aligned with growth in the sustainable energy market
• Focus on relationship clients to increase revenue share
• Operational review and divestment of unprofitable parts of training business

Supply Chain Management

Climate-Related Risks & Opportunities

Opportunities

• Growth in renewable energy generation areas
• Opportunities in battery and energy storage technologies

Sustainable Products & Innovation

• StacksOn