Climate Change Data

Environmental Metrics

ESG Focus Areas

• Community Relations
• Environmental Management
• Employee Opportunities
• Customer Service

Environmental Achievements

• Reduced direct GHG emissions by implementing power saving clauses in contracts and improving ventilation system efficiency in CityLink tunnels (2,500 tonnes/year reduction)
• Reduced CityLink water consumption by 95% through a water treatment plant (saving over 750 million liters in three years)
• Implemented Greenfleet program for company vehicles and organized staff tree planting days
• Introduced environmentally sustainable design (ESD) in new Melbourne office fit-out

Social Achievements

• Launched TransGiving workplace giving program, raising over $75,000 for charities
• Launched TravelSmart employee sustainable travel program with 30% take-up rate in first two months
• Reduced permanent employee turnover by 3% (from 17% to 14%)
• Implemented a new Late Toll invoicing system on CityLink, reducing the number of automatic fines

Governance Achievements

• Established a CSR Committee with Transurban directors and independent advisors
• Introduced an Independent Customer Ombudsman for CityLink to increase accountability and transparency

Climate Goals & Targets

Environmental Challenges

• Managing growth while maintaining social and environmental commitments
• Addressing criticisms of the Public Private Partnership (PPP) model
• Addressing climate change and its impact on customer emissions

Mitigation Strategies

• Developed an overarching Community Relations Framework for consistent stakeholder engagement
• Commissioned research on the economic benefits of private toll roads
• Commissioned a Climate Change Risks and Opportunities Study to understand GHG impacts
• Participated in the Carbon Disclosure Project (CDP4)

Supply Chain Management

Responsible Procurement

• ECO-Buy program (developing a green purchasing policy, annual action plan, tracking system, and green purchasing survey)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3

Third-party Assurance: URS Australia Pty Ltd

Environmental Metrics

ESG Focus Areas

• Customers
• Community
• Environment
• Employees

Environmental Achievements

• Reduced annual GHG emissions from the CityLink tunnels in Melbourne by 10% (approximately 3,660 tonnes)
• Introduced Greenpath—a carbon offset program for Australian motorists
• Staged rollout of a new Environmental Management System to track and record the environmental impacts of operations
• Began a demonstration project for new sustainability standards in road construction

Social Achievements

• Contributed around $800,000 to local communities through partnerships and sponsorships
• Conducted in-depth formal stakeholder engagement with 38 key organisations
• Introduced a Financial Hardship Policy to help customers struggling to pay accounts
• Increased overall employee engagement from 81% in FY06 to 83%

Governance Achievements

• Published first Sustainability Report
• Listed for the first time in the Dow Jones Sustainability Indexes (DJSI) World list
• Included in the Climate Leaders List (Australia/NZ) in the Carbon Disclosure Project (CDP)

Climate Goals & Targets

Environmental Challenges

• Managing growth while maintaining and developing social and environmental commitments
• Responding to the global challenge of climate change
• Ongoing debate about the Public Private Partnership (PPP) model
• Increase in workplace incidents due to office relocation
• Delayed development of a formal Transurban policy on climate change with Group-wide targets for reductions in GHG emissions
• Community concerns in Australia about the benefits of toll roads provided through Public Private Partnerships (PPP)

Mitigation Strategies

• Improving systems and processes to understand and manage environmental and social footprints
• Completed an inventory of greenhouse gas (GHG) emissions and had it externally verified
• Developed an in-house traffic model to more accurately measure GHG emissions
• Introduced Greenpath carbon offset program
• Investigating ways to upgrade the CityLink recycling plant to reuse groundwater
• Supporting community information programs on the benefits of PPPs
• Investigating the causes of workplace incidents and implementing solutions (e.g., decals on glass doors)

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3 Application Level A+

Third-party Assurance: Independently assured

Awards & Recognition

• 2007 Interior Design Awards (corporate interior design category)

Environmental Metrics

ESG Focus Areas

• Marketplace
• Communities
• Employees
• Environment

Environmental Achievements

• Reduced corporate air travel resulting in an indirect energy consumption saving of 6.4 GJ and 444.9 tonnes CO2-e of GHG emissions.
• Six-week trial to reduce ventilation in CityLink’s Domain Tunnel at night, reducing electricity usage and GHG emissions by approximately 820 tonnes CO2-e a year.
• Reduced energy consumption at head office by about 3% through lighting upgrades.
• Reduced paper waste by approximately one million pages (saving 112 trees) through various initiatives.
• Recycled more than 126,000 e-TAG devices.

Social Achievements

• Achieved over one million safe work hours without a lost work day incident on the Capital Beltway project.
• Run for the Kids in Melbourne raised more than $1 million for the Royal Children’s Hospital.
• Employees raised almost $5,000 and over $21,000 through TransGiving for bushfire relief, matched by a company contribution of $100,000.
• Introduced a Sustainable Purchasing Policy to encourage sustainable business practices among suppliers.
• Became a signatory to the United Nations Global Compact.

Governance Achievements

• Introduced a business-wide Sustainability Framework, approved by the Board.
• Restructured the Sustainability Committee of the Board.
• Introduced a new Whistleblower Policy.
• Strengthened investment review process.
• Introduced a safety component making up 10% of management’s variable compensation.

Climate Goals & Targets

Environmental Challenges

• Increased Lost Time Injury Frequency Rate (from 7.37 in FY08 to 8.10 in FY09), mainly musculoskeletal injuries.
• Increased level of unplanned absences.
• Climate change risks: increased road maintenance costs, extreme weather reducing revenue, increased insurance premiums, potential business relocation impacting traffic and revenue.
• Regulatory risks related to climate change legislation in Australia and the US.
• Public debate around road transport's role in a carbon-constrained future.

Mitigation Strategies

• Introduced mandatory stretch breaks, additional tasks, and ergonomic intervention software to minimize musculoskeletal injuries.
• Developed a new attendance management framework with new processes, guidelines, and management training.
• Monitoring legislation related to climate change.
• Contracted AECOM to assess climate change impacts on CityLink infrastructure.
• Developing a Climate Change Strategy to manage risks and opportunities.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainable Purchasing Policy, Supplier Code of Practice

Climate-Related Risks & Opportunities

Physical Risks

• Increased road maintenance costs, extreme weather events reducing revenue

Transition Risks

• Higher energy prices, higher construction materials costs, potential impact on traffic numbers due to carbon pricing.

Opportunities

• Development of energy-efficient products and services; intelligent transport systems (ITS); High Occupancy Toll (HOT) lanes; road pricing systems encouraging GHG-efficient vehicles.

Reporting Standards

Frameworks Used: GRI G3

Certifications: Null

Third-party Assurance: Net Balance Management Group Pty Ltd

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• e-TAG with recycling program

Awards & Recognition

• Listed in Dow Jones Sustainability Indexes (DJSI) World List; included in Carbon Disclosure Project’s Climate Disclosure Leadership Index; member of FTSE4Good Index; won Best Sustainability Report in the Transport Sector at ACCA Awards.

Environmental Metrics

ESG Focus Areas

• Urban congestion and innovative transport solutions
• Public-Private Partnerships (PPPs)
• Climate change risks and opportunities
• Safety (employees and customers)
• Community engagement
• Employee engagement
• Gender diversity

Environmental Achievements

• Developed a formal climate change strategy.
• Reduced GHG emissions on CityLink by approximately 820 tonnes CO2-e per year (projected).
• Achieved carbon-neutral construction on the Southern Link Upgrade project.
• Reduced color printing by 15% in Australian offices.
• Improved waste management practices on CityLink and Eastern Distributor.

Social Achievements

• Launched CityLink Neighbourhood Connections community program.
• Completed CityLink Crossings community art project.
• Completed stage three of the Beecroft–Cheltenham LinkTrack.
• Launched Capital Beltway Community Grant Program.
• Reduced workplace Lost Time Injury Frequency Rate (LTIFR) by 48% in Australian offices.
• Increased paid maternity leave to 12 weeks and paternity leave to 2 weeks.
• Increased women's representation in management positions to 26%.

Governance Achievements

• Revised Code of Conduct introduced.
• Established Business Continuity, Emergency and Threat Management Steering Committee.
• Rolled out Transurban Infrastructure Governance Framework.
• Disbanded the Sustainability Committee (August 2010), integrating sustainability oversight into the Board.

Climate Goals & Targets

Environmental Challenges

• Urban congestion.
• Traditional PPP model scrutiny.
• Climate change risks (GHG emissions, physical impacts).
• Maintaining stakeholder engagement across different markets.
• Consistent and strategic approach to community investment.
• Measuring the impacts of community involvement.

Mitigation Strategies

• Working with governments on innovative solutions (managed lanes, road pricing).
• Advocating for responsible PPP models.
• Developing a climate change strategy and action plans.
• Developing a Transurban Stakeholder Engagement Framework.
• Setting new goals and working towards them each year.
• Refining stakeholder engagement processes.

Supply Chain Management

Responsible Procurement

• Supplier Code of Practice (SCoP) rolled out to top 15 Australian suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Physical impacts of climate change on infrastructure (CityLink risk assessment conducted).

Transition Risks

• Government action to address climate change.

Opportunities

• Demonstrating congestion (and fuel savings) benefits of HOT and managed lanes.

Reporting Standards

Frameworks Used: GRI G3

Third-party Assurance: Ernst & Young (limited assurance)

Awards & Recognition

• Australian Smart Infrastructure Award
• Silver Anvil Award of Excellence
• Work Zone Safety Awareness Award
• ACSI ‘Best Practice’ reporting

Environmental Metrics

ESG Focus Areas

• Safety
• Climate Change
• Urban Congestion
• Public-Private Partnerships
• Diversity and Equity
• Community Engagement
• Customer Service
• GHG Emissions Reduction
• Water Use Reduction
• Waste Reduction

Environmental Achievements

• Exceeded a five-year target to reduce Scope 2 GHG emissions on CityLink by 26,281 tonnes CO2-e.
• Achieved a 5.7% drop in energy use for ventilating the Domain Tunnel due to modified licence conditions.
• Hills M2 Upgrade predicted to create emissions savings of approximately 46,000 tonnes CO2-e per year.
• Capital Beltway HOT lanes operations center designed to be LEED certified, with expected long-term savings in water and energy consumption.

Social Achievements

• Reduced Australian employee Lost Time Injury Frequency Rate (LTIFR) by 68% compared to FY10.
• Achieved AS4801 safety accreditation.
• Introduced a Diversity Policy.
• Increased women in leadership positions to 29%.
• Launched a Women in Leadership program.
• Run for the Kids event raised $1.4 million for the Royal Children’s Hospital.

Governance Achievements

• Board approved a formal Climate Change Strategy.
• Implemented a new remuneration framework to better align executive pay with security holder return.
• Improved Environmental Management System (EMS) framework.

Climate Goals & Targets

Environmental Challenges

• Urban congestion.
• Funding new infrastructure projects.
• Climate change impacts.
• Maintaining high safety standards.
• Improving gender diversity in leadership.
• Managing community impacts of construction projects.

Mitigation Strategies

• Partnering with governments on upgrade projects to reduce congestion.
• Advocating for appropriately structured Public-Private Partnerships (PPPs).
• Developing a Climate Change Strategy and action plans.
• Implementing safety initiatives and achieving AS4801 accreditation.
• Introducing a Diversity Policy and launching a Women in Leadership program.
• Engaging with communities through public meetings, direct mail, and websites.

Supply Chain Management

Responsible Procurement

• Contractor pre-qualification system.
• Formal Contractor Working Group.

Climate-Related Risks & Opportunities

Physical Risks

• Increased maintenance costs
• Reduced asset life
• Potential reduction in tolling revenue

Transition Risks

• Increased cost of energy and construction projects due to carbon pricing.

Opportunities

• Congestion reduction leading to fuel savings and GHG emission reductions.

Reporting Standards

Frameworks Used: GRI G3

Certifications: AS4801 (Occupational Health & Safety Management System), ISO 9001:2008 (Project Delivery System)

Third-party Assurance: Ernst & Young (limited assurance)

Sustainable Products & Innovation

• More sustainable customer payment cards.

Awards & Recognition

• Best Report in the Transport Sector (ACCA)
• American Road and Transportation Builders Association’s 2011 Work Zone Safety Awareness Award
• 2010 Impact Award for Best Organisational Communication Program
• 2011 Government Partnership Excellence Award
• National ITS Australia Excellence Award
• Australian Smart Infrastructure Award

Environmental Metrics

ESG Focus Areas

• Be Good Neighbours
• Use Less
• Think Long Term

Environmental Achievements

• Achieved a 5.5-star NABERS energy rating for the Melbourne Head Office with a 10% reduction in energy use despite a 12% increase in occupants
• Installed 23.4 kW of renewable energy across Australian assets, bringing the total installed capacity to 140 kW
• Recycled more than 3,840 tonnes of solid waste (58% of total waste material) and sent around 2,755 tonnes (42%) to landfill. On development projects, more than 2,379,000 tonnes of material (99.7%) were recycled.
• Set a target to reduce Scope 1 and 2 emissions by 52% by 2030.

Social Achievements

• Overall Employee Engagement Index was 70%, a 2% increase from the previous year.
• Continued to enhance gender equality, recognized by the Workplace Gender Equality Agency as an Employer of Choice for Gender Equality and by Equileap as one of the top 20 organizations globally for gender equality.
• Invested more than $2.5 million in communities near our roads through partnerships, sponsorships, grants, and donations.
• Employees participated in more than 4,290 hours of volunteering.

Governance Achievements

• Maintained a ‘World Leadership’ position in Dow Jones Sustainability Index and recognized as the leading transport infrastructure company in the Global Real Estate Sustainability Benchmark.
• Achieved Payment Card Industry Data Security Standard (PCI DSS) compliance for Australian operations.
• Received an Employer of Choice for Gender Equality citation for a third consecutive year.

Climate Goals & Targets

Environmental Challenges

• Higher injury crashes in FY17 than in FY16, exceeding the target.
• Fatality of one of our contractor’s employees on the NorthConnex project.
• Increased GHG emissions in FY17 compared to FY16 due to the acquisition of AirportLinkM7.

Mitigation Strategies

• Implemented Road Safety Action Plans, established the Transurban Road Safety Centre, and awarded road-safety related innovation grants.
• Working closely with the contractor to support the family and ensure highest levels of safety are achieved.
• Established a science-based greenhouse gas emissions reduction target to achieve a 52% reduction in Scope 1 and 2 emissions by 2030.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Sustainability Code of Practice
• ISO 20400 alignment
• Social procurement initiatives

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Energy efficiency improvements, renewable energy expansion

Reporting Standards

Frameworks Used: GRI G4 Core

Certifications: ISO 14001, AS/NZS 4801, OHSAS 18001

Third-party Assurance: EY (limited assurance)

UN Sustainable Development Goals

• Goal 3
• Goal 5
• Goal 7
• Goal 9
• Goal 11
• Goal 12
• Goal 13

Transurban's activities contribute to these goals through road safety initiatives, gender equality efforts, energy efficiency programs, infrastructure development, community engagement, sustainable materials use, and climate change risk management.

Sustainable Products & Innovation

• EME2 asphalt

Awards & Recognition

• Dow Jones Sustainability Index World Index member
• Global Real Estate Sustainability Benchmark (GRESB) - Highest rated transportation company globally
• Infrastructure Sustainability Council of Australia awards
• Employer of Choice for Gender Equality
• Engineers Australia award
• Melbourne Awards

Environmental Metrics

ESG Focus Areas

• Safety
• Community Engagement
• Sustainability
• Climate Change
• Employee Wellbeing
• Diversity & Inclusion
• Financial Inclusion

Environmental Achievements

• Continued development of climate change management program
• Revised Sustainability Strategy aligned with UN SDGs
• 128 tonnes of waste from street sweeping and drain cleaning diverted from landfill and repurposed
• Two-year trial of alternative ventilation strategy for Clem7 tunnel resulting in energy savings and reduced GHG emissions
• Planting of more than 170,000 trees and a million shrubs as part of the West Gate Tunnel project
• Planting of more than 900,000 trees and shrubs as part of the WestConnex project
• Regeneration of disused sites next to motorways to improve local biodiversity
• Reduced reliance on salt as an anti-icing agent on the A25 bridge by using natural beet juice

Social Achievements

• Launched Linkt Assist, a dedicated team to support customers experiencing social or financial hardship
• Committed to $15M reduction in fees due to fee and enforcement reform
• Established Linkt Assist hardship program
• Invested in community through partnerships and distributed community grants to 42 groups in Australia and 30 in North America
• Facilitated development of parks and community spaces
• Supported driver training partnerships in NSW, Victoria and Queensland
• Improved customer service and digital experience
• Consolidation of all Australian retail brands into one national brand, Linkt
• Refreshed customer-facing tools for North America Express Lanes brand
• Developed a new mobile app to make it easier for customers without accounts to pay for tolls

Governance Achievements

• Governance arrangements complied with ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations (3rd Edition)
• Intends to early adopt the 4th Edition and report against it for the year ending 30 June 2020
• Implemented Health, Safety and Environment Action Plans

Climate Goals & Targets

Environmental Challenges

• Climate change and its impacts
• Increased demand for transport due to population growth and urbanization
• Need to explore long-term technological solutions to manage demand
• Road safety
• Managing risks within supply chain, including human rights
• Maintaining social license to operate
• Cyber security and information protection
• Unfavorable changes in the market or operating conditions
• Failure of technical infrastructure
• Changes in government policies or regulatory interpretations
• Delivering major projects to meet agreed outcomes
• Ensuring the safety and wellbeing of employees and contractors
• Customer and road safety
• Dependency on third parties and critical suppliers

Mitigation Strategies

• Taking climate change threat seriously and committed to reducing environmental impact and preparing assets to tolerate extreme weather events
• Data-led approach to operating motorways to keep traffic flowing
• Proactive management of speed limits to improve safety and travel times
• Implemented Sustainable Procurement Program
• Joined United Nations Global Compact Network Australia’s Modern Slavery Community of Practice
• Joined Social Traders
• Continuous stakeholder listening program
• Cyber security framework, including data protection management and third-party data risk management
• Strategic and emerging risks and mitigations identified and managed as part of the overall Risk Management Framework
• Transurban Asset Management System (TAMS) and associated processes
• Contributions to policy discussions
• Due diligence throughout procurement and tender processes
• Enterprise Risk Management Framework incorporating project risk reviews
• Safety reporting and management systems
• Contractor management and engagement
• Ongoing development and enhancement of the Transurban health safety and environment (HSE) culture
• Australian Road Research Board (ARRB) assessment of the Australian network
• Monash University Accident Research Centre (MUARC) analysis of serious injury crashes
• Supplier and Contractor Management Framework

Supply Chain Management

Responsible Procurement

• Sustainable Procurement Program including a revised Policy, Supplier Code of Practice and Sourcing Toolkit
• Partnership with Social Traders

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, International Integrated Reporting Framework, UN Sustainable Development Goals

Certifications: WORK180 Flex Able Certification (Australia), 2018 CARE (Companies As Responsive Employers) Award (North America)

Third-party Assurance: KPMG (limited assurance over selected non-financial data points)

UN Sustainable Development Goals

• Goal 7
• Goal 9
• Goal 11

The report shows alignment with these goals through various initiatives

Awards & Recognition

• WGEA Employer of Choice for Gender Equality citation for five consecutive years
• 2018 CARE (Companies As Responsive Employers) Award (North America)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Road Safety
• Health and Safety
• Wellbeing and Diversity
• Community Engagement
• Environment
• Governance
• Supply Chain

Environmental Achievements

• Entered into Power Purchase Agreements for QLD and NSW markets – up to 80% future electricity needs to be met from renewable energy sources from 2021/2022
• Two As Built Infrastructure Sustainability ‘Leading’ ratings (highest level possible) for Logan Enhancement Project (QLD) and M4 East (NSW)
• 92% waste diversion on Australian major projects to date
• Cumulative embodied GHG emission savings from major projects: 400,000 tCO2e
• Cumulative materials savings from major projects (concrete, asphalt, aggregate): 890,000 tonnes

Social Achievements

• $4.7M COVID-19 assistance to frontline workers and customers hardest hit financially
• Released Financial Inclusion Action Plan
• First annual US$15M contribution for public transport improvements in Virginia
• Maintained pay equity gap of less than 1%
• Maintained gender balance for executives
• Workplace Gender Equality Agency Employer of Choice
• Equileap Top 20 for gender equality
• Outperformed Road Injury Crash Index target
• Extended NeuRA partnership for a further three years to continue research into road safety and crash injury prevention

Governance Achievements

• All Task Force for Climate-related Financial Disclosures recommendations addressed in FY20
• New science-based greenhouse gas reduction targets – including scope 3 – validated by the Science Based Targets initiative

Climate Goals & Targets

Environmental Challenges

• Unexpected changes to stakeholder expectations, government policies and regulations in relation to climate change creating an unfavourable operating environment, impacting reputation and financial performance
• Increased incidence of severe weather events and average temperature affecting lifecycle planning, disrupting operations, and increasing operating costs
• Macroeconomic/land use changes caused by climate policies, and severe weather events, altering city travel patterns and toll road use impacting traffic models and revenue
• Access to and use of our network are impacted during extreme weather events and in periods of extended rain or heat

Mitigation Strategies

• Work to reduce environmental impact and transition to net zero – focus on operational emissions, switching to renewable energy, and embodied GHG emissions in materials
• Sustainable Procurement program and commitment to reduce embodied emissions in materials
• Monitoring environmental-related media and rhetoric as well as legal cases relating to environmental matters and climate change
• Monitoring sustainability performance metrics
• Continuing to use infrastructure sustainability rating tools, benchmarking project and asset sustainability performance
• Reviewing supply chain heat map to consider longer-term disruption due to climate change
• Continuing to engage with government partners to understand potential future changes to climate change-related regulations
• Delivering transparent and clear climate change disclosures annually
• Continuing existing close monitoring of asset performance, inspections and stress-testing where required
• Implementing a materials strategy – including trialling alternative materials
• Considering resilience and durability in the design of tolling and technology systems
• Use of dual feed-power supply and back-up generators
• Road safety approach – including road safety action plans and performance measurement
• Lifecycle planning processes incorporating emerging risks and mitigations
• Further training and guidelines for climate-risk assessment and management

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainable procurement framework
• Supplier Sustainability Code of Practice
• Addressing key government policies and legislative requirements

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events
• Extreme temperatures
• Impacts on asset lifecycle
• Disruption to operations

Transition Risks

• Changes to stakeholder expectations
• Government policies and regulations
• Impacts on reputation and financial performance
• Changes to infrastructure approval and concession deed requirements
• Increased capital expenditure and operating costs
• Increased risk of litigation associated with emissions

Opportunities

• Reduce Scope 1, 2 and 3 emissions and move towards carbon neutrality
• Showcase leadership in climate-risk management to open new market opportunities

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UN SDGs

Certifications: ISO 45001 (OHS)

Third-party Assurance: KPMG

UN Sustainable Development Goals

• 3
• 5
• 7
• 8
• 9
• 11
• 12
• 13
• 17

The report details how Transurban's initiatives contribute to these goals.

Sustainable Products & Innovation

• Lower-emission materials (crumb rubber asphalt mix and high portland cement replacement mixes)
• LED lighting in tunnels
• ‘DriFlo’ waterless fire deluge system

Awards & Recognition

• Workplace Gender Equality Agency Employer of Choice
• Equileap Top 20 for gender equality

Environmental Metrics

ESG Focus Areas

• Road safety
• Climate change
• Health and safety
• Wellbeing and diversity
• Supply chain
• Financial performance
• Governance

Environmental Achievements

• Commencement of renewable energy supply via Power Purchase Agreements (PPAs) for some NSW assets, including WestConnex.
• Installation of 64kW of solar power at the Network Operations Centre in Brisbane.
• Queensland tolling upgrades reducing annual energy consumption by 625 GJ and GHG emissions by 141 tCO2e per annum.
• Achieved significant reductions in embodied emissions from WestConnex M8 and M4-M5 Link projects through supplementary cementitious material use in concrete mixes with 66,000 and 65,000 tonnes of CO2e emissions avoided respectively.
• 90% of major project waste diverted from landfill.
• 60% of operational waste diverted from landfill.

Social Achievements

• Provided $10.1M in toll relief to frontline workers and customers affected by COVID-19.
• Fully implemented Financial Inclusion Action Plan (FIAP).
• Achieved almost 6% fuel consumption reduction in a Brisbane customer eco-driving trial.
• Maintained gender pay gap of no more than 1%.
• Released Inaugural Modern Slavery Statement.
• Substantially progressed implementation of ‘Innovate’ Reconciliation Action Plan (RAP).

Governance Achievements

• Issued a Human Rights Policy.
• Net zero by 2050 commitment.
• Achieved CDP A- leadership rating and recognised as a Supplier Engagement Leader.
• Completed high-level physical climate risk asset report cards for all assets.
• Developed a physical climate risk adaptation management plan for the Hills M2 (NSW).

Climate Goals & Targets

Environmental Challenges

• Unexpected changes to stakeholder expectations, government policies and regulations in relation to climate change.
• Increased incidence of severe weather events and average temperature affecting lifecycle planning, disrupting operations, and increasing operating costs.
• Macroeconomic/land use changes caused by climate policies and severe weather events altering city travel patterns and toll road use.
• Access to and use of the network impacted during extreme weather events and in periods of extended rain or heat.

Mitigation Strategies

• Transition to net zero emissions by 2050.
• Ongoing monitoring, reporting and review of climate-related risks.
• Progressing sustainable procurement program and engagement with suppliers.
• Continuous monitoring of asset performance, implementation of preventative and regular maintenance schedules and ongoing asset inspections.
• Developing asset-specific adaptation plans.
• Developing a business-wide climate risk adaptation guideline.
• Exploring opportunities for smart monitoring and advanced systems.

Supply Chain Management

Responsible Procurement

• Supplier Sustainability Code of Practice
• Social procurement initiatives

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events
• Increased average temperatures
• Changes to city travel patterns
• Impacts on asset lifecycle

Transition Risks

• Changes to stakeholder expectations
• Government policies and regulations
• Carbon pricing
• Resource constraints

Opportunities

• Showcase leadership in climate risk management
• Reduce Scope 1, 2, and 3 GHG emissions
• Transition to net zero emissions

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UN SDGs

Third-party Assurance: KPMG

UN Sustainable Development Goals

• 3
• 5
• 7
• 8
• 9
• 11
• 12
• 13
• 17

Transurban's Sustainability Strategy is aligned with the UN SDGs most relevant to the business and stakeholders.

Awards & Recognition

• Workplace Gender Equality Agency Employer of Choice for Gender Equality
• Equileap gender equality citation – position 12 globally
• CDP A- leadership rating and recognised as a Supplier Engagement Leader

Environmental Metrics

ESG Focus Areas

• Climate change
• Road safety
• Customer privacy
• Community engagement
• Workforce diversity and inclusion
• Governance
• Sustainable procurement

Environmental Achievements

• Achieved a 56% absolute Scope 1 and 2 GHG emissions reduction in FY23 relative to FY19 baseline
• Reached 2030 SBTi 50% GHG Scope 1 and 2 emissions reduction target 7 years early
• 80% of electricity from renewable sources in FY23
• 100% renewable electricity in North American operations in FY23

Social Achievements

• Expanded customer rewards program
• Supported customers experiencing hardship through Linkt Assist and First Time Forgiveness programs
• Invested $3.8M towards social investment
• More than 8,500 community interactions
• Planted more than 128,800 koala habitat trees
• Contractor RIFR of 2.77 (below target of 4.0)
• Zero recordable employee injuries

Governance Achievements

• Chair and CEO transition completed or in progress
• Maintained MSCI AAA ESG rating for past five years
• Achieved highest-level Customer Service Institute of Australia (CSIA) Complaint Handling Framework Certification

Climate Goals & Targets

Environmental Challenges

• Higher inflation and interest rates
• Supply chain disruptions
• Labor shortages
• Cybersecurity threats
• Climate change impacts (extreme weather events)
• Cost of living pressures impacting customers

Mitigation Strategies

• CPI-linked toll escalations
• High rate of hedging (96% of borrowings)
• Active balance sheet management
• Sustainable procurement program
• Investment in resilient infrastructure
• Linkt Assist and Linkt Assist 360 programs
• Scam education campaigns
• Climate Change Action Plans (CCAPs)

Supply Chain Management

Supplier Audits: 100 suppliers engaged in CDP Supply Chain reporting

Responsible Procurement

• Sustainable Procurement Program
• Supplier Sustainability Code of Practice
• Social procurement initiatives

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events
• Sea level rise
• Heatwaves
• Flooding

Transition Risks

• Changes in stakeholder expectations
• Government policies and regulations
• Market shifts

Opportunities

• Leadership in climate risk management
• GHG emission reduction

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UN SDGs

Third-party Assurance: KPMG (limited assurance on sustainability data)

UN Sustainable Development Goals

• Goal 7
• Goal 8
• Goal 9
• Goal 11
• Goal 12
• Goal 13
• Goal 17

The report details how Transurban's initiatives contribute to these goals.

Awards & Recognition

• CDP Climate Change A rating (2022)
• Dow Jones Sustainability Index Top 10% ranking
• Equileap top 20 globally and top 10 in Australia for gender equality
• FTSE4Good Member
• Global Real Estate Sustainability Benchmark for Infrastructure second-rated Global publicly listed company
• Support the Goals 5-star-rated company for action on the UN SDGs
• Workplace Gender Equality Agency Employer of Choice Citation

Environmental Metrics

ESG Focus Areas

• Climate change
• Customer emissions
• Road safety
• Customer welfare
• Nature, biodiversity and ecological impact
• Sustainable driving and mobility
• Cybersecurity and data privacy
• Community investment and partnerships
• Sustainable supply chain
• First Nations engagement

Environmental Achievements

• 70% reduction in absolute scope 1 and 2 GHG emissions compared to FY19 baseline
• Increased renewable electricity use to 87% in FY24
• 92% asset landfill diversion rate
• Opened a water treatment plant in Sydney

Social Achievements

• Launched Fuel Up Your Savings program, saving customers over $600,000 on fuel
• Expanded Linkt Rewards program to over one million members
• Supported over 18,000 customers through Linkt Assist
• #1 global and Australian company on gender equality performance in Equileap’s annual ranking program (2024)
• Achieved gender balance across the workforce
• Invested $3.6M+ towards community investment

Governance Achievements

• Conducted a double materiality assessment to identify material ESG topics
• Established an ASRS Steering Committee to oversee ASRS reporting readiness
• Developed asset-specific Climate Change Adaptation Plans (CCAPs)

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Increased road deaths in Australia and North America
• Congestion on surface roads surrounding Rozelle Interchange
• Rising cost of living impacting customer confidence
• Cybersecurity threats
• Climate change impacts on infrastructure and operations
• EV affordability
• NSW toll reform

Mitigation Strategies

• Developed alternative sourcing strategies
• Collaborated with government and industry leaders to reduce road trauma
• Provided WestConnex travel time data and customer communications
• Implemented cost control measures
• Implemented a Cyber Security Framework
• Developed asset-specific Climate Change Adaptation Plans (CCAPs)
• Launched EVs for Everyone initiative
• Engaged with NSW Government on toll reform solutions

Supply Chain Management

Supplier Audits: 108 major suppliers engaged in CDP reporting

Responsible Procurement

• Supplier Sustainability Code of Practice
• Social procurement program
• Net 14 Payment Terms program (US)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding
• Heatwaves
• Bushfires
• Sea-level rise
• Droughts

Transition Risks

• Changes in stakeholder expectations
• Government policies and regulations
• Access to capital
• Changes in travel patterns

Opportunities

• New market opportunities
• Innovation opportunities
• Reduced operating expenditures

Reporting Standards

Frameworks Used: GRI, TCFD, SASB, UN SDGs, ISSB S1

Third-party Assurance: KPMG (limited assurance on environmental data; reasonable assurance on scope 1 and 2 GHG emissions)

Environmental Metrics

ESG Focus Areas

• Good Health and Wellbeing
• Gender Equality
• Affordable and Clean Energy
• Decent Work and Economic Growth
• Sustainable Cities and Communities
• Responsible Consumption and Production
• Climate Action
• Partnerships for the Goals

Environmental Achievements

• Materials emission reductions for Logan Enhancement Project—expected reduction of 17,000 tCO2e emissions compared to reference design—principally via use of more sustainable asphalt (EME2)
• Trial of more sustainable asphalt pavement underway on M2 in Sydney (Stone Mastic Asphalt)
• Recycled approximately 19,000 tonnes of asphalt from resurfacing works on Gateway Motorway
• Operationalised street sweeping waste diversion program in partnership with Downer—128/154 tonnes (83%) of street sweepings from Sydney motorways was diverted from landfill
• Commenced work with RepurposeIT in Melbourne to divert spoil and sediment ‘waste’ from landfill for beneficial reuse
• Greenhouse gas emission reduction—Scope 1 and 2—120,617 tCO2e; 2% below 2016 baseline

Social Achievements

• Continued to promote the comprehensive Employee Assistance Program delivered through Converge International
• Maintained network of Mental Health First Aiders in Australian operations
• Women in leadership program (internal training)
• Supporting up-and-coming female engineers—especially via FEET (Females Excelling in Engineering and Technology) program
• Launched ‘LinktAssist’—a dedicated team to support Australian customers that are experiencing social or financial hardship
• Committed to the preparation of a Financial Inclusion Action Plan (FIAP)
• Continued working with our state government partners in Australia on toll enforcement processes on behalf of our customers
• Continued the Females Excelling in Engineering and Technology (FEET) student mentoring program
• Continued graduate program
• Continued engagement with universities in each region and entered a new three-year partnership with the University of Queensland’s School of Engineering Icarus program

Governance Achievements

• Policies and procedures are in place regarding diversity and non-discrimination
• Became a member of the Global Compact Network of Australia’s Community of Practice on Modern Slavery
• Partnered with the Infrastructure Sustainability Council of Australia to establish a Modern Slavery Coalition for Road Construction members
• Introduced requirement for each business unit to prepare and implement Health, Safety and Environment Action Plans (HSEAPs)
• Ongoing implementation of sustainable procurement framework including Procurement Policy, Supplier Sustainability Code of Practice and sourcing kit
• Addressing key government policies and legislative requirements such as the Australian Commonwealth Modern Slavery Act and the Virginia Small Business and Supplier Diversity Initiative
• Worked with Outlook Victoria and Ability Works (certified social enterprises) to grow their capability and scale

Climate Goals & Targets

Environmental Challenges

• Reducing road user fatalities (target - zero)
• Achieving gender equity at all levels across Transurban
• Reducing annual emissions by 2030 compared to 2016 levels
• Reducing adverse per capita environmental impact of cities
• Achieving sustainable management and efficient use of natural resources
• Reducing waste generation
• Strengthening resilience and adaptive capacity to climate-related hazards and natural disasters

Mitigation Strategies

• Continued to apply Road Safety Strategy
• Continued road design and optimization to reduce safety risks
• Worked together with industry to develop and introduce new truck safety standards
• Continued implementation of Road Safety Action Plans
• Positioning incident response vehicles using safety ‘hot spot’ data
• Women in leadership program
• FEET program
• Climate Change Strategy
• Development of Circular Materials Strategy
• Business resilience plans in place for all regions

Supply Chain Management

Responsible Procurement

• Sustainable procurement framework including Procurement Policy, Supplier Sustainability Code of Practice and sourcing kit

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI (Core)

UN Sustainable Development Goals

• SDG 3
• SDG 5
• SDG 7
• SDG 8
• SDG 9
• SDG 11
• SDG 12
• SDG 13
• SDG 17

Transurban's initiatives contribute to these goals through various programs and strategies detailed in the report.

Awards & Recognition

• WGEA Employer of Choice for Gender Equality citation (2019)
• Equileap Top 200 for gender equality citation (2018)
• WORK180 Flex Able certified (Australia)
• Companies As Responsive Employers (CARE) Award (North America)