Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Reconciliation
• Health & Safety
• People & Culture

Environmental Achievements

• Maintaining accredited Environmental Management System
• Rolling out Environmental Sustainability Procedures and supporting tools and training materials
• Continuing transition to a ‘paper-light office’
• Pursuing environment initiatives relating to carbon reduction, waste management, water recycling and conservation
• Land rehabilitation and native vegetation planting on projects
• Mordialloc Freeway Project achievements: 10 kilometers of 75% recycled plastic noise walls, Over 270,000 tonnes of pavement material incorporating recycled content, 30 tonnes of 100% recycled plastic concrete reinforcing mesh, 4.6 kilometers of 100% recycled plastic stormwater drainage pipe

Social Achievements

• Continued work towards achieving objectives in Reflect Reconciliation Action Plan
• Building cultural awareness and understanding across the business
• Developing strong relationships with communities
• Significantly improved diversity of supply chain (Mordialloc Freeway Project: over $4.3 million Aboriginal Business Spend and over 45,000 hours of employment for Aboriginal workers; Albany Ring Road project: approximately 6% of total contract spend with Aboriginal businesses and approximately 10% of total worked hours by Aboriginal persons)
• Introducing paid parental leave (up to 14 weeks)
• Renewed focus on flexible work arrangements
• Creating a pathway for Aboriginal labour hire employees to move into Civil Construction Apprenticeships
• Working with universities to provide engineering opportunities for vocation students

Governance Achievements

• Successful regaining of third party accreditation to ISO 45001
• Maintaining accreditation with the Office of the Federal Safety Commissioner (OFSC)

Climate Goals & Targets

Environmental Challenges

• Escalation costs for materials and energy
• Labor shortages
• Significant COVID-19 restrictions and impacts
• Effects of some legacy disputes
• Potential funding issues
• Current disputes (Sunraysia Solar Farm, Schneider)
• Debt facilities
• Accreditations
• Effective management of contracts and the risk of dispute
• External factors impeding operational activities
• Safety
• Labor costs and availability
• Tender processes and new contracts
• Homeground occupancy
• Environmental regulation
• Inflation
• Climate risk (regulatory changes, market shifts, extreme weather)
• Coronavirus (COVID-19)
• Economic conditions
• Lump sum contracts
• Market conditions
• Litigation risk
• Reliance on key personnel

Mitigation Strategies

• Actively renegotiated contracts to align with current market conditions
• Adopted a highly selective approach to contract tendering
• Addressed several key legacy issues
• Bolstered executive team
• Implemented critical risk management program
• Simplified management systems
• Improved tools for capturing and reporting on health, safety and environment metrics
• Implemented new health and safety data platform
• Implemented various mitigation strategies to reduce the impact of government mandated restrictions
• Implemented innovative solutions to meet COVID-19 contact tracing requirements
• Conducted a Psychosocial Workplace Risk Survey
• Provided employee assistance program (EAP)

Supply Chain Management

Responsible Procurement

• Improved diversity of supply chain through engagement with Aboriginal and Torres Strait Islander businesses

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity of weather patterns and incidence of extreme weather events
• Longer-term physical risks such as shifting climate patterns

Transition Risks

• Emergence of new or expanded regulations associated with transitioning to a lower-carbon economy
• Market changes related to climate change mitigation
• Changes to local or international compliance regulations
• Specific taxation or penalties for carbon emissions or environmental damage

Awards & Recognition

• 2022 Contractor Excellence Award (Infrastructure Partnerships Australia)
• Excellence in Environmental Outcomes Award 2022 (Infrastructure Sustainability Council)

Environmental Metrics

ESG Focus Areas

• Environmental Responsibility
• Aboriginal and Torres Strait Islander Participation and Engagement
• Health and Safety
• Workforce Diversity and Inclusion

Environmental Achievements

• Attained recertification to ISO 14001.
• Strengthened in-house Environmental and Sustainability capabilities.
• Simplified Environment Management System.
• Progress towards a ‘paper-light office’.
• Substantial advancements in carbon reduction, waste management, water recycling and land conservation.
• Structures Rehabilitation Project earned a “Leading” rating under the Infrastructure Sustainability Council’s (ISC) IS Rating Scheme (version 1.2) and a “Sustainability Award”.

Social Achievements

• Strong safety performance with zero lost time injuries (LTIFR of 0.0 and TRIFR of 2.6).
• Female workforce reaching a total of 24%.
• Updated paid parental leave scheme to include up to 18 weeks of paid primary carers leave.
• Launched a Graduate Development Program.
• Participating in the “Wellness in Infrastructure Mentoring Program”.
• Implementation of Reflect Reconciliation Action Plan (2020) and Innovate Reconciliation Action Plan (2022).

Governance Achievements

• Established a new high calibre Executive Leadership Team.
• Methodically dealt with key residual legacy issues (Sunraysia Solar Farm disputes, Amrun mine project dispute, Munjina dispute).

Climate Goals & Targets

Environmental Challenges

• Building and maintaining balance sheet strength.
• Delivering profitability within the current and future suite of projects.
• Selecting projects that can deliver acceptable returns for commensurate risk.
• Effective management of contracts and the risk of dispute.
• External factors that may impede operational activities (weather, mechanical difficulties, material shortages, industrial disputes, IT failures).
• Safety incidents.
• Labour costs and availability.
• Tender processes and new contracts.
• Homeground occupancy.
• Environmental regulation.
• Inflation.
• Accreditations.
• Climate risk (regulatory changes, market shifts, extreme weather).
• Economic conditions.
• Lump sum contracts.
• Market conditions.
• Litigation risk.
• Reliance on key personnel.
• Debt facilities.

Mitigation Strategies

• Much more selective approach to tendering new work, with a focus on appropriate risk allocation, higher profit margins, and work within core capabilities and regions, with financially strong clients.
• Strengthened operational base and capital raise via Redeemable Convertible Preference Shares (RCPS).
• Comprehensive Health and Safety Management System (ISO 45001:2018, OFSC accreditation).
• Strategies to attract, develop and retain a highly skilled and experienced workforce.
• Proactive risk management, streamlined management frameworks, and optimised tools for health and safety data capture and analysis.

Supply Chain Management

Responsible Procurement

• Social procurement on Barwon Heads Roads Upgrade Project

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity of weather patterns and incidence of extreme weather events; longer-term physical risks such as shifting climate patterns

Transition Risks

• New or expanded regulations associated with the transitioning to a lower-carbon economy; market changes related to climate change mitigation; changes to local or international compliance regulations; taxation or penalties for carbon emissions or environmental damage.

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ISO 14001, ISO 45001

Certifications: ISO 14001, ISO 45001, OFSC

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Sustainability Award (2022 Decmil Excellence Award campaign)