Climate change risk
Climate change has the potential to affect our business through physical, financial and regulatory changes.
Transurban’s Corporate Governance Statement recognises climate change as a risk to our business.
Transurban’s Enterprise Risk Management Framework covers corporate-wide risks and risks associated with both the operation of individual road assets and our project delivery activities. Climate change risk categories and procedures ensure these risks are addressed from physical, environmental and regulatory perspectives.
Physical impacts are mitigated through the design, construction and maintenance of climate-resilient assets. During the design phase of our major projects, we work with our construction partners to assess climate change risks. Detailed climate change risk assessments for major projects ensure the asset design, long-term operations and maintenance plans are sufficient to operate under future conditions.
In addition to the identification of climate change related risks, the business also undertakes specific studies and activities to assess the implications of climate change, these include:
- Assessing the foundations, pavement, drainage and other infrastructure design specifications to ensure they can accommodate extreme weather events, both historical and projected for the future
- Identifying the expected lifetime and maintenance cycles of asset components including asphalt pavement, concrete, painted surfaces and assessing how these may be affected by increased temperatures, heatwaves, rainfall and storm surges
- Considering operational risks such as equipment reliability, employee and customer welfare, and the potential impact of changing environmental conditions on travel patterns
- Identifying indirect risks in the supply chain and broader region, such as the possibility of power supply interruptions in the event of more frequent heatwaves
With controls for these risks in place, we expect climate change risks are unlikely to materially affect the operation of Transurban assets or increase road maintenance costs within the current concession deed periods.