Ampol Limited
GovernanceGovernance
Governance body oversight and management's role
1.1 Ampol Board oversight of climate-related risks and opportunities
The Ampol Board (Board), including its committees, considers, reviews and monitors climate-related risks and opportunities, including trade-offs, as part of its decision-making processes and investment considerations. The Board approves and oversees the implementation of Ampol's overall purpose and strategic direction, including strategies pertaining to climate-related risks and opportunities, through Board-hosted workshops held twice a year. The Board also approves Ampol's five-year business plan and annual budget, which includes the provision of significant capital expenditure to address climate-related risks and opportunities.
1.2 Governance overview
Ampol Board: The Board is responsible for the oversight of key corporate governance policies and risk management. It sets the risk appetite for climate-related risks and opportunities, approves key policies for publication on the Ampol website, and key sustainability initiatives and disclosures.
Committees: Safety & Sustainability Committee (S&SC), Audit Committee, People & Culture Committee, Nomination Committee.
Management roles:
- Managing Director and CEO (MD & CEO): Responsible for climate-related matters at highest management level.
- Ampol Leadership Team (ALT): Responsible for monitoring operational mechanisms, performance metrics, key systems and internal controls, setting targets, and informing the Board and its committees.
- Chief Financial Officer (CFO): Responsible for incorporating climate-related matters into financial practices, financial reporting (including climate-related financial disclosures) and disclosure activities for alignment to financial reporting, as well as for the alignment of activities across the support functions.
Management functions:
- Investment Committee: Oversees the effective allocation of capital to support Ampol's overarching objective of maximising long-term shareholder value and returns.
- Decarbonisation Project Review Board (PRB): Provides oversight on Ampol's decarbonisation programs, including capital allocation, emissions forecasting and delivery of emissions reductions against public targets. The Decarbonisation PRB meets quarterly to monitor decarbonisation initiatives and overall progress, and to forecast and monitor emissions reductions necessary for regulatory and compliance requirements, including the Safeguard Mechanism.
Support functions: General Manager, Investor Relations and Sustainability (overseeing the Group sustainability function which sets sustainability strategy, policies and targets including climate-related ones, and leads preparation of external compliance and voluntary reporting and climate-related internal progress reports for review by the ALT, Decarbonisation PRB and Board committees); General Manager, Group Risk and Audit (overseeing Group risk management and internal audit frameworks); Strategy (integrating climate considerations into business strategy and growth initiatives, conducting scenario analysis); Finance (overseeing financial reporting and business planning and budgeting for the Group, including as it pertains to climate-related matters).
Oversight of the Ampol Risk Management Framework is the responsibility of the Board, with each standing committee delegated oversight of specific financial and/or non-financial risks. Ampol has developed decarbonisation management plans which outline its approach and initiatives to meet its emissions reduction targets.
1.3 Board Committees
Four standing committees support the Board in fulfilling its responsibility of overseeing climate-related matters, each with a distinct role and mandate documented in a Committee Charter. Each standing committee is delegated oversight of specific financial and/or non-financial risks and coordinates the identification and integration of climate-related risks within their remit into the ARMF. Directors receive all committee papers and are invited to attend committee meetings of which they are not a standing member. At each Board meeting, the Chair of each committee gives an update on significant discussion, decisions and recommendations from the relevant committee meeting.
1.3.1 Safety and Sustainability Committee (S&SC)
Meets four times a year and supports the Board by: conducting a risk review with management to assess whether climate-related risks are within Board-approved risk appetite; reviewing effectiveness of processes for assessing trends/changes, identifying new/emerging risks, implementing internal controls, and monitoring compliance; reviewing Ampol's Annual Report as it pertains to climate-related disclosures; overseeing sustainability approach effectiveness; and monitoring progress against climate-related targets. The S&SC reviews and recommends climate-related metrics and targets, developed through the Sustainability function, to the Board for approval. Once approved, targets are reviewed by the S&SC quarterly against reports produced by the Sustainability and Risk functions. The approved targets are integrated into remuneration targets, reinforcing accountability and alignment with strategic objectives.
1.3.2 Audit Committee (AC)
Meets quarterly and is responsible for oversight of Ampol's assurance framework applying to climate-related reporting, including objectivity/independence of statutory auditor and assurance provider. Reviews corporate reporting, financial risk management and internal control processes as they relate to sustainability and climate reporting.
1.3.3 People and Culture Committee (P&CC)
Meets quarterly and, in consultation with the S&SC, assists the Board in relation to how climate-related measures should be represented in the Ampol scorecard and the associated determination of annual short-term incentive outcomes for Senior Executives. The percentage of Senior Executives' remuneration recognised in 2025 linked to the climate-related performance measure can be found in the Remuneration Report.
1.3.4 Nomination Committee
Assists the Board with overseeing Board succession planning and determining that the Board collectively has the necessary skills and expertise to understand climate-related matters and associated risks and opportunities.
1.4 Management's role
The Board has authorised the MD & CEO to oversee Ampol's day-to-day business and operations within delegations of authority approved by the Board. The ALT, led by the MD & CEO, is responsible for development, review and endorsement of Group strategies, plans and priority projects, including: approving the annual sustainability plan and ensuring alignment with strategic priorities/climate objectives, monitoring the plan and reporting quarterly to the S≻ integrating climate scenario analysis, including long-term risks and opportunities, into strategic planning; monitoring external climate developments and supporting climate-related disclosures; ensuring climate-related targets are set, progress is monitored, and relevant performance metrics are incorporated into remuneration targets; and monitoring operational mechanisms and internal controls to manage climate-related risks and opportunities.
1.5 Skills and competencies
Each year, Directors self-assess their individual skills and experience, and the ratings inform the Board skills matrix, overseen by the Nomination Committee. The Board skills matrix identifies skills and experience the Board collectively has to address existing and emerging governance matters, including sustainability and climate change initiatives, risk management and reporting. Periodically the S&SC meeting includes an education item to raise understanding of emerging practices in managing climate-related risks/opportunities and AASB S2 reporting requirements. The May 2025 S&SC meeting included an education session on assessing climate resilience and the November 2025 meeting included a session on AASB S2 and directors' duties in the context of the climate reporting regime.
StrategyStrategy
Climate-related risks and opportunities
Time horizons (3.3)
The impact of climate change is considered over three time horizons aligned to the Group's strategic and business planning cycles and anticipated progress of sustainability initiatives:
- Short term: 0–1 years – Aligns with current budget cycle and provides a higher level of granularity.
- Medium term: >1–5 years – Aligns with Ampol's business planning cycle and interim climate targets.
- Long term: >5 years – end-2050 – Aligns with timeframe of achievement of the Paris Agreement, Australia's net zero target under the Climate Change Act 2022 (Cth) and those considered within Ampol's Integrated Assessment Model (IAM).
Information base used to identify risks and opportunities – Integrated Assessment Model (IAM) (3.4)
Ampol's IAM is derived from internationally recognised climate and energy transition pathways developed by the IPCC and the IEA, adapted to reflect regional policy settings, market conditions, technology deployment and energy system characteristics specific to Australia and New Zealand out to 2050. The IAM is used as an analytical input to assess climate-related transition risks for Ampol's traditional fuels business and climate-related opportunities associated with economy-wide decarbonisation, including EV charging and lower carbon liquid fuels. Outputs of the IAM inform Ampol's House View for transport fuel demand, strategy development, strategic decision making, capital management and allocation, portfolio optimisation, and business resilience testing. In 2025, Ampol updated its IAM to incorporate the New Zealand energy system, updates to the policy landscape (e.g. Australia's New Vehicle Efficiency Standard), ongoing engagement with governments, and insights from Ampol's market signpost monitoring process.
House View of Transport Energy (3.5)
Given uncertainty of pathways and policy settings, Ampol's strategy and business planning is based on its House View, developed internally using transport energy sector-specific analysis and insight into Australian and New Zealand vehicle fleet composition, technology trends, market signposts and vehicle sales, compared to the IAM multi-sectoral modelling. The House View is broadly consistent with the IAM >2.5°C scenarios for Australia and New Zealand and considers the United Nations Gap Report 2025 (forecasting 2.3°C–2.5°C warming if NDCs are implemented and 2.8°C if no changes are made to current policies) and the assumption that global GHG emissions and physical impacts will be consistent with the IPCC's SSP2–4.5.
3.7 Climate-related risks and opportunities
Ampol has assessed whether identified climate-related risks and opportunities would reasonably be expected to affect its business prospects through application of an internal financial materiality criteria aligned to the ARMF.
Risk 1: Reduced demand for traditional fuel products due to shifts in economics, policy or customer preferences
Risk category: Transition risk. Nature of risk: Ampol is unable to respond to declining demand for traditional fuels caused by engine efficiency, electrification or fuel switching to lower carbon-based alternatives.
Risk 2: Climate policy and regulatory uncertainty impact Ampol's strategy and/or operations
Risk category: Transition risk. Nature of risk: Climate policy and regulation uncertainty could cause poorly timed investment. Domestic policy may be driven by international context, global commitments and bilateral or collective pressure, as well as domestic interests and societal values.
Opportunity 1: Development of electric vehicle charging solutions
Opportunity category: Transition opportunity. Nature of the opportunity: As customers transition to EVs, Ampol is providing on-the-go charging solutions in the public domain and charging infrastructure and service solutions in the private domain that are differentiated by rate of charging, reliability and location. Such solutions provide the opportunity to grow lower carbon earnings streams and support adjacent earnings streams from convenience retail and potentially from bundling charging and fuel offers.
Opportunity 2: Provision of co-processed and lower carbon liquid fuels to meet customer demand and support decarbonisation of hard-to-abate transport emissions
Opportunity category: Transition opportunity. Nature of the opportunity: Ampol is investigating lower carbon energy solutions for customers in hard-to-abate sectors, including exploring the role that lower carbon liquid fuels can play in its product offering as an import and/or as part of the manufacturing supply chain. Co-processed fuels combine traditional refining with small quantities of renewable-based feedstocks to achieve a blended product with lower carbon intensity than a traditional hydrocarbon fuel.
(Time horizon graphics for each risk/opportunity category are presented in the report but the specific horizon markings within the graphics are not reproducible in text form.)
Business model and value chain
Risk 1: Reduced demand for traditional fuel products
Value chain impacts: Operations related to the sourcing, shipping, manufacturing, distribution and sales of traditional fuels are exposed to this risk, with assets concentrated in Australia and New Zealand.
Risk 2: Climate policy and regulatory uncertainty
Value chain impacts: Operations related to the manufacturing, distribution and sale of traditional fuels as well as EV charging operations and potential lower carbon liquid fuel manufacturing are exposed to this risk, with assets concentrated in Australia and New Zealand.
Opportunity 1: Development of electric vehicle charging solutions
Value chain impacts: Concentrated in Ampol's EV charging offerings to retail customers and B2B businesses across Australia and New Zealand.
Opportunity 2: Provision of co-processed and lower carbon liquid fuels
Value chain impacts: Concentrated in Ampol's refining operations in Australia, and fuel trading and wholesale value chain across Australia and New Zealand.
Ampol's Trading and Shipping business, network of storage assets, Lytton refinery, and its retail/distribution network (with owned freehold on 167 sites and controlling interest in 285 premium retail forecourt sites, plus numerous long-dated leases across Australia and New Zealand) represent key concentrations where climate-related risks and opportunities are relevant, given they underpin the sourcing, shipping, manufacturing, distribution and sale of both traditional fuels and emerging lower carbon products.
Strategy and decision-making
3.1 Strategy overview
Ampol's purpose is "powering better journeys, today and tomorrow", supported by its strategy to maintain and build strength in its core business while developing a platform to grow and evolve as customers navigate the energy transition. Ampol has continued to make progress across three pillars of its corporate strategy: (1) enhance the foundations of its integrated value chain and market position in transport fuels with a focus on maximising the value of Lytton and delivery of productivity improvements; (2) expand from the rejuvenated fuels platform by growing and segmenting its convenience retail offer, including the proposed acquisition of EG Australia (subject to ACCC approval) and rollout of U-GO and premium store formats; and (3) evolve the energy offer for customers by building foundations for the transport energy transition, focusing on EV charging and exploring lower carbon liquid fuels importation/domestic production.
Ampol uses 'signposts' to monitor the pace of the transition and calibrate strategy and capital allocation proactively. In 2025, Ampol's market signposts suggested the pace of transition to lower carbon liquid fuels has been slower than previously expected and is expected to be for the foreseeable future. In response, Ampol adapted its corporate strategy to: continue focusing on out-of-home EV charging and lower carbon liquid fuels where it believes it can deliver value; exit retail electricity and divest corresponding assets in Australia and New Zealand; announce the proposed acquisition of EG Australia (subject to ACCC approval) to provide a larger platform for EV charging network and the U-GO offering; and adopt a "wait and watch" stance on hydrogen given uncertain commercial viability as a transport fuel at scale in the medium term.
3.2 Climate transition planning
Released in 2021, the Future Energy and Decarbonisation Strategies outlined how Ampol planned to transition its existing assets, operations and business model to achieve net zero for its operations and build a climate-resilient business. Ampol's climate transition planning is integrated into its corporate strategy focusing on:
- decarbonising Ampol's operations by addressing emissions associated with Scope 1 and 2 by setting an ambition to achieve net zero operational emissions (Scope 1 and 2) on an absolute basis across its Australian operations by 2040, supported by operational emissions reduction targets for 2025 and 2030;
- responding to climate-related risks and opportunities by leveraging core assets/capabilities to establish positions in new energy products and services; and
- contributing to the transition through industry collaboration, policy consultation and investment in scaling capabilities for future transport energy solutions.
These climate considerations are embedded into day-to-day operations through the business planning cycle, where business units plan initiatives to achieve business unit climate-related targets, measured via the performance scorecard and overseen by the Decarbonisation PRB. Business units provide resources to perform, monitor and report internally on decarbonisation initiatives. Pursuit of climate-related opportunities is predominately resourced through Energy Solutions operations across Australia and New Zealand, with a separate budget allocated for Energy Solutions operations and capital expenditure.
Enhance the core business – Decarbonise Ampol's operations
- Ampol has defined a non-linear pathway to meeting its voluntary 2040 net zero ambition, including energy efficiency and upgrade projects, behind the meter solar panels, network rationalisation, renewable electricity procurement and grid decarbonisation. The pathway assumes Lytton will no longer operate as a traditional refinery by 2040, reducing Scope 1 and 2 emissions by approximately 800,000 tCO2e against the base year.
- Ampol's operational emissions reduction hierarchy prioritises avoidance, reduction and replacement (in that order), assessed on a least cost abatement basis, over other decarbonisation approaches including offsets such as ACCUs.
- Ampol prioritises physical abatement opportunities at Lytton refinery based on the most economically efficient outcome; Ampol was required to surrender 47,589 ACCUs for the 2024-25 reporting period to ensure compliance with the baseline decline rate (as modified by any TEBA facility determination).
Expand from the rejuvenated fuels platform – Respond to Ampol's climate-related risks and opportunities
- Convenience Retail segmentation strategy, including rollout of value-oriented unstaffed offer, U-GO; and
- expanded product and convenience offerings to support EV customers due to increased dwell times at retail sites.
Evolve the energy offer for customers – Respond to Ampol's climate-related risks and opportunities
- Ampol plans to continue growing out-of-home EV charging networks across the retail network and complementary destinations through collaborations with third parties, expanding its B2B e-mobility proposition including extension of Ampol Card to include EV charging in Australia, launch of Z Energy new business charging card and online portal, and conducting pilots for business customers transitioning to lower carbon transport solutions.
Evolve the energy offer for customers – Contributing to the energy transition
- exploring lower carbon liquid fuels including a potential production facility at Lytton refinery (Brisbane Renewable Fuels project, BRF), dependent on Australian Government policy settings;
- evaluating a lower carbon liquid fuels co-processing facility at Lytton;
- working with industry peers, investors and customers to develop the import supply chain for early adoption of lower carbon liquid fuels; and
- participating in the Australian and New Zealand Climate Leaders Coalitions on reducing emissions from heavy haul transport and building domestic SAF demand.
Key assumptions and dependencies
Key assumptions include technological advancements and increased renewable energy in the Australian grid, underpinned by government policy supporting grid decarbonisation to meet the NDC submitted under the Paris Agreement. Dependencies include: strong collaboration with customers and industry peers to develop lower carbon solutions matching customer needs; participation in industry associations/climate coalitions for technical collaboration and policy advocacy; and development of domestic climate policy supportive of investment in decarbonisation activities and aligned with international climate policy.
3.2.1 Operational decarbonisation pathway to 2040
The diagram sets out Ampol's current operational decarbonisation pathway to 2040, including forward-looking information subject to uncertainties and dependencies, showing categories of emissions reduction projects/programs (2024 baseline excl. Lytton refinery, U-GO conversions, energy efficiency projects, renewable electricity/PPAs, grid decarbonisation, carbon credits) and Ampol's current expectations of emissions reductions these will deliver in total out to 2040.
Mitigation and adaptation efforts – Risk 1 (Reduced demand for traditional fuel products)
Ampol is committed to ensuring long-term resilience and meeting customer needs now and in future, balancing near-term customer service with investment in the future to enable transition to lower carbon products. Ampol's strategy is designed to be adaptive to climate policy, regulatory change and market signposts; the Board reviews strategic signposts twice a year and management reviews them quarterly. During 2025 Ampol unveiled its segmentation strategy for retail businesses, including U-GO, an unstaffed offer expected to be resilient as fuel volume declines accelerate due to lower cost to operate. The segmentation strategy enables the Ampol Foodary network to include EV charging as demand evolves. Ampol is diversifying earnings streams via EV chargers, lower carbon liquid fuels supply chain development, and non-fuel convenience retail sales, with 494 public DC charging bays and 338 workplace chargers deployed cumulatively to end of 2025. For heavy, long haul and aviation transport, Ampol is undertaking pilots exploring RD and SAF supplied through its import supply chain, exploring co-processing renewable feedstocks at Lytton to produce a blend of up to 5% RD, and investigating the BRF project (dependent on suitable long-term policy settings, with active dialogue with Government). Ampol has several levers to manage its portfolio as volumes decline including network and asset rationalisation, productivity enhancements, network segmentation, and margin and capital management, and in the medium to long term may participate in industry consolidation and infrastructure sharing.
Mitigation and adaptation, transition planning efforts – Risk 2 (Climate policy and regulatory uncertainty)
Ampol actively engages with governments and regulatory bodies to advocate for balanced policy outcomes supporting secure, reliable and affordable transport energy during the energy transitions, including engagement on policy/regulatory frameworks to support a lower carbon liquid fuels manufacturing industry in Australia. Ampol maintains a market presence in direct and secondary carbon markets to ensure access to units for Z Energy's NZ ETS surrender obligations. Ampol's strategy and capital allocation is designed to be adaptive to climate policy, regulatory and market signposts; the Board reviews strategic signposts and climate-related policy developments are reviewed as part of Decarbonisation PRB governance arrangements.
Strategic response – Opportunity 1 (EV charging)
Ampol's Convenience Retail network enables a premium public EV charging experience with differentiated amenities, and the retail segmentation strategy caters for EV charging customers with longer dwell times. Ampol has extended its EV charging network to third party sites through strategic alliances including with Stockland and Mirvac. Ampol intends to continue rollout of on-the-go charging across its retail network and third-party sites with investment in deployment to keep pace with anticipated demand based on regulatory settings and market signposts. Ampol's business charging offer is supported by its public network, integration with back-to-base charging, and a trial card offer encompassing EV charging and fuel; Ampol will continue to work with business customers to support fleet transition.
Strategic response – Opportunity 2 (Co-processed and lower carbon liquid fuels)
A key initiative Ampol is exploring is production of lower carbon liquid fuels at Lytton refinery, and in the medium term, co-processing of renewable feedstock alongside crude oil derived products at Lytton. A combination of Ampol's existing infrastructure and capabilities (e.g. Lytton) and broader distribution network with established channels to market and customer relationships can play a pivotal role in creating a national lower carbon liquid fuels ecosystem. To be viable, Ampol believes long-term policy settings supporting uptake of lower carbon liquid fuels will be key, including appropriate recognition of such fuels under formal emissions accounting methodologies.
Progress against previous plans
Ampol has progressed towards its climate-related targets and has updated its 2040 ambition and 2030 interim targets from 2026 (see Section 4 Metrics and targets, and Section 4.8.1 Target setting process and review approach).
Financial position, financial performance and cash flows
Current financial effects
Risk 1: Reduced demand for traditional fuel products
Main items potentially impacted: Financial Performance – Revenue, Operating Expenses, Depreciation; Financial Position – Non-current Assets, Provisions; Cashflows – Operating Cashflows. Ampol experienced no material impacts in 2025 to its business model and value chain or financial performance, financial position or cashflow due to this climate-related risk. Total transport fuel demand in Australia grew by 0.7% in 2025 compared to 2024 (jet fuel demand growth of 7.7%, diesel demand growth of 0.3%, gasoline demand decreased by 2.6%). Transport fuel demand in New Zealand increased by 0.4% for the 12 months to September 2025 compared with the prior corresponding period, as gasoline demand decreased 0.8% but diesel and jet fuel demand grew 1.1% and 0.6% respectively.
Risk 2: Climate policy and regulatory uncertainty
Main items potentially impacted: Financial Performance – Operating Expenses; Financial Position – Non-current Assets, Provisions; Cashflows – Operating Cashflows, Investing Cashflows. Ampol experienced no material impacts in 2025 to its business model and value chain or financial performance, financial position or cashflows. During the reporting period in New Zealand, lower than expected EV uptake following removal of subsidies reduced utilisation of Z Energy's public charging network and led Ampol to slow rollout of new EV chargers compared to 2024.
Opportunity 1: EV charging solutions
Main items potentially impacted: Financial Performance – Revenue, Operating Expenses; Financial Position – Property, Plant and Equipment, Provisions; Cashflows – Operating Cashflows, Investing Cashflows. For 2025, BEVs comprised 8.3% of all light vehicle sales in Australia (2024: 7.4%) and 5.5% in New Zealand (2024: 5.4%). As at 31 December 2025, BEVs comprised approximately 2-3% of the light vehicle fleet in Australia and New Zealand. Ampol has deployed 494 EV charging bays across 148 sites. EV charging revenue was $7.0 million, a 119% increase from 2024. Adjacent revenues from convenience retail have high estimation uncertainty and have not been reported separately. As at 31 December 2025, Ampol has recognised assets of $59.1 million in the Statement of Financial Position related to its public EV charging network. Ampol owns the freehold on 167 sites and retains a controlling interest in 285 premium retail forecourt sites plus numerous others on long-dated leases.
Opportunity 2: Co-processed and lower carbon liquid fuels
Main items potentially impacted: Financial Performance – Revenue, Operating Expenses; Financial Position – Non-current Assets, Provisions; Cashflows – Operating Cashflows, Investing Cashflows. In 2025, Ampol supplied 2.3 million litres of imported lower carbon liquid fuel to customers in Australia and New Zealand, compared with approximately 18 billion litres of traditional fuels. Ampol incurred $9.7 million for costs associated with investigations of a potential co-processing facility and lower carbon liquid fuels manufacturing facility at Lytton refinery. As at 31 December 2025, Ampol had invested approximately $9 million into BRF across capital and operational expenditure since inception (disclosed under Risk 2 potential effects).
Physical risk event
In 2025, during Cyclone Alfred, Lytton refinery was proactively placed into a safe recirculation mode. Extreme weather after the cyclone caused damage to a crude storage tank resulting in a crude leak into a purpose-built bunded area. The cost for clean-up, repairs and additional demurrage incurred was $12.1 million net of insurance recoveries to date of $15.0 million. Additional repair costs, demurrage and recoveries for this event are expected in future years while the damaged tank remains out of service.
Anticipated financial effects
Risk 1: Reduced demand for traditional fuel products
There is a high degree of uncertainty associated with the effects of declining traditional fuel demand. Ampol has determined that the level of uncertainty involved in estimating the projected financial effects of this climate-related risk is such that the resulting quantitative information would be unreliable or not useful at this time. In the short and medium terms, financial modelling of the higher warming scenario using the House View suggests gasoline sales volumes decline (partially offset by population growth), while diesel and jet fuel demand remain robust. The Group's modelling of potential financial impacts to 2030 (medium term), based on both lower and higher warming scenarios, suggests no material impact to the Group's financial performance, financial position, cashflows or business model and value chain. Beyond 2030 (longer term to 2050), demand is highly uncertain; under the higher warming scenario financial modelling suggests earnings can remain resilient in real terms as declines in traditional fuels earnings are partially replaced by EV charging, lower carbon liquid fuels and non-fuel income, supporting sustained free cashflow generation. As the refinery approaches expected closure, its carrying value may reduce to align with residual recoverable cashflows; when closed and converted to an import terminal, free cashflows temporarily decline during conversion investment before increasing again. Under the lower warming scenario, decline in traditional fuels earnings is likely more rapid with high uncertainty on growth of replacement earnings streams; Ampol modelled a high growth case and a risk-adjusted moderate growth case (50% of high growth case) – even under the moderate case, the Group remains profitable, maintains a strong financial position and maintains free cashflow, albeit lower than in the higher warming scenario.
Risk 2: Climate policy and regulatory uncertainty
There is higher measurement uncertainty regarding effects of climate policy and regulation over the medium to longer term. Ampol has determined the level of uncertainty is such that resulting quantitative information would be unreliable or not useful at this time. Notwithstanding this: while Lytton is subject to an emissions reduction profile under the Safeguard Mechanism to 2030, absence of clarity on post-2030 requirements creates heightened risk that additional capital investment could be poorly timed or stranded; omission, repeal or easing of climate policies could reduce confidence in capital allocation to decarbonisation and opportunities (e.g. BRF, in which Ampol had invested approximately $9 million since inception as at 31 December 2025); higher cost of or reduced access to capital for emerging lower carbon investments; and fluctuation in growth/decline rates for traditional fuels due to changing policy. In the medium to longer term, earnings from lower carbon products are likely lower due to policy uncertainty or reduced access to capital; across both scenarios, in real terms the Group should maintain strong financial performance, but the carrying value of prior investments may not be supported should policies change.
Opportunity 1: EV charging solutions
In the short, medium and longer term, revenue from and investment into EV charging solutions is anticipated to grow as customers transition to EVs. Ampol has determined that the level of uncertainty involved in estimating projected financial effects is such that resulting quantitative information would be unreliable or not useful at this time. In the medium and longer term, heavy transport customers are anticipated to transition to electric alternatives for some applications, providing additional revenue opportunities. Increasing EV penetration is expected to support increased EV charging earnings to partially offset reduced traditional fuel earnings across both scenarios; financial modelling shows Ampol remains free cashflow positive as cashflow generation supports debt reduction, investment in traditional fuels and growth businesses, and dividend distribution.
Opportunity 2: Co-processed and lower carbon liquid fuels
In the long term, Ampol anticipates demand for lower carbon liquid fuels will grow to support decarbonisation of hard-to-abate sector emissions. There is high measurement uncertainty given the uncertain role Ampol may play in the value chain, margins associated with lower carbon liquid fuel products, and uptake rate. Ampol has determined the level of uncertainty is such that resulting quantitative information would be unreliable or not useful at this time and has not attempted to model financial outcomes. The supply chain infrastructure does not need to be modified in any material way to support supply and distribution of lower carbon liquid fuels, requiring minimal investment.
Ampol has relied on the exemption from disclosure of commercially sensitive information under clauses B34-B36 of AASB S2 as it pertains to information about climate-related opportunities not already publicly available (noted for both EV charging investment levels and lower carbon liquid fuels initiatives).
Climate resilience and scenario analysis
3.6 Climate scenario analysis
In 2025, Ampol undertook climate-related scenario analysis, separate to the strategy development process, to assist in identifying and assessing climate-related risks and opportunities and to test the resilience of its strategy and business model. The scenario analysis was both a qualitative and quantitative exercise, based upon the TCFD six-step approach, drawing from publicly available scenarios as well as relevant regional or country level data for Australia and New Zealand. All Ampol's operations in Australia and New Zealand were in scope for the scenario analysis.
This Sustainability Report includes output from two scenarios: a lower warming scenario limiting the increase of global average temperature to 1.5°C above pre-industrial levels (required by the AASB S2 standard), and a higher warming scenario with an increase well exceeding 2°C above pre-industrial levels that best aligns with Ampol's House View.
| Lower warming | Higher warming | |
|---|---|---|
| Scenario archetype | IPCC RCP 1.9 / SSP1 (range 1.0°C–1.8°C); IEA NZE50; NGFS Net Zero 2050; IAM 1.5°C | IPCC RCP 4.5 / SSP2 (range 2.1°C–3.5°C); IEA APS and STEPS; NGFS Delayed Transition; NGFS Current Policies; IAM >2.5°C |
| Temperature outcome | <1.5°C by 2100 versus 2020 baseline | 2.5°C–3.0°C by 2100 versus 2020 baseline |
| Rationale | Test resilience against rapid decarbonisation consistent with the most ambitious temperature goal in the Climate Change Act 2022 (Cth) and Paris Agreement | Test resilience against moderate to higher warming, transition slow at first then accelerating |
| Severity of physical impact | Low | Medium |
| Severity of transition impact | High | Low-Medium |
| Domestic policy response | Early and strategic | Haphazard and with lags, potential second order disruptive effects |
| Carbon price | Steady rise | High volatility |
| Technology change | Rapid, in line with or ahead of Rest of World | Some technologies regionally behind Rest of World |
| Customer attitudes and behaviour | Mainstream preference shifts to lower carbon transport with limited barriers; climate movement well-funded | Initially slow shift while consumers face barriers; climate movement well-funded and disruptive |
| Access to finance and insurance | Finance available with preferential lending; insurance available with rising premiums | Finance available with preferential lending but costs increase; insurance availability declines, premiums steeply rise leading to potential increased self-insurance |
Under the lower warming scenario, Australian and New Zealand passenger/light transport electrification accelerates rapidly, gasoline demand virtually eliminated by 2050 in Australia and declining ~90% in New Zealand from 2025 levels. Diesel demand sustained short term but declines rapidly post-2030, falling ~80% in NZ and ~95% in Australia by 2050 compared to 2025 (RD still expected in hard-to-abate sectors). Jet fuel demand decline is more moderate with SAF potentially reaching 70-80% of aviation market share by 2050.
3.8 Climate resilience
As part of the climate resilience assessment, Ampol has used scenario analysis to evaluate how climate scenarios may impact its business model and strategy and to identify key areas of uncertainty that could impact its ability to adapt and respond to climate-related risks and opportunities. These areas of uncertainty are an important input in understanding how climate scenarios may impact business model and strategy, enabling key signposts to be identified and monitored, and providing the ability to assess the pace and shape of the transition more promptly.
3.8.1 Lower warming scenario – 1.5°C rapid transition
Strong international consensus drives early moves from Australian and New Zealand governments to rapidly decarbonise transport and physical risks are moderate. Gasoline demand virtually eliminated by 2050 in Australia and declines ~90% in NZ; diesel demand sustained short term but declines rapidly post-2030 (~80% fall in NZ, ~95% fall in Australia by 2050); RD still expected to play a role (e.g. mining); jet fuel decline more moderated with SAF potentially 70-80% of aviation market share by 2050. This scenario presents both opportunities and risks: Ampol's infrastructure and capital management framework provide flexibility to adapt to changing demand, including through EV charging and lower carbon liquid fuels. Key areas of potential change to capital allocation include: increasing allocation to the "Evolve" pillar (EV charging, lower carbon liquid fuels); optimising retail segmentation (U-GO, EV charging hubs, premium convenience including QSR) while consolidating and recycling capital; consolidation/recycling of capital from surplus fuel infrastructure and land; and conversion of Lytton refinery to an import terminal and/or lower carbon liquid fuels manufacture. Ampol's network segmentation strategy supports accelerated EV charging deployment while optimising remaining footprint for U-GO conversions. Ampol's asset quality is well positioned to benefit from industry consolidation. Rapid decarbonisation increases pressure on Lytton refinery economics; given ~80% of Australia's liquid fuel demand is met through imports, Ampol has flexibility to reduce imports and place Lytton production domestically, or bring forward closure. The Trading and Shipping business would evolve to trade a wider range of commodities including lower carbon liquid fuels, feedstocks, electricity and carbon products.
3.8.2 Higher warming scenario – well above 2.0°C
Fragmented international action drives a slower, more uneven energy transition where transport emissions decline more gradually and physical risks are more pronounced. Ground fuels decline at a moderate pace due to electrification while aviation fuels continue to grow with potential modest SAF substitution. Ampol's traditional fuels value chain remains in place longer given lags to lower carbon alternative adoption. If this scenario eventuates, Ampol has capacity to: maintain capital allocation toward its core fuel value chain; increase capital for adaptation projects responding to changing weather exposure; moderate capital investment in EV charging and lower carbon liquid fuels; continue operating Lytton refinery, monitoring signposts for potential conversion; and preserve capital/strengthen balance sheet or distribute surplus cashflows as dividends. Network segmentation provides flexibility to respond to local market dynamics. Development of a lower carbon liquid fuels manufacturing industry is uncertain in this scenario, and Ampol's strategy can adapt to focus on imports leveraging Trading and Shipping capability. In a higher warming scenario with global temperature increase over 2.0°C, Ampol's assets may experience incremental exposure to physical climate hazards such as flooding, wind, fire and heat stress; these exposures are not expected to be material to Ampol's financial position or operating performance and are managed through existing operational, asset management and business continuity frameworks. Ampol relies on third-party infrastructure and utilities including roads, ports, electricity and telecommunications; disruptions from extreme weather are expected to be localised, temporary and manageable with no identified systemic risk. Lytton refinery has relatively higher exposure to physical hazards due to scale and role in crude processing, mitigated through operational controls including maintaining a minimum inventory of 10 days. Ampol has robust business resilience and continuity plans, asset maintenance programs and insurance arrangements in place, and geographic diversity of its network further limits potential for material disruption at a Group level.
Risk ManagementRisk Management
Processes for identifying, assessing and managing climate-related risks
2.1 Risk management
Ampol's identification and management of risks is performed in accordance with the Ampol Risk Management Framework (ARMF), summarised in the Risk section of the OFR. The ARMF integrates enterprise, operational and critical risk management with governance, assurance and operational control systems. The ARMF is based on ISO 31000:2018 – Risk management – Guidelines and the ASX Corporate Governance Council's Corporate Governance Principles and Recommendations (4th Edition), reviewed by the Board at least annually. Climate-related risk governance is led by the Board and implemented through the Three Lines Model: line management manages day to day risks; specialist second line functions (Group Risk and Compliance, Group Sustainability) provide frameworks, oversight and challenge; Internal Audit provides third line independent assurance. Climate change is one of 16 key enterprise risks within the enterprise risk profile and register. The Board has no appetite for climate change inaction in strategic planning, or investment/divestment decisions, requiring management to actively model and plan for physical impacts, manage energy intensity to meet emissions reduction targets, and disclose to market/regulators routinely. Ampol treats climate-related risks as systemic, affecting strategy, capital allocation, operations, asset integrity, supply chain resilience, customer demand and reputation, and as drivers of other enterprise risks: organisational capability, regulatory compliance, strategy and transformation, capital management, business interruption and environment.
2.2.1 Climate-related risk and opportunity identification
Identification is performed across Ampol's operations and value chains, gathering and analysing: internal data (risks/uncertainties factored into business plans and corporate model, operational/asset integrity/incident data, insurance and financial information, emissions/energy data, asset-specific data e.g. site elevation and infrastructure measurements, and outputs from climate-related scenario analysis); and external evidence (government energy/climate policies, emissions trends, regulatory developments, technology/market changes e.g. EVs and lower carbon liquid fuels, customer demand forecasts, investor/stakeholder expectations, public/legal developments, industry peer disclosures). Opportunities are identified through monitoring climate-related trends and via the risk identification process. In 2025, Ampol used climate-related scenario analysis to identify risks and opportunities and test resilience of strategy and business model, considering different pathways for fuel demand, policy, technology and customer behaviour; outputs informed robustness of the business model/operations, appropriateness of strategy, and pace of investment, and assisted in identifying signposts for a timely strategic response.
2.2.2 Climate-related risk and opportunity assessment
Ampol assesses nature, likelihood and magnitude of impact using qualitative (stakeholder sentiment, regulatory response) and quantitative (financial impact, operational downtime) criteria; a scoring system assesses likelihood/magnitude for each risk. Risks are evaluated by combination of potential impact (financial, reputational, regulatory, business interruption, health/safety/wellbeing) and likelihood (industry/market trends plus Ampol's own estimates); this approach integrates climate risk into overall risk management. Climate-related opportunities are assessed through an annual strategy and business planning process across fuel supply, convenience growth, new mobility solutions and strategic enablers; key impacts/dependencies assessed using the ARMF to ensure transition, market, execution, regulatory and physical risks are considered against Board-approved risk appetite. Ampol applies an internal decision-making framework for material projects/investments presented to the Investment Committee, applying a weighted score against decision criteria including material risks, strategy alignment and decarbonisation approach alignment. Inputs quantify transition risk and chronic physical risk impacts, reflected in budgets, investment cases or business decisions; acute physical risk likelihood/magnitude assessed using quantitative (where available) and qualitative factors, with more detailed quantitative assessment performed when required (e.g. insure/self-insure decisions).
2.2.3 Climate-related risk and opportunity prioritisation
Climate-related risks are prioritised based on Board risk appetite; Key Risk Indicators (KRIs) set tolerance thresholds and monitor whether Ampol remains within appetite. Ampol prioritises risks potentially affecting performance/future cashflows over the next strategic planning cycle, based on potential impact on operations and financial performance; the ARMF incorporates probability and severity to support resource allocation across multiple time horizons. Climate-related opportunities are prioritised based on impact, feasibility and strategic alignment using the same Capital Allocation Framework and investment criteria as other initiatives; the Investment Committee assesses major investments against strategic fit, risk, financial hurdles and execution readiness, with post-investment reviews testing value delivery. Approved opportunities are embedded within the Group's strategy, with capital/operating expenditure reflected in the five-year business plan.
2.2.4 Climate-related risk and opportunity monitoring
Ongoing monitoring includes: annual deep dive review of climate-related risks on the material risk register, presented to the ALT and relevant Board committees; KRIs established for the climate change material risk with quarterly progress monitoring reported to the S&SC; and KPIs tracking progress against specific mitigation activities (e.g. emissions reduction), with oversight from the Decarbonisation PRB. Material changes in climate risk profile, appetite breaches and assurance outcomes are reported to the ALT and Board committees; significant events are assessed under the continuous disclosure framework and disclosed under ASX Listing Rule 3.1 if market sensitive. Opportunities are monitored using KRIs measuring pace/quality of execution of energy transition strategy, capital deployment, decarbonisation milestones and targeted returns; variances trigger management review, escalation to the ALT and Board reporting under the Strategy and Transformation risk category.
2.2.5 Changes from the previous reporting period
In the current reporting period, there were no material changes to processes used to identify, assess, prioritise or monitor climate-related transition risks and opportunities, which continue to follow the ARMF. In 2025, improvements were made to physical climate risk modelling and assessment, aligning time horizons and scenarios with the business planning cycle and scenario analysis. An enhancement was also made to the climate KRI scorecard to move away from theoretical self-assessment against Climate Active 100+ assessment criteria; climate change KRIs were changed to quantitative thresholds for: emissions intensity at Lytton refinery and key terminals; Convenience Retail Scope 2 absolute emissions reductions; and rollout of public DC EV charging bays in Australia and New Zealand. These indicators are now embedded in Ampol's regular risk monitoring cycle.
2.2.6 Risk review process
Climate-related risks and opportunities feed into an annual risk review and rolling risk monitoring cycle including: annual review of the enterprise material risk profile/register under the ERM standard, incorporating climate-related transition and physical risks; annual deep dives to the S&SC on climate change, business interruption and strategy/transformation enterprise material risks; annual review of climate-related KRIs and risk appetite settings, including physical risk appetite and vulnerability metrics; regular monitoring/review through the Decarbonisation PRB; and integration of climate-related risks/opportunities into strategic planning, business planning, capital allocation and major project approvals.
Metrics & TargetsMetrics and Targets
Climate-related metrics
Greenhouse gas emissions
Methodology (4.1)
Scope 1 and 2 GHG emissions are measured in accordance with the Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (2004) except for Ampol's Australian assets and operations, which are within scope of the National Greenhouse and Energy Reporting scheme (NGERs). Ampol has applied the Australian Sustainability Reporting Standard AASB S2025-1 Amendments to Greenhouse Gas Emissions Disclosures, which allows it to align Australian emissions reporting to NGERs methodology rather than the GHG Protocol (2004). Ampol applies an operational control approach to define its organisational boundary. Ampol prioritises data reflecting actual GHG emissions from operational activities or value chain activities; where such data does not exist or is not practically available, Ampol relies on estimates using proxies such as emissions factors combined with known economic output information. Scope 3 emissions calculations combine direct measurement and estimates where necessary, prioritising inputs/assumptions based on the Scope 3 measurement framework within AASB S2; certain categories are estimated using industry assumptions rather than supplier/customer specific data. The GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard (2011) establishes 15 categories, divided into Upstream (eight categories) and Downstream (seven categories) emissions. There were no changes in the measurement approach, inputs or assumptions in the current period.
Ampol has adopted the transitional relief provided under AASB S2 paragraph C4(b) which allows it to not disclose Scope 3 GHG emissions in its first annual reporting period; Ampol has elected to voluntarily report selected Scope 3 GHG emissions to provide additional transparency.
2025 operational greenhouse gas emissions (4.2)
In the period 1 January – 31 December 2025, Ampol's total absolute gross Scope 1 and 2 GHG emissions were 887,517 tCO2e, comprising 687,328 tCO2e Scope 1 and 200,189 tCO2e Scope 2 (location-based). Market-based Scope 2 GHG emissions for Australian assets only were 208,555 tCO2e. 99.58% of the Group's Scope 1 and 2 GHG emissions are in Australia, measured in accordance with NGERs (emissions factors from NGER (Measurement) Determination compilation 18 for 1 Jan–30 June 2025 and compilation 19 for 1 July–31 Dec 2025). The remaining 0.42% (New Zealand and rest of world) are measured in accordance with the GHG Protocol (2004), applying emissions factors from the New Zealand Ministry for the Environment, the Singapore Emissions Factors Registry, and the US Environmental Protection Agency. Group operational GHG emissions rose by 1.7% in 2025 due to an increase in Scope 1 emissions from Lytton refinery, resulting from isolated cases of increased flaring and reduced energy efficiency including extension of planned turnaround/inspection activity and proactive preparations for Cyclone Alfred. Scope 2 emissions are measured using the location-based method reflecting average emissions factors of the electricity grids consumed. As part of its transition plan, Ampol entered into an electricity retail agreement with Alinta Energy (operating wind farm), matching approximately 4% of total electricity consumption; this arrangement ended in November 2025 and was replaced with a new ~100 MW Power Purchase Agreement linked to an operating wind farm in New South Wales, under which renewable energy certificates are provided for Ampol's own use.
2025 value chain greenhouse gas emissions (4.3)
Ampol's Scope 3 inventory includes 11 of the 15 categories established by the GHG Protocol Corporate Value Chain (Scope 3) Standard (2011); reviewed whenever there is a significant event/change affecting the value chain. Ampol does not have emissions associated with processing of sold products (Category 10); remaining excluded categories deemed immaterial through relevance testing. In 2025, Ampol's Scope 3 emissions were 63,273,854 tCO2e. Upstream categories represented around 18% of Scope 3 emissions, with purchasing/shipment of crude oil and finished product (Category 1) the most material, accounting for 15% of total Scope 3 emissions. Downstream categories accounted for the other 82%, principally use of sold products (Category 11), accounting for 82% of total Scope 3 emissions.
Percentage emissions share for key aspects of Ampol's oil value chain: Emissions from oil production 16.2%; Transport of crude oil and refined product 2.1%; Emissions from oil refining 1.5%; Distribution and supply of refined oil products to end-users 0.2%; Emissions from use of sold products 80.0%; Total emissions 100.0%.
| GHG emissions (tCO2e) | 2025 | 2024 |
|---|---|---|
| Scope 1 emissions | 687,328 | 670,494 (restated) |
| Scope 2 emissions (location-based) | 200,189 | 202,113 |
| Sub-total Scope 1 and 2 emissions | 887,517 | 872,607 |
| Scope 3 emissions | 63,273,854 | 60,757,960 |
| Total Scope 1, 2 and 3 emissions | 64,161,371 | 61,630,567 |
(2024 calendar year operational emissions have not been subject to assurance.)
Transition risks
Vulnerability of business activities to climate-related transition risks (4.4)
Financial Statements Note B1 Revenue and other income indicates a measure of the Group's exposure to the risk of declining demand for traditional fuels, comparing gasoline sales to sales of diesel, jet fuels (expected to be more resilient) and lubricants/other products. In 2025, revenue from sale of gasoline was approximately 24.6% of the Group's total revenue, with non-fuel income representing approximately 3.3%. Ampol has several credible levers to manage its asset portfolio as volumes decline such that minimal stranded assets are anticipated as a result of transition risks, including: closing leased sites; conversion of existing retail assets to alternative formats (U-GO, EV charging hubs); sale of surplus owned assets as network is rationalised; combining supply chain infrastructure (terminals/pipelines) with other market participants in joint ventures, releasing surplus land; and Lytton refinery planned for conversion to an import terminal with optionality as a lower carbon liquid fuels manufacturing facility or other industrial applications.
Physical risks
Vulnerability of assets to climate-related physical risks (4.5)
Ampol engaged an external risk specialist to undertake climate-related physical hazard modelling across different warming scenarios. A physical risk vulnerability assessment was completed over all 1,217 of Ampol's physical assets (service stations, manufacturing facilities, terminals, pump stations, pipelines, depots, offices and data centres) for five climate indicators: extreme weather, fire, flood, heat and precipitation. Materiality was established using an overall risk rating of "Very High" or "Excessively High" under the Group Operational Risk Matrix. The vulnerability assessment showed: across all asset types, 99.9% have a "Low" vulnerability rating, while only 0.1% have a "Medium" vulnerability rating; among business units, the refinery exhibits a higher vulnerability rating to extreme weather events (floods, heavy precipitation, wildfires) compared to retail, distribution and other general assets. Given these results relative to the "Very High" materiality rating, climate-related physical risks do not currently pose a material physical risk to Ampol's assets or business activities under any of the selected scenarios or timeframes. During Cyclone Alfred in 2025, Lytton refinery was proactively placed into safe recirculation mode; extreme weather caused damage to a crude storage tank, with clean-up/repair/demurrage costs of $12.1 million net of insurance recoveries to date of $15.0 million.
Opportunities
Amount of business activities aligned to climate-related opportunities (4.6)
In 2025, revenue from sale of EV charging and lower carbon liquid fuels more than tripled, though very minor relative to overall Group revenue, representing approximately 0.04% of Group revenue.
| Metric | 2025 | 2024 | Growth |
|---|---|---|---|
| Revenue from EV charging | $7.0 million | $3.2 million | 119% |
| Revenue from sale of lower carbon liquid fuels (net of excise) | $5.4 million | $0.7 million | 671% |
Capital deployment
Capital deployment (4.7)
Ampol continued to invest in climate-related opportunities, including a further $42.6 million in 2025. Total capital expenditure in both 2024 and 2025 includes significant investment in the Ultra Low Sulfur Fuels project intended to enable the refinery to manufacture gasoline reducing tailpipe sulfur emissions and enable import of more fuel efficient vehicle models.
| Metric | 2025 | 2024 |
|---|---|---|
| Total capital expenditure (before divestments but includes grants) | $737.5 million | $654.8 million |
| Capital expenditure on climate-related risks (excludes insurance recoveries) | $12.1 million | Not available |
| Capital invested in climate-related opportunities | $42.6 million | $53.0 million |
Internal carbon prices
Use of an internal (shadow) carbon price (4.8.4)
Ampol uses an internal decision-making framework for reviewing material investments/business cases considered by the Investment Committee, including alignment with the Group's strategy to address the energy transition and potential impacts on operating costs from carbon pricing regulation. Ampol assesses potential impacts through an internal shadow carbon price for Scope 1 and 2 emissions in Australia, applying costs to carbon emissions for significant capital investments where applicable. In New Zealand, the NZ ETS puts a price on carbon requiring participants to buy or earn NZUs; Z Energy's surrender obligation is applied to fuel imports and passed on to customers through the supply chain. Ampol's internal carbon price is set with reference to external benchmarks, including spot prices and forward curves for ACCUs and NZUs in the short-to-medium term, and World Bank forecasts (State and Trends of Carbon Pricing Report May 2024 for the 2°C scenario) in the long term; pricing and assumptions reviewed quarterly. As at 31 December 2025, adopted carbon prices ranged from $39 (2026) to $61 (by 2030) for ACCUs, and NZ$38 (2026) to NZ$44 (by 2030) for NZUs. In New Zealand, the carbon price is a real cost rather than a shadow impact.
Remuneration
Remuneration and climate performance (4.8.5)
In 2022 the Board strengthened the link between employee remuneration and delivery of climate-related initiatives. The short-term incentive scorecard includes a climate component of 10% and applies to all Ampol employees eligible to receive a short-term incentive, representing 100% of above-(non) store employees and over 25% of Ampol's total employee base. In 2025, four measures were assessed under the climate component, including rollout of EV charging bays in Australia and New Zealand, and progress against three key operational emissions and emissions intensity reduction targets. The percentage of Senior Executives' remuneration recognised in 2025 that is linked to the climate-related performance measure can be found in the Remuneration Report (not reproduced in this Sustainability Report).
Climate-related targets
Definitions
- Target: a specific, measurable and short-medium term aim that Ampol is focused on achieving.
- Commitment: a dedication to pursue a particular course of action or achieve something.
- Goal: a broader, longer-term aspiration or achievement.
- Ambition: an overarching drive or desire for success and achievement.
As part of the release of the Future Energy and Decarbonisation Strategies in 2021, Ampol released its ambition to achieve net zero operational emissions (Scope 1 and 2) across its Australian operations by 2040, supported by short-term (2025) and medium-term (2030) emissions reduction targets for Convenience Retail and Fuels and Infrastructure business units in Australia. In New Zealand, prior to acquisition, Z Energy had set a 2030 target to reduce operational emissions (Scope 1 and 2 plus selected Scope 3 emissions) by 42% from 2020 levels; following acquisition, the same approach was applied after re-baselining Z Energy's inventory from FY20 to CY19, so the target is a 42% reduction in operational emissions from CY19 to 2029. None of Ampol's targets were derived using a sectoral decarbonisation approach.
Target 1a) Reduce operational emissions intensity (Scope 1 and 2 CO2e per kL of Total HVP) from 2021 levels
| Element | Detail |
|---|---|
| Metric | GHG emissions reduction measured in tCO2e/kL of Total HVP |
| Objectives | Mitigation of Scope 1 and 2 GHG emissions |
| Coverage | Total high value product from Lytton refinery (excluding lubricants) |
| Scope | Scope 1 (direct fuel/combustion process, fugitive) and Scope 2 (electricity) |
| Period | 2021–2030 |
| Base year | 2020/21 aligned with NGERs period of July to June |
| Milestones | Reduce emissions intensity by 5% by 2025; 10% by 2030 |
| Target type | Gross emissions intensity |
| Jurisdictional commitment | Established prior to Australia increasing its NDC to 43% reduction below 2005 levels by 2030 under the Climate Change Act 2022 (Cth); Ampol proposing to reset 2030 interim targets |
| Validation | Not validated |
| Review process | Reviewed quarterly at Decarbonisation PRB and S&SC |
| Progress achieved | In 2025, Lytton refinery emissions were 3.5% above target due to planned/unplanned operational events; Ampol's review identified it is unlikely Lytton will achieve this target due to the Ultra Low Sulfur Fuels project coming online in 2026 and planned T&I in 2029; proposing to revise the target in line with Safeguard Mechanism |
Target 1b) Reduce operational emissions intensity (Scope 1 and 2 CO2e per kL of Terminal Throughput) from 2021 levels
| Element | Detail |
|---|---|
| Coverage | Total volume throughput for Kurnell NSW, Banksmeadow NSW and Newport Vic terminals |
| Period | 2021–2030 |
| Base year | 2020/21 |
| Milestones | 5% by 2025; 10% by 2030 |
| Target type | Gross emission intensity |
| Validation | Not validated |
| Revision | Proposed new Group level target of 50% GHG reduction for non-refining operations to replace the 2030 target from 2026 |
| Progress achieved | 25.6% reduction in 2025, emissions intensity of 0.0019 from 2021 baseline of 0.0025 |
Target 1c) Reduce operational emissions (Scope 2) across stores owned/operated by Ampol in Australia from 2021 levels
| Element | Detail |
|---|---|
| Coverage | Ampol owned and operated stores in Australia |
| Scope | Scope 2 (electricity, market based) |
| Period | 2021–2030 |
| Milestones | Reduce emissions by 25% by 2025; 50% by 2030 |
| Target type | Gross absolute quantitative |
| Validation | Not validated |
| Progress achieved | Convenience Retail exceeded its pathway target, achieving 32% by 2025 through energy efficiency initiatives (LED lighting, removal of high energy equipment), solar panel installations and PPAs |
Target 1d) Commit to percentage equivalent net renewable electricity for operational use in Australia
| Element | Detail |
|---|---|
| Coverage | Convenience Retail and Fuels and Infrastructure business units in Australia |
| Scope | Scope 2 (electricity) |
| Period | 2021–2030 |
| Milestones | 40% by 2025; 50% by 2030 |
| Target type | Absolute quantitative |
| Validation | Not validated |
| Progress achieved | In 2025, Ampol achieved 32%, with grid decarbonisation a significant proportion and small contribution from behind-the-meter solar/battery systems; shortfall resulted from a decision to reduce solar rollout at convenience retail sites due to high capital cost |
Target 1e) Reduce Z Energy operational emissions from 2019 levels
| Element | Detail |
|---|---|
| Coverage | Z Energy operations in New Zealand |
| Scope | Scope 1, Scope 2, and selected Scope 3 (C4 road transport, C5 waste, C6 business travel) |
| Period | 2019–2029 |
| Milestones | 42% by 2029 |
| Target type | Absolute quantitative gross target |
| Jurisdictional commitment | Informed by Paris Agreement using Science Based Targets Initiative "Science-Based Target-Setting Tool – Version 1.1", Absolute Contraction Approach |
| Validation | Not validated |
| Review process | Monthly reporting to Z Energy Leadership Team for Z Energy Performance Scorecard |
| Progress achieved | Achieved a reduction of 16,997 tCO2e in 2025, representing a 51% reduction from the 2019 base year, largely due to lower diesel used in domestic road transport, improved route efficiency, fleet improvements, and reduced waste to landfill |
Ampol has not yet set a Scope 3 emissions reduction target for Australia (Z Energy includes selected Scope 3 categories in its operational emissions target), because most Scope 3 emissions relate to customers' use of sold products, which Ampol does not control; the energy transition was found to be one of Ampol's greatest strategic priorities in the Group's recent double materiality assessment. Ampol has commenced tracking the carbon intensity of the energy it sells to customers on a CO2e/GJ basis.
Target 1f) Operate and control at least 500 equivalent EV charging bays by 2027 in Australia
| Element | Detail |
|---|---|
| Metric | Number of fast EV public charging bays |
| Coverage | Australia, forecourts and destinations |
| Scope | Fast and ultrafast chargers of 150kW rating or higher |
| Period | By 2027 |
| Base year | 2023 |
| Milestones | Deliver 144 bays in Australia in 2025 |
| Target type | Absolute quantitative |
| Validation | Not validated |
| Progress achieved | Delivered 146 EV charging bays across 29 sites, bringing the in-country total to 290 as at 31 December 2025; on track to achieve 500 bays by 2027 |
Target 2a) Reduce emissions intensity (Scope 1) tCO2e/kL of petroleum feedstocks (production variable) – legislated Safeguard Mechanism target
| Element | Detail |
|---|---|
| Coverage | Petroleum feedstocks Lytton refinery (excluding lubricants) |
| Scope | Scope 1 (direct fuel/combustion process, fugitive) |
| Period | 1 July 2023 – 30 June 2030 |
| Base year | Multi-year average approach using 2017/18 to 2021/22 data, excluding highest/lowest production years |
| Milestones | 2023/24: 0.1135 tCO2e/kL; 2024/25: 0.1143; 2025/26: 0.1178; 2026/27: 0.1193; 2027/28: 0.1184; 2028/29: 0.1167; 2029/30: 0.11458 |
| Target type | Hybrid emissions intensity target combining facility-specific and default (industry average) intensity baselines; transitions to default baseline by 2030. Ampol expects reliance on carbon credits will be a contributor to achievement; extent unknown at this stage, but will transparently report retirement of carbon credits annually |
| Jurisdictional commitment | Informed by Australia's 43% below 2005 by 2030 and net zero by 2050 targets and legislative requirements under the National Greenhouse and Energy Reporting Act 2007 (Cth) and NGER (Safeguard Mechanism) Rule 2015 (Cth) |
| Validation | Emissions intensity determination application reasonably assured by KPMG and validated by the Clean Energy Regulator (CER); annual emissions reporting undergoes limited assurance by KPMG prior to submission |
| Review process | Monitored quarterly at Decarbonisation PRB and S&SC |
| Revision | No revisions in current period; Ampol considering whether to submit a revised Emissions Intensity Determination (EID) to the CER due to a relevant regulatory change (fuel standard amendment under the Fuel Quality Standards Act 2000 (Cth)) requiring a new gasoline desulfurisation plant, which has been applied to the Industry Average Emissions Intensity component of the 2025/26 target and subsequent years |
| Progress achieved | Lytton refinery was assessed to be a TEBA-exposed entity by the CER, with the facility's Scope 1 baseline decline rate reduced from 4.9% p.a. to 1% p.a. (for three years), requiring Ampol to surrender 47,859 ACCUs |
4.8.1 Target setting process and review approach
Ampol's climate-related targets were established as part of the 2021 Future Energy and Decarbonisation Strategies, approved by a Board Sub-committee (Board Chair, S&SC Chair and MD & CEO). Ampol conducts quarterly reviews of targets through the Decarbonisation PRB and S&SC using KPIs including GHG emissions intensity, renewable energy usage and energy efficiency improvements. No changes were made to previously set targets in this reporting period; however, Ampol commenced a review of the existing 2030 targets given approaching completion date of 2025 targets, current performance, further abatement opportunities, and the introduction of AASB S2. Considerations included: Convenience Retail surpassed its 2025 target with limited further cost-effective abatement; Fuels and Infrastructure (Terminals) surpassed both 2025 and 2030 targets but further abatement opportunities exist, particularly for the remaining 10 Australian terminals not currently in scope; Fuels and Infrastructure (Lytton) now subject to mandatory Safeguard Mechanism target; existing targets need to reflect the whole Group including New Zealand, Singapore and USA; and capital outlay for direct emissions reduction is increasing while delivering lower abatement. Proposed revisions were reviewed by the S&SC and approved by the Board in February 2026:
2040 Ambition (revised): Net zero operational emissions (Scope 1 and 2) across Ampol operations, maintaining the net zero ambition but extending the boundary to include all Ampol's operations globally.
2030 Interim Targets (revised, effective from 2026):
- Refining operations: Reduce operational emissions intensity for Lytton refinery to 0.11458 tCO2e/kL of production variable against a baseline of 0.1173 tCO2e/kL by 2030 (aligned to legislative baseline and decline rate set by the Safeguard Mechanism, assuming 1% baseline decline rate for 2026-2028 per the awarded TEBA application).
- Non-refining operations: 50% reduction in operational emissions (Scope 1 and 2) across Ampol non-refining operations (Distribution – Terminals, Depots, Pipelines; Lubricants manufacturing; Convenience Retail; New Zealand including Z Energy; and other International Offices – Singapore and USA); operate and control at least 1,000 equivalent EV charging bays across Australia and New Zealand combined.
4.8.2 Planned use of carbon credits
Ampol is committed to reducing its carbon footprint through direct abatement measures, with carbon credits playing a supportive role to meet emissions reduction targets and fulfil compliance obligations under the Safeguard Mechanism. As capital outlay for direct action increases and delivers lower abatement, Ampol is looking to re-align its use of offsets to help achieve its 2040 net zero operational emissions ambition. Except for the Lytton refinery target (mandated under the Safeguard Mechanism, where carbon credits are anticipated to play a significant role), Ampol's goal for all other current targets is to directly reduce gross GHG emissions. For proposed 2030 targets, where direct action alone is not financially viable, carbon credits will also be used; the extent of reliance is currently uncertain, but Ampol will continue to transparently report retirement of carbon credits annually. Ampol is also required to surrender carbon credits to cover sales of its Climate Active certified Carbon Offset Fuel product, an opt-in fuel product for B2B customers; offsets used are selected by the customer and include a mix of Australian and international credit units meeting Climate Active requirements. In 2025, the Ampol Petroleum Distribution fleet used the Carbon Offset Fuel product, though offsets were not considered a contribution to internal climate target performance; under the revised 2030 targets from 1 January 2026, use of offsets may contribute to achieving targets. Ampol only sources carbon credits verified by the ACCU Scheme or meeting the quality requirements of the Core Carbon Principles (CCP) created by the Integrity Council for the Voluntary Carbon Market (ICVCM); credits may represent underlying offsets from carbon removal or carbon reduction.
4.8.3 Emissions performance against 2025 targets for Australia
Ampol's 2025 target for Lytton refinery total emissions intensity was 0.1412 tCO2e/kL, with actual performance shown across 2020-2025 (baseline 0.1426 in 2020, reaching 0.1562 tCO2e/kL in 2025). The 2025 target for Terminals total emissions intensity was 0.0023 tCO2e/kL, with actual performance of 0.0019 tCO2e/kL in 2025 (baseline 0.0025 in 2020/2021). The 2025 target for Convenience Retail (tCO2e) was 76,782 tCO2e, with actual performance of 67,801 tCO2e in 2025 (baseline 102,376 in 2020). In 2025, Ampol continued to progress towards its target of 40% equivalent net renewable electricity for operational use, achieving 32% via grid decarbonisation, solar systems installed across 89 Convenience Retail sites, and continuing the PPA with Alinta Energy for Western Australia convenience retail locations. Ampol delivered 146 EV charging bays across 29 sites in Australia and 41 EV charging bays across 11 sites in New Zealand in the reporting period; as at 31 December 2025, there were 290 charging bays across 88 sites in Australia and 204 charging bays across 60 sites in New Zealand, totalling 494 bays. In 2025 Ampol made the strategic decision to slow the network rollout in New Zealand due to government policy change and low utilisation.