Scentre Group

CRROs identified

The Group identified four climate-related risks that are reasonably expected to affect the Group's prospects, and two climate-related opportunities that are reasonably expected to affect the Group's prospects.

Physical risks

• Rainfall, hailstorms and flooding: Increased rainfall, hailstorms and flooding potentially resulting in damage to property and equipment, impact to life safety, customer visitation and construction costs. Time horizon: could reasonably be expected to occur over the short to long-term time horizons (short term 2026–2027, medium term 2028–2030, long term 2031–2050).
• Bushfire: While Westfield destinations are primarily located in major metropolitan areas, some are positioned near grasslands, woodlands or forested areas that may present a bushfire risk, particularly through exposure to radiant heat and ember attack. Time horizon: could reasonably be expected to occur over the short to long-term time horizons.

Transition risks

• Policy and regulatory change: Increased costs of compliance due to climate policy and regulatory changes within Australia and New Zealand. Time horizon: could reasonably be expected to occur over the medium to long term.
• Stakeholder expectations: Failure to meet stakeholder expectations, such as not achieving publicly stated climate-related targets or making misleading statements, may negatively impact access to capital and brand. Time horizon: medium to long term.

Opportunities

• Enhance engagement with customers and communities: Could reasonably be expected to occur over the long term.
• Support business partner transition to a low-carbon economy: Could reasonably be expected to occur over the medium to long term.

Time horizon definitions

• Short: 0–2 years (2026–2027) – Business planning and financial budget cycle.
• Medium: >2–5 years (2028–2030) – Forward capital expenditure, maintenance plans and strategic asset planning.
• Long: >5–25 years (2031–2050) – The life cycle of Westfield destinations are greater than 5 years.

Approach to determining relevant CRROs

The Group identified six CRROs that were considered relevant for disclosure, to support primary users' understanding and decision making. In identifying the CRROs that could reasonably be expected to affect the entity's prospects, the Group considered both:

• financial materiality thresholds used in general purpose financial statements
• the selection of CRROs relevant to primary users was informed by investor engagement and industry themes.

CRROs are subject to ongoing monitoring and assessment as part of the Group's risk management processes. The CRROs for disclosure will be reassessed on an annual basis.

Information base used to identify CRROs

An initial list of CRROs relevant to business operations was developed through external research, support and review from external advisers, internal sources including workshops with team members from across the business, and insights previously identified under the Task Force on Climate-related Financial Disclosures (TCFD).

Internal inputs included the Group's Integrated Environmental Plan and portfolio climate exposure assessments. The assessments were focused on a broad range of physical climate hazards, and the degree to which the Group's destinations may be affected.

External inputs included publicly available information and competitor data, property and construction industry reporting, and international perspectives informed by climate scenarios from the United Nations (UN).

Business model description

The Group owns and operates 42 Westfield destinations in Australia and New Zealand. Westfield destinations are uniquely located in close proximity to where 21 million people live and work. They are considered essential social infrastructure and are located on major transport hubs and close to existing and planned infrastructure.

The portfolio connects 3,700 diverse businesses, encompassing 12,000 outlets, to Westfield customers. As a vertically integrated owner, operator, manager and developer, the Group has the capabilities and expertise to design, construct, operate, manage, lease and market the platform of Westfield destinations.

The impacts of climate-related risks and opportunities (CRROs) are spread across the supply chain. The Group takes a whole-of-business approach to considering, managing and mitigating these risks and opportunities. Consideration of CRROs is embedded into planning and decision-making processes, and mitigation and management measures are integrated into operations with relevant subject matter experts employed within relevant operational and support functions.

Concentration

The Group's geographical diversity assists the Group's ability to withstand regionally concentrated factors such as extreme weather. Should a climate event occur, there may be potential impacts to the Group's operations.

While Westfield destinations are primarily located in major metropolitan areas, some are positioned near grasslands, woodlands or forested areas that may present a bushfire risk, particularly through exposure to radiant heat and ember attack. Some of the Group's destinations are vulnerable to rainfall, hailstorms and flooding, and some are vulnerable to bushfires.

Mitigation and adaptation measures (direct)

Rainfall, hailstorms and flooding

• Emergency response procedures are documented for each destination, supported by regular training and evacuation drills.
• Destinations liaise regularly with police and local emergency services and conduct joint emergency exercises.
• Wet weather contingency plans are in place to mitigate hazards such as leaks, slips and falls.
• Routine roof inspections are conducted to clear leaf debris from box gutters, reducing water-related risks.
• Flood mitigation strategies include relocation of critical equipment from low-lying, high-risk areas and widening of stormwater drains.
• Climate Change Adaptation Plans are prioritised for destinations most exposed to climate-related physical risks including, but not limited to, rainfall, hailstorms and flooding.
• Maintenance of comprehensive insurance coverage for property damage, business interruption and personal injury.

Bushfire

• Emergency response procedures are documented for each destination, supported by regular training and evacuation drills.
• Destinations liaise regularly with police and local emergency services and conduct joint emergency exercises.
• Hazard reduction activities, such as back burning, are carried out on a risk-based assessment.
• Climate Change Adaptation Plans are prioritised for destinations most exposed to climate-related physical risks, including bushfire risk.
• Based on a risk assessment, some destinations have generators to maintain power to essential services should power be disrupted.
• Maintenance of comprehensive insurance coverage for property damage, business interruption and personal injury.

Policy and regulatory change

• Monitor emerging regulations and industry trends.
• Incorporate cost benefit analysis of replacing end-of-life equipment with more energy-efficient alternatives into strategic capital planning processes.
• Implement advanced building analytics, upgrade to LED lighting across all destinations, and replace plant and equipment at end of life.
• Use sustainable development and design principles to address potential changes to building standards and reduce embodied carbon in construction.
• Include sustainable practices within tenancy design guidelines to support business partner alignment with environmental objectives.
• Waste management plans focused on reducing organic material sent to landfill.
• A Group target to achieve net zero emissions (scope 1 and 2) for wholly-owned Westfield destinations by 2030 (the "net zero target"), with strategies to extend net zero emissions across all destinations.

Stakeholder expectations (indirect)

• Monitoring trends and stakeholder expectations to support alignment with emerging requirements and industry standards.
• Internal verification of external communications, incorporating review and approval by subject matter experts across the business.
• Independent third-party assurance of key environmental data.
• Regular monitoring and disclosure of progress towards the Group's net zero (scope 1 and 2) emissions target for wholly-owned destinations.
• Regular engagement with investors, lenders, joint venture partners and business partners about climate-related topics to seek feedback, share insights and remain informed on emerging themes.
• Quarterly meetings with joint venture partners to discuss and align on future investment opportunities.
• Implementation of an Australian Sustainability Reporting Standards (ASRS) reporting plan, supported by internal governance structures.

Opportunities implementation strategies

• Enhance engagement with customers and communities: In 2025, Westfield Kotara commenced a trial of a new EV operating model to inform future opportunities. Following completion of the trial, the potential to introduce EV charging facilities across additional destinations will be evaluated. Implementation will be informed by EV adoption across Australia and New Zealand, duration and changes to government incentives, technology evolution, and implementation costs and expected costs for future upgrades.
• Support business partner transition to a low-carbon economy: There are 28 Westfield destinations with an embedded electricity network where the Group has the ability to procure and surrender renewable energy certificates on behalf of business partners. Engagement and discussions with business partners are ongoing.

Transition plan – Net zero strategy

The Group's net zero strategy is guided by understanding the key contributors to the Group's emissions. This has informed the approach and strategic priorities. Currently, of the total portfolio's scope 1 and 2 emissions, 94% are scope 2 emissions from the use of electricity, predominantly for air conditioning, lighting and vertical transport. The remaining 6% are scope 1 emissions relating to the consumption of gas for heating, fuels for emergency back-up power generation and refrigerants in air conditioning units. The net zero strategy has three principles, each with key dependencies, including market conditions, counterparty risk, and regulatory requirements:

1. Optimise centre efficiency – Operational teams are focused on increasing centre efficiency and reducing demand for energy, supported by three initiatives: Next Gen Building Analytics (a centralised team analyses building management systems alongside other data sets to identify opportunities to optimise energy efficiency and drive plant and equipment improvements); implementation of LED lighting across the portfolio; and replacing plant and equipment (heating, ventilation and air conditioning, and building management systems) with newer, more efficient technology.
2. Generate and procure renewable energy certificates – Using renewable energy reduces scope 2 emissions. There are on-site solar installations at nine Westfield destinations with a total solar generation capacity of 12.2MW. Viable opportunities for on-site solar installations are continually assessed, considering electrical infrastructure to support solar connectivity, access to significant sunlight, economic viability, and council development and approval requirements. Renewable energy certificates created by companies generating renewable electricity through solar, wind and/or hydro projects are purchased to account for electricity use. To account for electricity emissions from Queensland (excluding Westfield Helensvale), New South Wales, the Australian Capital Territory, Western Australia and Victorian destinations, the Group has energy agreements to purchase Large-scale Generation Certificates (LGCs) verified by the Australian Government's Clean Energy Regulator, which will progressively account for more electricity emissions supporting net zero scope 2 emissions by 2030. The Group's electricity supply agreement in New Zealand provides New Zealand Electricity Certificates that account for 100% of the electricity emissions from New Zealand Westfield destinations, in place since 2022. Opportunities to purchase renewable energy certificates for remaining Westfield destinations continue to be explored.
3. Address residual emissions – There will be residual scope 1 emissions remaining even after abatement efforts and efficiency optimisation initiatives have been implemented; these currently account for 6% of total portfolio scope 1 and 2 emissions. Residual scope 1 emissions will be addressed through engaging construction contractors to use diesel alternative equipment and replacing end-of-life equipment with low global warming alternatives. Any scope 1 emissions remaining after operational initiatives will be monitored and additional measures considered, which may include the use of offsets; however, no decision has been made regarding the types of offsets that may be used. The Group is currently exploring the implementation of environmental feasibilities which are presently considered more relevant to the business than the adoption of a carbon price, however this approach will continue to be assessed.

While the net zero target relates to wholly-owned Westfield destinations, strategies are implemented to reduce scope 1 and 2 emissions across the total portfolio, and emissions are tracked portfolio wide.

Current financial effects

The Group identified four climate-related risks and two climate-related opportunities reasonably expected to affect the Group's prospects. During the current reporting period there was no material impact associated with these risks or opportunities on the Group's financial position, financial performance or cash flows. Further, there is no significant risk of material adjustment to the carrying amount of assets or liabilities reported in the financial statements expected in the next 12 months.

In the current 2025 reporting period, the Group deployed $0.7 million of capital for the direct management of the climate-related risks, and $0.2 million of capital towards the implementation of the climate-related opportunities.

• Rainfall, hailstorms and flooding and Bushfire: did not have a material impact on the Group's financial position, financial performance or cash flows in 2025.
• Policy and regulatory change and Stakeholder expectations: there was no material impact on the Group's financial position, financial performance or cash flows in 2025.
• Enhance engagement with customers and communities: the current financial impact of EV charging infrastructure is aligned to the Group's car parking income which in the current year is limited to the trial phase; the opportunity is considered commercially sensitive.
• Support business partner transition to a low-carbon economy: there was no material impact to the Group's financial position, financial performance or cash flows in 2025 as a result of this opportunity.

There is no anticipated material adjustment to the 2026 financial results from any of these risks or opportunities based on current information.

Anticipated financial effects

Rainfall, hailstorms and flooding / Bushfire: Insurance policies are relied upon to assist in mitigating the potential financial impacts. Existing insurance policies provide varying levels of protection against significant property damage, business interruption (including loss of revenue) and liability claims. The cost of insurance specifically relating to these risks cannot be separately identified. It is assumed existing insurance coverage will be maintained across the short and medium time horizons; there is no indication insurance will become unavailable, though premiums could increase in the medium to long term due to a range of market influences. Current mitigation measures are expected to continue over the short and medium term at non-material cost; additional actions may be required at the most vulnerable destinations over the long term, with scale and cost dependent on future climate conditions. Increases in the severity of weather events could impact supply chain costs, including construction materials.

Policy and regulatory change: Current policy settings in Australia and New Zealand do not indicate regulatory changes affecting gas infrastructure over the short to medium term; this may evolve over the long term. Building codes (National Construction Code, NZ Building Code) are expected to be updated in 2028; if the historical trend of increasing sustainability requirements continues, future updates could result in higher building costs in the medium to long term. Australia has the Safeguard Mechanism and New Zealand has the Emissions Trading Scheme, but the Group is not currently impacted under either scheme; there is no indication a carbon pricing scheme will be introduced in the short to medium term, though this could result in higher energy and building material costs over the long term if introduced. The Australian National Waste Policy Action Plan 2024 established a national target to reduce organic waste by 50% by 2030; New South Wales requires compliance by July 2026, with other states possibly introducing mandates before 2030. Current mitigation measures are expected to continue over the short and medium term at non-material cost; additional actions may be required over the long term.

Stakeholder expectations: Ongoing engagement from investors, lenders and joint venture partners seeking information about climate-related initiatives and progress against the net zero target is expected over the short to medium term, and joint venture partners are expected to continue requesting environmental data. Current mitigation measures are expected to continue over all time horizons.

Enhance engagement with customers and communities: The EV trial assesses customer engagement and operational requirements without committing large-scale capital expenditure and provides insights into the long-term financial potential of EV infrastructure. The rate of EV adoption across Australia and New Zealand could influence financial opportunities over the long term, impacting charging revenue, customer dwell times and business partnerships within the EV ecosystem.

Support business partner transition to a low-carbon economy: The financial impact is subject to a high degree of uncertainty and may be influenced by the level of government action and incentives, the strategy and ambition of business partners, and the extent of future business partner participation. This is assessed as a medium to long term opportunity, with timing and scope of government assistance and business partner appetite remaining uncertain.

Financial categories impacted

Quantitative estimates have not been disclosed as the impact is not separately identifiable, is commercially sensitive, or is subject to a high level of measurement uncertainty. The financial statement line items that may be affected are:

• Financial performance/income statement: property revenue, property expenses, outgoings and other costs, property revaluations.
• Financial position/balance sheet: plant, equipment and intangible assets, investment properties.
• Cash flow statement: net cash inflow from operating activities and capital expenditure.

There is considerable uncertainty in estimating the potential financial impacts of climate-related physical events, policy and regulatory changes, stakeholder expectations, and the climate-related opportunities, arising from the difficulty in determining the frequency, severity, timing and scope of such events/opportunities across the short, medium and long-term time horizons.

Scenario analysis was used to evaluate how climate-related risks and opportunities (CRROs) may affect the Group's strategy and business model. The analysis used a low and high emissions scenario developed by the Intergovernmental Panel on Climate Change (IPCC). The impacts under each scenario were considered over short, medium and long-term time horizons.

The analysis considered the Group's capacity to adapt its strategy and operations and found that the strategy and business model is likely to remain resilient under both a low and a high emissions scenario, while recognising the limitations and uncertainties in scenario modelling.

Scenarios used

• Low emissions scenario – SSP1-1.9 "Taking the Green Road": assumes ambitious climate policies and rapid decarbonisation limiting warming to approximately 1.5°C by 2100 compared to pre-industrial levels.
• High emissions scenario – SSP5-8.5 "Fossil-fuelled development": assumes a resource-intensive world that prioritises economic growth over sustainability, with warming expected to increase between approximately 3.3°C to 5.7°C by 2100 compared to pre-industrial levels.

Climate-related transition risks and opportunities are more likely to have a greater impact under the "Taking the Green Road" scenario. Climate-related physical risks are more likely to have a greater impact under the "Fossil-fuelled development" scenario. A qualitative description of the impacts has been provided; quantitative information has not been provided due to the high level of measurement uncertainty.

Low-emissions scenario: capacity to adjust or adapt

• Policy and regulatory change: Short to medium term – improve operational efficiency through LED upgrades, enhance building analytics, continue waste diversion initiatives, explore reuse of construction materials. Medium to long term – install additional on-site solar panels where feasible, replace gas boilers with electric heat pumps, implement Sustainable Development and Design Principles subject to availability and feasibility. Long term – expand onsite recycling facilities.
• Stakeholder expectations: Medium to long term – adjust business partner mix as leases expire and identify new business partners to meet potential changes in customer preferences.
• Enhance engagement with customers and communities: Medium to long term – accelerate introduction of additional EV charging infrastructure to meet growing demand.
• Support business partners' transition to a low-carbon economy: Short to long term – purchase renewable energy certificates on behalf of business partners, revise store fitout frameworks, and continue to educate and engage partners.

High-emissions scenario: capacity to adjust or adapt

• Rainfall, hailstorms and flooding: Short to medium term – 19 assets with Climate Change Adaptation Plans (CCAPs) outlining current controls and future adaptation measures, informing destination risk profiles and long-term capital investment decisions; physical adaptations such as upgrading stormwater drainage, reinforcing/replacing roof structures, relocating critical equipment. Short to long term – operational priority actions and major capital works reviewed annually; business continuity plans in place; insurance programs reviewed annually.
• Bushfires: scenario assumptions include increased hot/fire days, poorer air quality, increased demand on destinations as places of refuge, more frequent/severe fire events, physical damage, and impacts on electricity transmission and construction-related supply chains (adaptation measures not separately itemised for this risk in the source).

Limitations and uncertainty in assessing climate resilience

Scenario analysis is subject to inherent limitations and uncertainties and is not intended to indicate likely outcomes. The scenarios are illustrative only, do not represent probabilities, and are based on assumptions and uncertainties. The analysis does not indicate whether any scenario will eventuate. Key areas of uncertainty include:

• Frequency and intensity of weather events and their impact on Westfield destinations: although climate models provide macro assumptions for physical weather changes by geographic region, they may not be directly attributable to the location of Westfield destinations.
• Regulations to achieve emission reductions: significant uncertainty about future regulations that may be introduced to reduce emissions in Australia and New Zealand.
• Stakeholder expectations: shaped by diverse and evolving factors, including financial capacity, physical climate impacts and broader societal and corporate trends, all of which are inherently uncertain.