Stockland

Four risks and one opportunity are identified (pp. 184–185, 192–194). The time-horizon markers below are graphics on pp. 192–194.

Time horizons (p. 180). Short 0–5 years (2026–2030), aligned to financial forecasting, short-term decarbonization objectives and the annual strategy review cycle; medium 5–15 years (2031–2040), aligned to longer-term financial commitments and the development pipeline; long more than 15 years (2041 onward). Inputs (p. 184). The risks and opportunities register, scenario analysis, internal operations and key value chain providers, industry and government benchmarks, and professional services firms.

Business model and value chain (p. 180). Two operating segments: Development (communities and commercial properties and their infrastructure) and Investment Management (income-generating assets, investments and capital partnering arrangements). Upstream: utilities providers, materials suppliers, transport providers, construction companies, subcontractors, government and sources of capital. Downstream: residential and commercial tenants, home buyers, retail customers, investors, securityholders and capital partners.

Where risks are concentrated. Physical risk is relevant to all assets at varying degrees of likelihood and severity. Share of assets with high or very high inherent exposure in the short term (p. 192): flood stress 6%, drought stress 19%, water scarcity 56%, fire stress 11%, heat stress 8%, cyclone 10%, wind 12%; cyclone exposure is limited to assets in North Queensland and parts of South East Queensland. Transition exposure is concentrated in the pace of electricity grid decarbonization and in emissions-intensive manufacturing sectors supporting operations (p. 193). The circularity opportunity is concentrated in the development pipeline and, to an extent, operating assets (p. 194).

Effects (pp. 192–194). Described qualitatively, risk by risk, for example higher insurance and operating costs and project delays (physical) and premiums on lower-carbon materials, technologies and utilities (demand).

Strategy (p. 189). Four pillars of the Sustainability Strategy carry the climate strategy: Decarbonization, Resilience, Circularity and Social impact. Decarbonization seeks a practical, 1.5°C-aligned pathway to net zero across operations and the value chain.

Transition plan (p. 189). The 2023 Climate Transition Action Plan (key actions, pathways, assumptions and dependencies) is now integrated into the Climate Report rather than being a separate publication.

Actions (pp. 188–191). Renewable electricity procurement (voluntary green power and LGCs from the Energy Bay arrangement, which runs to 2030), onsite renewable generation, electrification and energy efficiency, and lower-carbon materials such as low-carbon concrete, electric arc furnace steel, lower-carbon reinforcing steel and sustainable timber solutions. Residual Scope 1 emissions are offset with ACCUs.

Dependencies for the 2030 target (p. 191). Electricity grid decarbonization, cost and availability of lower-carbon materials and services, the ability of suppliers, contractors and tenants to decarbonize and supply reliable data, stability of climate-related policy and market settings, and portfolio mix. The decarbonization forecast uses the AEMO Slower Growth model (p. 199).

Resourcing (p. 186). No separate pool of capital is allocated to climate initiatives, and the share of capital allocated to climate-related risks and opportunities cannot be separately identified.

Current effects (pp. 192–194). For the four risks and the opportunity the report says no material financial effects were identified for the year ended 30 June 2026. Material financial effects are impacts on balance sheet, profit and loss or cash flow line items that exceed financial materiality as applied in the financial report. Current physical-risk effects are measured from insurance-related claims on weather-related events (p. 199).

Anticipated effects. Qualitative only. No material short-term effects are anticipated for the physical, delayed decarbonization and lower-carbon demand risks, and none at any horizon for regulation. Over the medium and long term, physical risk may bring higher insurance and operating costs, increased resilience-related capital expenditure and construction disruptions or project delays, which may affect cash flows and asset values (p. 192); delayed decarbonization may slow progress on targets and affect stakeholder confidence and access to capital, and lower-carbon demand may increase operating and development expenses and capital required (p. 193); failure to respond to regulatory developments may bring financial penalties, compliance costs and constraints on access to capital (p. 194); circularity may bring avoided waste costs and lower whole-of-life costs (p. 194).

Basis. Medium- and long-term effects are qualitative because of measurement uncertainty (pp. 192–194); quantified effects beyond 2030 are not disclosed (p. 200).

Three scenarios were performed and refreshed as at 30 June 2025 (pp. 187–188):

RCP 4.5 is the primary scenario for short- and medium-term decision-making and for assessing current and anticipated effects; RCP 8.5 is used for post-acquisition physical risk assessments (p. 188). RCP 1.9 was assessed qualitatively against RCP 2.6, with no material difference in physical risk (p. 187). The analysis covers assets active, operational or in the development pipeline at 30 June 2025 (p. 198).

Resilience (p. 188). Resilience is supported by the ability to maintain financial flexibility and adapt strategy, portfolio settings and capital allocation. Under lower-warming pathways the existing strategy continues; under higher-warming pathways Stockland may adjust priorities, reassess portfolio exposures and strengthen risk management. Key uncertainties: pace of climate policy, technology, physical hazard modeling and third-party data.