WiseTech Global Limited

Four items are described (pp. 214–216). WiseTech concludes that the impacts of all the climate-related risks fall below its materiality threshold of 5% variance to baseline financial forecasts, and reports them because report users may expect them to affect its prospects (p. 214).

Short term is 2030, medium term 2040 and long term 2050 (pp. 214–216). WiseTech does not publish fixed long-term strategic planning horizons, so ten-year intervals were adopted to align with publicly available climate datasets (p. 217), with a justification printed for each year (p. 218).

Business model and value chain (p. 210). WiseTech is a software solutions provider and is not directly involved in the manufacture or physical transportation of goods. Upstream it relies on third-party data center infrastructure, including co-location facilities and public cloud services; downstream, a Global Partner Network assists customers.

Where effects are concentrated (pp. 214–215). Physical hazards are most relevant to data centers, which are critical assets, predominantly third-party co-location sites; no offices are considered critical. While 100% of data center IT assets may be exposed, impact on business activity is considered immaterial, and data center consolidation after the e2open acquisition is expected to reduce risk further (p. 214). Rising electricity prices are likely to increase co-location providers' cost pass-through and direct costs for on-premises data centers, and grid instability carries an inherent exposure of transaction-related revenue streams at approximately 30–50% of Group revenue (p. 215).

Effects through customers (pp. 215–216). Carbon pricing may increase costs within high-emitting segments of the global supply chain industry in WiseTech's customer base; approximately 30–50% of Group revenue is derived from volume-based customer activity, not fully correlated to external trade conditions. The opportunity affects the business model through development of features such as shipment-level emissions quantification (p. 216).

Pathway (p. 211). The Net Zero Carbon ambition (global operations Net Zero Carbon, products supporting customers to reduce emissions) is intended to provide strategic direction rather than represent a formal climate target. WiseTech says it does not have a formal climate-related transition plan but a high-level pathway, with low-carbon electricity and electrification of remaining fossil fuel usage as the primary levers.

Actions (pp. 211, 214, 216, 219). The Sydney HQ moved to 100% renewable electricity in FY25 and the Chicago site during FY26; low-carbon electricity (renewables or nuclear linked) will be procured for other sites where practicable. In FY26 WiseTech decided to discontinue carbon offsets (p. 211). Data center locations are expected to be consolidated after the e2open acquisition (p. 214). Energy consumption of pre-existing operations decreased following the move to a co-located data center in Australia and the transition from leased offices to co-working spaces (p. 219). Features responding to the regulatory opportunity include shipment-level emissions quantification (p. 216).

Resourcing (p. 216). Resourcing for climate-related activities is embedded within business-as-usual operations and immaterial; capital expenditure deployed toward climate-related risks is not material. Business activities aligned to the opportunity of climate-related regulation represented investment of approximately $3.5–19.5m in FY26, 1–5% of R&D investment.

Each item (names shortened) carries three statements, on the current year, carrying amounts and the short, medium and long term (pp. 214–216).

Modeling of the potential financial effects of the risks across the low (1.5°C) and high (>3°C) emissions scenarios led WiseTech to conclude that all fall below its materiality threshold of 5% variance to baseline financial forecasts (p. 214). For the opportunity, combined quantitative information would not be possible or decision useful (p. 216). WiseTech funds all software development out of operating cash flow (p. 216).

Resilience (p. 216). WiseTech concludes its strategy and business model remain resilient with no major adjustments or adaptations required or planned over the short, medium and long term, and says it retains significant strategic flexibility and capacity to adapt should future conditions require it.

Analysis (pp. 216–217). Scenario analysis was conducted in the year ended 30 June 2026. An external advisor developed specifications and obtained scenario information from international research and policy groups. Physical analysis covered the complete facility list and critical assets, principally data centers, including upstream critical assets, but not specific downstream geographies. Transition analysis covered the entire value chain. Opportunities were assessed qualitatively because quantitative modeling could not be achieved without undue cost or effort (p. 216).

The Net Zero 2050 scenario is described as aligned with the latest international agreement on climate change (Paris Agreement) (p. 217). Time horizons are 2030, 2040 and 2050 (p. 218). Uncertainty arises from the limits of climate modeling, emissions pathways, climate policy, carbon pricing, technology and customer demand (p. 209).