Company disclosures (8)
Strategic Response to Climate-Related Risks and Opportunities
GPT's business strategy integrates sustainability considerations with the aim to provide long-term value creation and resilience across our operations. We are taking steps to decarbonise our portfolio and address the potential impacts of climate and nature-related risks on our business, where possible.
Net Zero Plan Framework
Our Net Zero Plan provides a framework for emissions reduction and resilience, focusing on emissions sources under our direct control while also addressing resilience to climate-related transition and physical risks and identifying opportunities across our portfolio and supply chain.
Corporate Emissions
- Measure: Emissions from corporate office electricity, proportion of base building emissions, flights, accommodation, services and consumables
- Reduce and eliminate: Improve office energy efficiency, use renewable electricity, consider demand for carbon neutral buildings and consider impacts of consumables
- Offset: Offset residual emissions to achieve net zero after aiming to reduce and eliminate emissions where feasible
Building Operations (Operationally controlled emissions)
- Measure: Emissions from gas, refrigerants, diesel, electricity, water and waste
- Reduce and eliminate: Continuous refinement to enhance operational efficiencies of buildings, 100% on-site and off-site renewable electricity procurement, electrification of assets (where feasible), transition to use of low Global Warming Potential refrigerants
Upfront Embodied Carbon
- Measure: Where feasible, measure emissions from construction materials and processes
- Reduce and eliminate: Adopt design and construction efficiencies that reduce project and asset carbon emissions, select low embodied carbon materials for construction projects, supply chain collaboration
Resilience
- Undertake climate risk reviews and asset adaptation plans addressing physical and transition risks
- Integrate adaptation measures at acquisition, redevelopment, and major capital works projects
- Grid transition readiness, such as demand-side flexibility programs and electric vehicle infrastructure in asset design
- Long-term renewable energy supply contracts to reduce cost and volatility exposure
- Sustainable finance frameworks contribute access to diverse debt markets
- Secure offsets that meet quality and cost criteria
Key Achievements
- Corporate operations: Carbon neutral 2011-2024 with 2025 certification in review
- Building operations: All operationally controlled base buildings carbon neutral since end 2024
- Embodied carbon in developments: Australia's first certified "Climate Active" carbon neutral development delivered in 2022 and GWOF's 51 Flinders office development due for completion in 2026
Resource Allocation and Capital Deployment
Climate-related matters are considered in our investment proposal assessments. We incorporate updated climate modelling and resilience standards into redevelopment cycles and day-to-day operations. We acknowledge and consider customer demand for low-carbon, energy efficient buildings. We monitor climate-related risks and opportunities which may impact insurance availability and premiums, and debt/pricing terms.
Decarbonisation Efforts
GPT is focused on five key areas:
- Energy efficiency: Monitor energy consumption, optimise building systems, establish site-specific goals
- On-site solar photovoltaics: Installed on GPT-owned assets, mostly in Retail and Logistics assets
- Offsite renewable electricity: Central to our approach, including renewable base building electricity contracts
- Electrification: Upgrading heating systems at lifecycle and development opportunities
- Low GWP refrigerants: Targeting use of low global warming potential refrigerants in HVAC systems
Strategic response to climate risks and opportunities
This year marks a significant milestone in the evolution of QBE's climate strategy. Building on the foundations established through our actions to date, we developed our first Climate Transition Plan. This plan outlines our ambition to support the transition to a net-zero economy by taking action in our underwriting and investment portfolios, and to achieve net-zero emissions across our own operations by 2030.
During the year, the Board reviewed and approved QBE's Climate Transition Plan, including QBE's climate ambition and strategies across investments, operations and supply chain, and underwriting. In doing so, the Board considered trade-offs relating to feasibility, timing and potential financial impacts, recognising the need to balance climate objectives with commercial, regulatory and operational considerations, whilst continuing to support QBE's customers.
Portfolio optimisation
Following the exit of underperforming property portfolios and recalibration of retained property lines, QBE has experienced catastrophe losses at or below its established allowances in recent years.
Monitoring and review
The Board also received quarterly updates on progress against the metrics and targets in the Sustainability Scorecard, and approved the 2030 Sustainability Scorecard which included the targets forming part of the Transition Plan.
Strategy and decision-making
Strategic response overview
Delivering on our climate commitments is central to strengthening resilience and economic performance as we work to become the most valued metals and mining company. Our Climate Action Plan (CAP) remains at the heart of this mission, guiding our strategy to grow production of materials essential for the energy transition, decarbonise our operations, and support our partners in reducing value chain emissions.
Resource allocation and capital deployment
Total investment framework: In the medium term, we will invest up to $10 billion (in real terms) annually in sustaining, replacement and growth capital to ensure the continued supply of materials, including those that are essential to the energy transition.
Decarbonisation capital guidance: Our updated capital expenditure forecast is now $1-2 billion to 2030, a reduction from the previously issued range of $5–6 billion. This includes $0.6 billion in the period 2025-2027. We expect pre-2030 abatement projects predominantly to be delivered through low-capital solutions and proven technologies.
2025 spend: Our total decarbonisation spend for 2025 was $612 million (2024: $589 million). This included capital expenditure, investments and carbon credits of $182 million (2024: $283 million), and operational expenditure of $430 million (2024: $306 million).
Mitigation and adaptation efforts
Scope 1 and 2 abatement: Our decarbonisation efforts are focused on:
- Reducing operational emissions from electricity use by deploying renewable electricity solutions
- Fuel consumption by transitioning mining operations away from diesel
- Reducing process heat emissions in smelting and refining through energy efficiency improvements and emerging technologies
Technology development: We are collaborating with industry and government partners on pilot and demonstration technologies expected to deliver significant emissions reductions beyond 2030, including ELYSIS™, hydrogen calcination, battery electric haul trucks and double digestion.
Partnership approach: Our strategy leverages partnerships with energy developers, enabling a low-capex pathway through long-term PPAs. These commitments are expected to underwrite up to $8.5 billion in competitive greenfield energy projects, subject to final approvals and successful delivery.
Progress on plans
Pacific Aluminium Operations: We have contracted 2.7 GW of renewable generation and 540 MW of battery storage through power purchase agreements (PPAs). Once operational, the contracted projects could supply approximately 80% of BSL's annual average electricity demand, enabling a projected 70% reduction in the smelter's Scope 1 and 2 emissions.
Renewable energy achievements: Meaningful progress was achieved across our renewable energy portfolio in 2025, including construction commencement at Richards Bay Minerals Overberg wind project (230 MW), completion of Bolobedu solar project (130 MW), and commercial operations at Monte Cristo wind project (78.5 MW).
Technology milestones: The ELYSIS™ joint venture achieved a key milestone with more than one year of inert anode life in testing at the 100 kA cell in Arvida. We completed construction and commissioning of Évolys™, our joint venture with Aymium to produce biocarbon from biomass residues.
Business model changes
We are transitioning delivery of decarbonisation projects to our product groups and assets, reflecting a move to embed delivery more directly within our operational structure while maintaining central oversight for emissions reductions tracking and investment strategy review.
Supporting a just transition
Our just transition strategy focuses on optimising socio-economic opportunities associated with decarbonising our assets while safeguarding the rights of workers and communities. We have embedded just transition principles into our decarbonisation strategy to minimise impacts and optimise socio-economic opportunities.
Santos' strategy leverages our diversified and extensive resource base through three horizons: backfill, sustain and decarbonise, build and grow, and low carbon fuels. The addition of the build and grow horizon reflects our ambition to unlock greater value for shareholders in-line with our disciplined CAF. Decarbonisation remains central to our business and has been embedded in the first horizon of our strategy. We are actively investing in carbon reduction initiatives across our operations, including CCS to provide large-scale emissions reduction services for Santos and, in the future, potentially third party customers. These initiatives have the potential to create new revenue streams and position Santos as a leader in climate resilience. The build and grow pillar reflects our focus on disciplined development of upstream resources, leveraging and growing our infrastructure position, and potentially establishing a commercial third-party carbon management services business. Alongside this, we aim to develop new low carbon fuels, as energy markets and customer demand evolve. These initiatives complement our decarbonisation strategy and create new potential growth opportunities for Santos in a lower carbon future.
2025 progress • Successful delivery and start-up of Barossa LNG project • Continued operations at Moomba CCS, receiving 907,872 ACCUs • Completed Bayu-Undan CCS front-end engineering and design (FEED) • Advanced Pikka phase 1 project, on track for first oil in late Q1 2026 • Santos completed early engineering studies on a synthetic gas facility in the Cooper Basin with Japanese Gas Utilities Tokyo Gas, Osaka Gas and Toho Gas
Strategy and decision-making
The Group's strategy includes being a responsible and sustainable business, with consideration of CRROs embedded into planning and decision‑making processes.
Response to climate risks and opportunities
Mitigation and management measures are integrated into operations with relevant subject matter experts employed within relevant operational and support functions.
Climate-related mitigation and adaptation efforts
Physical risk mitigation strategies:
- 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
- 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
Transition risk mitigation strategies:
- 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
Opportunity implementation strategies:
- In 2025, Westfield Kotara commenced a trial of a new EV operating model to inform future opportunities
- 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
Resource allocation and capital deployment
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.
Progress on plans previously disclosed
The Group has a target to achieve net zero (scope 1 and 2) emissions across wholly-owned Westfield destinations by 2030 and an interim target to achieve a 50% reduction in scope 1 and 2 emissions by 2025 across wholly-owned destinations.
In 2025, the Group achieved a 57% reduction in scope 1 and 2 emissions across wholly-owned destinations, exceeding the Group's interim target to achieve a 50% reduction in scope 1 and 2 emissions for wholly-owned Westfield destinations since 2014.
The Group is on track to achieve its net zero target by 2030, with agreements in place to deliver net zero scope 2 emissions for all wholly-owned Westfield destinations.
Strategic response to climate-related risks and opportunities
Resource allocation and capital deployment
In 2025, we invested $20 million in a series of capital projects at the Geelong Refinery aimed at reducing emissions where commercially viable. These projects are expected to deliver an estimated annual reduction of 29 kt Scope 1 emissions.
We are actively seeking Government grants to maximise our capital investment for energy transition projects.
Climate-related mitigation and adaptation efforts
Emissions reduction at Geelong Refinery: We are implementing various measures to reduce our operating emissions at the Geelong Refinery, including establishing electrification projects and improving the energy efficiency of our existing equipment and processes. We review and prioritise these decarbonisation initiatives based on their technical and financial viability.
Compliance with Safeguard Mechanism: We currently engage in the surrendering of Australia Carbon Credit Units (ACCUs) to meet our obligations under the SGM.
Business model changes and diversification
Low-carbon liquid fuels development: Our New Energies and Future Fuels teams assess emerging technologies and alternative fuel options to continue to develop our product portfolio beyond traditional fuels and position the Group to participate in new markets, including the manufacture and supply of LCLFs, and advancing our electrification solutions.
In 2025, we established new supply chains for LCLFs across Australia utilising our existing infrastructure and piloted LCLF manufacture at the Geelong Refinery. These initiatives demonstrated our ability to pivot our existing infrastructure to respond to future demand for drop in fuel replacements.
We also opened Australia's first renewable hydrogen refuelling station, which also includes fast-charging for commercial EVs. These initiatives bring various technologies together to help reduce the carbon footprint of medium and heavy vehicle transport in Australia and prove potential new energies and income streams for the Group.
Retail diversification: We continue to advance and learn from our EV charging offering across our retail network while diversifying our retail model towards convenience to materially grow this segment and mitigate reliance on gasoline sales.
Monitoring and stakeholder engagement
We undertake regular monitoring, stakeholder engagement and policy advocacy in relation to potential future climate related policy and regulation.
We actively monitor climate policy developments and participate in consultation processes to understand potential impacts and opportunities and work closely with our commercial customers to understand their strategic and operational plans, helping us validate fuel‑demand forecasts and develop solutions that meet their needs.
Our Commercial Team continue to work closely with our key customers to understand their energy transition needs so we can support and respond to changes.
How Woodside is responding to climate-related risks and opportunities
Woodside's climate strategy is integrated throughout our company strategy: our aspiration to thrive through the energy transition by developing a low-cost, lower-carbon, profitable, resilient and diversified portfolio.
Our climate strategy contains two key elements: • reducing our net equity Scope 1 and 2 GHG emissions; and • investing in products and services for the energy transition.
Reducing net equity Scope 1 and 2 GHG emissions
Reducing our net equity Scope 1 and 2 GHG emissions is supported by three levers: avoiding emissions in design; reducing emissions in operations; and offsetting the remainder with carbon credits.
Efficient operations
The emissions efficiency of Woodside's current operations, measured as Scope 1 and 2 GHG emissions per unit of production (kg CO2‑e/boe) compares well to the global average efficiency data provided by the IEA. Woodside's 2025 actual performance was 27% better (or, 12.4 kg CO2‑e/boe) than the benchmark comparator.
Asset decarbonisation plans
Our operated production assets identify opportunities to reduce GHG emissions via asset decarbonisation plans. The main opportunities include energy efficiency and process optimisation measures, flaring and fugitive methane reduction, and electrification such as the use of renewables and batteries. As these opportunities are studied and matured, and if they are safe, technically viable and have an abatement cost of <US$80/t CO2-e they are considered for inclusion into business plans. At the end of 2025, projects which are expected to deliver approximately 50% of the GHG emissions reduction benefits of currently identified opportunities over the remaining facility life have commenced.
Focus on methane
Management of methane emissions receives particular focus within our asset decarbonisation plans. For example, when we assess methane emissions reduction opportunities, we multiply our internal cost of carbon of US$80/t CO2-e (real terms 2024) by 84 representing the higher global warming potential of methane in the near-term. This results in an effective price for methane of US$6,720/t emitted.
In 2024, Woodside joined the OGMP 2.0 which is the flagship oil and gas reporting and mitigation programme of the UNEP. During 2025, Woodside submitted its implementation plan to UNEP which has confirmed it meets the requirements as a "Gold Standard Pathway". As part of the plan, we have also set a five year (to 2029) intensity target to maintain methane emissions intensity below 0.2% of production by volume at operated assets.
Carbon credits
Woodside uses carbon credits to offset gross equity Scope 1 and 2 GHG emissions that are above our net GHG emissions reduction target trajectory and to meet regulatory requirements in a given year. We prioritise abatement at facilities before we use carbon credits as offsets.
As at 31 December 2025, Woodside continues to manage a portfolio of more than 20 million carbon credits sourced from projects registered under established carbon crediting schemes, including the ACCU Scheme, Verra, Gold Standard and the Climate Action Reserve.
Investing in products and services for the energy transition
Investing in products and services for the energy transition is supported by three levers: assessing investments for their resilience to the energy transition; diversifying our products and services; and supporting our customers and suppliers to reduce their emissions.
Capital deployment and resource allocation
Cumulative expenditure against our Scope 3 investment target reached $2.6 billion at the end of 2025, up from $2.46 billion at the end of 2024. This is due to expenditure on Neosmelt, Beaumont New Ammonia Phase 2 assessment, and select CCS opportunities in Asia Pacific.
New energy products development
H2Perth: H2Perth is a proposed commercial scale facility to produce liquid hydrogen from gas reforming with CCS; initially for export. H2Perth is to be located in Perth, Western Australia. In 2025, Woodside commenced pre-front end engineering and design (pre-FEED) activities for an initial phase of the project.
NeoSmelt: The NeoSmelt Project is a proposed direct reduced iron electric smelting furnace pilot plant to be located in Perth, Western Australia. In 2025, Woodside joined BHP, Rio Tinto, BlueScope and Mitsui Iron Ore Developments as part of the NeoSmelt Project and as preferred energy supplier. The project has commenced front-end engineering design (FEED) studies.
Carbon solutions: Woodside is evaluating lower-carbon services including carbon capture and storage (CCS), carbon capture and utilisation (CCU), and investing in carbon credits to enable our base business, help our customers decarbonise, and deliver future value to shareholders.
Progress on plans previously disclosed
In 2025, this commitment was exemplified by significant achievements: record production from our existing assets; a final investment decision for Louisiana LNG; and first production from Beaumont New Ammonia. We also delivered our 2025 net equity Scope 1 and 2 GHG emissions reduction target.
Woodside delivered its 2025 net equity Scope 1 and 2 GHG emissions reduction target. Achievement of the target reflected a combination of underlying emissions performance at our facilities and the use of carbon credits. These net equity GHG emissions were 15% below the starting base for the 12‑month period ending 31 December 2025.
We recognise that society is moving towards a lower carbon economy, and this presents a significant global challenge. Yancoal is evolving our business model to align with this transition.
Our capital allocation processes incorporate an assessment of factors such as coal demand outlook, regulatory developments and carbon cost implications.
Operational emissions remain a key focus area within the Yancoal P4 Change 4 Tomorrow Sustainability Strategy. We continue to manage Scope 1 emissions through operational controls, monitoring of fugitive emissions, and efficiency measures associated with fuel and energy use.
One of our primary environmental challenges involves addressing fugitive emissions. In response to this critical issue, we have embarked on several investigations across our operations to identify technologies and processes that can reduce fugitive emissions.
We are also focused on diesel emissions, another significant contributor to our operational carbon footprint.
Supplier engagement also forms part of our approach. Sustainability workshops with key suppliers continue to explore emissions reduction opportunities and emerging technologies. Yancoal also remains a participant in Caterpillar's Pathways to Sustainability program, which provides industry insights on potential future energy transition pathways.
Carbon market data and forward-looking pricing insights continue to inform long‑term planning. In 2025, Yancoal's adopted carbon price prediction was informed by data from a leading carbon pricing platform and considered within Life‑of‑Mine Planning models. This information, including current ACCU market prices, forward curves, and high/mid/low pricing scenarios, supported carbon cost considerations and was applied in project and cost evaluation processes.
We also estimate the GHG emissions embedded in our proven coal reserves for internal evaluation, recognising the environmental context and its implications for long‑term resource management.
During 2025, we enhanced this process through the use of a carbon‑pricing analytics platform, which provides market data and forward‑looking insights to support Life of Mine planning and internal project evaluation. This information is considered alongside scenario‑based price projections, including those that incorporate a carbon price.
Smart Mining Initiatives
Smart Mining initiatives involve the integration of innovative and advanced technologies to enhance operational efficiency, safety and sustainability, as well as potentially lowering our GHG emissions profile.
Lifecycle Optimisation
Following the exploration of AI initiatives in fixed plant infrastructure during 2025 to enhance efficiency, reduce unplanned downtime, and improve predictive maintenance outcomes, a pilot was approved for implementation in 2026.
Overall, these improvements may enable the same material movement using fewer trucks, leading to reductions in diesel generated GHG emissions and lower costs.