Company disclosures (5)
Current financial effects (2025 reporting period)
Net catastrophe claims of $751 million were below the Group's allowance of $1,160 million in 2025. Net catastrophe claims included $715 million attributable to climate-related natural events, such as the Californian Wildfires, Hurricane Melissa and a series of storms and floods in Australia, including Cyclone Alfred.
The modelled aggregate net annual average loss (AAL) for climate-related perils for 2026 is $654 million and represents approximately 5% of the Group's 2026 plan net claims.
Current financial effects
Capital expenditure for decarbonisation
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).
Carbon credits for compliance
For 2025, we expect to retire approximately 1.17 million ACCUs to meet our compliance obligations under the Australian Safeguard Mechanism. We retired approximately 1.01 million Australian Carbon Credit Units (ACCUs) to meet our 2024 Safeguard Mechanism compliance obligations.
Closure provisions
At the end of 2025, closure provisions on our balance sheet totalled $17.8 billion (2024: $15.7 billion). In 2025, we met our guidance provided to the market in 2024, spending ~$1 billion on closure activities as we progressively rehabilitate our operations and progress work at Argyle, Ranger, the Gove alumina refinery and legacy sites.
Energy transition investment
We are investing $150 million to create a Centre for Future Materials led by Imperial College London to find innovative ways to provide the materials the world needs for the energy transition.
Traditional Owner partnerships
We are continuing to review our contracting strategy to focus on work awarded to Traditional Owner businesses, spending A$47.1 million in 2025 (2024: A$44.9 million) at the Argyle rehabilitation project.
Nature-based solutions investment
We have enabled more than 500,000 hectares of high-integrity projects through our nature-based solutions investments in 2025.
Current financial effects
Climate-related risks
During the current reporting period there was no material impact associated with these risks 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.
Rainfall, hailstorms and flooding events did not have a material impact on the Group's financial position, financial performance or cash flows in 2025.
Bushfire did not have a material impact on the Group's financial position, financial performance or cash flows in 2025.
Policy and regulatory change - There was no material impact on the Group's financial position, financial performance or cash flows in 2025. There is no anticipated material adjustment to the 2026 financial results from this risk based on current information.
Stakeholder expectations - There was no material impact on the Group's financial position, financial performance or cash flows in 2025.
Climate-related opportunities
During the current reporting period there was no material impact associated with these opportunities on the Group's financial position, financial performance or cash flows.
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 by the Group to be commercially sensitive. There is no expectation of a significant material adjustment to the 2026 financial results arising from this opportunity, based on current information.
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 expectation of a significant material adjustment to the 2026 financial results arising from this opportunity, based on current information.
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
- $0.2 million of capital towards the implementation of the climate-related opportunities
Financial statement line items potentially affected
Based on the Group's assessment, the financial statement line items that may be affected by climate-related risks and opportunities include:
- 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
Current financial effects for reporting period 2025
Safeguard Mechanism compliance costs
Amount: The Group incurred net compliance costs under the SGM in FY2025 amounting to $3.5 million.
Climate-related risk: Exposure to climate related government regulations that impose an additional cost of carbon.
Context: The Geelong Refinery currently holds Trade-Exposed Baseline-Adjusted (TEBA) status under the SGM, which reduced our cost exposure in 2025. While the current financial impact of the SGM is not considered material to the Group's financial statements, it is the risk of increasingly demanding climate-related regulations and policies that is regarded as a material anticipated risk for the Group.
Low-carbon liquid fuels opportunity
Amount: Current investment limited in scale and financial contributions still minor, $2.2 million in 2025.
Climate-related opportunity: Increased demand for low-carbon liquid fuels such as biodiesel, renewable diesel and sustainable aviation fuel.
Context: We have established supply chains for SAF, RD and Low Sulphur Marine Fuel (LSFO). However, supply of these products represents only a small share of our overall portfolio. Our supply, together with volumes identified through publicly available information, represented less than 0.05% of the total fuel market in Australia in 2025.
Traditional fuel market resilience
Climate-related risk: Reduction in demand for hydrocarbon fuel products did not have a material impact on the Group's financial position, performance and cash flows in 2025.
Context: In 2025 the Company continued to see resilience in the Australian fuel market. The Australian fuel pool grew from 58.1 billion litres in 2024 to 58.9 billion litres in 2025. Petrol and diesel vehicles remains at 94% of the market share, with the remaining made up of hybrids (4%) and EVs (2%).
Emissions reduction capital expenditure
Amount: In 2025, we invested $20 million in a series of capital projects at the Geelong Refinery aimed at reducing emissions where commercially viable.
Expected outcome: These projects are expected to deliver an estimated annual reduction of 29 kt Scope 1 emissions.
Current financial effects - 2025 reporting period
Impairments
H2OK Project: Woodside took a decision to exit the H2OK Project during 2025 due to ongoing challenges facing the lower-carbon hydrogen industry, including cost escalation and lower than anticipated hydrogen demand. Woodside recognised an impairment loss of $143 million pre-tax ($113 post-tax) in the profit and loss statement relating to the H2OK Project.
Capital expenditure on climate initiatives
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.
Carbon credits costs
As a result of strong underlying GHG emissions performance, our use of carbon credits to offset GHG emissions was 5% lower in 2025 than in 2024 – a 65 kt CO2‑e carbon credit reduction. In relation to our 2025 equity Scope 1 and 2 GHG emissions, 1,283 kt CO2‑e carbon credits were retired in order to meet our target of 5,334 kt CO2‑e net equity Scope 1 and 2 GHG emissions.
Operational improvements
In 2025, Woodside achieved record low flaring performance at KGP with flared quantities less than 10% of their peak in 2013. This performance reduced GHG emissions by 62 kt CO2‑e compared to the originally budgeted plan.