Chairman's message

Towards a sustainable future

At an investor briefing last year, a Transurban security holder asked me to explain our commitment to sustainability. I gave an answer from the heart. I believe in sustainability because I am the father of twins, aged eight and I want them to grow up in a world that is worth living in.

It was an answer that seemed to satisfy the woman who asked it. But I could have gone on to give her an answer from the head as well. Here's what I would have said.

Like any business, Transurban has a responsibility to generate returns for the people who own it. Of course we have wider responsibilities to the communities we serve and to society as a whole. It is through our commitment to sustainability and ethical business practices that we reconcile these different responsibilities.

I will try to explain what I mean by examining three questions: What is sustainability? What does a sustainable company look like? And what is the business case for it at Transurban?

The most commonly accepted definition of sustainability is "development that meets the needs of the present without compromising the ability of future generations to meet their needs".

A sustainable company is one that runs its business in ways that avoid compromising that ability. A company that is committed to understanding its impacts on society and the environment and to enhancing them. A company that is honest and open in its governance, in its relationships with stakeholders and in the way it manages its impacts.

The business case at Transurban lies in the nature of our business. As a toll road operator, Transurban delivers infrastructure and services traditionally provided by the public sector. We charge for something that governments seemingly provide free of charge—or free at the point of use. That is one of the reasons our customers and the communities we serve expect high standards from us.

New road concessions are awarded by governments. And governments are acutely sensitive to what customers and communities say about the companies competing for those concessions. Sustainability makes good business sense because it helps us manage risks in our existing operations and makes us more competitive in winning new concessions.

Another way of thinking about sustainability at Transurban therefore is as a strategy to align our business with the long term interests of our stakeholders. Without their lasting support, we will not have a business.

David Ryan AO
Chairman

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