Strategic report
Governance
Financial statements
77 OCU Group Annual report and financial statements 2026
Reporting and performance continued TCFD report
Risk management Climate analysis
Type
Risk or opportunity
FY26 assessment
Transition – policy and regulatory risk
Changing climate, carbon, heat network, environmental and reporting requirements.
Broadened. The Group must manage this across UK, ANZ and India (IND) requirements. Elevated. International expansion increases investor and client expectations for consistent sustainability standards and reliable data. Elevated to a disclosed principal climate risk due to Australia and New Zealand operations and increased risk in the UK.
The FY26 assessment considered short-term (one to three years), medium-term (three to five years) and long-term (five to ten years) horizons under current policies, delayed transition and net zero scenarios.
Transition – reputation risk and opportunity
Stakeholder perception of climate action, disclosure quality and delivery of targets.
Scenario
Description
Estimated 2100 warming
Current policies
Continued high greenhouse gas emissions and slower policy-led transition. Delayed but more aggressive policy and market actions to limit warming. Immediate and sustained policy, market and technology action aligned with a 1.5ºC pathway.
Approximately 3ºC
Delayed transition
Under 2ºC
Physical – own operations Extreme heat, bushfire and smoke, heavy rainfall, flooding, storms, cyclone-related disruption and water stress affecting outdoor and remote works.
Net zero
Approximately 1.5ºC
These are aligned with the Network for Greening the Financial System (NGFS) using the integrated assessment models (IAMs) GCAM 6.0 and REMIND-MagPIE 3.3-4.8. Prior risks and opportunities remain relevant, although their scope and relative importance have changed with the Group’s growth.
Physical – supply chain Weather-related disruption to materials, equipment, logistics, labour and project schedules. Elevated. Especially for remote renewable energy projects and specialist plant. The assessment now includes physical climate risk from ANZ operations, monitored through Group governance and risk management.
Type
Risk or opportunity
FY26 assessment
Transition – market opportunity
Significant market growth from the energy transformation, water resilience, climate adaptation and low-carbon heat.
Elevated. New Australian renewable energy capabilities and Valmech's heat networks platform expand the addressable market. Continues to be material. Wider geography and weather-related delivery risk increase the need for clear contract terms, risk pricing and pass-through mechanisms. Broadened. Specialist piling, drilling and remote‑site equipment make plant decarbonisation and charging infrastructure more complex.
Principal climate-related risks and opportunities Topic Significance
Likelihood
Timeframe
Market opportunity from energy transformation, water resilience, climate adaptation and low-carbon heat Client specification, contract and cost‑recovery risk Technology risk from fleet, plant and specialist equipment decarbonisation Reputation risk and opportunity from climate action and disclosure quality Physical climate risk from Australia/New Zealand operations and wider outdoor works
Major
Very likely
Short to medium term
Transition – market and contract risk
Client specification, pricing, contract uncertainty and recoverability of climate‑related costs.
Moderate
Likely
Short to medium term
Moderate
Very likely
Medium term
Moderate
Very likely
Short term
Transition – technology risk
Unknowns and cost implications associated with decarbonising fleet, plant and specialist equipment.
Moderate
Very likely
Short term, increasing over medium and long term
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