Strategic report
Governance
Financial statements
78 OCU Group Annual report and financial statements 2026
Reporting and performance continued TCFD report
Principal climate-related risks and opportunities continued Market
• Bring acquired businesses into Group emissions data collection and reporting processes from date of control. • Apply Group sustainability, safety and ethical standards consistently across geographies. • Continue to improve climate disclosure quality by linking risks and opportunities to strategy, metrics, targets and financial planning. • Maintain regular engagement with clients, investors, lenders and employees on sustainability progress. Physical climate risk: Australia and wider operational resilience Risk: ANZ increases exposure to heat, bushfire, drought, heavy rain, flooding, storms, cyclones, transport disruption and power outages. These hazards can affect safety, productivity, access, equipment, program, supply chain, insurance and cost. Appropriate client and supplier terms mitigate potential financial exposure. Physical risk is relevant under all scenarios. Exposure is higher under current policies, while transition opportunity is greater under net zero; practical operational controls remain necessary in both. • Introduce climate hazard screening for Australian and New Zealand bids, site mobilisation and major project reviews. • Require heat, hydration, fatigue, bushfire, smoke, flood and storm controls in project‑specific health, safety and environment plans. • Use weather monitoring, early warning protocols and stop-work criteria for high‑risk conditions. • Review project schedules, contingency allowances and contract terms for weather‑related delay and disruption. • Assess business continuity, emergency response, insurance and supply chain resilience for high‑exposure regions. • Track weather-related incidents, near misses, lost time, delay days and cost impacts to support future scenario analysis and financial planning. Scenario analysis and resilience Scenario analysis tests the resilience of OCU’s strategy, operations and financial planning across possible climate outcomes. It informs risk management, opportunity assessment and action to protect long-term value. FY26 retained the previous three scenarios and time horizons but broadened the assessment beyond UK network growth and light commercial vehicle transition to include ANZ and Valmech. The assessment covers transition opportunity, technology, contracts, physical risk and stakeholder expectations in line with UK disclosure requirements.
Opportunity: Structural investment in decarbonisation, electrification, water security, climate resilience and low-carbon heat supports OCU’s end markets. ANZ adds integrated renewable energy delivery across electrical, civil, piling, geotechnical, mechanical and module-installation services. The enlarged capability base broadens OCU’s participation in long-duration infrastructure demand across the UK and ANZ. Risk: Transition growth can create contract and specification risk, including lower-carbon materials, resilience requirements, emissions data and weather commitments. Disciplined bidding and clear allocation of change remain important. • Embed climate and weather-risk assessment in bid review and project mobilisation. • Use contract mechanisms that allocate change, delay, weather and low-carbon specification risks appropriately. • Work with clients to trial and adopt lower‑carbon materials, plant and delivery methods where technically and commercially viable. • Integrate acquired businesses into Group commercial governance, pricing discipline and project controls. Technology Risk: Lower-carbon fleet, plant and specialist equipment must be technically and commercially viable. Remote ANZ sites add constraints around grid capacity, charging, range and duty cycles. OCU will use telematics, route planning, anti‑idling, lower-emission vehicles, alternative fuels, trials and supplier engagement, while maintaining safety and delivery resilience. • Maintain a technology roadmap for vans, HGVs, plant and specialist equipment across UK and international operations. • Use telematics and equipment utilisation data to identify assets suitable for lower-emission alternatives. • Assess charging and alternative fuel infrastructure as part of site mobilisation, particularly in remote Australian projects. • Review lease-versus-buy decisions to maintain flexibility as technology and residual values evolve. Reputation Risk and opportunity: Stakeholders expect credible climate governance, transparent emissions data, strong safety and responsible supply chains. Consistent performance can differentiate OCU; inconsistency would create risk. OCU is integrating acquired businesses into Group sustainability, safety, supply chain and climate-risk processes, supported by clear accountability and transparent disclosure.
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