Strategic report
Governance
Financial statements
79 OCU Group Annual report and financial statements 2026
Reporting and performance continued TCFD report
Scenario analysis and resilience continued Scope of FY26 expanded scenario analysis Area assessed Why it matters to OCU
Scenarios used The same three scenarios support year-on-year comparability across orderly and disorderly transition and differing physical impacts.
Financial linkage considered
Market opportunity
Growth in grid reinforcement, renewables, BESS, solar, low-carbon heat, water resilience and climate adaptation infrastructure across the UK, Australia and New Zealand.
Revenue growth, order book, bid conversion, margin quality and geographic diversification. Gross margin, working capital, claims, liquidated damages exposure, project provisions and cash conversion. Capex, depreciation, operating costs, residual value, fuel and energy spend, asset utilisation and tender competitiveness. Productivity, health and safety costs, delay days, standby costs, insurance, logistics, site access and business continuity. Access to frameworks, client retention, cost of capital, employee attraction, compliance and enterprise value.
Scenario
Transition pathway
Physical climate pathway OCU interpretation
Current policies – around 3ºC
Climate policy progresses slowly and unevenly. Decarbonisation still occurs, but with weaker near-term incentives and less co-ordinated market signals. Policy action is delayed, then accelerates sharply. Markets may face greater volatility, delivery bottlenecks and cost pressure.
Higher long-term physical climate impacts, including more
Lower near-term transition opportunity than net zero, but higher physical climate disruption and greater need for adaptation, particularly in Australia and outdoor infrastructure works. Strong medium-term opportunity, but with higher execution risk, skills constraints, supply chain pressure and potential margin volatility. Highest strategic opportunity due to rapid investment in power, renewables, BESS, solar, EV infrastructure, water resilience and low-carbon heat.
frequent and severe weather disruption.
Contract and margin risk Exposure to client specification changes, inflation, severe weather disruption, program delay, supply chain constraints and recoverability of climate-related costs. Technology transition risk Cost, availability and operational suitability of lower-carbon fleet, plant, specialist equipment, charging infrastructure and temporary site power.
Delayed transition – under 2ºC
Physical risk increases in the near and medium term before longer-term transition benefits are realised. Long-term physical impacts are reduced compared with increased warming pathways, but acute weather risks remain.
Physical climate risk
Increased exposure to heat, bushfire, smoke, heavy rainfall, flooding, storms, cyclones and water stress, particularly through outdoor and remote works in Australia and New Zealand. Investor, lender, client, employee and regulator expectations for credible climate strategy, transparent data and progress against targets.
Net zero – around 1.5ºC Early, orderly and sustained policy,
market and technology action accelerates decarbonisation.
Reputation, disclosure and stakeholder expectations
What has changed since the previous assessment • Market opportunity is broader across OCU’s four end markets and now includes ANZ renewable generation, utility-scale solar, storage, connections and energy infrastructure. • Physical risk is more material because ANZ includes outdoor and remote work exposed to heat, smoke, rain, flooding, storms, water constraints and logistics disruption. • Technology risk now covers vans, heavy vehicles, drilling and piling plant, specialist equipment, site welfare, charging and remote-site power. • Contract risk has increased where climate assumptions, weather, specification and cost recovery affect large or remote projects. • Valmech adds heat network and mechanical engineering capability in the UK.
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