Strategic report
Governance
Financial statements
82 OCU Group Annual report and financial statements 2026
Reporting and performance continued TCFD report
Scenario analysis and resilience continued Strategic resilience conclusion Scenario analysis indicates that OCU is resilient across all three pathways, with the strongest opportunity under orderly net zero. ANZ broadens renewable energy opportunity and physical climate exposure; Valmech strengthens UK heat network and mechanical engineering capability. The Board’s assessment remains positive, subject to continued focus on integration, contracts, safety, adaptation and data quality.
Metrics and targets Climate metrics and targets form part of the sustainability strategy and action plan, with quarterly progress reported by the ESG Taskforce to the ESG Committee. Current priorities are complete data, robust acquisition baselines and stronger links between climate, operational and financial decisions.
Science Based Targets initiative (SBTi) OCU submitted greenhouse gas reduction targets to the SBTi and is progressing through validation.
Subject to validation, the submitted targets are:
Integrate acquisitions into Group climate risk, emissions reporting, safety and governance processes.
Net-zero target OCU Group commits to achieve net-zero greenhouse gas emissions across the value chain by FY50.
Develop Australia and New Zealand physical climate risk metrics, including heat-related incidents, weather delay days and climate-related operational disruption. Expand scenario analysis from selected deep dives to a repeatable annual process covering market opportunity, technology transition, physical climate risk and contract recoverability. Strengthen climate-related contract review, including weather, inflation, legislative change, specification change and force majeure provisions. Continue to invest in lower-carbon fleet, plant, charging infrastructure and site energy solutions where technology is operationally viable. Improve investor-facing data quality by confirming acquisition boundary treatment, emissions recalculation requirements and climate-related KPIs. Use the Group’s expanded capabilities to capture disciplined growth in grid reinforcement, renewables, solar, BESS, water resilience, climate adaptation and heat networks. OCU is well positioned for a lower-carbon transition. Growth in transition-aligned markets is balanced with practical adaptation to protect people, delivery and long-term value.
Near-term target OCU Group commits to reduce absolute Scope 1 and 2 GHG emissions by 42.0% by FY35 from a FY25 base year. OCU Group Limited also commits to reduce absolute Scope 3 GHG emissions from purchased goods and services, fuel and energy-related activities, upstream transportation and distribution, waste generated in operations, business travel, employee commuting and upstream leased assets by 28.85% within the same timeframe. Long-term target OCU Group commits to reduce absolute Scope 1 and 2 GHG emissions by 90.0% by FY50 from a FY25 base year. OCU Group Limited also commits to reduce absolute Scope 3 GHG emissions by 90.0% within the same timeframe.
These targets have been submitted to the SBTi for validation and are not yet validated by the initiative.
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