Climate change and decarbonisation

Climate change poses a threat to the economy, our health, our communities and our future. Downer’s commitments are aligned with a 1.5°C pathway and support the transition to net zero emissions by 2050.

Downer is investigating solutions to reduce our energy consumption and greenhouse gas (GHG) emissions, in an economically efficient manner. Efforts are also underway to explore strategies that strengthen the resilience of assets and the broader portfolio to climate-related impacts. To support progress in this area, various initiatives are being developed to lower energy use and GHG emissions across operations and activities.

Downer aims to consider the risks and opportunities related to climate change as part of its strategic planning and business management processes. Starting in 2024 we have been disclosing climate-related information in accordance with the Aotearoa New Zealand Climate Standards (NZ CS). Our most recent climate statement is integrated into our Annual Report 2025.

Targets

Downer supports the science on climate change and is committed to taking action to decarbonise its operations to help play its part in reducing global temperature rise.

Downer has set a near-term Scope 1 and 2 GHG emissions reduction target, utilising the Science Based Targets Initiative (SBTi) Corporate Near-Term Target Setting Tool, and a net zero Scope 1 and 2 GHG emissions reduction target, utilising the SBTi Corporate Net-Zero Tool.

Downer’s near-term Scope 1 and 2 GHG emissions commitments are aligned with a 1.5°C pathway and support the transition to net zero emissions by 2050.

Downer’s GHG emissions reduction targets are:

50% reduction

by 2032 across absolute Scope 1 and 2 emissions against a 2020 baseline

Net zero by 2050

across Scope 1 and 2 emissions against a 2020 baseline

Climate governance

Downer’s corporate governance framework provides the platform for the identification and management of key risks, including those relating to environment and climate, across the Group.

The Downer EDI Ltd Board is the body with oversight of climate-related risks and opportunities across Downer. The Board is responsible for the approval of Downer’s climate strategy, elements of which are integrated into Downer’s overall strategy. The Board is also responsible for approving Downer’s climate targets, comprising of its near-term and long-term emissions reduction targets, and its disclosures.

The Board exercises oversight over climate-related risks and opportunities through its various Board committees and reporting from management. These committees include:

• Downer’s Executive also reports climate-related information to the Board in monthly reporting, including key considerations that relate to monitoring climate-related risks and opportunities.

For detailed information on Downer’s Climate Governance, please refer to the Climate Statement, within Downer’s Annual Report 2025.

Climate risks and scenario analysis

A core focus of Downer’s strategy is to capture opportunities to help our customers deal with the energy transition and decarbonisation.

Climate change exposes our business, customers and communities to a range of acute and chronic physical risks, and exposes society and Downer to transition risks. It also presents opportunities to develop climate adaptation and mitigation services, as well as low emissions products and services.

Downer conducted scenario analysis to identify these climate-related risks and opportunities and has considered them in testing the viability of Downer’s strategy, as well as impacts on the execution of its strategy.

Downer’s ongoing processes for identifying and assessing climate-related risks occur in accordance with our overarching risk management framework across our entire value chain.
More detailed description of the climate-related risks & opportunities management, as well as the outcomes of the scenario analysis, can be found in the Climate Statement, within Downer’s Annual Report 2025 Annual Report 2025.

Local commitment and industry participation

In Australia and New Zealand, we participate in communities of knowledge to ensure that our climate and sustainability efforts are purposeful and aligned to national and international best practice and approaches. Examples of external stakeholders that Downer engages with are:

• The New Zealand Climate Leaders Coalitions, where we join a community of practice to help New Zealand to transition to a low emissions economy that will create a positive future legacy.
• The Business Council for Sustainable Development Australia (BCSD Australia) and the Sustainable Business Council of New Zealand, the organisations with businesses and non-governmental bodies working together to accelerate the transition to a sustainable world by aligning with the Sustainable Development Goals (SDGs) and acting on climate change.
• Professional communities, such as the Green Building Council and the Infrastructure Sustainability Council, that guide and promote sustainable practices in the construction and infrastructure sectors, aiming to ensure that projects deliver meaningful social, cultural, environmental, and economic benefits.

For the latest climate-related information, please refer to the Downer’s Climate Statement within the Annual Report 2025.