Climate Change
We recognise that climate change can affect our businesses through changes in environmental conditions, such as an increase in severe weather events, or through changes in the business environment due to the transition to a low carbon economy.
We recognise the mining industry has a critical role in helping the world transition to a more sustainable future.
We recognise climate change as both a risk and a strategic opportunity. Climate action is central to Perenti’s Sustainability Imperative, Valuing the environment and enabling the energy transition, and aligns with our Sustainability Priority of Enabling decarbonisation.
Electrification
The mining sector is critical for producing the minerals needed for a low carbon future, yet at the same time needs to reduce its contribution to atmospheric greenhouse gases.
We believe we must play our part to help decarbonise the industry while continuing to provide services that are essential for economic growth and provision of commodities that will enable decarbonisation. We are leading the way in decarbonising mines.
Enabling decarbonisation
As a mining services company, we are in a unique position to enable and accelerate decarbonisation across the mining value chain. Through technology-enabled solutions, operational innovation and collaborative partnerships, we aim to reduce our emissions and continue to support clients in reducing their emissions and improving their operational efficiency.
AASB S2 climate-related financial disclosures
Climate change presents both risks and opportunities for Perenti and the mining industry. As a global mining services provider, we recognise the potential impacts of physical climate risks, such as extreme heat, flooding and severe weather events, as well as the challenges and opportunities associated with the transition to a lower-carbon economy. Transparent and effective management of climate-related risks and opportunities is an important part of how we create long-term value for our stakeholders.
In FY26, Perenti prepared its first Climate-related Financial Disclosure in accordance with AASB S2 Climate-related Disclosures and Section 292A of the Corporations Act 2001. The disclosure addresses governance, strategy, risk management, and metrics and targets.
Governance
The Perenti Board has ultimate responsibility for oversight of climate-related risks and opportunities, including their integration into strategy, risk management and financial planning.
The Safety and Sustainability Committee oversees Perenti’s climate-related risks, strategies, targets, performance and disclosures. The Audit and Risk Committee oversees the effectiveness of the risk management framework and related controls and assurance. The People and Remuneration Committee oversees the skills and capabilities required by the Board.
The Managing Director and Chief Executive Officer is accountable for embedding climate considerations into Perenti’s strategy and priorities. The Chief Financial Officer oversees their integration into financial planning and reporting.
A Decarbonisation Steering Group, co-sponsored by our Chief Strategy Officer and Chief Financial Officer, is comprised of representatives from across the Company to provide oversight and support to our decarbonisation activities.
Strategy
Perenti assessed climate-related risks and opportunities that could reasonably be expected to affect its strategy, business model, value chain or financial performance.
Identified physical risks included disruption from extreme weather, flooding and extreme heat. Transition risks included an abrupt shift towards electrified/renewable mining operations, and changes to the cost of capital for emissions intensive activities. Opportunities included partnerships with technology providers, digital transition services, and early engagement with clients on decarbonisation priorities and low-emissions technology adoption.
Perenti assessed these matters over short, medium and long-term horizons using three climate scenarios. Financial modelling completed for two physical risks indicated that the worst-case annual impacts remained well below Perenti’s Group EBIT(A) materiality threshold. The identified risks did not materially affect Perenti’s financial position, financial performance or cash flows during FY26.
Risk Management
Perenti’s approach to climate-related risk is integrated into its risk management framework, which is aligned with ISO 31000 and supported by a Board-approved risk appetite statement and risk tolerances.
Climate-related risks and opportunities are identified using stakeholder engagement, operational information, historical climate events, incident reporting and scenario analysis. External inputs include regulatory developments, market trends, investor expectations, climate science, and information from industry bodies, equipment manufacturers and suppliers.
Risks are assessed using Perenti’s established risk management methodology. The assessment considers financial, operational, reputational and safety consequences, together with the likelihood of each risk occurring. Prioritisation also considers geographic and asset exposure, relevant time horizons, and scenario-analysis outcomes.
Climate-related risks are assessed and prioritised using the same methodology applied to other enterprise risks. The climate-related risk and opportunity register is reviewed and approved by the Group Executive Committee and the Board Safety and Sustainability Committee. Monitoring includes annual risk register reviews, audits, incident reporting and site-level monitoring.
Metrics and Targets
Perenti disclosed Scope 1 and Scope 2 greenhouse gas emissions during FY26. Scope 3 emissions were not disclosed as Perenti applied the transition relief available for its first AASB S2 reporting period. Perenti’s Scope 1 and Scope 2 emissions calculations were verified by an independent third party.
Perenti has a target to achieve net-zero Scope 1 and Scope 2 emissions by the end of FY30, measured against an FY22 baseline. An interim target was established to reduce gross Scope 1 and Scope 2 emissions by 40% by the end of FY26. Progress was significant but remained below the interim target.
DDH1 Group (DDH1) was not included in the FY22 baseline. Perenti is evaluating a revised baseline and target that incorporate DDH1 and additional emissions sources. Perenti did not use carbon credits or offsets to adjust its reported FY26 emissions.
Our emissions
It is important to differentiate and quantify our Scope 1, Scope 2 and Scope 3 emissions to enable us to prioritise our decarbonisation efforts. The three levels of the scope illustrate greenhouse gas emission sources within our operational footprint and value chain.
Since 2020 we have calculated and disclosed greenhouse gas emissions under our operational control. We are progressively calculating and disclosing our value chain greenhouse gas emissions. Please refer to our latest sustainability report for disclosure of our emissions.
Climate change position statement
We recognise that climate change demands urgent action. Climate change is one of the major issues of our time, requiring genuine leadership from all actors – government, civil society and the private sector.
Our Climate Change Position Statement outlines our recognition of the science of climate change and ongoing commitment to manage the risks and minimise the impacts and associated with a changing climate.
