Sydney Airport Stapled Securities : 2022 Sustainability Report

GRI

This report is prepared with reference to the Global Reporting Initiative Standards

This report aligns to the relevant SASB Standards

Supporter of the Task Force on Climate-related Financial Disclosures and committed to disclosure under its reporting framework

Since 2017, Sydney Airport has been committed to the UN Global Compact corporate responsibility initiative and its principles in the areas of human rights, labour, the environment, and anti-corruption

We track and measure community investments in line with the framework developed by Business for Societal Impact1

The foundation of the airport's approach to sustainability rests on three strategic pillars; Responsible Business, Planning for the Future, and Supporting Our People and Communities. These guide our investment and activity and inform our sustainability targets. This is the 1st year of the airport's ambitious 2022- 2024 targets, and we continue to make strong inroads in achieving them, as outlined in this report.

Responsible business

We take responsible business seriously and we are pleased to report that Sydney Airport's sustainability leadership continues to be recognised globally. Sustainalytics, an international leader in ESG ratings, ranked Sydney Airport as the top-performing airport globally in the airports industry sub- sector in 2022. This is a testament

to our ongoing commitment to responsible business practices and sustainability.

The airport's leadership position is underpinned by a commitment to acting on climate change, and we are strongly focused on reducing our Scope 1 and 2 carbon emissions. This year we undertook several lighting upgrades across our terminals and car parks to reduce our Scope 2 emissions. We are also incorporating the more capital intensive measures of our Net Zero 2030 Roadmap into the Corporate Planning process, which will enable

us to set annual targets and develop action plans to achieve our emissions reduction goals. In addition to reducing emissions, we are actively working to restore biodiversity around the airport, including the Sydney Airport Wetland restoration works, where we planted over 10,000 trees during 2022.

In line with our commitment to maintain our leadership position on sustainability, we engaged with the Department of Infrastructure regarding the form and structure of the proposed Australian Jet Zero Council. The airport's engagement on this initiative is a testament to

our commitment to help influence a reduction in aviation emissions and the transition to Sustainable Aviation Fuels (SAF).

A core element of being a responsible business is making sure everyone goes home safe and well every day. Sydney Airport's new Health and Safety Strategy 2022-2024 and refreshed Health and Wellbeing Program reflect our commitment to promoting the safety and wellbeing of our people.

We recognise that the post-pandemic world presents new challenges, and we are facing into that challenge by focusing on contractor management and delivering several initiatives to promote safety.

100 per cent of the airport's people leaders completed at least one high- quality health, safety, and wellbeing engagement per quarter in 2022, exceeding our target of 95 per cent. We will continue to prioritise the safety and wellbeing of our people as we move forward.

As part of Sydney Airport's responsible business practices, we are committed to addressing modern slavery risks and protecting our operations from cyber threats. To this end, we have updated our modern slavery statement and uplifted our cyber threat detection and response capability by onboarding a new partner. This has enabled us to ensure that detected events can be responded to on a 24/7 basis.

More detail on Sydney Airport's modern slavery risk identification and management can be found in our 2022 Modern Slavery Statement, available on our website.

Planning for the future

Looking ahead, we are committed to planning for the future and working to achieve our sustainability goals.

This year the airport's climate change scenarios were updated, a process which helped us gain further insights into Sydney Airport's climate change risks and opportunities over the medium to longer term. We also completed the second phase of a study to understand flood risks around the airport. This included flood mapping animations under different climate scenarios, a flood risk management and resilience plan, a flood planning development framework, and detailed modelling to quantify the tidal and storm surge impacts over a 100-

year period.

You can read more about the airport's climate resilience planning in our 2022 Response to the recommendations of the Taskforce for Climate Related Financial Disclosures on our website.

In terms of the immediate future, the Federal Government's review of the Sydney Airport Demand Management Scheme presents a once in a generation opportunity to enhance the efficiency of Sydney's airspace, and Sydney Airport has been a constructive contributor to this review. There are a range of existing technologies which, if implemented, would improve airspace efficiency, reduce aircraft fuel burn and carbon emissions, and deliver improved noise outcomes for local residents.

We will continue to work with the Federal Government and advocate for technologies that will have a positive impact on the environment, and the quality of life of our local community.

Finally, Sydney Airport is proud to have worked with the NSW Government as they achieved significant milestones on the Sydney Gateway project, with the project passing the halfway point in 2022. When it opens in late 2024, the Sydney Gateway will transform access to Sydney Airport, providing traffic light-free access from the Blue Mountains to the terminals.

Supporting our people and communities

At Sydney Airport, we understand the importance of supporting our people and communities. We are proud to report that our employee engagement score, at 75%, is above pre-pandemic levels, and we are closing in on our gender balance target.

The airport was listed as one of the first 70 organisations in Australia to become a certified Family Inclusive Workplace™. This achievement demonstrates our commitment to embedding policies and practices that create a family inclusive workplace culture at Sydney Airport.

In 2022, Sydney Airport was ranked in the Equileap Top 100 companies for gender equality globally this year. We believe in creating an inclusive workplace that values diversity, and we will continue to work towards gender balance at all levels of our organisation.

Sydney Airport's commitment to the community is an essential part of its sustainability strategy, and we are proud to report that our community investment contribution almost doubled compared to 2021. The airport has been part of the social and economic fabric of Sydney for more than 100 years and we will continue to prioritise local community investment in our sustainability strategy.

We also recognise the importance of supporting Indigenous enterprise and service providers. Our T1 international terminal arrivals forecourt project is one example of our commitment to working with Indigenous partners to deliver an outcome that all Sydneysiders can be proud of. The project established an ongoing engagement with the local community and not only provided opportunity for Indigenous work pathways during construction, but also throughout the maintenance period.

Continuing our leadership

As the airport edges closer to 'business as usual', we are committed to upholding our sustainability commitments and making a positive impact on our industry, our community, and our planet.

We are proud to share Sydney Airport's achievements and ongoing initiatives with you and look forward to continuing to work towards a more sustainable future.

David Gonski

Chair

Geoff Culbert

Chief Executive Officer