Sydney Airport Stapled Securities : 2023 Sustainability Report

Frameworks

GRI

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

This report aligns to the relevant SASB Standards

Sydney Airport is a supporter of the Task Force on Climate-related Financial Disclosures (TCFD) and is supportive of

the proposed mandatory Australian Sustainability Reporting Standards

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 investment in line with the framework developed by Business for Societal Impact1

Table of Contents

Chair and CEO message

The year we turned the corner

Sustainability is integral to our business strategy and our long-term success. Our Sustainability Strategy sets the direction for our business and focuses on three strategic pillars: responsible business, planning for the future, and supporting our people and communities, and we continue to drive performance improvements across safety, environment, resilience, customer experience, people and community.

Our ongoing commitment to responsible business practices and sustainability was recognised by Sustainalytics - an international leader in ESG ratings, ranking us as the top-performing airport globally in the airports industry subsector in 2023. We also achieved a five-star rating in the GRESB infrastructure asset assessment and maintained our Level 3 'Optimisation' Airport Carbon Accreditation.

Responsible business

In 2023, we implemented a range of initiatives to help build our safety culture, ensuring everyone that works at Sydney Airport goes home safe and well.

We refreshed the processes for learning by launching a new induction program, Airside Aware and Terminal Aware, reaching over 15,000 workers online to provide a consistent understanding of airport risks.

We continued to support the mental health and wellbeing of our people by providing subsidies for employees to invest in their wellbeing, access to the Employee Assistance Program (EAP) services, and provision for employees to take up to three wellbeing days a year.

To support our efforts in reaching Net Zero Scope 1 and 2 emissions by 2030, we progressed a number of key initiatives that aim to deliver emissions reductions across the precinct.

Whilst we didn't meet our 2022-2024 Sustainability target of year-on-year reductions in Scope 1 and 2 emissions/ m2, we did reduce our overall Scope 1 and 2 emissions by 6 percent, compared to 2022. We recognise that Scope 1 and 2 emissions account for 13 per cent of our total emissions footprint (scope 1,

2 and 3) and we are engaging with our partners on ways to decrease our Scope 3 emissions, which make up 87 per cent of our emissions footprint.

In 2023, we continued our extensive LED lighting upgrade program, focusing on terminal buildings and runways. In September, we completed a project to replace 384 lights on the third runway (16R/L34R) with LED technology, with a 20-person crew working across two days to deliver what was 18-months in the planning. The LED replacements across the airport delivered an overall energy consumption saving of ~4.6GWh, which we expect will deliver an emissions reduction of ~3,031 tCO2e per year.

We also commenced the development of our vehicle transition strategy that will guide the phased transition of our light vehicle fleet to electric alternatives by 2030. The steady rollout will ensure the replacement cycle is both efficient and meets the requirements of the Net Zero (Scope 1 and 2 emissions) 2030 roadmap. We are also aiming to identify suitable EV charging stations as part of this project to ensure our infrastructure can successfully support the transition in the long term.

In 2023, we conducted feasibility studies to determine suitable locations for additional solar panels to be installed across the precinct. With the first tranche of solar panel capital works approvals due in early 2024, our aim is to deliver at least 3.4MW of additional solar capacity to the airport.

Contractual negotiations for our future electricity supply were completed in 2023, which will secure the equivalent of 100 per cent renewable electricity for the precinct from 1 January 2025, through a contractual Power Purchase Agreement (PPA).

This agreement will match and/or

offset our electricity consumption and supports our target to achieve 100 per cent renewable electricity by 2025.

In addition to reducing emissions, we continued our efforts to restore biodiversity in the wetlands. Our partnership with Wildflower, Gardens for Good delivered 853 hours of bush regeneration works, which included the removal of noxious weeds, planting more than 780 native species in the endemic area, and collecting native seeds for propagation. We were thrilled to be recognised for this work at the 2023 Keep Australia Beautiful NSW Sustainable Cities Awards by being awarded The Heritage, Culture and Community Spirit Award.

As part of our commitment to addressing modern slavery risks, we focused on providing specialist modern slavery training sessions and reviewed how we manage modern slavery risks in our supply chain. More detail on our modern slavery risk identification and management can be found in our 2023 Modern Slavery Statement, available on our website.

Planning for the future

In 2023, we continued to build upon and improve our approach to managing the physical and transition risks posed by climate change. All priority physical and transition risks, identified during climate risk assessments, have been allocated key adaptation and transition actions for implementation. These actions have now been embedded within our risk management system.

We continued our extensive flood modelling with outcomes being incorporated into our business continuity planning, as well as addressing the impact of extreme heat events. In 2023, we commissioned

an urban heat island effect study to address the specific risks of extreme heat in an airport setting, where hard surfaces and dry grass are prevalent, and recommend strategies and actions to mitigate risks.

You can read more about the airport's climate resilience planning in our 2023 Response to the recommendations of the Taskforce for Climate Related Financial Disclosures on our website.

We embedded further sustainable design and development processes as part of our Sustainable Design Guidelines which highlight the sustainable requirements at each stage of a project. This included projects such as the T1 international terminal baggage handling system which is being upgraded to support future growth. Sustainability was an important early consideration in the project with the airport requiring all design partners

to meet the requirements set out in the guidelines.

We were proud to continue our work with the NSW Government to deliver significant milestones in the construction of Sydney Gateway, including the completion of 19 bridge structures and the completion of

a flyover bridge into the domestic precinct. The first of two Twin Arch Bridges over the Alexandra Canal also opened to traffic in November 2023, with the second arch scheduled to open in May 2024. 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

We understand the importance of supporting our people and communities and we are pleased to report that

our employee engagement score was 78 per cent, an increase of three per cent on 2022.

Throughout 2023, a total of 13,169 hours of training was delivered to Sydney Airport staff, which equates to an average of 22.3 hours of training per employee, exceeding our target to deliver 15 or more training hours per employee (on average) per year.

We increased paid parental leave for all employees from 18 to 26 weeks in recognition that parenting is a shared responsibility, and we were pleased that during the year our return from parental leave rate (team members who stay with the airport for at least one year post their parental leave) remained high at around 90 per cent.

Our commitment to the community

is an essential part of our Sustainability Strategy, and we are proud to report that our community investment contribution increased to $2.82m

in 2023. We also spent $2.23m1 on social and Indigenous procurement, a 24 per cent increase on 2022.

We also recognise the importance of enriching our Indigenous connection. Our long-standing partnership with the Gujaga Foundation continued in 2023, strengthening our ties with our local La Perouse Aboriginal community. We held cultural awareness training courses to help our people better increase their understanding of kinship and our Indigenous apprentices completed their second year learning practical skills as part of their TAFE certification.

Continuing our leadership

We are committed to upholding our sustainability commitments and look forward to continuing to work towards a more sustainable future.

David Gonski

Chair

Scott Charlton

Chief Executive Officer 

Sustainability at Sydney Airport

Performance highlights

2023 performance highlights

A renewable Power Purchase Agreement (PPA) has been contracted for the equivalent of 100% of

Sydney Airport's electricity supply

Effective 1 January 20253

22.3 hours

of training delivered per employee2

(from 19.2 hours in 2022)

78% employee engagement score

( 3% from 2022)

Climate risk governance strengthened

with 96 transition and adaptation actions identified

Ranked 1st

Globally in the Airports sub-industry sector, and as a Top-Rated Global ESG Performer

Sustainalytics ESG Risk Rating 2023

1. As at December 2023.

5 Star Rating 95/100

up from 74 in 20202

GRESB Infrastructure asset assessment 2023

Maintained Level 3

'Optimisation' Airport Carbon

Accreditation

Airport Carbon Accreditation rating of 'Level 3- Optimisation' was maintained for 2023

Everyone at Sydney Airport goes home safe every day

Our resilience is strengthened and our growth is sustainable

Our workforce is diverse, engaged and supported to develop and grow

2022-2024 sustainability targets

Responsible business

Safety

Zero class 11

injuries for employees

and contractors

95% of people leaders

complete at least six high quality

health, safety and wellbeing

engagements per year

Environment

Net zero

by 2030 for Scope 1 and 2 emissions

100% renewable

electricity by 2025

YOY2 reduction

in emissions/m2 and

potable water use

YOY2 reduction in waste to landfill

Planning for the future

Resilience

50% reduction in

Scope 3 emissions from airport ground operations by 20253,4

Min. 5-star Green Star

New Buildings

Support 10%

Sustainable Aviation Fuel

globally by 20305

Customer Experience

≥4.5 out of 5

average customer satisfaction score6

Supporting our people

and communities

People

40 | 40 | 20

gender balance across SYD's

leadership and overall7

≥80%

employee engagement

≥15 training hours per employee p.a.

Community

10% YOY

increase contribution in community value8

10% YOY

increase in spend

with social and Indigenous

enterprises