#### Governance
**BOARD OVERSIGHT**
The strategic direction of Mirvac is set by the Board of Directors, which also approves the Mirvac Group Risk Management Framework, defining our risk appetite.
Mirvac's approach to addressing climate-related risks and opportunities is outlined in this document and reflected in our sustainability strategy, This Changes Everything, which was refreshed in 2022. The Board oversees the implementation of this strategy by the ELT, approving sustainability targets and monitoring progress towards those targets.
Through diverse Director experience coupled with management reporting, expert briefings and updates, annual training, site visits, and information sharing, our Board and its Committees are equipped to consider climate-related matters.
The Board is supported by four standing committees that each provide oversight of various aspects of Mirvac's Environmental, Social and Governance (ESG) performance.
The Audit, Risk and Compliance Committee (ARCC) reviews and makes recommendations to the Board on Mirvac's risk profile, including assessing and prioritising the key operational, strategic and emerging risks. The management of ESG risks, disclosure and reporting continue to be key areas of focus and during the year, the ARCC was briefed on ESG reporting and impacts in real property, led by our external auditors, PwC.
The Health, Safety, Environment & Sustainability (HSE&S) Committee oversees relevant strategies, systems, policies and practices, including those relating to climate change. This Committee meets at least quarterly, with deep dive topics alternating between a safety and sustainability focus for each meeting.
Over the past year, HSE&S Committee meetings were complemented by site visits to Gainsborough Greens (Pimpama, Queensland), Everleigh (Greenbank, Queensland), 200 Kent Street (Sydney), and Heritage Lanes (Brisbane). The Committee also participated in several briefings on our sustainability strategy refresh and Scope 3 related work in conjunction with expert briefings on the evolving areas of carbon and nature offsets, and related disclosures.
The Human Resources Committee supports the Group's sustainability vision, targets, and strategies by promoting alignment with the Group's human resources policies, practices and organisational culture.
The Nomination Committee helps to ensure Mirvac has appropriate governance and experience at Board level in environmental, social responsibility and sustainability issues by making recommendations on Board composition and the overall mix of skills, experience, and diversity of the Board.
Site visits are particularly important as they not only foster a strong HSE&S culture by enabling our Directors to assess the practical application of sustainability initiatives, they also provide opportunities for the Board to directly interact with employees on these important topics.
As in previous years, a delegation of Mirvac directors, executives and managers also took part in the University of Cambridge sustainability leadership program, with our HSE&S Committee Chair part of the program's expert faculty.
**NEW GOVERNANCE GROUPS TACKLING**
**SCOPE 3 EMISSIONS TOGETHER**
Scope 3 emissions were a key focus for Mirvac this year, and to this end, we established a new internal steering committee, comprised of leaders across Mirvac, as well as a Scope 3 working group featuring managers making high impact choices, and technical sub‑groups – the latter two groups comprising representatives from across the organisation, including technical sustainability specialists, as well as leaders from procurement, finance, construction, development, design, digital, and cost planning.
The purpose of the steering committee and working groups is to provide direction for strategic initiatives, and recommendations for endorsement at the HSE&S Management Committee and for decisions by the ELT. The group's focus is to maximise our opportunities to reduce Scope 3 emissions through knowledge sharing, while being mindful of any potential impacts of our choices, and together progress priority Scope 3 initiatives.
**THE ROLE OF MANAGEMENT**
Mirvac's ELT plays a pivotal role in implementing the organisation's sustainability strategy and risk management framework. They are responsible for identifying, mitigating, and managing material sustainability risks, including those related to climate. Each member of the ELT also has specific duties relating to Mirvac's sustainability performance, including KPI objectives relating to climate-related risks, opportunities, and responsibilities.
Supporting the ELT is the HSE&S Management Committee, chaired by Mirvac's Chief Culture & Capability Officer. Comprising senior leaders from across the business, this committee meets quarterly to discuss progress on HSE&S matters, including climate-related issues. They provide updates and recommendations to the ELT, HSE&S Board Committee, and the Board after each meeting.
The management committee is also responsible for evaluating the progress of each business unit toward their sustainability targets. Targets in line with our strategy are negotiated and agreed upon annually, and are designed to assign accountability across the organisation for our highest priority ESG objectives. Progress is measured using our annual Group ESG scorecard, which enables business units to demonstrate their contributions to the sustainability strategy, including climate resilience, in a clear and measurable way. Mirvac's key risks, including those in relation to climate risks, are also discussed at quarterly ELT meetings, led by Mirvac's Group General Manager, Risk & Internal Audit.
Mirvac's management approach ensures that sustainability, including delivering on climate-related targets, is embedded in the responsibilities of every employee. By considering sustainability goals in the assessment of short-term incentives for all employees, Mirvac recognises and rewards the efforts of each team member. Our target is to achieve at least 80 per cent of specified goals each year, and in FY23 we exceeded this to achieve a 86 per cent performance.