CSL Ltd Annual Report 2020

Supplier assessments In 2019/20, CSL conducted 476 quality audit of suppliers.* This level of effort reflects our continued focus on understanding our suppliers across our value chain and the expansion of the numbers of suppliers to accommodate growth. Our Code of Responsible Business Practice (CRBP) includes a commitment to forbid the solicitation, facilitation or any other use of slavery or human trafficking, and under no circumstance should any engagement with CSL deprive individuals of their freedom. From 1 July 2019 to 30 June 2020, no instances related to human trafficking or slavery and forced labour were reported. CSL’s Statement on the Prevention of Human Trafficking, Slavery and Forced Labour can be found on CSL.com (Our Company > Corporate Responsibility > Workplace > Employee relations and diversity). Environment, health and safety CSL is committed to continuously improving our Environmental, Health, Safety and Sustainability (EHS 2 ) performance with culture-driven, risk-centred methodologies that are focused on preventing workplace injuries and illnesses and reducing environmental impacts of our operations and products throughout their lifecycle. Our EHS 2 Management System provides the platform for policies, procedures and guidelines, which manage our business processes. The following principles are applied and practised by CSL employees. We: – adhere to applicable EHS 2 laws and regulations and in the absence of governmental standards, apply sound EHS 2 practices; – instil ownership at all levels in the organisation; – establish opportunities for EHS 2 involvement and expect all employees to be responsible for EHS 2 ; – set performance objectives and regularly measure and communicate results, progress and opportunity with our employees and stakeholders; – provide the resources to implement an EHS 2 culture that proactively identifies and controls EHS 2 risk; – share best practices with the intent to improve our operations and our communities; – conduct internal audits to ensure the integrity of our operations against our EHS 2 Management System; and – provide training to all employees to ensure that they have the right level of skills, ability and knowledge to perform their work. For further information on our employee health and safety performance, please see page 47. Environmental performance CSL continues to be challenged by its expanding manufacturing footprint, which is growing to help meet product demand and deliver new and improved therapies to patients. Increasing production output in 2019/20 is reflected in our extensive expansion across all areas of operation. However, environmental initiatives, together with increasing use of the production capacity of recently built plants, has led to decreasing energy, greenhouse gas (GHG) and waste intensities. Nonetheless, CSL’s facilities require significant amounts of energy and water for operational procedures such as test runs, validation of equipment and operation when not at full capacity. Furthermore, heating, ventilating and air conditioning (HVAC) energy consumption for clean room areas is nearly independent of production output. For more on our environmental performance please see Section 10 of our Directors’ Report. Environmental targets Over the course of the financial year, we have undertaken detailed engagement with key stakeholders including employees, investors and customers. As reflected in our 2020 sustainability materiality assessment results (see page 15), we recognise and acknowledge the impact that climate change poses for our operations, patients and the communities in which we live and work. While some of our manufacturing facilities, particularly those in Europe, drive improvements and reductions against specific environmental targets, the setting of Group targets and focus areas will drive global consistency, enable innovation across the network and contribute to containing increases in global temperatures. We anticipate the setting and communication of global environmental targets by June 2021. Climate change CSL has a practice of conducting climate risk assessments following CSL’s Risk Framework. Risk assessments are based on identification, quantification and mitigation of risks which would prevent or impair CSL frommeeting its business objectives. Enterprise-wide assessments were undertaken in 2008/09 and 2014/15, and will be repeated when a new international consensus on climate change physical and transitional risks emerges, notably through the Intergovernmental Panel on Climate Change (IPCC) process. In the interim, we are finalising the results and outcomes of a narrow-based risk assessment undertaken on our plasma operations and key suppliers and seek to communicate the outcomes in our next annual report. Reporting transparency and performance CSL is a longstanding participant in CDP (formerly the Carbon Disclosure Project) – an investor-led initiative to drive transparency and improvement in environmental performance. In 2019, we achieved a C in our climate change submission, an improvement on the prior year, and consistent with the global average but a grade lower than the biotech and pharmaceutical average of B. For our water submission, we achieved a B−, consistent with the global average and slightly lower than the biotech and pharmaceutical average of B. Both initiatives deploy an eight-point scale with A the highest possible score and D− the lowest. Our participation in both initiatives demonstrates a continued commitment to measuring and assessing our environmental impacts. * Does not include Ruide. Limited assurance by Ernst & Young. CSL Limited Annual Report 2020 34 Global Reach and Impact 8