CSL Ltd Annual Report 2020

9. Significant events after year end Other than Mr Soriot joining the CSL Board from 19 August 2020 and information as disclosed in the financial statements, the directors are not aware of any other matter of circumstance which has arisen since the end of the financial year which has significantly affected or may significantly affect the operations of the consolidated entity, results of those operations or the state of affairs of the consolidated entity in subsequent financial years. 10. Environment, Health, Safety and Sustainability performance CSL has an Environmental, Health, Safety and Sustainability (EHS 2 ) Management System that its facilities operate to industry and regulatory standards. This system includes compliance with government regulations and commitments for continuous improvement of health and safety in the workplace, as well as minimising the impact of operations on the environment. To drive this system, CSL implemented an EHS 2 Management System (EHSMS) Standard. Internal audits at one site demonstrated compliance with the EHSMS in FY2019/20. Completion of the remaining internal audits are planned over the next one to two years. Development, implementation, and improvement of employee health and safety processes and programs continue to focus on enhancement of a strong safety culture. Our Australian operations continue classification as an Established Licensee in respect to CSL’s self-insurance licence as granted by the Safety, Rehabilitation and Compensation Commission. Australian and foreign laws regulate environmental and safety obligations and waste discharge quotas. Government agency audits and site inspections monitor CSL environmental and safety performance. The following is a summary of findings identified or with continued action over the reporting period. In 2020, CSL, Parkville (Australia) submitted a proposed remediation plan for the identified groundwater contamination to the environmental authority. CSL has sought a meeting with the Environmental Protection Agency (EPA) to discuss a path forward on this issue. An environmental assessment of the broader Parkville site has been completed and we are currently reviewing the results to determine what further action may be required. In 2020, CSL, Broadmeadows (Australia) received a non- compliance notice from the local water authority for a wastewater discharge of acetic acid in exceedance of the local limit. Investigations are ongoing in consultation with the water authority. In 2019/20, CSL, Kankakee (US) experienced wastewater pH violations identified through sampling by the local environmental authority. In 2020, CSL entered into an agreement with the local environmental authority to allow periodic non-compliance with the site permit for pH until completion of a pH neutralisation system by November 2021. In 2019, CSL, Kankakee received a Notice of Intent to File a Civil Administrative Complaint from the federal environmental authority for alleged violations of the Clean Air Act identified during a 2018 inspection. CSL and the environmental authority are continuing to discuss the potential violations with a final complaint or order expected to be filed in 2020. In 2020, CSL Plasma, Margate (US) received a Citation and Notification of Penalty fine following a 2019 employee exposure to dry ice. As part of compliance and continuous improvement in regulatory and voluntary environmental performance, CSL continues to report on key environmental aspects including energy consumption, emissions, water use and management of waste as part of CSL’s annual reporting on CSL.com (see Corporate Responsibility) and submission to the CDP (previously known as Carbon Disclosure Project). CSL has met its reporting obligations under the Australian Government’s National Greenhouse and Energy Reporting Act (2007) and Victorian Government’s Industrial Waste Management Policy (National Pollutant Inventory). Monitoring environment, climate change risks, and control measures means that CSL is ready for new and emerging regulatory requirements. CSL’s environmental performance is particularly important and relevant to select stakeholders and CSL reaffirms its commitment to continue to participate in initiatives such as CDP’s (climate change and water disclosures) to help inform investors of its environmental management approach and performance. Additional EHS 2 performance details, including workplace safety, will be provided in Sections 6 and 8 of CSL’s 2019/20 Annual Report and on CSL.com. 11. Directors’ shareholdings and interest At 30 June 2020, the interests of the Directors who held office at 30 June 2020 in the shares, options and performance rights of CSL are set out in the Remuneration Report – Tables 10 and 11 for executive Key Management Personnel (KMP) and Tables 16 and 17 for Non-Executive Directors. It is contrary to Board policy for KMP to limit exposure to risk in relation to these securities. From time to time the Company Secretary makes inquiries of KMP as to their compliance with this policy. 12. Directors’ interests in contracts Section 14 of this report sets out particulars of the Director’s Deed entered into by CSL with each director in relation to access to Board papers, indemnity and insurance. 13. Performance Rights and Options As at 30 June 2020, the number of unissued ordinary shares in CSL under options and under performance rights are set out in Note 5 on page 110 and Note 18 on page 130 of the Financial Statements. Holders of options or performance rights do not have any right, by virtue of the options or performance rights, to participate in any share issue by CSL or any other body corporate or in any interest issued by any registered managed investment scheme. The number of options and performance rights exercised during the financial year and the exercise price paid to acquire fully paid ordinary shares in CSL is set out in Note 5 of the Financial Statements. Since the end of the financial year, no shares were issued under CSL’s Performance Rights Plan. Since the end of the financial year, there has been no change to the information contained in Note 5 or Note 18 to the Financial Statements. CSL Limited Annual Report 2020 64 Directors’ Report