CSL Ltd Annual Report 2021

Focus on efficiency, standardised manufacturing processes and integrated supply chain CSL’s end-to-end operations organisation has a critical role to play in helping to deliver on our 2030 strategy, so we can continue saving people’s lives and improving public health across the globe. Over the last year, we have been evolving our end-to-end operations to build on its strengths and create an engaged and inclusive culture that consistently delivers top-tier results in the key areas of safety, quality, reliability and innovation. To meet the global demand for CSL’s lifesaving medicines, we are focused on driving a global mindset and creating an end-to-end operation organisation that is modern and scalable, from plasma collection through to our patients. Over the last year, we have made enhancements to our supply chain and manufacturing capabilities, introducing concepts such as reliability rooms, to give us greater visibility and control across our network. End-to-end operations is also working more closely than ever before with key internal partners such as commercial operations and R&D, and using more predictive thinking and modelling to anticipate potential challenges, minimise risk and identify solutions. For CSL Plasma, the collection of vital human-derived plasma for the development of lifesaving products is industry-leading and a critical part of CSL’s supply chain. With careful localised management of operations, including donor remuneration, CSL Plasma facilities minimise donor time via integrated donor management systems including electronic biometric identification and check-in, streamlined floor layouts and an operational excellence approach driving a cohesive culture of efficiency and teamwork. Throughout the COVID-19 pandemic, CSL Plasma has utilised a wide variety of measures to ensure the safety of donors and employees and address challenges such as the need for social distancing, stay-at- home orders and mandated capacity reductions. Secure and reliable supply During the financial year, the External Supply Integration function accelerated targeted partnering with world-class contract manufacturers, analytical services and logistics providers. The partnering efforts were focused on reducing risk and increasing supply reliability. A number of ongoing partnering initiatives will be operational in 2022/23 in support of the 2030 strategy by delivering growth, reliability and innovation through investments made by the chosen partners. In June 2021, CSL deployed an improved end-to-end process for the assessment of third parties across a number of risk domains, including the implementation of a new risk management tool. The improved enterprise-wide third party risk management process and new platformwill centralise the onboarding of third parties based on new critical third- party criteria, delivering significant benefits to our stakeholders including: • proactive and comprehensive identification of supplier risks, delivering against our 2030 objective of efficiency and reliable supply, by identifying and remediating risk in our supply chain; • standardised risk and performance scoring across suppliers, thus improving compliance and audit readiness; • ability to report and revise supplier risk metrics more frequently and more proactively; • defined criteria to consistently identify critical third parties; and • automated integration between existing enterprise systems to enable efficiencies and improved data management. Moreover, in February 2021, CSL joined the Pharmaceutical Supply Chain Initiative (PSCI) to leverage a growing industry membership base and its extensive supply chain expertise. The PSCI is a global non-profit business membership organisation based in the US with a vision to establish and promote responsible practices that will continuously improve social, health, safety and environmental sustainable outcomes for supply chains. As a result of our membership and in support of embedding PSCI’s principles, in June 2021, CSL developed its first Third Party Code of Conduct. Complementing CSL’s Code of Responsible Business Practice, the new Third Party Code makes explicitly clear our expectations for the conduct of CSL business by its third parties/suppliers. During the COVID-19 pandemic, increased global demand put immense pressure on worldwide supply chains but we managed to mitigate this risk and keep our sites fully operational. This was achieved by working cross-functionally and with our external strategic supply partners to identify and implement alternative materials that created approved alternative sources of supply and concurrently de-risked the future on some critical materials. In a multi-year investment, the first serialisation of Seqirus products was supplied for the 2019/20 influenza season in the US and Europe. Serialisation is where a unique serial number is printed on each pack of vaccines. It helps to combat counterfeit products and provides the basis for full track and trace of our vaccines in the future. Seqirus’ southern hemisphere products are also now serialisation-capable. Modern Slavery Statement In February 2021, CSL’s first, Board-approved, public Modern Slavery Statement under new Australian laws was published by the Australian regulator. While we are aware that the fight against forced labour and other egregious forms of modern slavery will take time, planning and collaboration to identify, remedy and ultimately CSL’s Statement on Modern Slavery – 1 July 2019 to 30 June 2020 1 CSL’s Statement on Modern Slavery 1 July 2019 to 30 June 2020 About our Statement Towards meeting the expectations of disclosure requirements in a number of jurisdictions, 1 this Statement on Modern Slavery (the Statement) describes the risks of modern slavery in our business, the steps that we have taken to identify, manage and mitigate those risks in our operations and supply chains, and how we evaluate the effectiveness of our responses. The Statement is a joint statement in relation to the reporting period 1 July 2019 and 30 June 2020 prepared by and for CSL Limited and also for the reporting entities CSL Behring (Australia) Pty Ltd and Seqirus (Australia) Pty Ltd. For the purposes of this Statement, ‘CSL’, ‘we’, ‘us’ and ‘our’ collectively refers to CSL Limited, CSL Behring, CSL Plasma and Seqirus (and includes all relevant reporting entities for this Statement). This Statement also describes practices that are common to CSL’s other controlled entities and CSL-managed joint venture operations (together with CSL, referred to as the ‘Group’ or the ‘CSL Group’). Modern slavery is used to describe serious forms of exploitation where coercion, threats or deception are used to exploit victims and undermine or deprive them of their freedom. Types of serious exploitation include: trafficking in persons; slavery; servitude; forced marriage; forced labour; debt bondage; deceptive recruiting for labour or services; and the worst forms of child labour. Organisational structure CSL Limited is the parent of the CSL Group and is headquartered in Melbourne, Australia. It is listed on the Australian Securities Exchange (ASX) and is a constituent of the S&P/ASX 20 index. CSL is a leading global biotechnology company with a dynamic portfolio of life-saving medicines, including those that treat haemophilia and immune deficiencies, as well as vaccines to prevent influenza. Since our start in 1916, we have been driven by our promise to save lives using the latest technologies. Today, CSL – through our two businesses, CSL Behring and Seqirus – provides life-saving products to more than 100 countries and employs 27,009 people in 39 countries. 2 Our unique combination of commercial strength, research and development focus and operational excellence enables us to identify, develop and deliver innovations so our patients and global communities can live life to the fullest. 1 The Statement has been prepared for purposes of the Modern Slavery Act 2018 (Cth) (Act), United Kingdom Modern Slavery Act 2015 and the California Transparency in Supply Chains Act 2010 . 2 As at 30 June 2020. prevent, inroads have been made. Through CSL’s Supply Chain Integrity Council and new third party risk management process we have increased our efforts to better screen and identify modern slavery risks. You can read more on CSL’s response in our 2020 Statement on CSL.com (Our Company > Corporate Responsibility > Key Publications). CSL Limited Annual Report 2020/21 38 8 Global Reach and Impact