CSL Ltd Annual Report 2021

Environmental performance Over the reporting period, CSL’s environmental footprint saw reductions in absolute energy consumption, greenhouse gas emissions and total waste, while water consumption increased. Reductions across these indicators are in part due to fluctuating plasma collection volumes and realising some capital improvements across our sites (see Our environmental impact trends on the next page for more). In April 2021, CSL signed a consent agreement for our site in Kankakee and paid a US$527,144 civil penalty to the federal environmental authority for breaches of the Clean Air Act identified during a 2018 inspection. The inspection identified a number of deficiencies in the site’s risk management practices related to the Act. CSL Behring has taken steps to comply with the regulator’s requirements, including additional resources to support ongoing risk management activities. For further information on our environmental performance, please see Section 10 of the Directors’ Report. Sustainability Strategy – Environment At CSL we know that the responsible management and efficient use of natural resources is key to our sustainable growth and our ability to enable efficient and reliable supply of our products. As a result, we have identified ‘environment’ as one of three strategic pillars of our sustainability strategy. In last year’s report, we had foreshadowed the development of environmental targets. During 2020/21, we prioritised a number of focus areas and actions that seek to validate data sets and develop robust baselines to position us to set environmental targets within the next two years. Our environmental strategy focus areas include: • integrating environmental considerations into key business decisions; • reducing carbon emissions; • minimising end-to-end production of waste through removal, reduction and recycling; and • reducing carbon emissions and waste in our supply chain. Planning activities to ensure we have the best available information to identify gaps and drive improvements across these focus areas has commenced. For example, we are exploring alternative intensity measures to better reflect the nature of our expanding operations and manufacturing facilities and how power purchase agreements in areas where fossil fuels remain the key energy source can help to reduce overall emissions. Climate change CSL conducted a climate change risk assessment of our global operations in 2015 following the release of the Fifth Assessment Report of the Intergovernmental Panel on Climate Change (IPCC). This broad assessment will be repeated in 2022 when the IPCC publishes its Sixth Assessment Report, which is now scheduled for the second half of 2022. We expect climate scenarios and related models to be updated as a result of the IPCC’s work, which will be critical for any future risk assessments. We are also working towards including the recommendations of the Task Force on Climate- related Financial Disclosure (TCFD) into future disclosures. CSL undertook a targeted climate change risk assessment in the second half of 2019/20. It was based on two IPCC scenarios stemming from the Fifth Assessment Report (RCP 4.5 and RCP 8.5) which consider physical risks of climate change across both 10 and 30-year time horizons and climate transition risks over a five-year horizon. The main scope of the risk assessment focused on our North American plasma collection centres and some critical Tier 1 suppliers. The report identified some potential risks across 10-30 year timelines related to cooling systems, flood zones, allergen loads, heat stress and transport disruptions over that time. These findings were not considered unique to CSL nor to have a high impact but do provide management potential planning and design opportunities for future plasma centre site selection and centre expansion planning, and ongoing opportunities to engage with third party suppliers on the impacts of climate change as part of the third party due diligence processes. 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 2020, we achieved a C in our climate change submission, consistent with the global average and biotech and pharmaceutical sector. For our water submission, we achieved a B−, slightly lower than the global average and the biotech and pharmaceutical sector (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. 8 Global Reach and Impact CSL Limited Annual Report 2020/21 40