CSL Ltd Annual Report 2021

Ethics and transparency While our Values serve as the directional compass of our work, our Code of Responsible Business Practice (Code) provides a more detailed map to deliver on our promise in ways that exemplify the highest standards of conduct throughout the organisation. This applies in all areas, from our R&D facilities to our plasma centres to our manufacturing sites to our commercial affiliates. CSL’s Code fosters a culture that rewards high ethical standards, personal and corporate integrity and respect for others. In 2020/21, following an independent review and consultations with employees, heads of function fromacross the organisation and CSL’s Global Leadership Group, our Board-endorsed 4th-edition Code was published on 1 July 2021. CSL’s 4th-edition Code includes a new ethics-based decision-making tool that weaves together Our Purpose, Values and decision-making Principles to establish a clear point of reference when making decisions across the organisation. The development of the tool was informed by the expertise of the Ethics Centre in Australia, employees and CSL management. The Code is available in 15 languages and has been distributed to all directors, management and employees and training programs will be implemented across the CSL Group. In certain aspects of our business, such as the marketing of our products, our relationships with other healthcare professionals and our research and development, we have made further commitments to comply with both local and internationally accepted pharmaceutical industry codes of conduct. We expect third parties with which we work to comply with the applicable local laws and regulations of the countries in which they operate, and to observe all of the principles set out in our Code. We have internal control systems to ensure financial statements comply with the applicable local laws of the countries in which we operate and to prevent fraud and other improper conduct. CSL’s Code can be found on CSL.com (Our Company > Corporate Governance > Code of Responsible Business Practice). Disclosure As a publicly listed company on the Australian Securities Exchange (ASX), CSL has obligations under Australian law and the ASX Listing Rules. Subject to limited exceptions, we must continuously disclose to the ASX information about CSL that a reasonable person would expect to have a material effect on the price or value of CSL securities. We have a policy that sets clear guidelines and describes the actions that the directors and all employees should take when they become aware of information that may require disclosure. Corporate governance Throughout 2020/21, CSL’s governance arrangements were consistent with the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations (4th edition). Our 2020/21 Corporate Governance Statement has been approved by the Board and is available on CSL.com (Our Company > Corporate Governance). The Board continually reviews governance at CSL to ensure that our arrangements remain appropriate in light of changing expectations and general developments in good corporate governance. Risk management CSL has adopted and follows a detailed and structured risk framework to ensure that risks in the CSL Group are identified, evaluated, monitored and managed. This risk framework sets out the risk management processes and internal compliance and control systems, the roles and responsibilities for different levels of management, the matrix of risk impact and likelihood for assessing risk, and risk management reporting requirements. The risk management processes and internal compliance and control systems are made up of various CSL policies, processes, practices and procedures, which have been established by management and/or the Board to provide reasonable assurance that: – established corporate and business strategies are implemented, and objectives are achieved; – any material exposure to risk is identified and adequately monitored and managed; – significant financial, managerial and operating information is accurate, relevant, timely and reliable; and – there is an adequate level of compliance with policies, standards, procedures and applicable laws and regulations. Further details of CSL’s risk management framework are contained in CSL’s Corporate Governance Statement. A description of CSL’s material risks and key risk management activities for each risk can be found in Our Material Risks. Tax transparency While CSL’s roots are proudly Australian, CSL is a truly global company, with more than 90% of our revenues and profits derived outside Australia. We separately report on our global tax footprint, as part of our tax transparency reporting. We are subject to the different tax regimes that apply in each of those countries and comply with applicable taxation laws in all the jurisdictions in which we operate, including the OECD Country-by-Country reporting measures. CSL’s approach to tax is underpinned by our Value of Integrity. This is consistent with our commitment to complying with all tax laws in the countries in which we operate. CSL has a low appetite for tax risk and does not engage in aggressive tax planning. CSL supports efforts to promote prevention of tax avoidance and to improve tax transparency in order to support a fairer economy and ensure there is confidence in the robustness of country tax regimes. Operating with transparency forms a core part of CSL’s tax management philosophy and as such our annual tax transparency reports can be found on CSL.com (Our Company > Corporate Responsibility). 12 Governance CSL Limited Annual Report 2020/21 66