CSL Limited Annual Report 2021/22 43 Environmental trends Compared with the prior year, modest increases were experienced across energy consumption, greenhouse gas emissions and water consumption. These increases are largely due to fluctuating manufacturing volumes and commissioning activities across new infrastructure. Our environmental performance includes data from the following operations: • CSL Seqirus, three manufacturing facilities – Australia, the UK and the US; • CSL Behring, five manufacturing facilities – Australia, Germany, Switzerland, the US and China; • CSL Plasma operations, including testing laboratories and plasma centres, across China, Germany, Hungary and the US; • administrative and R&D operations co-located with our manufacturing facilities; and • the respective head offices for CSL Behring (King of Prussia, US), CSL Plasma (Boca Raton, US) and CSL Limited (Parkville, Australia). Indicator Unit 19-20 1, 5 (April to March) 20-21 1, 5 (April to March) 21-22 1, 5 (April to March) Energy consumption 2 Petajoules (PJ) 3.79 3.74 3.92 Greenhouse gas emissions 3 Metric kilotonnes CO2-e (KT) 341 324 347 Water consumption Gigalitres (GL) 4.25 4.44 4.67 Total waste Metric kilotonnes (KT) 66.75 59.18 55.54 Waste recycling rate4 % 46 39 38 1 Data reported are inclusive of CSL Behring and CSL Seqirus manufacturing facilities, CSL Plasma and CSL Behring headquarters. 2 Includes Scope 1 and 2 energy sources. Scope 1 energy sources are fossil energy sources supplied or used onsite. Scope 2 energy sources are electricity and steam supplied to site. 3 The majority of greenhouse gas (GHG) emitted from CSL’s operation is carbon dioxide (CO2). In the US, Germany, the UK and Switzerland, GHG emission factors are used to calculate CO2 emissions only. In Australia, GHG emission factors used by CSL calculate carbon dioxide, nitrous oxide and methane emissions. Total emissions for Australian facilities are expressed as carbon dioxide equivalents (CO2-e). 4 The recycling rate represents the proportion of total waste generated that is either reused or recycled. 5 CSL Plasma uses validated factors to calculate electrical power, gas and water consumption. Utility invoices were used to establish these factors and calculate natural gas, electricity and water consumption for all CSL Plasma centres. Utility invoices were also used for the two CSL Plasma Logistic centres in Knoxville (US) and Union (US). CSL Plasma uses the contracted waste hauler monthly data to calculate the total yearly waste impact. In the absence of hauler information, a factorial is applied to calculate the estimated waste impact per volume of plasma collected Environmental metrics With the development of CSL’s 2030 emissions reduction target, the following metrics are under review. Intensity measure. Previously CSL has reported environmental performance utilising an intensity measure drawn from environmental inputs (absolute numbers) against group revenue. With the establishment of an absolute target alternative indicators will be explored to support measuring performance against our targets. Scope 3 emissions. These are indirect emissions resulting from value chain activities including the supply of goods and services, distribution of products by third parties and employee travel. In 2022/23, CSL expects to disclose its scope 3 boundary and baseline data. Our Scope 1 and 2 emissions profile CSL’s Scope 1 greenhouse gas emissions come from the combustion of fossil fuels. This is primarily burning natural gas to generate steam at manufacturing facilities. Scope 2 emission are from purchased electricity and to a lesser extent purchased steam. Sites in Switzerland and the UK currently purchase electricity from renewable sources. Scope 2 70% Scope 1 30% CSL Limited Scope 1 and 2 GHG emissions 21-22 Climate change and resilience Climate change poses a risk for the health of the global population, businesses, communities and the economy. A warming planet increases the risk of wildfires, rising sea levels, extreme heat, severe weather and droughts. These hazards can have a direct effect on population health and further stress health care infrastructure, including the network of global manufacturing facilities and warehouses utilised by CSL in the production of life-saving medicines and therapies. We recognise the need to limit global warming to 1.5ºC in line with the Paris Agreement in order to reduce even worst impacts in the long-term, as reiterated in the most recent Intergovernmental Panel on Climate Change (IPCC). While we strive to save and improve the lives of our patients and protect public health, we’ve taken actions to proactively mitigate and adapt to climate change. Our recent efforts include undertaking enterprise-wide climate risk and opportunity assessments in 2019/20 and 2021/22 using the IPCC Fifth and Sixth Assessment Reports (IPCC AR5 and IPCC AR6) across our plasma centres, critical suppliers, manufacturing facilities and warehouses, disclosing against the CDP (formerly known as Carbon Disclosure Project) framework, and developing a decarbonisation roadmap. Climate change affects all aspects of businesses and communities, both directly and indirectly, with the severity varying significantly by region. We have identified multiple opportunities to quantify and lower our greenhouse gas emissions, and expand knowledge-sharing opportunities between different functions and geographies to develop multi-purpose adaptation and mitigation solutions.
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