CSL Limited Annual Report 2021/22 62 Sustainability performance FTSE4Good CSL’s environmental, social and governance (ESG) performance has been recognised by the FTSE4Good Index Series, a leading sustainability index, for the last 11 years. MSCI As of June 2022, CSL received an MSCI ESG Rating of A. MSCI focuses on companies ESG rated performance in each sector to help institutional investors more effectively integrate ESG considerations into their investment processes, as well as manage, measure, and report on ESG mandates. Sustainalytics As of April 2021, CSL’s ESG risk rating overall score is 25.2 with an ESG risk rating category of medium (on a 5-point scale from negligible to severe), ranking 14 out of 372 in the biotechnology sector (1st equals lowest risk). Sustainalytics provides analytical ESG research, ratings and data to institutional investors and companies. 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. CSL has 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 2021/22, CSL’s governance arrangements were consistent with the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations (4th edition). Our 2021/22 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 Enterprise Risk Management Framework (ERMF) to ensure that risks in the CSL Group are identified, evaluated, monitored and managed. This ERMF sets out the risk management processes, internal compliance and monitoring requirements, governance processes and structures including roles and responsibilities for different levels of management, the matrix of risk impact and likelihood for assessing risk, the three lines of accountability for risk and risk management reporting requirements. The ERMF has been established to provide reasonable assurance that: • any material exposure to risk is identified and adequately monitored and managed; and • significant strategic, emerging, financial, managerial and operating risk-related information is accurate, relevant, timely and reliable. 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 on page 24. 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). 10 Governance
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