CSL Limited Annual Report 2022/23 48 8 Environment CSL’s baseline numbers for emissions reduction targets Scope and baseline year Scope 1 and 2 CO2-e (direct and indirect emissions from sources controlled/owned by CSL e.g., natural gas or electricity) based on average annual emissions across fiscal years 2018/19, 2019/20, 2020/21 Scope 3 (indirect emissions generated by our supply chain/third parties) CO2-e as of 30 June 2021 CSL’s target 40% reduction by 2030 For at least 67% of emissions, applicable third parties have set science-based Scope 1 and 2 targets by 2030 Baseline (number)* 342 kilotonnes of CO2-e* 2,284 kilotonnes of CO2-e* Boundary/ description Baseline includes CSL Behring and CSL Seqirus manufacturing facilities, CSL Plasma network and CSL Behring headquarters. Scope 1 and 2 baseline does not include CSL Vifor as it represents a fraction of overall emissions. Baseline includes the following Scope 3 categories 1. Purchased goods and services 2. Capital goods 3. Fuel and energy-related activities (not included in Scope 1 or Scope 2) 4. Upstream transportation and distribution 5. Waste generated in operations 6. Business travel 7. Employee commuting 8. Upstream leased assets 9. Downstream transportation and distribution 11. Use of sold products 12. End-of-life treatment of sold products. Baseline excludes the following emissions categories as CSL does not have significant emissions in these categories: 1. Processing of sold products 2. Downstream leased assets 3. Franchises 4. Investments. Baseline was calculated using spend based or activity-based methods where data is available. Spend based methods included data from CSL Vifor in the baseline. Baselines are an average of FY19-21 data where available and applicable. An average approach was taken to provide as representative as possible a baseline over the period impacted by the COVID-19 pandemic. In some categories only 2020/21 activity data was available for baseline calculation. Business travel baseline was calculated based on FY19 data to reflect the emissions baseline prior to the impact of the pandemic on travel. Estimating Scope 3 emissions is a complex task requiring assumptions and collection of data from multiple sources. The estimates are therefore subject to significant uncertainties. We will continue to improve the accuracy and transparency of our Scope 3 emissions calculations and our understanding of our Scope 3 emissions profile. * Limited assurance by Ernst & Young Energy and emissions The main sources of energy for CSL’s manufacturing facilities are electricity and natural gas. Steam is imported to our Wuhan, China, and Marburg, Germany, facilities as an energy source. Chilled water and compressed air are also supplied to the Marburg facility. Small amounts of diesel, gasoline and heating oil are also used as energy sources. For our CSL Plasma network of centres, electricity is the main source of energy. Combined, our manufacturing facilities and CSL Plasma’s centres contribute most of CSL’s energy consumption and therefore greenhouse gas emissions. In August 2022, CSL announced emissions reduction targets that aim to serve as a tangible and transparent roadmap by reducing its direct and indirect emissions footprint. By 2030, CSL aims to: • target a reduction of 40% of absolute Scope 1 and 2 emissions against a baseline of the average annual emissions across fiscal years 2019–2021; and • engage with suppliers who contribute 67% of Scope 3 emissions to set Scope 1 and 2 reduction targets, aligned with science-based targets. To further demonstrate our commitment to minimising our impact on climate change, in June 2023, CSL committed to set near-term company-wide emissions reductions in line with the Science Based Targets initiative (SBTi), paving the way for the validation of our contribution towards minimising global temperature increases to 1.5°C.
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