CSL Limited Annual Report 2022/23 50 8 Environment Targets and milestones achieved over the reporting period 1 2 3 Scope Target 40% reduction by 2030 on baseline (335 kilotonnes of CO2-e) For 67% of emissions, applicable third parties have set science-based Scope 1 and 2 targets by 2030 Key abatement levers over the target timeframe • Increased energy efficiency • Best-in-class facility design for greenfield sites and new buildings • Switching fuels to less carbon intensive energy sources • A push towards more renewable power • Re-designing some manufacturing sites • Increased energy efficiencies (for Scope 1) • Revised procurement standards and award criteria • Supplier enablement through advocacy and education • Strategic partnerships to innovate and collaborate Key achievements for 2022/23 • Portfolio of initiatives established for the 2023/24 financial year, including the allocation of relevant capital expenditure. • Commitment letter submitted to Science Based Targets initiative for CSL’s near-term 2030 emissions reduction targets. • Request for proposal for a power purchase agreement covering all of CSL Australia’s manufacturing facilities issued. • Transition to renewable energy for CSL’s manufacturing facility in Marburg, Germany, therefore achieving 100% renewable electricity purchased from certified sources across CSL’s European manufacturing facilities. • Finalised energy efficiency initiatives to be included in design at CSL’s new facility at Tullamarine, Australia. • Finalised supplier engagement plan. • Developed and launched supply standards and communication materials for supplier outreach. • First of four waves of supplier communication has been completed, representing 8% of CSL’s total Scope 3 emissions. This initial wave revealed that all suppliers targeted have set SBTi or science-based aligned targets, or plan to set SBTi or sciencebased aligned targets by 2024. Portfolio and program governance system implemented for target achievement • Established a robust governance and portfolio management system to facilitate the right initiatives being executed at the right time to maximise benefit. The system aligns decision making at an enterprise and site level and ensures sustainability benefit is monitored and verified to achieve our emission reduction targets. • This year we have also sought limited assurance on energy consumption and emission data, including baseline data utilised for the establishment of our emissions reduction targets. • Over the reporting year an independent review of the climate programwas undertaken to facilitate effective governance and control. Overall controls and effectiveness were considered good (fourth rating from five options, with the fifth rating being excellent) with the only two findings for management’s consideration rated as low priority. Definitions Scope 1 controlled by the company, for example, emissions from combustion in owned or controlled boilers, furnaces, or vehicles. Scope 2 emissions are released as a result of one or more activities that generate electricity, heating, cooling or steam that is consumed by the facility, but that do not form part of the facility. Scope 3 emissions are the result of activities from assets not owned or controlled by the reporting organisation, but that the organisation indirectly affects in its value chain. Scope 3 emissions include all sources not within an organisation’s Scope 1 and 2 boundary.
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