CSL Limited Annual Report 2022/23 54 9 Social Supply continuity and resilience, including human rights and responsible supply chain CSL has a standardised global approach to managing supplier qualification to ensure the high quality of purchased GxP^ materials and services as well as ensuring quality oversight of outsourced activities. To assure continued consistent high-quality materials from our partners, CSL collaborates and partners with critical suppliers and routinely conducts quality audits worldwide. The continued growth of partner-delivered commercial manufacturing services to CSL necessitated the establishment of a formal leadership capability. CSL has put in place a cross-functional External Plant Leadership Team that mirrors the capability of an internal CSL site in order to deliver the same high quality and reliable product supply to the network. Several new partnerships entered the commercial supply phase, such as our leading gene therapy HEMGENIX®, which continues CSL’s strategy to leverage top-tier strategic partnerships and spread single-sourced product supply risks over multiple manufacturers. These partnerships also deliver greater capacity to support CSL’s growth plans. Many projects continue in various stages of the technology transfer and when delivered will further increase supply reliability, needed capacity and resilience of CSL’s most important product supply chains. Over the reporting period, CSL continued to evolve its third-party risk management (TPRM) digital tool by means of additional questions for environment health and safety and supply chain legislation screening, and a wider use of the industry recognised EcoVadis tool for environmental vendor assessments. CSL has significantly accelerated the use of the TPRM tool and have now loaded 883 vendors over the reporting period. The on-boarding process has also started of CSL’s most critical incumbent vendors, none of whom is categorised as high risk. CSL has also implemented a vendor program to address CSL’s Scope 3 requirements and have made good progress towards our goals. We continue to refine our tools and this level of effort reflects our focus on understanding our suppliers and our commitment to enabling a reliable supply of our therapies. In December 2022, CSL’s third, Board-approved, public Modern Slavery Statement under Australian law and was published on CSL’s website and by the Australian regulator. CSL continues its membership of the Pharmaceutical Supply Chain Initiative (PSCI), which provides opportunity to collaborate with like-minded organisations across a number of social and environmental aspects, including human rights and labour practices. Anyone with information about potential misconduct is encouraged to ‘Speak Up’ under the CSL Speak Up Policy. This includes all of CSL’s current and past employees, directors, contractors, customers, suppliers and associates. All reports made under this policy are received and treated sensitively and seriously, and dealt with promptly, fairly and objectively. From 1 July 2022 to 30 June 2023, no reports related to human trafficking or slavery and forced labour in CSL’s global operations were received. ^GxP refers to a number of good practice standards applicable to the pharmaceutical industry. Further, in December 2022, CSL published a standalone Human Rights Statement. The Statement, which builds on human rights elements detailed in our Code of Responsible Business Practice, was communicated to employees on World Day for Safety and Health at Work – a United Nations day of observance (28 April 2023). You can find CSL’s Human Rights Statement and modern slavery response on CSL.com (Sustainability > Social). Health security A measure of the trust CSL has built with its stakeholders is our position as a global leader in influenza pandemic preparedness and response. Thirty countries around the world rely on CSL Seqirus for pandemic influenza preparedness, including the United States, the UK and Australia. CSL also provides pandemic response commitments to the World Health Organization. CSL Seqirus has state-of-the-art manufacturing facilities on three different continents, together with a global fill and finish network located close to end markets. Our government partners reserve pandemic vaccine doses from these facilities to protect their populations in the event of an influenza pandemic. CSL Seqirus also supplies pre-pandemic vaccine stockpiles that could be deployed to first-responders upon a declaration of an influenza pandemic. In 2022/23, there were increased reports of highly pathogenic avian influenza A (H5N1) virus infections in wild birds, poultry and some mammal populations around the world, leading to frequent engagement with our government partners about the emerging epidemiology, our licensed H5N1 vaccine, and our ability to manufacture and distribute with speed because of our global seasonal influenza vaccine throughput. To further enhance the ability to protect public health, CSL Seqirus entered into a five-year partnership with Pandemic Institute in Liverpool, UK, which will deliver on a number of joint projects, such as modelling the spread and impact of avian influenza ahead of a potential pandemic. Access to our products CSL products provide substantial and meaningful value to patients, healthcare providers, health insurance payers and healthcare systems around the world. CSL is proud of these contributions and seeks to ensure that patients and communities have access to a reliable supply of biopharmaceuticals and vaccines. As CSL continues to develop and commercialise biopharmaceutical innovations which evolve the treatment paradigm, such as gene therapy, we are committed to working with governments, payers, and other stakeholders to design new payment and access solutions that reflect value and that meet the needs of individual patients and healthcare systems. CSL also continue to work with governments, health insurance payers and other stakeholders to support timely and appropriate market entry and access, to enable patients to benefit from our therapies as quickly as possible. We value an ongoing dialogue with policymakers, advocacy groups, and other stakeholders to understand and respond to their needs and expectations. We articulate and communicate comprehensive evidence on the value of our innovations to inform access and reimbursement decisions, and we provide patient assistance programs and support advocacy efforts that improve access to care and affordability.
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