Frequency of progress reporting CSL updates its various committees on climate-related risks and opportunities, climate-related target performance and the status of climate-related disclosures at different times of the year. As CSL’s governing bodies consider climate as part of wider Company impacts, governing bodies may meet more frequently to oversee other matters. The number of times CSL’s governing bodies met for the reporting period for specific climate-related oversight is shown in the table below as the number in bold, while the total number of meetings the governing body held is shown as #. Number of times CSL’s Committees met to oversee climate-related tasks vs overall number of times the Committees met for the reporting period CSL Board sub-committees Management ARMC HRRC CGNC IRB SDSC CSL’s climate-related risks and opportunities (CRROs) were presented/updated 2* out of 6 3 out of 5 Climate-related target performance** 2 out of 6 1 out of 5 Climate-related Short-Term Incentive (STI) achievement 1 out of 13 Board skills and experience 1 out of 5 Review of capital investment plans 4 out of 4*** * The ARMC received an update on CSL’s CRROs twice for the reporting period through a climate-related disclosure update. ** Updates to the ARMC on climate-related target performance form part of the Committee’s oversight of the wider Healthier Environment (CSL’s environment sustainability) progress target updates. *** The IRB meets consistently ahead of the CSL Board, making capital approvals for any material climate-related project following CSL’s capital approval processes. During the reporting period, the IRB met four times, one of which was facilitated through a circular update. Capital investments CSL’s Investment Review Board (IRB) oversees capital approvals for key operational projects (including any that relate to investment in climate-related projects) and related investment strategies up to a certain threshold. Capital projects exceeding this threshold are approved by the Board with support of the IRB. The IRB consists of members of the GLT, including the CEO and CFO, as well as operational leaders from CSL Seqirus, CSL Behring and CSL Vifor. Large capital expenditure supporting CSL’s near-term climate-related targets, and efforts to address identified climate-related risks and opportunities, are overseen by the IRB. Investments typically consider trade-offs including economic and other operational factors. Board skills development Ongoing training is provided to the Board and sub-committees as part of CSL’s Director training. During the reporting period, an external climate specialist and management provided a briefing to the ARMC on climate governance, and Board roles and responsibilities, and an update on current market practices. Climate-related remuneration Climate-related considerations are factored into executive remuneration. For the reporting period, each Executive Key Management Personnel has a maximum of seven KPIs. The KPIs are made up of two financial measures, a sustainability measure and up to four individual business-building KPIs. Hurdles are set at threshold, target and maximum levels of performance, with a significant difference between each performance level to provide a challenging but meaningful incentive. For CSL’s GLT, 5% of the total Short-Term Incentive (STI) metric is linked to sustainability. The sustainability metric includes six objectives with equal weighting; two of these relate to progress against the Scope 1 & 2 and Scope 3 emissions reduction targets. Together, these two objectives comprise 1.65% of the total remuneration. Please refer to page 68–71 of the Remuneration Report for further information on the remuneration structure. Controls and procedures CSL has implemented a range of controls and procedures to support management’s oversight of climate-related risks and opportunities. These include reporting and escalation processes, oversight by management committees and the monitoring of CSL’s climate-related targets. CSL utilises the following controls and procedures: • the integration of climate-related risks and opportunities into the Enterprise Risk Management Framework, including the use of risk registers, designated risk owners and escalation processes; • climate scenario analysis processes used to identify, assess and monitor climate-related risks and opportunities; • internal verification processes for climate-related data and reporting; • internal audit of reported performance against select climate-related remuneration KPIs; and • external assurance over climate-related data and metrics reporting. Sustainability Report 144 Sustainability Report
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