Risk management CSL’s process to identify, assess, prioritise and monitor climate-related risks and opportunities is built on, and informed by, its enterprise risk management processes. Additional information relating to CSL’s enterprise approach to risk management is outlined in the Corporate Governance Statement. Risk and opportunity identification CSL is exposed to a variety of potential climate-related risks and opportunities that are inherent in the global biotechnology industry and, in particular, the plasma therapies, vaccine, pharmaceutical, iron deficiency and nephrology industries. CSL’s latest climate risk and opportunity assessment was completed in this reporting period across CSL’s value chain1, including its most critical infrastructure such as manufacturing facilities, laboratories, warehouses and logistics. An initial list of climate-related risks and opportunities that could reasonably be expected to affect CSL’s prospects was identified through review of internal data sources, the corporate risk register and prior climate risk and opportunity assessments. The prior assessment, conducted in 2022, was used as a baseline and was updated through targeted stakeholder engagement and further analysis of physical risk exposure, which led to a refined list of climate-related risks and opportunities (found in the Strategy section on pages 146–149), which consider the effects across CSL’s current business model and value chain. Risk and opportunity prioritisation CSL’s climate-related risks and opportunities were assessed using CSL’s enterprise risk management matrix criteria, in line with the assessment and prioritisation of other business risks. This criteria consists of qualitative (reputation impact, regulatory exposure, environmental and people harm) and, where possible, quantitative (financial thresholds) assessment to consider the likelihood and impact of climate-related risks and opportunities. The assessment resulted in a risk rating that informed prioritisation of risks. The same approach was applied to assess and prioritise climate-related opportunities. Scenario analysis was used to understand the potential likelihood and impact of risks and opportunities as well as validate the risks and opportunities identified. Additional details on CSL’s Enterprise Risk Management Framework can be found in the Corporate Governance Statement. Risk and opportunity monitoring Climate-related risks and opportunities are monitored in accordance with the Enterprise Risk Management Framework, alongside other business operational risks. Physical risks identified for sites are monitored as part of site-level risk registers. Enterprise climate-related risks and opportunities are managed by appropriate functional departments. Respective GLT members are accountable for the management of climate-related risks and opportunities for their departments. Strategy Climate-related risks and opportunities The following section outlines the climate-related risks and opportunities that CSL has identified as those that stakeholders could reasonably consider capable of affecting CSL’s prospects. While CSL has assessed these risks and opportunities as not material, they have been disclosed to provide transparent and useful information for the general users of the report. Where climate‑related risks and opportunities could be quantified, the current and anticipated financial effects are not, either individually or in aggregate, financially material as per CSL’s Enterprise Risk Management Framework across any time horizon. Where CSL determined that a risk or opportunity did not meet its materiality threshold under its Enterprise Risk Management Framework, it further considered whether external stakeholders could reasonably view it as having the potential to affect CSL’s prospects. Where this was the case, such risks or opportunities have been included in this disclosure. CSL has defined short-, medium- and long-term time horizons to align with climate scenarios and strategic initiatives, as presented below. These time horizons were used in the climate-related risks and opportunities assessment and the climate scenario analysis. Year* Rationale Short term Up to 2030 Aligned with CSL’s science-based near-term targets Medium term 2030–35 Aligned with CSL’s business strategy and operational planning Long term 2035–50 Aligned to net-zero climate scenarios and where physical impacts of climate change are most pronounced * For physical risk scenario analysis, time horizons applied reflect a given reporting year (year X), which averages climate conditions over a 20-year period centred on that year, rather than on a single calendar year, consistent with climate science practice. Where CSL was unable to quantify identified climate-related risks and opportunities, CSL performed qualitative tests to determine if identified climate-related risks and opportunities may be considered decision-useful for primary users. The following tables outline CSL’s two climate-related physical risks, two transition risks and one opportunity that could reasonably be expected by external stakeholders to affect CSL’s prospects across the short-, medium- and long-term time horizon. 1. For the purpose of defining CSL’s value chain, CSL assessed 17 owned sites, including offices and manufacturing sites representing greater than 90% of CSL’s total fixed asset value, excluding leases and impairments. Further assessment considering CSL’s upstream and downstream supply chain, including logistics suppliers was facilitated through value chain workshops. 145 CSL Limited Annual Report 2025/26
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