Physical risk 1 Increased heat stress impacts operations, either through energy disruptions or increased energy demand Category Acute and chronic Description Extreme and sustained high temperatures impact utilities, either through disruption (in the form of power black- and brown-outs) or an increase in demand. Both have a direct impact to CSL operations and CSL’s value chain (external utility providers). Time horizon The impacts of this risk are expected to become more pronounced over the medium- to long-term horizons. Current and potential impacts and location in the business model and value chain CSL identified two impacts from this physical hazard across CSL’s largest manufacturing, warehouse and office sites: 1) External utilities are disrupted, creating brown- and black-outs* for CSL’s operations. – B lack-outs and brown-outs have the potential to interrupt CSL’s operations and to create quality issues for temperature-controlled products. 2) Increased energy demand from cool/cold storage to maintain the required temperature for CSL products. – E xtreme heat sees additional energy utilised by operations to maintain the cool and cold store temperatures required for key products and materials. This increased energy use has a direct impact on operational expense (OPEX) costs from utility providers. CSL anticipates the financial impacts (as per the financial effects described below) of this risk are most pronounced across cool- and cold-store facilities in America and Europe. Adaptation measures Current enterprise measures: Capacity and capability across CSL’s global manufacturing network and supply chain to limit localised operational impacts caused by physical climate hazards. Current operations measures: Backup energy generation at key assets minimises local impacts from energy black- and/or brown-outs. Onsite backup generation, controlled energy load shedding and the ability to prioritise cool/cold storage in the event of high temperature events. Anticipated operations measures: Ongoing asset upgrades to reduce the reliance on backup energy generation at sites in the event of black- and/or brown-outs. Financial effects Current: This climate-related risk had no material impact on CSL’s financial position, financial performance or cash flows for the financial year 2026. Management has concluded that this climate-related risk is not expected to result in a material adjustment to the carrying amounts of CSL’s assets and liabilities within the next financial year. Anticipated (short term): CSL assessed the potential financial effects associated with this risk by considering the impact of extreme heat and high temperatures on manufacturing operations, including the risk of brown- and black-outs affecting external electricity supply, and increased operating expense costs for maintaining the temperature in our cool and cold stores. The assessment considered potential operational disruptions, increased reliance on backup power generation and incremental energy-related operating costs. The assessment was informed by climate hazard indicators (including temperature extremes and cooling demand) and CSL’s asset-level exposure and vulnerability, considering existing mitigation measures such as onsite backup generation and network-wide manufacturing flexibility. Based on this assessment, management estimates the potential incremental annual operating expense impact (excluding mitigation efforts) from this risk to be financially immaterial, with indicative costs of $3 million per annum within the short to medium term, which are not material relative to the Group’s total operating expenses. These costs would be primarily reflected in cost of goods sold and administrative expenses. Exposure is expected to be localised and primarily concentrated at certain manufacturing and storage facilities that are more sensitive to energy disruptions during extreme heat events. Anticipated (medium and long term): Over the medium to long term, the financial effects associated with this risk are expected to remain nominal and manageable, with potential impacts limited to incremental operating costs arising from temporary energy disruptions, backup power usage and increased operating expense to maintain cooling requirements during extreme heat events. Continued investment in asset resilience, energy efficiency initiatives and redundancy within CSL’s manufacturing network is expected to further mitigate the impacts of this risk. Sustainability Report * A black-out is a complete loss of electrical power; this may cause plant and equipment to stop. A brown-out is a temporary and partial drop in voltage; this may cause plant and equipment to fail or impact power sensitive processes (e.g. monitoring equipment). CSL’s climate-related risks and opportunities 146 Sustainability Report
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