Physical risk 2 Extreme weather events damage parts of CSL’s value chain, including facilities, plasma donor centres, utilities and third-party logistics suppliers, reducing operational capacity Category Acute Description Destruction or damage to CSL’s value chain (including facilities, plasma donor centres, sites and third-party logistics suppliers) due to significant extreme weather events (including wind, wildfire and flood*) reducing operational capacity. Time horizon The impacts of this risk are expected to become more pronounced over the medium to long term. Current and potential impacts and location in the business model and value chain Localised damage to CSL facilities, plasma donor centres, sites and third-party logistics suppliers disrupt the supply of products for customers. CSL recognises the impact of extreme weather events will vary in likelihood and severity for the various regions in which it operates – some regions may be more exposed to the impacts of this risk than others. CSL anticipates the impacts of extreme weather events (and any financial impact) to be more pronounced on our operations in Europe and America. Adaptation measures Current enterprise measures: Capacity and capability across CSL’s global manufacturing network and supply chain supports efficient response to localised operational impacts caused by physical climate hazards. Current operations measures: Site emergency response plans support significant physical climate impacts (such as flooding). CSL maintains contingency and secondary suppliers if primary suppliers are impacted by physical climate hazards. Alternative supply routes and pathways are also assessed as part of wider business continuity planning. Anticipated operations measures: Continuous asset maintenance to consider efforts to reduce the severity of extreme weather event impacts (address roof leaks, install flood protection such as bunds, etc). Assessment and investment in alternative supply routes less disrupted by extreme weather events are expected. This includes considering the location of key logistics suppliers such as third-party logistics providers and contractor manufacturing operations. Financial effects Current: This climate-related risk had no material impact on CSL’s financial position, financial performance and 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 of this risk by considering the impact of extreme weather events on physical assets, including structural damage to facilities, equipment damage and temporary reductions in site productivity. The assessment included estimated repair and remediation costs for exposed assets, considering existing mitigation measures and insurance arrangements. Based on this assessment, management does not expect the potential financial effects to be material at a Group level. Anticipated (medium and long term): CSL has modelled potential repair costs associated with extreme weather events at its direct sites. The median estimated annual cost over the medium to long term is $7 million. These costs primarily relate to the repair or replacement of damaged facilities, plant and equipment. The estimate represents an annualised expected loss, reflecting the probability, frequency and severity of potential extreme weather events over the assessment period. For third-party logistics suppliers, isolated flooding events may cause temporary disruption to logistics networks in specific regions. If this risk were to occur, financial effects would be expected to arise primarily through higher operating expenses in the income statement (for example, higher freight, distribution or expediting costs) and short-term working capital movements, including inventory. No financial statement line items are expected to be materially affected based on current available information. * Informed by a 1-in-100-year (1% annual exceedance probability) flood event. Reported impacts are presented on an annualised, probability-weighted basis and therefore reflect expected annual losses rather than losses in an event year. The underlying modelled impacts represent losses conditional on event occurrence. As a result, if a flood event of this severity were to occur, realised impacts in that year may be materially higher than the reported annualised values. 147 CSL Limited Annual Report 2025/26
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