Transition risk 1 Increased carbon pricing may increase costs of materials, logistics and energy pricing Category Market and technology Description As carbon pricing mechanisms are realised, global energy and commodity markets become increasingly volatile, driving up the costs of materials, logistics and energy. 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 Carbon pricing mechanisms (including carbon taxes applied by regulators and the costs suppliers pass along to CSL as they transition) increase costs to the products and services procured by CSL. The increase in costs to maintain existing operations erodes CSL’s profitability. CSL expects exposure to this risk to be concentrated across the Group’s plasma collection network and energy-intensive manufacturing operations, including plasma fractionation, and manufacturing facilities in Australia and North America over the short to medium term. Adaptation measures Current: CSL partners with its top suppliers and assists them in setting science-aligned emissions targets. This reduces the impact of carbon pricing mechanisms on CSL’s value chain. Anticipated: Supplier due diligence considers a supplier’s decarbonisation commitments and targets as part of a contract award. This is part of wider supplier due diligence but supports CSL’s holistic supplier engagement program. 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 financial effects associated with this risk by leveraging carbon price data from the Network for Greening the Financial System (NGFS) Net Zero 2050 pathway and the Group’s current operations for its key sites. Modelling considered the potential impact of increased carbon pricing on energy, considering existing mitigation actions and progress against CSL’s emissions reduction targets. Due to the nature of CSL’s operations, carbon pricing impacts are anticipated to be most pronounced in large energy-intensive manufacturing operations in Australia and North America, and CSL’s diverse plasma collection sites in North America. Through this assessment, management estimates the potential incremental annual operating expenditure impact from carbon pricing to not be material and around $25 million per annum, representing less than 1% of the Group’s total operating expenses. Anticipated (short to medium term): Over the short to medium term, increased carbon pricing may result in higher operating costs through additional supplier cost pass-throughs; however, these impacts are expected to remain manageable and broadly consistent with those already embedded in the Group’s cost base, with no significant incremental pressure on operating margins, cash flows from operating activities or cash balances. Future developments in manufacturing capacity in North America are expected to see this risk remain most pronounced in this region. Anticipated (medium to long term): Over the medium to long term, continued supplier decarbonisation, operational efficiency initiatives and progress towards CSL’s emissions reduction targets are expected to progressively moderate the Group’s net exposure to carbon pricing, notwithstanding potential increases in headline carbon prices. Sustainability Report 148 Sustainability Report
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