Transition Risk 2 and Opportunity 1 Increase climate leadership and ambitions to meet customer expectations Category Market and reputation Description Customer (including governments and health authorities) mitigation strategies for climate-related impacts are passed through requests for products and tender requirements. Risk description: Markets in which CSL operates are passing decarbonisation expectations onto CSL and its value chain through mechanisms such as tenders and regulations. CSL identified this to be a risk for some key markets in which it currently operates. Opportunity description: As part of CSL’s assessment, it was identified that our decarbonisation strategy and climate-related initiatives support competitive market access for some countries. 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 Potential risks: Failure to meet customer expectations as they relate to climate leadership either reduce or block market access. Potential opportunities: Meeting and exceeding customer expectations, including decarbonisation efforts across our value chain as measured through product disclosures, help CSL competitively secure wider market access. For the short term, we expect this risk and opportunity to be more pronounced in our European markets. Adaptation measures and strategic responses for this risk and opportunity CSL’s response to this risk and opportunity are the same. As such, the measures described below are undertaken so to address both this risk and opportunity. Current: CSL has established and communicated externally its sustainability strategy with commitments to a Healthier Environment, which include its climate ambitions and targets. CSL’s climate ambitions are set in line with its science-based near-term target. CSL is assessing the lifecycle of key products to aid in understanding and adapting their impact on the environment. Additional information on CSL’s climate initiatives can be found in the Healthier Environment section on pages 34–37. Anticipated: CSL will develop climate strategies to assist in maintaining a competitive advantage across the markets in which we operate. CSL is mindful that efforts under this opportunity are carried out cognisant of wider market requirements and internal business trade-offs (this includes cost and operational disruptions). Financial effects Current: This climate-related risk and opportunity had no material impact on CSL’s financial position, financial performance and cash flows for the financial year 2026. Where customer expectations are expected to impact CSL’s market access for the current period, CSL has appropriately met minimum requirements to maintain access. Management has concluded that this climate-related risk and opportunity 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 qualitatively assessed the potential financial effects associated with this risk and opportunity. Strengthening climate ambition has the potential to support continued access to tenders and procurement processes where environmental criteria form part of supplier evaluation, and to reinforce customer and investor confidence as climate-related expectations evolve. These impacts are inherently indirect, subject to a range of external, regulatory and commercial factors, and do not arise from a single isolated driver. As a result, the level of measurement uncertainty is such that any quantitative estimate of financial effects would not be useful to users of the report. Anticipated (medium and long term): While this risk and opportunity was not assessed over the medium to long term, CSL anticipates strengthened climate leadership will become more common across the markets in which we operate. CSL anticipates that engraining efforts to decarbonise in our value chain, aligned to science-based pathways, will maintain access to the markets in which we operate. These actions may also mitigate the risk of market access constraints or revenue loss in jurisdictions with increasingly stringent climate requirements, while alignment with emerging regulatory and capital market expectations may contribute to longer-term business resilience. Potential financial impacts may include revenue growth from expanded market access, as well as impacts on margins and operating cash flows. CSL identified the increasing climate leadership and ambition of our customers to be both a risk and an opportunity. Where a difference in impact, adaptation measure or anticipated financial effect was identified, headings noting responses are for either the risk or opportunity precede CSL’s response. 149 CSL Limited Annual Report 2025/26
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