CSL Inks Renewable Power Deal with AGL for Australian Manufacturing

12 October 2023 | Thursday | News

Global biotechnology leader CSL (ASX: CSL; USOTC: CSLLY) announced today that it has signed a Renewable-Linked Power Purchase Agreement (PPA) with Australian energy provider, AGL. AGL was awarded the contract after an extensive review of the energy market.
Image Source : Public Domain

Image Source : Public Domain

The agreement will significantly advance CSL's Scope 1 & 2 emissions reductions with all electricity used by CSL's Australian manufacturing sites matched by renewable electricity certificates. The PPA includes a provision that gives preference to generators located in Victoria to drive investment in local renewable electricity generation in CSL's home state.

"CSL is proud to progress its sustainability goals while supporting renewable electricity generation in Australia. With the addition of this agreement, beginning in January 2025, CSL will reduce its global Scope 1 & 2 emissions by approximately 23 per cent from our emissions baseline (FY19 to FY21). Our European Manufacturing sites have been using 100 per cent renewable purchased electricity since January 2023. Together with this agreement, these are important milestones that signal CSL's commitment and action to improve its environmental profile, and we will continue to explore similar opportunities throughout our global footprint," said Jeffrey Ball, CSL's Chief Sustainability Officer.

The 7-year agreement is a long-term commitment to procure from AGL electricity that is 100 per cent matched by renewable electricity certificates (which are created in respect of each quantity of renewable electricity generated by an eligible power station under the renewable electricity scheme). Initially, AGL will provide Large Scale Generation certificates, which are expected to be generated from the Macarthur Wind Farm located in Victoria. CSL has two large scale advanced manufacturing facilities located in Victoria servicing patient and public health needs in Australia and the world.

"Every organization's sustainability journey has big and small steps. This PPA is a big step for CSL in implementing one of our key strategic levers, renewable electricity, to help drive our enterprise-wide Scope 1 & 2 emission reductions. I am grateful to the team at CSL, as well as our market resource advisers Schneider Electric, and our generation and retail partner AGL, for their dedication to getting this important agreement to the finish line," Ball said.

CSL's Sustainability Strategy focuses on Environment, Social and Sustainable Workforce, with strong Governance underpinning all pillars. On the Environment pillar, CSL is focusing on integrating sustainability into business decisions, reducing carbon emissions, minimizing end-to-end production of waste through removal, reduction & recycling and is supporting similar efforts throughout its supply chain. In June 2023, CSL committed to seeking validation of its near-term company-wide emissions reduction in line with climate science with the Science Based Targets initiative (SBTi).

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