FOOD FUTURES

PEOPLE

2018 SUSTAINABILITY REPORT OUR APPROACH FOOD PEOPLE FUTURES 1

DENNIS JÖNSSON the use of fossil-based plastics in our simple, it is anything but; developing, President and CEO, Tetra Pak packages while increasing the use of validating and industrialising such renewable materials. innovations will probably take several years. Anti-plastic sentiment is growing louder and stronger globally, with particular In the meantime, we will continue to look concern most recently focused on the for ways to tackle plastic waste. We are issue of marine pollution. We agree that active supporters of the EU’s Action Plan something must be done to urgently for a Circular Economy and, in January fight the problem of plastic littering, 2018, pledged our support for the EU and we have committed to help address Plastics Strategy. This means that we the issue on two specific fronts. have committed, amongst other things, to increase the use of plastics made from First, we will support initiatives to Throughout this report, you will see renewable feedstock and to work with LEADING SUSTAINABILITY drive major improvements in waste how we map our strategy to our most industry partners to ensure that there are Our President and CEO, management and recycling important issues, and to the UN solutions in place across Europe so that Dennis Jönsson, describes infrastructure worldwide, while Sustainable Development Goals (SDGs) all components of beverages cartons simultaneously raising consumer how we are consolidating where we know we can have the greatest can be fully recycled. awareness on the importance of our long-term progress on impact. The SDGs provide an invaluable recycling and impact of littering. Of course, change doesn’t just come sustainability to build momentum common framework for organisations from within. We are at the forefront of across all industries and sectors to work Second, we have bolstered our efforts and lead the way towards a sustainable business because of our together for a better future. This work to find new packaging solutions that will secure and sustainable future. similarly focused customers. In 2018, also builds on our ongoing commitment reduce the potential for plastic litter. Tetra Pak was included on the CDP to the UN Global Compact and its 10 Right now, our particular focus is on PROTECTS WHAT’S GOOD™ is our Supplier Climate A list for the second principles, to which we have been a the small packages that we supply with brand promise. It is grounded in time. By taking action to mitigate climate signatory since 2004. attached plastic straws. It’s a very protecting food, our company’s core change in our operations and supply popular format that uses less plastic and purpose, but also extends to protecting chain and disclosing our performance has a lower climate impact than virtually people and to protecting the future of FORGING THE WAY AHEAD data, we can contribute to our When it comes to sustainability, any other portion package available, so our business, our customers’ businesses customers’ sustainability targets. and the planet we all share. It’s a promise Tetra Pak has a hard-earned reputation simply switching to alternative formats that guides and motivates us every day for working with partners to establish is not a good environmental solution. Making food safe and available the world and, as our business and the world new baselines for environmental Our aim, therefore, is to replace the over is another critical priority for our around us continues to change, so our performance. We strive to make cartons plastic straw with one made from paper, business. In Kenya, we’re working on brand promise continues to take on with the lowest environmental impact or to find a completely non-detachable a groundbreaking public-private new meaning. possible and are committed to reducing solution. Although that sounds pretty development partnership to scale

TETRA PAK 2018 SUSTAINABILITY REPORT OUR APPROACH FOOD PEOPLE FUTURES 2

up dairy development and meet the Last year, we helped get milk to 20,000 wellbeing programmes in 2017, our focus standards and environment, and to fight country’s growing demand for dairy school children in Burundi, creating a for 2018 will be noise at work and against corruption. We’re making good products in an environmentally and virtuous circle of health, development mental wellbeing. progress against all our objectives, but socially sustainable way. and school attendance. Similarly, in one particular milestone stands out for Senegal – a country where 25 percent me: since the introduction of the Forest Meanwhile, a little closer to home, in PROTECTING FUTURES of children don’t get the nutritional For Tetra Pak, protecting the future Stewardship Council™ (FSC™) label on 2017, our new Diversity and Inclusion food they need – we are working with of our planet is inextricably linked to our first package in 2007, we have now Panel developed an action plan to make local dairy farmers to get more milk ensuring the ongoing success of our produced 350 billion FSC-labelled packs, sure we fulfil our aspiration of a work into schools. This has already led to customers. As a business whose 92 billion of which were delivered in culture in which diversity is integral, an 8.8 percent increase in enrolment. packaging, processing and services 2017 alone. By communicating with evident and valued for the benefits it Meanwhile, we’re also working with solutions optimise the use of resources, consumers in this way, we are raising brings us. As a result, we now have a partners in China to set a new our position on circularity is built around the bar for sustainable sourcing across strategy and roadmap in place. benchmark for milk safety in schools. renewable materials, responsible our industry and beyond. I’m proud of achievements like these but sourcing and – through resource- – as ever – there is still more we can do. PROTECTING PEOPLE efficient products and processes – doing FROM FIRM FOUNDATIONS Early last year, we set up a Sustainability Although protecting food is the number more with less. Within this, we take a TO A SECURE FUTURE Forum to bring together our business’s one way we protect people, there’s value chain approach to recycling and Our Sustainability Forum consists of 10 collective expertise and experience much more to keeping our brand are building a wide range of stakeholder senior leaders who represent the entirety and take bigger, bolder strides towards promise than this. We want to safeguard partnerships to keep delivering progress of Tetra Pak. As this group consolidates our goals. and empower those at Tetra Pak and against our ambitious objectives. our expertise and experience, it is to support communities wherever driving progress across our business. This report describes our holistic value We continue to work to reduce our we operate. We continue to focus on optimising the chain approach to sustainability and climate impact across our business and processing, packaging and services we have structured it in chapters that I cannot overstate the fact that Tetra Pak’s value chain. Our goal is to cap our 2020 solutions that deliver sustainable value correspond to our three pillars of food, success is down to our people. More impact at 2010 levels, regardless of for our customers today, while also people and futures. specifically, this success is both rooted in business growth; in 2017 we saw a shaping the future of on-the-go and continues to depend on the diversity 13 percent decrease in greenhouse gas packaging in an increasingly of our workforce. Our business’s healthy emissions, despite a 19 percent increase PROTECTING FOOD environmentally conscious world. Our vision to make food safe and future also depends on the young talent in packages sold. Increasing our use available everywhere remains clear and we recruit and train. of renewable electricity is key to this Time and again, our approach to strong. Our processing and packaging progress. We are now at 50 percent sustainability has helped us grow while The new Future Talent Programme led to solutions provide food safety, quality, renewable electricity, which means meeting the needs of our customers. the successful hiring of 172 graduates in flavour and nutritional value, and extend we are on track to fulfil our public And when there’s room for improvement, 2017 and I’m thrilled that we’re on track shelf life. Food in a Tetra Pak package commitment to RE100 and reach we take the opportunity to learn and to hire another 218 this year. can be transported and stored for 100 percent by 2030. grow. I hope everyone at Tetra Pak several months, without the need for Our long-term commitment to health, knows they have a role to play in these Finally, in our work towards responsible either refrigeration or preservatives. This safety and wellbeing continues to deliver achievements and that they share in my consumption and production, we are significantly improves access to food for progress towards our goals. Following a excitement for the momentum being partnering with stakeholders to drive people around the world and we act to detailed analysis of our local health and created for our future. improvement in human rights, labour make sure this potential is fulfilled.

TETRA PAK 2018 SUSTAINABILITY REPORT OUR APPROACH FOOD PEOPLE FUTURES 3 AT A GLANCE

Our approach to sustainability encompasses our entire value chain, going beyond our own operations and our customers. We do this because we recognise that we can only create a more sustainable future by addressing the interconnected nature of the environmental, social and economic challenges we face. Our solutions work because they are joined up. To organise and communicate our priorities, we use FOOD. PEOPLE. FUTURES as the chapters of our sustainability story, which is built on a bedrock of good governance and corporate social responsibility.

Read more about our sustainability approach

PROTECTING Top material topics PROTECTING Top material topics FOOD • Food availability PEOPLE • Occupational health Working with our customers • Customer health and safety Safeguarding and enabling and safety and partners to make food safe • Food waste our people and supporting Our commitment to the UN SDGs and available everywhere through Our commitment to the UN SDGs communities where we operate. our innovative and market-leading food processing, packaging and service solutions.

PROTECTING Top material topics FUTURES • Supplier environmental Supporting the sustainable assessment future of our planet and the long- • Supplier water use term success of our customers. • Packaging design and resource use • Packaging renewability Our commitment to the UN SDGs • Energy use and Greenhouse Gas (GHG) emissions • Machines and equipment: waste generation • Machine and equipment: energy use and GHG emissions • Machines and equipment: water use • Packaging recycling TETRA PAK 2018 SUSTAINABILITY REPORT • Packaging climate impact OUR APPROACH FOOD PEOPLE FUTURES 4 HIGHLIGHTS FOOD 15,000+ smallholder farmers are linked In 2017, we’ve made to our Dairy Hubs strides in advancing our 72 million commitments to protect children in 58 countries received milk or food, protect people and other nutritious beverages in Tetra Pak protect futures. Here are packages during 2017 some of the achievements we are most proud of 55+ years supporting school this year. feeding and nutrition programmes

PEOPLE 100% manufacturing site compliance to global occupational health and safety standard OHSAS18001 95% of our employees have had a performance evaluation FUTURES ~29 learning hours taken up by each of 13% our employees on average reduction in greenhouse gas emissions, despite 19 percent increase in packages sold (2010 baseline) ‘A’ Listed for both CDP’s Forests and Climate Supply Chain programmes A pledge of support for the European Commission’s Plastics Strategy, part of the EU Action Plan for a Circular Economy TETRA PAK 2018 SUSTAINABILITY REPORT OUR APPROACH FOOD PEOPLE FUTURES 5

From that, we can figure out what we Last year, we helped feed 72 million must start doing today. One of the school children in 58 countries through issues rising to the top of the agenda our school feeding and nutrition is plastic, driven by new attention to programmes. MARIO ABREU the massive problem of plastic ocean Vice President, Sustainability Our DEEPER IN THE PYRAMID strategy pollution and litter. We know that we and Chairman of the is helping to bring safe, healthy and must be part of this conversation Sustainability Forum nutritious products within the reach because although it is a small amount, of millions of low-income households. we do use plastic in our products. While we are still working out exactly how Our Diversity and Inclusion Panel is Tetra Pak will be contributing to solving working across the organisation to this problem in the long run, we have make sure our recruitment, training already pledged our support for the and development is equitable and EU’s new Plastics Strategy and made a provides the opportunity for better commitment to develop a paper straw gender balance and inclusion. So far, by the end of 2018. this has included changes in policy Mario Abreu is Tetra Pak’s Tetra Pak has been a very successful such as doubling flexible working company for the past six decades. Vice President for Sustainability. Q/ What have been the key arrangements and new initiatives like If we want to continue this success in achievements of sustainability pilot trainings on cognitive bias. Having joined the company in the future – which means continuing at Tetra Pak in 2017? 1999, Mario took up his current to fulfil our mission to make food safe A/ We support SDG 13 – taking urgent Q/ How does our sustainability role in 2015. and available everywhere – we must action to combat climate change and its work link to that of our customers continue being socially and impacts – and have been working in this and what is the impact? Q/ What does sustainability environmentally sustainable. area for many years. In 2017, our climate A/ Linking our sustainability agenda mean for Tetra Pak? impact reduction targets were validated with that of our customers is one of the Three words: Food. People. Futures. Q/ What impact has the Forum had? A/ by the Science Based Targets initiative biggest opportunities for us to drive Protecting food, protecting people and A/ Tetra Pak has been looking at the – an important achievement. In line with change, so we proactively work with protecting futures is at the core of our science of environment for decades and SDG 15 (Life on Land), we are reducing them to find out how we can best promise to society. since 2010, protecting the environment has also been one of our business’s four our dependence on fossil materials and support them. Our customers want to We have made great strides forward key strategic priorities. Which is all to we have now delivered more than half a make their operations as efficient as over the years. Early in 2017, we say: we’re not new to this. The Forum’s billion fully renewable packages. possible, which means reducing water took a further step when we set up impact – so far – has broadened our Similarly, we are promoting sustainable and energy usage, carbon emissions, a Sustainability Forum, which brings conversation around sustainability to a forest management through our FSC- and food and packaging waste. We together our collective expertise and level and scope we didn’t have before. labelling programme, which is probably work on all these fronts to offer our experience. Its role is to understand one of the biggest in the world. customers the best possible solutions, and distil different stakeholder Looking ahead, the Forum is setting with the smallest carbon footprint. expectations and formulate a strategy ambitious goals about where we want Read the full interview with Mario for a sustainable business going forward. Tetra Pak to be in 2025, 2030 and beyond.

TETRA PAK 2018 SUSTAINABILITY REPORT OUR APPROACH FOOD PEOPLE FUTURES 6 DEVELOPING OUR SUSTAINABILITY APPROACH

Tetra Pak is a global business, HOW WE DETERMINE Our pillars Our 14 top material topics and as a result there are many OUR APPROACH Sustainability is part of our corporate Food ◆1 Food availability sustainability issues to address How we work across the value chain to ensure food is available, accessible and affordable, strategy, which is defined by our by consumers everywhere. and opportunities to explore. Strategy Council. In 2017, we created ◆2 Customer health and safety the Sustainability Forum – a group of How we ensure that our products and services are assessed for any potential health and HOW WE DECIDE WHAT 10 senior leaders from across Tetra Pak safety impacts during their lifecycle. MATTERS MOST who represent a wide range of areas of ◆3 Food waste To objectively select the issues that How our food processing and packaging solutions and programmes help decrease food responsibility. The Sustainability Forum loss and wastage across the value chain. matter most to our stakeholders and defines our sustainability work and the to our business, we apply the Global areas this work is focused on. People ◆4 Occupational health and safety Reporting Initiative (GRI) principle How we ensure our people are free from harm in every project and activity. of materiality. In 2018, the Forum will be taking our sustainability work to the next level. Futures ◆5 Supplier environmental assessment During several months at the end of 2016 How we conduct our due diligence process and work with our suppliers to ensure that This will include developing a three-year negative environmental impacts are prevented and mitigated across our supply chain. and early 2017, we undertook our first action plan. ◆6 Supplier water use full global materiality assessment and How we conduct our due diligence process and work with our suppliers to ensure negative identified 14 top material topics – the impacts associated with water use are prevented and mitigated across our supply chain. HOW WE CHECK OUR APPROACH areas in which we can have the greatest ◆7 Packaging design and resource use Verification and assurance are essential How we integrate environmental risks and opportunities into our product design and positive impact for our customers, our parts of our process. To that end, our innovation, including renewable content, recyclability of packaging, and weight optimisation. business and society. These are shown ◆8 Packaging renewability practices, processes and performance How we incorporate materials from renewable sources into our packaging products. on the right and referenced throughout are externally verified and our GHG this report. We expect to conduct a new ◆9 Energy use and GHG emissions emissions data is externally audited. How we reduce the impact of our own operations on climate change. assessment starting at the end of 2018. Please see p.34 for a full list of our ◆10 Machines and equipment: waste generation How our food processing, packaging and service solutions help our customers minimise We have also used the UN SDGs as external verification partners. This wastage and spoilage. a guidance in the prioritisation of report follows the materiality approach ◆11 Machines and equipment: energy use and GHG emissions our sustainability efforts, and have of the GRI Standards, the most widely How our food processing, packaging and service solutions help our customers reduce their highlighted this throughout the report. adopted international framework for impact on climate change. sustainability reporting. ◆12 Machines and equipment: water use How our food processing, packaging and service solutions help our customers keep water consumption down. ◆13 Packaging recycling How we promote and increase recycling through supporting infrastructure development, raising consumer awareness about used beverage carton (UBC) recycling, and working with partners to boost business opportunities for recyclers. ◆14 Packaging climate impact How we measure and manage the CO2 footprint of our packaging products.

Read more about our materiality assessment process

TETRA PAK 2018 SUSTAINABILITY REPORT OUR APPROACH FOOD PEOPLE FUTURES 7 GOOD GOVERNANCE

We believe that good corporate and responding to risks. To secure an governance is the bedrock of a effective and transparent internal control TETRA PAK GOVERNANCE FRAMEWORK environment we have implemented a sustainable and commercially new Governance Risk Compliance (GRC) successful business. It is the basis system. This creates a single platform for MANDATE INTERNAL CONTROL ORGANISATION AND of our brand promise: PROTECTS risk management, bringing mitigating AND VALUES ENVIRONMENT DECISION-MAKING STRUCTURE WHAT’S GOOD™, and is at the policies, procedures and detailed heart of all our stakeholder controls together with assurance processes, assessments and reports. Tetra Pak Charter relationships. Risk Management Top Decision-Making of Responsibility While core values shape our corporate culture and guide our behaviour OUR GOVERNANCE FRAMEWORK internally and externally, our Code By providing the foundation for our Group policies, of Business Conduct sets out the procedures and guidelines strategy and approach to leadership, Core Values Global Leadership Team company’s position on working Global process controls good governance ultimately helps us Strategic initiatives fulfil our vision to make food safe and conditions, discrimination, available, everywhere. Our governance confidentiality, conflicts of interest, framework guides us in behaving financial reporting, compliance, ethically and responsibly. This includes corruption, bribery, child exploitation Code of Business Conduct Assurance Processes Councils complying with relevant regulations and and environmental issues. legislations and delivering on our brand To build trust and transparency with our promise. A Global Leadership Team customers and as part of our approach is responsible for implementing the to responsible sourcing with suppliers, A GOLD RATING FROM ECOVADIS framework, supported by a Corporate we are members of the Supplier Ethical In 2018, Tetra Pak received our first Governance Office and a network of Data Exchange (Sedex), a not-for-profit Gold rating from the sustainability local governance and risk officers. membership organisation dedicated to ratings platform EcoVadis. EcoVadis driving responsible and ethical business Our charter of responsibility outlines evaluates companies’ corporate social practices in the supply chain. We are also the roles and responsibilities of the responsibility (CSR) performance across part of EcoVadis sustainability ratings Tetra Laval Group Board and Tetra Pak. 21 criteria around the four themes of and scorecards to help our procurement The framework also includes a environment, fair labour practices, ethics/ teams monitor environmental, social and comprehensive risk management fair business practices and supply chain. methodology and system with related governance issues in the supply chain. As part of our customers’ supply and mitigating policies, procedures Read more about governance and global processes for managing chain, we provide data on our CSR performance to a number of our customers. Our Gold rating means that we’re in the top 3 percent of all suppliers evaluated during 2017. TETRA PAK 2018 SUSTAINABILITY REPORT OUR APPROACH FOOD PEOPLE FUTURES 8

PROTECTING FOOD Working with our customers and partners to make food safe and available everywhere through our innovative and market-leading food processing, packaging and service solutions.

Reducing food loss and waste is one of the founding principles of our business. Our leading processing and packaging equipment keeps food from being spilled or spoilt in the early stages Our products and services play a key of production, while our packaging role in addressing one of the most solutions help prevent it perishing pressing development challenges of our without the need for preservatives. time – food security. By working closely Through our work with our partners along the value chain, We also work with our customers to under the Food pillar, we can help make safe, nutritious and help educate consumers on how to we contribute to flavoursome products accessible to prevent food from spoiling. Our work SDGs 2, 12 and 17. more of the world’s rapidly growing under this pillar contributes to tackling population, including the millions who the global challenge of food security live in remote locations without access by helping to build sustainable food to refrigeration. value chains.

TETRA PAK 2018 SUSTAINABILITY REPORT OUR APPROACH FOOD PEOPLE FUTURES 9

ROBERTO FRANCHITTI Vice President, Development & Engineering

sense sustainability actually makes for Q/ How are you making Tetra Pak – and for our customers. improvements to the sustainability of your platform? A/ We are constantly looking at the Q/ Any exciting partnerships whole system for the smallest to tell us about? opportunity for improvement. For A/ In 2017, Just Water, a responsibly example, we recently launched the sourced and bottled water brand in the USA, chose the Tetra Top® package, Roberto joined Tetra Pak in Q/ What is Tetra Pak’s purpose Hyperspeed Filling Machine, which can produce 40,000 packs per hour, nearly made out of FSC-certified paperboard 2007 and as Vice President, when it comes to food waste? and bio-based plastic (for the cap and Our company’s purpose is built on double the speed of the previous A/ top) as the lower carbon footprint Development & Engineering, the premise of reducing food waste. version. Some of our customers are alternative. I’m extremely proud that a he focuses on designing, It goes to the core of why we exist, producing 950,000 packs per day, on company with this kind of ethos selected developing and launching and why we’ve been so successful. just one filling line. So when we make a Tetra Pak system. new products and driving Through this work, we contribute a ‘small’ 0.01% improvement per pack – to SDG 2 – Zero hunger. Thanks to to energy use, CO2 output or whatever the company’s sustainability Q/ What are you most excited initiatives through the R&D Tetra Pak processes and packaging, – it adds up to make a big difference. our customers can provide a remote about in the next year? I’m excited about the opportunity process and into market. village with a supply of affordable, Q/ What’s driving this continuous A/ we have to really address some of the nutritious food. This one example search for small improvements? world’s food packaging challenges, Q/ Can you tell us what you do? illustrates why Tetra Pak was relevant A/ The awareness and desire for from improving shelf life to advances A/ I head up a 600-strong team of 67 years ago, when the company was progress on sustainability issues is much in barrier materials. We have a primarily technical staff and scientists. founded, why we’re still relevant today, higher than ever before – from society, responsibility because of who we are, Our job is to design and develop and why we’re going to be even more legislators and many of our customers. and we have the resources, the talent Tetra Pak packaging solutions – that relevant in the future. Our global customers are absolutely is, the cartons people have in their driving the agenda from a sustainability and the drive to make a real difference. fridge at home, plus all the packaging perspective. Joining the Sustainability In my team, sustainability has moved equipment our customers have at their Forum was also a real eye-opener for me. right to the top of our agenda. production sites. I’ve come to realise how much business Read the full interview with Roberto

TETRA PAK 2018 SUSTAINABILITY REPORT OUR APPROACH FOOD PEOPLE FUTURES 10 FOOD SAFETY, QUALITY AND WASTE

FOOD SAFETY contact legislation. Plant automation and Consumers rightly expect food to be integration means we can ensure quality safe – and so do distributors, retailers control as a product goes along the and legislators. For our customers, production line. Quality can also be that means being in full control of compromised during transportation production, from the sourcing of raw and distribution. We therefore carry out materials to the retailer’s shelf. rigorous tests across the value chain to ensure that products are fully protected. Since launching the Tetra Classic ® Aseptic carton in 1961, we have come Read more about protecting food quality up with hundreds of new packaging Material topic: Customer health and safety solutions that keep food safe from harmful bacteria. We are also pioneers FOOD LOSS AND WASTE in food safety technologies such as Reducing food loss and waste is one of ESTABLISHING STANDARDS IN MILK SAFETY AT SCHOOLS IN CHINA juice pasteurisation and ultra-high the founding principles of Tetra Pak and temperature treatment. also one of the global challenges facing After more than ten years of our partners, we inspect and evaluate development, China´s National School each potential model school on staff Read more about ensuring food safety the world today. Around a third of food that’s produced is lost or wasted, which Milk Programme has a regulated training, operational standards, safety Material topic: Customer health and safety in turn accounts for around 8 percent of standard system for milk sourcing protocols and issue management, man-made greenhouse gas emissions. and production. However, there are storage, distribution, and carton FOOD QUALITY still challenges in ensuring full safety recycling. Today’s consumers want their food to Our cutting-edge equipment and for drinking milk in schools. For In this way, we are helping create high be consistent in taste, colour, texture processes set the bar for keeping food example, school staff need to learn standards for milk handling, while and nutritional value. Our packages from being spilled or spoilt, and our about lactose sensitivity, how to raising knowledge and awareness of are designed to protect and preserve packages are designed to prolong the correctly store milk, how to distribute milk as a safe and nutritious beverage. food to meet these expectations. life of food and help prevent it from the milk to students and how to perishing. For example, when one of our The programme is also a platform for All Tetra Pak processing and packaging recycle used cartons. customers in Japan realised their older dairies to work with schools and local equipment is designed to meet the most consumers were struggling to finish a Together with the China Association authorities to create long-term advanced hygiene standards, satisfy all litre-sized product, we were able to offer of Student Nutrition and Health partnerships. legal obligations and minimise waste. Promotion and the Dairy Association half-litre or 900ml alternatives, thereby In 2017, we certified 53 schools as Ensuring quality starts with the rigorous of China, Tetra Pak works in identifying reducing food waste. “Promotion Model Schools”. Our aim auditing of raw materials suppliers. All and certifying “Promotion Model is to certify another 50 schools by the base materials used in our packaging Read more about reducing food loss and waste Schools”, creating an operational end of 2018. are fully compliant with relevant food Material topic: Food waste standard that can be shared with nearby schools. Together with Read more about our work in schools in China

TETRA PAK 2018 SUSTAINABILITY REPORT OUR APPROACH FOOD PEOPLE FUTURES 11 FOOD AVAILABILITY

We believe the most effective DAIRY DEVELOPMENT way to tackle the global food AROUND THE WORLD security and nutrition challenge is to build sustainable food value chains.

THE CHALLENGE The UN predicts that there will be around 9.7 billion people on the planet Honduras by 2050. Income levels will also increase, 1 hub Bangladesh 5 hubs putting even more pressure on food Senegal Nicaragua 1 hub production, land and water sources. 2 hubs Sri Lanka To feed this larger, urban and wealthier 2 hubs Kenya population, food production (net of 2 hubs food used for biofuels) must increase Zambia by 70 percent. 1 hub

OUR RESPONSE Food for Development School feeding and nutrition Dairy development Food affordability Tetra Laval Food for Development For more than 55 years, we have With the global demand for milk set to With rising levels of development and drives the development of the dairy and supported school feeding and nutrition overtake supply within a decade, the urbanisation in many countries, we are food value chain through cooperation programmes. We offer our partners dairy industry is facing immense pressure. seeing a shift in demographics. We need with customers, governments, practical support in implementing Our Dairy Hub model links smallholder to scale our partnerships to ensure that development cooperation agencies, and evaluating school feeding farmers in emerging economies to dairy the poorest people are not left behind funding organisations and NGOs programmes, while also advising processors, with Tetra Pak offering the and unable to access good quality, safe, all over the world. on food safety and quality. technology and ‘hands-on’ practical healthy food. Our DEEPER IN THE Read more about Food for Development In 2017, 72 million children in 58 countries knowledge and training. This helps them PYRAMID strategy is helping to bring received milk or other nutritious to build a long-term supply of locally- safe, healthy and nutritious products to beverages in Tetra Pak packages produced quality milk without raising the millions of low-income households. in their schools. cost of collection. We currently operate Read more about food affordability 14 hubs in 7 emerging economies around Material topic: Food availability Read more about school feeding and nutrition the world and we are continuing to expand this work. Read more about dairy development

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The Tetra Laval Food for Development IN ACTION Dairy Specialist is currently training Fighting malnutrition with Lacthosa’s Extension Service Officers – a milk in Honduras THE INITIATIVE Building on our experience in other team employed to encourage dairy farm countries, Tetra Laval Food for competitiveness by getting farmers to Development and Tetra Pak Central adopt best practices – on feed and America & Caribbean implemented animal nutrition, milk hygiene, quality, a Dairy Hub project with local animal health, and reproduction. customer, Lacthosa. “We are very happy about the joint work “We have joined this great initiative we have been developing in the Dairy and have reaffirmed our commitment Hub project together with Tetra Laval to the dairy sector. As a company, we Food for Development and Tetra Pak. have taken on the challenge of This has contributed greatly to the supporting dairy farmers to deliver strengthening of our relations with our healthy products to Honduran families.” milk suppliers. “So far, 15 of our Extension Service The dairy sector in Honduras THE CHALLENGE – Elena Kafie, Vice President, Lacthosa. has the potential to boost Food security and nutrition are key Officers and more than 100 smallholder challenges in Honduras. According Tetra Laval Food for Development has farmers have been trained with the childhood nutrition and improve to the World Food Programme, the helped Lacthosa conduct initial farm knowledge provided by Tetra Laval farmer livelihoods. We are country has a 68 percent poverty rate assessments and farmer training. Food for Development. working with our customer and one in four children suffer from We have consolidated baseline data “It is already showing an Lacthosa and the Honduran chronic malnutrition. in three regions, and the project now improvement in the milk quality” government to revitalise the dairy Although agriculture is the most covers 1,013 farms. – Christopher Millensted, Head, sector by providing technical important economic sector in Supplier Development, Lacthosa. assistance and technology Honduras, the dairy sector is quite THE VALUE For smallholder farmers, the primary transfer to smallholder farmers. unevenly developed (only 35 percent LOOKING AHEAD of the yearly milk production is value is that Lacthosa will collect their We are aiming to reach a further industrially processed). With a low milk and provide them with access to 200 farms with this initiative in 2018. average yield of 3.4 litres per cow market. Over time, this programme will increase per day, cattle are often used for “As a milk supplier of Lacthosa, milk quality, quantity, and smallholder both beef and dairy production, I am grateful for the support and farmer profitability. which affects farm profitability in advice provided by the Dairy Hub the long term. The country’s average project. I have witnessed the evolution milk consumption is also low. we have had, which is directly reflected today in delivering better quality milk.” – Héctor Ferreira, dairy farmer. TETRA PAK 2018 SUSTAINABILITY REPORT OUR APPROACH FOOD PEOPLE FUTURES 13

IN ACTION A new programme to improve children’s nutrition and school attendance in Burundi while until the programme can depend THE VALUE on local sourcing of food – the preferred The school milk programme in Burundi and sustainable model. has just started and will contribute to an improvement in health, development THE INITIATIVE and school attendance by providing Following an official policy paper from nutrition to the children. the World Food Programme (WFP), that According to the WFP, when children supports the use of UHT milk in their receive a standard meal of 401kcal for school feeding operations, Tetra Pak is 200 days a year, they gain an average now part of a school meals programme weight of 0.37 kg more than children to boost nutrition for 20,000 children who are not part of the programme. in central Burundi. Milk is new on the school THE CHALLENGE In pre-school meals programmes, menu in Burundi as part According to the World Food The EU is providing €5 million for the children gain an average height Programme (WFP), only 28 percent of of a growing school food WFP to purchase up to one-third of of 0.54 cm per year, compared to Burundi’s population is food-secure, the required food commodities from children that don’t participate. programme. We are and as many as 58 percent are local smallholders in Gitega province. supporting our customer chronically malnourished. Despite a In collaboration with Tetra Pak, our LOOKING AHEAD Modern Dairy Burundi, to help gradual return to peace, food security customer, the newly founded local The next step is to stabilise the boost the nutrition of 20,000 has not improved in recent years. company, Modern Dairy Burundi, programme by further developing the children and contribute to a Without proper nutrition, children can is supplying fresh milk in Tetra Fino® capacity of local stakeholders to take perform poorly at school, drop out of Aseptic 200ml packages. ownership in the long-term. positive cycle of health, classes and become ill later in life. development and school “We are very pleased with our Material topic: Customer health and safety attendance. A school feeding programme is in place, cooperation with Tetra Pak and Food but it will take time for local stakeholders for Development, which has helped to become skilled enough to take us achieve our mission of providing full ownership. In particular, tough safe and high quality UHT milk to the conditions for smallholder farmers make school children in Burundi.” it difficult for them to meet the schools’ – Juma Mohamed, CEO, demand for milk. As a result, it will be a Modern Dairy Burundi.

TETRA PAK 2018 SUSTAINABILITY REPORT OUR APPROACH FOOD PEOPLE FUTURES 14

PROTECTING PEOPLE Safeguarding and empowering our people and supporting communities where we operate.

We take responsibility for protecting the health and safety of our employees, partners and customers and have made it a key business priority. Our work to protect people extends to our communities, for example through our work around child health and People are critical to our success nutrition, sustainable livelihoods and Through our work under the and that starts within our own business. economic development. We are People pillar, we contribute Ultimately, it is our employees who focused on supporting those who live to SDGs 8 and 17. deliver on our vision. That’s why their and work where we operate, and we learning and development is so strive to play a responsible and active important, as is ensuring a fair, diverse role at a local level through a wide and inclusive work environment. range of initiatives.

TETRA PAK 2018 SUSTAINABILITY REPORT OUR APPROACH FOOD PEOPLE FUTURES 15

for everybody, not just women. We underway, and many in the pipeline. Here GABRIELE defined action plans to remove these are a few examples… We are doubling YOUD barriers and create a level playing field flexible work arrangements across our Director, Future Talent for everyone. That’s when we broadened company. By the end of next year, every & Future Work the scope and changed the name of the country with more than 50 employees will Panel to Diversity and Inclusion. offer some form of flexibility around working time, place or leave. It is important to understand that our company strategy actually demands We are already transparent on career diversity of approaches. We have a wide opportunities, and provide training and mix of customers, and we want to be the guides to help everyone progress. In 2017 most innovative and integrated company (Q1), we offered career development in our field. To stay ahead of an ever- webinars, which we are following up with changing environment, you constantly stories about how different people need new ideas and new approaches manage different careers. coming in. And you don’t get that We are launching a pilot project on without diversity. Gabriele joined the global Human have inclusion can diversity do training around cognitive diversity and Resources group at Tetra Pak in its job. bias in the workplace. We want to Q/ So where does inclusion come in? understand the behaviours and thinking 2010. In 2017, she became Director Q/ You set up the Diversity & You can’t have one without the A/ patterns that lead us to ‘sameness’, so Inclusion Panel last year – what other! If we really want diversity in our of Future Talent and Future Work, that we can overcome them and make inspired this, and what sort of insights company, we must allow differences to and is busy working on various the most of different approaches. projects to create a more modern has the panel uncovered so far? be heard and to come to fruition. work environment across our A/ Last year, we took a close look at If you don’t balance diversity with Q/ How will we know it’s working? company. She is also a member of gender balance in the workplace. inclusion, you get group-think, conflict, A/ We have created a Desired Future We were trying to tackle two stubborn Tetra Pak’s Sustainability Forum. dissatisfaction and the struggle of not State for diversity and inclusion at issues: female representation in fitting in. Tetra Pak, made up of several our senior leadership, and female components. For each of these, we have Which is why the key elements of our Q/ What does diversity and inclusion representation versus the external identified metrics that allow us to track diversity strategy today are a business mean to Tetra Pak? market. Despite our hard work, we and measure our progress. To me, perspective on diversity and a tight Diversity means a workforce with the weren’t making the progress we wanted. diversity means building a workforce focus on including people. full range of differences. Inclusion means So we decided to dig deeper, going from a range of different demographics we respect these personal differences beyond the numbers to look at the (or backgrounds), while inclusion is about in our organisation, giving different cultural barriers and enablers that were Q/ What actions are we taking to respecting the personal differences that approaches support and room to grow. at play. We set up a Gender Advisory drive diversity and inclusion? come from this. Diversity can only do its We have a strategy and roadmap in Everyone is engaged, contributing and Panel to do this. Once we identified the A/ job when we also embrace inclusion. has access to opportunities. Only if we root causes, we saw they were an issue place, with many actions already Read the full interview with Gabriele

TETRA PAK 2018 SUSTAINABILITY REPORT OUR APPROACH FOOD PEOPLE FUTURES 16 SAFE, HEALTHY WORKPLACES

We strive to ensure that BUILDING A SAFETY CULTURE This increase in accidents was mainly TRACKING OUR IMPACT individuals are free from harm The nature of our operational work and at our manufacturing sites in Europe. We continue to monitor how we manage the equipment our people work with As a result, we launched a programme OHS through an annual self-assessment during every project and activity. brings with it safety risks, including called “Good to Great”, which aims to review led by our corporate governance We believe that working as a machinery safety, working at height, re-emphasise and deliver the high function. Our manufacturing sites are team is the best way to achieve forklift trucks, cutting and welding, standard of health and safety we expect audited to OHSAS 18001 and our formal our aim of zero accidents and driving, heavy lifting and manual at Tetra Pak. programme of assessment visits has now handling. We are working hard to build started, with the target to cover all work-related illnesses. Despite the slight increase in LTAR we the kind of safety culture that can reduce non-manufacturing sites by end of 2019. have improved our processes. For these risks. OUR APPROACH example, in Q1 2017 we launched a To make sure our OHS teams can fully Safe and healthy, every day, everywhere: Read more about our safety culture corporate procedure and an associated support our businesses, we have further our company-wide approach emphasises campaign around heavy lifting. enhanced our OHS team by recruiting that occupational health and safety SAFETY PERFORMANCE Services and Processing OHS managers In 2017, we reported zero fatalities and In 2018, we are starting to measure (OHS) does not only apply to factories – for each of our five regions. Every factory achieved 100 percent manufacturing site absenteeism, and will keep track of it affects all of us. In 2017, we reached now has a three-year plan on OHS and compliance to OHSAS 18001. The global OHS data separated by region. We 100 percent manufacturing site our focus for 2018 will be to support sites Lost Time Accident Rate (LTAR) increased plan to start reporting on this in our compliance with the global OHS to meet their goals. slightly from 2.10 at the end of 2016 to next report. standard OHSAS 18001. We are close 2.29 in 2017, meaning that there were Safety And Me (SAM) is a ‘train the to the full implementation of our global 2.29 days lost for every million working trainer’ approach to embed a positive OHS management system, and track hours last year. safety behaviour model for factory OHS data as we strive for continuous working. Following its rollout in 2016, improvement. We also started a global LTA rate 12-month average LTAs days per million hours worked all supply chain factories were running OHS assessment programme for all our SAM by the end of 2017. We continue other non-manufacturing sites. OHS 10 to explore the best ways to monitor 2015 2016 2017 remains critical to our business strategy 8.29 behavioural change across our diverse and our approach is underpinned by 8 sites and markets. our core values. 5.90 Material topic: Occupational health 6 4.75 4.86 and safety 4.33 3.87 4 3.58 3.69 3.62 3.57 3.18 3.29 3.26 3.28 2.86 2.70 1.83 2.02 2

0 Packaging Additional Supply chain Processing Capital Manufacturing materials operations systems equipment total production sites manufacturing

Scope: all incidents involving Tetra Pak employees and temporary workers. TETRA PAK 2018 SUSTAINABILITY REPORT OUR APPROACH FOOD PEOPLE FUTURES 17 HEALTH AND WELLBEING

We have a holistic and HEALTH ACROSS OUR COMPANY centralised approach to health All manufacturing sites currently must ensure full compliance with legally and wellbeing at Tetra Pak. required medical examinations for We use central governance high-risk groups. Many manufacturing and run a number of initiatives sites also focus on employee health and to drive progress. In 2017, we wellness more broadly, from offering conducted a detailed analysis regular hearing and eyesight tests, of our local health and wellbeing routine vaccinations and ergonomic risk assessments, to stress management programmes and agreed to programmes, complementary therapies, focus on noise at work and advice on nutrition and healthy living, mental wellbeing. and alcohol and drug support. PILOTING MENTAL WELLBEING PROGRAMMES AT TETRA PAK For example, in 2017 Tetra Pak Singapore In 2017, we ran local initiatives in We also ran mental health risk ran a programme to improve health and France and the UK to test different assessments in the UK, and identified wellbeing. The programme was called approaches to managing mental ‘Wellbeing Champions’ who have the Virgin Pulse Global Challenge and wellbeing. stepped up to help build a healthy over 450 employees joined in. Over the and supportive work environment • In France, all directors at our course of 100 days, the programme went for all our Tetra Pak colleagues. Guerin Systems site attended much further than exercise, providing awareness workshops and Building on our learnings from these participating employees with learning contributed to an audit of their initiatives, in 2018 we are implementing opportunities on the importance of workplace ‘mental ecology’. a ‘train the trainer’ approach to provide sleep, nutrition and mental wellbeing Working with Human Resources our local HR managers with the skills to a healthy lifestyle. country representatives, they to be able to run and support mental Material topic: Occupational health and safety developed psychological risk wellbeing programmes in their plans and negotiated an own countries. This phase of the agreement around recent ‘right programme is currently focused to disconnect’ legislation on Europe and Japan.

• At our Chester site in the UK, we Read more about how we manage created a company stress policy mental wellbeing and provided mental health training for managers and all employees – including how to recognise, understand, manage and cope with stress.

TETRA PAK 2018 SUSTAINABILITY REPORT OUR APPROACH FOOD PEOPLE FUTURES 18 DIVERSITY AND INCLUSION

We aspire to a work culture in • A talent advantage: Maximising our BALANCED GENDER which diversity is integral, evident performance by widening our access REPRESENTATION to talent, creating an environment We want our business to keep and valued for the benefits it where everyone is engaged and progressing towards balanced gender brings us. Our business’s ongoing performs at their best representation as quickly as possible. success is rooted in maintaining • A decision-making advantage: At the end of 2017, for the fourth year a truly diverse workforce, where Leveraging the power of diverse running, 22 percent of our employees every employee is respected, perspectives and experiences to (23 percent of middle managers) included, engaged and fully unlock creativity and performance; were women. challenging ourselves to think and contributing. OUR STRENGTHS AND WEAKNESSES Our new action plan for diversity and act differently. inclusion will help us step up and tackle The Diversity and Inclusion Panel’s the barriers that are keeping women THE DIVERSITY OUR DESIRED FUTURE STATE performance review helped us to from achieving their full potential AND INCLUSION PANEL With this business case in mind, we identify areas of strength and with fresh focus in the months and During 2017, our Diversity and Inclusion created a ‘desired future state’, which opportunity across our business. years ahead. We remain objective, Panel – a representative group made describes a respectful and inclusive transparent and proactive when it up of 19 men and women from across Our strengths include a positive work environment, company-wide comes to increasing the number of Tetra Pak – conducted a qualitative culture of empowerment and engagement and dialogue around female future leaders. and quantitative review of our diversity and its value, and an collaboration, good scores on company’s performance on diversity organisation whose diversity reflects engagement and a strong mix of This is embedded within our talent and inclusion issues. our business and consumers. nationalities across all levels of our review process, which is based on ability business. When it came to gender and potential, above all other attributes. They articulated the following business We have put in place a detailed baseline issues, we hire and promote women case for increasing diversity and that will allow us to monitor our progress well at management level and maintain Read more about diversity and inclusion inclusion at Tetra Pak: as we implement our action plan. Our strong investment in women through • A competitive advantage: work will focus on increasing flexible development programmes. Strengthening our customer value working arrangements, manager proposition by offering a diverse training, career development training Our opportunities for change include team with perspectives that match and increasing the focus on diversity increasing transparency in our career the evolving needs of our customers and inclusion in our talent review and development process and improving and consumers recruitment process. We will also access to networks and work-life improve how we communicate these programmes. We need to hire and issues both internally and externally. develop more women below management level and increase the percentage of women at senior management level.

TETRA PAK 2018 SUSTAINABILITY REPORT OUR APPROACH FOOD PEOPLE FUTURES 19 TALENT, ENGAGEMENT AND RECOGNITION

TALENT EMPLOYEE ENGAGEMENT MANAGING OUR HIGH-PERFORMANCE CULTURE We want to attract the very best people, Our success depends on our people and we want our employees to enjoy performing at their best – and for this In 2017, we successfully launched Onboard: facilitating the arrival of new long and rewarding careers with us. they need to feel motivated, connected myFuture, a fresh approach to people employees through our online portal. This means building a high-performance and valued. By making sure our management that aims to improve publishing all job profiles so culture that encourages people to thrive employees are engaged, we create and personalise learning and Develop: employees can assess their suitability and succeed. a culture of personal responsibility, development across our diverse and plan their next career move. diversity and innovation. workforce. Today, 95 percent of our employees have had a performance creating conversation around LEARNING AND DEVELOPMENT We ran our biennial employee Perform: At Tetra Pak, every employee plays evaluation, at least one annual performance, bringing consistency and engagement survey in 2017. As with their part in delivering our strategy. Our discussion, and their performance fairness to our management and our last survey in 2015, we had a high investments in leadership and technical objectives set. We also publish our evaluation processes. participation rate (84 percent) and high competencies – from recruitment to entire job structure, including all job overall engagement scores (83 percent). aligning compensation retirement – support people in building profiles and open positions. Reward: When we compare ourselves to ranges across job levels and pay productive careers with us, and are other high-performing organisations, The visual below outlines and progression with the market. therefore investments in the success over 94 percent of participating describes the six stages of a career of our business. conducting exit surveys to employees rate our way of working on lifecycle at Tetra Pak Leave: collect feedback so we keep improving Read more about learning and development environmental responsibility significantly helping internal candidates Tetra Pak. above the norm. Recruit: see and apply for job openings. Since the launch, we have added four We saw some improvement around new languages to myFuture, bringing career development issues – an area we the total to nine. We have also have been working on (for example, expanded the modules to our blue- through our investment in the myFuture collar population (currently 27 percent programme). We continue to focus on are using it) and are adding an improving our process efficiency and onboarding module to ensure a managing change. We still have work successful start for all our new hires. to do in these areas; both are critical for our long-term success. After taking a close look at what works and what doesn’t, we are finalising action plans that will help tackle some of the issues that have been concerning people.

Read more about employee engagement

TETRA PAK 2018 SUSTAINABILITY REPORT OUR APPROACH FOOD PEOPLE FUTURES 20

2. Technical: a 12-month programme with IN ACTION the focus of developing engineering Future Talent capabilities in an accelerated way. “I was surprised by the genuine 3. Internship: a variable-length induction appreciation my colleagues have for phase with the focus of providing Tetra Pak and its products and the way a technical foundation for students they embrace the company values. I was before embarking on their project also instantly in love with the cultural assignment. diversity I found in my team.” “I’m really proud of this programme, – Lisa Giovetti, Future Talent recruit and I’m confident we’re going to hire 218 “Being part of the Tetra Pak community brilliant graduates this year – and the year gives a unique opportunity to not after that! We have really upped our only get insights into the future of recruitment efforts and – so far – the the consumer packaged goods industry, feedback is really encouraging.” but also to use the information to – Gaby Youd, Director, At Tetra Pak, we take a proactive DEVELOPING THE NEXT support our customers to grow.” Future Talent & Future Work approach to our future talent – GENERATION – Meike Behrens, Future Talent recruit Our global Future Talent Programme the next generation of Tetra Pak is a strategic long-term approach to OUR GLOBAL MENTORING employees. This is more harness and develop the next LEARNING ON THE JOB PROGRAMME important than ever as our generation of talented employees. We believe that learning on the job is Our global mentoring programme is for industry will likely face future It involves establishing partnerships the most effective way to develop talent. employees with leadership potential who have been with us for between five and skills shortages in science, with selected universities, hiring an All our graduate hires work for us in ‘real jobs’ while undertaking a comprehensive ten years. We specifically focus on technology, engineering and annual cohort of promising graduates and providing them with globally development programme. Upon employees who represent a minority, maths. We’re tackling the structured training and development. completion of the Future Talent for example women or employees from skills gap where it starts: programme, we offer all of our Future Asia. The programme includes a year with young people. In 2017, we hired 172 graduates; this was Talent graduates the opportunity to of mentoring, where we connect our first consistent global commitment to continue working with Tetra Pak in a experienced managers with emerging graduate hiring, and we made significant permanent role. leaders and offer monthly mentoring investments into the programme. We are meetings and job shadowing. We started already making good progress against Graduates are trained through one of our fourth programme in January 2018. our 2018 goal to hire another 218 three tracks: graduates – an annual commitment from 1. Leadership: a 24-month programme now on. We are using this programme to with the aim to develop broad continue to strengthen both our national business knowledge in an international and gender employee diversity. environment.

TETRA PAK 2018 SUSTAINABILITY REPORT OUR APPROACH FOOD PEOPLE FUTURES 21

PROTECTING FUTURES Protecting the future of our planet and ensuring the long-term success of our customers.

With a rapidly growing global innovative solutions that reduce the population placing stresses on global environmental footprint of our products Through our work under the resources, we all need to do more with and services across their life cycle, from Futures pillar, we contribute to less. These global forces are now the raw materials we source through SDGs 6, 7, 9, 12, 13, 15 and 17 shaping new market expectations and to reuse and recycling after they have the expectations of customers. By fulfilled their original purpose. We are applying the principles of sustainable also actively working to significantly sourcing and circular economy, we can minimise our operational footprint and reduce waste, keep materials in use and impact. By protecting the environment, regenerate natural systems. We are we are securing our future growth constantly striving to develop new, as well as societal development.

TETRA PAK 2018 SUSTAINABILITY REPORT OUR APPROACH FOOD PEOPLE FUTURES 22

LISA RYDEN Director, Recycling

help unblock. This might include running the value chain, a weak or missing link – consumer awareness campaigns, such as a lack of efficient collection contributing to collection infrastructure systems – is a problem. While it’s and making equipment investments tempting to look for one solution to the in recycling operations. problem of recycling, there is no one- size-fits-all. Recycling happens locally, Q/ What are our biggest and we need to be there, unblocking achievements in recycling? bottlenecks and partnering with the A/ Tetra Pak is recognised as a pioneer right stakeholders. in our work to expand recycling of In line with the current anti-plastic beverage carton packaging around the With a background in engineering, up. Instead, those materials can be sentiment, we are putting more world. Here are three quick examples emphasis on improving the recycling Lisa joined Tetra Pak 13 years collected and recycled into something useful, rather than being wasted. of our recycling achievements: of the polymers in our packaging ago, moving to our environment • Through our recycling work we material. While polymers only make function in 2012. She became When Tetra Pak cartons are collected contribute to recycling the equivalent up a small percentage of each Tetra Pak Tetra Pak’s Director of Recycling and recycled into something new and of 4 out of 10 Tetra Pak packages sold. package, it is still an important issue useful, it also prevents littering, saves in early 2017. This figure includes the recycling of all for us to address. resources, and reduces climate impact. beverage cartons on the market, not Particularly with the current consumer just those we produce ourselves. Q/ What’s next, and how do you Q/ Why is recycling important to focus on plastic waste and littering, • Since 2012, we have made investments think we’ll get there? Tetra Pak? recycling is more than a license to operate We are in this for the long run and it in recycling infrastructure of €17 million A/ A/ We use high-quality raw materials – it’s actually a business imperative. is truly a journey. The drive for a circular to make our packaging and fulfil our • Since 2010, we have increased our economy is here to stay, and I guess we mission to make food safe and available Q/ Can you give us a quick summary collaboration with companies recycling are only at the beginning. This will give everywhere. Around 75 percent of of our approach to recycling? beverage cartons from 40 to 160. rise to innovations in package design, our packaging material is made A/ We take a value chain approach to collection, sorting and recycling that of paperboard, which is a renewable, recycling – from consumer awareness, Q/ What are some of the challenges will enable higher recycling rates of recyclable and truly biodegradable collection and sorting, through recycling, to recycling? packaging materials. material. Once our packaging has to market. To focus on the most A/ A chain is no stronger than its fulfilled its purpose, that doesn’t mean impactful actions, we analyse the local weakest link. Because our approach to Read the full interview with Lisa the value in the raw materials is all used value chain to find bottlenecks we can recycling involves a chain of actors along

TETRA PAK 2018 SUSTAINABILITY REPORT OUR APPROACH FOOD PEOPLE FUTURES 23 CIRCULAR ECONOMY

Our packaging, processing and services solutions BEVERAGE CARTONS CONTRIBUTE TO BUILDING optimise the use of resources. Therefore, the A LOW-CARBON CIRCULAR ECONOMY principles of circularity are at the very heart of our business. Our value chain approach and partnerships are helping to make our Responsible sourcing Renewable materials Recycling economy circular.

CONNECTING WITH CIRCULARITY In 2016, Tetra Pak joined the Circular Economy 100 (CE100), a precompetitive multi-stakeholder platform established by Consumption the Ellen MacArthur Foundation. Participating organisations work towards building a restorative and regenerative economy. Our membership enables us to test, scale and develop innovations in collaboration with other CE100 members, ensuring their ultimate viability. As further demonstration of our commitment, we actively 100% support the EU Action Plan for a Circular Economy and, in traceability of January 2018, made an ambitious pledge to back the EU wood fibre Strategy on Plastics. This involves working with industry Filling End-use Collection partners to ensure recycling solutions are in place for all components of beverage cartons, substantially increasing the use of plastics made from renewable feedstocks and using Aluminium 4% recycled plastics once they are validated as safe and legally acceptable for food contact material. Polymers 21%

Read more about how we support the circular economy Paperboard 75% Recycling

Material topics: Packaging design and resource use, packaging renewability, packaging recycling

TETRA PAK 2018 SUSTAINABILITY REPORT OUR APPROACH FOOD PEOPLE FUTURES 24 POST-CONSUMER RECYCLING THE RECYCLING JOURNEY We take a proactive and pioneering approach to make sure cartons are Polymers and aluminium Paper collected, sorted and recycled so that they Extracted polymers and aluminium are processed Pulp is dried and pressed into keep delivering value. When a recycling as a composite material, or separately, and then high-quality fibre to create new value chain is working well, it also prevents used to make a variety of new products recycled paper products littering, saves resources and reduces climate impact – all of which are vital to our shared sustainable future. In this way, recycling is both our license to operate and a business imperative for our company.

OUR COMMITMENT TO RECYCLING We use high-quality raw materials to make our packaging and fulfil our mission to make food safe and available everywhere. Once our packaging has fulfilled its purpose, those raw materials shouldn’t go to waste. Instead, they can be collected and – using relatively simple techniques – recycled into something useful. Around 75 percent of our packaging material is made from long, strong paper Polymers & aluminium fibres that can be recycled several times Re-pulping into paper products. The thin layer of Empty cartons are polymers – or plastics – in our beverage mixed with water cartons can be blended with other in a giant blender polymers and turned into new products, to separate such as roofing tiles, crates, carton boxes paper fibres and more. Water As part of our recent pledge to the EU Plastics Strategy, we will work with partners to ensure that by 2030, recycling solutions are in place for all components of our beverage cartons.

Material topic: Packaging recycling Pulp

TETRA PAK 2018 SUSTAINABILITY REPORT OUR APPROACH FOOD PEOPLE FUTURES 25 POST-CONSUMER RECYCLING CONTINUED

levels of maturity. Rather than focus on a DEFINING RECYCLING SUCCESS OUR NEW RECYCLING METRICS IN ACTION In 2010, we set a goal to double the global single indicator – overall recycling global recycling rate of Tetra Pak rate – we need to perform against more Collection: Our extensive experience The robotic system, AMP’s Cortex, is cartons to 40 percent by 2020. We were specific and locally relevant objectives. in sustainable recycling and collection using robotics and artificial intelligence the first packaging company to set such These keep us competitive and mean we models and pilots for used beverage to learn how to identify and ‘grab’ food an ambitious target and have made will continue to meet the needs of our cartons means we are well placed to and beverage cartons. The system was considerable progress towards it. In 2017, customers and other stakeholders. While develop and share key learnings and installed in late 2016 and has a pickup our global recycling rate was 25 percent, recycling rate remains a relevant metric, best practices. In China, the rate of 60 cartons per minute – the the equivalent of a 14 billion increase in a global recycling rate is no longer government asked for our input as a human average is 40 picks per minute. the number of packages recycled (from indicative of our main target nor the policy reference for their new waste The separated cartons are sold and 32 billion in 2010 to 46 billion in 2017) a most meaningful measure. separation and reduction targets. made into new products, diverting 45 percent increase. However, it is Starting in 2017, we have projects material for re-processing that would important to note that through our LOCAL SOLUTIONS TO ongoing in three major cities, otherwise be lost to a landfill. initiatives we contribute to recycling a lot Shanghai, Nanjing and Chengdu. We A GLOBAL CHALLENGE The Cortex is continuously learning more than that, the equivalent of 4 out of Recycling works when all the necessary support local collection partners to how to better recognise and separate 10 Tetra Pak packages sold. This figure actors are in place and well-connected. optimise their collection models, cartons, and can share its ‘knowledge’ includes the recycling of all beverage A weak or missing local link – such as replicate them to other municipalities with similar robots at other recycling cartons on the market, not just those we a lack of efficient municipal collection and demonstrate best practices for facilities; the system can even be produce ourselves. That's because all systems – is a challenge. With our new local government. ‘taught’ to pick out other objects – collection and recycling programmes we range of market-relevant objectives, we Recycling metric: Outreach of collection including contaminants. The Cortex develop or support are meant to take can tailor our approach to focus on partners represents a promising long-term back cartons manufactured by any actions with the greatest potential for solution for keeping up with the ever- manufacturer, not only Tetra Pak. impact or progress; we can zero in on Sorting: The Carton Council – of growing volume and diversity of the right problem in any given which we are founding members – is Setting the goal was the right thing packaging materials and formats in geography and solve it in the right way. always looking for new opportunities to do; it provided a direction that the recycling stream. Our work is present in local recycling to integrate smart technology into focused our work. The target raised the initiatives in more than 70 markets. carton recycling facilities to expand Recycling metric: Effective sorting importance of recycling – both within access across the country. and outside Tetra Pak. It helped us align Our new set of objectives and relevant Read more about our new recycling metrics partners along our value chain, and metrics fall into six categories: consumer In an exciting pilot programme led Material topic: Packaging recycling significantly improve recycling awareness awareness, customer awareness and by the Carton Council, AMP Robotics, and infrastructure along the way. collaboration, collection and sorting, and a Colorado recycling facility, fibre recycling, polymer and aluminium Alpine Waste & Recycling, a team is During this time, we also evolved our (polyAl) recycling and increasing the teaching robots how to recycle. approach to recycling. We learned that value of recycled materials. every market has different needs and

TETRA PAK 2018 SUSTAINABILITY REPORT OUR APPROACH FOOD PEOPLE FUTURES 26 POST-CONSUMER RECYCLING CONTINUED

BUILDING RECYCLING Fiber (97) VALUE CHAINS PolyAl (38) We take a value chain approach Integrated (41) to recycling. This means working on everything from consumer awareness, and collection and sorting infrastructure, through to expanding market opportunities for recycled materials and boosting business opportunities for recycling entrepreneurs. Beverage cartons are currently being recycled in more than 70 countries worldwide with a range of collection and recycling solutions reflecting the maturity of the individual market. This map shows the breadth and variety of the many businesses recycling the materials of post consumer cartons, and some specific examples of how we work with these companies. Mexico: Opening up the recycling streams Material topic: Packaging recycling Bio Pappel, the biggest manufacturer of paper products in Mexico and Latin South Africa: A taskforce to America, has started recycling brown create demand fibre to make corrugated cardboard. We co-invested in the Gayatri papermill in Tetra Pak is investing in two key Saudi Arabia: Going beyond South Africa to create a complete solution for components to make this new recycling regulations to meet demand polyAl recycling. However, demand for the end chain function well: a baler to increase In 2017, we partnered with a paper mill product – pellets – was lower than expected. volume of recyclable cartons at a in Saudi Arabia and invested in the To create demand, we collaborated with collection centre; and new equipment country’s first-ever recycling initiative for a local plastics company that tested polyAl in to adapt one of Bio Pappel’s pulping beverage cartons. Our recycler partner, a unique blend for use in a cable drum mould. lines for duplex cardboard recycling. OPI, is keen to develop new recycling After a successful pilot, the blended material This adaptation will allow the recovery streams that can create better quality was used also to make a higher grade of of all polyAl from cartons. Through pulp, thereby significantly reducing their plastic pellets for a sister company of Gayatri’s. these two investments we expect to import costs. Moreover, OPI has its own By forming new links between different recycle an additional 24,000 tonnes waste management company and is companies to create innovative, sustainable, of used beverage cartons per year ready to start working on collection high-performance products from recycled and increase the recycling rate in programmes to increase the amount of content, we are helping to contribute to a Mexico to 35-40 percent by year 2020. recycled UBC used in the mill. circular economy.

TETRA PAK 2018 SUSTAINABILITY REPORT OUR APPROACH FOOD PEOPLE FUTURES 27 ENGAGING CUSTOMERS

Our goal is to create value for our SUSTAINABLE PACKAGES: SUSTAINABLE EQUIPMENT HELPING OUR CUSTOMERS THRIVE customers through our products OUR RENEWABILITY JOURNEY Every day, we work with our customers One way we can support our customers Our long-term ambition is that our to find more efficient processing and is by helping them invest wisely in new and services. We are constantly entire packaging material portfolio will packaging solutions. Our joint aim is products or processes – particularly striving to develop new products be made from 100 percent renewable to minimise waste and spoilage, while when it comes to sustainability issues. and processes that meet our materials, without compromising safety, reducing energy and water consumption For example, we use a tool that weighs rigorous quality and safety quality or functionality. With around – keeping efficiencies up and costs up capital expenditure versus long-term standards, while having a lower 75 percent of our packages made from down. Our customers use Tetra Pak operating costs, as well as maintenance environmental footprint. paperboard, we continue to focus our equipment to process and package needs versus environmental performance. efforts on sustainable timber, while their products. We see it as ‘part of the This allows us to calculate the total cost also innovating around polymers and service’ to help them do so in a cost- of ownership over the life of the UNDERSTANDING OUR CUSTOMERS aluminium. effective and sustainable way. equipment or product. Many of our customer relationships stretch back for years – and often We are particularly proud of the Looking ahead, we are focusing our Our Expert Services help our customers decades. We attribute this to mutual following milestones on our journey efforts to help our customers further measure, benchmark, and improve their partnerships based on a common towards this goal: reduce their water use. Food producers performance across all areas of desire to find the most sustainable, 2007 are often water-intensive, increasing the operations and food protection. Tetra Pak launches the world’s first importance of water stewardship, and cost-effective solutions to complex For example, a juice producer in North  FSC-labelled carton there is evidence that water may soon challenges. America asked us to help them reduce 2011 become a limiting factor for some of their environmental impact. After Our drive to improve as a customer- First bio-based caps derived from our dairy and beverage customers. centric company starts with our sugarcane a seven-week project, we identified Material topics: Machines and equipment: improvement potential including Customer Value Proposition. Through 2014 Tetra Rex Bio-based® is the world's waste generation, machines and equipment: optimisation of the customer’s Cleaning continuous, regular collection of energy use performance feedback, we learn what first beverage carton manufactured in Place (CIP) and upgrading of the entirely from renewable materials we are doing well and where we’re heating and cooling systems. As a result, falling short. 2016 our customer saw a 20 percent reduction Tetra Brik® Aseptic 1000 Edge with in CO2 emissions, a 30 percent reduction We have designed a holistic Customer Bio-based LightCap™ 30 is the first in water use and a cost saving of half Experience programme, which we aseptic package to have a film and cap made from renewable sugarcane- a million euros. piloted in 2017 and began to roll out based plastic, lifting the share of to our regions at the start of 2018. materials from renewable sources in the package to above 80 percent 2018 We delivered 350 billion FSC labelled packages since the launch of the first package in 2007

Material topics: Packaging design and resource use, packaging renewability TETRA PAK 2018 SUSTAINABILITY REPORT OUR APPROACH FOOD PEOPLE FUTURES 28 RESPONSIBLE SOURCING

OUR APPROACH We also encourage suppliers to strive for In sourcing paperboard for liquid-based As a signatory of the UN Global continuous improvement by investing in packaging, we follow two main principles: Compact and in our support of SDG 12, their own sustainability agendas in order • all the wood fibre in our paperboard we work with stakeholders to drive to meet or exceed global best practices. should come from forests continuous improvement in the areas In 2017, 98 percent of our suppliers independently certified as being of human rights, labour standards and (by spend) across all regions had signed managed in accordance with the environment, and to act against the Supplier Code. For packaging raw principles of sustainable forest corruption. In line with these goals, material suppliers, the rate is 100 percent. management and as a global company with thousands of suppliers, we have an opportunity to Material topic: Supplier environmental • we should be able to prove traceability promote responsible sourcing practices. assessment from the forests all the way to the CDP A-LIST FORESTS PROGRAMME packaging material we produce FOR LEADERSHIP ON BUILDING Our aim is to minimise negative impacts PAPERBOARD at our sites globally, which can only Around 75 percent of a Tetra Pak carton DEFORESTATION-FREE COMMODITY and make a positive contribution to the be achieved through independent by weight is paperboard. Although we SUPPLY CHAINS businesses, people and communities certification of the total Chain of don’t own or manage any forests, we that make up our supply chain. Custody. Tetra Pak has been on the CDP A-List apply our purchasing power to promote Forests Programme for the last two Responsible sourcing is one of the three sustainable forest management. All our paperboard comes from wood years in recognition of our work in strategic objectives for our supply chain from FSC-certified forests and other We do this by joining up with suppliers, managing and mitigating risks operations. These means that it is non-governmental organisations controlled sources. incorporated into key performance associated with the sourcing and and other stakeholders to promote production of timber. We were one objectives and individual objectives responsible forest management across all our regions, and has its own Member of: of only six companies to be identified and strengthen traceability through as a global leader in combatting assurance system that is integrated into certification and labelling. our Corporate Governance Framework. deforestation in our supply chain. We have also been recognised as a sector We require our suppliers to comply leader for the past three years, equal with our Code of Business Conduct for to the number of years that the CDP Suppliers (the Supplier Code), which sets Forests Programme has been running. out our expectations, based on the 10 principles of the UN Global Compact.

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POLYMERS There is a long way to go before A Tetra Pak package has thin layers of bio-based polymers become polymer, or plastic, to prevent moisture mainstream, replacing products made getting in or out and to keep the product from oil and gas resources. In particular, inside fresh. It is also in our caps, closures we are mindful of the social cost of TETRA PAK AND THE ALUMINIUM and straws. Our long-term ambition is for bio-based polymers, such as how local STEWARDSHIP INITIATIVE all our chilled and ambient packages to food availability and working conditions be made from renewable alternatives are affected. And despite considerable Since 2009 we have been working in to oil-based plastics. progress, bio-based polymers are still a collaboration with many like-minded niche product for the plastics industry, organisations like Hydro, Rio Tinto By 2014, we had created the world’s first and therefore only in a small fraction of Aluminium, BMW, Nespresso, WWF fully renewable package for liquid food, BIO-BASED POLYMERS IN NUMBERS our cartons at present. Our commitment and the International Union for the Tetra Rex ® Bio-based, made out of remains to expand their use to cover Conservation of Nature. The aim has paperboard and plastics derived from • By early 2018, we had delivered more of our packages, across all sizes. been to establish a global standard that sugarcane. By early 2018, we had over half a billion Tetra Rex We are working with partners to further raises the bar for aluminium production, delivered more than half a billion fully Bio-based packages to meet explore the issues involved, while also by addressing environmental and renewable packages to meet customer customer demand (up from continuing to assess alternatives like social issues. demand. In the same year, we also 100 million in 2016) other plant-based materials, organic launched the Tetra Brik ® Aseptic 1000 • Between 2014 and 2017, we As a founding member of the waste and algae. Edge with Bio-based LightCap™ 30. delivered 55.1 billion packs with Aluminium Stewardship Initiative (ASI), It is the first aseptic package to have a bio-based polymer coating we aim to address sustainability topics a film and cap made from sugarcane- ALUMINIUM related to aluminium at an industry • By 2017, we had delivered On the inside of our aseptic cartons, based plastic. Combined with the level. Its production can be associated 3.4 billion bio-based caps, which a layer of aluminium eight times thinner paperboard, this lifts the share of with environmental and social issues, represents 10 percent of our total than a human hair provides vital materials from renewable sources ranging from land use and hazardous closures sold. protection from oxygen and light, in the package to above 80 percent, by-products to working conditions, keeping perishable food safe without the threshold for four-star certification health and safety. refrigeration and preservatives for from testing company TÜV Austria. months. Although this layer is minute, In December 2017, the ASI released we are continually innovating to make Version 2 of its Performance Standard, it as thin as possible, while investigating meaning we can now become certified alternative barrier materials. to that level in 2018. In parallel, all but one of our aluminium foil suppliers are becoming ASI members. This requires them to achieve certification standards within two years and demonstrates their commitment to a socially and environmentally sustainable future for aluminium. TETRA PAK 2018 SUSTAINABILITY REPORT OUR APPROACH FOOD PEOPLE FUTURES 30

PROTECTING FUTURES IN ACTION THE VIA INITIATIVE FSC certification, labelling and verification THE POSITIVE IMPACT OF CERTIFICATION We have long recognised the value of independent certification in the transition to a sustainable future. Last year, we took part in the Value and Impact Assessment, collaborating with the likes of Kingfisher and IDH, to review the scientific evidence of the All our paperboard comes Having achieved full FSC Chain • The FSC directly supports the positive impact of certification of forests. We found that when several from wood from forests certified of Custody certification for all our sustainable forest management target operations, we can now supply under SDG 15, while also contributing companies commit to a sustainable to FSC standards and other FSC-labelled packages from to 34 targets under 10 other SDGs forest standard – such as the FSC’s – controlled sources. anywhere in the world. • Although figures vary across markets, it has measurable on-the-ground impact on protecting and securing We see FSC as offering a credible For certification of the Chain of Custody one out of every two consumers globally recognises the FSC label and biodiversity. Read more about the universal standard and we actively of our own operations, we have chosen value impact analysis initiative. encourage our customers to display to work with the Rainforest Alliance, one ‘responsible forestry’ comes only the logo on their packages. Since the of the world’s largest FSC-accredited second to ‘quality’ as a driver of introduction of the FSC label on our certification bodies. purchasing decisions As of 2014, managers of FSC certified first package in 2007, we have produced • In 2017, 42 percent (or 90 billion) of The FSC licence code for Tetra Pak boreal forests had set aside an area 350 billion FSC-labelled packs, 92 billion Tetra Pak packages featured FSC is FSC™ C014047. roughly half the size of Sweden (over of which were delivered in 2017 alone. labels. In 2018, we aim to grow this to just over 53 percent 16 million hectares) for protection. This represents nearly 20% of the 91 million hectares of carbon-rich boreal forests that were under FSC certified management.

TETRA PAK 2018 SUSTAINABILITY REPORT OUR APPROACH FOOD PEOPLE FUTURES 31 ENVIRONMENTAL IMPACT

We are working with suppliers Working with the SBT initiative, we CALCULATING THE CARBON TETRA PAK OPERATIONS and customers to minimise our committed to reducing our operational FOOTPRINT OF A PACKAGE By applying World-Class Manufacturing GHG emissions 42 percent by 2030 and Our customers can use our Carton CO2 principles, we can reduce energy, waste environmental impact across 58 percent by 2040, from a 2015 baseline. calculator to make informed climate and water, while making our factories the value chain, from sourcing We also committed to reducing GHG choices about our packaging solutions. and offices more efficient. At the same to production and from use emissions across the value chain The calculator measures the CO2e time, we are looking to the future to disposal of our products 16 percent per unit of revenue by 2020 footprint of our cartons up to the and exploring ways of continuing to and equipment. from a 2010 baseline. moment they leave our factories. This manage our impact even after we have CO e footprint covers GHG emissions maximised our energy reductions. The science-based targets allowed us 2 from ‘cradle to gate’, which includes One way is by increasing our use of to align our climate goal to the level of CLIMATE: A VALUE CHAIN impacts associated with sourcing and renewable electricity. decarbonisation needed to keep global APPROACH transporting raw materials to our plants, temperature increase below 2°C and to Our climate goal is to cap our 2020 as well as converting the materials into look beyond our existing commitments impact across our value chain at 2010 packaging material. The climate impact levels, regardless of business growth. and set a course of action all the way is measured in equivalent CO2e. Although this requires action at every to 2040. level of our business and supply chain, THE CARBON CO CALCULATOR the two major drivers of progress WHAT IS A SCIENCE-BASED TARGET? 2 towards our goal are improving our Targets are considered ‘science-based’ In 2018, version 5 of our energy efficiency and increasing the if they are in line with the level of Carton CO2 calculator use of renewable electricity. decarbonisation required to keep was certified by the Carbon Trust as capable In 2017, we achieved a 13 percent the global temperature below of generating carbon reduction in our overall climate impact, 2 degrees compared to pre-industrial footprints in compliance despite a 19 percent increase in temperatures, the basis of the 2015 with PAS 2050:2011, packages sold. Further to this, in 2016 COP21 Paris Agreement. The aim of ISO 14044:2006 and we became the first company in the the SBT is that by 2018, science-based ISO/TS 14067:2013. food packaging industry to have our target setting will become standard climate impact reduction targets business practice and corporations Material topic: Packaging climate impact approved by the Science Based will play a major role in closing the Targets (SBT) initiative. emissions gap left by country commitments.

Material topics: Energy use and GHG emissions, machine and equipment: energy use and GHG emissions, packaging climate impact

TETRA PAK 2018 SUSTAINABILITY REPORT OUR APPROACH FOOD PEOPLE FUTURES 32 ENVIRONMENTAL IMPACT

SUPPLIERS CUSTOMERS Our Expert Services help customers WASTE Our supply chain accounts for Our greatest environmental impact lies measure and reduce their overall water Using the latest technology, we can approximately 46 percent of the not in our own factories but in those of use, while products such as the Water recycle close to 100 percent of material greenhouse gas emissions in our our customers because this is where Filtering Station can help food and drink waste of our operations; the remainder value chain. We work closely with most of our equipment is in use. We manufacturers cut the total amount of being disposed of responsibly and in suppliers and partners to identify help our customers to reduce their water they use by as much as 95 percent. line with current regulations. efficiencies, both in their operations carbon footprint and costs through Similarly, upstream in our value chain, we Any hazardous waste we produce is and through their own supply and more efficient processing and packaging also address water issues in our supply handled in line with local law and best we formally evaluate supplier solutions, and we also provide services chain, particularly for paperboard. We practice. We apply the precautionary performance annually. that help them to reduce energy use, evaluate our suppliers every year, and principle throughout our operations; water consumption, waste and food loss. stringently monitor water pollution in line In 2017, Tetra Pak was identified as a so, where a potential risk is identified, with legislation. ‘Supplier Engagement Leader’ by CDP, we will seek to eliminate or reduce that which means we were recognised for WATER risk by choosing a better alternative or Water is an important issue for our our work to reduce emissions and lower CHEMICALS implementing risk reduction measures. business. We are examining global water The chemicals we use in our operations environmental risks in our supply chain. stress situations to establish a water are subject to approval before Material topic: Machines and equipment: Material topic: Supplier environmental management approach across our value introduction and their use is controlled waste generation assessments chain – from raw materials production and managed by environmental and right through to consumer use. This work safety staff at our sites. All our sites in is strongly linked to SDG 6. Europe also have obligations under EU REACH regulations covering the Starting with our own operations, registration, evaluation, authorisation Tetra Pak uses a modest amount of water and restriction of chemicals. Similar at our own sites. However, water use chemicals legislation is emerging in becomes more important in relation many other geographies and we are to our customers, and the equipment working continuously to ensure that our we develop and sell to them. We are business, and the materials we use, are focusing our efforts on helping our compliant. Colleagues responsible for customers understand, monitor and chemicals at all sites are given training to reduce their water use. We also track understand how the REACH regulations the water usage of our suppliers in the apply to their activities. production of packaging materials.

Material topic: Machines and equipment: water use, supplier water use

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PROTECTING FUTURES IN ACTION Toward 100 percent renewable electricity

DRIVING DEMAND FOR RENEWABLE POWER Our goal to source 100 percent renewable electricity means we are often either the first or one of the first to demand renewable power in markets around the world. Being areas where we operate, encourage We see renewable energy as key ONSITE SOLAR POWER a first mover matters because it Tetra Pak has seven solar panel the development of the renewable to our carbon reduction strategy helps establish the standard and installations worldwide and we see energy industry, reduce our carbon demonstrate demand. and in 2016, having made steady onsite solar power as an area where we emissions and at the same time support progress towards energy-efficient can make a positive impact within the the local economies. We were the first to source operations, we made a public communities in which we operate. Gold-Standard I-RECs in , When sourcing renewable energy Thailand where our local factory will soon commitment to RE100 to source certificates, and especially in high also generate an additional 1MW 100 percent renewable electricity RENEWABLE ENERGY CERTIFICATES risk areas, we always ensure we are The International REC Standard (I-REC) renewable electricity from solar by 2030. exceeding standard practices, setting is an international standard for issuing, panels. Elsewhere in the world, minimum environmental and social tracking and redeeming renewable we are a major purchaser of I-REC In just two years since our criteria that need to be met. Eco-labels energy certificates (RECs) in countries certificates in , and were the commitment we have reached such as Gold Standard and Ekoenergy China where tracking systems for RECs do not first to source Ekoenergy solar power 50 percent renewable electricity enable us to apply the same stringent yet exist. In markets where renewable in . quality criteria across different regions. South Africa consumption. energy infrastructure is not yet During 2017, we completed our journey This has been achieved through a developed it is a challenge for to run our factories on 100 percent combination of initiatives, including the companies to source electricity from renewable power in Sweden, Denmark, purchase of International Renewable renewable sources. Sourcing renewable Finland and South Africa. About Energy Certificates (I-RECs) and solar energy certificates allows us to invest in 20 percent of our major sites now run power installations at our own facilities. renewable energy projects close to the on 100 percent renewable power.

TETRA PAK 2018 SUSTAINABILITY REPORT OUR APPROACH FOOD PEOPLE FUTURES 34 RESPONSIBLE REPORTING

Communicating about our ALIGNING TO GLOBAL STANDARDS • For selected data we also present GLOBAL VERIFICATION responsible business practices As signatories to the United Nations an eco-efficiency indicator. These AND ASSURANCE Global Compact (UNGC) since 2004, we indicators reflect the environmental Our practices, processes and and performance is an important are committed to the implementation, impact in relation to a certain performance are verified externally to part of our overall reporting disclosure and promotion of its 10 parameter, for example, World-Class Manufacturing standards, activity. We have been reporting principles on human rights, labour, production volume ISO 9001, ISO 14001, OHSAS 18001, on environmental issues since the environment and anti-corruption. • In some cases, we have corrected and Forest Stewardship Council Chain 1999 and on broader sustainability We submit an annual Communication previous years’ data when sites have of Custody and Quality Assurance issues since 2005. on Progress and also actively contribute reported corrections to historic data. Management certification. Our GHG to the UN and best practice standards This improves data quality and allows emissions data is externally audited This summary accompanies the of the Forest Stewardship Council™ for more meaningful comparisons by Ecofys. dedicated Sustainability section of our (FSC™), World Wide Fund for Nature between years. Consequently, data website, which follows the materiality (WWF), UN World Food Programme presented in previous reports may approach of the GRI Standards (WFP) and the Global Alliance for differ slightly Improved Nutrition (GAIN). guidelines, the most widely adopted • In cases where we need to recalculate international independent framework data, we do so according to our own for sustainability reporting. MEASURING AND REPORTING recalculation policy which follows the ENVIRONMENTAL IMPACT GHG Protocol standards for Corporate By using the GRI Standards, we Since 1999, we have been reporting on and Scope 3 accounting disclose our most critical impacts – our environmental data according to the be they positive or negative – on the following principles: The GHG Protocol requires us to report environment, society and the economy. • All data presented covers a full on emissions in three areas, or scopes: This framework helps us to generate calendar year, January to December reliable, relevant and standardised • Scope 1: direct emissions from our information to assess opportunities • We report on our greenhouse gas own operations, including fuel and risks and enable more informed (GHG) emissions according to the consumption and the use of solvents decision-making – both within the GHG Protocol developed by the World and refrigerants business and among our stakeholders. Resources Institute and the World • Scope 2: indirect emissions related Business Council on Sustainable to purchased electricity, heat, steam Development or cooling • Scope 3: indirect emissions in our value chain from sources not owned or controlled by Tetra Pak.

TETRA PAK 2018 SUSTAINABILITY REPORT OUR APPROACH FOOD PEOPLE FUTURES 35 GLOSSARY

When we talk about our • The Carbon Trust • DEEPER IN THE PYRAMID • GHG Protocol economic, social and A company that helps governments, The “Deeper in the pyramid” category A set of standards and tools for organisations and companies reduce represents the two billion consumers companies to manage their GHG environmental performance, their carbon emissions and become with a spending power of between emissions and become more efficient. we use certain terms that have more resource efficient. Its stated €1.80 and €7.20 per day. Tetra Pak’s https://ghgprotocol.org/ specific meanings within mission is to accelerate the move to DEEPER IN THE PYRAMID strategy • The Global Reporting Initiative (GRI) Tetra Pak and the world of a sustainable, low carbon economy. is helping to bring safe, healthy and An independent international sustainability. To make sure that • CDP nutritious products within the reach organisation that developed the our report is easily understood An international non-profit, formerly of these low-income households. world’s first and most widely accepted by everyone who reads it, known as the Carbon Disclosure • EcoVadis global standards for sustainability Project, that runs a global disclosure An organisation that produces ratings reporting, the GRI Standards. we have listed and defined system for investors, companies, cities, and scorecards to help procurement https://www.globalreporting.org some of the most commonly- states and regions to manage their teams monitor sustainability practices • used terms, organisation Human Resources country environmental impacts. in their supply chains, across representatives (HRCR) names and abbreviations in https://www.cdp.net 180 sectors and 150 countries. Representatives from Tetra Pak’s this report below. • Circular economy https://www.ecovadis.com/ operating countries who are often An alternative to the traditional linear • Forest Stewardship Council™ involved in developing our people- economy (make, use, dispose), a (FSC™) focused programmes and circular economy is an economic An international non-profit improvements. system that aims to keep resources organisation that promotes • I-REC in use for as long as possible, and to responsible management of the An organisation that provides a retain value and regenerate products world’s forests by setting standards on standard for energy attribute tracking at the end of each service life. forest products, along with certifying systems so that consumers in all • Dairy Hubs and labelling them as eco-friendly. regions of the world can have A dairy model used by Tetra Pak to https://ic.fsc.org/en access to internationally recognised secure a long-term supply of locally • Greenhouse gas (GHG) emissions and tradable renewable energy produced, quality milk, without raising Emissions into the atmosphere of certificates (RECs).

the costs of collection in emerging gases (especially CO2) that contribute http://www.internationalrec.org/ economies. The model works by to the greenhouse effect (trapping • Lost Time Accident Rate (LTAR) linking smallholder farmers to a dairy heat from the sun in the Earth’s lower The number of lost time accidents processor, with Tetra Pak offering the atmosphere). (measured in days) occurring in a technology and ‘hands-on’ practical workplace per 1 million hours worked. knowledge and training. An LTAR of 7, for example, shows that 7 days were lost due to accident or injury for every million hours worked.

TETRA PAK 2018 SUSTAINABILITY REPORT OUR APPROACH FOOD PEOPLE FUTURES 36 GLOSSARY CONTINUED

• Materiality and material topics • Science Based Targets (SBT) • TÜV Austria • The Value and Impact Analysis (VIA) Material topics are topics (e.g., energy, initiative TÜV Austria is a testing and Initiative waste, human rights) that reflect an The Science Based Targets initiative certification company that took An initiative started by Tetra Pak, organisation’s significant economic, champions science-based target over the OK bio-based certification Ikea and Kingfisher to support the environmental and social impacts or setting as a powerful way of boosting referred to in previous Tetra Pak development of a methodology for substantially influence the assessments companies’ competitive advantage sustainability reporting. assessing the impacts of FSC forest and decisions of stakeholders. These in the transition to the low-carbon www.tuv-at.be management certification. are the most important topics for economy. Targets adopted by • United Nations Global Compact • World Food Programme (WFP) an organisation to consider in its companies to reduce greenhouse (UNGC) The food-assistance branch of the sustainability strategy and reporting. gas (GHG) emissions are considered A United Nations initiative to United Nations and the world’s largest A materiality assessment is used to “science-based” if they are in line with encourage businesses worldwide humanitarian organization addressing determine what these topics are, and the level of decarbonisation required to adopt sustainable and socially hunger and promoting food security. it is reviewed and validated by senior to keep global temperature increase responsible policies, and to report http://www1.wfp.org/ management. For the purpose below 2°C compared to pre-industrial on their implementation. of this report, Tetra Pak uses the temperatures. http://www.unglobalcompact.org.uk/ GRI definition of materiality, as https://sciencebasedtargets.org • described above. United Nations Sustainable • Stakeholders Development Goals (SDGs) • Occupational health and safety Stakeholders are individuals, groups The Sustainable Development Goals (OHS) or organisations that can affect, or be (SDGs), otherwise known as the Global The safety, health and well-being affected by, the activity of a business. Goals, are a collection of 17 global of people at work. • Supplier Ethical Data Exchange goals set by the United Nations in • RE100 (Sedex) 2015. Building on the success of the A collaborative, global initiative uniting A not-for-profit membership Millennium Development Goals, more than 100 influential businesses organisation dedicated to driving they are a universal call to action to committed to 100% renewable responsible and ethical business end poverty, protect the planet and electricity. practices in the supply chain. ensure that all people enjoy peace http://there100.org/re100 and prosperity. http://www.undp.org/content/undp/ en/home/sustainable-development- goals.html

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