MADE with PURPOSE Logo (Varta) 2017 Corporate Citizenship Review

Global Battery Division | Rayovac & Varta

Logo (Rayovac) Logo on Black

MADE WITH PURPOSE Logo (Varta) 2017 Corporate Citizenship Review

Logo (Spectrum Brands)

SPECTRUM BRANDS AT A GLANCE Spectrum Brands Our products are well-known, Most of the Spectrum Brands widely trusted and available at products hold a top 1, 2 or 3 Holdings is a global major retailers in approximately global, U.S., and/or European 160 countries on six continents. market position. Our portfolio consumer products A member of the Russell 1000 of brands is full of names company. We offer Index, Spectrum Brands is a you know, such as Rayovac®, leading supplier of consumer VARTA®, Kwikset®, Weiser®, an extensive portfolio batteries, residential locksets, Baldwin®, National Hardware®, residential builders’ hardware, Pfister®, Remington®, George of strong brands plumbing, shaving and Foreman®, Russell Hobbs®, that consumers use grooming products, personal Black+ Decker®, Tetra®, care products, small household Marineland®, Nature’s Miracle®, Headquartered in every day. appliances, specialty pet Dingo®, 8-in-1®, FURminator®, Middleton, Wisconsin supplies, lawn, garden and IAMS and Eukanuba® (Europe home pest control products, only), Digest-eeze™, Healthy- personal insect repellents, and Hide®, Littermaid®, Spectracide®, auto care products. Cutter®, Repel®, Hot Shot®, Black Flag®, Liquid Fence®, 18,000 Armor All®, STP®, and A/C PRO®. EMPLOYEES Our products are largely non-discretionary, non-premium-priced, replacement packaged goods. 50 COUNTRIES Manufacturing, R&D, Distribution facilities in N. America, Latin America, Europe, & Asia.

2 SPECTRUM BRANDS 2017 Corporate Citizenship Review

TABLE OF CONTENTS 08 13 19 24 PRODUCTS: PEOPLE: PLACES: POSSIBILITIES: Impactful Innovation Empowering Inspiring Performance Always Looking Across Product Lines People Excellence Toward The Future

04 09 14 20 25 Executive Message Inspiring our teams to move Governing sustainability Saving energy and Collaborating with toward product sustainability reusing emissions strategic partners 05 15 CSO Message 10 Making our 21 25 Setting high standards communities stronger Eliminating waste Moving forward with for suppliers new partners 06 17 22 SUSTAINABILITY 11 Respecting our global Baselining our water 26 Improving product workforce efficiency Pursuing our goals STRATEGY sustainability using the 4Ps 18 23 07 12 Building careers Starting with safety: 26 Sustainability Commitment Advancing resource at Spectrum Brands ‘Destination Zero’ Reporting our Statement and Goals efficiency in products and performance packaging

3 SPECTRUM BRANDS 2017 Corporate Citizenship Review

MADE WITH PURPOSE Responsible, Sustainable Growth A message from Nathan Fagre

Welcome to the Spectrum as our landmark workplace Leveraging the hallmarks of safety campaign. In 2014, we our company culture of Vision, Brands first annual Corporate started generating renewable Clarity and Focus, we are Citizenship Review. energy and strengthened our pursuing sustainability with the supply chain sustainability same vigor we bring to our This is an exciting time for program. In 2017, we celebrated commercial objectives. Spectrum Brands. Our mission our largest day of community is to provide great products and service in the history of Made with Purpose embodies exceptional service to all our Spectrum Brands. our pursuit of sustainability. customers globally. To reach this Looking forward, we have the goal we are investing in people While we are proud of our opportunity to further develop and innovation company-wide. work so far, we believe our efficiencies, cut waste, and This includes investing in the sustainability program has its foster responsibility throughout environmental, safety, social, best days ahead. Spectrum our product lifecycles. We and governance aspects of Brands is a dynamic company will work every day to make it our business, in other words, in a fast-moving sector. We happen because we believe with a greater degree of clarity thrive in our commercial sector this is what our customers, on sustainability. by pursuing our strategy of employees, and stakeholders delivering strong brands want and deserve. Our sustainability work has with exciting innovation and a strong foundation. Nearly being a low cost provider. Our NATHAN FAGRE a decade ago, we helped Board of Directors and senior Senior Vice President, establish the Clean Lakes management team share an General Counsel and Secretary Alliance, a Madison, WI, unwavering focus on shaping non-profit focused on Spectrum Brands to be more water quality. In 2012, we competitive in an evolving global developed “Destination Zero” marketplace.

4 SPECTRUM BRANDS 2017 Corporate Citizenship Review

SUSTAINABILITY AT SPECTRUM BRANDS A message from Daniel Hutter

It is an honor to introduce the the top tier of sustainable to maintain a safe, healthy, product performance. and engaged workforce, and Spectrum Brands inaugural we are fostering a strong Corporate Citizenship Review. Our sustainability strategy rests and transparent governance on four pillars, which we call structure. We look for ways doing our part to make a more “The 4Ps”: Products, People, At Spectrum Brands, Corporate to give back to the communities sustainable world. Places, and Possibilities. These Citizenship means making sure where we work. four pillars support our five-year our products are responsibly Investing in the 4Ps strengthens sustainability goals and form the Places: Places are the sourced, manufactured, used, our fifth “P”:Purpose . Our structure of this report. locations where we and recycled. And it means employees’ enthusiasm to live and work. At the facility continuously innovating to make the world a better place Products: We look level, safety is paramount. We safeguard our communities and magnifies our environmental forward to impactful are relaunching our landmark the environment at large. and social responsibility innovation across our product “Destination Zero” workplace These are values that our and inspires our Made with lines. We are setting high safety program as a model company held since inception, Purpose ambitions. standards for suppliers, for improving other facets of but now we are taking continually improving product sustainability, including water use This is the start of something sustainability further. safety, and advancing efficiency, saving energy, and exciting. We look forward resource efficiency. Global concerns about eliminating waste. to sharing our progress in future reviews. sustainability and risk Spectrum People: Possibilities: For our management are rewriting the Brands understands that dynamic company, rules about what investors, DANIEL HUTTER current and future generations anything is possible. Our retailers, and consumers expect. Chief Sustainability Officer depend on our company to ambitions will evolve as new Such expectations offer us the respect people and preserve possibilities and partnerships opportunity to improve our the environment where we live arise. Our relentless pursuit environmental and social and work. Our employees’ well- of improvement will make us impact, and help launch us to being is a priority. We endeavor a more sustainable company

5 SPECTRUM BRANDS 2017 Corporate Citizenship Review SPECTRUM BRANDS Impactful Innovation PRODUCTS Across Product Lines • Inspiring our teams to move toward product sustainability • Setting high standards for suppliers SUSTAINABILITY STRATEGY • Improving product sustainability • Advancing resource efficiency in products and packaging

PEOPLE Central to our strategy is our focus Empowering People In 2015, Spectrum Brands • Governing sustainability on the facets of sustainability that • Making our communities stronger lead to operational efficiency and accelerated our strategic • Respecting our global workforce empower our people. Guided • Building careers at Spectrum Brands roadmap to deliver by this strategy, we continuously explore new products and better long-term, sustainable ways of working. Made with Purpose embodies and inspires our PLACES Inspiring Performance value to our stakeholders. sustainability vision as reflected in Excellence the 4Ps. In 2017, Spectrum Brands • Saving energy and reusing emissions • Eliminating waste set new five-year sustainability • Baselining our water efficiency commitments and goals that align • Starting with safety: 'Destination Zero' with accelerating a positive impact on people’s lives and the world around us. BIL OSSI ITIES Always Looking P Toward The Future • Collaborating with strategic partners • Moving forward with new partners • Pursuing our goals using the 4Ps • Reporting our performance

6 SPECTRUM BRANDS 2017 Corporate Citizenship Review SUSTAINABILITY COMMITMENT AND GOALS Our sustainability commitment and goals inspire our people to advance sustainable business processes and improve resource efficiency with a focus on customer satisfaction.

PRODUCTS PARTNERSHIPS ENERGY Every Spectrum Brands business will identify its By FY 2022, achieve recognition for sustainable Reduce our carbon footprint (scope 1 and 2 product categories two most significant environmental business practices through inclusion on marketbased emissions) 3% year over year through and social impacts, and achieve year over year investor-leading sustainability indices. FY 2022 on a per revenue basis from FY 2017. performance improvement from FY 2017 to FY 2022.

WATER HEALTH AND SAFETY COMMUNITY Improve our water efficiency across Spectrum Promote and uphold our Destination Zero safety By FY 2022, develop and launch a signature Brands locations by 3% on a per revenue basis from culture (zero injuries) at all existing and future sustainability program to positively affect the FY 2017 to FY 2022. operations through continuous improvement in people and communities in all countries where leading safety indicators. Spectrum operates.

7 SPECTRUM BRANDS 2017 Corporate Citizenship Review PRODUCTS: IMPACTFUL INNOVATION ACROSS PRODUCT LINES

OUR 2022 GOAL: Every Spectrum Brands business unit to identify the two most significant environmental and social impacts for their product categories and achieve annual, trackable improvements on those issues between FY2017 and FY2022. Spectrum Brands offers a wide range of products from door locks to insect repellent, animal care products to automotive oils, and hairbrushes to toaster ovens. We are constantly innovating products to provide the quality, value, and performance our customers demand, while protecting health, safety, and wellness, and minimizing our environmental impacts.

8 SPECTRUM BRANDS 2017 Corporate Citizenship Review Inspiring our teams to move forward in product sustainability Spectrum Brands 2017 Walmart Sustainability Index Results We empower our sourcing, procurement, and Based on 19 surveys & 230 KPIs product development teams to move beyond compliance to improve product design and OUR RESULTS packaging from a sustainability perspective. In 2017, our teams worked alongside select suppliers to improve resource use efficiency ST and to reduce carbon footprints. We plan 1Spectrum Brands to extend this focus to all of our brands ranking in and products. Household Pesticides One tool we use to track our performance 100% and drive innovation is the Walmart Score on 22% of the KPIs Sustainability Index (WMSI). 80%+ WMSI is a retail standard developed by The Spectrum Brands TOP Sustainability Consortium that allows retailers Preferred Provider Ranking and suppliers to measure the sustainability scores for Metal in 8 of 14 and Glass Products categories performance of a range of consumer goods. 3 In 2017, we surveyed nearly 400 tier 1 and tier 2 suppliers to generate our responses to the of consistent WMSI surveys that include product category 3 YEARS improvement Key Performance Indicators (KPIs). 60% 50% Despite adding more products since 2015, our WMSI scores have consistently improved: 40% YEAR SURVEYS AVERAGE % CHANGE 30% ANSWERED* SCORE 20% 2015 10 26% — 10% 2015 2016 2017 2016 22 33% +25% SPECTRUM COMPANY-WIDE AVERAGE 2017 19 49% +50% AVERAGE PRODUCT CATEGORY SURVEY SCORE *All Responders * Number of product category surveys based on WMSI yearly request. * Walmart’s Sustainability Index is a tool rolled out across 200 product categories and more than 1,000 suppliers to gather and analyze information about a supplier’s approach to monitoring and managing the social and environmental factors that matter most across the full life cycle of its products. Walmart uses data from the surveys to identify key hot spots and to drive continuous improvement with its suppliers. 9 SPECTRUM BRANDS 2017 Corporate Citizenship Review Setting high standards for suppliers We set high standards for our suppliers. As an integral part of doing business with us, suppliers agree to follow our Code of Conduct to demonstrate a commitment to worker rights, safe working conditions, and environmentally responsible manufacturing. Suppliers undergo audits to monitor and validate their follow-through.

PARTNERING WITH SUPPLIERS MANAGING CONFLICT MINERALS Through our partnership with amfori, a leading We expect companies that supply or global business association for open and manufacture components, parts, or products sustainable trade, we improved our supplier for Spectrum Brands to obtain minerals management program to align with the responsibly from conflict-free sources. In Business Social Compliance Initiative (BSCI), December 2014, we adopted a corporate policy the International Labour Organization (ILO), to address the use of conflict minerals in our and more than 30 of our customers’ social products and incorporated our policy into our responsibility standards. Such supply chain Supplier Code of Conduct. standards include: human rights; labor, health, The mining of tantalum, tin, tungsten, and and safety; ethics in business and sourcing; gold (3TG) from the Democratic Republic of anti-corruption; and training. Our procurement, the Congo and surrounding areas contributes regulatory affairs, and quality teams work to human rights violations and violence in the together to assess and monitor suppliers, region. Using standards set by the Responsible identify risk of non-compliance, and ensure Minerals Initiative (RMI, formerly the Conflict- implementation of consistent and clear social Free Sourcing Initiative), we launched a responsibility standards. comprehensive investigation system to identify We engage suppliers locally where they if non-certified 3TG smelters are in our global operate, aiming to empower their continuous supply chain. We screened and evaluated improvement. Our global sourcing risk over 500 suppliers and over 200 smelters in management framework screens and manages our supply chain. Through a new partnership suppliers' labor and human rights practices with Crowe Horwath, LLP, a public accounting, along with their environmental, quality, and consulting, and technology firm, we look security performance. Using BSCI tools, we forward to increasing supplier education ENCOURAGING SUPPLIER DIVERSITY track performance against our internal and and involvement. In 2017, our leadership team affirmed support customer social responsibility expectations. We also track and respond to potential risks for diversity and inclusion, emphasizing our associated with other commodities. For approach in our Supplier Diversity statement. instance, in 2017, as RMI members established Spectrum Brands will further develop a a working group focused on risks related worldwide team of suppliers who are rich to child labor in cobalt mining in the in diversity of people, cultures, and ideas. Democratic Republic of the Congo, we began voluntarily investigating if cobalt is necessary for our products.

10 SPECTRUM BRANDS 2017 Corporate Citizenship Review Improving product sustainability Spectrum Brands produces high-performing products. We strive to uphold high product and chemicals management standards.

CHEMICALS MANAGEMENT FOOD SAFETY FOR PETS Spectrum Brands strives to develop safer Our Pet, Home & Garden division has an products, eliminate unneeded chemicals, and international presence in the pet care sector. improve cradle-to-grave management In 2016, we upgraded our pet food safety of products and packaging. Our approach program to review and share issues among focuses on both regulatory compliance and our food safety teams globally, keep up to conformity with emerging customer and date on regulations, and develop new consumer requirements. training. By mid-2017, we expanded our Good chemicals management requires teams and nearly 80 employees completed risk assessment with an eye on removing food safety training pursuant to the Global undesirable ingredients. To that end, our Global Food Safety Initiative and current good Auto Care and Hardware & Home Improvement manufacturing practices, in particular, to divisions conduct third party toxicological risk emphasize and integrate our cleanliness and assessments as part of an ingredient evaluation sanitation best practices. process. Our Pet, Home & Garden division Going forward, we will continue to assess assesses product ingredient risks in the food, the ingredients we use in packaging, like bug spray, and pet care sectors. inks and coatings, and plan to implement a For example, the Global Auto Care division comprehensive company-wide approach to removed methanol across the Armor All® chemicals management in accordance with brand, resulting in a reduction of 17,215 pounds restricted substances lists and safer of methanol in 2017. Global Auto care also products initiatives. eliminated 61,736 pounds of methylene chloride from air conditioning refrigerant production over the year.

11 SPECTRUM BRANDS 2017 Corporate Citizenship Review Advancing resource efficiency in products and packaging Product stewardship in action PRODUCT STEWARDSHIP As we improve the inputs to our products Kwikset® Product Take-Back: and packaging, we also strive to encourage In 2017, Kwikset® launched the Spectrum Brands first-ever responsibility at the end of the products' Product Life Cycle Program for customers to dispose of their useful lives. Resources we use in our product used products in an environmentally responsible manner. Customers can send back their products to the Kwikset components and our manufacturing processes Denison location where they can then be dismantled and the have the potential for adverse impacts on parts can be reused or recycled as appropriate. human health or the environment. To avoid these impacts, we are engaging in stewardship Batteries Recycling: programs and creating opportunities for Spectrum Brands has partnered with Call2Recycle since the consumers to return products after use. non-profit's inception in 1995. Call2Recycle seeks to create Spectrum’s commitment to the environment an infrastructure in the US & Canada for consumers to recycle PACKAGING their batteries. In addition, our European VARTA® facilities is exemplified [by] their long-standing support sent nearly 396,820 kilograms of alkaline battery scrap for Spectrum Brands is exploring opportunities to recycling from 2014 – 2016. reduce excessive packaging and transition to for battery recycling through participation and fully recyclable or biodegradable packaging. financial contributions to the Call2Recycle® Canada Stewardship: For example, in 2016, the Remington Haircare Spectrum Brands participates in stewardship programs line developed an initiative to reduce the program. Its contribution to battery recycling across eight Canadian provinces. Through these partnerships, weight of plastic packaging, moving from plastic Spectrum Brands supported the recovery of more than clam shells to corrugated boxes. We completely and the circular economy have been critical to 396,000 liters of power steering fluid, 49,874 small home eliminated plastics from the packaging of four our continued growth and success. appliances, 101,966 bulbs and flashlights, and 4,943,600 products, and cut it by 98% for two additional “ kilograms of packaging materials. products, leading to a total weight reduction of 364,192 pounds in one year. Other divisions — CARL SMITH, Australia operations divert waste have begun applying these lessons, bringing CEO & President, Call2Recycle, Inc. and generate revenue: us closer to a more robust and comprehensive In 2015 we conducted a review of the Australian Home sustainable packaging effort. Appliance (George Foreman and Russell Hobbs) and Personal Care (Remington) businesses. By combining product improvements and partnering with leading regional reverse logistics organizations, TIC and Reworx, we cut landfilled returns by 77% over three years.

We're proud of our achievements. RETURNS SENT T AND 100 Improving product lifecycle management 80 60 tools helps us identify additional packaging 40 20

and recycling innovations. FY14 FY15 FY16 FY17 * AUS-only

12 SPECTRUM BRANDS 2017 Corporate Citizenship Review PEOPLE: EMPOWERING PEOPLE

OUR 2022 GOAL: Develop and launch a signature outreach program to positively affect the people in the communities where Spectrum Brands operates.

Spectrum Brands is built on a worldwide team of more than 18,000 talented individuals. Engaging employees at all levels is key to achieving our responsible growth goals and fulfilling our purpose. We value diversity and help our employees build great careers.

Sustainability also requires good governance. As a central part of our sustainability commitment, our leaders work to enhance responsible business practices across all of our brands.

13 SPECTRUM BRANDS 2017 Corporate Citizenship Review Governing sustainability At Spectrum Brands, we strongly believe in sharing sustainability ideas across the company. Sustainable governanceGovernance requires a continuous commitment to improve safety as well as environmental and social performance throughout our global operations and our supply chain. Executive Global Steering Advisory Board Committee Global Sustainability Council The idea is adopted. Out of our organization comes an idea. The idea is evaluated strategically. The idea is shared and analyzed. Sustainability governance at Spectrum Data Brands occurs through a multi-level continually structure. The Executive Advisory Board informs is the ultimate governing body; it is decisions. comprised of our senior executives from each business unit and function. Reporting to the Executive Advisory Board is the Global Steering Committee, which is made up of senior leaders from each region and business unit. This Committee is tasked with setting the overall sustainability strategy and evaluating performance. Our Global Sustainability Council comprised of subject matter experts across the company oversees execution. The Council ensures Spectrum Brands is on track with regulatory requirements, coordinates the sharing of best practices, and drives the implementation of sustainable business practices, relentlessly pursuing improvement.

14 SPECTRUM BRANDS 2017 Corporate Citizenship Review Making our communities stronger Spectrum Brands supports local and national causes to positively affect the communities where we operate. Our employees also select specific causes to support.

FOCUSED GIVING FOR A GREATER IMPACT Our philanthropic priorities are shaped by the $1.7M products we create—and by our communities. Supporting disaster relief We make the greatest impact with our We work with relief agencies that bring charitable resources by concentrating our know-how and resources to emergency corporate giving on community partners that situations. In response to natural disasters in align with our products. We call this approach 2017—such as the hurricanes in the United “Focused Giving.” States and the earthquake in Mexico— Spectrum Brands donated employee time, cash, batteries, flashlights, and home hardware products worth over $1.7 million to the Red Cross and the local Houston affiliate of the #ZapZika national non-profit Rebuilding Together. Building Zika awareness Our diverse product lines sometimes provide a platform to raise awareness of specific sustainability and health issues. For instance, the Zika virus is mainly spread by mosquitoes and can be dangerous for Consumer pregnant women, causing birth defects. In 2016, we donated more than 55,000 bottles Education of Cutter mosquito repellent in collaboration Improving health with the CDC in the U.S. Virgin Islands. In 2017, through education during the Zika virus outbreak that began in The Alliance for Consumer Education (ACE) South America, Spectrum Brands signed on as is a non-profit organization that educates a supporter of the non-profit March of Dimes, consumers on the proper use, storage, which works to promote the health of mothers and disposal of household and institutional and babies. products. Our Pet, Home & Garden division sponsored ACE presentations for company employees and students, parents, and educators in six schools within three Missouri I loved the day! Giving communities that had seen an uptick in youth deaths from inhalant abuse. The community back to the community outreach programs inform families about the and bonding with co-workers dangers of inhalants and Large volunteer events like this make me proud educate them on ways was a liberating experience. to prevent inhalant abuse. to work for a company like Spectrum Brands. “15 SPECTRUM BRANDS 2017 Corporate Citizenship Review “ Making our communities stronger continued It helps build cohesiveness EMPLOYEE ENGAGEMENT AND OUR within the company and ANNUAL DAY OF SERVICE Spectrum Brands employees volunteer a sense of community. It thousands of service hours with dozens of Working with the Clean Lakes Alliance feels good to do good. community organizations around the world. Colleagues on the ground often initiate these The financial support and Spectrum Brands programs, with “champions” taking the lead to corporate advice Spectrum is founding 2010 organize employees and determine how best to Brands has given Clean Lakes funder and active Spectrum Brands focus efforts locally. Alliance over the course of on the executive steps up corporate “ our partnership is unmatched. board of Clean Each spring since 2012, Spectrum Brands donation to employees across our U.S. divisions unite The leadership team and Lakes Alliance 2011 $100,000/year for our annual day of service. Our corporate “employees believe in our headquarters team often partners with the cause, which helps us make Clean Lakes Alliance to perform water quality a big impact in our community. Spectrum Brands and stewardship projects such as litter clean-up, Lake health is improving, and shares intern 2012 resources tree planting, and invasive plant removal. These it will continue to improve Spectrum Brands with Clean Lakes commits $1 million actions help educate our employees about thanks to the example set by Alliance and to Clean Lakes how to improve the quality of nearby bodies of Spectrum Brands. launches first annual 2013 Alliance over water, protect wildlife, and enrich life for volunteer day four years nearby communities. – JAMES TYE, Clean Lakes Alliance executive director & co-founder The National Environmental Education Foundation (NEEF) is a non-profit creating Clean Lakes Alliance is a non-profit Spectrum Brands builds 2014 a safer and healthier environment. In 2017, devoted to improving the water quality partnership through more than 300 Spectrum Brands employees of the lakes, streams, and wetlands of Loop the Lake bike ride and educational lunch- dedicated over 750 volunteer hours in the Yahara River watershed in southern Wisconsin. We are proud to have grown our and-learn events Middleton, WI; Lake Forest, CA; Dayton, OH; 2015 partnership with the Clean Lakes Alliance and St. Louis, MO. Spectrum Brands helped since the organization’s inception in 2010. fund events hosted by local community groups, such as the Pheasant Branch Creek Corridor, 2016 Clean Lakes Alliance Orchid Heights Park, Marshall Park, Five and Spectrum Brands Rivers Metroparks, Irvine Conservancy, and broaden the scope of the annual volunteer Gateway Greening Urban Farm. Our support of Spectrum Brands day with NEEF, volunteer projects and educational work allows commits $500,000 2017 involving employees employees to feel meaningfully engaged in their to Clean Lakes in Middleton, WI; Alliance over three communities and offers us an opportunity to St. Louis, MO; and years and achieves give back. Danbury, CT record participation in annual employee volunteer day

Community with purpose.

16 SPECTRUM BRANDS 2017 Corporate Citizenship Review Respecting our global workforce It is vital to our success that employees feel valued and see opportunities to develop their careers at Spectrum Brands. We want our teams to reflect the diversity of the communities around them. FOSTERING DIVERSITY AND INCLUSION Spectrum Brands prospers from the richness of cultures and ideas under our international umbrella. The Spectrum Brands Diversity Statement aims to ensure that all employees work together in an atmosphere of mutual respect, free of harassment, intimidation, or any form of discrimination based on race, ethnicity, color, religion, national origin, gender, disability, age, citizenship, or veteran status. All Spectrum Brands employees are expected to foster a work environment consistent with our values.

17 SPECTRUM BRANDS 2017 Corporate Citizenship Review Building careers at Spectrum Brands We want our employees to build long-term careers with us. In 2016, our talent management practice conducted a needs assessment to determine how our human resources professionals could help our various business lines achieve their overall strategic goals for long- term career development. As a result, we are sharpening our focus, using consistent evaluations, recognizing how individual goals can contribute to broader corporate goals, and building training and placement initiatives. GLOBAL INTERNSHIP PROGRAM EUROPEAN JUNIOR The Spectrum Brands global internship program MANAGEMENT PROGRAM helps students apply academic experience We grow talent from within. For example, in a real-world environment, with hands-on our European junior management program, projects and supportive managers. We offer launched in 2016, supports high-performing over 100 internships each summer in corporate employees nominated by senior management. offices, manufacturing plants, and distribution We select a dozen candidates for a six-month centers in functions including engineering, development program focused on leadership, operations, quality, marketing, and sales. A communication, and self-management. Spectrum Brands internship gives the intern— Participants present a final project to a senior and the company—a chance to “try before team. Four of these candidates are then you buy,” with great results: over the last five promoted into new positions, two of which are years, Spectrum Brands has hired 621 interns, at management level. with nearly 10% transitioning into full-time regular positions. Many of those early career professionals have already earned promotions or moved across functions, business units, and geographies—enabling them to grow, flourish, and change jobs without changing companies.

HUMAN RESOURCES MISSION: To be a preferred employer with long-term career opportunities.

18 SPECTRUM BRANDS 2017 Corporate Citizenship Review PLACES: INSPIRING PERFORMANCE EXCELLENCE

OUR 2022 GOALS: Reduce our carbon intensity Efficient and safe operations on a revenue basis by 3% year are the foundation of excellent performance at Spectrum Brands. over year between FY2017 and Our manufacturing facilities FY2022 (scope 1 and 2 are reducing natural resource consumption, increasing market-based emissions). efficiency, and cutting waste. Improve our water efficiency We also have begun work to achieve our water efficiency goal. across Spectrum Brands Furthermore, we intend to reduce locations by 3% on a per our carbon intensity. revenue basis between FY2017 and FY2022. Build, promote, and uphold our “Destination Zero” safety culture (zero-injury goals) across Spectrum Brands global locations.

19 SPECTRUM BRANDS 2017 Corporate Citizenship Review Saving energy and reducing emissions Spectrum Brands frequently reviews opportunities to reduce the environmental impacts and carbon footprint associated with our day-to-day operations and products. We recently implemented a global data Since 2012, Spectrum Brands has reported collection process for our major facilities to carbon emissions and climate related activities establish baseline greenhouse gas emissions. through CDP (formerly the Carbon Disclosure Our primary focus is on our most significant Project). In FY2016, revenue increased by operations, namely facilities worth more than over 7%, while emissions increased only 6%, $1 million in annual wages and product and resulting in an overall decrease in emissions LED–Lighting equipment assets, which in 2017 included close intensity. We reported these results in our 2017 to 60% of our employees. Within these facilities CDP Supply Chain Climate Change disclosure, 20+ Global Facilities our intention is to reduce scope 1 (direct which received a "C" or Awareness score. This From 2015-2017, we replaced standard lighting emissions from owned or controlled sources) score outranks sectoral peers and the industry with LED lighting. and scope 2 market-based emissions (indirect average, while indicating room for improvement. emissions from the generation of purchased

energy) by 3% on a per revenue basis each year from FY2017 through FY2022.* Wind Power REENUSE AS EMSSNS (metric tons C02e) Netherlands Wind turbine installed in 2010 produces an Scope 1 & 2 300,000 average monthly renewable energy supply of market-based 400,000 kWh, equivalent to ~24% of the site’s emissions totaled electricity needs. This avoids approximately 250,000 2,500 tons of CO2 emissions annually. 153,347 and 152,512 200,000 metric tons of CO2e emissions 150,000 in FY2016 and FY2017, respectively. Biofuel 100,000 Guatemala Biodigester installed in 2017 uses cow 50,000 manure to produce 600 liters of methane gas annually, which will be used to offset the facility’s purchased gas consumption.

0 FY16 FY17 FY16 FY17 FY16 FY17 FY16 FY17 FY16 FY17 N. AMERICA LATIN AMERICA EUROPE ASIA-PACIFIC GLOBAL TOTAL SCOPE 1 SCOPE 2 (LOCATION-BASED) SCOPE 2 (MARKET-BASED) 100% *Greenhouse gas inventory calculations were performed using the revised edition of the Greenhouse Gas Protocol Corporate Accounting & Reporting Standard (“GHG Protocol”), published by the World Business Council for Sustainable Development Renewable (WBCSD) and the World Resources Institute (WRI). GHG inventory was conducted for facilities under operational control. FY2016 inventory (scope 1, scope 2 location-based emissions, and scope 3 emissions associated with waste and water) has been verified Electricity by Trinity; Spectrum Brands will undertake verification of FY2017 inventory in 2018 and update results in subsequent reports as Germany appropriate. Chart does not include scope 1 biomass combustion or scope 3 emissions. 100% of electricity for our Melle, Germany manufacturing facility is obtained only from renewable sources. 20 SPECTRUM BRANDS 2017 Corporate Citizenship Review Eliminating waste Waste represents inefficiency in the use and consumption of natural resources. Because we desire to conserve natural resources, we collect data to track non-hazardous and hazardous waste disposal rates at our facilities. We are researching opportunities to expand on efforts by our facilities to divert waste material from landfills via recycling, reuse, or recovery and to use recycled rather than virgin raw materials where appropriate. Carton Reuse ASTE DSPSA DERSN (metric tons) Project Mercury-Free Xiamen, China 30,000 Global Hearing-Aid Supplier cartons are collected and reused for Battery Production packing finished products for export. 25,000 Spectrum Brands recently celebrated our The initiative is projected to reduce waste global conversion to mercury-free hearing generation by approximately 6 tons annually. 20,000 aid batteries. The conversion avoids the use of more than 15,400 pounds of mercury per year. We are the first hearing aid battery 15,000 manufacturer to fully convert, thereby leading the way toward reducing the environmental Metal Recycling 10,000 pollution from landfilled and leaked mercury. Denison, TX 5,000 Total clean brass, steel, aluminum, and dross product scrap material sold for reuse equaled more than 59 million 0 FY16 FY17 FY16 FY17 FY16 FY17 FY16 FY17 FY16 FY17 pounds from FY2015 – FY2017. N. AMERICA LATIN AMERICA EUROPE ASIA-PACIFIC GLOBAL TOTAL Recycled RECYCLED, REUSED, & RECOVERED WASTE NON-HAZARDOUS WASTE Content HAZARDOUS WASTE US Lockset Re-use Nine of our Kwikset® brand security products Spectrum Brands disposed of 11,106 and 11,923 metric tons of hazardous contain 20% to 50% recycled content. and non-hazardous waste in FY2016 and FY2017, respectively. Our waste Our SmartKey re-keying technology recycling, reuse, and recovery efforts resulted in 16,530 and 19,643 metric contains nearly 30% recycled metal. tons of waste diverted in FY2016 and FY2017, respectively.

21 SPECTRUM BRANDS 2017 Corporate Citizenship Review Using water efficiently We predict significant potential to increase the efficiency of water usage by our facilities. We will work to improve our water efficiency across our locations by 3% on a per revenue basis between FY2017 and FY2022. Our internal monthly facilities report includes water withdrawal measurements, which allow us to determine a baseline for our water efficiency goal. With a wide range of products and manufacturing processes to consider, our focus is on developing a definition of efficiency that will be meaningful, drive action, and allow us to measure and report progress. As a growing business through transactions, acquisitions, and a growing range of products, total water withdrawal increased from FY2016 to FY2017. However, we set Water Saving the baseline for our water efficiency goal to FY2017 activities. at Pfister Several of our Pfister lavatory faucets and shower products demonstrate water efficiency by achieving compliance with the ATER TDRAAS (cubic meters) EPA’s WaterSense program requirements. The more than 3.3 million units sold during 2,000,000 2015 and 2016 collectively help save nearly 1,800,000 2.2 million gallons of water. 1,600,000 1,400,000 1,200,000 1,000,000 Waterless 800,000 Wipes 600,000 Armor All Auto Care Products 400,000 Our extra-large Armor All® Ultra Shine pre-moistened Wash Wipes allow 200,000 customers to remove dirt, dust, grime and more without using additional water. 0 FY16 FY17 FY16 FY17 FY16 FY17 FY16 FY17 FY16 FY17 N. AMERICA LATIN AMERICA EUROPE ASIA-PACIFIC GLOBAL TOTAL Home washing can use an average of 60 gallons per vehicle, while car washes can use anywhere between WATER WITHDRAWALS 15 to 45 gallons per vehicle.

Water withdrawals in FY2016 and FY2017 totaled 1,842,906 and 2,009,673 cubic meters of water, respectively.

22 SPECTRUM BRANDS 2017 Corporate Citizenship Review This initiative began in 2012, As we work to establish that These locations have within the Hardware & Home culture, Spectrum Brands significant manual material Improvement division, and has implemented many movement, making these was quickly extended to management and training successes even more all manufacturing facilities programs, often with a focus on impressive. Other sites are globally. It is now a highlight of effective communication. For also celebrating workplace Starting with safety: our environment, health, and instance, we implemented a safety milestones. 'Destination Zero' safety (EHS) practices. The Safety Conversation program We plan to build on the overarching goal is to achieve that involves engaging Spectrum Brands initiated success of Destination Zero by zero injuries across Spectrum employees throughout the an aggressive global safety turning it into a comprehensive Brands locations. company in one-on-one awareness program called program for operational safety conversations. Destination Zero to promote To reach Destination Zero, excellence across all of our a “safety before production” every one of our employees Our approach is working. global facilities. We will bring culture where it is more is expected to be a Safety Our facilities in China, U.S., the same focus and culture important for employees to go Ambassador who looks out for and Mexico have achieved that allowed us to advance home safely each day than to their own safety and the safety significant success in workplace safety to our reach a production quota. of their fellow employees. Destination Zero performance. environmental performance.

TTA RECRDABE NCDENT RATE 4 Total employee injuries in FY2017 2.2 MILLION 3.5 was 197, down from HOURS 3 238 in FY2016. This Charlotte, NC 2.5 resulted in a total recordable incident Zero Lost Time Injuries 3,800,000 2 rate (TRIR) in FY2017 1.5 of 1.16, down from HOURS 1 1.38 in FY2016. Xiamen, China 0.5 10,000,000 Zero Recordable Injuries Presented with a Chinese Government 0 HOURS award for Safety Management Excellence 4.2017 2.2017 8.2017 6.2017 10.2017 12.2016 Mexicali, MX 10.2016 Zero Lost Time Injuries SPECTRUM BRANDS AVERAGE GLOBAL AUTO CARE * New Division *Total recordable incident rate is based GLOBAL BATTERIES & APPLIANCES on a 12 month rolling average. HARDWARE & HOME IMPROVEMENT PET, HOME & GARDEN

23 SPECTRUM BRANDS 2017 Corporate Citizenship Review POSSIBILITIES: ALWAYS LOOKING TOWARD THE FUTURE

OUR 2022 GOALS: Increase our collaboration The possibilities for responsible growth are vast. As we grow, we with strategic partners. will continuously update our ambitions, cultivate partners, Achieve recognition and enhance our sustainability for sustainable business programs for the good of the company and the environment. practices in an investor-focused sustainability index no later than FY2022. Use our data intelligence and reporting to create new and better goals.

24 SPECTRUM BRANDS 2017 Corporate Citizenship Review Collaborating with strategic partners We believe partnerships are crucial to achieving sustainability. We will build on the work under way with our current partners, such as:

THE HOUSEHOLD AND COMMERCIAL THE ALLIANCE FOR RESPONSIBLE PET FOOD INSTITUTE OPERATION CLEAN SWEEP PRODUCTS ASSOCIATION ATMOSPHERIC POLICY Spectrum Brands serves on the Regulatory Originated by the Plastics Industry Association (PLASTICS) and now a joint program of The Household and Commercial Products The Alliance for Responsible Atmospheric Affairs Committee of thePet Food Institute, PLASTICS and the American Chemistry Council, Association represents the interests of Policy is an industry coalition organized in which actively supports its members who make is an environmental companies involved in the manufacture, 1980 to address the issue of stratospheric 98% of all U.S. pet food and treat products. PFI Operation Clean Sweep stewardship program designed to empower formulation, distribution, and sale of consumer ozone depletion. It is the primary voice is committed to helping dogs and cats live long and aid employees of the plastics industry and products that help customers create cleaner of manufacturers, businesses and trade and healthy lives. As the voice of U.S. pet food others to keep resin pellets, flakes, and powder and healthier environments. Spectrum Brands is associations who make or use fluorinated makers for nearly 60 years, PFI provides factual out of the marine environment. Spectrum an active member of the HCPA at the leadership gases for the global market. information about pet food and treat safety, and working group level, engaging retailers, nutrition, and health to pet lovers, and advocate Brands is a supporting member of OCS. Today, the Alliance coordinates industry suppliers, competitors, and other stakeholders for a transparent, science-based regulatory participation in the development of in meeting our shared environmental, health, environment for its members. economically and environmentally beneficial and safety goals and social objectives. international and domestic policies at the nexus For example, Pet, Home & Garden holds of ozone protection and climate change. positions on the HCPA Board & as Vice Chair Global Auto Care is a member holding a of the HCPA Pesticide Division. Board level position.

Moving forward with new partners In addition to continuing to foster our existing partnerships, we will also work to find and cultivate good working MEMBER OF AMFORI, THE LEADING THE SUSTAINABILITY CONSORTIUM relationships with new partners with strategic sustainability GLOBAL BUSINESS ASSOCIATION FOR Spectrum Brands joined the global organization views and goals that are similar to ours. OPEN AND SUSTAINABLE TRADE. The Sustainability Consortium as a member in 2017. TSC convenes diverse stakeholders We participate in amfori BSCI. For more to work collaboratively to build science-based information visit www.amfori.org decision tools and solutions that address The Business Social Compliance Initiative sustainability issues that are materially is an initiative of amfori providing a supply important throughout a product’s supply chain chain management system that supports and lifecycle. By collaborating with other TSC TRUCOST companies to drive social compliance and members, including major retailers like Kroger and Walmart and leading non-profits like WWF Trucost, part of the S&P Dow Jones Indices, assesses and prices risks relating to climate improvements within their global supply and The Nature Conservancy, Spectrum Brands change, natural resource constraints, and broader environmental, social, and governance (ESG) chains. Our membership with BSCI helps us helps address environmental, social, and factors, enabling companies and financial institutions to understand exposure to ESG factors, implement international labor standards, protect economic imperatives in product supply chains. inform resilience, and identify the transformative solutions of tomorrow. Spectrum Brands began workers’ rights, and improve our supply chain its partnership with Trucost in 2018 to conduct materiality assessments based on the U.N. compliance program. Sustainable Development Goals (SDGs).

25 SPECTRUM BRANDS 2017 Corporate Citizenship Review Pursuing our goals using the 4Ps

PRODUCTS PEOPLE PLACES POSSIBILITIES We plan to build upon our past successes, We will continue to take care of our people Within our places of business, safety is of Through all of this work, we will gain new applying lessons from within our corporate throughout the company and the communities paramount importance. We will extend the insights into improving product and supply divisions and learning from industry best where they live and work. We are strengthening reach of our work to reduce operational chain sustainability. Analyzing supply chain practices. As we develop our understanding of our corporate governance. We prioritize impacts to more facilities and across more impacts can enable us to better focus our the most significant social and environmental diversity in our teams and in our suppliers, and impact areas by building Destination Zero into efforts to create more sustainable products impacts of our products, we will refine our we will work to grow the careers of our team a comprehensive program for operational and manufacturing processes as we constantly approach to sourcing, product innovation, members. We remain committed to contribute excellence. We will continue to implement a work to innovate and improve. Together we safety, packaging, and stewardship. to disaster relief, particularly where we have data collection and internal validation structure can discover new possibilities to improve relevant capability. And we take to heart the that allows us to set baselines, identify the sustainability and drive progress at positive feedback from our annual day of largest sources of impacts, and measure Spectrum Brands. service, and are expanding it to additional sites progress. We will implement a portfolio of in a coordinated, themed action. actions to achieve reductions in scope 1 and scope 2 emissions, and we will develop our approach to achieving our water efficiency goal.

Together will will ensure that our products are Made with Purpose, for the good of our employees, our communities, and our customers.

Reporting our performance

Investors’ growing interest in materiality and social Furthermore, we aim to achieve recognition More information on our global business operations, and environmental risk management are driving for sustainable business practices in an Corporate Governance structure, and financial more companies to expand their measurements and investor-focused sustainability index by FY2022. performance is available on our Investor Relations reporting. To increase transparency and better inform Companies are assessed on a comprehensive array website. Detailed financial data is available in our our investors, customers, and other stakeholders, of environmental, social, economic, and governance Annual Form 10K. Additional supporting policies we will begin to track and disclose our non-financial performance indicators. Such metrics are sometimes and materials are available on our Corporate performance through a range of frameworks, overlooked in conventional financial analysis, but are Compliance and Social Responsibility website. including the aforementioned Walmart Sustainability believed to be important for a company’s long term Our sustainability philosophy and goals are available Index (WMSI), as well as CDP (formerly known as success. We will review the requirements of various on our Spectrum Brands Global Sustainability the Carbon Disclosure Project), EcoVadis, and the indices to determine the most appropriate match. Statement and Goals website. S-Group sustainability survey. These frameworks provide insight on how to improve our sustainability strategies and help guide our corporate governance.

26 SPECTRUM BRANDS 2017 Corporate Citizenship Review Spectrum Brands, Inc. | GBA Logos

Global Battery Division | Rayovac & Varta

Logo (Rayovac) Logo on Black

Logo (Varta) MADE WITH PURPOSE 2017 Corporate Citizenship Review

Logo (Spectrum Brands)

The majority of the data and information in this report is from CY2017 except where otherwise noted. We have provided additional trend data where that WWW.SPECTRUMBRANDS.COM information was available. This report will serve as a performance baseline ©2018 SPECTRUM BRANDS, INC. for us moving forward and we will report on progress in subsequent reports.