The Power of Good 2016 Corporate Social Responsibility Report 101 Oakley Street | Evansville, IN 47710 | 1.877.662.3779 | berryglobal.com The Power Message from Tom Salmon Approximately 10 years ago, as part of an acquisition, I joined Berry. of Good Since then, I have had the opportunity to work in a variety of capacities throughout the Company. No matter which position I held, or in which division, I have been able to witness first hand the power “that good can have. Be Good Feel Good For nearly 30 years, in honor of Earth Day, Berry’s Evansville, Indiana, manufacturing facility has hosted As a global leader in packaging and protection solutions, we believe we have a responsibility to play a positive role in the communities and third grade students from area schools. Students tour environments in which we operate and serve. From the way we the facility, learn about sustainability, and are operate our facilities, to the industry partnerships we have developed, presented with a sapling. to our community education programs, Berry is committed to our role as a responsible corporate citizen. Pictured on the cover is Alex Schaefer, who visited the We hope you enjoy this report and the glimpse it offers of the good we facility 9 years ago, as part of the Earth Day student are doing and the power it is having. Tom Salmon, CEO of Berry, tours. Upon returning home, Alex planted her tree answers questions after and today it remains part of her family’s landscape. reading to a group of Now a Senior in high school, Alex plans to attend children at a daycare ” facility near Berry’s global Purdue University and study engineering. headquarters. Do Good On the Cover 1 About Berry At Berry, we are committed to our mission of ‘Always Advancing to Protect What’s Important,’ and proudly partner with our customers to provide them with value- added customized protection solutions. Our products include engineered materials, nonwoven specialty materials, and consumer packaging. * With world headquarters in Evansville, Indiana, we have approximately 130 facilities across the globe. Berry is listed on the New York Stock Exchange under the ticker symbol BERY. 2 3 Be Good The trends of healthy lifestyles, fresher and healthier We are also expanding our Phillipsburg, New Jersey, Delivering customer preferred products foods, and increased focus on healthcare continue facility by 150,000+ sq. ft. By updating and investing with lower resource requirements is a to drive our customers’ businesses. To be prepared in this northeastern U.S. facility, we can better serve critical part of our Sustainability and for the growth in these markets, at Berry, we are our global healthcare customers. “Social Responsibility efforts. In the doing the following: Health, Hygiene, and Specialties In May, we announced a significant capital Division, we are very proud of our work We continue to develop new offerings in our investment in our Health, Hygiene, and Specialties to reduce environmental impact. healthcare product lines. For packaging, that business that will increase our capacity by over We’ve delivered incredible results that translates to easy-to-open and senior friendly, but 16,000 metric tons. The products from this division were more than double our 2016 also child resistant packaging. are used in items such as diapers, incontinence energy intensity reduction targets. pads, and other healthcare products. In addition, our nonwoven business continues to Scott Tracey, President of Berry’s innovate in areas such as softness and durability, to Extending shelf life is a good way to help fresh foods Health Hygiene, and Specialties” Division deliver incontinence and feminine care products stay viable longer. In support of this, we continue to that meet and exceed consumer expectations. develop new types of barrier packaging that can help with shelf life extension. 4 5 Innovation Blueprint At Berry, innovation is not just about creating new products; it is also about advancing our processes and platforms. Jason Paladino, the Executive Vice President of Innovation for the Consumer Packaging Division at Berry, manages a team of talented Engineers, Scientists, Technicians, Designers, and Marketers all focused on the common goal of innovation through the use of our Innovation Blueprint. The Innovation Sustainability is a fundamental design principal considered during the "Envision" stage of any project at Blueprint is designed to focus on the end-consumers needs as we move Berry. Optimizing designs for the lowest cost, selecting environmentally responsible materials, and through the product development stages: Envision, Develop, Scale, and choosing efficient production methods while still meeting functional requirements are part of our Launch – all with validation touchpoints throughout. “considerations . These decisions at the very onset of a project ensure that the final product has low material impact and that 'end-of-life' meets the desired sustainability objectives. One example of this is Jason Paladino Versalite®, which was conceptualized during "Envision" as an insulating material that was also recyclable. Executive Vice President, Berry commercialized this innovation, and now offers it to the market as an environmentally responsible, Innovation recyclable, polypropylene, insulated cup. Jean-Marc Galvez, President of Berry’s Consumer Packaging Division 6 7 Feel Good We believe in the importance of continuous improvement. This year, we are moving toward reporting information on a broader range of topics and doing so We strive to ensure that our actions help our employees according to the Global Reporting Initiative (GRI) framework. This will provide additional information feel good about knowing they are working in a safe and which interests many of our stakeholders. We are disclosing this information in hopes of being a sound ethically-sound environment; our communities feel good corporate citizen and to ensure that all of our stakeholders feel good about our transparency. As this is as we implement initiatives to minimize our environmental our first year in working towards full GRI reporting, we are beginning with a limited scope of GRI footprint; and our investors feel good knowing that we disclosures. As with everything we make solid business decisions to protect their investments. do, we plan to continuously improve our efforts in this area and In this same vein, we continuously strive to advance our increase our disclosures in the sustainability reporting. Two years ago, we published our coming years. first Corporate Social Responsibility report, which included “goals for reducing our environmental impacts in several “ These additional disclosures will key areas: electricity, natural gas, water, greenhouse gas, be published in a separate GRI and landfill waste intensity. Index found on berryglobal.com. Last year, we published our second report, which, for the Robert Flores, ” * This data represents year-over-year performance for manufacturing sites first time, included year-over-year performance in each of Director of Sustainability operated by Berry Global in FY2015. It excludes FY2016 acquisitions. This data the aforementioned areas. 8 8 has not been audited by a third party. 9 Energy Reduction As our facility footprint continues to grow, we are conscious that our energy use Homer’s most impactful improvement came through analyzing their HVAC will increase as well. Energy is an aspect of the business that Berry is focused chiller performance. They replaced old, inefficient chillers with modern, high- on to maximize our efficiency globally. efficiency systems. Chiller loop system piping improvements helped to better utilize chilled water. In addition, several key components on the chillers were Provided as an example are the results achieved by one our Engineered upgraded, repaired, and replaced. Moreover, programmable touch screen Berry’s Homer, Material Division facilities in Homer, Louisiana. This year's energy conservation controls were upgraded. Louisiana, facility actions reduced their electrical intensity from 1.92 kWh / lb (2015) to 1.59 kWh / has reduced lb (2016). The combined impact of all of these changes allow Homer to cycle off their electrical cooling circuits more frequently and avoid running un-needed compressor intensity by 17% Plant Engineer, Darin West, helped drive Homer's energy intensity reduction capacity for about eight months of the year. With the exception of the hot activities with several projects including chiller system improvements, lighting summer months, Homer has reduced 465 tons of chiller capacity through retrofits, and eliminating phantom load by implementing energy management these actions. Darin West system controls. Engineering Manager Homer, Louisiana 10 11 Diversity & Inclusion A Journey We know the best path for creating a strong future for all of our stakeholders is My team and I are often asked, ‘What does good look like in regards to through embracing and understanding the importance of diversity and safety.’ Statistically speaking, Berry’s safety is good – our incident rate is far inclusion. below the industry average. But at Berry, we do not view safety as a mere “statistical comparison with our peers. We view good safety as a journey By doing so, we are able to learn from the unique talents and perspectives that where together we are continually improving our practices to help us each of our employees brings to the organization. This, in turn, fosters further ensure the safety of each other and the safety