Shaping a sustainable future - Sustainability Review 2019 - brambles.com/sustainability
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Sustainability Review 2019
Shaping a
sustainable
future
brambles.com/sustainability
Contents Brambles at a Glance
Brambles’ purpose is to connect people with life’s essentials every day.
Circular Share and Reuse Model 3
About Our Review 4 Through its ‘share and reuse’ model, Brambles moves more goods to more
Materiality Matrix 4 people in more places than any other organisation.
Introduction from the CEO 5
ESG Recognition and Roadshows 6
Our Progress Towards Our 2020 Goals 7 What Brambles does For shareholders, Brambles delivers sustainable growth
at returns well in excess of the cost of capital and seeks
Better Business 8 As a pioneer of the sharing economy, Brambles is one of the
to generate sufficient cash flow through the cycle to fund
world’s most sustainable logistics businesses.
Better Supply Chains 9 dividends and support reinvestment in growth, innovation and
Its circular business model perpetuates the share and reuse the development of its people. Further details are available in
Better Collaboration 11
of the world’s largest pool of reusable pallets and containers. Brambles’ 2019 Annual Report.
Thought Leadership, This enables Brambles to serve its customers while minimising For employees, Brambles provides development and exciting
Advocacy and Innovation 14 the impact on the environment and improving the efficiency career opportunities in approximately 60 countries. By fostering
Governance Update – and safety of supply chains around the world. a culture of innovation and agility, Brambles seeks to attract
Modern Slavery and TCFD 15 Brambles’ platforms form the invisible backbone of and retain the talent which is integral to its success.
Better Workplace 16 global supply chains, primarily serving the fast-moving In a resource constrained world, circular business models
consumer goods, fresh produce, beverage, retail and like that operated by Brambles are recognised as contributing
Safety 17
general manufacturing industries. to a critical economic evolution to enable the world to trade
Learning and Development The world’s largest brands trust Brambles to help more responsibly. By regenerating what it extracts and by
and Talent Management 18 them transport life’s essentials more efficiently, safely providing its products via a service, Brambles helps reduce
Inclusion and Diversity 19 and sustainably. both the constant pressure on natural resources and the
waste production typical of conventional linear business
Better Planet 20 How Brambles Creates Value
models. Brambles capitalises on its position in the supply
Natural Resources 21 Brambles uses the power of its circular business model,
chain to enable customer collaboration and address
network advantage and unique expertise to leverage key
Zero Emissions 25 sustainable development challenges, such as optimising
capital inputs into its business, generating significant value
transport networks and addressing food waste and promoting
Zero Waste 26 for customers, shareholders and employees.
sustainable use of the world’s forests.
Better Communities 27 For customers, Brambles’ end-to-end supply chain solutions
In this way, Brambles helps create a circular economy, on a
Community Investment 28 deliver operational, financial and environmental efficiencies
global scale.
not otherwise available through one-way, single-use
Thank You 30 Brambles has used the Integrated Reporting ‘capitals’
alternatives. Further details are available on page 9.
Framework1 to illustrate the interaction and interdependencies
between its sources of value, business model and ability to
For more information, go to: create value over time. View the infographic on page 3.
brambles.com/sustainability
1
Integrated Reporting highlights the key resources and relationships used and affected by an organisation
Sustainability Review 2019 2
INPUTS VALUE CREATION OUTPUTS
By sharing and reusing Brambles’ products versus single-use alternatives,
value is created for its customers, the environment and society.
Natural Capital Natural Capital
Brambles’
99.7% wood from certified sources platforms help Customer-driven environmental savings:
which regenerates stocks of raw reduce food
2.0m tonnes of CO2
materials and drives demand for waste
Producer Manufacturer 2,600 megalitres of water
sustainable forest products
1.7m m3 of wood
1.7m trees
1.3m tonnes of waste
Manufactured Capital
Transport and
other customer Social and Relationship Capital
330 million assets shared and
collaboration
reused throughout the world’s
Customer value:
supply chains
Circular
• Enhance operational efficiency 2
• Free up cash and resources
Share and Reuse
• Lower overall supply chain costs
Human and Intellectual Capital • Sustainable packaging objectives
Model
Attracting talent, ideas and innovation Building our social licence through
advocacy for a circular economy
Intellectual Capital
Network advantage and digital
Financial Capital solutions are creating the supply
chains of the future
Attracting long-term investment Committed to zero
product waste to
landfill Human Capital
Developing, engaging and remunerating
Service Centre Retailer our people
Social and Relationship Capital
Fostering positive Financial Capital
stakeholder relationships
in communities
60% of electricity was from Economic Economic
renewable energy sources Value3 Economic Value
2
United Nations Sustainable Development Goal Retained Value Generated Distributed
12 aligns with Brambles’ circular business model.
For more information visit brambles.com/
sustainability
US$1b US$5b US$4b
3
Economic value is a measure of the broader Scale-related Network scale density Growth, innovation
financial benefit provided by an organisation operational efficiencies and expertise and people
All data, definitions and calculation methodologies are available in our supplementary information document at brambles.com/sustainability-review Sustainability Review 2019 3
About Our Review Materiality Matrix
Brambles’ Sustainability Review reports on our Brambles has engaged key stakeholders to contribute
activities assessed as material sustainability issues, to the formation of this materiality matrix.
for the financial year ending 30 June 2019 and It outlines the top issues ranked for relative importance to our stakeholders and its relative
importance to Brambles. A variety of sources are used to inform this process including
is part of a suite of external communications surveys with customers, investors, peers, industry groups, employees and media reviews.
including Brambles’ 2019 Annual Report available Brambles considers the materiality process to be iterative and is reviewed and updated
regularly. More information on this process is available in the supplementary document
for our stakeholders. on our website.
Our supplementary information document for this review, available on the Brambles
website (brambles.com/sustainability), contains further information on assessment of
materiality: risks and opportunities; assurance process; data measurement techniques; Climate change impacts High priority
stakeholder engagement; and a glossary of terms. Also available on our website is a
Sustainable (business) growth
table detailing our response to the following three sustainability reporting frameworks:
Move to climate-neutral circular economy Zero harm
• Global Reporting Initiative (GRI) Standard
• UN Global Compact Communication on Progress for 2019 Social impact of value chain
• UN Sustainable Development Goals (SDGs). Overuse of the world’s resources
(including raw materials)
Relative importance to stakeholders
Brambles is currently undertaking a process to develop its 2025 sustainability Work/life balance
programme with the intention of announcing the new commitments in FY20. This
Transparency & corporate governance
preparatory work involves consultation with key stakeholders including customers, (incl. anti-corruption and bribery)
investors, non‑government organisations, thought leaders, industry bodies,
Learning and
management and employees. Environmental impact
development
Brambles uses the services of KPMG to provide limited assurance on key elements of this of direct operations
review. Information which has been subject to such assurance is clearly identified by the
words, “This page is covered by assurance” or “Data on this page is covered by assurance”.
The KPMG Assurance Report is available on the Brambles website at
brambles.com/sustainability-review
Priority
Relative importance to Brambles
Sustainability Review 2019 4
Introduction from the CEO
As Brambles enters the final year of a terrible accident in the future. This highlights the importance
of the next phase of Brambles’ Zero Harm strategy, “Safety
our 2020 goal period, it’s clear that Differently”, which seeks to elevate our performance to the
the commitments the business made next level.
Throughout FY19, there has been clear Environment Social
back in 2015 are even more important and Governance (ESG) themes in our conversations with
for our stakeholders today. many investors. Our FY19 ESG roadshows engaged directly
with existing and prospective investors to discuss both our
Society’s awareness of climate change and waste from business performance and how the circular business model
single‑use packaging is firmly in the spotlight as consumers differentiates our brand and helps customers make tangible
draw links between their purchasing behaviour and these progress towards their own sustainability goals. These
issues. Within this context Brambles is ideally positioned to discussions also looked at future challenges and in particular
help retailers and brand owners take action in their supply how Brambles will respond to the recommendations set out by
chains to address changing consumer preferences for products the Task Force for Climate‑related Financial Disclosures (TCFD).
that are ‘faster, easier and cheaper’ and also, sustainable. As we reflect on the successes and growth of our Sustainability
We have made very good progress towards meeting Programme, we are also developing a roadmap for the future.
our 2020 goals and in particular, I’d like to highlight our We are discussing the next stage with key stakeholders to Business has a key role in shaping
commitment to sourcing certified sustainable wood. confirm what is important for them and what they expect
Brambles’ scale and geographical coverage drives positive from Brambles to ensure we continue to create value now a sustainable future.
outcomes in local forestry industries by increasing demand for and well into the future. What is clear is that business has a
certified forestry products. We also now have more renewable key role in shaping a sustainable future and that partnerships
energy powering our service centres, making our already low will be critical to achieving shared objectives such as
carbon solutions even more sustainable. Similarly, we continue the UN Sustainable Development Goals (SDGs) by 2030.
our progress towards achieving our gender diversity goals Transitioning from doing ‘less bad’ to creating positive and
and we are expanding the scope and breadth of our Diversity lasting change through doing ‘more good’ will be essential.
Programme. On page 19 we share some initial stories about This is why Brambles is exploring what a truly regenerative
Going Beyond Gender. business looks like and how our position as the invisible
backbone of the global supply chain can help create more
Additionally, in this review, we introduce our Zero Waste World
positive outcomes for our people, our customers and society.
initiative, which capitalises on our strengths in the circular
economy to partner with other leading companies to create
smarter and more sustainable supply chains.
Unfortunately, at the time of writing the Brambles’ FY19
Sustainability Review, we experienced a tragic incident at Graham Chipchase
the CHEP Bellpuig plant in Spain, resulting in the death of Chief Executive Officer
our colleague, José Luis Segura. This loss has impacted us
greatly and we are doing everything we can to avoid such
Sustainability Review 2019 5
ESG Recognition
“Leader” in top 1% of companies
analysed
Brambles continues to achieve
consistently high scores in reputable
investor surveys, receiving recognition as
Top 10% of companies analysed
an ESG leader. Here, we offer a snapshot
globally achieving the MAXIMUM
of ESG ratings including Brambles’ Morgan Stanley
Capital International AAA RATING
performance for the year reviewed.
Second position in industry
category, placing Brambles
ESG Roadshows in the 96% percentile for 2019
During FY19, Brambles completed
ESG roadshows throughout Europe, Brambles was assessed as the
North America and Australia, which second most sustainable international
provided the business an opportunity to company in the world
share our sustainability story and learn
what’s important for investors ranging
from institutional pension funds to Brambles was included in the
sustainability focused impact funds. CDP Forest B List
The key themes arising from these conversations included the
importance of sustainability issues for retail customers and food
producers such as waste packaging, climate change, and regulations
around human rights and slavery in supply chains. We also discussed
Constituent of the FTSE4Good
what’s next for Brambles’ sustainability journey including how we can
continue to lead the transition to a circular economy. index 2014, 2015, 2016, 2017
and 2018
Sustainability Review 2019 6
Data on this page is
covered by assurance
Brambles’ 2020 Sustainability Goals Performance Against Goals Change Since 2018
Our Progress Towards Our 2020 Goals Better Planet – Zero Deforestation
100% of wood from certified sources 99.7% wood from certified sources 0.3% pts
Yearly progress towards 100% Chain of
62.2% wood carrying full Chain of Custody certification -3.8% pts
Custody certified wood
Better Planet – Zero Emissions
Zero Emissions
20% CO2 reduction in emissions
18% reduction in CO2/unit since 2015 -8.6% pts
ion Ze per unit delivered
stat CO2 ro
e W
or a Yearly improvement in energy provided
ef from renewable sources
60% energy from certified renewable sources 34% pts
st
D
e
ro
Better Planet – Zero Waste
Ze
er Plane 94% Brambles’ largest managed sites diverted wood product
Bett
ins
t Steady
He
Zero product (wood and plastic) from landfill
Cha
lpin
waste to landfill 100% Brambles’ largest managed sites diverted plastic
g th e
Achieved
B e tt e r S u p pl y
product from landfill
Environment
Better Supply Chains
B etter C o m
u sin e s s
2.0 megatons CO2e saved 2%
Yearly environmental improvements 2,595 megalitres water saved 0%
in Brambles’ customers’ supply chains4
rB
1.7 million m3 wood saved 6%
n
ratio
un et
te
1.3 megatons waste diverted from landfill 1%
m
H el
itie B
abo
s
pin
1.7 million trees saved by our ‘share and reuse’ model 6%
oll
gE
Better Collaboration
rC
du
tte
ca
n 246 customers 9%
Be
tio
Yearly improvements in customer
69,671,488 kilometres saved through transport collaboration 11%
He e collaboration projects
lpi c
ng pla 84,499 tonnes of CO2 saved through transport collaboration 57%
Foo
d Se r Work
c u rit y Bette Better Workplace – People
25% reduction in Brambles’ Injury Frequency
5.9 BIFR since 2015 -18%
Rate (BIFR)
30% of leadership positions are to held by 27% women on Brambles’ Board -9% pts
1 2 women
3 including 30% at Board level and
30% at management level5 29% women in management positions 0.6% pts
Achieve global best practice employee
76% employee engagement New baseline
VIDEO engagement of 79%
Producer Manufacturer
Shaping a
sustainable FY19 Brambles’
Circular
Share and Reuse Better Communities – Volunteering Time
Model
future
Sustainability Highlights Interim target of one day per employee 1.91 volunteer hours/employee/year 14%
per year (provision of three days per employee
Service Centre Retailer
per year) 21,602 employee hours volunteered 28%
Better Communities – Donations
Contribute 0.7% of pre-tax profits to
US$4,421,028 – 0.68% of pre-tax profits 22%
our Better Communities programmes6
= Improvement / achieved = Steady = Decline
Brambles’ purpose is to connect people with ...and our sustainable business model is well 4
...to
IFCO help the world
excluded fromtrade more sustainably.
all calculations including FY18 comparisons. Due to the divestment of IFCO, the tonnes of food waste saved by using
life’s essentials every day... positioned...
RPCs has been excluded. More information will be available in our supplementary information document
All data, definitions and calculation methodologies are available in our supplementary
information document at brambles.com/sustainability-review. Charitable donations not
5
From FY15-FY18 30% or more of Brambles’ Board were women
covered by assurance. 6
Better Communities financial donations not covered by assurance Sustainability Review 2019 7
Better Business
Brambles creates better supply
chains by helping customers deliver
life’s essentials, sustainably.
In practice, this means transitioning
customers from single-use or
one‑way packaging to reusable
packaging. This eliminates waste
and reduces demand on natural
resources, accelerating the evolution
to a circular economy.
When we amplify the benefits by
continuously sharing and reusing Better Supply Chains Better Collaboration
Year on year environmental Year on year improvement
our platforms across collaborative improvements in Brambles’ customers’ in customer collaboration
supply chains projects
networks in each region, we truly
create better supply chains on a
global scale. Brambles’ Better Business 2020 sustainability goals embody innovation
through our circular business model and collaboration throughout
the supply chain. Our goals directly align with the United Nations
Sustainable Development Goals.
Sustainability Review 2019 8
Data on this page is
covered by assurance
Better Brambles is built on pure circular principles
The Ellen MacArthur Foundation is recognised as the global authority on the circular economy. It has identified three key
Supply Chains principles that form the foundation of a circular system.
Environmental savings in our customers’ supply
chains in comparison to single-use alternatives
Our Approach
Providing a sustainable alternative 1.7 million
to single-use packaging reduces the trees
Producer Manufacturer
environmental impact of our customers’
operations. In this way, Brambles offers 2,600 megalitres
a working case study for customers of water
to reference as they adapt to growing Circular
consumer awareness about waste and
Share and Reuse 2.0m tonnes
the importance of a circular economy of CO2
Model
for a sustainable future.
The environmental benefits of our 1.7m cubic metres
circular ‘share and reuse’ model of wood
Service Centre Retailer
are verified using robust Life Cycle
Assessment (LCA) studies. 1.3m tonnes
The results are illustrated in the of waste
Natural Capital component of the
infographic on page 3. The Ellen MacArthur Foundation’s principles of
How Brambles implements these principles for customers
a circular system
Design out waste and pollution Sharing and reusing pallets and containers is circular by
1
80% of a product’s environmental impact can be design. It eliminates the concept of waste and provides
determined during the design stage. By viewing waste customers with a foundation for their own circular system.
as a design flaw, it can be avoided in the first place.
Keep products and materials in use Designed to be durable and deliver long-term value, our
2
Build an economy that keeps things in use, rather than platforms are kept at their highest value through recovery,
simply using them up. repair and reuse. Value is increased through an extensive
sharing network increasing its utility over its lifetime.
Regenerate our natural systems Based on renewable, reusable, recyclable or biodegradable
3
Not only protect, but actively improve the environment, materials, Brambles’ platforms form the basis of a circular
ultimately creating regenerative systems. system that regenerates what it needs, paving the way for
a more positive future.
Table 1: Three principles forming the foundation of a New System - taken from the Ellen MacArthur Foundation’s new learning resource
The results displayed in Brambles’ share and reuse model are derived from peer-reviewed life cycle assessment (LCA) calculations. Sustainability Review 2019 9
All data and calculation methodologies are available in our supplementary information document at brambles.com/sustainability-review.
Better Jumex and CHEP – collaborating on sustainable
solutions for 15 years
Supply Chains continued In April 2019, CHEP presented a Sustainability
Certificate to Miguel Autrique, Deputy General
Manager of Grupo Jumex. Jumex produces
Tanimura & Antle partners with CHEP juice brands such as Jumex, Único Fresco,
Tanimura & Antle partners with CHEP to store more than Vigor, V8 and Fresh. Miguel stated, “CHEP blue
220,000 CHEP pallets at their facility in Spreckels, California, pallets allow us to operate a circular economy
in order to meet demand during peak harvest season. environment, optimise our logistics processes,
“I honestly can’t imagine not sending a CHEP pallet” –
save costs and guarantee our environmental
California Giant experiences huge benefits through partnership CHEP and Tanimura & Antle share a focus on sustainability and
respect policy. The industry in Mexico is adopting
California Giant Berry Farms provides strawberries, blueberries, are both working to eliminate waste, eradicate empty transport
the CHEP blue pallet quickly and progressively.”
blackberries and raspberries to major retailers throughout miles and cut out inefficiency in the supply chain.
With Jumex’s 300 daily raw material and product
North America. Now, in addition to being a top berry
movements, CHEP’s transport collaboration
producer, California Giant is establishing itself as a leader
opportunities are also being explored.
in sustainability. Cindy Jewell, Vice President of Marketing,
says, “I honestly can’t imagine not sending a CHEP pallet.
If everything is blue, we’re creating efficiencies in the supply
chain. We encourage companies to look at their own partners.
What are they already doing? How could you make a bigger
impact together?” Utilising approximately 2.87 million
CHEP pallets over 17 years, California Giant has generated
substantial sustainability savings. VIDEO
Tanimura & Antle – CHEP pallet storage case study Groupo Jumez receiving CHEP’s Sustainability
544 tonnes Certificate (Left to right) (CHEP) Vanessa
Arruñada, Amelia Hernandez, Jorge Montaño,
of CO2 removed, the Angelica Vazquez, Juan Jose Freijo, (Jumex)
equivalent of planting and Miguel Autrique, Roberto Fernandez, José Antonio
Fernandez, Luis Mendez.
growing 14,372 trees for
10 years Automotive giant turns to CHEP to eliminate waste
CHEP has signed a lane expansion agreement with ZF India, a 130 sustainability
725 tonnes
Mar, 2018
leading manufacturer of automotive components to use CHEP’s
certificates
Sustainability Certificate
By using the pooling services offered by Local_CHEP_Subsidiary we hereby certify the contribution of
Foldable Large Containers (FLCs) to move suspension parts.
Highland Spring
of solid waste eliminated
to protecting the environment and to promoting a sustainable logistics model.
Together we have succeeded in:
have been issued to
The parts will be transported an average of 1280 kilometres
+ Saving wood resources by + Diminishing emissions by + Reducing waste by
476,068 dm 3
660,687 kg 46,031 kg
from landfill customers in the EU, US
+ 460 Trees saved + 603,367 fewer km traveled by truck + 11 fewer truckloads of rubbish
to factories owned by two of
Inigo Canalejo Helen Lane
Director, Vice President,
Sustainability Northern Europe
Brambles,
and Australia in 2019.
Europe
Calculations based on Life Cycle Assessment (LCA) of CHEP Euro pallet versus the white-wood equivalent. CHEP LCAs are independently peer-reviewed and ISO 14044 compliant.
India’s largest Original Equipment
CHEP timber sources are 100% certified sustainable by the Forest Stewardship Council (FSC) and the Programme for the Endorsement of Forest Certification (PEFC).
Cut out inefficiency Manufacturers, TATA Motors and
Ashok Leyland. By switching to pooled
These certificates introduce customers to
the circular economy by quantifying the
and eradicated empty FLCs, ZF India will be able to remove environmental benefits, such as carbon and
transport miles 660 tonnes of annual wood waste from waste savings, of using of CHEP solutions over
its operations. single‑use alternatives.
Sustainability Review 2019 10Better Zero Waste World Shared Challenges
Collaboration Eliminating waste
Zero Waste World accelerates the circular transition for large
businesses by using its circular economy expertise to
Our customers are not only being asked to meet consumer convert customers to more sustainable share
Our Approach demand for faster, easier, and cheaper products, but at the and reuse solutions which save resources
The purpose of Brambles’ Better same time be more sustainable. Access to e-commerce as well and reduce costs.
Collaboration goal is to increase the as smaller retail footprints has increased order frequency and Watch video
therefore, home delivery. The unseen environmental impact is
number of collaborative projects with increasing transport inefficiencies, empty journeys and waste
customers and suppliers. In 2019, packaging on a global scale. Brambles’ network scale and Eradicating empty transport miles
collaboration partners increased by 9% visibility affords a unique opportunity to accelerate simple,
by using its network scale and visibility to
to 246. The combined transport distance sustainable solutions to this development.
facilitate collaborative transport solutions,
saved exceeded 69.6 million kilometres and Our Zero Waste World (ZWW) Programme creates partnerships bringing manufacturers and retailers together
with manufacturers and retailers to solve big, shared to reduce the environmental impact of their
prevented over 84,000 tonnes of CO2 from challenges as well as saving time, money, and resources by operations and save money.
entering the atmosphere. making the transition to a circular economy faster and simpler.
Watch video
ZWW is a new working collaboration to help our customers
grow while creating value for society as a whole.
Customers participating in collaborative projects
In 2019, Brambles launched ZWW in the US and Europe,
focusing on three shared challenges. Cutting out inefficiency
by using its end-to-end supply chain solutions
246 VIDEO
and BXB Digital technology to enhance
customers’ visibility of their supply chains to
Zero Waste World – drive better decision making.
226 Less resources, more value,
Watch video
together
185
177
150
Zero Waste World launched in the US
At the Sustainable Brands 2019 event CHEP North
America President, Laura Nador’s keynote address shared
FY15 FY16 FY17 FY18 FY19
how Brambles can uniquely help solve the challenge of,
increasing growth leading to increasing waste that many
Data on this page is companies are faced with.
covered by assurance
All data, definitions and calculation methodologies are available in our supplementary information document at brambles.com/sustainability-review Sustainability Review 2019 11Better How CHEP optimises transport
CHEP’s Supply Chain Collaboration Programme
Collaboration continued aims to create efficiencies in a fragmented
transportation market. It is a matching tool
powered by BRIX and based on advanced
supply chain illuminating flows through near real-time data – algorithms, integrating multiple members of
Eliminating waste
helping the world’s leading manufacturers and retailers to make one or more supply chains into one network by
CASE STUDY | SOLUTION SUPPORTED BY smarter and more sustainable decisions. analysing the customers’ delivery routes and
selecting suitable synergies that help customers
Share and reuse eliminates waste for Tenneco
CASE STUDY | SUPPORTED BY share transport with each other and with CHEP.
Tenneco is a global leader in the design and manufacture of
automotive products who sought to replace single-use one-way Madrid Collaborative Transport event a success
packaging and a difficult to manage fleet of owned containers CHEP’s second Collaborative Transport event took place in
with CHEP’s standardised container solutions. Madrid in 2019. The engaging and interactive format helped our Customer
deliveries
customers share how CHEP’s collaborative transport solutions
Gary Southerland, Sr. Packaging Systems Analyst, Tenneco Pick-up Destination
assist them to save empty kilometres, reduce costs and A A
Automotive said, “Our plant and materials management
eliminate CO2 emissions. The event received excellent feedback
throughout has vastly improved since implementing CHEP’s
from our customers.
returnable container process and the cost of dealing with How CHEP
Minimum Minimum
cardboard has been reduced. In addition, with this new process “CHEP’s collaborative solutions are proof that empty Optimises empty
we no longer have the need for additional indirect labour for CHEP is responding to market needs. They are distance distance
cardboard disposal.” After an in‑depth Life Cycle Assessment
Transport
(LCA) CHEP’s durable, reusable and RFID-enabled ISOBin33
committed to innovation and added value.”
provided an 80% reduction in cardboard use, between 5-18% iguel Ángel de Miguel, Director of Digital Technology
M
reduction in CO2 emissions and complete elimination of one‑way and Logistics, Mahou San Miguel
Customer
pallets. The initiative saved over 670 tonnes of cardboard being Destination
deliveries
Pick-up
B B
sent to landfill while creating supply chain efficiencies that
eliminated over 228,000 kilometers equating to 270 tonnes CO2.
Eradicating empty transport miles We optimise transport in four different ways:
CASE STUDY | SOLUTION SUPPORTED BY 1. Plant Network Optimisation (PNO) – positions
service centres or TPMs7 to capitalise on routes
BXB Digital and Brambles Intelligence Exchange (BRIX)
with the highest volume of platform exchange
Brambles position provides visibility of logistics networks
2. Transport Collaboration (CHEP and customer)
uncovering the pathways of over 330,000 supply chains in
– creates collaborative partnerships by being a
Europe alone. Through BXB Digital and its supply chain platform VIDEO
trusted non-competitive player
Brambles Intelligence Exchange or BRIX, we apply a digital fabric 2019 CHEP Collaborative Transport Summit
on a physical network collating our supply chain expertise and 3. Transport Orchestration – facilitates
data to drive efficiencies not otherwise available through other optimisation of empty transport journeys
systems. BRIX enhances the backbone of the global supply between two or more customers
chain with digital intelligence to deliver end to-end visibility, 4. Multi-modal – utilises multiple transport modes
driving collaboration and sustainability opportunities across the such as rail and sea for the greatest cost and
supply chain. BRIX is an artificial intelligence (AI)-driven system carbon efficiencies.
which uses data to anticipate and address bottlenecks in the
7
Brambles’ Total Pallet Management, or TPM, service operates within customers’ premises, eliminating the need for platform recovery through a CHEP service centre. Sustainability Review 2019 12Better
Collaboration continued
Cutting out inefficiency
By using its end-to-end supply chain solutions and BXB Digital
technology to enhance customers’ visibility of their supply
chains to drive better decision making.
CASE STUDY | POWERED BY
Driving efficiency in the supply chain
The internet of things (IoT) and artificial intelligence (AI) have
come to global prominence over the past five years, with the
VIDEO
supply chain and in-store sales sectors starting to discover the
potential of these technologies to tackle inefficiencies. How CHEP are digitally transforming NISA’s supply chain
But where are these inefficiencies located in the supply chain?
Where could the logistics sector end up in three years’ time?
What combination of IoT and AI could be used to turn waste Brambles’ NISA project is a finalist in the awards listed below:
into efficiency?
Watch the video and download the FMCG Supply Chain Guide
to find out how CHEP’s Digital Solutions team helped one of
the UK’s major food and grocery wholesalers, NISA, identify
$US24‑36 million of potential savings by using digitised pallets to:
IGD Awards – CILT Awards – Supply Chain
• Uncover goods’ visibility Supply Chain Supply Chain Excellence Awards
• Improve promotions compliance and Excellence Innovation – Supply Chain
• Improve quality while reducing waste Visibility
Download the FMCG Supply Chain Guide: Digital Innovation
CASE STUDY | POWERED BY
Helping Ferrero better serve retail customers
CHEP pallets, digitised by BXB Digital, helped confectioner,
Ferrero Canada, better serve retail customers. The project
involved real-time product tracking helping improve scheduling
and efficiency, while enhancing in-store display execution
process. CHEP’s end-to-end Arrival Notification solution
helped improve workforce scheduling and efficiency, reduce
unnecessary trips to stores and minimise the time product
was in a store’s back room, rather than on display.
Sustainability Review 2019 13Thought Leadership,
Advocacy and Innovation
Our Approach CHEP and the European Commission discuss circular economy
principles
Brambles participates in sustainability forums CHEP EMEA has been assisting the European Commission to
to share our story and learn from other thought CE-100 membership – circularity measurement understand circular economy principles as they develop new
leaders and seek collaboration opportunities. Brambles has been a member of the Ellen MacArthur EU legislation based on minimising the consumption of natural
Foundation (EMF) CE-100 Group since 2015. Recently the resources. CHEP’s reuse and repair of products, extending their
The key message we share advocates for
EMF has engaged Brambles in a pilot project to develop a lifespan, and avoiding waste altogether was considered aligned
accelerating the circular economy through the company-level ‘circularity measurement method’ for credibly with the circular economy model.
power of reuse and for more partnerships to assessing the circularity of a business.
build the sustainable supply chains of the future.
Retail Summit – Prague, Czech Republic
CHEP participated in the Retail Summit 2019, a conference
bringing together the key business to consumer market players Newsweek Vantage, going circular: how global business is
to exchange views on the future of supply chains. Global Head embracing the circular economy
of Sustainability, Juan Jose Freijo, spoke about the circular Brambles participated in research by Newsweek Vantage
Net positive: being less bad is no longer good enough
economy and introduced Zero Waste World as an essential confirming that the concept of a circular economy has gone
As Brambles develops its pathway and sustainability targets to
ingredient for the future of retail. from relative obscurity to the corporate boardroom in just a few
2025 and beyond, we explore what other leading organisations
years. In an October 2018 survey of 317 senior executives from
are doing to shape a sustainable future. A Revolution in the
large corporations around the world, 98% were familiar with the
Making: The Quest for Net Positive Supply Chains is a report
concept. Some 30% said their company had a circular strategy,
from the Wharton School of the University of Pennsylvania, and
and over 75% plan on adopting targets to make their products,
the Initiative for Global Environmental Leadership (IGEL) and
processes or business models more circular in the coming five
CHEP. It explores how net positive principles can regenerate
years. Brambles’ circular business model was cited throughout
and restore global supply chains, and provides insights from
the report as best practice.
global industry leaders such as Dell, Nike, the Ellen MacArthur
Foundation and Forum for the Future.
VIDEO 2019 Global Compact Australia Conference
Circular economy in practice – Presentation of J.J.Freijo Brambles participated in the Circular Economy,
Download A Revolution in the Making: Corporate Performance and Reputation panel discussion at the
at the Retail Summit
The Quest for Net Positive Supply Chains 2019 Global Compact Australia Conference.
This session explored how developing new approaches
to packaging, and adopting alternative business
models, businesses can play a leading role in creating a
circular economy.
Sustainability Review 2019 14Governance – Our approach to anti-corruption and human rights,
including modern slavery
Modern Slavery and TCFD Brambles is committed to operating in an
environment in which all our employees act with
honesty, integrity, fairness, and accountability.
At the core of our governance and control
Brambles’ TCFD roadmap
environment is our Risk Management Programme.
Q4, FY19 Senior management is responsible for the
1 Starting the journey implementation of mitigation plans, including
Governance those related to the prevention of corruption
• TCFD roadmap
During 2019, Brambles undertook targeted conversations and human rights violations including modern
with investors, customers, industry groups, thought leaders • Scenario analysis workshop #1 Asia‑Pacific day slavery. These risks, and the associated
and employees to inform both our sustainability strategy and progress on risk mitigation, are reported to the
materiality process. Issues related to climate change with Q1, FY20 Audit Committee and the Board twice each year
reference to the Task Force for Climate‑Related Financial and are supported by various functions, including
Scenario analysis
2
Disclosures (TCFD), and governance with reference to Group Risk, Internal Audit, Global Compliance
transparency and modern day slavery ranked as highly • FY19 Annual Report disclosure and Sustainability.
important to these respondents. We outline our approach to • Process gap analysis
Beyond the Risk Management Program, we have
these issues below. • Scenario analysis workshop #2 Americas implemented the following governance controls
Brambles Tax Report relating to anti-corruption and human rights:
Brambles aims to make a positive contribution to the Q2 - Q3, FY20 • Management Leadership and Accountability
communities in which it operates. This positive contribution
Aggregate and integrate • Code of Conduct, Anti-bribery Policy and Human
includes seeking to comply with the law by paying the right
• Scenario analysis workshops Rights Policy
amount of tax in the correct jurisdiction, disclosing relevant
information, and claiming reliefs or incentives where they are 3 (Europe, India, Middle East, Turkey • Gifts and Hospitality Policy and tracking
available. Please follow this link for Brambles FY19 Tax Report. and Africa and Americas) • Books and records controls
Our approach to climate change • Aggregate/verify regional climate • Due Diligence: Our new suppliers and vendors
Brambles recognises that climate change poses risks risks and opportunities must satisfactorily undergo risk-based due
and opportunities to our operating model that could have diligence covering corruption and human rights
significant financial implications on the business. Q4, FY20 risks, amongst others.
Within this context, the Brambles Board and management Brambles’ climate strategy • Speak Up: We make a whistleblowing hotline
4
team have committed to responding to the recommendations • Review metrics and targets available globally, and all employees are
of the TCFD, commencing in FY19. encouraged through training, newsletters,
• Climate-related risks and opportunities
While recognising climate-related risks associated with and team meetings to report suspicions
integrated into financial processes
forestry resources, Brambles’ sustainable ‘share and reuse’ of wrongdoing.
and strategy
model places the business in a strong position to face the • Training: All Brambles employees must
challenges of climate change throughout the transition to complete compliance training on a
Q4, FY20
a low carbon economy. regular basis.
Disclose and deliver
Brambles’ statement regarding the TCFD’s recommendations 5 • Climate change action plan
including the timeline for a complete TCFD disclosure is available
in our FY19 Annual Report, available here. • FY20 Full TCFD disclosure
Sustainability Review 2019 15Data on this page is
covered by assurance
Better
Workplace Brambles’ MyShare
The Brambles MyShare Programme celebrates
its 10-year anniversary this year and Brambles is
Our Approach Pulse results 2019 thrilled to announce that we currently have 4,493
The results indicate that employees feel the company employees participating in the 2019 plan. This
Brambles is committed to creating workplaces
communicates well and effectively removes barriers enabling gives us a participation rate of 42% – the highest
where all employees feel connected to the objectives to be achieved. They feel relevant to the company’s participation rate since the programme began.
company’s purpose. Our employee value success and confirmed that the feedback from managers Collectively, Brambles MyShare participants form
proposition aims to attract capable people is constructive. the 12th largest registered holder group, and
Employees would like to see more collaboration activities as analysis of MyShare reveals a positive correlation
who want to develop their careers, develop
well as more recognition and growth opportunities. between reduced turnover and increased tenure.
themselves and who are passionate about
With an overall response rate of 83%, 75% of plant-based Over the 10 years, nine MyShare vestings have
creating more sustainable supply chains. occurred, issuing more than 5 million matching
employees are engaged with the business, 2 points above the
manufacturing benchmark and 77% of Brambles’ office‑based shares to 9,577 current and ex-employees.
Brambles’ Pulse
employees are engaged which is 3 points below the Assuming an average share price of A$10 per
During FY19, Brambles performed an employee Pulse survey
relevant benchmark. share, that means we have matched shares of
to seek confidential feedback with an objective to better
A$50 million!
understand our employees’ experience and inform strategies
Brambles’ voluntary employee turnover for FY19 Employees have sold or “cashed out” their
that create a better workplace.
Our Group voluntary turnover has increased by 3.8 percentage MyShare investment and used it to contribute
The survey helps evaluate an employee’s concerns and points for the FY19 period. CHEP EMEA, Asia-Pacific and to their holidays, weddings, children’s education
motivations including the inclination for discretionary effort to Corporate reduced turnover by 0.8, 2.7 and 2.7 percentage and more.
achieve their objectives. points respectively.
This demonstrates the concept of sharing in the
Brambles has revised its approach to listening to the voice of
company’s success.
our employees through two Pulse surveys each year, realising Employee turnover Employees by
[42.00]%
the following benefits: (%) FY19 segment FY19
37.57%
• Obtained a more in-depth view of our people’s experiences (exc IFCO) (exc IFCO)
32.91%
31.97%
31.46%
30.47%
• Streamlining administration, reducing the turnaround for Pallets Americas 43.3 4,151
26.26%
sharing results
Pallets EMEA 7.8 5,387
22.18%
• Improved survey accessibility for all plant employees
21.01%
20.58%
20.09%
Pallets Asia‑Pacific 13.6 1,537
• Improved analytics and benchmarking for
external comparison. Corporate 10.9 669
Group 21.3 11,744
76% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2018 2019
employee engagement excl
Recycled
MyShare Participation Rates
83% response rate
2 points above the
manufacturing benchmark
All data, definitions and calculation methodologies are available in our supplementary information document at brambles.com/sustainability-review Sustainability Review 2019 16Safety
Our Approach Commitment to zero harm Establishing CHEP as a Mentally Healthy
Brambles’ Zero Harm Charter states that everyone has the Workplace
Brambles is committed to Zero Harm – right to be safe at work and to return home to their family and CHEP Australia is running a pilot mental health
to our people and those we work with; to our friends as healthy as when they began their day. Zero harm initiative to offer a more holistic dimension to our
customers and the communities we serve; continues to be a material sustainability topic rated very highly safety programme. The reasons for the initiative
by our stakeholders, especially our employees. are to remove the common stigma attached to
and to the environment upon which we all
mental illness as well as educate workers on
depend. Brambles’ Zero Harm programme aims understanding initial support for those who are
to achieve a reduction in the Brambles Injury Fatality dealing with an issue that is affecting their mental
Frequency (BIFR) Rate each year. The loss of our colleague, José Luis Segura, in July 2019 has health or those in a current crisis. Mental health
impacted us greatly and we are doing everything we can for the support was a key issue identified as part of
Brambles Injury Frequency Rate (BIFR) family and colleagues affected. A thorough investigation of the CHEP’s Health and Safety Conference in 2019.
incident was carried out. The learnings from the investigation
In addition, CHEP has rolled out Mental First Aid
17.2 have been communicated throughout the Group and we are
training to 150 people leaders across the business
14.7 determined to learn as much as we can to avoid such a tragedy
and Mental Health Awareness training covering
in the future.
10.3 450 workers across the state of New South Wales.
7.1 Trafford Park in the UK has also provided
5.9 Safety Differently mental health first aiders. These programmes
5.0
During the year we launched the next phase of our zero harm will be assessed for extension into other
strategy, ‘Safety Differently’. This initiative is based on the regions with feedback incorporated to ensure
principles of Human & Organizational Performance (HOP) and continuous improvement.
FY14 FY15 FY16 FY17 FY18 FY19 seeks to address the residual risk present in our operations
BIFR data excludes IFCO to ensure the safety and wellbeing of our employees around
the world.
BIFR measures work-related injuries requiring medical
treatment, fatalities, lost time and modified duties per million
hours worked. BIFR includes contractors working under
Brambles’ management but does not include outsourced
service centres.
BIFR at the end of FY19 was 66% better than the end of FY14.
However, we did not meet our goal of year-on-year improvement
in FY19. Our Safety Differently strategy, (see next column) was
launched, in part, to address the BIFR performance.
LITFR is available in the 5-year performance summary Sustainability Review 2019 17Learning and Development
and Talent Management
Our Approach 11 out of 19 The Emerging Leaders Programme
graduates in the Graduate Development This is a 2-year rotational programme encouraging
Brambles invests in its people to develop their career mobility by placing experienced employees
Programme are female
skills and competencies to meet our customers’ into businesses with a specific skills shortage.
evolving needs. In return, we provide rewarding The Graduate Development Programme To date, we have eight participants in countries
ranging from China to Turkey, Russia, Mexico,
careers. This motivates our people to collaborate The Graduate Development Programme recruited 19 graduates
South Africa, CEE, Germany and India.
effectively and deliver on our strategy. across the US and Europe, after receiving almost 2,000
applications. Encouragingly, 11 of the 19 graduates were
Brambles’ employees accomplished over female. This 2-year programme rotates graduates through key The academies
81,600 learning hours and online course business functions, equipping them with the skills to move The academies deliver blended learning to specific
functions such as procurement and sales, with
completion increased 56% since FY18. into management roles at its conclusion. The programme also
offered the first opportunity to test our new employee value the Management Academy delivering training
During FY19, two new programmes were introduced to boost
proposition, where the sustainability message was of particular to managers across Europe, the US, Australia
the talent pipeline and bring new thinking and capabilities into
value to the graduate market. and New Zealand and Latin America, in English
the organisation, supplementing several talent development
and Spanish.
initiatives already in place.
The Commercial Academy received external
accreditation from the Learning Performance
Talent development programmes Institute for its blended learning approach and the
The Accelerated Development Programme aimed at high method by which we measure business impact of
potential managers continues, with our fifth cohort completed the learning.
in Europe/IMETA and our third cohort about to commence in For example, our Negotiation Skills Training has
North America. resulted in an increase of contract renewals and
Our highly successful Talent Development Programme aimed extensions delivering an return-on-investment well
at our Band 2 level employees is now in its seventh cohort in excess of the initial financial outlay.
in Europe/IMETA and will launch in North America in the
next period. Developing a culture of self-directed learning
VIDEO
The fourth cohort of the Fast Track Programme has begun, with Learning Week aims to encourage our people
Discover Brambles’ Graduate Programme to embrace a culture of ownership of their
seven of the 15 participants being female. Three manager-level
and one global director-level development centres were held, development, moving from a learner-fed to a
giving participants insights into how they lead and the impact learner-led culture. Employees were offered
they have on their teams, with ongoing post-centre coaching. daily opportunities to experience micro-learning,
Making strong connections virtual classes and workshops organised by local
53% CHEP North America launched MentorConnect – a company- learning ambassadors.
increase in online short-course completion delivering wide mentoring program that engaged and paired up more than 1,300
higher learner engagement and outcomes 200 employees. As a result of this successful pilot, the program social media posts were shared
will be rolled out in Europe in FY20. globally during learning week
Sustainability Review 2019 18Data on this page is
covered by assurance
Inclusion Gender diversity
Brambles’ gender diversity performance increased with women
Gender salary ratios by level Female/Male9
Our gender salary ratios show women are remunerated more
and Diversity holding 29% of management roles in FY19. The vacancy on the
Brambles Board from Carolyn Kay’s retirement was filled by
than men in almost all employee bands including at Director
and Senior Leadership levels. This illustrates a positive shift
Jim Miller which, while increasing skills diversity, reduced the toward pay equality for women at Brambles.
representation of women at Board level to 27%. Brambles first
Senior
Our Approach achieved the 30% target representation at Board level in 2015. Leadership 3%
At Brambles, we believe that an inclusive Brambles’ commitment to increasing women in leadership roles
Directors 2.4%
work environment allows our employees is being driven by each regional CHEP president. For example,
President of CHEP Europe, Mike Pooley, signed the LEAD 2020 Managers -6.9%
to realise their full potential, regardless of
pledge committing the business to “an increase of at least
Team
gender, religion, age, disability, ethnicity, 5% in female representation by 2020, and to building a plan to Leaders 0.2%
sexual orientation or any other factor that achieve gender parity over the next decade.”
Entry level 4.1%
makes an individual unique. By fostering
CHEP Europe -8 -6 -4 -2 0 2 4 6 8 10
a diverse and inclusive environment, we is an active member of LEAD Network, an organisation
are better able to relate to our customers, focused on attracting, retaining and advancing women in the
suppliers, communities and co-workers. retail and consumer goods industry in Europe through education,
leadership and business development
International Women’s Day was celebrated with activities across
12 countries in Europe, North America and IMETA and included
Evolution of women in management positions
panel discussions, training, interactive games, and workshops.
29% 30%
28% VIDEO
25% 26%
24%
CHEP Australia proudly
supports International Women’s
Day #BalanceforBetter
Disability
President of CHEP Europe, Mike Pooley, has signed the
Going beyond gender
#Valuable500 global pledge which puts disability on the
FY15 FY16 FY17 FY18 FY19 GOAL Brambles’ I&D Programme is evolving to ensure everyone feels
business agenda. In addition, the organisation is supporting
welcome and valued in the workplace. During FY19, the Global
a UK Disabled Graduate Programme, Change 100 Programme.
Vice President of Human Resources, Patrick Bradley, facilitated
29% a webinar with the presidents of North America and Europe
Beyond First Impressions
of management roles in on the importance of inclusion and diversity. CHEP Europe
CHEP North America introduced the Beyond First Impressions
FY19 were held by women became a member of OUTstanding – an organisation which
campaign. During this experience, employees shared three
helps companies build a more LGBTIQ+8 inclusive workplace.
observations people see simply by looking at them. The power
One such initiative is an LGBTIQ+ network for the EMEA region.
of this campaign is when people share “what people don’t see”.
I&D focus groups This challenges all of us to avoid making quick judgments or
8
LGBTIQ+ lesbian, gay, bisexual, transgender, gender diverse, have been run across 15 locations involving more than assumptions about a person, just by looking at them. It’s about
intersex and queer 300 employees as well as an age-related group for employees appreciating the substance we all offer.
9
Positive meaning higher salary for women. 50 and over
All data, definitions and calculation methodologies are available in our supplementary information document at brambles.com/sustainability-review Sustainability Review 2019 19Better Planet
Our circular business model is
underpinned by sustainable sourcing
of renewable and recyclable materials.
By purchasing certified wood, we
are reinvesting in natural capital,
supporting the sustained regeneration
of forests and providing our business
with a reliable source of raw materials.
At end-of-life our products are
repurposed in the materials economy,
avoiding landfill. Our Better Planet
programmes form the foundation of Zero Deforestation Zero Emissions Zero Waste
Brambles aims for 100% certified 20% CO2 reduction in Zero product
our circular business, preserving and source and aspires for 100% emissions per unit delivered (wood and plastic)
Chain of Custody certification for by 2020 on 2015 levels waste to landfill
enhancing the capital we depend on. all wood supply by 2020 by 2020
Brambles’ Better Planet 2020 sustainability goals address sustainable
use of forests, action on climate change and demonstrate sustainable
production and consumption. Our goals directly align with the
United Nations Sustainable Development Goals.
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