Towards a regenerative supply chain - Sustainability Review 2020 - brambles.com/sustainability
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Sustainability Review 2020 Towards a regenerative supply chain r ou g t in s a l e br goa l brambles.com/sustainability Ce 020 2
Contents Brambles at a Glance Circular Share and Reuse Model 3 Brambles’ purpose is to connect people with life’s essentials, every day. 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 Recognition and ESG Road-shows 6 Our circular business model eliminates waste and pollution, keeps products and materials in use, rather than using them up, and reduces Our progress and final achievements 7 for our 2020 goals carbon and the demand on the natural resources. Brambles’ 2025 sustainability vision is 8 to pioneer regenerative supply chains What Brambles does For shareholders, Brambles delivers sustainable growth at returns well in excess of the cost of capital and seeks As a pioneer of the sharing economy, Brambles is one of the Brambles’ 2025 positive vision 9 to generate sufficient cash flow through the cycle to fund world’s most sustainable logistics businesses. and regenerative targets dividends and support reinvestment in growth, innovation Our circular business model facilitates the ‘share and reuse’ and the development of its people. Better Business 10 of the world’s largest pool of reusable pallets and containers. For employees, Brambles provides development and exciting This enables Brambles to serve its customers while minimising career opportunities in approximately 60 countries. By fostering Better Planet 23 the impact on the environment and improving the efficiency a culture of innovation, inclusiveness and agility, Brambles and safety of supply chains around the world. seeks to attract and retain the diverse range of talent which is Better Communities 31 Brambles’ platforms form the invisible backbone of integral to its success. Thank You 34 global supply chains, primarily serving the fast‑moving In a resource-constrained world, circular business models consumer goods, fresh produce, beverage, retail and general like those operated by Brambles are recognised as a practical manufacturing industries. business solution enabling the world to trade more responsibly. How Brambles creates value By replenishing what it extracts and by providing its products via a service, Brambles helps reduce both the constant Brambles uses the power of its circular business model, pressure on natural resources and the waste production typical network advantage and expertise to leverage key capital inputs of conventional linear business models. into its business to generate significant value for customers, shareholders and employees. Brambles capitalises on its unique position in the supply chain to enable customer collaboration and address sustainable For customers, Brambles’ end-to-end supply chain development challenges, such as optimising transport solutions deliver operational, financial and environmental networks, addressing food waste and promoting sustainable efficiencies not otherwise available through one-way, use of the world’s forests. single‑use alternatives. In this way, Brambles strives to create a circular economy, on a global scale. Sustainability Review 2020 2
INPUTS VALUE CREATION OUTPUTS Brambles has used the Integrated Reporting ‘capitals’ By sharing and reusing Brambles’ platforms versus single-use alternatives, framework1 to illustrate the interaction and interdependencies value is created for its customers, the environment and society. between its sources of value, business model and ability to create value over time. Natural Capital Brambles’ platforms help Customer-driven environmental savings: Natural Capital Producer reduce food waste Manufacturer 2.0m tonnes of CO2 100% wood from certified sources 2,500 megalitres of water which regenerates stocks of raw materials and drives demand for 1.7m cubic metres of wood sustainable forest products Transport and 1.8m trees other customer collaboration 1.3m tonnes of waste Manufactured Capital Social and Relationship Capital Circular 330 million assets shared and reused throughout the world’s supply chains Customer value: ‘Share and Reuse’ • Enhance operational efficiency • Free up cash and resources Human and Intellectual Capital Attracting talent, ideas and innovation Model • Lower overall supply chain costs • Sustainable packaging objectives Building our social licence through advocacy for a circular economy Intellectual Capital Financial Capital Network advantage and digital Attracting long-term investment solutions are creating the supply Committed to zero product waste chains of the future to landfill Human Capital Social and Relationship Capital Developing, engaging and remunerating our people in an inclusive environment Fostering positive stakeholder relationships in communities Financial Capital Service Centre Retailer 70% of electricity from renewable energy sources Economic Economic Economic 1 The International Integrated Reporting Framework. Integrated Reporting highlights the key Value2 Retained Value Generated Value Distributed resources and relationships used and affected by an organisation. US$1b US$5b US$4b 2 conomic value is a measure of the broader E 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 2020 3
About Our Review Materiality Matrix Brambles’ Sustainability Review reports on our Brambles has engaged key stakeholders to material sustainability issues, for the financial contribute to the formation of this materiality matrix. year ending 30 June 2020. This report also shares It outlines the top issues ranked for relative importance to our stakeholders and their Brambles’ sustainability vision and targets for relative importance to Brambles. A variety of sources are used to inform this process including surveys with customers, investors, peers, industry groups, and employees the period 2020 to 2025. and media reviews. Brambles considers the materiality process to be iterative and it is reviewed and updated regularly. More information on this process is available in the This is part of a suite of external integrated communications including supplementary document on our website. Brambles’ 2020 Annual Report, and our Response to Climate Change available for our stakeholders on our website. This report reflects on Brambles’ five-year journey from 2015 to 2020 and our 2025 vision. Climate change impacts (TCFD3) High priority Our supplementary information document for this review, available on the Brambles Sustainable (business) growth website at brambles.com/sustainability-review, contains further information on assessment of materiality; risks and opportunities; assurance process; data measurement Move to climate-neutral circular economy Zero harm techniques; stakeholder engagement; and a glossary of terms. Also available on Social impact of value chain brambles.com is our response to the following three sustainability reporting frameworks: Overuse of the world’s resources • Global Reporting Initiative (GRI) Standard; (including raw materials) Relative importance to stakeholders • UN Global Compact Communication on Progress for 2020; and Work/life balance Transparency and corporate governance • UN Sustainable Development Goals (SDGs). (including anti-corruption and bribery) Brambles uses the services of KPMG Limited to provide limited assurance on key elements Learning and of this review. Information which has been subject to such assurance is clearly identified Environmental impact development by the words, “This page is covered by assurance” or “Data on this page is covered by of direct operations assurance”. The KPMG Limited Assurance Report is available on the Brambles website at brambles.com/sustainability-review Standard Priority Relative importance to Brambles 3 Task Force on Climate-related Financial Disclosures. Sustainability Review 2020 4
Introduction from the CEO It is sometimes only in a crisis that the importance of support systems becomes truly apparent. 2020 has seen ordinary people become extraordinary It’s clear that a circular economy helps businesses recover and community heroes by keeping our health systems operating, prosper while meeting the challenges of global issues such as our manufacturing producing, and our supermarket shelves climate change and waste. This shift is demonstrated by major stocked. Similarly, in these times, Brambles’ services to brands and retailers committing to circular strategies driven the world’s supply chains have proven not only to be the by increasingly conscious consumers. Governments are also invisible backbone of global supply chains but also a vital acting, recognising the importance of the circular economy network connecting people to life’s essentials when they need in compacts such as the European Union’s New Green Deal. them most. Brambles’ rating of A in Circulytics™, the world’s first circular I would like to take this opportunity to commend our people economy measurement tool, is a clear indication of our for rising to the challenge and rapidly adapting to a very fluid leadership position in this space. situation. Our global pandemic taskforce and supporting The opportunities of Brambles’ circular business model regional teams immediately initiated the necessary changes have also been emphasised in our first detailed disclosure required to protect our people while ensuring our customers responding to the recommendations of the Task Force on had the platforms where they needed them, in the number they Climate-related Financial Disclosures (TCFD). This document needed and the quality they needed to be to meet the volatile describes for our stakeholders why Brambles is not only well movements in consumer demand. positioned for the low-carbon transition but also why we should play our part in enabling it. Brambles is also joining other global Brambles will pioneer what a truly Our supply chain teams and our service centre employees simultaneously adjusted to Covid-19 safe work practices while sustainability leaders in making the pledge for a 1.5-degree regenerative supply chain is recovering, repairing and reconditioning our pallets, crates and climate future which aspires to create a thriving society and containers to match the heightened levels of customer activity. economy while mitigating the worst impacts of climate change. The advantage of our broad network was demonstrated by 2020 also witnessed a flashpoint in community tension in and sets challenging aspirations. Our message is clear, we its ability to continue functioning within a rapidly changing the US that triggered a powerful global movement calling for must restore nature to tackle climate change and create shared environment. The Covid-19 pandemic tested our network and change. Brambles sees diversity as a strength and while we are social value. Brambles will pioneer a truly regenerative supply our people capabilities in ways that would have been hard to extremely proud to have more female leaders in our business chain by not only restoring and replenishing the resources imagine only a short time ago. It was very positive that we than ever before, there remains much work to do to build a we require but committing to creating more positive impacts were able to continue to meet our customers’ needs, while also truly inclusive business. In this review you will see the many beyond our business for the benefit of future generations. working to keep our employees and the communities in which different facets of our diversity and inclusion programmes that In this way, we aim to be the company delivering the supply we operate safe. continue to evolve beyond gender. chains the world needs now and into the future. The fact that the world’s biggest brands have been sharing Importantly, this review reflects the incredible progress over the and reusing Brambles’ platforms during a period of stockpiling last five years through the efforts of our employees. We have of consumer goods in many markets was a reminder of the much to celebrate and are delighted to have achieved most of agility of our circular business model. It is no coincidence that our 2020 sustainability goals set in 2015. We share the story we are seeing a tipping point towards the circular economy, from 2020 and, most importantly, what’s next. Our 2025 vision is ambitious, reflects the sentiments of our key stakeholders Graham Chipchase transitioning from a conceptual model to mainstream adoption. Chief Executive Officer Sustainability Review 2020 5
Recognition Brambles continues to achieve consistently 4 Rated #1 most sustainable top scores in reputable investor surveys, international company receiving recognition as an Environmental, Social and Governance (ESG) leader. Here, we offer a snapshot of our ESG ratings for the year in review as well as other sustainability assessments relevant for our business. 96th percentile in industry category ESG Road-shows Rated A in Circular During FY20, Brambles investor Economy Assessment by engagements continued in all key regions Ellen MacArthur Foundation and adapted to online sessions in the second half. This dialogue provided the business an opportunity to share our sustainability story and learn Maximum AAA rating what’s important for investors ranging from institutional pension funds to sustainability focused impact funds. The key themes arising from these conversations included the importance of sustainability issues for retail customers and food Constituent of the FTSE4Good producers such as waste packaging, climate change, and regulations around human rights and slavery in supply chains. We also discussed index 2014-2020 what’s next for Brambles’ sustainability journey including our 2025 vision and the concept of becoming a regenerative business. 4 Published by Dow Jones, sister publication to The Wall Street Journal. Sustainability Review 2020 6
Data on this page is covered by assurance Our progress and final Target 2020 Result Status achievements for our Zero Deforestation 2020 goals 100% wood from certified sources 100% Achieved Year-on-year improvement in Chain of Custody 63% Achieved Brambles is proud to have achieved many of the Zero Emissions sustainability goals we set in 2015. Where we have 20% CO2 reduction in emissions per unit delivered 33% reduction Achieved fallen short, our progress has nonetheless been strong. Year-on-year improvement in energy provided from 70% electricity Achieved Better renewable sources Zero Emissions Planet Zero Waste ion Ze tat CO2 ro res W Zero product waste to landfill (timber) 100% Achieved o a ef st D e ro Continuous Ze Zero product waste to landfill (plastic)5 94% progress er Plane Bett ins t He Better Supply Chains Cha lpin g th e B e tt e r S u p pl y 2.0m tonnes of CO2 Achieved Yearly environmental improvements in Brambles’ 1.3m tonnes of waste Achieved Environment customers’ supply chains B etter C o m u sin e s s 1.8m trees Achieved Better Collaboration 273 customers Achieved rB Yearly improvements in customer n ratio un 75.8 million kms Achieved et te collaboration projects m H el itie B 86.2 kilotonnes of CO2 Achieved abo s pin oll gE Better Workplace rC Better Business du tte ca n 25% reduction in Brambles Injury Frequency Rate Be tio 5.5 Achieved (BIFR) from 2015 baseline He e lpi c ng pla 30% of leadership positions to be held by Foo d Se r Work c u rit y Bette women, including 30% at Board level and 30% at > 30% in all areas Achieved management level Volunteering One day per employee per year (provision of three 1.42 hours achieved Continuous VIDEO days per employee per year) per employee in FY20 progress Our 2020 Goal Donations Achievements Better Contribute 0.7% of pre-tax profits annually to 0.8% Achieved Communities our Better Communities programmes 5 Less than 0.1% of plastic waste was sent to landfill. More information on page 30. Sustainability Review 2020 7
Brambles’ 2025 sustainability vision is to pioneer regenerative supply chains Climate + 2020 initiates the “decade of action” on the + United Nations Sustainable Development Goals (SDGs). t W s re as Brambles’ 2025 targets are our guide to leading on the Fo net Positive te Pla + global goals by focusing our actions where our business can have the most positive impact. After extensive stakeholder consultation, Brambles has developed the next phase of our sustainability programme, evolving our Social successful “Better” model into a “Positive” model. Supply Chain+ To date, sustainability programmes have focused on reducing a & N atu ral Co m mu business’s negative impacts but sustaining a degenerative model. ive Now more than ever, organisations must go beyond eliminating o sit negative impacts and grow their positive impacts beyond the + boundary of their business. n it sP Brambles’ commitment is to be nature-positive – restore forests, ie Po es si n s Ci r go beyond zero waste, and drawdown more carbon – and create n+ s it Bu cu ive tio regenerative supply chains for our customers. lar ra This regenerative concept means restoring, replenishing then bo Ec la on creating more value or capital for society and the environment m C ol y o + than the business takes out. We believe this vision is ambitious and, right now, we don’t have all + e Fo o ac the answers. However, through the commitment of our people and d+ Wo rkpl partners we will collaborate to find the solutions. As a pioneer in the circular economy, we are well positioned to succeed in this new context and importantly, we have already begun. VIDEO Brambles’ sustainability Re-use, resilience and Brambles can deliver life’s Pioneering regenerative vision is to pioneer regeneration – our solution essentials every day in a supply chains regenerative supply chains to the world’s greatest nature‑positive way challenges Sustainability Review 2020 8
Brambles’ 2025 positive vision and regenerative targets Forest Postive Climate Postive Waste Positive SDG Brambles will sustainably grow two SDG Brambles commits to a 1.5-degree SDG Brambles commits to: 15 trees for every tree we use. One tree 13 climate future including a Paris 12 Planet Positive SDG through our certification programme and SDG Agreement aligned science based SDG Zero product materials sent to landfills, for all Brambles’ and subcontracted locations; Our commitment is to be 8 one additional tree for the planet. We 7 carbon emissions target for our 6 Innovate closed loop products: aspire to use nature‑positive by restoring SDG will ensure 100% sustainable sourcing supply chain. 13 30% recycled or upcycled plastic waste; forests, going beyond zero waste, of timber indefinitely, and enable the 100% of our electricity will be 100% of Brambles’ locations including offices and drawing down more carbon transformation of more forestry markets renewable and all our operations will and service centres to be zero waste; and than we produce, ultimately to Chain of Custody (CoC) certification. be carbon neutral by 2025. becoming a regenerative, Water positive: optimise all water use nature‑positive business. including reclaiming, recycling, replenishment and treatment. Supply Chain Positive Positive Collaboration Workplace Positive SDG Continuous increases in environmental SDG Brambles will expand our customer SDG Brambles commits to: 12 benefits in our customers’ supply chains 17 collaborations in all regions through 3 Business Positive SDG through our ‘share and reuse’ model. our Zero Waste World initiative, SDG A 25% reduction in BIFR and to develop a wellbeing-at-work programme; Brambles will pioneer 13 doubling the number of customer 5 Co-develop and improve our t least 40% women in management roles A regenerative supply chains by SDG performance in leading circular collaborations from 250 to 500. SDG and double the number of women in our plants; 9 10 improving our circular model measurement tools for industry. op 20% for inclusivity and launch an T SDG every year, increasing the 16 accessibility programme in each region; and environmental benefits in our Lead on anti-corruption and human rights customers’ supply chains. including modern day slavery. Circular Economy Positive Impacts for Food Positive Transformation People and Our Planet SDG Collaborate with food banks to serve SDG Brambles will advocate, educate Brambles commits to developing natural 2 rescued food to 10 million people. 4 and impact one million people and social capital accounting approaches Communities Positive Volunteering, in‑kind donations, skills SDG to become circular economy to transparently measure and validate our and expertise sharing and financial 12 change makers. performance against all 2025 targets and Brambles’ Communities Positive programme will build resilience, donations will be the catalysts for confirm progress towards our regenerative status. promote circularity and account this target. for the connections between society, the economy and nature. Direct Impact Sustainability Review 2020 9
Better Business The transition to a more sustainable and more circular economy is underway. The environmental impact of products, their packaging and how they move through Brambles 2020 sustainability goals supply chains has never been more in focus. Better Supply Chains Better Collaboration Better Workplace Brambles’ circular solutions are recognised Year-on-year environmental Year-on-year improvement Reduce Brambles Injury improvements in Brambles’ in customer collaboration Frequency Rate (BIFR) as leading the world in this movement, customers’ supply chains projects by 25% and achieve 30% which is confirmed in our results from representation of women on Brambles’ Board and in emerging circularity measurement tools6. management By expanding our circular ‘share and reuse’ Relevant SDG targets approach to more customers in more supply Target 12.2 Achieve the sustainable management Target 17.7 Promote the development, chains we can scale the benefits across and efficient use of natural resources transfer, dissemination and diffusion of environmentally Target 12.5 the globe and lay the foundations for a Substantially reduce waste generation sound technologies through prevention, reuse, reduction Target 5.5 regenerative supply chain. and recycling Ensure women’s full and effective participation and equal Target 12.6 opportunities for leadership Encourage companies to adopt sustainable practices and to integrate Target 8.4 sustainability information into their Improve global resource reporting cycle efficiency and endeavour to decouple economic growth from Target 9.1 environmental degradation Develop quality, reliable, sustainable and resilient infrastructure Target 8.7 Eradicate forced labour, end modern slavery and human trafficking and eliminate child labour 6 Refer to pages 11 and 16 for Brambles’ participation in the Ellen MacArthur Foundation’s Circulytics project. Sustainability Review 2020 10
Data on this page is covered by assurance Better Brambles is built on circular principles Supply Chains The Ellen MacArthur Foundation (EMF) is the global authority on the circular economy. It identified three key principles that form the foundation of a circular system. OUR 2020 GOAL Environmental savings in our customers' supply chains in comparison to single-use alternatives Yearly improvements in environmental Producer Manufacturer 2.0 million tonnes of CO2 benefits in our customers’ supply chains. 2,500 megalitres of water OUR ACHIEVEMENTS Circular ‘Share and Reuse’ 1.7 million cubic metres of wood Model Brambles’ achievements for 2020 are illustrated in the infographic to the right and are verified 1.8 million trees using robust Life Cycle Assessment (LCA) studies. Service Centre Retailer 1.3 million tonnes of waste VIDEO Our 2020 Goal The EMF’s principles of a circular system How Brambles implements these principles for customers Achievements: Better Supply Chains 1 Design out waste and pollution Designed to be shared and reused, our pallets, crates 80% of a product’s environmental impact can be and containers embody circularity, eliminating waste and The video shows the impact Brambles’ circular determined during the design stage. By viewing waste helping customers initiate their own circular strategies. solutions have had since 2015. as a design flaw, it can be avoided in the first place. 2 Keep products and materials in use Brambles’ products are durable and kept at their highest Build an economy that keeps things in use, value through recovery, repair and reuse, retaining their rather than simply using them up. utility for the benefit of multiple users over their lifetime. Brambles has contributed to the development of 3 Regenerate our natural systems Based on renewable, reusable, recyclable or Circulytics™, the most comprehensive circularity Not only protect, but actively improve the environment, biodegradable materials, Brambles’ platforms form the measurement tool for companies. ultimately creating regenerative systems. basis of a circular system that replenishes what it needs, “Brambles scores an overall A, which reflects their position paving the way for a regenerative future. as a leading actor in the circular economy.” (EMF analyst commentary in 2020 assessment) Learn more Table 1: Three principles forming the foundation of a new system – taken from the Ellen MacArthur Foundation’s learning resource. The results displayed in Brambles’ ‘share and reuse’ model are derived from peer-reviewed life cycle assessment (LCA) calculations. All data and calculation methodologies are available in our supplementary information document at brambles.com/sustainability-review. Sustainability Review 2020 11
OUR 2020 JOURNEY OUR 2025 VISION AND TARGETS Better Supply Chains continued Brambles’ Better Supply Chains programme has Supply Chain achieved its 2020 goal and defined what it means to deliver life’s essentials, more sustainably. Positive Our ‘share and reuse’ solutions help accelerate the By quantifying the environmental savings from our circular, evolution of a circular economy by transitioning ‘share and reuse’ model using life cycle assessments Year-on-year increase in environmental customers from single-use or one‑way packaging (LCA) we demonstrated to customers the value of reusable benefits in our customers’ supply chains to reusable packaging. Here, we describe the journey solutions over prevalent single-use alternatives. By producing through our ‘share and reuse’ model from 2015, and our 2025 vision and targets. Sustainability Certificates, Brambles showcases customers’ environmental achievements. To date, we have awarded Brambles will contribute to circular hundreds of these certificates to customers globally. Brambles’ economy measurement tools, suitable sales teams have embraced Sustainability Certificates as a key Rising to the challenge: supply chain differentiator and are using them in customer tenders, business for all sectors and industries, and use resilience in the pandemic reviews and sustainability conversations. Brambles’ customers these tools to improve the circularity of Our business has been crucial in connecting people with have also embraced the Sustainability Certificates for their our business. The EMF Circulytics™ tool life’s essentials during the Covid-19 pandemic, with each own sustainability communications. In this way, Brambles’ is the leading example Brambles business immediately classified as an essential certification has become a credential for a more sustainable service at the start of lockdowns in each region. supply chain. Brambles will pioneer regenerative supply chains by Initially, there were extreme surges in demand for pallets. expanding our circular model every year, increasing the The ambiguity and uncertainty in each region was environmental benefits in our customers’ supply chains and challenging and the agility of our teams and network was April 2019 to April 2020 – Supply Chain Partnership leveraging the natural capital created through our Forest significantly stretched as demand constantly changed. Positive initiatives. Sustainability Certificate Keeping our people safe was vital, with our office‑based In recognition for contributing to the circular economy by sharing and At a practical level this means: reusing packaging resources, employees working remotely and our plant employees CHEP Customer • Replacing single-use and one-way alternatives with our implementing key safety measures in service centres. use of Pallets and Reusable Plastic Containers (RPCs) provided by CHEP Australia is creating more sustainable supply chains and progressing the United Nations Sustainable Development Goals 12 and 15 circular solutions; Our plant employees worked extremely hard in a • Accounting for the carbon and waste reductions using LCA; situation that was truly unprecedented and we commend their service to the business, our customers and Promoting sustainable production and circular Sustainable use of the world’s forests • Accounting for the natural capital benefits from our Forest business models our communities. Carbon Emissions Saved Solid Waste Saved Positive programme; and 3,902 Tonnes CO2 2,930 Tonnes Equivalent to 5,854 Trees planted Equivalent to 26,849 Wheelie bins (240L) Brambles met the challenge and has the experience • Leveraging natural capital benefits to offset the residual and agility to respond to future impact of our customers’ supply chains. crises. Covid-19 has illustrated CHEP LCAs are independently peer-reviewed and ISO 14044 compliant. Sustainability data and calculation methods are assured by KPMG as part of Brambles’ Sustainability Review. The Environmental impacts communicated in this Sustainability Certificate are calculated using Life Cycle Assessment studies. Supply Chain Positive aims to take the principles of that safety is always paramount, circularity to broad scale adoption and is why we are actively and that collaboration in the participating in the development of circular economy A Sustainability Certificate from CHEP Australia demonstrates value chain from our suppliers measurement tools. This will initiate our pathway to creating the environmental benefits of our circular solutions and links to our customers is the key regenerative supply chains for customers. actions to the relevant Sustainable Development Goals. to resilience. Sustainability Review 2020 12
Better CUSTOMER CASE STUDY CUSTOMER CASE STUDY Supply Chains Fyffes fruit on a Fonti di Vinadio S.p.A. continued sustainable journey Fonti di Vinadio S.p.A. is the Italian bottler With its sustainability strategy pillar and distributor of Acqua Sant’Anna Here, we provide a snapshot of customer case “Stewardship for the Planet”, Fyffes mineral water. studies demonstrating how our LCA approach seeks to reduce its carbon footprint throughout Founded in 1996 by the Bertoni family, it is one provides tangible impacts and a positive narrative the supply chain. One of these initiatives is the use of the leading national brands in the sector. The for customers’ sustainability programmes. of reusable pallets to transport millions of boxes company places a high priority on sustainability of Fyffes fruit worldwide, through a partnership and minimising the impact of its operations. with CHEP. Last season, 100% of Fyffes melons CHEP provides a pallet pooling solution that were transported on CHEP pallets, and their use supplies euro pallets and half pallets of consistent in transporting Fyffes bananas continues to grow. quality for safe handling and product protection. BETTER SUPPLY CHAINS CASE STUDY Fyffes has saved 152,000 kilograms of solid waste In addition, CHEP has the global experience and and avoided 115,396 kilograms of greenhouse gas. expertise to optimise the customer’s transport Erick Pinot, CHEP’s General Manager in routes and achieve a reduction in empty transport Brambles’ net-zero-carbon supply chain solutions Central America, says, “We feel proud kilometres, minimising CO2 emissions and Brambles has led the market with zero-carbon supply chain to partner with Fyffes and share our generating cost savings. solutions with the carbon neutral Quarter Pallet in Europe and commitment to make the world a better These synergies led to an estimated annual the carbon neutral Half Pallet in North America. Zero-carbon place through the circular economy that reduction in environmental impact of means the residual carbon emissions from customers using these these pallets offer.” 1,800 tonnes of CO2, the equivalent of replanting products is reduced to zero using certified carbon offsets. More about 1,500 trees or 41 laps around the world customers are looking to address the emissions from their supply by car! chains and Brambles’ zero-carbon solutions provide access to the circular economy and strive for the climate future we and our stakeholders desire. BETTER SUPPLY CHAINS CASE STUDY Use of the Quarter Pallet supports the Uganda Community Reforestation project working with 6,000 farmers to improve financial security and build sustainable Reusables save carbon, waste and food waste One CHEP NZ RPC, compared to a livelihoods through community based tree planting in New Zealand’s fresh supply chain single-use cardboard alternative will programmes, sequestering 8,222 tonnes of CO2. save approximately: Brambles’ strategy to promote the superior environmental Learn more about the reforestation project performance of reusable platforms saw CHEP New Zealand 65% 90% (NZ) completing its first LCA study in 2020. It compared carbon solid waste CHEP’s reusable plastic crates (RPCs) to single‑use cardboard Use of the Half Pallet supports the Mississippi alternatives. Importantly, given the use of the RPCs in the fresh 130 kilograms Alluvial Valley Reforestation project in replanting food sector, the study also considered the prevented food waste of single-use cardboard over its lifetime one million hectares of native woodland to due to advantages in both the protection of produce and faster restore one of North America’s most important cooling times throughout the supply chain. 8,000 tonnes ecosystems, sequestering 926 tonnes of CO2. of CO2 each year from avoided food waste Learn more about the reforestation project Sustainability Review 2020 13
Data on this page is covered by assurance OUR 2020 JOURNEY OUR 2025 VISION AND TARGETS Better Collaboration Brambles’ Better Collaboration programme was an internal innovation developed in 2015 by a group of Collaboration OUR 2020 GOAL committed members of our Supply Chain team. Positive They identified extensive opportunities to create more value for customers by eliminating inefficiencies in the supply chain while We aim to increase the number of Yearly increases in collaboration projects delivering more positive outcomes for our environment. customer collaborations, doubling and the impacts they have. Importantly, this programme placed Brambles in an enabling the impact and the number of current position leveraging both our circular business model and place The purpose of Brambles’ Better Collaboration programme is collaboration initiatives from 250 to 500 in the supply chain to initiate collaborations with our customers to develop partnerships on shared goals. By connecting our and collaboration amongst other supply chain participants. As an initiator of a circular economy, Brambles will suppliers and customers, Brambles facilitates bigger impacts, The programme expanded throughout Brambles’ regions accelerate the circular transition for our customers. increasing positive business and environmental impacts and consequently, increased its environmental impacts. Collaboration Positive recognises that we can do throughout the value chain. This is testament to the value our customers ascribe to more together. Better Collaboration. Positive collaboration is enabled through our visibility of OUR ACHIEVEMENTS In 2019, Better Collaboration found its natural home in Brambles’ supply chains and our partnerships and is unique to our Zero Waste World (ZWW) programme allowing our commercial business model. Our collaboration projects differentiate and logistics teams to coordinate collaborations and draw from Brambles by uncovering new value which helps customers In 2020, Brambles increased the number of collaboration Brambles’ full suite of sustainability solutions. The accumulated with their own supply chain sustainability objectives. partners by 11% to 273. The combined transport distance savings in carbon and kilometres since its inception in 2015 are from collaborative projects exceeded 75 million kilometres Looking forward, this programme will continue to capitalise provided below, demonstrating the power of partnerships on and prevented over 86,000 tonnes of CO2 from entering on our scale, data and relationships to solve shared shared challenges. the atmosphere. sustainability challenges. For customers, Collaboration Positive will leverage our BXB Digital capabilities and Customers participating in collaborative projects new products and services for maximum impact and be Total environmental savings through transport 273 delivered through our ZWW programme. collaboration since 2015: 226 246 348+ million kilometres 185 177 349+ Eliminating waste – with our circular model million kilotonnes of CO2 Eradicating empty transport trips – FY16 FY17 FY18 FY19 FY20 using network scale and visibility to form partnerships VIDEO VIDEO Cutting out inefficiency – using end-to-end Our 2020 Goal Goal achieved! Increase in solutions and BXB Digital technology Achievements: customer collaborations Better Collaboration Learn more Sustainability Review 2020 14
CUSTOMER CASE STUDY Better Collaboration Group Mahou San Miguel (MSM) and CHEP: continued From commodity to strategic sustainability partner MSM Sustainability Director presented at MSM part of MSM Sustainability Transport Sustainability Day Transport case presented at (CHEP’s Madrid How Brambles optimises transport Collaboration project beginning ½ plastic pallet launch 1st carbon neutral project offices) Collaboration round CHEP Sustainability table event Day By leveraging our extensive networks, logistics knowledge and data, Brambles can fill empty lanes and take carbon out of an industry highly challenged in its 2015 2016 2017 2018 2019 2020 dependency on fossil fuels. 1st Sustainability Press Release: Press Release: MSM & CHEP’s MSM invited us to Press Release: Certificate referencing CHEP SELCO Sola sustainability their Supplier CN 2019 project + as part of MSM project (India) partnership in their Sustainability Sustainability Sustainability Annual Report Best Practice Event Collaboration in improvements MSM Magazine Pick-up A Destination A How Brambles optimises transport CUSTOMER CASE STUDY CUSTOMER CASE STUDY Ice River Springs keeps its circular business Reckitt Benckiser (RB) Destination B Pick-up B flowing – one bottle and pallet at a time and CHEP set the example Ice River Springs, a private-label bottled water producer with operations for transport collaboration Customer deliveries Minimum empty distance in Canada and the US, stands out from the competition in many in Poland ways, including its focus on sustainability. Their bottles are made CHEP Poland has begun working with We optimise transport in four different ways: from 100% recycled material and are 100% recyclable. Reckitt Benckiser on Collaborative 1. Plant Network Optimisation (PNO) – positions service Working with CHEP, with its pooled (shared and reusable) pallets, was Transport Solutions (CTS), which aim centres in optimal locations to capitalise on routes a strategic choice. Since Ice River Springs produces recycled bottles in to optimise their transportation. with the highest volume of platform exchange; a closed-loop production process at its Blue Mountain Plastics plant, RB owns some of the world’s most 2. Transport Collaboration (CHEP and customer) – CHEP pallets are used to move goods around the company’s production and loved brands in three categories: creates collaborative partnerships by being a trusted distribution facilities, in addition to delivering the finished product to stores. hygiene, health and nutrition. Its non-competitive player; “Working with CHEP and Zero Waste World is a natural partnership for us. Poland business uses over one million 3. Transport Orchestration – facilitates optimisation Ice River Springs is built around a sustainable framework, and we’ve proven CHEP pallets every year. CTS works by of empty transport journeys between two or it leads to profit.” Crystal Howe, Sustainability Manager Ice River Springs. having our customers share trucks with more customers; and In a nine-year period, Ice River Springs achieved significant us and with each other. By using our environmental savings. It avoided more than 703,000 kilograms of CO2 CTS, customers can improve transport 4. Multi-modal – utilises multiple transport modes and eliminated more than 907,000 kilograms of solid waste from landfill. availability, reduce their logistic costs such as rail and sea for the greatest cost and and cut their carbon emissions. carbon efficiencies. View the full case study Watch the video Sustainability Review 2020 15
Brambles scores an overall Thought Leadership, A rating in Advocacy and Innovation Circulytics™ Participation in sustainability forums is a key The Future of Reuse Circulytics™ engagement approach for Brambles. Despite many After winning the Australian Packaging Covenant Organisation The world’s first comprehensive circular measurement of these events switching to online virtual formats in (APCO) Sustainable Packaging Excellence award for 2019, tool, Circulytics™, was reviewed and tested by more than CHEP Australia participated in a Future of Reuse panel with 30 major companies including Brambles, as part of the 2020, discussion and action on the circular economy Tom Szaky, CEO of circular start-up Terracycle and creator EMF’s Circular Economy (CE) -100 programme. It measures is at an all-time high. What’s clear is that the circular of the consumer facing reuse solution, the Loop Platform. how efficiently companies reuse energy and materials economy is a concept whose time has come. and how effectively their products or services contribute AirShared to the circular economy. Circulytics™ highlights and AirShared is a digital collaboration platform which is part of inspires opportunities for innovation and provides quick the Zero Waste World initiative by Brambles, created to share understanding for those actively moving away from the ideas, challenges, and trends related to sustainable mobility current ‘take, make, waste’ linear economy. and to manage the collaborative transport projects in a simpler Brambles’ circular business model performed extremely well, and more effective way. The main aim of AirShared is to receiving an overall A rating reflecting the embedded nature create a community of companies that share the same values of circular design, thinking and processes in the business. and commitments to sustainable mobility, the collaborative “Brambles’ core reuse business model leverages one of the economy, and the circular economy. innermost loops of the circular economy butterfly diagram, which suggests that they are likely a company well positioned to thrive in a circular economy.” EMF analyst commentary. VIDEO The tool also highlights any areas for improvement and Why AirShared? for Brambles this means using more recycled or upcycled materials at the input stage. Circulytics™ is now a freely available resource. Digital technology optimises our pallet collection engine Watch the videos to find out more. CHEP Mexico used BXB Digital to attach 200 tracking devices VIDEO to CHEP pallets issued for use between manufacturing plants Think circular, act circular, in Mexico and a major US retailer. Monitoring the activity TAKING ACTION FOR 2025 measure circular: business leaders revealed a detailed picture of the flows between distribution discuss Circulytics™ centres and stores. The results produced accurate cycle time Brambles’ Circulytics™ scorecard, 2020 reports, identifying potential loss sites enabling CHEP to more Enablers A+ Outcomes B+ efficiently plan pallet collections. This helped to minimise the VIDEO Strategy and planning A+ Input C number of trucks on the road without impacting service. The valuable data was applied to machine learning and artificial Circulytics™ - Measuring your Innovation A+ Output A+ intelligence systems and used to optimise CHEP’s pallet transition to circularity People and skills A+ collection engine. As a result of this combined effort, the data Systems, processes A+ used is directly improving the collection process for 40% of and infrastructure pallet collections in Mexico, reducing asset cycle times and External engagement A+ unlocking sustainability outcomes for CHEP and its customers. Sustainability Review 2020 16
Governance – Modern Slavery Brambles’ Governance and Controls Brambles’ approach to anti-corruption and The following governance and controls Brambles has implemented a governance and control human rights, including modern slavery relating to modern slavery are also in place: environment, which is described in Brambles’ Slavery and Human Trafficking Statement, as required by the UK Modern Brambles is committed to operating in an Slavery Act, and posted annually to the Brambles website at environment in which all our employees act with Establish risk brambles.com honesty, integrity, fairness, and accountability. At the management process In 2021, Brambles will publish a Slavery and Human Trafficking core of our governance and control environment is Statement as required by the Australian Modern Slavery Act our Risk Management Programme. Supplier due 2018. As Brambles’ Slavery and Human Trafficking Statement diligence makes clear, at the core of Brambles’ governance and control Senior management is responsible for the implementation environment is its Code of Conduct and Human Rights Policy: of mitigation plans, including those related to the prevention of corruption and human rights violations including modern External ethical audits Code of Conduct day slavery. and assessments These risks, and the associated progress on risk mitigation, are Brambles’ Code of Conduct provides the cultural and reported to the Audit Committee and the Board twice each year behavioural framework that guides everything we do. and are supported by various functions, including Group Risk, Compliance assessments Human Rights Policy Internal Audit, Global Compliance and Sustainability. and internal audits This policy, which articulates the various human rights Brambles does not tolerate forced, bonded or compulsory principles advanced throughout Brambles’ Code of labour, human trafficking or other kinds of slavery in our own Conduct, is guided by international human rights Speak Up operations or in our supply chain. The company is committed principles encompassed in the Universal Declaration of whistleblowing hotline to taking appropriate steps to ensure that everyone who works Human Rights, the International Labor Organization’s for Brambles or any of its Group Companies—in any capacity Declaration on Fundamental Principles and Rights at anywhere in the world—is treated fairly, with dignity and Regular mandatory Work, and the United Nations Guiding Principles on respect and benefits from a working environment in which their training Business and Human Rights. fundamental human rights and freedoms are upheld. Brambles’ regions are responding to ethical supply Modern Slavery Community of Practice chain customer surveys. Brambles is a signatory to the United Nations Global To help Australian business navigate new developments CHEP Canada has received Platinum recognition Compact (UNGC) and continues to support the UNGC’s and share learnings in a safe space, the Global Compact in their 2020 EcoVadis assessment, scoring Ten Principles in the areas of human rights, labour, Network Australia (GCNA) hosts a Modern Slavery Community 78/100 and positioning the business in the top 1% environment, and anti‑corruption. of Practice (MSCoP) for business members. Brambles of responding companies. Brambles’ strong participates in the GCNA's MSCoP. Learn more position on ethics contributed to the result. Sustainability Review 2020 17
Data on this page is covered by assurance OUR 2020 JOURNEY OUR 2025 VISION AND TARGETS Better Workplace A Better Workplace has taken on a new meaning during the pandemic and has become a source of Workplace OUR 2020 GOAL stability for our people amidst ongoing uncertainty. positive All regions have actively engaged with their employees working remotely, often also home schooling or caring, to ensure they Our 2025 targets reflect the issues that are Our employee value proposition aims to remain connected to their teams and peers. important for our people. Brambles aims attract capable people who want to develop Brambles Pulse to provide a workplace with purpose and their careers, develop themselves and During FY20, Brambles performed a global Pulse Survey as compassion; one that upholds the expectations who are passionate about creating more well as a Mini Pulse to better understand our employees’ of all stakeholders now and in the future. experience. The results were valuable in getting insights sustainable supply chains. into the business and identifying local areas where we can Amazing place to work make improvements at a team level and ultimately create a better workplace. The Pulse results indicate that employees Our employees rate us in the OUR ACHIEVEMENTS feel positive about how their work contributes to success and top 20% of places to work is enabled by the removal of barriers. Employees would like Global Top Employer accreditation 77% to see more communication around strategy as well as more opportunities for teams to collaborate. employee engagement Anti-corruption and human rights, Mini Pulse results 2020 including modern slavery Brambles’ Pulse Survey FY20 The Mini Pulse was aimed at understanding how employees The participation of 86%, 3 points higher than the FY19 survey, were coping with changes brought about by the unique Advance human rights conditions was largely due to a strong response rate from plant-based Covid-19 situation and whether there was more Brambles could in our businesses and supply chain employees, which increased by 7%, taking their overall do to support them. response to 84%. The results of the Mini Pulse, indicate that they feel well Work to uphold anti-corruption in all supported during this time. They also feel that Brambles is forms in our businesses and supply chain Engagement is at 76% for plant-based employees. This represents a 1% increase and is also 3% above the industry taking a genuine interest in their wellbeing. benchmark for manufacturing. 78% of office-based employees More than 4,500 people completed the survey. Because of the are engaged which is one point above previous results. circumstances Brambles was not operationally able to survey Overall, there is a small increase in overall engagement the majority of our plant-based teams but did hear from many Employee turnover Employees by to 77% (which is two points below the benchmark for the of its plant-based support and management teams. Feedback (%) FY20 segment FY20 top 20% of companies). from these employees was in aggregate less positive than the average and is therefore being addressed as a priority. CHEP Americas 39.26 4,543 CHEP EMEA 6.21 5,355 Brambles’ employee MyShare programme is at CHEP Asia‑Pacific 9.81 1,571 #TopEmployer in Europe for third year in a row 43.3% participation Corporate 9.35 596 due to our excellent employee conditions and Group 19.09 12,065 HR practices. Sustainability Review 2020 18
Data on this page is covered by assurance OUR 2020 JOURNEY OUR 2025 VISION AND TARGETS Safety Keeping our people safe has always been paramount for Brambles and making our workplace safer has Safety OUR 2020 GOAL consistently been rated as a top issue by our people. positive Our journey from 2015 has not been without its challenges but Brambles has always been committed to learning and improving. Reduce Brambles Injury Frequency Rate 9 July 2020 was the anniversary of the death of José Luis Brambles will commit to a minimum (BIFR) by 25% on 2015 levels. Segura at our Bellpuig service centre, Spain. Graham Chipchase of 25% reduction in BIFR by 2025 marked the occasion with a communication to all employees about the tragedy and a reminder that workplace safety is not Expand well-being at work programmes OUR ACHIEVEMENTS about statistics or programmes, but about making sure everyone returns to their loved ones at the end of each day. Brambles is always committed to the safety of our In FY20, Brambles met its year-on-year improvement Protecting our team members’ health during the people, our customers and the communities we serve. Covid-19 pandemic Looking ahead, our safety strategy will focus on target, recording a BIFR of 5.5, which represents a Recognising the threat of the Covid-19 pandemic early on, continued implementation of our Safety Differently 61% decrease, significantly better than our goal, in Brambles established a global task force in early February to programme using the Human and Organisational BIFR for the five-year period ending June 2020. monitor the progression of the outbreak and act as needed Performance (HOP) framework which helps apply our to ensure the health of our staff around the world. This task changes in a practical and employee-centric way. Brambles Injury Frequency Rate force developed guiding principles that allowed for rapid 14.7 Further Enhancing Our Hazardous Area decision making in a fluid situation while remaining true to Entry Controls our core values. 10.3 Brambles is moving toward a harmonised machine Critical in this work was establishing and implementing the 7.1 safety standard that meets or exceeds local regulatory 5.9 5.5 necessary controls to keep our service centre staff safe and 5.0 standards in the approximately 60 countries where healthy. They have operated continuously since the beginning we operate. In FY20, the Global Safety and Process of the pandemic to keep critical supply chains around the world Engineering teams collaborated to update global supplied with pallets, crates and containers. safety standards to deliver greater standardisation and FY15 FY16 FY17 FY18 FY19 FY20 Our office-based staff transitioned to work from home to increase additional layers of defence for controlling Brambles is committed to Zero Harm – to our people and those reduce transmission risks and in response to government entry into hazardous areas such as robotic cells. we work with; to our customers and the communities we serve; requirements. As offices reopen slowly, and after sanitation and Safety Differently and to the environment upon which we all depend. Brambles’ social distancing measures are in place, capacity is being strictly managed and individuals are encouraged to continue working A philosophy that emphasises a bottom-up approach Zero Harm programme aims to achieve a reduction in the to safety through engagement with the frontline team BIFR each year. from home if they prefer during the transition. members who actually do the work. HOP is a pragmatic BIFR measures work-related injuries requiring medical operating philosophy that embodies five key principles treatment, fatalities, lost time and modified duties per that drive how we approach Safety Differently: people million hours worked. BIFR includes contractors working under make mistakes; blame fixes nothing; context drives Brambles’ management but does not include outsourced behaviour; learning is vital; and how we react matters. Since our service centres around the world continue service centres. Brambles’ Lost Time Injury Frequency Rate The Covid-19 pandemic delayed some regional training operating as an essential service to global supply is available in the five-year performance summary. on Safety Differently but we have utilised virtual meeting chains, we have continued holding Safety Differently tools to overcome this. Learning Teams without interruption. Sustainability Review 2020 19
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