Towards a regenerative supply chain - Sustainability Review 2020 - brambles.com/sustainability
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Sustainability Review 2020
Towards a
regenerative
supply chain
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brambles.com/sustainability Ce 020
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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 10Data 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 11OUR 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 12Better 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 13Data 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 14CUSTOMER 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 15Brambles 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 16Governance –
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 17Data 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 18Data 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 19You can also read
