Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• People
• Society
• Ethics & Governance

Environmental Achievements

• Decreased consumption of Expanded Polystyrene (EPS) by 30% (715 metric tonnes)
• Successfully transitioned 100% of New Zealand's largest supermarket’s EPS trays to rPET, diverting 107 million single-use EPS trays per annum from landfill
• Transitioned one operating site in New Zealand from EPS to rPET
• Increased consumption of recycled resin by 2,712 tonnes
• Secured Government grants for new infrastructure expanding recycling capacity by an additional 22,700 tonnes per annum
• Launched numerous new products containing recycled content

Social Achievements

• Decreased Lost Time Injury Frequency Rate (LTIFR) to 4.7 in FY19
• Women made up 43% of the total workforce in FY19 (up from 34% in FY18)
• More than 59,000 hours of parental leave were taken across the Group in FY19 (38% more than FY18)

Governance Achievements

• No incidents of corruption
• No legal action pending or completed regarding anti-competitive behaviour
• Updated Risk Management Policy and Framework

Climate Goals & Targets

Environmental Challenges

• Consumer confusion about recycling
• Contamination in post-consumer waste streams
• Need for scalable end-of-life solutions for recyclable resources

Mitigation Strategies

• Joined APCO’s Packaging Recycling Label Program
• Secured government grants for new recycling infrastructure
• Investing in closed-loop industry solutions and expanding pooling solutions

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4

Third-party Assurance: Ernst & Young (limited assurance for Scope 1 and 2 emissions in Australia and New Zealand)

Sustainable Products & Innovation

• Snap Clic Pelican Closure
• Products made from recycled resin
• Wheelie bins made from recycled milk bottles

Awards & Recognition

• Australasia’s Most Innovative Companies (7 consecutive years)
• Australasian Packaging Innovation and Design Awards (PIDA)

Environmental Metrics

ESG Focus Areas

• Circular Economy
• Sustainability
• Recycling
• Reuse

Environmental Achievements

• Decreased consumption of polystyrene resin by 181 tonnes in FY20
• Reduced single-use corrugate secondary packaging by more than 2,000 tonnes since 2019 through returnable produce crate expansion
• Increased the number of products manufactured from recycled resin by 31% since 2019
• Secured contracts to supply three Australian supermarket chains with recycled PET meat trays (approximately 35 million trays annually, each with 10–30% post-consumer recycled content)

Social Achievements

• Supported communities during COVID-19 through supply of hand sanitiser and hygiene products, donations, and commitment to sustainability
• Improved Lost Time Injury Frequency Rate from 4.7 in the prior year to 4.0 in FY20

Governance Achievements

• Welcomed Mr. Michael Wachtel to the Board as a Non-Executive Director
• Resumed dividends with a final dividend of three cents per share, 65% franked

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting volume in industrial and clothing retail sectors
• Underlying volume challenges in Australian packaging business
• Devastating bushfires in Australia

Mitigation Strategies

• Implemented COVID-19 response plan focused on employee safety, customer support, and balance sheet protection
• Improved balance sheet through strong cash flow, tight cost control, and debt reduction
• Developed targeted segment strategies to improve margins and focus on growth opportunities
• Expanded recycling capability through strategic investments (Flight Plastics acquisition, joint venture with Cleanaway and Asahi)

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4

Sustainable Products & Innovation

• Recycled PET meat trays
• Lewis Road's 100% rPET Milk Bottle
• Glowlabs' post-consumer sourced (PCR) 100% rPET bottle

Awards & Recognition

• Australian Financial Review BOSS Most Innovative Companies List (2019-2013)
• Wealth & Finance International Global Excellence Awards (2019)
• Acquisition International Leading Advisor Awards (2020)
• World Packaging Organisation (WPO) Sustainability Special Award (2020)
• Australasian Packaging Innovation & Design Awards (PIDA) (2020)
• Canstar Awards (2020)
• Choice Awards (2019)

Environmental Metrics

ESG Focus Areas

• People
• Planet
• Principles

Environmental Achievements

• Increased recycling capacity by 14% or 5,000 tonnes p.a.
• Grown the use of Returnable Produce Crates (RPCs) by 5.8% to eliminate the need for single-use corrugate secondary packaging by 1,886 tonnes p.a.
• Decreased consumption of Polystyrene (PS) by 69% or 2,364 tonnes.
• Decreased consumption of Polyvinyl Chloride (PVC) by 43% or 702 tonnes.
• Recycled approximately 35,000 tonnes of plastic
• Achieved Level 4 (Leading) performance across the seven mandatory Core Criteria in APCO Annual Report and Action Plan results

Social Achievements

• 88% participation in Pact Pulse Employee Engagement Survey across 15 countries
• 13% take-up rate of new employee myPact Share Plan (400 employee shareholders)
• Launched Lead training program
• Established a Senior Leadership Team
• Reviewed and enhanced Parental Leave Policy in Australia, offering 18 weeks paid parental leave for primary care givers and 2 weeks paid parental leave for secondary care givers.
• Supported 18 charities through our Community Giving Program

Governance Achievements

• Reviewed and updated Code of Conduct and Supplier Code of Conduct
• Reviewed and updated Anti-Bribery and Corruption Policy to include disclosure and adherence to modern slavery practices
• Published first Modern Slavery Statement
• Updated all new procurement contracts to include modern slavery provisions

Climate Goals & Targets

Environmental Challenges

• Optimising process efficiency to further minimise the impacts of our manufacturing processes
• Increasing the percentage of waste diverted from landfill

Mitigation Strategies

• Intention to set long-term targets towards reducing emissions in FY22
• Engagement with a third party in FY22 to explore further ways of increasing the percentage of waste diverted from landfill

Supply Chain Management

Responsible Procurement

• Updated Supplier Code of Conduct to include ethical standards, labour and human rights, health and safety, environmental management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Third-party Assurance: Ernst & Young

Sustainable Products & Innovation

• new range of 250ml and 350ml bottles for Culley’s made from 100% recycled PET
• new 120ml hydrating skincare product for Essano from 100% rPET
• TRESemmé’s 900ml Shampoo and Conditioner bottles transitioned from virgin HDPE to 50% rHDPE
• Macro’s new 500ml litre bottle made from 100% recycled polyethylene terephthalate (rPET)
• Macro’s new one litre bottle made from 75% recycled High Density Polyethylene (rHDPE)
• Glow Lab’s post-consumer sourced (PCR) 100% rPET bottle
• Earthwise’s post-consumer sourced (PCR) 75% rHDPE cleaning range bottles

Awards & Recognition

• Two 2021 WorldStar Packaging Awards

Environmental Metrics

ESG Focus Areas

• People
• Planet
• Principles

Environmental Achievements

• Decreased production of polystyrene (PS) packaging by 11% or >360 tonnes
• Decreased production of polyvinyl chloride (PVC) packaging by 42% or >125 tonnes
• Reduced Scope 1 & 2 emissions by 12%
• Recycling facilities produced 54,000 tonnes of recycled material (a 42% increase from FY22)

Social Achievements

• Group-wide awareness training completed by employees to enhance awareness of corruption and bribery risks
• 85% participation rate in Pact Pulse Employee Engagement Survey
• 80% of employees agreed that ‘Pact Group values diversity and provides a safe and enabling workplace’
• Diversity & Inclusion (D&I) Committee established
• Initial Reconciliation Action Plan (RAP) draft established

Governance Achievements

• Refreshed Competition and Consumer Act Compliance Policy and Modern Slavery Policy
• Modern Slavery Statement released

Climate Goals & Targets

Environmental Challenges

• Challenges related to measuring and reducing Scope 3 emissions due to extensive supply chain
• Recycled resin is harder to source than virgin resin
• Some customer requirements do not accommodate the use of recycled content
• Ongoing labour market constraints affected ability to attain female interviewing goal

Mitigation Strategies

• Investing in world-class sorting, washing and processing technologies to produce high-quality, locally-sourced recycled resins
• Working with customers to convert virgin resin packaging contracts to include recycled content
• Opening new recycling facilities
• Dedicated strategy to reduce pay disparity

Supply Chain Management

Supplier Audits: 99% of new suppliers screened in FY23

Responsible Procurement

• Supplier Code of Conduct
• Modern Slavery Policy
• Anti-Bribery and Corruption Policy

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 45001

Third-party Assurance: Foresight Consulting Group Pty Ltd

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 4: Quality Education
• Goal 5: Gender Equality
• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 10: Reduced Inequalities
• Goal 11: Sustainable Cities and Communities
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 17: Partnerships for the Goals

Circular Economy Strategy and initiatives described in the report contribute to these goals.

Sustainable Products & Innovation

• SULO mobile garbage bins with up to 80% recycled content
• Woolworths packaging with recycled plastic
• ALDI packaging with recycled plastic
• Swisse Ultivite closures with up to 50% rHDPE
• Hive & Wellness honey bottle with 30% rPET
• Brownes beverage bottles with 100% rPET

Awards & Recognition

• Australian Financial Review’s Most Innovative Companies List
• Australian Institute of Project Management’s Sustainable Project Management Achievement Award
• National Project Management Achievement Award
• Australian Financial Review’s Sustainability Leaders
• WorldStar Packaging Awards
• Australasian Packaging Innovation & Design Awards
• US Plastics Pact Sustainable Packaging Innovation Award
• Reuse Catalyst Partner

Environmental Metrics

ESG Focus Areas

• People
• Planet
• Principles

Environmental Achievements

• Decreased consumption of problematic polymers used to manufacture packaging by 40%, or more than 1,200 tonnes compared to FY23
• Increased consumption of recycled resin by 2,300 tonnes (12% inclusion of recycled resin across plastics portfolio)
• Increased the amount of recycled plastic processed and sold by almost 10% or more than 5,000 tonnes compared to FY23
• Achieved a 9% reduction in Scope 1 and 2 emissions across Australia and New Zealand, compared to FY23
• Two new Pact-operated Circular Plastics Australia (CPA) joint venture recycling facilities commenced operations in Victoria.

Social Achievements

• Achieved 30% female representation in Senior Leadership Team
• Transitioned to a decentralized WHSE model prioritizing proactive risk management
• Improvements in Total Recordable Injuries close-out rate and Safety Behavioural Observations
• Reduction in gender pay disparity

Governance Achievements

• Refreshed nine corporate policies and adopted two new internal policies
• 100% of our FY23 performance metrics were achieved for sustainability-linked loans (SLL). These were 3rd-party reviewed in FY24.

Climate Goals & Targets

Environmental Challenges

• Scope 3 emissions across the value chain are much greater than Scope 1 and 2 emissions.
• Supply chain disruptions

Mitigation Strategies

• In FY25, Pact will set a Scope 3 emission reduction target to complement existing targets and have these validated by the Science Based Target initiative (SBTi).
• Implementing an updated, Group-wide Resin Handling, Storage, and Spill Procedure to mitigate loose resin environmental risks.
• Rigorous supplier onboarding program screening suppliers for social and environmental criteria.

Supply Chain Management

Supplier Audits: 99% of new suppliers screened in FY24

Responsible Procurement

• Supplier Code of Conduct
• Modern Slavery Policy
• Anti-Bribery and Corruption Policy

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: Null

Third-party Assurance: Foresight Consulting Group Pty Ltd

UN Sustainable Development Goals

• Not disclosed

Pact is a signatory to the UNGC and committed to supporting the SDGs through its Circular Economy Strategy.

Sustainable Products & Innovation

• Infinity Series IBCs and 220-litre drums made with post-consumer resin

Awards & Recognition

• 2024 Circular Economy Award