Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Health and Safety
• Social Responsibility
• Governance

Environmental Achievements

• CHEP USA's pallet pool eliminated approximately 1.1 billion kilograms of solid waste, saved eight trillion BTUs of energy, and avoided 634 million kilograms of greenhouse gas emissions in 2007.
• CHEP Europe's pallet pool will save more than 242 million trees from being felled when compared with one-way disposable pallets over a 10-year period.
• Recall recycles about 225,000 tonnes of paper each year.

Social Achievements

• Brambles Employee Survey achieved a global benchmark response rate of 86%.
• CHEP Australia inaugurated the CHEP Young Driver Program.
• Brambles provided about US$600,000 in grants through the Community Reach program.

Governance Achievements

• Brambles retained its listings in the Dow Jones Sustainability Index (DJSI) and the FTSE4Good Index.
• Brambles transitioned to the second edition of the ASX Corporate Governance Council’s Principles and Recommendations.

Climate Goals & Targets

Environmental Challenges

• Brambles did not maintain the same level of improvement in its GHG emission and energy use intensities as it demonstrated over the preceding four years.
• Brambles' safety performance slipped back to 2006 levels in 2008 (LTIFR of 3.1 and LTISR of 59.1).

Mitigation Strategies

• CHEP USA implemented initiatives to reduce greenhouse gas emissions and minimize its environmental footprint (ENERGY STAR Partner, SmartWay Transport Partnership, Hybrid Vehicle Incentive Program).
• CHEP and Recall enhanced their safe driving initiatives to improve safe driving and reduce vehicle accidents.
• Brambles is determined to make continual progress towards Zero Harm.

Supply Chain Management

Responsible Procurement

• Strict lumber sourcing policies supporting sustainable forestry practices; audits and certifications of suppliers.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Dow Jones Sustainability Index (DJSI), FTSE4Good Index, FTSE ISS Corporate Governance Index Series, Ethibel Excellence Sustainability Index, AuSSI (Australian SAM Sustainability Index)

Sustainable Products & Innovation

• CHEP's pallet pooling system; Recall's document archival and retrieval solutions.

Environmental Metrics

ESG Focus Areas

• Environment
• People
• Community

Environmental Achievements

• Reduced GHG emissions by 5% (from 153.05 kt CO2-e to 145.02 kt CO2-e) and energy use by 12% (from 1,675.40 TJ to 1,480.17 TJ) in 2010 compared to 2009.
• CHEP Italy reduced its carbon footprint by about 27% in 2010.
• CHEP USA reduced energy consumption at its headquarters by 497,362 kWh, reducing CO2-e by 0.315 kt.

Social Achievements

• Increased percentage of “fully engaged” employees from 58% to 63% (as measured by the Brambles Engagement Survey).
• CHEP Portugal ranked 12th in the ‘Great Place to Work Survey’ and 4th in companies providing the best environment for women.
• Recall Thailand initiated a program promoting employment opportunities for people with disabilities.

Governance Achievements

• Reviewed its diversity policy in the context of the 2010 amendments to the Australian Securities Exchange Corporate Governance Council’s Corporate Governance Principles and Recommendations.
• Adopted a new risk management framework in 2010.

Climate Goals & Targets

Environmental Challenges

• Inaccurate GHG emission data reporting prior to 2009.
• Possible inclusion of threatened lumber species (Longleaf Pine, Virginia Pine, and Sand Pine) in the supply chain.
• Need to improve the intuitiveness and ease of use of the Safety Management Information System (SMIS).

Mitigation Strategies

• Improved GHG reporting process in 2009 and 2010, including external review of methodology.
• Continued supply chain auditing practices to better understand and minimize the potential use of threatened lumber species.
• Ongoing work to make SMIS more user-friendly.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Strict lumber sourcing policies, with preference for certified sustainable sources
• Code of Conduct communicated to suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Relocation of customers' operations due to climate change impacts

Transition Risks

• Cost impacts of climate change on energy, water, insurance, and transport

Opportunities

• Increased demand for CHEP's sustainable business model
• Opportunities for collaborative development of new environmentally friendly products

Reporting Standards

Frameworks Used: GRI G3 Guidelines

Certifications: ISO 14001 (some CHEP sites)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Folding Reusable Plastic Containers (FRPCs)
• Plastic display pallets

Awards & Recognition

• CHEP Portugal ranked 12th in the ‘Great Place to Work Survey’

Environmental Metrics

ESG Focus Areas

• Safety
• Sustainability

Environmental Achievements

• 20% reduction in greenhouse gas emissions by 2015 (target)
• Zero lumber waste to landfill by 2015 (target)
• Year-on-year recycling improvements (ongoing)
• Continued efforts to improve lumber supply chains, including development of a global sustainable sourcing standard to incorporate biodiversity and human rights.

Social Achievements

• 30% female representation on Board and Executive Leadership Team by 2015 (target)
• 30% female representation within all management positions by 2018 (target)
• 25% reduction in BIFR on 2012 levels by 2017 (target achieved)
• Improved ownership of safety at the site level
• Increased focus on safety management and incident investigation
• Machine incident reductions and repair process improvements
• Focus on ergonomic improvements and washing machine safety
• Improvements in CHEP Aerospace Solutions
• Roll-out of the global Occupational Health, Safety & Environment reporting system (iCARE)
• Signed the UN Global Compact
• Became a Steering Committee member of the World Economic Forum’s food waste project
• Development of a global supplier policy to be rolled out in FY14

Governance Achievements

• Updated Zero Harm Charter, including adding human rights to existing safety and environmental commitments
• Enhanced visibility of lumber supply chains and updated lumber purchasing processes
• Incorporated Social Media Policy in Code of Conduct
• Established a process to determine key sustainability topics
• Conducted a formal analysis of sustainability topics using AccountAbility Principles Standards AA1000 five-part test

Climate Goals & Targets

Environmental Challenges

• Changing supply chain dynamics and customer needs
• Competition and retention of major customers
• Strategy and execution risks
• Innovation challenges
• Equipment losses
• Equipment quality issues
• Mergers and Acquisitions integration challenges
• People capability limitations
• Systems and technology risks
• Operational risks (industrial hazards, road traffic accidents)
• Relatively flat economic growth outlook in developed markets
• High levels of penetration in some regions of Pallets operations
• Entrenchment of disposable solutions in some markets
• Lead time to develop opportunities in new pooling markets
• Global rises in input costs, in particular for lumber
• Changes to consumer behaviour and retailing formats
• Ongoing activity from new and existing competitors
• Availability of internal candidates for senior roles

Mitigation Strategies

• Continued exploration of growth opportunities in new products, services, segments and geographies
• Extend service offerings in existing markets and expand into new segments and geographies
• Continued targeted expansion of Containers portfolio
• Monitor raw material costs and mitigate as required; drive efficiency in other cost areas
• Review and improve overhead structure
• Continued focus on innovation and product strategy
• Leveraging of CHEP global scale, footprint, network and brand
• Development of solutions to suit new retail formats and behaviour (e.g. promotional display pallets)
• Build strength of global network and cost leadership position to provide best solutions for customers
• Continued emphasis on enhancing and developing talent throughout the group
• Nurturing “one business” culture
• Inaugural Fast Track program for a select group of executives aimed at developing company leaders

Supply Chain Management

Responsible Procurement

• Development of a global sustainable sourcing standard for lumber

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3.1

Third-party Assurance: KPMG (limited assurance on adherence to GRI principles and selected metrics)

Sustainable Products & Innovation

• New and improved pallets for promotional in-store display
• Egg crates, banana crates and meat crates

Environmental Metrics

ESG Focus Areas

• Better Business
• Better Planet
• Better Communities

Environmental Achievements

• 24.5% reduction in GHG emissions from 2010 baseline (excluding acquisitions and emerging/developing economies)
• 94% of Pallets’ wood came from certified sources (up from 88% in FY13)
• 75% of global sites achieved zero wood waste to landfill

Social Achievements

• 90% employee response rate in Brambles Employee Survey (BES)
• Brambles’ employee engagement score increased to 70% (from 68% in FY13)
• More than 1,000 employees volunteered 11,461 hours

Governance Achievements

• Developed and introduced a global supplier policy and framework
• Adopted a revised Anti-Bribery and Corruption Policy
• Completed Sedex Members’ Ethical Trade Audit (SMETA) process at European and US sites

Climate Goals & Targets

Environmental Challenges

• Limited availability of commercially acceptable COC certified wood in several markets
• High employee turnover in Pallets Americas impacting safety training
• Measurement of Scope 3 emissions

Mitigation Strategies

• Collaborating with customers to address wood sourcing challenges
• Implementing robust safety management systems
• Improving estimation methods and data collection for Scope 3 emissions

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Global supplier policy
• Wood purchasing policy

Climate-Related Risks & Opportunities

Physical Risks

• Harsh winter conditions impacting emissions

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI G4

Certifications: ISO 9001:2008 (Pallets India, other sites)

Third-party Assurance: KPMG (limited assurance)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• New generation plastic quarter pallet with reduced carbon footprint

Awards & Recognition

• 2013 CDP Forests sector leader
• MyShare plan awarded ‘Best International Share Plan’

Environmental Metrics

ESG Focus Areas

• Better Business
• Better Planet
• Better Communities

Environmental Achievements

• Achieved a 20.5% reduction in emissions from 2010 levels in FY15 (CHEP sites only)
• Increased use of chain of custody certified wood

Social Achievements

• Improved employee engagement scores (measured by Brambles Employee Survey)
• Implemented a global supplier policy

Governance Achievements

• Updated material sustainability topics process
• Risk and Control Committees assess economic, social and environmental sustainability risks

Climate Goals & Targets

Environmental Challenges

• Data limitations and exclusions (e.g., water data from recycled pallets operations, Ferguson Group data)
• Challenges in collecting accurate water discharged data

Mitigation Strategies

• Implementing the iCARE online data collection system
• Engaging KPMG for limited assurance engagement

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Global supplier policy (includes Code of Conduct), due diligence on wood sourcing, responsible sourcing of palm oil in detergents

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4

Certifications: Null

Third-party Assurance: KPMG (limited assurance)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Carbon neutral pallet offering (Europe)

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Better Business
• Better Planet
• Better Communities

Environmental Achievements

• Carbon reduction from share and reuse model outweighs Brambles’ operational carbon impact, resulting in a 'net positive' carbon position for FY16.
• Year-on-year improvement in carbon emission intensity for transport emissions (CO2/kilometer) and year-on-year improvement in energy from renewable sources.

Social Achievements

• Improved employee engagement (specific metrics not provided but mentioned as tracked through the Brambles Employee Survey)
• Initiatives to improve customer experience (through NPS program and other feedback mechanisms)

Governance Achievements

• Establishment of a Sustainability Risk Committee (SRC) to enhance the Group’s risk management framework.
• Incorporation of economic, environmental, and social sustainability risks into the Group’s risk management framework.

Climate Goals & Targets

Environmental Challenges

• Data collection challenges for emissions from third-party service centers and transportation.
• Data collection challenges for waste and wood and plastic diverted from landfill.
• Challenges in collecting accurate water discharged data.

Mitigation Strategies

• Identified 136 sites representing 95% of emissions for focused data collection.
• Estimated remaining 5% of emissions based on average emissions of the 136 sites.
• Used production figures to identify larger sites representing 80% of total wood pallet production for waste data collection.
• Applied estimates to sites not included in waste data collection.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Global supplier policy (includes Code of Conduct), due diligence on wood sourcing, engagement with strategic suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4

Certifications: Null

Third-party Assurance: KPMG (limited assurance)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Carbon neutral pallet offering (CHEP Europe)

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Better Business
• Better Planet
• Better Communities

Environmental Achievements

• Carbon reduction from share and reuse model outweighs Brambles’ operational carbon impact, resulting in a 'net positive' carbon position for FY17.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Global supplier policy (includes Code of Conduct), due diligence on wood sourcing, responsible sourcing of palm oil

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4

Certifications: Null

Third-party Assurance: KPMG (limited assurance)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Carbon neutral pallet offering (Europe)

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Better Business
• Better Planet
• Better Communities

Environmental Achievements

• Carbon reduction from share and reuse model outweighs Brambles’ operational carbon impact, resulting in a 'net positive' carbon position.
• Year-on-year improvement in energy from renewable sources.

Social Achievements

• Improved employee engagement based on Brambles Employee Survey (BES) results.
• Initiatives to improve customer experience through the Relationship program and closed-loop process.

Governance Achievements

• Incorporation of economic, environmental, and social sustainability risks into the Group’s risk management framework.
• Establishment of a Sustainability Risk Committee (SRC).

Climate Goals & Targets

Environmental Challenges

• Data collection challenges for water discharged and some scope 3 emissions.
• Need for further development of regional methodologies for customer collaboration and carbon savings.

Mitigation Strategies

• Improvements to data collection process using Arete and iCare systems.
• Ongoing development and refinement of regional methodologies.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Updated global procurement policy aligned with Brambles Code of Conduct principles.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4

Certifications: Null

Third-party Assurance: KPMG

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Carbon neutral pallet offering

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental impact of direct operations
• Overuse of the world’s resources (including raw materials)
• Zero harm
• Learning and development
• Transparency & corporate governance (incl. anti-corruption and bribery)
• Sustainable (business) growth
• Climate change impacts
• Work/life balance
• Move to climate-neutral circular economy
• Social impact of value chain

Environmental Achievements

• 99.7% of wood from certified sustainable sources
• 18% reduction in CO2/unit since 2015
• 60% energy from certified renewable sources
• 94% of Brambles’ largest managed sites diverted wood product from landfill
• 100% of Brambles’ largest managed sites diverted plastic product from landfill
• 42.0 megatons CO2e saved in customers' supply chains
• 2,595 megalitres water saved in customers' supply chains
• 1.7 million m3 wood saved in customers' supply chains
• 1.3 megatons waste diverted from landfill in customers' supply chains
• 1.7 million trees saved by our ‘share and reuse’ model

Social Achievements

• Increased employee engagement to 76%
• 14% increase in volunteer hours per employee
• 29% of management roles held by women
• Launched ‘Safety Differently’ strategy
• Launched Zero Waste World initiative
• Expanded Diversity Programme
• Introduced Mental Health initiatives in CHEP Australia

Governance Achievements

• Implemented a new approach to employee feedback through Pulse surveys
• Launched MyShare Programme, showing positive correlation between reduced turnover and increased tenure
• Responded to TCFD recommendations
• Implemented governance controls relating to anti-corruption and human rights

Climate Goals & Targets

Environmental Challenges

• Did not meet year-on-year improvement in BIFR in FY19
• A tragic incident at the CHEP Bellpuig plant in Spain resulting in a fatality
• Issue with CoC certification lapsing for a supplier in Mexico
• Increased Group voluntary turnover by 3.8 percentage points

Mitigation Strategies

• Launched ‘Safety Differently’ strategy based on Human & Organizational Performance (HOP) principles
• Thorough investigation of the incident in Spain with learnings communicated throughout the Group
• Rectified the issue with the Mexican supplier and reinstated its certification
• Implemented MyShare Programme to reduce turnover

Supply Chain Management

Responsible Procurement

• Commitment to sourcing sustainable wood in all regions
• Embedding sustainable sourcing objectives against relevant roles, linked to remuneration
• Consistent and transparent measurement, including external assurance and public reporting
• Due diligence process in regions where certification is not available or in high-risk regions

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standard, UN Global Compact Communication on Progress, UN Sustainable Development Goals (SDGs)

Third-party Assurance: KPMG

UN Sustainable Development Goals

• SDG 12: Responsible Consumption and Production
• SDG 15: Life on Land

Circular business model aligns with SDG 12; reforestation efforts support SDG 15

Sustainable Products & Innovation

• Improved CHEP 1208 pallet

Awards & Recognition

• Second position in industry category in Morgan Stanley Capital International's sustainability assessment
• Leader in top 1% of companies analysed by Morgan Stanley Capital International
• Top 10% of companies analysed globally achieving the MAXIMUM AAA RATING by MSCI
• CDP Forest B List
• Second most sustainable international company in the world
• Constituent of the FTSE4Good index
• APCO Logistics award
• APCO Outstanding Achievement in Sustainable Packaging Operations award

Environmental Metrics

ESG Focus Areas

• Environmental impact of direct operations
• Overuse of the world’s resources (including raw materials)
• Zero harm
• Learning and development
• Transparency and corporate governance (including anti-corruption and bribery)
• Sustainable (business) growth
• Climate change impacts
• Work/life balance
• Move to climate-neutral circular economy
• Social impact of value chain

Environmental Achievements

• 100% wood from certified sources
• 33% reduction in CO2 reduction in emissions per unit delivered
• 70% electricity from renewable energy sources
• Zero product waste to landfill (timber)
• Less than 0.1% of plastic waste was sent to landfill

Social Achievements

• 25% reduction in Brambles Injury Frequency Rate (BIFR) from 2015 baseline
• > 30% of leadership positions held by women, including at Board and management level
• 0.8% of pre-tax profits donated to Better Communities programmes

Governance Achievements

• Implementation of a governance and control environment addressing modern slavery, as required by the UK Modern Slavery Act

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to Covid-19 pandemic
• Difficulty recycling legacy end-of-life Pallecon product due to steel reinforcement
• Timber supply security and continuity due to climate change

Mitigation Strategies

• Global pandemic taskforce to protect employees and ensure customer needs were met
• Engaging third-party subcontractors in zero product waste to landfill programme
• Strategic planning process considering climate-related risks to timber supply, including mitigations through procurement, supply chain, and asset efficiency programs

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Commitment to sourcing sustainable wood; embedding sustainable sourcing objectives against relevant roles, linked to remuneration; consistent and transparent measurement, including external assurance and public reporting

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events impacting supply chain

Transition Risks

• Price on carbon; market shifts

Opportunities

• Low-carbon, circular business model; supply chain resilience; transport collaboration solutions

Reporting Standards

Frameworks Used: GRI, TCFD, UNGC, UN Sustainable Development Goals (SDGs)

Certifications: Null

Third-party Assurance: KPMG Limited

UN Sustainable Development Goals

• SDG 2
• SDG 4
• SDG 6
• SDG 7
• SDG 8
• SDG 9
• SDG 10
• SDG 12
• SDG 13
• SDG 15
• SDG 16
• SDG 17

Various initiatives contribute to these goals as detailed throughout the report.

Sustainable Products & Innovation

• Q+ wheeled display platform (100% upcycled plastic)

Awards & Recognition

• A rating in Circulytics™
• Platinum recognition in EcoVadis assessment (CHEP Canada)

Environmental Metrics

ESG Focus Areas

• Climate change impacts
• Sustainable (business) growth
• Zero Harm
• Move to climate-neutral circular economy
• Overuse of the world’s resources (including raw materials)
• Learning and development
• Transparency and Corporate governance (including anti-corruption and bribery)
• Customer collaboration and benefits of share and reuse model to customers
• Social impact of the value chain including, Labour standards
• Work/life balance
• Environmental impacts of direct operations

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Risk-based due diligence for new suppliers
• Supplier Acknowledgment Form (SAF)
• Supplier Policy
• Updated global procurement policy

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4, SASB

Certifications: Null

Third-party Assurance: KPMG

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Dow Jones Sustainability World Index
• Dow Jones Sustainability Asia-Pacific Index
• Dow Jones Sustainability Australia Index
• FTSE4Good Index Series

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Maintained 100% sourcing from certified sustainable forests
• Increased sustainable Chain-of-Custody by three points to 72%
• Achieved a 4.52% emissions reduction (versus FY20) for its science-based targets across its value chain (Scopes 1, 2 and 3)
• Helped customers achieve savings of 2.5 million metric tonnes of CO2, 4,470 megalitres of water, 3.2 million cubic metres of wood, 3.1 million trees, and 1.5 million tonnes of waste.

Social Achievements

• 33% of management roles are now held by women
• Independently rated as a Top Employer® in 21 countries and across five continents
• Global collaboration with food banks helped more than 16 million people in need

Governance Achievements

• Collaboration with 370 customers during the year across a range of more than 1,400 initiatives

Climate Goals & Targets

Environmental Challenges

• Global supply chain disruptions and scarcity of lumber supply

Mitigation Strategies

• Maintained 100% sourcing from certified sustainable forests despite challenges

Supply Chain Management

Responsible Procurement

• 100% sourcing from certified sustainable forests

Climate-Related Risks & Opportunities

Awards & Recognition

• Second most sustainable company in its industry category (Dow Jones Sustainability World Index)
• 10th in Corporate Knights' Global 100 list
• AAA rating from MSCI
• A- rating from CDP Forests submission
• A- rating in Ellen MacArthur Foundation’s Circulytics
• Terra Carta Seal recipient

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Enabled the sustainable growth of an additional 3.85 million trees.
• Saved ~10 million pallets through recovery and remanufacturing.
• Launched a new platform made from 100% post-consumer plastic and 13 next-generation platforms with recycled content.
• Achieved a 5.2% reduction of greenhouse gas emission across the entire value chain (Scopes 1, 2 and 3) against FY22 and 7.7% from FY20 baseline, while maintaining carbon neutrality across operations (Scopes 1 and 2).

Social Achievements

• Connected livelihoods with reforestation projects (one new forestry role created for every 10 hectares of reforestation and one skilled forest engineer for every 500 hectares).
• Increased gender diversity: women now represent 45.5% of board roles, 36.3% of leadership roles and 8.3% of service centre roles.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• New platform made from 100% post-consumer plastic and 13 next-generation platforms with recycled content

Awards & Recognition

• 1st in its industry category in the Dow Jones Sustainability Index
• Third most sustainable company in the world in Corporate Knights’ Global 100 list
• A rating in fourth consecutive Circulytics assessment
• A list status from CDP for action on Forests and Climate
• Maximum MSCI AAA rating
• Inclusion on the Bloomberg Gender Equality Index
• Global Top Employer recognition and Top Employer status in four regions and 25 countries

Environmental Metrics

ESG Focus Areas

• Sustainable (business) growth
• Zero harm
• Work/life balance
• Transparency and corporate governance (including anti-corruption and bribery)
• Learning and development
• Climate change impacts
• Move to climate-neutral circular economy
• Nature and biodiversity connection
• Overuse of the world’s resources (including raw materials)
• Environmental impact of direct operations
• Social impact of value chain

Environmental Achievements

• Reduced carbon emissions through various initiatives (quantified data not explicitly provided in the report)
• Increased sustainably sourced timber (100% target maintained)
• Enabled the sustainable growth of two trees for every tree used

Social Achievements

• Launched wellbeing initiatives (details not fully quantified)
• Implemented DEI initiatives (details not fully quantified)
• Improved employee engagement (measured through surveys, specific results not provided)
• Facilitated food redistribution through partnerships with food banks (number of people fed provided, but methodology varies by region)

Governance Achievements

• Implemented a Third-Party Due Diligence Program
• Established a Speak Up Policy
• Mandated regular ethics training for employees

Climate Goals & Targets

Environmental Challenges

• Data limitations and exclusions in various metrics
• Challenges in tracking ethics training completion for plant-based employees
• Variations in data collection and reporting across different regions

Mitigation Strategies

• Improvements in data gathering and processing to increase accuracy
• Revised survey processes to improve response rates
• Transitioning to reporting using more physical data in Scope 3 calculations

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Policy
• Third-Party Due Diligence Program
• Supplier acknowledgment form (SAF)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards (with reference), SASB Standards (Containers & Packaging 2023, Forestry Management 2023, Waste Management 2023, Industrial Machinery & Goods 2023), IFRS S2 Climate-related Disclosures (with reference)

Certifications: Null

Third-party Assurance: KPMG

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Reusable pallets, crates, and containers

Awards & Recognition

• Top Employer Institute certifications

Environmental Metrics

ESG Focus Areas

• Climate Change
• Waste Reduction
• Forest Regeneration
• Diversity & Inclusion
• Safety

Environmental Achievements

• Reduced greenhouse gases across Scope 1, 2 and 3 emission sources by 5.2%
• Achieved carbon-neutral operations and 100% renewable electricity
• 100% sustainable sourcing of timber
• Enabled the sustainable growth of 3.85 million additional trees in CHEP South Africa
• Increased recycled or upcycled plastic in new closed-loop platforms to 20%

Social Achievements

• Reduced Brambles Injury Frequency Rate (BIFR) to 3.8 (24% improvement against FY21 baseline)
• Increased representation of women in leadership roles to 36%
• Achieved Top Employer status globally and across four regions and 25 countries
• People reached through communications, training and advocacy: 903,500 (Cumulative result since FY21)

Governance Achievements

• Exceeded FY25 target of 40% female representation on the Board
• Established a US$1.35 billion sustainability-linked revolving credit facility
• Issued a €500 million green bond

Climate Goals & Targets

Environmental Challenges

• Ongoing macroeconomic uncertainty and persistent cost pressures
• Inflationary pressures on raw materials (lumber, transport)
• Supply chain inefficiencies leading to increased cycle times, unauthorized pallet reuse, and higher loss rates
• Softening consumer demand and inventory optimization by retailers and manufacturers
• Geopolitical risks and potential trade barriers

Mitigation Strategies

• Pricing discipline to recover cost-to-serve increases
• Asset productivity initiatives resulting in ~10 million pallets recovered and salvaged
• Investments in technology and data analytics to improve asset control and efficiency
• Improved commercial terms
• Increased asset compensations
• Strategic planning and scenario planning
• Diversification of opportunities
• Enhanced focus on cash generation

Supply Chain Management

Responsible Procurement

• 100% sustainable sourcing of timber
• Supplier collaborations on decarbonization

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (flooding, bushfires)

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: TCFD, GRI, IR Framework, SASB

Third-party Assurance: KPMG

UN Sustainable Development Goals

• SDG 12
• SDG 13
• SDG 15

The report details how Brambles' initiatives contribute to these goals through its circular business model, decarbonization efforts, and forest regeneration programs.

Sustainable Products & Innovation

• Reusable plastic products made with upcycled post-consumer materials

Awards & Recognition

• Dow Jones Sustainability Index
• CDP Forests
• CDP Climate Change
• Global Top Employer

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circular Economy
• Supply Chain Resilience
• Sustainable Timber Sourcing

Environmental Achievements

• FY23 Scope 1, 2 and 3 GHG emissions decreased by 5.2% compared to FY22 (7.7% decrease on FY20 baseline).
• Maintained carbon-neutral position for own operations since June 2021.
• 100% of electricity used at service centers from renewable sources.
• Increased diversion of product waste from landfill.

Social Achievements

• Launched first Supplier Academy to introduce key suppliers to Brambles’ Sustainable Procurement Programme.
• Developed the Circularity Index to showcase the circular performance of its customers in CHEP Europe.

Governance Achievements

• Established a Global Decarbonisation Governance Framework in FY22.
• Integrated climate change risks and opportunities into its processes.
• Completed its first green bond finance offering, the first by an Australian company to be fully dedicated to the circular economy (€500 million).

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to COVID-19 pandemic and high demand for timber materials.
• Weather-related supply chain disruptions.
• Extreme weather events affecting transport and operations.
• Increased road transport activity due to multimodal lane disruptions in Australia.
• Increased transport needs in LATAM and IMETA regions due to product volume growth.

Mitigation Strategies

• Developed climate-related agility and resilience strategies.
• Initiated stress tests to evaluate network resilience against severe weather events.
• Developed a Timber Supply Climate Risk Tool to identify and mitigate risks in timber supply chains.
• Increased uptake of renewable electricity.
• Asset productivity initiatives to reduce capital expenditure and emissions.
• Increased multimodal activity in the US and Europe to reduce transport emissions.
• Supplier engagement to enhance supply chain continuity.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainable Procurement Programme
• Embedding climate-related considerations into procurement processes
• Supplier sustainability survey (CHEP Europe)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (floods, storms, fires, droughts)
• Impacts on forest assets and timber supply chains

Transition Risks

• Regulatory changes
• Market shifts towards low-carbon solutions

Opportunities

• Low-carbon circular business model
• Development of energy-efficient products and services
• Increased demand for sustainable supply chain solutions

Reporting Standards

Frameworks Used: TCFD

Certifications: SBTi (Science Based Targets)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Products designed for reuse with recycled content

Awards & Recognition

• Not disclosed