Climate Change Data

Environmental Metrics

ESG Focus Areas

• Business conduct/code of ethics
• Employees
• Health & safety
• Environment/climate change
• Community
• Suppliers

Environmental Achievements

• Reduced Scope 1 carbon emissions by 6% from 2014.
• Reduced total Scope 1 & 2 emissions by 24% versus 2010 baseline data.
• Reduced accident severity rate by 16%.

Social Achievements

• Increased gender diversity at senior management level to 11% (2014: 10%).
• Increased charity donations to £631,000 (2014: £572,000).
• Conducted 382 Asian supplier CR audits (2014: 323).

Governance Achievements

• Refreshed whistle-blowing programme and renewed corporate responsibility training for all relevant employees.
• Completed a further risk assessment of the supply chain with regard to social issues.
• Undertook a pilot project for closed-loop recycling.

Climate Goals & Targets

Environmental Challenges

• Challenging macroeconomic conditions in Latin America and Australasia.
• Difficult market conditions affecting some sectors served.
• Deflationary pressures caused by price declines of plastic resin-based products.
• Increased competition in UK & Ireland.
• Customer consolidation in the food processor sector.
• Pressure on margins due to challenging macroeconomic conditions and currency weakness in Latin America and Australasia.

Mitigation Strategies

• Focus on reducing operating costs and managing margins.
• Investment in new high-tech distribution facilities.
• Continued use of ‘Think Big’ marketing campaign.
• Investment in additional Environment, Health & Safety management resource.
• Implementation of safety improvement programmes.
• Price increases and changes in product mix to mitigate exchange rate impact.
• Consolidating facilities and making structural changes to reorganise the business.

Supply Chain Management

Supplier Audits: 382 audits/assessments in Asia

Responsible Procurement

• Working with key suppliers to encourage them to meet Bunzl’s CR standards.
• Ensuring all suppliers meet internationally recognised minimum requirements for workers’ welfare and conditions of employment.

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Earthwise Bag Company (reusable bags)
• Clarity vacuum pouches, shrink bags and bin liners
• ‘Grab & steam’ product (microwavable cooking bag)
• ‘OneSAFE’ single-use glove dispensing system

Environmental Metrics

ESG Focus Areas

• Environment
• Health & Safety
• Social
• Business Conduct/Code of Ethics
• Community

Environmental Achievements

• 38% reduction in emissions versus 2010 baseline data (Scope 1 & 2)
• 26% reduction in Scope 2 emissions versus 2010 baseline data
• 31% reduction in accident severity rate

Social Achievements

• 82% employee survey response rate, 76% engagement score
• Increased focus on employee safety and wellbeing
• £712,000 donated to charitable causes

Governance Achievements

• Full compliance with UK Corporate Governance Code
• Rigorous assessment of supply chain social risks
• Established whistleblowing program ('Speak Up')

Climate Goals & Targets

Environmental Challenges

• Subdued organic growth due to customer losses and price declines on plastic products
• Challenging macroeconomic conditions in some regions (Latin America, Australasia)
• Downturn in oil and gas industry impacting safety sector
• Account loss in food retail business (UK & Ireland)

Mitigation Strategies

• Cost reduction measures
• New business wins and abatement of price declines
• Restructuring of safety business (Brazil)
• Restructuring of food retail business (UK & Ireland)
• Investment in e-commerce and telesales capabilities (France)
• Development and launch of new online B2B platform (Brazil)
• Transfer to third party carriers for greater flexibility and efficiency (Australasia)
• Implementation of category management programs (North America)
• Continued investment in IT systems and digital projects
• Sharing of best practice across the Group

Supply Chain Management

Supplier Audits: 449

Responsible Procurement

• Responsible sourcing
• CR audits of key Asian suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions

Sustainable Products & Innovation

• Reusable bags (Earthwise Bag acquisition)

Awards & Recognition

• FTSE4Good listing

Environmental Metrics

ESG Focus Areas

• Business conduct/code of ethics
• Supply chain
• Employees
• Health & safety
• Environment/climate change
• Community
• Customers

Environmental Achievements

• Scope 1 carbon emissions down 2% at constant exchange rates (up 1% at actual exchange rates) primarily due to fuel efficiency improvements
• Scope 2 carbon emissions down 5% at constant exchange rates (down 3% at actual exchange rates) from the continued implementation of low energy lighting and also impacted by the application of updated emission factors for electricity
• Fuel usage down 6% at constant exchange rates (down 3% at actual exchange rates) driven by continued fuel efficiency improvements

Social Achievements

• Overall employee engagement score was 74%, significantly above the relevant external benchmarks
• Continued to promote women’s development and training across the Group
• Significant donations were made to Macmillan Cancer Care and St John Ambulance

Governance Achievements

• Company has been fully compliant with all of the relevant principles and provisions set out in the 2016 version of the Code
• The Board concluded that both it and its Committees continue to operate effectively
• The Board considered whether the 2018 Annual Report, taken as a whole, was fair, balanced and understandable and provided sufficient information to enable the reader to assess the Group’s position and performance, business model and strategy

Climate Goals & Targets

Environmental Challenges

• Variable macroeconomic and market conditions across the countries and sectors in which we operate
• Challenging market conditions in the UK due to political and economic uncertainty
• Inflationary pressures on operating costs
• Increased employee turnover and shorter job tenures leading to higher workplace injury risk
• Reduction in demand for certain single-use plastic products due to legislation and consumer awareness

Mitigation Strategies

• Geographic and market sector diversification
• High service levels and close contact with customers
• Strong relationships with a variety of suppliers
• More focused and streamlined organisation structure
• Improved new employee onboarding programmes
• New road safety training programmes
• Providing customers with more sustainable solutions

Supply Chain Management

Supplier Audits: 539/year

Responsible Procurement

• Supplier code of conduct
• Regular audits of key suppliers
• Focus on sustainably sourced raw materials
• Promoting sustainable products

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions affecting facilities or employee attendance

Transition Risks

• Legislation discouraging single-use plastic products

Opportunities

• Providing customers with more sustainable solutions

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol

Certifications: ISO 14001

Third-party Assurance: PricewaterhouseCoopers LLP

Sustainable Products & Innovation

• Earthwise reusable shopping bags
• Compostable coffee cups
• Recycled PET cups
• PLA food containers
• Paper-based food packaging

Awards & Recognition

• FTSE4Good listing

Environmental Metrics

ESG Focus Areas

• Sustainability
• Single-use plastics
• Employee well-being
• Supplier responsibility
• Climate change

Environmental Achievements

• Scope 1 carbon emissions down 4% at constant exchange rates (down 6% at actual exchange rates)
• Scope 2 carbon emissions down 10% at constant exchange rates (down 11% at actual exchange rates)
• Fuel usage down 2% at constant exchange rates (down 6% at actual exchange rates)
• Completed 11 LED retrofit projects in North America resulting in savings of 1.9 million kWh annually
• Increased recycling rates to approximately 63%

Social Achievements

• Launched new Senior Leadership Programme
• Launched Inspiring Women in Bunzl network
• Improved safety onboarding programmes
• Implemented a new online Environmental Health and Safety (EHS) management system in North America
• Supported various charity runs raising money for charities

Governance Achievements

• Developed a new sustainability framework
• Revised and reissued business code of conduct
• Introduced a new way to report concerns through an independent organisation
• Improved accident recording standards

Climate Goals & Targets

Environmental Challenges

• Competitive pressures
• Product cost deflation
• Cost inflation
• Inability to make further acquisitions
• Unsuccessful acquisition integration
• Sustainability driven market changes
• Cyber security failure
• Availability of funding
• Currency translation
• Increase in taxation

Mitigation Strategies

• Geographic and market sector diversification
• High service levels and close contact with customers
• Strong relationships with suppliers
• Experience in sourcing and selling products
• Focus on own brand products
• Productivity improvements and efficiency measures
• Diversified sourcing from multiple suppliers
• Forward purchasing of foreign currencies
• Passing on price increases to customers
• Large acquisition database
• Strong track record of successful acquisitions
• Decentralised management structure
• Detailed pre-acquisition due diligence
• Recruitment and retention of high-quality management
• Providing customers with advice about alternative products
• Strong relationships with suppliers
• High service levels and close contact with customers
• Improving information security policies and controls
• Cyber security awareness campaigns
• IT disaster recovery and incident management plans
• Arranging borrowings from different sources
• Monitoring net debt and forecast cash flows
• Reporting results at constant exchange rates
• Borrowings denominated in multiple currencies
• Oversight of tax strategy by the Board
• Efficient tax planning and compliance
• Monitoring international developments in tax law

Supply Chain Management

Supplier Audits: 707/year

Responsible Procurement

• Supplier code of conduct
• Regular audits of direct suppliers in Asia

Climate-Related Risks & Opportunities

Physical Risks

• Increased intensity of storms, heatwaves, higher average operating temperatures

Transition Risks

• New or strengthened carbon reduction commitments

Reporting Standards

Frameworks Used: FTSE4Good, CDP

Certifications: ISO 14001

Third-party Assurance: PricewaterhouseCoopers LLP

Sustainable Products & Innovation

• Innovative bag made entirely from paper
• Compostable bags

Environmental Metrics

ESG Focus Areas

• Responsible supply chains
• Investing in a diverse workforce
• Taking action on climate change
• Providing sustainable solutions

Environmental Achievements

• Carbon efficiency improved by more than 50% over the last 10 years.
• Total amount of renewable electricity purchased increased to 15% in 2020.
• 16 LED retrofit projects in North America completed, resulting in savings of 5.5 million kWh annually.
• 8% reduction in miles driven in 13 locations where a dynamic routing system was implemented.
• Bunzl Australasia commenced transitioning their company vehicle fleet to more fuel-efficient models, resulting in a projected 24% reduction in overall fleet carbon emissions.
• Over 39 million Sustain products sold in Australia and New Zealand market, replacing 31 million existing single-use plastic items.

Social Achievements

• Doubled the number of women in UK & Ireland management teams over 18 months.
• Created a new Senior Director of Diversity and Inclusion role in North America.
• Increased female representation on the Board from 28.5% to 37.5% and on the Executive Committee to 40%.
• Launched employee survey with ethnicity analysis in North America, showing high employee engagement.
• Supported local communities with PPE donations, mask provision, lunchbox deliveries, and other initiatives during the Covid-19 pandemic.
• Launched a Global Employer Brand campaign featuring Bunzl ambassadors.

Governance Achievements

• Established a new governance structure for sustainability, including a Group Sustainability Committee, EHS Committee, and Supply Chain Committee.
• Sustainability discussed at four Board meetings in 2020.
• Launched Verive, a new own brand range of sustainable products in Europe.

Climate Goals & Targets

Environmental Challenges

• Under-representation of women and minorities in leadership roles.
• Need to reduce the environmental impact of vehicle fleets and supply chains.
• Need to address the challenges of plastic pollution and transition to a circular economy.
• Potential climate-related risks to Bunzl's future financial performance.

Mitigation Strategies

• Implementing diversity and inclusion initiatives, including setting targets and monitoring frameworks.
• Trialling biofuel in vehicle fleets, implementing dynamic routing systems, and transitioning to fuel-efficient models.
• Launching sustainable product ranges, working with customers and suppliers on sustainable packaging, and supporting the development of waste management infrastructure.
• Undertaking climate-related risk assessments and developing strategies to manage these impacts.

Supply Chain Management

Supplier Audits: 680 in Asia in 2020 (98% coverage)

Responsible Procurement

• Ethical sourcing principles, supplier audits, remediation efforts, and termination of relationships with non-compliant suppliers.
• Commitment to purchasing responsibly sourced wood fibre products.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Provision of environmentally friendly products and sustainability expertise to customers.

Reporting Standards

Frameworks Used: TCFD

Certifications: FSC®, PEFC™

UN Sustainable Development Goals

• SDG 8
• SDG 13
• SDG 12
• SDG 5
• SDG 10

Detailed explanations of Bunzl's contribution to each SDG are provided in the report.

Sustainable Products & Innovation

• Verive own brand range of sustainable products
• Sustain and Revive own brand product ranges in Australia and New Zealand
• Reusable bag made from ocean-bound plastic
• Reusable and infinitely recyclable aluminium cup
• Lightweight reusable stainless-steel cutlery
• Washable labels for plastic clamshell packaging

Awards & Recognition

• Honorable mention in Fast Company’s 2020 World Changing Ideas Awards for Ball Aluminum Cup™

Environmental Metrics

ESG Focus Areas

• Responsible supply chains
• Investing in our people and a diverse workforce
• Taking further action on climate change
• Providing tailored alternative solutions

Environmental Achievements

• 12% annual reduction in carbon emissions relative to revenue
• 14% renewable energy procurement
• Group electricity usage reduced by 4% through energy efficiency projects
• 73% of all food containers sold made from recyclable, compostable, renewable or reusable materials
• 41% of consumable products facing regulation transitioned to alternative materials
• 42% of all bags sold were paper, compostable or reusable

Social Achievements

• 754 suppliers audited; 77 identified needing improvement; 56 completed remediation; 11 in progress; 10 terminated
• 86% employee engagement index score
• 40% female leaders on the Board and Executive Committee in 2021
• Increased representation of women in senior leadership roles in UK & Ireland from 13% to 22%
• Launched ‘Diversity, Equality & Inclusion’ program in North America and ‘Inspiring Ethnicity in Bunzl’ group in the UK & Ireland

Governance Achievements

• Independent external review of auditing standards benchmarking against SMETA Checklist
• Partnership with NGO Stop the Traffik to assess modern slavery risks
• Joined the Responsible Labor Initiative (RLI)

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the pandemic
• Climate change impacts on operations, distribution, and supply chain
• Transitioning customers away from single-use plastics while maintaining product functionality and hygiene

Mitigation Strategies

• Used remote auditing tools during pandemic restrictions
• Set new long-term carbon reduction targets aligned with climate science
• Joined UN’s Race to Zero initiative and committed to Business Ambition for 1.5°C
• Transitioning to low and zero-carbon vehicles and alternative fuels
• Continuing energy efficiency measures in warehouses
• Increasing renewable energy procurement
• Implementing efficient routing systems for vehicles
• Working with customers to find alternative packaging and products

Supply Chain Management

Supplier Audits: 754 in 2021

Responsible Procurement

• Supplier Code of Conduct
• Auditing process to ensure ethical standards and product quality
• Remediation efforts for non-conformities
• Termination of relationships with suppliers failing to meet standards

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Provision of environmentally friendly products and sustainability expertise to customers

Reporting Standards

Frameworks Used: TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Own-brand alternative products
• Products made from recycled materials

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Responsible supply chains
• Investing in a diverse workforce
• Taking action on climate change
• Providing tailored solutions

Environmental Achievements

• 24% improvement in emission intensity compared to 2019 baseline; 15% absolute emissions reduction since 2019.
• Scope 1 and 2 emissions reduction targets approved by the Science Based Targets initiative (SBTi) as consistent with the Paris Agreement.
• First detailed assessment of Group-wide Scope 3 carbon footprint completed.
• New science-based Scope 3 target set.

Social Achievements

• Percentage of women in leadership group increased to 21% (from 19% in 2021).
• In Continental Europe, the number of women in leadership roles increased to 30%.
• Accelerated diversity, equity, and inclusion agenda to support employee well-being, growth, and career progression.
• Partnership with WasteAid in South Africa to fund a twelve-week training program for waste collectors.

Governance Achievements

• Established a Board Sustainability Committee (BSC) in 2022.
• Established a new Environment & Climate Change Committee in 2023.
• Increased ethical audits by 23%.

Climate Goals & Targets

Environmental Challenges

• Under-representation of women in senior leadership roles.
• Climate change impacts on supply chains and operations (extreme weather events).
• Meeting increasingly stringent customer environmental targets.
• Navigating changing legislation related to single-use plastics and waste management.

Mitigation Strategies

• Implemented various diversity and inclusion programs, including a Women in Leadership program.
• Developed business continuity plans to ensure operational resilience to extreme weather.
• Developed carbon forecast tools to help customers reduce emissions from deliveries.
• Provided customers with advice, strategies, and reports to help them meet sustainability goals and comply with legislation.
• Expanded ethical audit program to include suppliers in high-risk regions and high-risk product commodities.

Supply Chain Management

Supplier Audits: 930 suppliers assessed in 2022

Responsible Procurement

• Ethical audits (including factory walkthroughs and employee interviews)
• Remediation efforts for non-compliant suppliers
• Termination of relationships with suppliers failing to make sufficient progress
• Partnership with Stop the Traffik NGO

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (hurricanes, wildfires)
• Resource shortages and price volatility of raw materials

Transition Risks

• Shifting customer expectations
• Environmental impacts of technology
• Changing market dynamics (e.g., carbon pricing)
• Increased regulatory pressure on fossil fuels

Opportunities

• Strengthened customer relationships
• Brand differentiation
• Emissions reductions
• Sourcing and supplying low-carbon products
• Acquiring businesses or supplying products that mitigate climate change impacts

Reporting Standards

Frameworks Used: Science Based Targets initiative (SBTi), Task Force on Climate-related Financial Disclosures (TCFD), Sustainability Accounting Standards Board (SASB)

Sustainable Products & Innovation

• Own brand packaging ranges made from alternative materials
• New paperboard tray made from sustainably sourced plant-based fiber

Awards & Recognition

• Australian Packaging Covenant Organisation ‘Our Packaging Future’ Award

Environmental Metrics

ESG Focus Areas

• Climate change
• Circular economy
• Responsible supply chains
• Investing in a diverse workforce

Environmental Achievements

• 18% reduction in absolute emissions since 2019
• 30% more carbon efficient since 2019
• 55% of packaging made from alternative materials in 2023
• 85% of Group revenue attributable to non-packaging products or packaging products better suited to a circular economy

Social Achievements

• 81% of spend in high risk regions from assessed and compliant suppliers (2022: 78%)
• 1,022 ethical audits completed (2022: 930)
• c.75% of our operating companies participating in our ‘Great Place to Work’ scheme in 2023 were accredited
• 22% senior leadership roles filled by women (+2% compared to 2022)

Governance Achievements

• Established a new Board Sustainability Committee in 2022
• Established a new Environment & Climate Change Committee in 2023
• Completed a double materiality assessment aligned with the European Sustainability Reporting Standards

Climate Goals & Targets

Environmental Challenges

• Revenue performance impacted by reducing benefit from inflation, volume loss in the North America foodservice redistribution business and some post-pandemic related normalisation trends
• Product cost deflation in the second half of 2023, particularly in North America
• High property cost inflation linked to lease renewals
• Elevated number of customer tenders following a period of reduced activity
• Supply chain disruptions due to extreme weather events (e.g., flooding in California)

Mitigation Strategies

• Good margin management initiatives (increasing penetration of own brands, higher margin acquisitions, operational efficiencies, inventory driven one-off benefits)
• Focus on acquiring businesses with higher margins than Group average
• Continued strategic focus on operational efficiencies (warehouse relocations and consolidations, investments in IT systems and automation)
• Successful implementation of product cost driven selling price increases
• Strong relationships with a variety of different suppliers
• Forward purchasing of foreign currencies to reduce the impact of short term currency volatility
• Business continuity planning to ensure continued service to customers in case of weather-related disruptions

Supply Chain Management

Supplier Audits: 1,022/year

Responsible Procurement

• Supplier Code of Conduct
• Ethical sourcing policy
• Industry-leading ethical auditing program
• Science-based targets for key suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events disrupting supply chain and operations

Transition Risks

• Shifting customer expectations
• Environmental impacts of technology
• Changing market dynamics
• Carbon pricing

Opportunities

• Development of energy-efficient products and services
• Transition to alternative materials
• Improved supply chain resilience

Reporting Standards

Frameworks Used: TCFD, SBTi, ESRS

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 8 (Decent Work and Economic Growth)
• Goal 10 (Reduced Inequalities)

Bunzl's initiatives contribute to these goals through emissions reductions, sustainable product development, responsible sourcing, workforce diversity, and community investment.

Sustainable Products & Innovation

• rPET EcoSystems items
• Cleanline Eco
• Verive reusable packaging
• GRS certified recycled-content polyester vests
• Sustain OzHarvest Collection compostable cups

Awards & Recognition

• WorldStar Winner for Sustain OzHarvest Collection