Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable Materials and Solutions
• Safe & Fair Labor Practices
• Community Investment
• Responsibly Sourced Materials & Energy
• Zero Waste to Landfill
• Reduce Carbon Footprint

Environmental Achievements

• Reduced greenhouse gas emissions indexed to net sales by 4.8 percent compared to 2005 levels
• Reduced energy use indexed to net sales by 5 percent compared to 2005 levels
• Reduced amount of waste sent to landfill from 32 percent in 2010 to 20 percent in 2012
• Routed 68 percent of diverted waste to beneficial reuse, with 52 percent recycled and 16 percent used at waste-to-energy facilities

Social Achievements

• Attained an employee Recordable Incident Rate of 0.40 in 2011 and 0.50 in 2012 (compared to the U.S. manufacturing industry average of 4.4)
• Achieved zero injuries at 67 percent of owned and operated facilities in 2012
• Invested almost $2.2 million in emerging markets between 2010 and 2012 (more than tripling 2010 investment)
• Increased the number of Community Investment Teams from 3 to more than 30 between 2010 and 2012
• Filled almost 40% of open positions at the manager level and above with internal candidates – up from 17% in 2010

Governance Achievements

• Conducted more than 700 Avery Dennison® Greenprint assessments for use in product development and marketing efforts as of the end of 2012
• Launched responsible paper sourcing policy in 2013
• Employees registered for more than 42,000 online classes on topics ranging from conflicts of interest and gifts to information security

Climate Goals & Targets

Environmental Challenges

• Greenhouse gas emissions were up slightly due to increased manufacturing in Asia, which uses electricity more heavily sourced from coal
• Need to reach 15 percent reduction goal in greenhouse gas emissions by 2015
• Need to divert 85 percent of manufacturing waste from landfills by 2015

Mitigation Strategies

• Organized large-scale “kaizen” initiatives designed to reengineer energy-intensive processes
• Reduced heat curing requirements in heat printing processes by using faster-drying inks
• Investigating renewable energy alternatives (purchased RECs)
• Implemented several programs to reduce waste, facilitate recycling, and divert waste streams into other beneficial uses
• Partnered with suppliers to recycle release liners
• Launched a North American matrix recycling tool

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Global Supplier Standards (based on UN Declaration of Human Rights and ILO Conventions)
• Responsible Paper Procurement Policy

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes affecting input prices (electricity, natural gas)
• Increased customer attention on environmental performance of products

Opportunities

• Increased sales by developing products with lower carbon footprints

Reporting Standards

Frameworks Used: GRI G3.1

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• LightSmart Technology
• Global MDO label
• CleanFlake™ portfolio
• MultiCycle™
• FSC-certified facestocks
• Post-Consumer Waste (PCW) Paper Label Portfolio
• TurnLock™ Laminating System
• Recycled Plastic Fasteners
• Recycled Polyester Woven Labels
• RFID- SmartFace™
• Agility High Definition (AGHD) Heat Transfers

Awards & Recognition

• Trophées de l’innovation
• Pack Experts’ Innovation Award
• Society of Plastic Engineers Environmental Award
• Koreastar, Asiastar, and Worldstar Packaging awards
• Label Industry Global Green Award

Environmental Metrics

ESG Focus Areas

• Greenhouse gas emissions
• Paper sourcing
• Waste management
• Chemical sourcing
• Film sourcing
• Sustainable products
• Workplace safety and diversity
• Transparency

Environmental Achievements

• Reduced absolute greenhouse gas emissions by 31.5% against the 2015 baseline.
• Reduced energy consumption by 4.4% between 2017 and 2019.
• 94% landfill-free waste disposal in 2019.
• Increased certified-claim paper to 89% of total paper procurement, with 79% FSC-certified.

Social Achievements

• Maintained a world-class Recordable Incident Rate of 0.23 in 2019.
• Improved Lost Time Incident Rate from 0.16 in 2017 to 0.12 in 2019.
• Increased percentage of women in management positions to 33% in 2018 (from 28% in 2013).

Governance Achievements

• Conducted environmental, health, and safety audits at 49 facilities between 2017 and 2019.
• Provided multiple online ethics trainings annually.

Climate Goals & Targets

Environmental Challenges

• Increased water usage in 2018 due to the acquisition of Yongle Tape Company.
• Falling short of the 40% women in leadership goal by 2018.

Mitigation Strategies

• Reduced water usage in Hebei operations by 15% year-over-year in 2019.
• Continuing to pursue the 40% women in leadership goal with a new target date of 2025.

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

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Waste Reduction
• Diversity & Inclusion
• Community Investment
• Supply Chain Responsibility

Environmental Achievements

• Reduced absolute GHG emissions by ~19% in 12 months through Q3 2020 compared to the same period in the prior year
• Diverted ~94% of solid waste from landfills and recycled ~67% of waste as of year-end 2020
• ~92% of total paper procured in 2020 was certified, with ~83% of facestocks Forest Stewardship Council®-certified
• ~97% of 2020 film volume conformed to LGM’s restricted substance list
• ~96% of 2020 chemical volume conformed to LGM’s restricted substance list

Social Achievements

• Increased female representation at the manager level and above by ~7% from the baseline year; level was 34% at year-end 2020
• Continued world-class safety record, with a recordable incident rate of 0.21 in 2020
• $10 million contribution to the Avery Dennison Foundation to significantly increase the scope and pace of its support of communities

Governance Achievements

• Enhanced transparency by providing greater ESG disclosures
• First ESG Download published in August 2020

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on underlying demand for products, foreign currency fluctuations, competitors' actions, and cost offsets
• Supply chain disruptions due to COVID-19 lockdowns
• Reduced demand for certain products due to the pandemic

Mitigation Strategies

• Implemented rigorous health and safety measures
• Adapted quickly to manage increased demand for essential materials
• Reallocated production volumes across the network
• Provided full pay to employees at closed facilities
• Extended compensation continuation in some regions
• Provided supplemental payments to frontline teams
• Launched a global employee assistance fund
• Mitigated supply chain risk through early procurement and resource sharing with suppliers

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Global supplier standards promoting ethical business practices

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: SASB, GRI, CDP Worldwide, UN Global Compact

Certifications: Forest Stewardship Council®

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Products enabling recyclability and waste reduction

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Education
• Women’s Empowerment
• Sustainability
• Diversity, Equity & Inclusion (DE&I)

Social Achievements

• Supported various community initiatives globally, focusing on education, women's empowerment, and health infrastructure.
• Launched 'Patched Together' initiative, donating proceeds to Doctors Without Borders.

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Education
• Sustainability
• Women's Empowerment
• Diversity, Equity & Inclusion
• Disaster Relief

Social Achievements

• Launched After-School Class program in China providing free tutoring and care for children of working parents.
• Partnered with Connecting Dreams Foundation in India to launch Project Transformation, sponsoring skills development for the transgender community.
• Supported Sri Lankan employees during an economic crisis by distributing food packs, solar panels, and e-bikes.
• Employees in Netherlands packed nearly 400 birthday boxes for families in need.
• US employees partnered with a local organization to provide aid to Afghan refugees.

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• climate change
• circular economy
• waste reduction
• diversity, equity and inclusion
• community investment

Environmental Achievements

• 63% cumulative GHG emissions reduction (as of Q3 2023)
• 79% waste recycled (as of Q3 2023)
• CleanFlake™ adhesive technology recognized by the Association of Plastic Recyclers for PET and HDPE recycling processes
• Increased market acceptance of linerless labeling, reducing label waste by 50% to 80%
• Next-generation CleanFlake™ technology enabling rigid plastic recycling
• Luxembourg manufacturing site reduced natural gas consumption by 20% per square meter in 100 days
• Several global manufacturing facilities cut gas consumption by 22% and electricity consumption by 13%
• Expanded onsite renewable energy generating capacity through solar installations and power purchase agreements

Social Achievements

• Inclusion Index: 85%
• Employee Engagement: 82%
• Females in manager level or above positions: 40%
• Avery Dennison Foundation grants in 72% of countries where we operate
• 95% incorporated employee volunteerism
• Invested nearly $1 million to increase education access
• Invested $1.3 million to support secure livelihoods
• ADF granted $1 million in 37 countries through its Granting Wishes program
• ADF matched $25,000 contributed by employees for earthquake and war relief

Governance Achievements

• Refreshed diverse slate standards to ensure a strong set of candidates with a variety of experiences, backgrounds and perspectives
• ADF supported organizations promoting DEI globally with grants totaling $395,000

Climate Goals & Targets

Environmental Challenges

• Lower volume driven primarily by inventory destocking
• Supply chain disruptions
• Higher employee-related costs
• Argentine peso remeasurement loss
• Growth investments
• Adasa litigation

Mitigation Strategies

• Effectively made adjustments, protected margins and carefully managed costs
• Implemented targeted price increases
• Benefits from productivity initiatives, including temporary cost-saving actions, material re-engineering and savings from restructuring actions
• Continued investment in high-value categories, particularly Intelligent Labels
• Restructuring actions to optimize European footprint

Supply Chain Management

Responsible Procurement

• Engaging suppliers to move toward deforestation-free future

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Increasing environmental standards and expectations
• Changes in consumer preferences and laws and regulations related to the use of plastics

Opportunities

• Development of energy-efficient products and sustainable solutions

Reporting Standards

Frameworks Used: CDP

Sustainable Products & Innovation

• CleanFlake™ adhesive technology
• Linerless labeling
• Next-generation CleanFlake™ technology
• Digital Care Label