ABCE Dubai Tetra Pak Driving Sustainability

Circular Economy & Carton Equity

Rodney Reynders

Internal

Tetra Pak at a glance

Litres of products sold in Tetra Pak packages in 2016

77.8billion

Employees worldwide

24,100 Countries where Tetra Pak packages are available

175+

Tetra Pak packages sold in 2016

188billion

Net sales in 2016

11.4€ billion

Research & development centres

6

Internal

The accelerators of change

Overpopulation Resource scarcity

Climate change

Global

drivers

Business

challenges

Gender inequality

Talent gap Consumer expectations

Consumer opinions, attitudes and behaviours

Internal Consumer Insights / May 2017

Internal

/ 5

Consumers view

Country coverage

2005 – 2007 – 2009 2011 2013 – 2015 2017

6,500 Consumers

13 Markets

NCSA

•Brazil

•USA

SAEAO

•Japan

•Thailand

GC

•China

Countries:

ECA

•France

•Germany

•Netherlands

•Russia

•Sweden

GMEA

•Saudi Arabia

•South Africa

•Turkey

Internal

Expected to be an even more relevant topic in the future

Environment is top of mind for consumers

Of consumers believe that the focus on

environmental issues will increase in the

coming 5 years

How much do you think the focus on environmental issues (e.g. climate change, environmental pollution) will increase/decrease

in the coming five years? (Prompted, Single choice)

DEVELOPING MARKETS

DEVELOPED MARKETS

*Top 2 boxes (Increase a lot + Increase somewhat)

TOTAL %

Base: Consumers (n=6543)

Increase a lot Increase somewhat No change Decrease somewhat Decrease a lot

Tetra Pak/2017-09-01 / 6

Internal

Food waste reduction is the top activity in developing countries

Recycling confirmed as the most frequent activity

Sorted and set aside waste for recycling

Reduced the amount of food/beverage wasted by me/my family

Purchased a product with an environmentally sound packaging

Considered environmental aspects when purchasing things

Avoided a particular product or brand for environmental reasons

Avoided a beverage in a plastic container for environmental reasons

Purchased an environmentally sound product, even if it costs more

Avoided a beverage in a carton container for environmental reasons

DEVELOPED

70%

45%

15%

15%

16%

10%

12%

7%

DEVELOPING

36%

41%

29%

25%

21%

21%

18%

15%

ENVIRONMENTAL ACTIVITIES - TOP BOX (% FREQUENTLY DONE)

Below is a list of activities. Thinking about the past year, please indicate which of the following actions you have

actually done or considered doing, or have not considered doing, using the below ranking: (Prompted, single per row)

95% Significance towards 2015 Base: Consumers (n=6543) Significant difference developed - developing

Tetra Pak/2017-09-01 / 7

Internal / 8

Laws and company reputation

Environment is very important in business strategy

[VALUE]%

[VALUE]%

[VALUE]%

[VALUE]%

It is very important

It is quite important

It is not very important

It is not at all important Mentions %

“New Directions and interests from the Country

and the laws in Saudi Arabia now urges to move

towards the Environment - The great concerns from

the companies (Factories) for making food products

more safety and the safety towards environment. -

General directions towards the Environment in

Saudi Arabia at the moment.”

“Marketing impact,

Community support. Our

reputation and Proof of

presence.”

“The environmental pollution

concerns our factory

production, the products and

the environment

surroundings.”

Importance of environment to business strategy Why is it important?

Q2 (ONE CODE). In your opinion, how important is environment in your business strategy? Would you say that it is:

Q2a (OPEN) Why do you think environment is important?

BASE: n=8

Consumer Insights / June 2017

Internal

Qualitative

Internal

Our commitment to sustainability is deep-rooted

Our founder, Ruben Rausing,

was a firm believer that a package

should save more than it costs.

When food is packaged, it can be

transported and made available to

consumers everywhere in a safe,

efficient and affordable way.

Internal

A structured approach on sustainability reporting

Step 1 Step 2

GRI G4 Sustainability

Reporting Guidelines

Internal

Our sustainability approach

Initials/YYYY-MM-DD

Security Level

/ 11

Internal

We work with industry organizations, non-governmental and international organizations and several initiatives

/ 12

Good governance is our fundamental

framework for achieving all our sustainability targets

Internal

Our Vision for Packaging

in a Circular Economy:

Renewable materials,

Sustainably sourced and

Recycled

Security Level

Internal

SDG’s – Sustainable Development Goals

IG/2017-05-09

Internal

/ 14

Internal

Sustainable Development Goals

Goals Aimed at ending

poverty, protecting the

planet and ensuring

prosperity for all.

They provide a common

language between the public and

private sectors

Can be a process through

which we identify gaps and

opportunities

169

17

Targets

Internal

/ 15 IG/2016-12-05

Customer focus

Internal

Our customers have ambitious sustainability agendas

/ 17

Internal

Select common sustainability themes among our customers

Initials/YYYY-MM-DD

THEME Arla

The Coca-Cola

Company Danone

Friesland

Campina Nestle Pepsico Unilever

Food availability

Food safety & quality

Diversity / Fairness / Gender balance

Occupational health & safety

Talent / Development

Communities

Climate impact / Reduction of GHG

emissions / Renewable electricity

Recycling

Sustainable, renewable packaging

Responsible sourcing

Waste reduction

Water consumption

Part

ners

hip

acro

ss a

rea

s

Internal

Sustainability, Recycling, FSC awareness activities

Turkey - Customer Environment Projects

Pınar FSC

Communication

Dimes Dönüşüm

Doğamızda Project

Sütaş Sustainability

Movie

- FSC kit with pine seed, Pınar

FSC labelled pack milk and, an

FSC letter

- Sent to 450 KOLs (Journalists,

influencers, industry leaders)

- A press bulletin is released

- Recycling campaign on

instagram with 20 selected

bloggers (2,261,000 followers)

- Scope: Recycling, Seperate

Collection messages, Pictures

- Posts in March and May, 2017

- Joint sustainability

communication movie

- Messages: Food Sustainability,

Sustainable Sourcing,

Sustainability Awareness,

Recyclability of cartons

- Will feature on social media,

events, congresses, exhibitions

- Timeline: Aug/Sep 2017

/ 19

Our sustainability work

Internal

Protecting food

60+ Years of expertise in

food safety and quality

67 million Children received milk or other nutritious

beverages in Tetra Pak packagers in 2016

50+ Years supporting school feeding

and nutrition programmes

Working with our customers and partners to make food

safe and available everywhere through our innovative

and market-leading food processing and packaging

solutions.

Top material aspects:

• Food availability

• Customer health and safety

• Food waste

Sustainable Development Goals we can impact:

Internal

How we contribute to our customers’ sustainability agendas

► We implement a Food safety policy for

the highest standards of safety and full

traceability

► Our processing and packaging

solutions: ‒ Protect food

‒ Keep it from being spilled or spoilt

‒ Prolong its lifetime

► We provide practical support

in school feeding

programmes

► We help build sustainable

value chains by supporting

smallholder farmers and

connecting our customers to

high-quality milk.

► Our Deeper in the Pyramid

strategy tackles food

affordability

Customers are

interested in

► Reducing food loss and waste is one

of our fundamental principles

Internal

Protecting people

Safeguarding and enabling our people and supporting

communities where we operate.

24,100 Employees worldwide

98%

Manufacturing site compliance to global occupational

health and safety standard OHSAS 18001

600,000 Learning hours taken up by our

employees

Top material aspects:

• Occupational health and safety

Sustainable Development Goals we can impact:

Internal

How we contribute to our customers’ sustainability agendas

Customers are

interested in ► We provide practical support in

school feeding programmes

► We support educational

and awareness campaigns

► We contribute to specific

appeals for support through

donations and emergency

relief

► We made improvements to our

OHS management system

► The Safety And Me programme

was launched to provide a

positive behavior change model

for factory working

► We established

a gender advisory panel

► In 2016, our employees

participated in over

600,000 learning hours

► Our Leadership

Acceleration Program

develops the next

generation of senior

managers

► The global

mentoring program is

aimed at employees

with leadership potential

Internal

Protecting futures Supporting the sustainable future of our planet and the

long-term success of our customers

Top material aspects:

• Supplier environmental assessment, supplier water use,

packaging design and resource use, packaging

renewability, energy use and greenhouse gas emissions,

machines and equipment, waste generation, water use,

packaging recycling and packaging climate impact

Sustainable Development Goals we can impact:

First

Aseptic package with highest

class Vinçotte certification for

renewable materials (2016)

100%

of carton paperboard came

from FSC™ certified and other

controlled sources

16%

Reduction in GHG emissions,

despite 19% more packages

sold in 2016 (2010 baseline)

100%

Commitment to renewable

electricity by 2030 via RE100

Internal

► 2020 climate goal /

Science Based Targets

► RE100 commitment

► Carton CO2 calculator

► Our cartons are made

over ¾ out of paperboard,

a renewable resource

► Tetra Rex® bio-based;

world’s first fully

renewable package

► Tetra Brik® Aseptic 1000

Edge – world’s aseptic

package to receive highest

Vinçotte certification for

renewable content

► We help increase consumer

awareness

► We support collection and sorting

infrastructure

► We strive to expand market

opportunities for recycled materials

and boost business opportunities

for recycling entrepreneurs

► Supplier Code of Conduct

for all suppliers

► Sedex, Ecovadis memberships

► Responsible sourcing of

paperboard, polymers and

aluminium

► 100% of our carton paperboard

comes from FSC™ certified and

other controlled sources

How we contribute to our customers’ sustainability agendas

Customers are

interested in

► Efficient processing and

packaging solutions

► Value-adding services

Internal

Conclusions

Sustainability

Global and industry trends and challenges are shaping the business

environment and giving rise to sustainability. Sustainability means thinking

and acting proactively to protect the environment and secure

resources for an ever-growing population. On a societal level, it means

safeguarding and enabling people.

Our customers

Our customers have ambitious sustainability agendas and goals of their own. There are

a lot of common areas between our customers’ and our own sustainability work.

Our approach

Our approach to sustainability is shaped by our brand promise PROTECTS WHAT’S

GOOD™. We bring this promise to life by protecting food, people and futures. It

encompasses the entire value chain.

Our competitive advantage

Our sustainability work is extensive and offers us a competitive advantage. By linking our

sustainability work to that of our customers’ we are directly contributing to their goals

and are offering added value to both their business and Tetra Pak’s.

Internal

http://www.tetrapak.com/sustainability