2018 RB basis of preparation for sustainability performance indicators selected for independent assurance

Transcription

1 2018 RB basis f preparatin fr sustainability perfrmance indicatrs selected fr independent assurance 1 Our general reprting principles We have sught t ensure that: The reprted data accurately reflects ur perfrmance and serves the general needs f the reprt s users. The data is meaningful and cnsistent with the definitins, scpe and bundaries stated in these Reprting Criteria. Any specific material exclusins are stated and explained. We use cnsistent methdlgies year t year wherever pssible and unless therwise stated t allw fr sustainability perfrmance cmparisn ver time, any material changes in measurement methdlgies versus the previus reprting year are made clear. We are clear regarding the use f assumptins we make and regarding ur measurement and calculatin methds. We reprt transparently such that the reprt s users can have cnfidence in the integrity f the data and infrmatin we reprt. Uncertainty and estimates, assumptins & extraplatins Every effrt has been made t capture all relevant data glbally. Hwever, it is nt always feasible r practical t capture every single item f data acrss r relevant t ur glbal peratins, particularly in cnnectin with sme parts f the Scpe 3 elements f ur glbal prducts lifecycle carbn and water use ftprints which are utside f ur direct/indirect cntrl. Where we have made estimates, assumptins r extraplatins t cver such ccasins we make this clear in the reprt. Where it has been necessary t apply assumptins and extraplatins during calculatin f ur glbal prducts lifecycle carbn and water use ftprint (i.e. where apprpriate primary r secndary data surces have nt been available), infrmatin r data fr assumptins has been surced in a clear rder f pririty: e.g. seeking reputable publicly available data surces (e.g. IEA emissin factrs), then market research, befre general publicly available data. Where assumptins and extraplatins have been required, these have been applied in a cnservative manner. The same principle has been applied t the applicatin f emissin / water factrs fr calculatin f CO2e emissins and water use assciated with the manufacture f raw and packaging materials, and dispsal f waste. Where tw r mre factrs fr a material have been available and an uncertainty as t the crrect factr t apply has existed, the highest factr in terms f CO2e r litres per unit f material has typically been applied, t prevent underreprting. As a prcess f cntinuing imprvement, and in line with n-ging develpments f data availability n carbn and water ftprints f individual materials, cmpanies and prcesses fr example, the quality f the data used in the carbn, water use and water impact ftprint will by nature imprve further ging frward. Althugh verall it des cmprise the best infrmatin currently available, bth internally and externally, at the time f reprting. Restatement f reprted data We undertake cntinual, year-n-year imprvement in ur sustainability reprting prcesses and cntrls. Where it makes data and perfrmance trends between years mre cmparable, and/r n the basis that any variances in prir years are identified (e.g. errrs in prir year data), we restate that data in ur reprts, are transparent abut having dne s and the reasns that drve the change.

2 Reprting bundaries Our 2018 reprt prvides data and infrmatin fr the perid 1 January 2018 t 31 December 2018 acrss all Reckitt Benckiser Grup plc cmpanies glbally, as fllws: Envirnment: 55 manufacturing facilities, 11 stand-alne R&D centres and 6 warehuses ver which we had peratinal cntrl at the start f 2018; and, in terms f ur glbal prducts lifecycle carbn and water use ftprint, the Scpe 1, 2 & 3 greenhuse gas emissins in terms f carbn dixide equivalents (CO2e) and direct and indirect freshwater use (litres) and water impact (e litres) assciated with all stages f ur glbal prducts lifecycle ftprint, in line with the principles f PAS2050, the GHG Prtcl and the Water Ftprint Assessment Manual Health & Safety: 55 manufacturing facilities, 11 stand-alne R&D centres and 6 warehuses ver which we had peratinal cntrl fr ne r mre mnths during HR: all Grup cmpanies and facilities as at 31 December 2018, unless explicitly stated. Our emplyee and diversity figures are based n data fr 36,788 glbal Grup emplyees, which is 87% f the average number f peple RB emplys r cntracts with glbally. Ttal carbn ftprint and water impact In line with the methd changes identified fr ur 2014 numbers, it has nt been pssible t cllect and prcess data (e.g. litres used, sales vlumes) fr the full calendar year (1 January 2018 t 31 December 2018) in sufficient time fr inclusin in the 2018 Reprt. Where this is the case, actual data fr the perid 1 January 2018 t 30 September 2018 has been cllected and cmbined with frecast data fr the final quarter f 2018 t calculate ur prduct ftprint. This apprach is cnsistent with the apprach adpted in previus years. Ttal net revenue frm mre sustainable prducts We cntinue t reprt n a 12-mnth perid f net revenue. Fr 2018, this cvers 1 st Octber 2017 thrugh t 30 th September IFCN (Infant Frmula and Child Nutritin) net revenue remains excluded frm this metric as we have nt yet rlled ut the systems and prcesses t allw inclusin. This is due t ur 2018 fcus being n establishing the scpe 1-3 impacts fr this business t infrm which material aspects t cnsider fr IFCN prducts. The rule applied cncerning data frm new acquisitins/new facilities is as fllws: Envirnment: data is included fr the first full calendar year f RB wnership/cntrl (e.g. data frm a manufacturing facility purchased in Nvember is included frm 1 January f the fllwing year). Where a reductin target has been set in relatin t a baseline year, and data frm previus years r a baseline year is nt available fr IFCN, annual perfrmance data is presented excluding IFCN in rder t ensure year n year cmparisn with the baseline. In these cases, a separate entry fr the reprting year will prvide the ttal perfrmance data including IFCN data. Prduct: unless specified therwise, data is included fr the first full calendar year f RB wnership/cntrl (e.g. data frm a manufacturing facility purchased in Nvember is included frm 1 January f the fllwing year). Where a reductin target has been set in relatin t a baseline year, and data frm previus years r a baseline year is nt available fr IFCN, annual perfrmance data is presented excluding IFCN in rder t ensure year n year cmparisn with the baseline. In these cases, a separate entry fr the reprting year will prvide the ttal perfrmance data including IFCN data. 2 P age

3 Health & Safety: data is included frm the date f purchase (e.g. data frm a manufacturing facility purchased in Nvember is included frm the date f wnership (June)). HR and Diversity: data as held in the Cmpany s Human Resurces database n 31 December f the year being reprted is included (e.g. data frm a manufacturing facility purchased in Nvember is included). Scial metrics: data is included fr the first full calendar year f RB wnership/cntrl (e.g. data frm a manufacturing facility purchased in Nvember is included frm 1 January f the fllwing year). Ecnmic: all Grup cmpanies and facilities fr ur financial (calendar) year See Basis f Cnslidatin n page 143 f ur Annual Reprt and Financial Statements The rule applied cncerning data frm site dispsals/clsures is as fllws: Envirnment: data is included up until the last full mnth f RB wnership / cntrl, as far as practical (e.g. data frm a manufacturing facility sld in Nvember is included up t the end f Octber). Prduct: data is included up until the last full mnth f RB wnership / cntrl, as far as practical (e.g. data frm a manufacturing facility sld in Nvember is included up t the end f Octber). Health & Safety: data is included up until the date f sale / clsure, as far as practical (e.g. data frm a manufacturing facility sld in Nvember is included up until the date f sale). HR and Diversity: data, as held in ur Human Resurces database, n 31 December f the year being reprted is included (e.g. data frm a manufacturing facility sld in Nvember is nt included as at 31 December f that reprting year). Scial metrics: data is included up until the last full mnth f RB wnership / cntrl, as far as practical (e.g. data frm a manufacturing facility sld in Nvember is included up t the end f Octber). Ecnmic: all Grup cmpanies and facilities fr ur financial (calendar) year 2018 (see Basis f Cnslidatin n page 143 f ur Annual Reprt and Financial Statements 2018). 2 Reprting Specifics and Methdlgy 2.1 Envirnment (frm manufacturing, warehuses R&D and ffices where applicable) Parameter: Energy use at manufacturing and warehuse facilities Definitin: energy cnsumptin frm ur glbal manufacturing and warehuse facilities. Scpe: energy cnsumed within the calendar year at facilities under management cntrl f the Grup; including the energy cnsumed frm Cmbined Heat and Pwer (CHP) plants. Where RB wns and perates a CHP plant and surplus energy is sld back t the lcal r natinal grid, then nly the energy cnsumed by the manufacturing site is included, i.e. the energy returned t the grid is excluded. This is because RB s key perfrmance metric is the energy intensity f the manufacturing prcess. Units: gigajules (GJ). Methd: Energy data is cllected using Enabln, the Cmpany s EHS database. T ensure cnsistency this can be reprted in the same units as the inviced quantity. This is then cnverted t kwh using standard factrs. The final stage is cnversin t GJ. 3 P age

4 Surce: Data is taken frm n-site r third-party meter readings r inviced quantities. Cnsumer units are reprted by the sites t Grup using Enabln. Cnsumer units are measured at the site. The fllwing measurement methds have been identified (thugh mre methds may be in place): Autmatic scanning f labels n the prductin line. Cunting the number f cases at the end f the prductin line. Parameter: Greenhuse gas (GHG) emissins frm energy use in manufacturing, R&D, ffices and warehuse facilities Definitin: Greenhuse Gas (GHG) emissins arising frm energy cnsumptin at ur glbal manufacturing, R&D, ffices, and warehuse facilities, in carbn dixide equivalents (CO2e). Where, GHGs cmprise, in line with the GHG Prtcl Crprate Accunting and Reprting Standard (WRI & WBCSD, 2004), the six gases listed in the Kyt Prtcl (carbn dixide (CO2); methane (CH4); nitrus xide (N2O); hydrflurcarbns (HFCs); perflurcarbns (PFCs); and sulphur hexafluride (SF6). Scpe: Scpe 1 and Scpe 2 CO2e emissins frm energy cnsumptin within the calendar year at manufacturing, R&D, ffices and warehuse facilities under the management cntrl f the Grup. Scpe 2 emissins are reprted n bth a lcatin and market based apprach in line with the GHG Scpe 2 Guidance (WRI & WBCSD, 2015). The lcatin based apprach is as fllws: All grid electricity is cnverted t CO2e by applying natinal/state average electricity grid cnversin factrs relevant t the cuntries where we perate (i.e. IEA emissin factrs 2014). Any pwer r heat purchased directly thrugh a third-party CHP is cnverted t CO2e by applying the apprpriate cnversin rate supplied by the third-party. The market based apprach is as fllws: Fr peratins in markets where cntractual instruments are available, purchased renewable electricity, which is supprted by apprpriate evidence frm the energy prvider (i.e. renewable energy certificates, Guarantees f Origin r similar), and that meets the quality criteria utlined in the GHG Prtcl Scpe 2 Guidance, is cnverted t CO2e by applying cntractually specific emissin factrs All purchased electricity which is nt renewable r supprted by apprpriate evidence, is cnverted t CO2e by applying Residual Mix emissin factrs. Nn-renewable electricity which is purchased in cuntries where Residual Mix emissin factrs were nt available, is cnverted t CO2e by applying average natinal/state grid emissin factrs (i.e. IEA emissin factrs) fr the relevant cuntry. CO2e. Units: tnnes CO2e. 4 P age

5 Methd: calculated by multiplying the reprted energy quantities in kwh by the CO2e emissins cnversin factrs derived frm the mst recently currently available lcatin r market based surces utlined abve and lcal factrs where available. Surce: CO2e emissins are calculated in line with the WRI/WBCSD Greenhuse Gas Prtcl (GHG Prtcl) and GHG Prtcl Scpe 2 Guidance, except as discussed therwise abve. Cnversin factrs applied are surced directly, the UK Gvernment s DEFRA, Internatinal Energy Authrity (IEA), Reliable Disclsure Organizatin (RE-DISS) and Green -e Energy (US Reginal Residual Mix Rates). Parameter: Water use at manufacturing and warehuse facilities Definitin: water use at ur glbal manufacturing and warehuse facilities. Scpe: water used n-site, within the calendar year, inclusive f peratinal water cnsumptin, water included in ur prducts and dmestic water use at facilities under management cntrl f the Grup. Units: cubic metres. Methd: this is cllected using Enabln. The quantities can be reprted in units t suit the user and are autmatically cnverted int cubic metres. Surce: this is extracted frm internally managed databases derived frm direct meter readings r third-party meter readings and inviced quantities. Parameter: Water discharges at manufacturing and warehuse facilities Definitin: water discharged frm ur glbal manufacturing and warehuse facilities. Scpe: water discharges arising frm ur facilities under management cntrl f the Grup, excluding water reuse and recycling and water used n-site fr irrigatin purpses. Units: cubic metres. Methd: this is cllected using Enabln. The quantities can be reprted in units t suit the user and are autmatically cnverted int cubic metres. Surce: this is extracted frm internally managed databases and where pssible this infrmatin is based n inviced quantities r direct measurement. Where discharges are nt metered, r are partially metered, water balance assumptins are made by the reprting site. Parameter: Waste at manufacturing and warehuse facilities Definitin: ttal nn-hazardus and hazardus waste generated frm ur glbal manufacturing and warehuse facilities. Scpe: waste materials generated frm ur facilities within the calendar year (excluding cnstructin, demlitin wastes and whle wden pallets returned t suppliers), under management cntrl f the Grup and remved frm site fr either recycling r ultimate dispsal by third party waste cntractrs. Units: metric tnnes. 5 P age

6 Methd: using Enabln all wastes are reprted and, where required, the quantities are cnverted t metric tnnes. Vlumes f liquids are cnverted t metric tnnes using an assumed density f 1 (i.e. 1 cubic metre is 1 metric tnne). Surce: this data cmes frm internal r third-party databases and is derived frm inviced quantities/direct measurement, derived frm waste transfer ntes. Parameter: Waste t landfill frm manufacturing and warehuse facilities Definitin: % f ttal nn-hazardus and hazardus waste generated frm ur glbal manufacturing and warehuse facilities that is sent t landfill. Sent t landfill is defined as waste which is dispsed f by landfill. Scpe: waste materials generated frm ur facilities within the calendar year (excluding cnstructin and demlitin wastes), under management cntrl f the Grup and remved frm site fr landfill. Units: % sent t landfill Methd: using Enabln all wastes are reprted and, where required, the quantities are cnverted t metric tnnes. Vlumes f liquids are cnverted t metric tnnes using an assumed density f 1 (i.e. 1 cubic metre is 1 metric tnne). Surce: this data cmes frm internal r third-party databases and is derived frm inviced quantities/direct measurement, derived frm waste transfer ntes. Parameter: Hazardus waste at manufacturing and warehuse facilities Definitin: hazardus waste, defined as: wastes which exhibit ne r mre hazardus characteristics, (such as being flammable, xidising, pisnus, infectius, crrsive, ectxic) which cause them t be classed r cnsidered by relevant regulatrs as hazardus. This is a cmpnent f ttal waste and is als reprted separately. Scpe: hazardus wastes materials generated frm ur facilities within the calendar year (excluding cnstructin and demlitin wastes), and remved frm site fr either recycling r ultimate dispsal by third-party waste cntractrs. Units: metric tnnes. Methd: using Enabln all wastes are reprted and, where required, the quantities are cnverted t metric tnnes. Vlumes f liquids are cnverted t metric tnne using an assumed density f 1 (i.e. 1 cubic metre is 1 metric tnne). Surce: this data cmes frm internal r third-party databases and is derived frm inviced quantities/direct measurement, derived frm waste transfer ntes. Parameter: Units f Prductin (Denminatrs fr GHG emissins, Energy, Water, Waste and Hazardus waste per 1000 cnsumer units (CU) Definitin: A cnsumer unit is defined as: the nrmal unit f prduct purchased by the endcnsumer (e.g. a single bx, bttle, can). A case f prducts prduced at a factry will nrmally cntain several cnsumer units (e.g. six aersls in a case = six cnsumer units). Where several 6 P age

7 cnsumer units are cmbined int a single pack (e.g. prmtins / gift packs), each individual cnsumer unit is reprted, with cnsumer units made at anther RB site nt included. T avid duble cunting, where site receives finished gds frm anther RB site these cnsumer units are excluded and reprted by the riginal site which has prduced them. Scpe: Cnsumer units prduced by RB manufacturing facilities Units: Cnsumer units (CU) Surce: The number f cnsumer units prduced is btained frm ur JD Edwards r SAP system (linked t the financial reprting system). Parameter: Envirnmental and ccupatinal safety prsecutins and fines (nt part f the RB sustainability data assurance prcess) Definitin: ttal number f envirnmental and ccupatinal safety prsecutins and fines resulting frm an EHS incident, permit breach r legal nn-cmpliance. Scpe: ttal number f envirnmental and ccupatinal safety prsecutins and fines recrded in Units: number f prsecutins and fines. Methd: All are reprted in line with the Glbal RB Prcedure fr Internal Reprting f Envirnment, Health & Safety and Human Rights incidents and, where apprpriate, the material spilled, the vlume and any ther relevant infrmatin. Surce: this data cmes frm internal r third-party databases. Data is input by site level EHS c-rdinatrs. 2.2 Our Carbn Ftprint & Our Water Ftprint Parameter: glbal prduct lifecycle carbn ftprint Definitin: the ttal carbn ftprint is a measure f direct and indirect greenhuse gas (GHG) emissins assciated with RB prducts sld during the calendar year (1 January 2018-t 31 December 2018). GHGs cmprise, in line with the GHG Prtcl Crprate Accunting and Reprting Standard (WRI & WBSD, 2004), (carbn dixide (CO2); methane (CH4); nitrus xide (N2O); hydrflurcarbns (HFCs); perflurcarbns (PFCs), sulphur hexafluride (SF6) and nitrgen trifluride (NF3). The perfrmance is reprted based in carbn dixide equivalent (CO2e). Scpe: GHG Prtcl Scpe 1, 2 & 3 emissins (i.e. thse assciated with the entire lifecycle f RB prducts sld including the raw and packaging material supply chain, prduct manufacturing, distributin, retail peratins, cnsumer use, and subsequent dispsal/recycling f the prduct and its packaging). This includes the lifecycle GHG emissins assciated with prducts manufactured at the Cmpany s wn manufacturing facilities as well as thse manufactured by external third-party facilities prducing prducts fr RB under cntract. In 2017, RB acquired Mead Jhnsn Nutritin which is nw integrated int RB as ur Infant Frmula and Child Nutritin (IFCN) business. In line with the rules set ut abve, IFCN is included in ur reprting. Where a reductin target has been set in relatin t a baseline year, 7 P age

8 and data fr previus years r a baseline year is nt available, annual perfrmance data is presented excluding the new acquisitin in rder t ensure year n year cmparisn with the baseline. Data fr the 2012 baseline year is nt available fr Mead Jhnsn Nutritin, s a separate entry will prvide perfrmance data including the new acquisitins r facilities separately fr the reprting year nly. Units: lifecycle CO2e emissins per unit dse f prducts sld in the calendar year. A dse is defined as the amunt f each individual RB prduct required t deliver that prduct s intended service, either fr a single use r fr a defined perid f time e.g. ne Finish autmatic dishwashing tablet fr ne lad f dishwashing, the recmmended number f Nurfen tablets fr 24 hurs f pain relief, ne hard skin file (which lasts fr 12 mnths) etc. In Lifecycle Assessment (LCA) terminlgy a dse is the functinal unit f cnsumer use. The number f dses per year is nt cmparable t ther measures f sales r prductin vlume used in either ur financial r nn-financial reprting. Methd: we have adpted a methdlgy that makes reference t the fllwing standards and guidance: PAS 2050:2011, Specificatin fr the assessment f the lifecycle greenhuse gas emissins f gds and services, Final versin, September 2011; Greenhuse Gas Prtcl, Crprate Value Chain (Scpe 3) Accunting and Reprting Standard, September 2011; and Greenhuse Gas Prtcl, Crprate Accunting and Reprting Standard, March Whilst the cre methdlgy remains cnsistent year n year, we cntinue t seek ways t imprve data prcessing, data surces and assumptins. On a year n year basis we review and increase the number f Representative Prducts used t calculate raw and packaging material cnsumptin t ensure it remains apprpriate fr ur ever-changing prtfli. In additin, we update data n cnsumer use t ensure relevance and accuracy. Surce: ur GHG emissins are calculated by multiplying publicly available emissin factrs surced frm Ecinvent r the IEA, by amunts f materials and packaging included in prducts sld, energy used and distances travelled. Where available, primary data has been surced directly frm RB s prduct libraries, envirnmental reprting and ther business management systems and its suppliers/cntractrs. Where this has nt been available, secndary data has been btained frm surces including publicly available LCA databases, jurnal articles and surces f industry/prduct/cnsumer use data. Where available and relevant, this data is regin-specific t accunt fr differences in reginal prductin. Sales data has been surced frm RB s ICE management infrmatin system. 1 PAS2050 was develped t assess the carbn ftprint f individual gds and services; hwever, RB s Ttal Carbn and Water Measurement System applies PAS2050 t determine the carbn ftprint cntributin f all key stages in the prduct lifecycle f its glbal prduct prtfli n an annual basis. As a result f this difference between intended use and the actual use in the cntext f RB s Measurement System, direct applicatin f every single element f PAS2050 acrss the whle lifecycle f RB s glbal prducts has by nature nt been apprpriate n every single ccasin althugh verall the Measurement System is in line with the PAS2050 specificatin. 8 P age

9 The ftprint methdlgy used t calculate Raw Material and Packaging Material impacts is based n apprximately 510 ftprint assessments f Representative Prducts (RPs). These RPs have been selected t reflect RB s prduct prtfli. In selecting the RPs, the fllwing has been cnsidered: prduct gruping has been carried ut at a level which delivers relative frmulatin and packaging hmgeneity any differences in prduct sizes within a grup are accunted fr in the scaling The impact f these RPs is then scaled up by 2018 sales data acrss ur cuntries and brands. Fr the purpse f the metric we assume that the perid in which ur prducts are used is cnsistent with the perid in which ur prducts are sld. In a limited number f cases, we apply adjustments where we are aware that the time perid f ur sales and the use f ur prducts are nt aligned. This is dne t ensure ur metric mst accurately reflects the ftprint f ur prducts used in the reprting perid. The ftprint methdlgy t calculate Cnsumer Use impacts is based n apprximately 155 cnsumer use mdels. The mdels have been built up frm primary research, literature and the knwledge f internal experts t represent the impacts frm hw ur custmers use ur RPs arund the wrld. The impacts are calculated per dse f prduct used and scaled up t the glbal prtfli using the number f dses sld. RB s prduct prtfli cntains a number f prducts, which are additives (e.g. fabric sfteners, dishwasher rinse aids) and used in cnjunctin with prducts which are the primary driver (detergents, dishwasher tablets) f specific cnsumer activities. While the raw material, packaging, manufacturing and dispsal impact f these additives is included within ur ftprint, the carbn impact assciated with the cnsumer use activity has nt been incrprated (r duble cunted) n the basis that it has already been accunted fr in the use f the driver prduct. Where specific prduct infrmatin was nt available, we have applied prxy data sets based n cmparable prducts, which we believe t be sufficiently similar t enable the calculatin f a representative ftprint. We have endeavured t apply cmplete cverage f ur glbal emissins based n the scpe and bundaries defined in the standards referenced. Hwever, there are limited, specific and (in terms f ur glbal prducts verall lifecycle carbn ftprint) nn-material exclusins frm the scpe f the reprted data, which includes business travel by frms ther than air (i.e. in cmpany cars, use f private cars fr business travel and train travel). GHG emissins assciated with these surces were estimated fr 2006 (business travel) and fund t be less than 0.1% f ur glbal prducts carbn ftprint, therefre we exclude these frm regular reprting n the basis f nn-materiality. N surces were knwingly excluded withut initial quantificatin and assessment t cnfirm that they did nt make a material cntributin t the Ttal Carbn Ftprint either in islatin r in aggregate. 9 P age

10 Parameter: Glbal prduct lifecycle water use ftprint Definitin: the ttal water use ftprint is a measure f direct and indirect water use assciated with RB prducts sld during the calendar year (1 January 2018 t 31 December 2018). Water use cmprises rainwater used in grwing materials such as paper, cttn, leather i.e. cnsistent with the principles f green water in water ftprinting terms; and freshwater including water abstracted frm surface and grundwater, municipal water i.e. cnsistent with the principles f blue water in water ftprinting terms. The use f nn-freshwater (i.e. sea water) has been excluded. Scpe: direct and indirect water use (i.e. thse assciated with the entire lifecycle f RB prducts sld including the raw and packaging material supply chain, prduct manufacturing, distributin, retail peratins, cnsumer use, and subsequent dispsal/recycling f the prduct and its packaging). This includes the lifecycle water use assciated with prducts manufactured at the Cmpany s wn manufacturing facilities as well as thse manufactured by external thirdparty facilities prducing prducts fr RB under cntract. In 2017, RB acquired Mead Jhnsn Nutritin and in line with the rules set ut abve, this is included in ur reprting. Where a reductin target has been set in relatin t a baseline year, and data fr previus years r a baseline year is nt available, annual perfrmance data is presented excluding the new acquisitin in rder t ensure year n year cmparisn with the baseline. Data fr the 2012 baseline year is nt available fr Mead Jhnsn Nutritin, s a separate entry will prvide perfrmance data including the new acquisitins r facilities separately fr the reprting year nly. Water assciated with the prvisin f energy (i.e. cling water used in the pwer statin, water used in extractin f il, cal) has been excluded frm the scpe f the water use ftprint acrss all lifecycle stages. Units: lifecycle water use (litres) per unit dse f prducts sld in the calendar year. A dse is defined as the amunt f each individual RB prduct required t deliver that prduct s intended service, either fr a single use r fr a defined perid f time e.g. ne Finish autmatic dishwashing tablet fr ne lad f dishwashing, the recmmended number f Nurfen tablets fr 24 hurs f pain relief, ne hard skin file (which lasts fr 12 mnths) etc. In Life Cycle Assessment (LCA) terminlgy a dse is the functinal unit f cnsumer use. The number f dses per year is nt cmparable t ther measures f sales r prductin vlume used in either ur financial r nn-financial reprting. Methd: the water use measurement methdlgy has been develped with reference t the fllwing recgnised water accunting guidance dcument: The Water Ftprint Assessment Manual: Setting the Glbal Standard (Hekstra,A.Y., Chapagain, A.K., Aldaya, M.M. and Meknnen, M.M.) 2011 Direct applicatin f every element f the water ftprint assessment manual has nt been applied t every element f the water use ftprint. Mst significantly the water ftprint cncept in the literature was intrduced as an indicatr f freshwater cnsumed bth directly r indirectly t prduce the gds and services cnsumed by any well-defined grup f cnsumers (e.g. individual cuntry r natin) r prducers (e.g. a public rganisatin). The ttal water use ftprint calculates the water use and nt water cnsumptin. The ttal water use ftprint calculates the water use, which is the amunt f water withdrawn, rather than the apprach mre ften taken fr water ftprinting which cnsiders nly the amunt f water 10 P age

11 that des nt return t the catchment frm which it was withdrawn. This apprach and deviatin frm the water ftprint definitin/methdlgy is driven by the desire t drive behaviur change acrss all life cycle stages particularly within prduct Research & Develpment, new prduct innvatin and cnsumer use f prducts. Water pllutin and water quality impacts (referred t as grey water in water ftprinting terms) have als nt been included in the measurement system and water pllutin is mnitred thrugh ther crprate prgrammes. Whilst the basic methdlgy remains cnsistent year n year, we cntinue t seek ways t imprve data prcessing, data surces and assumptins. On a year n year basis we review and increase the number f Representative Prducts used t calculate raw and packaging material cnsumptin t ensure it remains apprpriate fr ur ever-changing prtfli. Surce: ur water use is calculated by multiplying publicly available water factrs by vlumes f materials and packaging included in prducts sld, as well as accunting fr prduct water use in manufacturing and cnsumer use f ur prducts. Data: where available, primary data has been surced directly frm RB s prduct libraries, envirnmental reprting and ther business management systems and its suppliers/cntractrs. Where this has nt been available, secndary data has been btained frm surces including publicly available LCA databases, jurnal articles and surces f industry/prduct/cnsumer use data. Where available and relevant, this data is regin-specific t accunt fr differences in reginal prductin. Sales data has been surced frm RB s ICE management infrmatin system. Methd: the ftprint methdlgy used t calculate Raw Material and Packaging Material impacts is based n apprximately 510 ftprint assessments f Representative Prducts (RPs). These RPs have been selected t reflect RB s prduct prtfli. In selecting the RPs the fllwing has been cnsidered: prduct gruping has been carried ut at a level which delivers relative frmulatin and packaging hmgeneity any differences in prduct sizes within a grup are accunted fr in the scaling The ftprint methdlgy t calculate Cnsumer Use impacts is based n apprximately 155 cnsumer use mdels. The mdels have been built up frm primary research, literature and the knwledge f internal experts t represent the impacts frm hw ur custmers use ur prducts arund the wrld. The impacts are calculated per dse f prduct used and scaled up t the glbal prtfli using the number f dses sld. RB s prduct prtfli cntains a number f prducts which are additives (e.g. fabric sfteners, dishwasher rinse aids) and used in cnjunctin with prducts which are the primary driver (detergents, dishwasher tablets) f specific cnsumer activities. While the raw material, packaging, manufacturing and dispsal impact f these additives is included within ur ftprint, the water impact assciated with the cnsumer use activity has nt been incrprated (r duble cunted) n the basis that it has already been accunted fr in the use f the driver prduct. Where specific prduct infrmatin was nt available, we have applied prxy data sets based n cmparable prducts which we believe t be sufficiently similar t enable the calculatin f a representative ftprint. 11 P age

12 We have endeavured t apply cmplete cverage f ur glbal water use based n the scpe and bundaries defined in the standards referenced. Hwever, there are limited, specific and (in terms f ur glbal prducts verall lifecycle water use ftprint) nn-material exclusins frm the scpe f the reprted data, which includes direct water use in transprt (e.g. vehicle washing) and waste dispsal. These have been excluded frm regular reprting n the basis f nn-materiality. N surces were knwingly excluded withut initial quantificatin and assessment t cnfirm that they did nt make a material cntributin t the ttal water use ftprint either in islatin r in aggregate. Parameter: Glbal prduct lifecycle water impact Definitin: water use factred t cnsider lcal water scarcity. Scpe: impact assciated with direct and indirect water use (i.e. thse assciated with the entire lifecycle f the Grup s glbal peratins and prduct prtfli frm raw and packaging material supply chain, thrugh prduct manufacturing, distributin, retail peratins and cnsumer use, t subsequent dispsal / recycling f the prduct and its packaging). This includes the lifecycle water impact assciated with prducts manufactured at the Cmpany s wn manufacturing facilities as well as thse manufactured by external third-party facilities prducing prducts fr RB under cntract. Water impact assciated with the prvisin f energy (i.e. cling water used in the pwer statin, water used in extractin f il, cal) has been excluded frm the scpe f the water impact ftprint acrss all lifecycle stages. Units: lifecycle water impact litre equivalents (e litres) per dse f prducts sld in the calendar year. A dse is defined as the amunt f each individual RB prduct required t deliver that prduct s intended service, either fr a single use r fr a defined perid f time e.g. ne Finish autmatic dishwashing tablet fr ne lad f dishwashing, the recmmended number f Nurfen tablets fr 24 hurs f pain relief, ne hard skin file (which lasts fr 12 mnths) etc. In Lifecycle Assessment (LCA) terminlgy a dse is the functinal unit f cnsumer use. The number f dses per year is nt cmparable t ther measures f sales r prductin vlume used in either ur financial r nn-financial reprting. Methd: the water use measurement methdlgy has been develped with reference t the fllwing recgnised water accunting guidance dcument: The Water Ftprint Assessment Manual: Setting the Glbal Standard (Hekstra, A.Y., Chapagain, A.K., Aldaya, M.M. and Meknnen, M.M.) 2011 Unlike carbn ftprinting, in water ftprinting and accunting, understanding the lcatin f the water use is as imprtant (if nt mre s) as understanding the amunt used. This is because the impacts f water are lcal rather than glbal as with GHG (CO2e). Understanding nly the number f litres water used is f limited value if there is n cnsideratin f gegraphical spread and the water resurce availability in the area in which the water is cnsumed r used. In line with these principles, and t be able t measure, mnitr and minimise the impacts t glbal water resurces as a result f the manufacture and use f RB s glbal prduct prtfli, a measure f water scarcity has been incrprated int the water use calculatin t numerically accunt fr the glbal variatins in water availability and allw the quantificatin f water impact. Water impact litres equivalents (e litres per dse) is calculated by multiplying water use (litres per dse) by a scarcity factr relevant t the lcatin f where the water is used. Fr water 12 P age

13 used by ur custmers this factr is based n the cuntry f sale. Fr water assciated with ther stages f the lifecycle we apply a glbal average scarcity factr. Surce: data regarding water scarcity has been surced at bth a cuntry and watershed level frm the Water Ftprint Netwrk. Chapagain, A.K. and Hekstra, A.Y. (2004) Water Ftprints f Natins, Value f Water Research Reprt Series N.16, UNESCO-IHE. Appendix XXI Hekstra, A.Y. and Meknnen, M.M. (2011) Glbal Water Scarcity: Mnthly Blue Water Ftprint Cmpared t Blue Water Availability fr the Wrld s Majr River Basins, Value f Water Research Reprt Series N.53, UNESCO-IHE, Appendix IX In the past 20 years, many metrics have been develped t evaluate water scarcity and stress. It is cnsidered that the mst recent water scarcity indicatrs published by the Water Ftprint Netwrk, cmparing water ftprint t water availability, prvided the mst apprpriate measure at the time the RB target was set. Hwever, research in this area has evlved and we anticipate that the methdlgy and the water scarcity data will reflect this in future. Parameter: Net revenue frm mre sustainable prducts Definitin: Reckitt Benckiser Grup plc net revenue attributable t mre sustainable prducts during a 12-mnth perid. RB defines mre sustainable as a prduct that scres better n ne f the fur parameters in the table belw withut scring a wrse when cmpared t a previus prduct versin r categry average where n previus versin exists. Scpe: Reckitt Benckiser Grup plc net revenue (excluding IFCN business net revenue 1 ) attributable t sales frm mre sustainable prducts during a 12-mnth perid. Mre sustainable prducts are measured by RB s Sustainable Innvatin Calculatr (SIC), a streamlined Life Cycle Assessment (LCA) tl that mdels the envirnmental impacts f prducts. Units: millin Methd: The RB sustainability team cmpile and validate a master list f mre sustainable prducts using the RB SIC. The methdlgy applied is cnsistent with that set ut fr the carbn, and water ftprints. Carbn and water factrs are applied t the raw material and packaging data f the selected prducts. These publicly available emissin factrs are surced frm Ecinvent r the IEA and were updated during 2018 t reflect additinal data-sets and mre accurate data that had becme available (e.g. Ecinvent 3.4). When cnsidering the Ingredients parameter, we 1 Net revenue frm ur IFCN business remains excluded as updates t the SIC are required in rder t take int accunt the material life cycle stages f ur IFCN prducts. 13 P age

14 assess cmpliance with RB s Restricted Substances List (RSL) which sets ut raw materials which RB is seeking t reduce and/r eliminate based n reviews f safety, sustainability and public cncern cnsideratins. T scre a better n Ingredients, the prduct must cmply with RB s RSL and have a least ne preferred sustainability credential which are attributes that are psitive fr sustainability but difficult t quantify; such as Frest Stewardship Cuncil (FSC) certificatin r packaging surced frm certified surces. Net revenue generated by the RB grup fr the mre sustainable prducts is btained frm the RB finance team fr all relevant cuntries in which the relevant prducts are sld and cnslidated. Surce: Net revenue generated by the RB grup fr the mre sustainable prducts is btained frm the RB financial management system ICE. 2.3 HR Perfrmance Parameter: Natinalities (nt part f the RB sustainability data assurance prcess) Definitin: the number f natinalities at Bard level; in the next-three bands f management f the Grup (the Executive Cmmittee, the Grup Leadership Team and the Senir Management Team) and amngst the 87% f all emplyees glbally fr whm data is available, n the last day f the Cmpany s financial year (31 December). Scpe: all full r part time permanent emplyees (i.e. excludes cntract emplyees). Units: number f different natinalities (i.e. emplyees self-stated natinality, as determined in line with the United Natins current list f glbal cuntries). Methd: the number f emplyee self-stated natinalities. Where an emplyee states that they have tw r mre natinalities, the natinality that they state first (r in the case f the Bard and Executive Cmmittee, that they asked t be taken as their principal natinality) is the natinality which is used. Surce: the Grup s glbal HR database system, myrb. Parameter: Gender split Definitin: the percentage f female emplyees at: Bard level; in the next three bands f management f the Grup (the Executive Cmmittee, the Grup Leadership Team and the Senir Management Team); and amngst the 87% f all emplyees glbally fr whm data is available, n the last day f the Cmpany s financial year (31 December) Scpe: all full r part time permanent emplyees (i.e. excludes cntract emplyees). Units: percentage (%). Methd: percentage calculated as the number f female emplyees divided by the ttal number f emplyees f that ppulatin fr which data is reprted (i.e. the bard; the next three bands f management f the Cmpany; and fr all emplyees). Surce: the Grup s glbal HR database system, myrb. 14 P age

15 2.4 Health & safety at wrk Health & safety data cmprises the data reprted t and by RB s manufacturing facilities, R&D centres, warehuses and cmmercial ffices. Parameter: Lst Wrk Day (LWD) Accidents Definitin a wrk-related accident/incident during the reprting perid which resulted in an emplyee (including cntract labur/temprary emplyees/cntractrs while n-site) being unable t undertake/cmplete their duties n the fllwing scheduled wrk day/shift. This includes wrk related travel but excludes travel t and frm an emplyee s nrmal place f wrk unless this is transprt rganised by RB. Scpe cvers RB emplyees and cntract labur/temprary ver whm we have management cntrl, plus cntractrs wh visit the site fr a shrt time t cmplete a specific wrk task, plus permanent cntractrs wh manage their wn area and staff, plus visitrs t the site. Units number f accidents. Methd abslute number reprted. Surce glbal, facility-level mnthly health & safety reprting; and, glbal, facility-level annual health & safety data reprting prcess. Parameter: Lst Wrk Day Accident Frequency Rate Definitin: number f LWD accidents suffered per 100,000 hurs wrked. Wrking hurs include standard hurs and vertime and exclude absence thrugh sickness, hliday and apprved leave. Scpe: same scpe as LWD Accident (abve). Units: rate per 100,000 hurs wrked. Methd: number f LWD accidents per 100,000 hurs wrked. Surce: glbal, facility-level mnthly health & safety reprting; and glbal, facility-level annual health & safety data reprting prcess. Parameter: Severe Accidents Definitin a wrk-related accident/incident during the reprting perid which resulted in permanent disability f an emplyee (including cntract labur/temprary emplyees) n site r while n cmpany business (including business travel), r f a cntractr/visitr while nsite. Fr example, amputatins r any permanent lss f sensry r mtr dexterity (such as the lss f a fingertip). Scpe same scpe as LWD Accident (abve). Units abslute number. Methd abslute number reprted. Surce glbal, facility-level mnthly health & safety reprting; and glbal, facility-level annual health & safety data reprting prcess. Parameter: Fatality Definitin a wrk-related accident/incident during the reprting perid which resulted in the death f an emplyee (including cntract labur/temprary emplyees) n-site r while n cmpany business (including business travel), r f a cntractr/visitr while n-site. Scpe same scpe as LWD Accident (abve). Units: abslute number. Methd abslute number reprted. Surce glbal, facility-level mnthly health & safety reprting; and, glbal, facility-level annual health & safety data reprting prcess. 15 P age

16 2018 RB basis f preparatin fr brand scial sustainability perfrmance indicatrs selected fr independent assurance (RB brand scial gal stated in 2018 reprt: helping 1 Billin peple t imprve their health & hygiene behaviur by 2025) Target t 2025*: Infrm 1 billin peple thrugh health and hygiene educatinal prgrammes and behaviur change cmmunicatins 1. Intrductin ERM CVS has been appinted t prvide limited assurance f selected brand scial sustainability perfrmance indicatrs. This Basis f Preparatin dcument sets ut hw these brand scial sustainability perfrmance indicatrs, described in Sectin 2 belw, have been prepared and reprted, including their reprting perids. This dcument has been prepared t align with ur wider business gals and prcesses. As there are n mandatry guidelines r requirements applicable t the infrmatin in scpe, we have captured all data thrugh ur internal data cllectin prcesses. These have been established in accrdance with cmmn industry practice, including where apprpriate, estimates and assumptins. 2. Scpe This dcument summarises the definitin, rganisatinal reprting bundary and data preparatin fr the perfrmance indicatrs listed belw. We have made all endeavurs t prepare a cmplete, accurate and cnsistent dataset, which reflects true perfrmance and is meaningful t the user f the infrmatin. This is a relatively new area f reprting fr RB, and ur data cllectin prcesses are emerging. Where any assumptins r estimatins have been required, r specific exclusins are made, we have utlined these within this dcument. As with all ur data prcesses, we aim fr transparency and strive fr cntinuus imprvement Brand scial sustainability perfrmance indicatrs The belw brand scial gals have been aligned t RB s wider business gals and strategy. Brand scial gal Dettl/Lysl (als including Sagrtan and Napisan brands) Enable healthier & happier lives thrugh better hygiene practices Durex Reduce incidences f sexually transmitted infectins and unwanted Brand scial sustainability perfrmance measured Number f peple reached by brand educatinal prgrammes n better hygiene practices since 2013 (incl. handwashing, fd hygiene and hme hygiene). Number f peple reached by brand educatinal prgrammes n sexual health since P age

17 pregnancies by educating peple abut safe sex. Mrtein (als including SBP, Shieldtx and Pif Paf brands) Reduce incidence f msquit-brne diseases thrugh educatin n preventin & prtectin methds against malaria & dengue Harpic Reduce incidence f diarrheal diseases thrugh prmting and facilitating access t clean & hygienic tilets Cmbined Dettl & Harpic prgramme; Veet prgramme RB Help 1 billin peple peple t imprve their Health & Hygiene behaviur by 2025 Number f peple reached by brand educatinal prgrammes n malaria/dengue preventin since Number f peple reached by brand educatinal prgrammes n imprtance f sanitatin & stpping pen defecatin practices cupled with educatin n hygienic maintenance f tilets since Number f peple reached by BSI (Banega Swachh India plus Bangladesh, Sri Lanka and Hga Saaf Pakistan) jint brand educatinal prgramme n imprtance f hygiene practices & prper sanitatin; Veet female empwerment schl educatin prgramme Infrm 1 billin peple thrugh health and hygiene educatinal prgrammes and behaviur change cmmunicatins (brands listed in this table) 2.2. Definitins Brand educatinal prgramme Brand educatinal prgramme is defined as a brand-spnsred prgramme delivering health / hygiene related brand specific messages (e.g. persnal & hme hygiene educatin fr Dettl) t specific brand target audience (e.g. new mums and schlchildren fr Dettl). The reprted figures therefre measure the number f peple reached via these spnsred campaigns. Reach Reach is the ttal number f peple encuraged t imprve their health & hygiene behaviur as a result f brand educatinal prgrammes. The definitin includes bth direct reach and indirect reach prgrammes. 17 P age

18 Ttal reach is calculated as the ttal number f direct reach and indirect reach per brand educatinal prgramme Direct reach is defined as an individual wh has (in persn) attended a prgramme with at least ne f the fllwing interactive elements: an educatinal vide, a presentatin, a lecture by a health prfessinal, a talk by a presenter, a play/shw r a rad shw. The interactive element must include the benefits f health & hygiene behaviur, as well as demnstratins regarding health and hygiene. Sme prgrammes use the distributin f educatinal materials, such as bklets, cmic cartn bks and prduct samples, where there is implied endrsement via delivery frm a prfessinal (e.g. health prfessinal). Indirect reach is defined as an individual wh has engaged with a prgramme via the fllwing means: - Watching educatinal vide cntent (the vide must have educatinal frmat and fcus n health & hygiene infrmatin). PLEASE NOTE: Shrt prduct ads, even cntaining health & hygiene infrmatin, d nt qualify. Only nn-duplicate reach is cunted. - Accessing educatinal cntent n brand website - e.g. health & hygiene tips (fr example, Yur Family, Illness & Preventin, Healthy hmes and Persnal Hygiene sectins n Dettl website), malaria preventin tips fr Mrtein r cnsuming educatinal cntent n the Durex website; nly unique visits cunted and nly if the visit was at least 60 secnds lng. - Online Engagement with an educatinal campaign r an ecrm campaign: pledging supprt t the cause, r vting / participating in a campaign (e.g. pledges n websites fr Glbal Handwashing Day) - Sufficient Engagement with educatinal cntent placed n scial platfrms (e.g. cntent placed n Facebk, Weib, VKntakte). See criteria belw. What cunts? - Online vide views supprted by a reprt frm an agency, Ggle, Facebk etc - Digital Campaign: Vtes, pledges, sign up - Facebk: cmment, share NOT likes as this is nt cunted as substantial enugh engagement - Instagram: Cmments / repst - Twitter: Retweet - Opening an educatinal cntent in an ecrm campaign When a prgramme invlves a cmbinatin f the abve interactin pprtunities, nly ne f the abve listed channels is t be cunted (the ne with higher cunt), t avid multiple cunting. There is a risk f multiple cunting ver the indirect reach reprted by Durex prgrammes in sme markets due t a large vlume f marketing activity in 2018, s the apprach (detailed in the tw pints belw) has been taken t mitigate the multiple cunting risk. - In markets where indirect reach is estimated frm the number f vide views, the duplicate reach has been remved by dividing the ttal view cunt by the number f campaigns in 2018, and then by the number f nline vides that were included as part f that campaign. 18 P age