ABCE Dubai. Tetra Pak Driving Sustainability. Circular Economy & Carton Equity. Rodney Reynders

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1 ABCE Dubai Tetra Pak Driving Sustainability Circular Economy & Carton Equity Rodney Reynders

2 Tetra Pak at a glance 11.4 billion Net sales in billion Tetra Pak packages sold in billion Litres of products sold in Tetra Pak packages in Countries where Tetra Pak packages are available 24,100 Employees worldwide 6 Research & development centres

3 The accelerators of change Overpopulation Resource scarcity Climate change Global drivers Gender inequality Talent gap Consumer expectations Business challenges

4 Consumer opinions, attitudes and behaviours

5 Country coverage Consumers view 6,500 Consumers 13 Markets Countries: ECA France Germany Netherlands Russia Sweden GMEA Saudi Arabia South Africa Turkey NCSA Brazil USA SAEAO Japan Thailand GC China Consumer Insights / May 2017 / 5

6 Environment is top of mind for consumers Expected to be an even more relevant topic in the future 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) Of consumers believe that the focus on environmental issues will increase in the coming 5 years DEVELOPED MARKETS DEVELOPING MARKETS TOTAL % Increase a lot Increase somewhat No change Decrease somewhat Decrease a lot Base: Consumers (n=6543) *Top 2 boxes (Increase a lot + Increase somewhat) Tetra Pak/ / 6

7 Recycling confirmed as the most frequent activity Food waste reduction is the top activity in developing countries 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) ENVIRONMENTAL ACTIVITIES - TOP BOX (% FREQUENTLY DONE) 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 DEVELOPED 70% 45% 15% 15% DEVELOPING 36% 41% 29% 25% Avoided a particular product or brand for environmental reasons 16% 21% Avoided a beverage in a plastic container for environmental reasons 10% 21% Purchased an environmentally sound product, even if it costs more 12% 18% Avoided a beverage in a carton container for environmental reasons 7% 15% Base: Consumers (n=6543) 95% Significance towards 2015 Significant difference developed - developing Tetra Pak/ / 7

8 Environment is very important in business strategy Laws and company reputation Qualitative Importance of environment to business strategy Why is it important? It is very important [VALUE] % 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. It is quite important It is not very important It is not at all important [VALUE] [VALUE] % Mentions % The environmental pollution concerns our factory production, the products and the environment surroundings. Marketing impact, Community support. Our reputation and Proof of presence. 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 / 8

9 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.

10 A structured approach on sustainability reporting Step 1 Step 2 GRI G4 Sustainability Reporting Guidelines

11 Our sustainability approach Security Level Initials/YYYY-MM-DD / 11

12 We work with industry organizations, non-governmental and international organizations and several initiatives Good governance is our fundamental framework for achieving all our sustainability targets / 12

13 Our Vision for Packaging in a Circular Economy: Renewable materials, Sustainably sourced and Recycled Security Level

14 SDG s Sustainable Development Goals IG/ / 14

15 Sustainable Development Goals Goals Targets 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 IG/ / 15

16 Customer focus

17 Our customers have ambitious sustainability agendas / 17

18 Partnership across areas Select common sustainability themes among our customers 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 Initials/YYYY-MM-DD

19 Turkey - Customer Environment Projects Sustainability, Recycling, FSC awareness activities Pınar FSC Communication - 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 Dimes Dönüşüm Doğamızda Project - Recycling campaign on instagram with 20 selected bloggers (2,261,000 followers) - Scope: Recycling, Seperate Collection messages, Pictures - Posts in March and May, 2017 Sütaş Sustainability Movie - 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

20 Our sustainability work

21 Protecting food Working with our customers and partners to make food safe and available everywhere through our innovative and market-leading food processing and packaging solutions. Sustainable Development Goals we can impact: Top material aspects: Food availability Customer health and safety Food waste 60+ Years of expertise in food safety and quality 67 million Children received milk or other nutritious beverages in Tetra Pak packagers in Years supporting school feeding and nutrition programmes

22 How we contribute to our customers sustainability agendas We provide practical support in school feeding programmes We implement a Food safety policy for the highest standards of safety and full traceability We help build sustainable value chains by supporting smallholder farmers and connecting our customers to high-quality milk. Customers are interested in Our processing and packaging solutions: Protect food Keep it from being spilled or spoilt Prolong its lifetime Our Deeper in the Pyramid strategy tackles food affordability Reducing food loss and waste is one of our fundamental principles

23 Protecting people Safeguarding and enabling our people and supporting communities where we operate. Sustainable Development Goals we can impact: Top material aspects: Occupational health and safety 98% Manufacturing site compliance to global occupational health and safety standard OHSAS ,100 Employees worldwide 600,000 Learning hours taken up by our employees

24 How we contribute to our customers sustainability agendas 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 Customers are interested in 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 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

25 Protecting futures Supporting the sustainable future of our planet and the long-term success of our customers Sustainable Development Goals we can impact: 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 First Aseptic package with highest 100% of carton paperboard came 16% Reduction in GHG emissions, 100% Commitment to renewable class Vinçotte certification for from FSC certified and other despite 19% more packages electricity by 2030 via RE100 renewable materials (2016) controlled sources sold in 2016 (2010 baseline)

26 How we contribute to our customers sustainability agendas 2020 climate goal / Science Based Targets Supplier Code of Conduct for all suppliers RE100 commitment Carton CO 2 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 Efficient processing and packaging solutions Customers are interested in Sedex, Ecovadis memberships Responsible sourcing of paperboard, polymers and aluminium 100% of our carton paperboard comes from FSC certified and other controlled sources 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 Value-adding services

27 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 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 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 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.

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