Signatory Name: Brown Forman Australia Pty Ltd

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1 Signatory Name: Brown Forman Australia Pty Ltd The question numbers in this report refer to the numbers in the report template. t all questions are displayed in this report. Status: Complete The content in this APC Annual Report is hereby endorsed by the Chief Executive Officer, or equivalent officer of the organisation Industry sector (please select 1 only): Brand Owner / Wholesaler / Retailer Packaging Manufacturer Waste Management Other - Commercial Organisation Community Group Industry Association Government Raw Material Supplier Other: Industry type (please select 1 only): Food & Beverage Pharmaceutical / Personal Care / Medical Hardware Homewares Communications / Electronics Clothing / Footwear / Fashion Chemicals / Agriculture Fuel Large Retailer Tobacco Shipping Company Airline Other: Please indicate your organisation's reporting period: Financial Year: 1 July June 2015 Calendar Year: 1 January December 2015

2 Goal 1: Design KPI 1: % of signatories with documented policies and procedures for evaluating and procuring packaging using the SPGs or equivalent. 9. Does your company have documented policies and procedures for evaluating and procuring packaging using the SPGs or equivalent? 10. Of the types of packaging existing at the beginning of the reporting period, what percentage had been reviewed using the Sustainable Packaging Guidelines (SPG) by the end of the reporting period? 1 Have any new types of packaging been introduced during the reporting period? 12. Provide details of policies and procedures Brown-Forman Packaging Scorecard - Spirits (v2, 2013) based on the principles of the SPG has been integrated into the Project Management process for all new full strength spirit packaging projects. 18 % If yes, of the new types of packaging introduced during the reporting period, what percentage have been reviewed using the Sustainable Packaging Guidelines (SPG) by the end of the reporting % 13. Please indicate your progress this year towards achieving your annual targets and milestones for KPI Complete baseline assessments on 50% of existing spirits packaging configurations using the BF Packaging Scorecards for spirits and ready to drink (RTD) by May 2016 Complete baseline assessments on 25% of existing ready to drink (RTD) packaging configurations using the BF Packaging Scorecards for spirits and ready to drink (RTD) by May 2016 Integrate BF Packaging Scorecards for spirits, valueadded packs (gift), and RTD into new product development process and complete scorecards on 25% of all new spirits, value added pack, and RTD by May 2016 Through December 2015, BF has completed baseline assessments on 18% of existing spirits packaging configurations assessments were completed for existing RTD packaging configurations during The BF Packaging Scorecard has been included in the new product development process for spirits, however, as of December 2015 the new package engineers had not received training on the use of the scorecards and no new product assessments were completed. 14. Describe any constraints or opportunities that affected performance under this KPI During 2015, the BF Packaging team was impacted by personnel changes that limited the resources available to complete the packaging assessments. Several experienced personnel that were trained in the package assessments left the team, and were replaced by new personnel who have not yet received training in the package assessment process. Additionally, the pace of new product/packaging configurations continued to increase with a total of 122 new product introductions or package configuration changes managed by the packaging group in 2015.

3 Goal 2: Recycling KPI 3: % signatories applying on-site recovery systems for used packaging. 15. Do you have on-site recovery systems for recycling used packaging? at all facilities/ sites at some, but not all facilities/ sites 16. Please indicate your progress this year towards achieving your annual targets and milestones for KPI 3 Continue to operate on-site recycling and expand the program to include hard to recycle packaging items to meet Zero Waste to Landfill target at 5 of 14 manufacturing sites by May 2016 As of December 2015, 4 out of 14 production sites send less than 1% waste to landfill (an increase of one site from 2014). All production facilities continue to identify additional waste streams for recovery, as well as identify materials that can be eliminated. Additionally, several production sites worked with suppliers to reduce waste materials through changes in packaging of materials, including a change from single-use wood pallets to returnable plastic pallets for certain glass bottles Results: Cardboard - 1,122 tons (+35% change) Glass - 2,771 tons (+30% change) Wood Pallets tons (+200% change) Plastic tons (+199% change) Metal tons (+30% change) 17. Describe any constraints or opportunities that affected performance under this KPI Brown-Forman tested the collection of organic waste materials for composting from employee cafeterias at its headquarter building to reduce waste to landfill. This test is on-going, with an average of 2,500 lbs of organic material collected per month. The information collected during this test will be used to design an organic waste separation program for the main campus, to be rolled out across the headquarters campus starting in August 2016.

4 KPI 4: Signatories implement formal policy of buying products made from recycled packaging. 18. Does your company have a formal policy of buying products made from recycled packaging? Please explain why not Formal policies signed by senior management require significant time for development and approval, and there were other key policies that were given priority over the recycled content policy. 19. Is this policy actively used? 20. Please indicate your progress this year towards achieving your annual targets and milestones for KPI 4 2. Complete a materiality assessment of environmental impacts along our supply chain (Scope 3) to identify and prioritize packaging materials with largest impacts Develop a formal Buy Recycled purchasing policy for the top-3 packaging materials identified by the materiality assessment by May 2016 The materiality assessment was not completed due to a change in priority for the internal teams that had been assigned this assessment. work has been completed to date on this target. 2 Describe any constraints or opportunities that affected performance under this KPI During the year, key internal and external stakeholders requested that additional support be provided to an assessment of the environmental impacts of Brown-Forman's agricultural supply chain. This change in priority shifted resources from the packaging supply chain work that had been scheduled. Additionally, Brown- Forman is in the process of refining its policy development and approval process, and all new policy development was placed on hold until the process is finalized. This is estimated to be complete by the end of Goal 3: Product Stewardship KPI 6: % signatories with formal processes to work collaboratively on packaging design and / or recycling. 22. Does your company have formal processes in place for collaborating with other companies or organisations on improved packaging designs and/or recycling which aims to reduce or eliminate waste? Provide details of policies and procedures (including names of policies/ procedures) During 2015, BF Australia changed its new product development process to include a collaborative design review with Schweppe's, who provides contract manufacturing for BF Australia. Since both BF Australia and Schweppe's are members of APC, this design review looks at opportunities to improve recycling and reduce waste from packaging materials. 23. Please indicate your progress this year towards achieving your annual targets and milestones for KPI 6 Expand Brown-Forman sustainable packaging reviews to include key packaging suppliers and other external stakeholders by identifying strategic packaging partners by May 2016 During 2015, BF Australia changed its new product development process to include a collaborative design review with Schweppe's, who provides contract manufacturing for BF Australia. Since both BF Australia and Schweppe's are members of APC, this design review looks at opportunities to improve recycling and reduce waste from packaging materials.

5 24. Describe any constraints or opportunities that affected performance under this KPI As part of its membership in the Beverage Industry Environmental Roundtable (BIER), Brown-Forman participates in an industry work group focused on Packaging issues specific to the beverage industry. During 2016, the BIER Packaging work group will conduct a study that will collect information on the post consumer recycling (PCR) of beverage packaging material. This information will be used to identify core challenges to increasing PCR within those markets, and identify opportunities for BIER members to collaborate on solutions to increase PCR. KPI 7: % signatories showing other Product Stewardship outcomes. 25. Please indicate your progress this year towards achieving your annual targets and milestones for KPI 7 Investigate opportunities for reducing packaging materials used to send packaging components to production facilities, including use of returnable containers for closures and labels by May 2016 One production site collaborated with a glass supplier to switch from a single-use wood pallet for glass delivery to a returnable plastic pallet. 26. Since the beginning of the reporting period, has your company had any other outcomes related to product stewardship? If yes, please give examples of other product stewardship outcomes BF Australia changed some products from a 340ml RTD bottle to a 330ml RTD bottle, which will result in a reduction of about 17,700 kg of glass per year. The BF Australia team continues to work on other opportunities for waste reduction, including the reduction of stretch wrap used for pallets of finished goods. In 2015, the package for Collingwood was changed to eliminate a plastic overcap and move to a screw cap that can be more easily recycled in most markets. The elimination of this overcap will decrease plastic use by 6,680 kg per year. 27. Describe any constraints or opportunities that affected performance under this KPI KPI 8: Reductions in packaging items in the litter stream. 28. Please indicate your progress this year towards achieving your annual targets and milestones for KPI 8 Develop a formal plan by May 2016 for BF Australia's participation in the annual Clean-up Australia day During 2015, the BF Australia leadership team was briefed on the ongoing waste reduction efforts completed as part of the APC, as well as Brown- Forman's corporate environmental sustainability strategy. This information was then rolled out to the rest of the BF Australia team to gain alignment and support for various waste reduction efforts, including projects like Clean-up Australia. It is expected that a formal plan for participation will be completed by December Describe any constraints or opportunities that affected performance under this KPI During 2015, the Jack Daniel Single Barrel was switched from a rigid set-up box with a metal lid produced in the US to a locally sourced gift carton without a metal lid; this reduced the package weight, the number of different materials, and the shipment distance of the carton.

6 Your Experiences This section lets you share with us any achievements, good news stories and areas of difficulties in making progress against your plan and the Covenant goals and KPIs. 30. Key achievements or good news stories As part of its regular reviews of value added packages, during the 2015 gift period Brown-Forman eliminated most plastic windows from value added packs, reducing the number of components per package and improving the ability to recycle the gift cartons. In addition, the overall size of value added packages was reduced to provide a more streamlined shelf appearance, which reduced the total weight and improved the packaging efficiency of each pallet of product, allowing for more product to be shipped per truck, reducing transportation impacts. During 2016, BF Australia will launch an e-commerce platform to offer special products to the Australia market. As part of this project, the BF Australia supply chain team met with key packaging partners to incorporate the Sustainable Packaging Guidance principles into the project. This includes the use of packaging that is 100% recyclable in the local market, as well as using generic cartons designed to fit multiple configurations of products to reduce both the total inventory of packaging and reduce waste from over ordering of special packaging. 3 Areas of difficulties in making progress against your plan, Covenant goals or KPIs During 2015, the BF Packaging team was impacted by personnel changes that limited the resources available to complete the packaging assessments. Several experienced personnel that were trained in the package assessments left the team, and were replaced by new personnel who have not yet received training in the package assessment process.

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