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Amcor 2016

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GRI Report

2016
Sustainability
GRI Report
THE RESPONSIBLE PACKAGING REPORT
Abbreviated Outline:

• Why we do what we do - Message from Ron Delia 3

• What we make 9

• Meet Amcor 13

• Planning for the future: responsible packaging 2.0 18


a. Industry collaboration
b. Global partnerships

• How we make responsible packaging 22


a. Reducing our impact on the environment
i EnviroAction targets & performance 26
ii LCAs 24
iii Supply chain 35
b. Having a positive social impact
i Safety 41
ii Diversity and engagement 48
iii Community outreach 49
iv World Food Programme 51
c. A positive economic impact 52

• Appendices 56

Amcor
Sustainability GRI Report 2016 02
MESSAGE

G4-1
FROM THE CEO

Packaging developed and made However, what we do goes far beyond that.

by Amcor protects products, We are committed to responsible packaging.

Besides assuring that contents safely reach their


extends their shelf life, and intended destinations, responsible packaging
reduces waste throughout the means manufacturing with the right amount
global supply chain. of the most appropriate materials, using best

practices, and minimizing waste. As the world

population continues to grow, these principles

are increasingly important.

Customers, co-workers, investors, and the

environment all hold stakes in what Amcor does

and how we do it. All of them have interests in

how we approach occupational health and safety,

sustainable sourcing, product quality, carbon

emissions, and waste.

Packaging waste includes the loss of resources

when packaging is not recovered or recycled,

as well as marine debris and litter. According

to the Ellen MacArthur Foundation’s report

“New Plastics Economy: Rethinking the Future

"Leadership in the global of Plastics,” as much as $120 billion worth of

plastic packaging material is lost to the economy


packaging industry annually after being used only once.
includes accountability
for helping to reduce the We are working with other companies and

environmental and social organizations to increase the recovery of

effects of our business and reduce the negative effects of packaging

products on the environment. Key partners


and our industry overall" include the Ellen MacArthur Foundation,

the Trash Free Seas Alliance, the Recycling

Partnership, Project Reflex, REDcycle, and many

Amcor customers and suppliers.

Amcor
Sustainability GRI Report 2016 03
Working to reduce packaging waste is just Amcor people recognize that leadership in the

one illustration of how sustainability goals global packaging industry includes accountability

and business goals can and must align, so that for helping to reduce the environmental and

Amcor remains a strong, growing company. We social effects of our business and our industry

are also helping customers and vendors reach overall. We appreciate your interest in our efforts,

sustainability goals and reduce environmental and invite your feedback via amcor.com.

G4-31
impact within our shared supply chains and
Sincerely,
product life cycles. For example, we are

encouraging key suppliers to undergo EcoVadis

assessments and, so far, 85% of our global

procurement spend is with suppliers who have

been risk-assessed.

Packaging plays an important role in reducing


Ron Delia
food waste around the world. Our partnership
Chief Executive Officer
with the World Food Programme (WFP)

continues to improve lives in some of the most

remote and volatile regions in the world. Amcor’s

expertise allows WFP to provide more people in

challenging humanitarian contexts with well-

packaged, safe, and nutritious food.

Progress against our EnviroAction targets

demonstrates that we continue to improve

the environmental performance of Amcor’s

operations. We recently concluded a second

five-year program by outperforming each of our

goals. In our current fiscal year we are setting and

beginning work toward new targets to further

reduce our greenhouse gas emissions, waste, and

water use.

We are proud that global and regional indices

recognise us for our sustainability performance.

Amcor is included in the Dow Jones Sustainability

World Index, the CDP Climate Disclosure

Leadership Index for Australia, the MSCI Global

Sustainability Index series, the Ethibel Excellence

Investment Register, and the FTSE4Good Index.

Amcor
Sustainability GRI Report 2016 04
OUR PERFORMANCE
PLANNING FOR THE FUTURE: RESPONSIBLE PACKAGING 2.0

Reducing our impact on the environment

Area of focus Performance

Continuously improve
environmental performance out-performing the
across our sites FY2015/16 goal
Reduction
CO2 of 10% reduction
in GHG
intensity
28% including a 6%
decrease in Scope 3
indirect emissions.

Waste to
landfill
62% against the
FY2015/16 goal of
intensity 50% reduction.

100% of our sites


have a Water
Management Plan in
Water
place, and we have

25%
intensity
achieved a 25%
reduction in water
intensity.

Help our customers achieve


their sustainability objectives assessments have
been completed
More than 5,500 in ASSET, our
certified life cycle
assessment tool.

Amcor
Sustainability GRI Report 2016 05
OUR PERFORMANCE
PLANNING FOR THE FUTURE: RESPONSIBLE PACKAGING 2.0

Reducing our impact on the environment

Area of focus Performance

Use our packaging expertise


to help solve global issues
Joined the Ellen MacArthur to work toward a
Foundation’s New Plastics circular economy for
Economy initiative plastic packaging.

Joined the Ocean to help prevent waste


Conservancy’s Trash from reaching the
Free Seas Alliance oceans.

Our support of
metric tonnes of
the Recycling
10,000
recyclables being
Partnership
collected in six
contributed to
US cities.
over

Co-workers
to observe,
traveled to the
collect, and
Great Barrier

15
Reef to work document
with Earthwatch marine debris for
Institute scientists.

Amcor
Sustainability GRI Report 2016 06
OUR PERFORMANCE
HOW WE MAKE RESPONSIBLE PACKAGING

Having a positive social impact


Area of focus Performance

Realise our goal of “No


Injuries” through our ongoing and a
Achieved a Lost
commitment to providing a Recordable
0.6
Time Injury
safe workplace Frequency Rate of Case Frequency
Rate of 2.0.

Focused on hand safety


Global Safety and reduced hand-
campaign related injuries across the
business.

Develop and maintain


a diverse and engaged
workforce Women
hold 29% of the leadership
positions.

board positions
2 8out of are held
by females.

Protect human rights and


sound labor practices in all
our sites globally
100% of our manufacturing sites
participate in SEDEX.

Amcor
Sustainability GRI Report 2016 07
OUR PERFORMANCE
HOW WE MAKE RESPONSIBLE PACKAGING

Having a positive social impact


Area of focus Performance

Ensure sustainable sourcing


and responsible and ethical
is with suppliers
procurement who have been
85% of global spend
risk assessed via
EcoVadis

Support the communities


where we live and work on community

$1M
Invested projects, benefiting
more than US approximately
7,000 people.

Co-workers participated Colombia,


in Amcor Community
Program and supported
14 Ecuador,
Singapore,
initiatives in 14 countries Russia, the US,
including and Portugal.

Continued our
and provided packaging
partnership with
expertise to help more food
the World Food
aid reach people in need.
Programme

Amcor
Sustainability GRI Report 2016 08
WHAT WE
MAKE
Amcor is a global packaging company with more than 195 sites in 43 countries. We develop and make

flexible and rigid plastic packaging and folding-carton technology and products. A majority of our sales

are to the food, beverage, and healthcare packaging industries. Our products protect fresh produce, snack

food, medicine, water, juices, and carbonated soft drinks, among many other products. Here are just five

of our product developments of which we’re especially proud:

PRODUCT PROFILES

Method liquid laundry detergent bottle


As the industry’s first liquid laundry detergent bottle made of 100%

post-consumer recycled (PCR) polyethylene terephthalate (PET)

resin, the Amcor Method Laundry Detergent Bottle won Diamond

awards in the Technological Advancement, Responsible Packaging,

and Enhanced User Experience categories. Developed by our Rigid

Plastics group, this sleek, 53-ounce transparent custom container

successfully answered the compatibility and colour stability

challenges of using PET in the liquid laundry detergent market.

Amcor’s Advanced Sustainability Stewardship Evaluation Tool

(ASSET™) life-cycle assessment tool demonstrated that using 100%

PCR resin reduces the bottle’s life cycle energy consumption by 78%

and its carbon footprint by 35% compared to a virgin

PET alternative.

Amcor
Sustainability GRI Report 2016 09
WHAT WE
MAKE (continued)

AmLite
This year, Amcor launched AmLite Ultra, a transparent, metal-free packaging solution with a high barrier.

AmLite Ultra is the latest addition to Amcor’s broader AmLite line, which comprises metal-free films that

are exceptional for high-barrier packaging. Using Amcor’s Ultra SiOx coating, Amlite Ultra has an oxygen

barrier comparable to that of aluminium.

AmLite products also offer a significant environmental benefit by reducing material use. According to

ASSET, AmLite has a 40% smaller carbon footprint, some of which is due to its 21% lighter weight.

AmLite Ultra can be used for a range of ambient dry food products, as well as medical and personal care

products in a variety of pack formats, including bags, stand up pouches and spouted pouches, flow packs,

sachets, and more.

Amcor
Sustainability GRI Report 2016 10
WHAT WE
MAKE (continued)

Pandora
Amcor Rigid Plastics won a WorldStar Award

for developing Pandora, a 22-gram hot-fill PET

bottle with a design inspired by tea leaves. The

ergonomic, cost-effective, and more sustainable

bottle was designed for key customer Pepsico-

Lipton’s 500mL tea drink for the Central

American market. Even as one of the lightest


commercialized hot-fill containers in the world,

Pandora is exceptionally rigid because of a

specialised base that flexes as the content of the

bottle cools. The bottle’s unique curved design

uses 30% less PET and fits comfortably in a

consumer’s hand. The material reduction results

in a range of benefits including a dramatically

smaller environmental footprint through

recyclability and reducing the amount of energy

required to make the bottle. The Pandora bottle

also received recognition from the A’Design

Awards’ World Design Rankings, which showcases

the best and most creative designs worldwide.

Amcor
Sustainability GRI Report 2016 11
WHAT WE
MAKE (continued)

Formpack Ultra
Formpack® Ultra is a cold form blister product with greater elongation than standard cold form solutions.

With product cavities that can be drawn deeper and with sharper wall angles than was previously

possible, pharmaceutical companies can design smaller blister cards or add more cavities without

increasing the blister card size. The smaller cavities also provide better product protection, shelf life, and

stability.

Formpack® Ultra’s superior performance is an outcome of “best-in-class” selection of raw materials,

advanced manufacturing processes, and extensive quality control. By making more efficient use of

material, Formpack® Ultra reduces changeovers and lowers associated setup waste at the customer’s

site. These factors result in a lower carbon footprint and a decreased total cost of ownership.

Sunshine
Amcor Tobacco Packaging launched Sunshine

in 2015, a new printing technology that delivers

a highly reflective metallic effect without

the use of metal layers. Not only does this

technology allow for a simpler supply chain and

improved packaging line performance, it delivers

environmental benefits including decreased GHG

emissions, water consumption, and fossil fuel

consumption.

Amcor
Sustainability GRI Report 2016 12
MEET AMCOR

G4-3
LIMITED
Amcor is a global leader in responsible packaging solutions, serving many of the world’s largest food,

G4-4
beverage, and pharmaceutical manufacturers. We design, manufacture, and supply a broad range of

flexible packaging including pouches, sachets, blister packs, and bags for grocery items, medical devices,

pharmaceuticals, and personal and home care products as well as rigid plastic packaging containers,

caps, and closures for beverage, food, home, and personal care products. We manufacture folding

cartons for tobacco products and gum, as well as packaging and films for the electronics, automotive,

energy, and other manufacturing industries.

Our 31,761 co-workers in more than 195 manufacturing, distribution, and office locations in 43 countries

G4-9
G4-6
around the world produced 36 billion rigid plastic containers, 47 billion caps and closures, 80.5 billion

folding cartons, and 14.3 billion square meters of flexible packaging.

REGION SHARE OF SALES

G4-8
Western Europe 29.6%

North America 31.8%

Latin America 14.3%

Asia 9.7%

Eastern Europe 8.6%

Oceania 4.8%

Africa 1.0%

*This data does not include sales from Amcor’s share in AMVIG.

Amcor
Sustainability GRI Report 2016 13
MEET AMCOR
LIMITED (continued)

Amcor is a publicly-listed company with its ordinary shares (AMC) listed on the Australian Securities Exchange

G4-9
G4-7
(ASX), Eurobonds listed on the Singapore Stock Exchange (SGX), and CHF notes listed on the Swiss Stock

Exchange (SIX). In FY2016, we had net sales of $9.421B USD and our market cap was $AUD17.291 billion as of

30 June 2016.

The World of Amcor

G4-6
Amcor operations

In addition to these locations, Amcor holds 48% ownership in AMVIG Holdings Limited, a company

manufacturing tobacco packaging in China.

In FY16, our Flexibles Europe and Americas (AFEA) business group split into two separate business groups:
G4-13

Amcor Flexibles Europe, Middle East and Africa (AFEMEA) and Amcor Flexibles Americas (AFA); this change

will allow Amcor to build a foundation for growth in these regions. These two groups, along with Amcor Rigid
Plastics (ARP), Amcor Flexibles Asia Pacific (AFAP), and Amcor Tobacco Packaging (ATP) comprise our five
G4-5

business groups.

Amcor
Sustainability GRI Report 2016 14
MEET AMCOR
LIMITED (continued)

In FY16, we made several strategic acquisitions to grow our business.

G4-13
Acquisitions made in FY16 were:

COMPANY, COUNTRIES BUSINESS GROUP PRICE SITES INCLUDED

Cape Town
Durban (2)
Nampak, South Africa AFEMEA $22M
Port Elizabeth
Johannesburg

Souza Cruz, Brazil ATP $30M Cachoeirinha

Deluxe Packages, USA AFA $45M Yuba City, CA, USA

Alusa (Chile)
Peruplast (Peru)
Alusa, Chile, Peru, Colombia, Argentina AFA $435M
Aluflex (Argentina)
Flexa (Colombia)
Dayton, OH, USA
Kailua Kona, HI, USA
Encon, USA ARP $55M
Dallas, TX, USA
Burlington, WA, USA

Plastic Moulders, Canada ARP $30M Queenstown, ON, Canada

Pondicherry
Packaging India Private Ltd AFAP $26M Sitarganj
Cuddalore

BPI China AFAP $13M Xinhui

We have our 31,761 co-workers in over 195 manufacturing,


distribution, and office locations in over 40 countries.

Amcor
Sustainability GRI Report 2016 15
HOW WE
REPORT
This report was prepared in accordance with the Global Reporting Initiative’s (GRI) Sustainability Reporting

G4-32
G4 Guidelines at the Core level. We also publish a shorter Sustainability Review (available at

amcor.com/sustainability), which provides a summary of our sustainability approach and performance.

Selected data has been assured; please see the final page for the Assurance Statement.

This report covers all locations wholly-owned and majority- controlled by Amcor during the entire

G4-28
G4-17
reporting period (FY16: 1 July 2015 to 30 June 2016), unless otherwise specified for certain indicators. This

covers all five of our business groups.

In the 2016 edition of its annual research report,

the Australian Council of Superannuation

Investors (ACSI) benchmarked the public

disclosures of material environmental, social,

and governance (ESG) risks of S&P/ASX200

companies and determined Amcor’s reporting

to be “Leading” for the sixth consecutive year.

This is the highest ranking on the scale and was

awarded based on the thoroughness, timeliness,

and sophistication of Amcor’s ESG reporting.

Amcor
Sustainability GRI Report 2016 16
AMCOR’S MATERIAL
ISSUES
At Amcor, we value our stakeholders–customers, co-workers, shareholders, the environment, suppliers,

consumers, local communities, and industry groups–and make a concerted effort to determine environmental,

social, and governance issues important to them. Based on this year’s materiality assessment, we have

identified the following highly material issues:

Materiality Matrix 2016


CARBON EMISSIONS
ENERGY EFFICIENCY OH&S

WASTE (OPERATIONS)

PACKAGING WASTE:
RECYCLING AND LITTER

SUSTAINABLE SOURCING
Influence on stakeholder assessments and decisions

WATER USE RAW MATERIALS IMPACTS

PRODUCT QUALITY, SAFETY


COMMUNITY EMPLOYEE
ENGAGEMENT ENGAGEMENT

SUSTAINABLE HUMAN RIGHTS


BIODIVERSITY LOSS FORESTY MORE TARGETS, PUBLIC EDUCATION BETTER
NUTRITION OF MEASURES COMMUNICATION
FAIR TRADE, PACKAGED FOODS
AGRICULTURAL RENEWABLE PACKAGING
CLIMATE CHANGE ADAPTION ENERGY USE LEADERSHIP
COMMODITIES OPPS. INNOVATION AND
LIFE CYCLE OPTIMIZATION
WOMEN'S ECONOMIC APPROACH
MATH, SCIENCE NATURAL CAPITAL EMPOWERMENT CUSTOMER
EDUCATION
SUSTAINABLE TRANSPORT COLLAB. OPPS.
PHYSICAL FITNESS ENERGY
ANIMAL WELFARE FOOD SYSTEMS
EFFICIENT
COST/ENV. IMPACT TRADEOFF
BUILDINGS
RAW MATERIALS
VOCS
ADVOCACY AND
SCOPE 4
INDIGENOUS SMOKING AND INDUSTRY LEGISLATION/ERP
PEOPLE'S RIGHTS HEALTH IP RIGHTS COLLABORATION

Signficance of economic, envirnemtal, and social impacts on Amcor

Please note, all issues in the top right corner of the matrix are considered to be highly material for our

business and are therefore addressed in this report. We have also chosen to report on three additional issues:

Water Use, Life Cycle Approach, and Volatile Organic Compounds (VOCs).

For a complete list with definitions as well as a thorough explanation of our process, please see Appendix 2 of

this report.

Amcor
Sustainability GRI Report 2016 17
PLANNING FOR THE FUTURE -
RESPONSIBLE PACKAGING 2.0

TAKING A LEADERSHIP ROLE IN PROMOTING RESPONSIBLE


PACKAGING
Our approach
Responsible packaging makes a valuable contribution to sustainability by protecting the products that

consumers need, minimising product spoilage or breakage, preserving the resources invested in the product

and ensuring that the product reaches the consumer fit and safe for its intended purpose.

As a leading global packaging company, we understand the positive effect we can have by sharing our

expertise in responsible packaging solutions with the industry. To promote responsible packaging, we:

Products and Services


DMA
• Contribute to government and NGO policies on topics such as recycling, waste reduction, and use and

disposal of packaging;

• Promote the role and benefits of responsible packaging by presenting at conferences and seminars around

the world; and

• Participate in industry forums and groups.

Our performance
Besides the sustainability of Amcor packaging itself, customers and consumers are increasingly interested in

the broader role we play in the value chain–particularly what happens to packaging once it has been used. We

are prepared to take a leadership role in addressing this issue.


Consider some of our current efforts:

Defining a plastics economy in which plastics never become waste


In May 2016, Amcor joined other Core Partners MARS, Unilever, and Veolia in the launch of the

Ellen MacArthur Foundation’s New Plastics Economy initiative. This ambitious, three-year initiative was

formed to act upon recommendations of the January 2016 report, “The New Plastics Economy: Rethinking

the Future of Plastics,” which was published at the World Economic Forum in January 2016. This report

described the material flows of global plastics and their associated economics and provided insights and

recommendations for a more effective plastics system based on circular economy principles–a new plastics

economy. With Amcor’s support, the New Plastics Economy initiative brings together key stakeholders

to re-think and re-design the future of plastics, starting with packaging. With an explicitly systemic and

collaborative approach, the initiative aims to advance the plastics value chain into a virtuous cycle of value

capture, stronger economics, and better environmental outcomes. Read more here: newplasticseconomy.org

Amcor
Sustainability GRI Report 2016 18
OUR PERFORMANCE

Keeping plastic waste out of our oceans


In October 2015, Amcor became a member of the Trash Free Seas Alliance (Alliance). Ocean Conservancy

founded the Alliance in 2011. It unites leaders from industry, conservation and academia to create

pragmatic, real-world solutions to the problem of marine debris. Backed by compelling science about

plastic marine debris, the Alliance aims to reduce the amount of plastic waste leaking into the ocean by

50 percent by 2025. The Alliance’s September 2015 report, “Stemming the Tide: Land-based Strategies

for a Plastic-Free Ocean,” outlined specific solutions starting with the elimination of plastic waste leakage

in five priority countries–China, Indonesia, the Philippines, Vietnam, and Thailand–where plastics are

entering the ocean at some of the highest rates in the world. Currently, the Alliance is determining how

to break down barriers to effective waste management. Other Alliance members include Nestle Waters

NA, Procter & Gamble, Walmart, and the World Wildlife Fund. Read more at :

oceanconservancy.org/our-work/trash-free-seas-alliance

Increasing access to recycling


Through The Recycling Partnership, (RP), a US-based recycling nonprofit, Amcor and other members provide

matching grants to US cities so they can invest in curbside recycling infrastructure. In 2015 RP supported 71

communities with 1.2 million households, leading to the diversion of 25,000 tons of recyclable materials from

landfills. Other members include the Alcoa Foundation, American Chemistry Council, American Forest &

Paper Association, the Association of Postconsumer Plastic Recyclers, and Coca-Cola.

Amcor
Sustainability GRI Report 2016 19
OUR PERFORMANCE
(continued)

Developing recycling infrastructure for flexible packaging


Most flexible packaging waste is not widely recycled. Through several partnerships, we are trying to change

this. Amcor is part of Project Reflex, a UK-based program evaluating the recyclability of films and multilayer

laminates through innovative product designs and recycling technologies, with the goal of creating a circular

economy for flexible packaging in the country. The project is co-sponsored by Innovate UK, the UK’s

innovation agency; other member companies are Dow, Unilever, Nestle, Interflex, Tomra, Suez, and Axion.

Read more about it here: reflexproject.co.uk. Through our participation in the REDcycle organization in

Australia and New Zealand, Amcor helped to

develop and implement a closed-loop based

recycling initiative that makes it possible for

consumers to responsibly dispose of soft plastics.

The cross-industry effort, Materials Recovery

for the Future, seeks to develop a mainstream

recycling solution for flexible packaging in the US,

beginning with assessment of the suitability of

current recycling technology to sort out flexible

materials. In addition to Amcor, members include

Dow Chemical, PepsiCo, Procter & Gamble,

Nestlé Purina PetCare and Nestlé USA, Sealed

Air, and SC Johnson, as well as the Association

for Postconsumer Plastic Recyclers, the Flexible

Packaging Association and SPI: The Plastics

Industry Trade Association.

As part of our ongoing partnership with the

Responsible Earthwatch Institute, fifteen Amcor co-workers

packaging makes traveled to the Great Barrier Reef in Australia to

observe, collect, and document marine debris in


a valuable
the Whitsunday Islands. The data will be used
contribution to by scientists to formulate waste-management
sustainability. recommendations that help prevent waste from

reaching beaches and the ocean in the first place.

Amcor
Sustainability GRI Report 2016 20
OUR PERFORMANCE
(continued)

Many of our co-workers are subject matter experts on sustainability issues including recycling, life cycle

assessment, and partnering for change. Our sustainability leaders often present at conferences and seminars.

This year that list included the North American PET Conference in October, the Net Impact Conference in

November, and the SustPack conference in April.

To ensure our supply chain is sustainable, we are active members in industry bodies around the world

including AIM-PROGRESS, Aluminium Stewardship Initiative, the European Organisation for Packaging and the

Environment, Flexible Packaging Association, SAVE FOOD Initiative, and the Sustainable Packaging Coalition.

Please see Appendix 3 for a complete list.

Percentage of products sold and their packaging materials that are

EN28
reclaimed by category
Recycling infrastructure and the availability of data regarding recycling rates varies widely across the markets

we serve as well as across the markets our customers serve. Therefore, a detailed picture of the recycling of

specifically Amcor-originating products is unlikely. Even data on reclaimed post-consumer packaging overall

is not complete. According to NAPCOR, an industry association of which Amcor is a member, the PET bottle

recycling rate in the US in 2015 was 30.1%. This is a drop from 2014, which NAPCOR attributes to less PET

being collected at curbside. With our participation in the Recycling Partnership (see page 19), we hope to

increase the rate. According to the European Association of Plastics Recycling, 34.7% of plastic packaging

waste was recycled in the EU in 2012.

Amcor provides mostly flexible packaging in our other geographic markets. More specific information

regarding the recycling of flexible plastic packaging is unavailable, though we estimate that very little is

recovered worldwide. Please see the previous page for details on how we are working to increase this rate.

Amcor
Sustainability GRI Report 2016 21
HOW WE MAKE
RESPONSIBLE PACKAGING

Reducing our impact on the environment


As a large, multinational company, we are committed to continuously improve and report on the

environmental performance of our operations, meeting or exceeding regulatory requirements in the regions

where we operate.

Our top priorities in this category, as well as the main ways we address those priorities, are as follows:

• Continuously improve environmental performance across Amcor sites

• Work with suppliers and customers to reduce environmental impacts across our value chain

• Help customers achieve their sustainability objectives

• Use our industry leadership to promote the benefits of responsible packaging

• Ensure sustainable sourcing and responsible and ethical procurement

• Maintain product safety through state of the art capabilities and processes

As stated in our Code of Conduct and Ethics Policy, “We are committed to prevent and minimise adverse

environmental impacts, including waste, emissions and discharges from our operations. We aim to minimise

the environmental footprint of our operations and products.” Our Group-wide Environmental Policy

reinforces this commitment and includes specific environmental management requirements. Our Group-wide

Sustainability Policy details our approach to sustainability and the key areas we focus on. These policies

outline a range of precautionary principles that guide our operational planning and management.

Our Environment Policy is supported by three mandatory environmental standards: Environmental discharges,

Cooling towers, and Community impact. These standards address the key risks our sites may pose to the

immediate environment. All sites are required to have an environmental management system in place i.e.

ISO14001 or equivalent, and to comply with the three Amcor environmental standards. The environmental

management system must be appropriate for the risk associated with operations at each site and the local

regulations associated with the site’s geographic location.

Sites without ISO14001 certification are required to conduct self-audits against our internal standards

annually. Regional Occupational Health, Safety, and Environment (OHS&E) coordinators also conduct site

audits, the frequency of which is determined by the risk associated with each site. Multiple groups across the

Company play critical roles in driving strategy, operational and product improvements, and policy initiatives

related to environmental responsibility. Our Corporate OHS&E function has primary responsibility for

environmental management systems and environmental compliance at our manufacturing and warehousing

sites as well as for our offices.

Amcor
Sustainability GRI Report 2016 22
HOW WE MAKE
RESPONSIBLE PACKAGING (continued)
Environmental performance and significant environmental matters are regularly discussed within the Amcor

group. We have also established an internal reporting process where environmental performance is reported

from each site up through OHS&E management to the Board each year. Our OHS&E team also participates

in due diligence tasks as part of our merger and acquisition activities and is involved in the integration of

acquired sites.

Products and services

Responsible packaging means much more than whether or not a package is able to be recycled. Responsible

packaging means protecting the product in the most efficient way possible through judicious use of resources.

Amcor takes a life cycle view of our packaging and focuses efforts on reducing the most significant portion

of a package’s life cycle- impact the materials used to construct the package. Our AFEMEA and AFA business

groups include sustainability assessments as a regular part of the product development process.

Our management approach to our products and services relies heavily on packaging life cycle assessments to

Products and services


DMA
mitigate negative environmental impacts of not only packaging, but also the food and products that might go

to waste from failed packaging.

Amcor
Sustainability GRI Report 2016 23
LIFE CYCLE
ASSESSMENTS

Life Cycle Assessments


Life Cycle Assessment (LCA) is a data-based technique used to assess the environmental impacts of all

the stages of a product’s life – from raw material extraction through materials processing, manufacture,

distribution, use, and disposal, or recovery and recycling. ISO 14040 is the international standard for

conducting LCAs. We use our proprietary LCA software, the Advanced Sustainability Stewardship Evaluation

Tool (ASSET™), to generate the life cycle data that allow different packaging options to be compared.

These assessments are typically undertaken during our product development process at the request of

customers. The ASSET tool and database are regularly audited by the Carbon Trust for compliance with the

PAS2050:2008 standard for cradle-to-gate calculations of greenhouse gas emissions and the GHG protocol

on product carbon footprinting. ASSET was most recently certified in October 2014. We used ASSET to

conduct 705 assessments in FY16; we now have 5,589 assessments in the database.

Extent of impact mitigation of environmental impacts of products and

EN27
services
We consider the environmental impact of the entire life cycle of our products rather than focusing solely on

the product’s recyclability. Life cycle assessments reveal that the greatest environmental impact over the life

cycle of our products is associated with the product within the packaging. Preventing loss or waste of the

packaged product and the subsequent waste of the resources embodied in that product will have the largest

environmental impact.

Materials
As a large global manufacturing organisation, we are expected to manage, minimise, and report on our

environmental impacts and increase the efficient use of raw materials and natural resources. Our Code
Materials
DMA

of Conduct and Ethics policy states: “We reduce our environmental footprint by continually improving

the efficiency of our natural resource consumption. We utilise risk management processes to control the

environmental hazards inherent in our activities.” Our strategy for minimising our environmental footprint

is to choose materials based on both their ability to protect the product as well as their environmental

footprint, using fewer materials through lightweighting or downgauging, and using post-consumer recycled

inputs when it is an option.

Amcor
Sustainability GRI Report 2016 24
LIFE CYCLE
ASSESSMENTS (continued)

We used a total of 2,381,678

EN1
Liquids Metals tonnes of raw materials in FY16
6.2% 5.9%
20.2% was timber fibre materials (e.g. paper and

EN2
cartonboard), which are from renewable sources.
Fiber
Approximately 3% of the polymers (2% of materials
20.2%
overall) were recycled input materials.

Polymer
67.7% This represents all materials purchased from

external suppliers, with the information being

sourced from procurement data. There are also

internal transfers of partially manufactured goods

between Amcor plants.

Low virgin polyethylene terephthalate (PET) prices have prevailed through FY16 due to consistently low crude

oil prices and oversupply. Concurrently, the supply of post-consumer recycled (PCR) material is low and often

of questionable quality. The resulting price premium for PCR deters many brand owners from choosing PCR.

Consequently, it is often up to consumers to make a conscious decision to purchase goods in packaging made

from recycled materials to increase the use of PCR in packaging. Some customers, including Method, choose

PCR to reduce the environmental footprint of their products and to incentivize recycling.

Many of our raw materials are directly provided to us by our customers, especially in our Rigid Plastics and

Tobacco Packaging businesses. This limits our ability to choose raw materials that incorporate recycled

materials.

Amcor
Sustainability GRI Report 2016 25
ENVIROACTION TARGETS
AND PERFORMANCE

To measure our progress against our targets, data on our greenhouse gas emissions, waste sent to landfill and

water use is consolidated in a central database called ‘EnviroChart’ and our progress is reported to the Global

Effluents, and Waste


Water, Emissions,
DMA
Management Team every six months. Key activities are included in monthly management reports compiled

by each of our Business Groups. Checking the accuracy of the data entered into the EnviroChart database

is part of the role performed by our Group Internal Audit team. Our global Sustainability Leadership Council

is responsible for coordinating improvements in operational efficiency at our manufacturing sites, resource

efficiency throughout our value chains, and product stewardship. This is done in close collaboration with our

Operations, Research and Development, Sales and Marketing teams, and Procurement departments.

Emissions

Emissions
DMA
Amcor recognizes that the emission of greenhouse gases contributes to climate change and has set targets

to reduce emissions in our EnviroAction program:

Greenhouse gas (GHG) emissions

• 10% reduction in GHG emissions intensity from FY2010-2011 by FY2015-2016; and

• 60% reduction in GHG emissions intensity from FY2005-2006 by 2030.

We are proud to announce that we surpassed our FY16 goal and reduced GHG emissions intensity by 28%.

Our sites enter energy, waste, water, and materials activity data into EnviroChart, and emissions factors are

used to convert these activities to emissions.

Our highest source of emissions is Scope 3; that is, emissions related to fuel and energy-related activities

not included in Scope 1 or 2, upstream transportation and distribution, waste generated in operations, and

downstream transportation and distribution. This number is impacted by the level of production, the mix of

raw material types, and the recycled content of raw materials we use.

Our Scope 3 emissions are estimated using information from our suppliers, consultants and conversion

factors sourced from publicly available databases contained within our life cycle analysis software. Please see

Amcor
Sustainability GRI Report 2016 26
ENVIROACTION TARGETS
AND PERFORMANCE (continued)
Appendix 4 for detailed information on how we calculate emissions.

Our combined Scope 1, 2, and 3 emissions for FY16 were 9,030,486 tonnes of CO2 equivalent.

Absolute GHG Emissions, Scopes 1, 2, 3 (Tonnes CO2e)

EN15
Direct Greenhouse Gas (GHG) Emissions (Scope 1) (Tonnes CO2e)

Energy for on-site production of heat is the major source of our direct GHG emissions (scope 1). In FY16,

absolute Scope 1 emissions decreased by 0.8% from the previous year.

Amcor
Sustainability GRI Report 2016 27
ENVIROACTION TARGETS
AND PERFORMANCE (continued)

Energy Indirect GHG Emissions (Scope 2) – Tonnes CO2e

EN16
During FY16, absolute Scope 2 emissions decreased by 0.6% from the previous year.

Activities contributing to reduction in Scope 1 and 2 emissions include: energy projects such as compressor

optimization, insulation of thermal oil systems, lighting optimization, optimization of heaters and chillers,

equipment upgrades, disconnecting equipment when not in operation, and solvent incineration.

Indirect GHG Emissions (Scope 3) – Tonnes CO2e

EN17

Absolute Scope 3 emissions increased by 5% from the previous year due to increased production, but have

still decreased 6% overall since our baseline year. On an intensity basis, Scope 3 emissions have decreased.

We achieved these reductions mainly through lightweighting, downgauging, material selection, waste

reduction, and solvent recovery.

Amcor
Sustainability GRI Report 2016 28
ENVIROACTION TARGETS
AND PERFORMANCE (continued)

Sources of Scope 3 Emissions – Tonnes CO2e

EN17 (ctd)
9,000,000
7,908,993 7,589,075 7,493,588
8,000,000 7,225,954 7,451,353
7,097,
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0
JUL 10 - JUL 11 - JUL 12 - JUL 13 - JUL 14 - JUL 15 -
JUN 11 JUN 12 JUN 13 JUN 14 JUN 15 JUN 16

Waste Energry Logistics Raw Materials

GHG Emissions Intensity Trend (Scope 1, 2 + 3)

EN18
6,000
Tonnes CO2e / US$m gross profit

5,000

4,000

3,000

2,000

1,000

Group Target

During FY16, emissions intensity reduced by 1% from the previous year.

Reduction in emissions intensity this year resulted from our continuing efforts to improve our energy

efficiency and many other activities such as product optimization, waste reduction, solvent recovery, etc. as

well as by an increase in our gross profits.

Amcor
Sustainability GRI Report 2016 29
ENVIROACTION TARGETS
AND PERFORMANCE (continued)

Effluents and Waste


Our EnviroAction targets include a goal to eventually send no waste to landfill from our facilities:

Waste to landfill

• 50% reduction in waste to landfill intensity from FY2010-2011 by FY2015-2016; and

• Zero waste to landfill is the long-term objective

Total Weight of Waste by Disposal – Tonnes

EN23
Waste produced by our sites

goes to a variety of destinations.

Effluents and Waste


DMA
Where possible, it is recycled
4% Recycled
6% either internally or by external
236,809
7%
parties. Waste that cannot
Incinerated be recycled is sent to landfill
20,253
or incineration, often with
Hazardous energy recovery, depending
83%
17,978
on local waste management
Landfill infrastructure. Waste classified
12,284
as hazardous is sent to approved

hazardous waste treatment

facilities.

Our total waste for FY16 was 287,334 tonnes, with over 80% of this being recycled. Our absolute waste to

landfill in FY16 was 12,284 tonnes (4% of our total waste). Nine tonnes of waste was composted.

Activities resulting in reduced waste-to-landfill over FY16 include: in-line recycling of extrusion trim and

conversion to industrial products, improved material management, and conducting educational workshops

at our manufacturing sites. Our AFAP business held a waste reduction campaign in FY16, which focused

on high-waste producing sites and required them to analyze their waste data and implement projects

to reduce waste. Our Flexibles site in Venturina, Italy was a winner in the Italian National Packaging

Consortium’s 2015 sustainability contest for their installation of a re-granulation system they use to recover

internal production waste.

Amcor
Sustainability GRI Report 2016 30
ENVIROACTION TARGETS
AND PERFORMANCE (continued)
The Sustainable Waste Management (SWM) team’s goals are to reduce costs, establish and implement a

waste management model for the AFEMEA sites in Europe, and to improve Amcor’s environmental impact

through reduced waste-to-landfill. Over the past 5 years ending FY16, the team has realized over 4.8M€ in

savings and over 60% reduction in absolute waste to landfill. In FY16 the SWM team collaborated with other

functional teams to focus on consolidating waste vendors, finding alternatives for sites using incineration, and

working with strategic partners for solutions for complex laminates.

A continued challenge to further waste reduction has been the lack of infrastructure other than landfills.

This is a particular challenge in South Africa and parts of the US. Our approach in these areas, therefore, is to

encourage scrap reduction.

Energy
Each business group manages its energy use through operations and procurement teams. In this aspect,

Energy
DMA
sustainability and cost savings correlate; each site strives to be as energy efficient as possible in order to

decrease costs.

Non-renewable energy consumption

EN3
In FY16 we used a total

4.2% of 4,052,420 GJ of non-


.5% renewable energy sources.
Natural Gas
Approximately 1.2% of our total
6.8%
energy consumption was from
Diesel renewable sources, primarily

from wood.
LP Gas
88.5%

Oil, Gasoline for


combustion

Amcor
Sustainability GRI Report 2016 31
ENVIROACTION TARGETS
AND PERFORMANCE (continued)

Electricity, heating, cooling, and steam use

Our total energy consumption in


1% FY16 was 13,975,731 Giga Joules.
1%

5% Electricity AFAP has launched an energy

efficiency checklist for all its

Steam sites as a way to implement

best practices across the group

Heating
including energy efficient lighting
93%
and shutting down equipment

during nonoperational periods.


Cooling

AFEMEA’s Energy Demand

Management initiative promotes

25 basic practices to save energy both through behaviors and process engineering changes. Over the last two

years, 250 projects have been implemented, leading to cost savings of more than €7M and a reduction of

25,000 tons per year in CO2 emissions.

Over the last two years, 250 projects have been implemented.

Amcor
Sustainability GRI Report 2016 32
ENVIROACTION TARGETS
AND PERFORMANCE (continued)

5,500 solar panels

were installed at AF

Winterbourne in Bristol,

UK. As of February

2016, it was the 12th

largest roof installation in

Europe, covering 11,000

square metres and

weighing 96 tonnes.

The photo-voltaic solar

panels will contribute

significant cost savings for energy and demonstrates an outstanding commitment to our Social

Responsibility value and Amcor’s sustainability objectives. Installation started on 10th April

2015 with the first green power captured on 7th December 2015.

For the next 20 years the solar panels should generate approximately 1,500 MWh of electricity

per year (about 10% of AF Winterbourne’s consumption), contribute significant cost savings for

energy at approximately £90,000 per year and reduce the site’s carbon footprint by 700 tonnes

of CO2 per year.

Volatile Organic Compounds (VOCs)


EN21

Amcor's production processes result in the emission of volatile organic compounds (VOCs) contained in inks,

adhesives, and solvents into the atmosphere. These emissions can contribute to the formation of ozone in the

lower atmosphere and thus affect the environment and public health. Amcor monitors its global solvent uses
EN21
DMA

and management systems, and has invested (and continues to invest) in technologies to capture and destroy

or reuse solvents in order to minimise solvent consumption and reduce the untreated atmospheric emissions

associated with its solvent uses. We have begun to establish a baseline of our emissions in order to consider

setting reduction targets in future years.

Amcor
Sustainability GRI Report 2016 33
ENVIROACTION TARGETS
AND PERFORMANCE (continued)

Water
All Amcor operational sites are required to have a water management plan in place. In FY16 all sites were

Water
DMA
compliant with this requirement.

Total Water Withdrawal by Source

EN8
Our water use intensity
3% decreased by 25%, and our
Purchase -
absolute water use decreased
town water
12%
by 5% compared to our baseline
Ground
year of FY2010-2011. Most
water input
17% water use is for cooling at our
Surface Rigids Plastics locations. The
water input
68%
biggest challenge for our AFAP
Non-process business in terms of water
water
use continues to be our sites

in China. In FY16 AFAP set

ambitious targets for these sites, leading to a decrease of 22% in water use. This was achieved mainly by

replacing old infrastructure.

Absolute Water Use - KL

Amcor
Sustainability GRI Report 2016 34
ENVIROACTION TARGETS
AND PERFORMANCE (continued)

Water Use Intensity Trend- KL/$M USD


As this year represents the

final year of our second set

of EnviroAction goals, we will


KL / US $m gross profit

begin a new three-year set

of EnviroAction goals in FY17.

Rather than using million dollar

gross profit as our denominator,

we will use a normalized

production unit factor. This will

remove the effect of currency

fluctuations on our emissions

reporting.

Our new goals are as follows:

GHG Waste - to - landfill A Water Management


Emissions Intensity Plan is in place at

TARGET

CO2 10%
100%
TARGET 6% OF OUR SITES
have a water management
Tonnes CO2e/production units Tonnes from FY17 to FY19
plan in place
from FY17 toFY19

Our long term goal is


Our long term goal is Our long term goal is to continue to improve
60% by 2030 Zero waste to landfill effciency of water use

Amcor
Sustainability GRI Report 2016 35
SUPPLY
CHAIN
Amcor has close to 25,000 suppliers globally; of these, approximately 2,000 suppliers provide direct raw

materials, with the remainder being indirect suppliers of support materials and services (including, for

example, production machines and associated ancillary equipment, technical support and logistics services,

IT and telecommunications, recruitment and travel agents); many of the indirect supplier transactions

represent one-off purchases. Amcor reviews its suppliers against supply and market constraints and business

impact and its most important suppliers are categorised into “strategic” and “critical” depending on the nature

and strength of relationships; of a total of approximately 110 of the most important suppliers, 50 are classified

as strategic with the rest being deemed critical.

In FY16 we spent $6,201,590,184 USD with 23,191 suppliers on the materials and services used to

G4-12
manufacture our products. A large portion of this spend goes to large, multi-national chemical companies in

Europe or North America for the polymers we use to make our plastic packaging. Whilst our global spend on

IT and professional services is managed centrally, all other procurement activities are managed within each of

our Business Groups. The Procurement function within each Business Group is responsible for the control and

assessment of vendors who supply their business.

Our approach to supply chain management is designed to support our Company values, meet our customers’

Supplier Assessment for Impacts on Society


Supplier Human Rights Assessment
Supplier Assessment for Labor Practices
Supplier Environmental Assessment
DMA
expectations and to be consistent with our precautionary approach to managing business risk. For instance,

our Supplier Code of Conduct (available online) includes principles for business integrity, labor standards,

occupational health and safety, consumer health and safety, and environmental management.

We are members of SEDEX and AIM-Progress, and also have a subscription to EcoVadis. These platforms

allow our customers to have greater insight into our business and our supply chain, and will also allow us to

follow our suppliers’ progress as they become members on these platforms. In 2015 we received a gold rating

from EcoVadis. In FY16, customers requested audits of 25 of our sites.

Back in FY15, we began to more actively engage with our suppliers to ensure a more transparent and

sustainable supply chain. This includes monitoring whether or not suppliers have signed our Supplier Code
PRACTICES
AND SOURCING
PROCUREMENT
DMA

of Conduct, conducting Risk Assessments on our key suppliers, and training procurement co-workers on the

importance of social and environmental sustainability of our supply chain.

Each of our five business groups worked to define their critical and strategic suppliers based on total spend

and relevance to business continuity and then began tracking the percentage of suppliers having signed the

Code of Conduct. Next, suppliers were encouraged to join EcoVadis for the purposes of being risk-assessed.

Amcor
Sustainability GRI Report 2016 36
SUPPLY
CHAIN (continued)
A supplier’s response to our Supplier Scorecard, 10% of which is in regards to sustainability risks and

opportunities, determines whether or not they need to be risk-assessed.

Questions on the scorecard include:

• Do you comply with local legislation on minimum wage/maximum working hours per employee?

• Do you allow your workers freedom of association?

• Do you account for contractors in your health and safety policy?

• Do you provide job safety training for workers and contractors?

• Do you have a program in place to measure and/or reduce your GHG emissions and/or energy consumption?

So far approximately 70% of our most important (strategic and critical) suppliers have been assessed by

SO10
HR11
LA15
EN33
FP1
EcoVadis and we will continue this process on a risk basis; this represents 85% of Amcor's global

procurement spend.

No suppliers have had their contracts terminated as a result of the risk assessment findings. Most of our

suppliers are major corporations subject to international regulations. Our priorities for the next two years are to

continue adding to the number of suppliers that have been risk-assessed through EcoVadis, and to determine

how to incentivize suppliers who perform well on the assessment.

Customer health and safety

and Safety
Customer Health
DMA
Our Code of Conduct and Ethics policy states: “Amcor is committed to producing high quality products that

are safe to use. We continuously improve our performance through finding safer ways to manufacture and

distribute our products.”

Protecting the health of the consumer is a priority to us and our customers. We are proud of our research

and development, quality control and manufacturing processes which ensure the safety and integrity

of our packaging. Each of our Businesses has product safety processes and systems appropriate for

their packaging type, the level of risk, the regulatory environment(s) in which their sites operate and the

requirements of their customers.

Flexibles Asia Pacific business uses product safety as a key competitive advantage and have established

internal product safety standards based on the EU regulations. These standards have five levels of

compliance, from entry level at level 1 through to expert at level 5. All sites are audited once a year for

compliance with these internal standards.

Amcor
Sustainability GRI Report 2016 37
SUPPLY
CHAIN (continued)
As raw materials were identified as the highest risk to product safety, our Flexibles Asia Pacific business

is working closely with suppliers to ensure the consistent quality of the raw materials being delivered to

their factories. Our Product Safety program offers full traceability of packaging from raw materials to

finished packaging.

They are also educating customers, end consumers and governments about product safety risks and the

importance of rigorous processes to manage product safety. All AFAP co-workers are trained on the Product

Safety Policy and agree to abide by it. Within our Rigid Plastics business, Quality Management Systems have

been in place to ensure hygiene and contamination avoidance for many years.

Within our Flexibles Europe, Middle East, and Africa business, product safety is used as one of the key

differentiators with our global customer base. The Policy defines the responsibilities for product safety across

the business. Product Safety is managed centrally within the R&D function. Support is given to the sites by

a central team who provide guidance documents, templates for compliance statements, advice on training,

maintenance of central supplier documentation, assistance with customer issues, and feedback on legislation

changes proposed and then implemented. The team maintains a state of the art testing laboratory in

Germany for all analysis required, and proactively analyses samples from sites on a yearly basis to ensure full

compliance, and further drive products to a higher standard.

The operational sites carry out self audits at least once a year, with the central team conducting an internal

audit on each site at least once every three years. They also incorporate product safety into their existing

Quality Management System i.e. that used for ISO 9001 or ISO 13485 compliance.

Sites also have an accredited hygiene certification relevant to their location and business e.g. BRC, AIB,

EN15593, ISO22000.

All packaging intended to come into contact with food is required to comply with all relevant legislation e.g.

EU, FDA etc. In the absence of specific legislation, the principles of the “Framework Regulation” EC 1935/2004

apply. For products that are intended for Medical and Pharmaceutical applications, sites follow local GMP

regulations to ensure product safety. The Flexibles Europe, Middle East, and Africa business is a member

of a number of trade associations and other bodies that actively participate in committees that influence

regulatory legislation in the area of food contact. Updates to legislation are communicated to sites along with

guidance and interpretation.

Amcor
Sustainability GRI Report 2016 38
SUPPLY
CHAIN (continued)
When developing a packaging solution for a specific customer they determine what assessments of the

PR1
packaging are undertaken. In most countries there are regulatory requirements for packaging that has

direct contact with food, beverages, pharmaceuticals and medical devices to be assessed for health and

safety impacts. Packaging products that are not for human consumption may not be subject to regulatory

requirements; the customer will determine which assessments should be conducted.

We do not report an overall percentage of significant product and service categories for this indicator.

As our packaging is only one component of a packaged product that is required to meet product health and

safety regulations our customers have the responsibility to ensure compliance. If they find our packaging to

be a contributor in any non-compliance incidents they may lodge a product liability claim.

Across our global business we had 3 incident reports from our customers during FY16 with respect to

PR2
potential product liability claims. Investigation is ongoing. No product recalls occurred.

Because a large percentage of our customers are in the food processing industry and one of our material

issues is product safety and quality, we value independent third party certification to internationally

recognized food safety management system standards.

As some Amcor sites are suppliers to other Amcor sites, reporting production volume of certified sites

may lead to double counting. Therefore, we have elected to report the percentage of sites that are third

party certified to those standards, using this as a proxy for this indicator. Further, because many of our sites

manufacture packaging for both the food and pharmaceutical industries, we have included sites that are

certified for pharmaceutical and medical device quality standards as well.

Of our 151 manufacturing sites, not including those making tobacco packaging, 103 were certified in one
FP5

of more of the following certification schemes: British Retail Consortium, GAP, GFSI, Good Manufacturing

Process, HACCP, or ISO22000. This represents about 68% of our manufacturing sites.

Amcor
Sustainability GRI Report 2016 39
SUPPLY
CHAIN (continued)

Investment
Our due diligence and integration processes include the requirement that the Amcor Code of Conduct and

Ethics policy is adopted by all parties and employees of acquired businesses. The Code of Conduct includes

recognition of mutual respect, non-discrimination, freedom from harassment, freely chosen employment,

protecting child rights, compensation, working hours, freedom of association and collective bargaining. Co-

workers and third parties can raise grievances via our independent Whistleblower service. All complaints

received by the third party Whistleblower service provider are referred to the relevant Whistleblower

Committee (Human Resources or Audit and compliance). In collaboration with the relevant business group

or the internal audit function, an investigation is conducted in respect of each complaint and the results

are reported to the Board. In FY15 Amcor switched to a new third party Whistleblower Service provider to

increase access from four to 25 languages. Complaints are now also accepted online, in addition to reporting

by phone

All employees are required to read and acknowledge understanding of the Amcor Code of Conduct and

Ethics policy as part of the new employee induction process. The Code of Conduct includes statements about

human rights.

Consolidated data on the total hours of employee training concerning human rights is not available as training

is managed at site level.

Amcor
Sustainability GRI Report 2016 40
HAVING A POSITIVE
SOCIAL IMPACT

Safety
Amcor strives to provide a safe and motivating workplace for our 31,000 co-workers around the world. Our

Safety
DMA
related priorities are:

• Realising our goal of “No Injuries”

• Developing and maintaining a diverse and engaged workforce, and

• Protecting human rights and sound labor practices in all of our sites globally.

Realise our goal of “No Injuries”


Our approach
Our Global Safety Steering Committee (GSSC) monitors safety performance,

shares best practices across the business, and actively addresses safety trends in our businesses.

Amcor has mandatory global standards for safety, environmental management and security. To assure

compliance against these standards, internal audits are conducted at least annually and external audits are

done every three years.

Amcor's business groups are required to report monthly to the company’s board on compliance with these

standards and local rules.

Our performance
To maintain a safe workplace everywhere, we have focused on the following areas in 2016:

1. Eliminating serious injuries through attention to critical risk areas,

2. Developing and applying criteria to determine operating sites that require particular consideration,

3. Strengthening processes and sharing what we learn about fire prevention, and

4. Distributing best practices across all business groups in order to achieve

‘No Injuries’.

We are proud of our world-class safety performance, measured against two industry standard criteria -

Lost Time Injury Frequency Rate (LTIFR) and Recordable Case Frequency Rate (RCFR).

Amcor
Sustainability GRI Report 2016 41
HAVING A POSITIVE
SOCIAL IMPACT (continued)

Recordable case frequency rate (RCFR)

LA6
Number of recordable cases per million hours worked

4.0

3.4

2.6
2.0 2.0 2.0

Lost time injury frequency rate (LTIFR)


Number of injuries resulting in at least one full work day lost per million hours worked

2.4
2.2
1.9
1.6
1.2
0.9 0.8 0.8
0.7
0.5 0.6 0.6

2007 to 2012 data includes the demerged Orora business. 2013 to 2016 are shown exclusive of Orora. 2016

and 2015 includes acquirred businesses from the first day of ownership. 2007 to 2014 excludes acquired

businesses for the first 12 months of ownership.

*Frequency rates reported in charts cover full-time level.

Amcor
Sustainability GRI Report 2016 42
HAVING A POSITIVE
SOCIAL IMPACT (continued)
Our LTIFR is measured by calculating the number of injuries resulting in at least one full work day lost per

million hours worked. In 2016, the LTIFR was 0.56, corresponding to 41 injuries across our global business.

Our RCFR is measured by calculating the number of medical treatment cases and lost time injuries per million

hours worked. In 2016 the RCFR was 2.00, corresponding to 147 injuries across our global business. Among

contractors, there were 4 LTIs and 17 RCs in FY16.

REGION LTIFR, CONTRACTORS RCFR, CONTRACTORS

North America 0 0

Oceania 6.2 12.4

Western Europe 1.4 4.3

Africa 0.0 2.3

Asia 0.0 1

Eastern Europe 0.0 0.0

Latin America 0.4 1.2

This year, a fatal accident occurred at our plant in Froges, France. A contractor suffered a fatal injury while

performing maintenance at the site. Following the incident, we continue to review procedures and implement

improvements to reduce the risks of similar incidents in the future.

We also track several other important safety measures, which helps us continuously develop and introduce

new programs and processes in order to mitigate serious injuries. These include:

• The Frequency of First Aid Injuries, which tracks one-time treatments for minor injuries, such as

scratches, cuts and burns, that do not require medical care;

• The Severity Rate of Injuries using the number of days a co-worker is not at work as a scale to identify

injury severity;

• The Near-Miss Frequency Rate measures co-worker reports of unsafe conditions or events, even when

an injury does not occur; preventative action is then taken to address the issue;

• The Behavioural Audits Frequency Rate, a measure of how often audits are conducted to look at safety

behaviours company-wide, including those of co-workers, contractors and visitors; and

• Fire Ignitions, which represent incidents involving smoke or fire and help us identify root causes- such as

electrical, friction, static or hot work- and implement corrective actions.

Amcor
Sustainability GRI Report 2016 43
HAVING A POSITIVE
SOCIAL IMPACT (continued)
This year we launched Amcor’s first Global Safety Campaign, a concerted and high profile worldwide effort

to manage risks associated with high-frequency or high-risk incidents and injuries. This initial campaign

focuses on hand safety, requiring sites to review and update procedures, risk assessments, and training

related to machinery guidelines. Future global campaigns will address other areas of highest risk that can

have the greatest impact on improving workplace safety.

In FY16 we also launched the Critical Hazard Alert process, which highlights hazards deemed to be the

most critical and widely applicable across Amcor sites. Each site’s General Manager and OHSE Manager

receive the Alert, along with specific actions to reduce or eliminate the hazard. Each site is required to

report their progress.

Another example of how we actively invest in improving safety for our co-workers is our “Second Party

Auditor” program. In this program, representatives from one Amcor site audit the safety systems at another

site. This year 30 additional co-workers were trained to complete audits.

Hand safety at Amcor


In March 2016, Amcor launched a series of company-wide safety campaigns to achieve goal of “No

Injuries.” These global campaigns focus on raising awareness and increasing focus on the major risk areas

that are causing injuries to Amcor employees. The first campaign focused on injuries to hands and fingers.

As of June 2016, impressive results were seen in a reduction in the number of hand and finger injuries. Site

leaders held sessions related to hand safety. These topics included identifying hand safety risks at each

site, preventative measures and correct procedures to minimize hand injuries.

In the four months leading up to the launch of the campaign, there was an average of 9.4 hand injuries per

month. In the first month after the launch of the campaign, there were seven injuries, and in May there was

only one hand injury across Amcor. Additionally, over the first three months of the campaign, over 3000

corrective actions were identified during the site audits. The next phase of the global safety campaign is

the implementation of these corrective actions.

Amcor
Sustainability GRI Report 2016 44
HAVING A POSITIVE
SOCIAL IMPACT (continued)
Here is how our site in Los Olivos, Peru promoted the safety campaign in the workplace and in the community.

Los Olivos, Peru

The team at Los Olivos also involved their families and communities to learn more about the site’s safety

commitment and focus on reducing hand and finger injuries. Children created a safety banner with the

G4-10
slogan, “La Seguridad en Mis Manos,” or “Safety is in your hands”.

EMPLOYEES AMCOR EMPLOYEES CONTRACTORS TOTAL EMPLOYEES

Rigid Plastics 5,837 488 6,325

Flexibles Group 23,465 1,635 25,100

Flexibles Europe, Middle East and


11,163 300 11,462
Africa

Flexibles Americas 1,796 67 1,863

Flexibles Asia Pacific 6,568 816 7,384

Tobacco Packaging 3,938 453 4,391

Corporate 323 13 336

Total Amcor Group 29,625 2,136 31,761

Amcor
Sustainability GRI Report 2016 45
HAVING A POSITIVE
SOCIAL IMPACT (continued)

Employees, including contractors

North America
9%
4% Eastern Europe
18%

11% Oceania

Latin America

22% 33%
Asia

Africa
3%

Western Europe

Number of workers by country

320 1,200 4,600

15 780 2,500 *This map includes only manufacturing employees.

The majority of work within our operations is performed by Amcor co-workers onsite. Variation in employment

numbers is driven by acquisition or divestment of operations. Approximately 89% of our co-workers are at sites
G4-11

that recognize collective bargaining agreements, and 56% are covered by such agreements.

Amcor
Sustainability GRI Report 2016 46
HAVING A POSITIVE
SOCIAL IMPACT (continued)

Employment
We believe that engaged co-workers are highly productive, more customer-focused, safer and likely to

Employment
DMA
stay with the organisation longer. We prize our workforce of 31,761 co-workers in 43 countries and have

implemented specific strategies to keep them engaged.

Every two years, we conduct an engagement survey of all coworkers in multiple languages. This enables

us to monitor co-worker engagement and formulate action plans in response to the specific feedback we

receive. Our last survey was conducted in early 2016 and 94% of co-workers responded. Compared to

the previous survey (2014) all but one survey item was rated more favourably and our overall employee

engagement levels at Amcor have improved. Also, our “Outperformance” culture is well embedded within

our organisation in many important areas and we see very strong results around focus on safety, customers,

quality and cost. Areas in which we can improve include more open communication from leadership as well

as more support for professional development. Teams have begun working on addressing these areas, and

additional action will be taken. As evidence that Amcor acts on feedback from the engagement surveys,

55% of co-workers agreed with the statement, “I have seen positive changes taking place as a result of

previous surveys.”

Our Human Resources function’s top priority continues to be acquiring and recruiting new and emerging

talent. Over FY16 we continued our efforts to attract top talent to Amcor through our Accelerated

Career Development Program, the goal of which is to build a pipeline of future commercial leaders. We

focused especially on candidates with backgrounds in emerging markets and plan to hire a second cohort

in April 2017.

In previous reports we mentioned PeopleLink, a global human resources information system. The rollout

was temporarily postponed due to the vast differences in workforce regulation across the many countries

in which we operate. The rollout will continue, and when complete, will provide consolidated data, including
LA1

the total number and rates of new employee hires and employee turnover by age group, gender, and region.

Training and education


We invest in training and education for our co-workers because we understand that as our co-workers’
Education
Training and
DMA

capabilities increase, so too does Amcor’s.

Amcor
Sustainability GRI Report 2016 47
HAVING A POSITIVE
SOCIAL IMPACT (continued)
In our Rigid Plastics business group, training and development for our office and salaried co-workers is

LA9, LA11
managed in our SuccessFactors learning management system. We know that our system is effective because
satisfaction scores for all training and development related questions on our bi-annual engagement survey
results have increased. The evaluation scores of our training programs consistently score at 4.5 or above on
a 1-5 scale. Feedback for all classes is used to continuously improve course content. Training for non-salaried
co-workers is managed at the site level, and not available on a consolidated basis. Our CEO Outperformance
Awards recognize co-workers from around the business for achievements in Safety, Customer Focus, and
“Being Amcor”- our Values and Operating Model, the Amcor Way. Finalists for the awards included AFAP’s
“Safety Beyond the Workplace,” ARP’s “The Oliva Project,” and ATP’s Work-life Balance team.

Diversity and engagement


Amcor strives to achieve ‘Talent through Diversity’ and has adopted a formal diversity policy, which is
available on Amcor’s website at amcor.com/about_us.

The Board has established the following measurable indicators for advancing gender diversity within Amcor.

Opportunity
and Equal
Diversity
DMA
These are reported annually to the Board and the Human Resources Committee:
• the number of women employed at Amcor as a proportion of the total workforce (19% in FY16) ; and
• the proportion of women employed at leadership level (defined as middle management including plant
level management and more senior management): 29% in FY16.

The Board itself includes two female Directors, representing 25% of total Directors. In FY16 we consulted with
other organizations that have strong levels of diversity to determine how we can improve. One practice we
have continued is to be sure that there is at least one female on each shortlist for executive level positions.
Feedback from our current female leaders is that at Amcor, they have strong sponsorship from above, helpful
mentors, healthy work-life balance, and the latitude required to achieve their responsibilities.

Percentage of females in Amcor workforce


LA12

Directors

Leadership

All Co-workers

Amcor
Sustainability GRI Report 2016 48
HAVING A POSITIVE
SOCIAL IMPACT (continued)

Community outreach
Amcor co-workers believe strongly in our ability to positively impact the communities in which we live and work.

Our top priorities in this category, as well as the main ways we address those priorities, are as follows:

• Support the communities where we live and work

• Use Amcor’s packaging expertise to help solve global issues

Our approach to community engagement is formalised in our Environmental Policy, which states that we will

Communities
Local
Performance,
Economic
DMA
“communicate openly with our co-workers and the community about our performance”.

This policy is supported by a global Community Impact standard. This standard requires our sites to conduct

SO1
risk assessments to identify and manage all potential nuisance and other impacts on their local and broader

community. It also requires each site to work with local regulators to understand, monitor and control

community impact and to respond to complaints or enquiries received from the community. Our sites are

also required to positively engage with the local community and keep records of having done so to support

the development of future engagement strategy. Sites are audited for compliance with this standard as part

of our audit program. In our Rigid Plastics business group, 74% of sites have a risk assessment in place, and

100% have active community development programs.

Stakeholder engagement is a requirement of our sites for their environmental management systems to be ISO

140010 certified. Many sites also include stakeholder communications as part of crisis response within their

business continuity plans.

Community complaints are recorded and responded to by management at the appropriate Amcor site. All

sites may have procedures in place to govern the management of complaints as part of their environmental

management systems. Any concerns are investigated and responded to by site management or the

appropriate departmental function.

Responsibility for setting and enforcing global standards lies with our Corporate Safety, Environment &

Sustainability function. Day to day operational responsibility for community engagement is undertaken by site

management.

Amcor
Sustainability GRI Report 2016 49
HAVING A POSITIVE
SOCIAL IMPACT (continued)
Our Community Program provides financial support to sites for projects aligned with the following priorities:

1. Increase access to food and essential products,

2. Reduce the environmental impacts of packaging, and

3. Educate people about how responsible packaging contributes to a more sustainable future.

Examples of work undertaken through the Community Program include:

• Over 70 co-workers from Flexibles Singapore took to kayaks and bicycles to clean up the local

waterways and raise awareness on the importance of recycling.

• Fresh lime, birch and apple trees now decorate the garden of a local children’s hospital in Novgorod,

Russia thanks to a team of volunteers from Tobacco Packaging. Over 75 trees were planted for sick

children to enjoy during their stay.

• In a second community initiative in Russia, Tobacco Packaging co-workers from St. Petersburg organised

a festive celebration and tree planting day at a local orphanage, bringing joy and nature to the children

living there.

• Co-workers from Rigid Plastics delivered the gift of light to neighbourhoods in Colombia and Ecuador.

Partnering with the “Liter of Light” Foundation, the Amcor team installed 40 self-sustaining street lights

in four cities in four days. Built using PVC pipe, plastic bottles, solar panels and high performance LED

bulbs, the street lights provide around 70,000 hours of light over their life span.

• Amcor co-workers supported a community centre in Lisbon, Portugal to assist disadvantaged families

access safe food. Amcor supplied new kitchen equipment and held workshops on food preparation and

storage, food waste reduction and healthy living.

During FY16, we spent $1.16M USD toward Community Program initiatives and sponsorships. In addition,
EC1

many Amcor locations spend additional monies toward community investments such as community event

sponsorships, food drives, and other activities in which co-workers are invested.

Outcomes of our FY16 Community Program grants include:

• 7,060 people with increased quality of living

• 5 organisations assisted to provide food and other essential products

• 225 people educated on responsible packaging or environmental issues

• 8 sites with improved environmental conditions

• 7 communities with improved recycling facilities

• 3,500 hours of community volunteering by Amcor co-workers:

Amcor
Sustainability GRI Report 2016 50
HAVING A POSITIVE
SOCIAL IMPACT (continued)

Community Program project spending from FY15-FY16 has been spread throughout our areas of operation:

REGION SPENDING, COMMUNITY PROGRAM

Emerging Markets (Latin America, Asia) $648,044

North America $223,028

Australia/New Zealand $87,005

Europe $179,679

Total $1,137,756

* This number omits a minor portion of spend which is given as awards to local teams which they donate to charities of their choice.

Our central sustainability team manages four application periods per year, when co-workers from across our

global business may submit an application for Community Program funding. The co-worker’s site makes initial

payments, and then submits receipts for reimbursement along with documentation of results. This ensures

funds are spent as intended.

Partnership with the World Food Programme


In FY14 we launched a partnership with the World Food Programme. The expertise that Amcor has provided

has allowed WFP to reach more people in challenging humanitarian contexts with well-packaged, safe

and nutritious food. Recognizing the necessity of quality packaging in transporting food, WFP and Amcor

investigated ways during the first year of the partnership to optimize WFP’s packaging operations for lipid-

based nutrient supplements, blended, fortified cereal and vegetable oil. Amcor also advised WFP’s Supply

Chain Division about ways to reduce food losses and to identify quality packaging materials that will improve

shelf life.

In the second year of the partnership, a packaging specialist was recruited by WFP to assist on packaging

systems, specifications and procedures throughout the organization’s humanitarian food supply chain.

Amcor
Sustainability GRI Report 2016 51
HAVING A POSITIVE
SOCIAL IMPACT (continued)
The expert, who was brought on board through a competitive process in September 2016 with the support of

Amcor, will be engaged in projects that can have a significant impact on WFP operations and will act as the

focal point for all potential packaging issues, problem-solving any obstacles that come to light and identifying

ways for WFP to improve its packaging standards.

A POSITIVE
ECONOMIC IMPACT
Our top priorities in this category, as well as the main ways we address those priorities, are as follows:

• Achieve sustainable business growth

• Demonstrate best practice governance and risk management

• Contribute to local economies (wages, taxes, local suppliers, etc.)

The Board of Directors of Amcor Ltd is responsible for the corporate governance of the Company. The Board
G4-34

provides strategic guidance for the Company, and effective oversight of management. The Board guides

and monitors the business and affairs of Amcor Ltd on behalf of the shareholders by whom they are elected

and to whom they are accountable. Board Committees include: Audit and Compliance, Executive, Human

Resources, and Nomination. Charters and membership of each committee is available on our website.

Amcor
Sustainability GRI Report 2016 52
A POSITIVE
ECONOMIC IMPACT (continued)

The Board operates in accordance with the principles set out in its Charter, which is available in the Corporate

G4-45
Governance section of Amcor’s website and summarized in our Corporate Governance statement. Please see

the Annual Report for more information about our Board of Directors.

G4-47
Our Board and senior executives have responsibility for driving and supporting risk management across

the Company. Our Enterprise Risk Management (ERM) program incorporates the principles of effective

risk management, as set out in the Global Risk Management Standard ISO31000. Amcor’s ERM program is

embedded in existing business processes and seeks to:

1. Enhance shareholder value by improving the probability of achieving objectives;

2. Encourage a high standard of accountability at all levels;

3. Support more effective decision making though better analysis of risk exposures;

4. Enable the Board to fulfill its governance and business requirements; and

5. Support the sign-off by management of Amcor’s compliance with the ASX Corporate Governance

Council’s Corporate Governance Principles and Recommendations.

Each business group then has responsibility for implementing this approach and adapting it, as appropriate,

to its own circumstances. Having an executive level Risk Champion in each business group helps ensure

a consistent approach to risk management. In addition, each year Group Risk conducts two focused risk

assessments for the Business Continuity Program.

In support of this approach our Board sets the risk appetite of the organisation to take account of safety,

environment, reputation, operational, project and corporate governance risks, in addition to strategic and

financial risks. Our assurance function, which includes the internal audit team, plays a key role in reviewing

the effectiveness of our compliance and control systems, including risk management. Findings from reviews

are communicated in formal reports to the Board and the Audit and Compliance Committee, and then

appropriate action is taken to support the maintenance of a strong control environment.

Amcor
Sustainability GRI Report 2016 53
A POSITIVE
ECONOMIC IMPACT (continued)

Ethics and integrity

G4-56
Amcor recognises its responsibilities as a global producer of packaging materials and services, and is

committed to being a responsible corporate citizen, having regard to the OECD Guidelines for Multinational

Enterprises. Our Corporate Code of Conduct and Ethics Policy and our Sustainability Policy can be

downloaded from: amcor.com/policies.

Our Belief Statement, Core Values and the Amcor Way operating model are described earlier in this report.

While our FY16 revenues were $9.4 billion, our operating costs were $5.5 billion. We paid $2 billion in wages

EC1
and benefits to our employees, $480M in dividends and interest, and $170M in taxes. $1.16M USD was spent

toward our Community Program activities and partnerships. This leads to $721M “economic value retained.”

Our Risk & Compliance, Legal, and Audit teams have developed a Fraud Prevention Program to prevent fraud,

detect it should any occur, and respond appropriately. This approach is based on the Open Compliance and

Ethics Group’s (OECG) GRC Capability Model.

ITEM FY16 $M USD

A. Direct economic value generated 9,520.1


Sales 9,421.3
Other income 98.8
B. Economic value distributed 8,893.96
Operating costs 6,022.7
Employee wages and benefits 2,066.0
Payments to providers of capital, including dividends and interest 633.8
Payments to governments
Government taxes 170.3
Oceania 5.3
Western Europe 65.3
Eastern Europe 27.7
North America 26.9
Latin America 21.7
Asia 21.9
Africa 1.5
Voluntary community investments 1.16
C. Economic value retained (A-B) 626.14

Amcor
Sustainability GRI Report 2016 54
LOOKING AHEAD

Over the past year we have achieved success in our

sustainability efforts. We take Amcor’s leadership role

seriously and are determined to extend on this work

over the long term.

We have launched a new set of EnviroAction goals

to achieve additional reductions in GHG emissions,

waste sent to landfill, and water use. We will continue

our partnerships with organizations including the

Ellen MacArthur Foundation, The Trash Free Seas

Alliance, the Recycling Partnership, and the World

Food Programme.

Please check out our website amcor.com/sustainability

to learn more or to provide feedback.

Amcor
Sustainability GRI Report 2016 55
APPENDIX 1

This report covers the period from 1 July 2015 to 30 June 2016, noted as “FY16” throughout the report. Our

G4-30
G4-29
G4-28
previous report covered Financial Year 2015 and was released in October 2015. We report on an annual basis.

Amcor
Sustainability GRI Report 2016 56
APPENDIX 2

Stakeholder engagement and materiality assessment


Report content is driven by stakeholder engagement and determined using both internal and external

G4-18
processes, including determining material topics and prioritisation. Our Corporate Safety, Environment, and

Sustainability function determines the content of the report. We referred to GRI’s Guidance on Defining

Report Content when determining the content for this report, following the steps described below:

Step 1: Identifying relevant topics

Our stakeholders are those who have a direct relationship to, or are impacted by, our business. They include

G4-24
investors and suppliers of capital, co-workers, customers and suppliers, industry bodies, governments, the

media and the communities in which we operate.

Every year, Amcor conducts a materiality assessment to identify material issues through the following actions,

aligned with the principles of the AA1000 Stakeholder Engagement Standard:

G4-25
• Input from the Sustainability Leaders within each Amcor Business

• Analysing the public documents released by stakeholder organisations

• Identifying the social, environmental and economic aspects associated with Amcor’s current business

plans, strategy, risks and opportunities.

• *Every third year only: Interviewing representatives of the stakeholder groups who have a direct

G4-26
relationship to, or are impacted by, the economic, social and environmental impacts of our operations for

the explicit purpose of conducting a materiality assessment, as opposed to our regular interactions in the

course of doing business

In FY16, our assessment focused on co-workers, customers, and suppliers.

This process generates a list of issues that reflect our significant economic, environmental and social impacts

as well as topics that would substantively influence the assessments and decisions of stakeholders. We then

compared the list against the sustainability-related risks and opportunities identified by Amcor’s Enterprise

Risk Management (ERM) program. Any issues that had not been identified by the ERM program were fed

back into it for future consideration by our businesses, thereby enhancing the rigour of our approach to

sustainability and its integration with the ERM program.

The key topics and concerns raised by stakeholders are incorporated into our materiality assessment process.
G4-27

The relevant sections of this report will share how we respond operationally to highly material issues.

Amcor
Sustainability GRI Report 2016 57
APPENDIX 2
(continued)

Step 2: Prioritisation

Each issue was scored according to the strength of the stakeholder’s publicly stated goals around the issue.

Step 3: Validation

Using the final list of prioritised issues, we mapped the highly material issues to the appropriate GRI Aspect,

as per the GRI reporting protocol. We selected indicators within each GRI Aspect that best matched our

prioritised issues and that ensured completeness of the report.

The following table lists the issues determined to be highly material by our 2016 materiality process.

Appropriate G4 Aspects are also listed as well as the internal and external boundaries for each aspect as it

pertains to our value chain. Note the definitions of the following terms:

Internal:

• Amcor Business Groups: All five divisions within Amcor including Flexibles Europe, Middle East and Africa

(AFMEA), Flexibles Americas (AFA), Flexibles Asia Pacific (AFAP), Rigid Plastics (ARP), and Tobacco

Packaging (ATP)

• Parent company: Amcor Ltd, the global business entity

External:

• Customer: Amcor’s customers e.g. food and beverage manufacturers

• Supplier: A direct supplier of goods and/or services to Amcor’s manufacturing process

• Consumer: Individuals who purchase and consume packaged goods

• Industry: Companies within the packaging industry and within the industries of Amcor customers

• Distributors: Logistics suppliers who transport packaging and packaged goods

• Local communities: Communities in geographical area around an Amcor location

• Governments

• Society at large

Amcor
Sustainability GRI Report 2016 58
APPENDIX 2
(continued)

The following tables list the material issues that were used to define report content:

G4-27
G4-21
G4-20
G4-19
ISSUE DETAIL G4 ASPECT / BOUNDARY
INDICATOR(S) TO
REPORT
Environment
Addressing environmental issues around end of
life for packaging materials. The role of product • Parent company
development and innovation in this. • All Amcor business
groups
Packaging waste; Importance of having waste management and Environmental -
• Customers
Recycling and Litter recovery infrastructure in place. Recyclability of Products and Services-
• Suppliers
polymers. Using appropriate raw materials that • Consumers
are not just recyclable, but have more positive • Society at large
long term impacts on the environment.
• Parent company
• Amcor Business Groups
Carbon foot printing, understanding carbon Environmental -
• Customers
Carbon emissions emissions from factories, and from product Emissions
• Distributors
distribution EN15-18
• Governments
• Society at large
Environmental-
Strategically selecting raw materials to improve
Materials / EN1-2 • Amcor Business Groups
Raw materials impacts environmental impacts.
Product Responsibility- • Supplier
(environment) Innovations in materials selection and product
Customer Health and • Customers
design.
Safety / PR1
• Parent company
The energy required to power manufacturing • Amcor Business Groups
Energy efficiency EN3
processes to produce products • Customers
• Local Communities
• Parent company
• Amcor Business Groups
Water Use Water used during manufacturing processes EN8
• Customers
• Local Communities
• Parent company
• Amcor Business Groups
Waste, Operations Water produced from manufacturing processes EN23
• Customers
• Local Communities
• Parent company
• Amcor Business Groups
The release of VOCs as a result of • Customers
Volatile Organic
manufacturing processes and their effective EN21 • Distributors
Compounds (VOCs)
management • Governments
• Local communities
• Society at Large
Workplace
Importance of safety; stakeholders' high
Labor Practices
expectations of Amcor's performance over
and Decent Work-
time; how Amcor responds to lower standards • Parent company
OH&S Occupational Health
in emerging markets? Process safety as well • Amcor Business Groups
and Safety
as personal safety. Includes joint venture
LA6
operations
Community engagement activities that
Labor Practices
build employees' sense of pride; recruitment
and Decent Work-
and retention based on culture and values; • Amcor Business Groups
Employee Employment, Diversity
demonstrating to employees that Amcor is a • Parent company
engagement and Equal Opportunity
responsible employer; Work-life integration;
LA12
Diversity of gender, ethnicity, and age of
workforce; Talent and Recruitment

Amcor
Sustainability GRI Report 2016 59
APPENDIX 2
(continued)

ISSUE DETAIL G4 ASPECT / BOUNDARY


INDICATOR(S) TO
REPORT
Marketplace

Design with end of life in mind, design with Environmental- • Amcor Business Groups
Life Cycle Approach environmental outcomes in mind. Life cycle Products and Services • Customer
cost and impacts. / EN27 • Suppliers
• Parent company
Product
• Amcor Business Groups
Public debate about toxic chemicals in Responsibility-
Product quality and • Customer
products, chemical migration from plastics. Customer Health and
safety • Supplier
The role of packaging in product protection. Safety
• Consumer
PR1,2, FP5
• Society at large
Environmental-
Supplier
Environmental
Assessment EN33,
Labor Practices
and Decent Work-
Supplier Assessment
Using recycled materials, responsible sourcing
for Labor Practices • Suppliers
policies, bio-based plastics, conflict minerals.
Sustainable sourcing LA15, Human • Amcor Business Groups
Traceability from point to point - traceability
and traceability Rights- Supplier • Parent company
and supply chain transparency, especially with
Human Rights • Distributor
investor pressure.
Assessment HR11,
Society- Supplier
Assessment for
Impacts on Society
SO10; Procurement/
Sourcing Practices
FP1
Community
“Social license to operate”, or level of • Amcor business groups
Community
acceptance granted to organization’s Economic- EC1 • Local communities
engagement
operations by local community

There were no significant changes in scope or aspect boundaries. G4-23

Amcor
Sustainability GRI Report 2016 60
APPENDIX 3

Externally developed charters, principles, or other initiatives


Our approach to sustainability is aligned with ISO:26000. We have regard to the OECD Guidelines for

G4-15
Multinational Enterprises, as described in our Corporate Code of Conduct and Ethics policy. Amcor supports

many industry and government initiatives on packaging including those listed in the following table. Our

operations around the world have implemented systems and processes to comply with many different

international standards. For example, many of our manufacturing operations have environmental management

systems in place that are certified to the ISO 14001 standard. Information about the standards that are in

place is provided in the relevant sections of this report.

Memberships of Associations
MEMBERSHIP STATUS OR GEOGRAPHIC
ORGANISATION

G4-16
CONTRIBUTIONS REACH
ABIPET (Brazilian organization promoting PET recycling) Associate Brazil
Member, Leadership role in
AIM-Progress
Environmental Pillar Project
Affiliate member and a representative
Association of Postconsumer Plastics Recyclers USA
on the technical committee
The Ellen MacArthur Foundation’s New Plastics Economy Member Global
European Aluminium Foil Association /Flexible Packaging Europe
Member Europe
Sustainability Working groups
European Carton Makers Association Member Europe
European Organization for Packaging and the Environment
Member Europe
(EUROPEN)
Flexible Packaging Association (FPA) Member USA
German Aluminium Association / Gesamtverband der
Member Germany
aluminiumindustrie GDA
Healthcare Compliance Packaging Council Member Europe
Indian Flexible Packaging and Folding Carton Manufacturers
Member India
Association
International Packaging Institute (IPI) Member Global
Life Cycle Initiative of the United Nations Environment Program and Member and sponsor of a knowledge
the Society of Environmental Toxicology and Chemistry (UNEP/ mining report on LCA of food and Global
SETAC) beverage packaging
National Association for PET Container Resources (NAPCOR) Member USA
The Packaging and Films Association Member UK
Packaging Council of New Zealand Member New Zealand
Plastics Export Promotion Council Member India
The Plastics Industry Trade Association/Society of the Plastics North
Member
Industry (SPI) America
Polymer and Food Protection Consortium at the University of Iowa Member US
Positive Organizations Consortium at the University of Michigan Member Global
Smither PIRA Member Global
Sterilization Packaging Manufacturers Council (SPMC) Member USA
Sustainable Packaging Coalition (SPC) Member of the Executive Committee US, Europe
The Trash Free Seas Alliance Member Global

Amcor
Sustainability GRI Report 2016 61
APPENDIX 4

How we calculate our emissions

Amcor calculates Scope 3 GHG emissions in accordance with the GHG Protocol; Corporate Value Chain

(Scope 3) Accounting and Reporting Standard. Scope 3 GHG emissions are defined as all other indirect

emissions that occur in a company’s value chain. The GHG Protocol Standard includes 15 categories of scope

3 GHG emissions which organisations are required to report. Amcor has assessed each of the categories and

reports on the following Scope 3 GHG emission categories:

• Purchased goods and services

• Fuel and energy related activities

• Upstream transportation and distribution

• Waste generated in operations

The following categories have been assessed as either immaterial in regards to emissions calculations or not

applicable to our business:

• Capital goods

• Business travel

• Employee commuting

• Upstream leased assets

• Processing of sold products

• Downstream transportation and distribution

• Use of sold products

• End-of-life treatment of sold products

• Downstream leased assets

• Franchises

• Investments

For Scope 1, 2 & 3 emissions, CO2 is the predominant gas included in the calculation as it is from combustion
of fuels, but emissions factors may include small amounts of CH4 and N2O. We do not report biogenic CO2

emissions separately from the gross direct (Scope 1) GHG emissions.

Amcor
Sustainability GRI Report 2016 62
APPENDIX 4
(continued)

Scope 1 and 2 greenhouse gas emissions are calculated based on the Greenhouse Gas Protocol: A Corporate

Accounting and Reporting Standard (Revised Edition). Global Scope 1 emission factors for fuel combustion

are based on the WRI GHG protocol; Australian emissions factors are based on the National Greenhouse

Accounts Factors 2015. Other Scope 1 emission factors are estimated assuming complete chemical reaction.

Scope 2 emission factors for most countries are sourced from the International Energy Agency CO2 Emissions

from Fuel Combustion (2012 Edition). For Australia,

Scope 2 emissions factors are sourced from the National Greenhouse Accounts Factors 2015 at a state level,

and for the USA Scope 2 emission factors are sourced from the EPA e-GRID 2015 tool at a regional grid

level. Scope 2 greenhouse gas emissions are calculated based on the Greenhouse Gas Protocol: A Corporate

Accounting and Reporting Standard (Revised Edition).

Emissions are consolidated from entities over which Amcor has operational control. We are impacted by

carbon tax and emissions trading schemes around the world, including the European Union’s

Emissions Trading Scheme, the ‘Climate Change Agreements’ program in the UK, the ‘Covenants’ program in

Belgium and the official environmental programs in Switzerland. We also pay carbon taxes in any countries

where they are applicable. We do not use emission offsets to meet our reduction targets, as we prefer to use

resources to directly reduce our own emissions.

Material categories for Scope 3 greenhouse gas emissions reporting are determined using the

Greenhouse Gas Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard.

Amcor
Sustainability GRI Report 2016 63
APPENDIX 5

Restatements of information: Each year, we adjust our FY11 baseline year data for greenhouse gas emissions,

G4-22
waste to landfill, and water use to include acquired sites. If the acquired site is able to provide data back to

the FY11 baseline year for energy use, waste generated, raw material consumption, and water usage, this data

is added to our environmental database. If acquired sites do not have existing data when integration begins,

we wait until we have 12 months of data before the sites are integrated into our reporting. We use these 12

months of data to estimate historical data back to our FY11 baseline year.

Beginning in FY16, we include safety data from acquisitions from the first day of ownership. In December 2013

we demerged our Australasian and Packaging Distribution business, now Orora Limited, and the safety data

from this business has been excluded from FY13 and beyond.

The Precautionary Principle, as defined in the 1992 UN Rio Declaration, states, “Where there are threats of

G4-14
serious or irreversible damage, lack of full scientific certainty shall not be used as a reason for postponing

cost-effective measures to prevent environmental degradation.” The Rio Declaration has informed our

approach to environmental management.

GRI Content Index

G4-32
GENERAL STANDARD PAGE NUMBER (OR LINK) EXTERNAL ASSURANCE
DISCLOSURES Information related to Standard Disclosures required by the ‘in accordance’
options may already be included in other reports prepared by the
organization. In these circumstances, the organization may elect to add a
specific reference to where the relevant information can be found
STRATEGY AND ANALYSIS
G4-1 03 + 04
ORGANIZATIONAL PROFILE
G4-3 13
G4-4 13
G4-5 14
G4-6 13 + 14
G4-7 14
G4-8 13
G4-9 13 + 14
G4-10 45
G4-11 46
G4-12 36
G4-13 14 + 15
G4-14 64
G4-15 61
G4-16 61

Amcor
Sustainability GRI Report 2016 64
APPENDIX 5
(continued)

GENERAL STANDARD PAGE NUMBER (OR LINK) EXTERNAL ASSURANCE


DISCLOSURES Information related to Standard Disclosures required by the ‘in accordance’
options may already be included in other reports prepared by the
organization. In these circumstances, the organization may elect to add a
specific reference to where the relevant information can be found
IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES
G4-17 16
G4-18 57
G4-19 17 + 59
G4-20 59 + 60
G4-21 59 + 60
G4-22 64
G4-23 60
STAKEHOLDER ENGAGEMENT
G4-24 57
G4-25 57
G4-26 57
REPORT PROFILE
G4-27 57 + 59 + 60
G4-28 16+ 56
G4-29 16 + 56
G4-30 56
G4-31 04
G4-32 16 + 64, 65
G4-33 68
GOVERNANCE
G4-34 52
G4-45 53
G4-47 53
ETHICS AND INTEGRITY
G4-56 54

Amcor
Sustainability GRI Report 2016 65
APPENDIX 5
(continued)

SPECIFIC STANDARD DISCLOSURES

DMA AND PAGE NUMBER (OR LINK) IDENTIFIED OMISSION(S) REASON(S) FOR EXTERNAL
INDICATORS Information related to Standard In exceptional cases, if it is not OMISSION(S) ASSURANCE
Disclosures required by the ‘in accordance’ possible to disclose certain In exceptional cases,
options may already be included in other required information, identify if it is not possible to
reports prepared by the organization. In the information that has been disclose certain required
these circumstances, the organization may omitted. information, provide the
elect to add a specific reference to where reason for omission.
the relevant information can be found
CATEGORY: ECONOMIC
MATERIAL ASPECT: ECONOMIC PERFORMANCE
G4-DMA 49
G4-EC1 50+54
CATEGORY: ENVIRONMENTAL
MATERIAL ASPECT: MATERIALS
G4-DMA 25
G4-EN1 25 Yes, see pg. 68
G4-EN2 25 Yes, see pg. 68
MATERIAL ASPECT: ENERGY
G4-DMA 31
G4-EN3 31
MATERIAL ASPECT: WATER
G4-DMA 26 +34
G4-EN8 34 Yes, see pg. 68
MATERIAL ASPECT: EMISSIONS
G4-DMA 26
G4-EN15 27 Yes, see pg. 68
G4-EN16 28 Yes, see pg. 68
G4-EN17 28 + 29 Yes, see pg. 68
G4-EN18 29 Yes, see pg. 68
G4-EN21 33
MATERIAL ASPECT: EFFLUENTS AND WASTE
G4-DMA 26 + 30
G4-EN23 30 Yes, see pg. 68
MATERIAL ASPECT: PRODUCT AND SERVICES
G4-DMA 18 + 23
G4-EN27 24 Yes, see pg. 68

• Quantitative data specifi-


cally for Amcor products. This information is
G4-EN28 21 Yes, see pg. 68
• Consolidated global recy- unavailable.
cled data.

MATERIAL ASPECT: SUPPLIER ENVIRNMENTAL ASSESSMENT


G4-DMA 36
G4-EN33 37
CATEGORY: SOCIAL
SUB-CATEGORY: LABOR PRACTICES AND DECENT WORK
MATERIAL ASPECT: EMPLOYMENT
G4-DMA 47
This information is
G4-LA1 47 • Total new hires, turnover.
unavailable.

Amcor
Sustainability GRI Report 2016 66
APPENDIX 5
(continued)

SPECIFIC STANDARD DISCLOSURES

DMA AND PAGE NUMBER (OR LINK) IDENTIFIED OMISSION(S) REASON(S) FOR EXTERNAL
INDICATORS Information related to Standard In exceptional cases, if it is not OMISSION(S) ASSURANCE
Disclosures required by the ‘in accordance’ possible to disclose certain In exceptional cases,
options may already be included in other required information, identify if it is not possible to
reports prepared by the organization. In the information that has been disclose certain required
these circumstances, the organization may omitted. information, provide the
elect to add a specific reference to where reason for omission.
the relevant information can be found
MATERIAL ASPECT: OCCUPATIONAL HEALTH AND SAFETY
G4-DMA 36 + 41
• Data broken down by
Data not available on
G4-LA6 42 gender Yes, see pg. 68
consolidated basis.
• absentee rate
MATERIAL ASPECT: TRAINING AND EDUCATION
G4-DMA 47
G4-LA9 48
G4-LA11 48
MATERIAL ASPECT: DIVERSITY AND EQUAL OPPORTUNITY
G4-DMA 48
G4-LA12 48
MATERIAL ASPECT: SUPPLIER ASSESSMENT FOR LABOR PRACTICES
G4-DMA 36
G4-LA15 37
SUB-CATEGORY: LABOR PRACTICES AND DECENT WORK
MATERIAL ASPECT: SUPPLIER HUMAN RIGHTS ASSESSMENT
G4-DMA 36
G4-HR11 37
SUB-CATEGORY: SOCIETY
MATERIAL ASPECT: LOCAL COMMUNITIES
G4-DMA 49
G4-SO1 49
MATERIAL ASPECT: SUPPLIER ASSESSMENT FOR IMPACTS ON SOCIETY
G4-DMA 36
G4-SO10 37
SUB-CATEGORY: PRODUCT RESPONSIBILITY
MATERIAL ASPECT:CUSTOMER HEALTH AND SAFETY
G4-DMA 37
• % product categories Data not available on
G4-PR1 39 Yes, see pg. 68
assessed for improvement. consolidated basis.
G4-PR2 39 Yes, see pg. 68
SUB-CATEGORY: FOOD PROCESSING
MATERIAL ASPECT:PROCUREMENT AND SOURCING PRACTICES
G4-DMA 36
G4-FP1 37 Yes, see pg. 68
MATERIAL ASPECT:CUSTOMER HEALTH AND SAFETY
G4-DMA 37
• % of production
Information not
G4-FP5 39 manufactured in certified Yes, see pg. 68
available.
sites.

Amcor
Sustainability GRI Report 2016 67
ASSURANCE
STATEMENT

G4-33
Ernst & Young Tel: +61 3 9288 8000
8 Exhibition Street Fax: +61 3 8650 7777
Melbourne VIC 3000 Australia ey.com/au
GPO Box 67 Melbourne VIC 3001

Our procedures were designed to obtain a limited level of


Independent Limited Assurance Report in relation assurance on which to base our conclusion, and, as such, do not
to Amcor Limited’s GRI Report provide all of the evidence that would be required to provide a
reasonable level of assurance. The procedures performed depend
on the assurance practitioner’s judgement including the risk of
To the Management and Directors of Amcor Limited:
material misstatement of the Subject Matter, whether due to fraud
We have carried out a limited assurance engagement in order to or error. While we considered the effectiveness of management’s
state whether anything has come to our attention that causes us to internal controls when determining the nature and extent of our
believe that the subject matter detailed below (‘Subject Matter’), procedures, our assurance engagement was not designed to
and as presented in the Amcor 2016 GRI Report (‘the Report’), has provide assurance on internal controls.
not been reported and presented fairly, in all material respects, in
Our procedures did not include testing controls or performing
accordance with the criteria (‘Criteria’) below.
procedures relating to checking aggregation or calculation of data
Subject Matter within IT systems, which would have been performed under a
reasonable assurance engagement.
The Subject Matter for our limited assurance engagement included
the selected sustainability themes (‘Selected Sustainability Matters) We believe that the assurance evidence we have obtained is
listed in Table 1 for the year ended 30 June 2016. sufficient and appropriate to provide a basis for our limited
assurance conclusions.
Table 1: Selected Sustainability Matters
Summary of Procedures Undertaken
Selected Sustainability Matters GRI G4 Reference
Our procedures included but were not limited to:
Energy & GHG Emissions EN15-18 ► Gaining an understanding of the processes supporting the
Environmental Impacts & Compliance EN1-3, EN28 development and collation of data for Amcor’s GRI Report
Health & Safety Performance LA6 ► Conducting interviews with key personnel to understand
Amcor’s process for collecting, collating and reporting the
Product Responsibility PR2, EN27-28
Selected Sustainability Matters during the reporting period
% volume purchased from suppliers
EN33 ► Checking that the Criteria has been correctly applied in the
compliant with company sourcing policy
calculation and aggregation of the Selected Sustainability
% production volume manufactured in site Matters
PR1
certified to intl. food safety standards

Waste Generation & Recycling Data EN23 ► Undertaking analytical review procedures to support the
reasonableness of the data
Water Used EN8
► Identifying and testing assumptions supporting calculations
The subject matter did not include:
► Testing the calculations performed by Amcor Limited
► Data sets, statements, information, systems or approaches
► Testing, on a sample basis, underlying source information to
other than the Selected Performance Data and related
check the accuracy of the data
disclosures
► Checking statements made in the GRI Report back to
► Management’s forward looking statements
supporting evidence
► Any comparisons made against historical data.
► Reviewing the appropriateness of the presentation of
Criteria information.

The following criteria have been applied: Use of our Limited Assurance Engagement Report

► The Global Reporting Initiative (GRI) indicator protocols We disclaim any assumption of responsibility for any reliance on
this assurance report, or on the Subject Matter to which it relates,
► Amcor’s reported criteria detailed in the Sustainability Report. to any persons other than management and the Directors of Amcor
Limited, or for any purpose other than that for which it was
Management’s Responsibility
prepared.
The management of Amcor Limited is responsible for the
Independence and Quality Control
preparation and fair presentation of the Subject Matter in
accordance with the Criteria, and is also responsible for the In conducting our assurance engagement, we have met the
selection of methods used in the Criteria. No conclusion is independence requirements of the APES 110 Code of Ethics for
expressed as to whether the selected methods are appropriate for Professional Accountants. We have the required competencies and
the purpose described above. Further, Amcor Limited’s experience to conduct this assurance engagement.
management is responsible for establishing and maintaining
internal controls relevant to the preparation and presentation of the Limited Assurance Conclusion
Subject Matter that is free from material misstatement, whether due
Based on the limited assurance procedures conducted, nothing has
to fraud or error; selecting and applying appropriate criteria;
come to our attention that causes us to believe that the Subject
maintaining adequate records and making estimates that are
Matter for the year ended 30 June 2016, have not been reported
reasonable in the circumstances.
and presented fairly, in all material respects, in accordance with the
Assurance Practitioner’s Responsibility Criteria.

Our responsibility is to express a limited assurance conclusion on


the Subject Matter based on our assurance engagement conducted
in accordance with the International Federation of Accountants’
International Standard for Assurance Engagements Other Than
Audits or Reviews of Historical Financial Information (‘ISAE 3000’) Ernst & Young
and the terms of reference for this engagement as agreed with Melbourne, Australia
Amcor Limited. 19 October 2016

A member firm of Ernst & Young Global Limited


Liability limited by a scheme approved under Professional Standards Legislation

Amcor
Sustainability GRI Report 2016 68
Creating a new world of packaging
2016 Amcor | GRI Report

@AMCORPACKAGING

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