Amcor 2016
Amcor 2016
Amcor 2016
2016
Sustainability
GRI Report
THE RESPONSIBLE PACKAGING REPORT
Abbreviated Outline:
• What we make 9
• Meet Amcor 13
• 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.
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
been risk-assessed.
water use.
Amcor
Sustainability GRI Report 2016 04
OUR PERFORMANCE
PLANNING FOR THE FUTURE: RESPONSIBLE PACKAGING 2.0
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.
25%
intensity
achieved a 25%
reduction in water
intensity.
Amcor
Sustainability GRI Report 2016 05
OUR PERFORMANCE
PLANNING FOR THE FUTURE: RESPONSIBLE PACKAGING 2.0
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
board positions
2 8out of are held
by females.
Amcor
Sustainability GRI Report 2016 07
OUR PERFORMANCE
HOW WE MAKE RESPONSIBLE PACKAGING
$1M
Invested projects, benefiting
more than US approximately
7,000 people.
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
PRODUCT PROFILES
PCR resin reduces the bottle’s life cycle energy consumption by 78%
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
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,
Amcor
Sustainability GRI Report 2016 10
WHAT WE
MAKE (continued)
Pandora
Amcor Rigid Plastics won a WorldStar Award
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.
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
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,
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
G4-8
Western Europe 29.6%
Asia 9.7%
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.
G4-6
Amcor operations
In addition to these locations, Amcor holds 48% ownership in AMVIG Holdings Limited, a company
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)
G4-13
Acquisitions made in FY16 were:
Cape Town
Durban (2)
Nampak, South Africa AFEMEA $22M
Port Elizabeth
Johannesburg
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
Pondicherry
Packaging India Private Ltd AFAP $26M Sitarganj
Cuddalore
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
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
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
WASTE (OPERATIONS)
PACKAGING WASTE:
RECYCLING AND LITTER
SUSTAINABLE SOURCING
Influence on stakeholder assessments and decisions
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
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:
disposal of packaging;
• Promote the role and benefits of responsible packaging by presenting at conferences and seminars around
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
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
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
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 &
Amcor
Sustainability GRI Report 2016 19
OUR PERFORMANCE
(continued)
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
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
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.
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
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
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:
• Work with suppliers and customers to reduce environmental impacts across our value chain
• 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
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
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.
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
Amcor
Sustainability GRI Report 2016 23
LIFE CYCLE
ASSESSMENTS
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.
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
Amcor
Sustainability GRI Report 2016 24
LIFE CYCLE
ASSESSMENTS (continued)
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
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
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
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
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.
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,
Amcor
Sustainability GRI Report 2016 27
ENVIROACTION TARGETS
AND PERFORMANCE (continued)
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.
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
Amcor
Sustainability GRI Report 2016 28
ENVIROACTION TARGETS
AND PERFORMANCE (continued)
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
EN18
6,000
Tonnes CO2e / US$m gross profit
5,000
4,000
3,000
2,000
1,000
Group Target
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
Amcor
Sustainability GRI Report 2016 29
ENVIROACTION TARGETS
AND PERFORMANCE (continued)
Waste to landfill
EN23
Waste produced by our sites
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
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
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
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.
EN3
In FY16 we used a total
from wood.
LP Gas
88.5%
Amcor
Sustainability GRI Report 2016 31
ENVIROACTION TARGETS
AND PERFORMANCE (continued)
Heating
including energy efficient lighting
93%
and shutting down equipment
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
Over the last two years, 250 projects have been implemented.
Amcor
Sustainability GRI Report 2016 32
ENVIROACTION TARGETS
AND PERFORMANCE (continued)
were installed at AF
Winterbourne in Bristol,
UK. As of February
weighing 96 tonnes.
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
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
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.
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
ambitious targets for these sites, leading to a decrease of 22% in water use. This was achieved mainly by
Amcor
Sustainability GRI Report 2016 34
ENVIROACTION TARGETS
AND PERFORMANCE (continued)
reporting.
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
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
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
Our approach to supply chain management is designed to support our Company values, meet our customers’
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
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
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
• Do you comply with local legislation on minimum wage/maximum working hours per employee?
• 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
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
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
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
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
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
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
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
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
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
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:
• Protecting human rights and sound labor practices in all of our sites globally.
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
Amcor's business groups are required to report monthly to the company’s board on compliance with these
Our performance
To maintain a safe workplace everywhere, we have focused on the following areas in 2016:
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
‘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)
LA6
Number of recordable cases per million hours worked
4.0
3.4
2.6
2.0 2.0 2.0
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
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
North America 0 0
Asia 0.0 1
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
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
• 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
• Fire Ignitions, which represent incidents involving smoke or fire and help us identify root causes- such as
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
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
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
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
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
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.
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”.
Amcor
Sustainability GRI Report 2016 45
HAVING A POSITIVE
SOCIAL IMPACT (continued)
North America
9%
4% Eastern Europe
18%
11% Oceania
Latin America
22% 33%
Asia
Africa
3%
Western Europe
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
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.
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.
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.
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:
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
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
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
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:
3. Educate people about how responsible packaging contributes to a more sustainable future.
• Over 70 co-workers from Flexibles Singapore took to kayaks and bicycles to clean up the local
• 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
• 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
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.
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:
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
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
A POSITIVE
ECONOMIC IMPACT
Our top priorities in this category, as well as the main ways we address those priorities, are as follows:
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
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
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
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
Amcor
Sustainability GRI Report 2016 53
A POSITIVE
ECONOMIC IMPACT (continued)
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
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
Amcor
Sustainability GRI Report 2016 54
LOOKING AHEAD
Food Programme.
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
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:
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
Every year, Amcor conducts a materiality assessment to identify material issues through the following actions,
G4-25
• Input from the Sustainability Leaders within each Amcor Business
• Identifying the social, environmental and economic aspects associated with Amcor’s current business
• *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
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
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
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)
External:
• Industry: Companies within the packaging industry and within the industries of Amcor customers
• 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)
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
Amcor
Sustainability GRI Report 2016 60
APPENDIX 3
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
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
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
The following categories have been assessed as either immaterial in regards to emissions calculations or not
• Capital goods
• Business travel
• Employee commuting
• 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
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
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
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
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
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)
Amcor
Sustainability GRI Report 2016 65
APPENDIX 5
(continued)
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
Amcor
Sustainability GRI Report 2016 66
APPENDIX 5
(continued)
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
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.
Amcor
Sustainability GRI Report 2016 68
Creating a new world of packaging
2016 Amcor | GRI Report
@AMCORPACKAGING