Pioneering Regenerative Supply Chains - Sustainability Review 2021 Supplementary Information - Brambles
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Sustainability Review 2021
Supplementary Information
Pioneering
Regenerative
Supply Chains
Brambles Sustainability Review 2021 - Supplementary Information As at 9 September 2021 __________________________________________________________________________________ Brambles defines sustainability as the strategies and activities the Group has adopted in relation to its employees, the environment, ethics and the community Brambles sustainability framework focuses our activities in three areas: Business Positive, Planet Positive and Communities Positive __________________________________________________________________________________ 1
Brambles Sustainability Review 2021 - Supplementary Information
As at 9 September 2021
BOUNDARIES ........................................................................................................................................... 3
ASSESSMENT OF MATERIAL TOPICS, KEY IMPACTS, RISKS AND OPPORTUNITIES .................................. 3
APPLICATION OF THE GLOBAL REPORTING INITIATIVE – G4 REPORTING STANDARDS ......................... 6
ASSURANCE ............................................................................................................................................. 6
EXTERNAL BENCHMARKING.................................................................................................................... 7
Stakeholder Engagement .................................................................................................................... 7
DATA MEASUREMENT TECHNIQUES AND EXPLANATIONS .................................................................... 9
Business Positive ..................................................................................................................................... 9
Share & Reuse ..................................................................................................................................... 9
Customer Collaboration .................................................................................................................... 10
Customer Insights Programme ......................................................................................................... 12
People ............................................................................................................................................... 12
Responsible Business ......................................................................................................................... 14
Planet Positive....................................................................................................................................... 15
Reforestation & Afforestation .......................................................................................................... 15
Materials & Resource Management ................................................................................................. 16
GHG Emissions .................................................................................................................................. 18
Communities Positive ........................................................................................................................... 20
Food Positive ..................................................................................................................................... 20
Circular Economy Transformation .................................................................................................... 21
Charitable Donations ........................................................................................................................ 21
Volunteering ..................................................................................................................................... 21
GLOSSARY.............................................................................................................................................. 22
Appendix I: Extract from Estimation Engine Overview Areté .............................................................. 25
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Brambles Sustainability Review 2021 - Supplementary Information
As at 9 September 2021
BOUNDARIES To note, for historical data, IFCO was divested on
31st May 2019. IFCO data to the date of
This Sustainability Review covers Brambles’
divestment are included in the document named
businesses for the financial year ended 30 June
‘5 year performance update’ which is available
2021 (FY21, or ‘the year’). Brambles Limited is an
on the Brambles Website. The FY21
ASX-listed supply chain logistics company with a
Sustainability Review (the Review) covers
network of 750+ service centres in approximately
operations as listed above, with the following
60 countries, employing 12,000 people. Brambles is
exceptions:
the world leading provider of supply chain logistics
- The Review does not include data from service
solutions based on the provision of 345 million
centres operated by a third party (outsourced
reusable pallets, crates and containers for shared
service centres), with the following exceptions:
use by multiple participants throughout the supply
- An estimation of emissions data associated with
chain. Brambles’ longstanding asset management
third party service centres operating on CHEP’s
expertise and superior network advantage are
behalf and transportation associated with
integral to its customer solutions. Brambles
balancing its pallet pool;
primarily serves customers in the fast-moving
- Wood purchased directly by third party service
consumer goods (e.g. dry food, grocery, and health
centres, subsequently used in the repair or
and personal care), fresh produce, beverage, retail
manufacture of CHEP pallets.
and general manufacturing industries, counting
- Brambles undertook an exercise to identify sites
many of the world’s best-known brands among its
representing 95% of emissions for FY21 this
customers. During FY21 Brambles operated
identified 115 sites. The remaining sites that
primarily through the CHEP brand and manages its
represented 5% of emissions are estimated
businesses within the following operating
based on the average emissions of the 115 sites.
segments:
100% of fleet data was collected.
- CHEP EU – The pallet and container pooling
- For Brambles product waste, diverted from
businesses in Europe
landfill, the same emissions pareto is applied,
- CHEP IMETA – The pallet and container pooling
removing non-production sites, identifying 105
businesses in India, Middle East, Turkey and
Brambles managed sites and 519 sub contracted
Africa, in addition the CHEP-branded RPC
sites.
(Reusable Plastic Crates) business in South
All other reported data covers all segments of
Africa;
Brambles’ business. Consideration has been given
- CHEP Americas – The pallet and container
to the impact of sustainability issues on Brambles’
pooling businesses in the Americas; and
customers as described in the Share and Reuse
- CHEP Asia-Pacific – The pallet and container
Model and Supply Chain Collaboration and
pooling businesses in Asia-Pacific and the CHEP-
Emissions sections of the Review.
branded RPC business in Australia and New
Zealand.
During February 2021, Brambles merged
ownership of Kegstar keg rental business with ASSESSMENT OF MATERIAL TOPICS,
leading US beer keg solutions provider KEY IMPACTS, RISKS AND
MicroStar. Following the merger, the combined
entity will be approximately 15% owned by
OPPORTUNITIES
Brambles and 85% owned by MicroStar’s current Brambles continued to follow an annual
shareholders. Kegstar is no longer under material sustainability topics process to identify
Brambles operational control as defined by GHG sustainability topics deemed material by its
Protocol, therefore is not included in any FY21 businesses and stakeholders. Brambles
reporting. identifies sustainability issues through
stakeholder engagement processes covering
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Brambles Sustainability Review 2021 - Supplementary Information
As at 9 September 2021
key external and internal sources of feedback. with relevant and applicable functional expertise.
This includes a review of stakeholder feedback (For further information, please see the 2021
through both formal and informal processes, Corporate Governance Statement , Principle 7.
either directly from stakeholder responses via Recognise and Manage Risk, available online). This
survey and comments, or as summarised and process has contributed to the identification of
analysed by the responsible function for that material sustainability topics for the FY21
stakeholder group. Ranking is also conducted as Sustainability Review. Stakeholders are engaged
a part of this process through Brambles throughout the Year through a number of other
Sustainability Risk Committee (SRC). For FY19, ongoing business processes, including programs
Brambles structured a survey to achieve two such as the employee surveys and a customer
objectives: insights program, which are under the direct control
1. Inform the materiality process of senior management and reported in the Review
2. Inform Brambles sustainability programme where applicable.
to 2025 and beyond the survey was While internal stakeholders were engaged as
delivered as both an online method and proxies to represent external associations in some
direct conversation / recording method in cases, this was limited and may not result in a
order to gain richer insights through complete and unbiased contribution. The top
discussions. sustainability issues of concern to each stakeholder
The key results of the materiality survey have group were identified and ranked. These were
been incorporated into the materiality matrix approved by senior management responsible for
through consultation with Brambles SRC. Some the stakeholder group. The environmental,
issues have been included under modified economic and social sustainability risks assessed by
headings, for example in FY18 ‘Sustainable our internal risk management processes were also
Sourcing raw materials’ is now included as included in our analysis. The material sustainability
Overuse of the world’s resources (including raw issues were identified as being those sustainability
materials) Key additions include; issues applicable to multiple stakeholder groups
1. Climate change impacts and/or with a material impact on our businesses. In
2. Move to a climate-neutral circular economy FY20, Brambles conducted a review in consideration
3. Social impact of the value chain of the Global Reporting Initiative (GRI)standards, in
4. Overuse of the world’s resources (including order to identify material aspects that reflect
raw materials) Brambles’ economic, environmental and social
5. Transparency and corporate governance impacts. Consideration was also given to the
including anti-corruption and bribery) requirements of the ASX Corporate Governance
Background on Brambles’ Materiality Process Principles recommendation 7.4.
Brambles risk management processes considers the Brambles have published a second TCFD disclosure,
Australian Stock Exchange Corporate Governance available on the website;
Council’s Corporate Governance Principles and Brambles_2021_TCFD_Disclosures.pdf
Recommendations. Since 2015, economic, The TCFD disclosure outline Brambles climate-
environmental and social sustainability risks were related impacts, including the financial risks and
incorporated into the Group’s risk management opportunities of a low-carbon economic transition,
framework and in FY16, this framework was further it reinforces Brambles’ sustainable business model
enhanced with the establishment of an SRC. The and its newly adopted 2025 targets’ ambition to
SRC is a management committee comprising Pioneer Regenerative Supply Chains as the
Brambles’ Group Senior Vice President, Human appropriate strategy.
Resources, Global Head of Sustainability and Brambles released their 2025 sustainability targets
Director of Risk and a cross section of senior and strategy during FY21, this can be found on the
Brambles corporate and business unit executives website; Brambles 2025 Sustainability Targets.
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Brambles Sustainability Review 2021 - Supplementary Information
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In FY20/21, the following material sustainability - Social impact of the value chain including,
issues were identified: Labour standards;
- Climate change impacts - Work/life balance;
- Sustainable (business) growth - Environmental impacts of direct operations
- Zero Harm; The results of this process were approved by
- Move to climate-neutral circular economy the SRC, followed by the Executive Leadership
- Overuse of the world’s resources (including raw Team and the Board, as part of the approval of
materials) the Sustainability Review 2021.
- Learning and development;
- Transparency and Corporate governance
(including anti-corruption and bribery);
- Customer collaboration and benefits of share
and reuse model to customers;
Brambles efforts to address sustainability risks and opportunities is reported in three areas:
Business Positive
Supply Chain Positive Brambles provides pallets, reusable plastic crates and containers that are shared and
reused amongst our customers (previously referred to as ‘pooling’). Sharing our
reusable equipment in this circular model is inherently sustainable.
Positive Brambles works with customers and suppliers to reduce waste across the supply chain.
Collaboration We use our logistics knowledge to minimise the footprint of our customers and our
supply chain, through network optimisation and the use of collaborative and
multimodal transportation.
Workplace Positive Brambles believes an engaging, safe tolerant and diverse work environment brings out
the best in our people and helps them reach their potential. This will help us attract and
retain employees capable of delivering exceptional value to customers and appropriate
returns to investors.
Planet Positive
Forest Positive Brambles Forest Positive initiatives will support both Brambles and customers’
decarbonisation objectives while increasing global forest cover. Reforestation is an
effective nature-based solution delivering multiple benefits such as addressing critical
biodiversity issues, climate change and opening opportunities in carbon markets.
Climate Positive Brambles are committed to a Science Based Target scenario of a 1.5C degree climate
future through alignment of our carbon emissions target.
Waste Positive Brambles is committed to using resources efficiently and minimising waste. With
pooling models that operate on the principles of recover, reuse, reduce and recycle we
are focused on continuously improving our performance to reduce material
consumption maintenance costs and meet stakeholders’ sustainability expectations.
Communities Positive
Food Positive Brambles are collaborating with food banks to serve rescued food to 10 million people.
Circular Economy Brambles are leaders in circular economy, using these expertise, puts them in a position
Transformation to advocate, educate and impact one million people to become circular economy
change makers.
Positive Impacts for Brambles are committed to developing natural and social capital accounting
People and Plant approaches.
The framework and content of the review has been reviewed and approved by the Executive Leadership Team
and the Chief Executive Officer and presented to Brambles Board.
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Brambles Sustainability Review 2021 - Supplementary Information
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KPMG will also report key observations and
APPLICATION OF THE GLOBAL recommendations arising from the assurance
engagement to Brambles, for consideration by
REPORTING INITIATIVE – G4 Brambles.
REPORTING STANDARDS The Assured Information contained within the FY21
The above material issues and other sustainability Sustainability Review and accessible through the
issues raised throughout FY21 were compared to ‘Sustainability Review’ section of Brambles Limited’s
the GRI G4 standard and the following GRI aspects website is identified below. Information which has
were identified as material and reported against: been subject to such assurance is clearly identified
- Economic: Economic Performance, by the words, “This page is covered by assurance”
Procurement; or “Data on this page is covered by assurance. The
- Environmental: Materials, Water, Biodiversity, KPMG Assurance Report is available on the
Emissions, Effluents and waste, Products and Brambles website at brambles.com
services, Compliance, Transport, Supplier
environmental assessment; Selected Sustainability Page reference
- Social: Labour Practices and Decent Work: Information
Employment, Occupational Health and Safety, Afforestation: Number of trees 7 & 21
Training and Education, Diversity and Equal planted and associated CO2e
sequestered
Opportunity, Equal Remuneration for Women
Percent and volume of certified 7, 20 & 21
and Men, Supplier Assessment for Labour
lumber and percent of chain of
Practices;
custody wood
- Human Rights: Child Labour, Forced and Science Based Target CO2e 7, 23 & 24
Compulsory Labour, Indigenous Rights, reduction Scopes 1, 2 and 3
Supplier Human Rights Assessment; Carbon Neutral Operations 7 & 23
- Society: Anti-Corruption, Supplier Assessment Renewable Energy 7 & 23
for Impacts on Society, Grievance Mechanisms Percent sites zero product 7 & 26
for Impacts on Society; and waste to landfill
- Product Responsibility: Customer Health and Percent recycled and upcycled 7
Safety content in new plastic
A table outlining Brambles response to each of the purchases
indicators that applies to these aspects is provided Measure positive impact of 8 & 10
on our website at www.brambles.com. Brambles share and reuse pooling model
considers its application of the GRI G4 standards to through savings of emissions,
be ‘in accordance’ to a ‘comprehensive’ level. water, wood, waste and trees
Brambles leadership position in 8 & 10
the circular economy metrics;
ASSURANCE Circulytics Rating
In FY21, Brambles engaged KPMG to undertake a Number of customers in 8 & 13
limited assurance engagement in respect of FY21 collaboration and number of
and provide a report on whether, in all material collaborative initiatives, plus
respects, the Assured Information, as described associated CO2e saved through
below and as reported in the FY21 Sustainability collaboration
Review is prepared and presented in accordance Brambles Injury Frequency 8 & 16
with Brambles Limited’s internal guidelines for Rate
sustainability reporting, as described in this Number of Wellbeing 15 & 16
Initiatives and employee Pulse
document KPMG issued an unmodified opinion on
survey Wellbeing result
9th September 2021 which is available on our
website at Sustainability Review (brambles.com).
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Brambles Sustainability Review 2021 - Supplementary Information
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Percent women in 8 & 17 Waste Management & Industrial Machinery &
management positions and on Goods.
the Brambles Board Brambles supports the Ten Principles of the United
Percent of women in plant 17 Nations Global Compact in the areas of Human
roles Rights, Labour, Environment and Anti-Corruption.
Gender salary ratio and ratio Link in this Brambles became a signatory to the United Nations
by employee band document Global Compact in June 2013. Brambles’
Inclusive company Pulse Survey 15 & 17 communication of progress and table addressing
results: Inclusivity &
each of the principles can be found on its website.
Authenticity
External ESG Recognition On page 6 in the FY21
Number of countries and 8 & 15
regions awarded Top Employer Sustainability Review Brambles outlines the
Accreditations external ESG recognitions for the period in review.
Employee Engagement Pulse 15 Where appropriate Brambles indicates the ranking
Survey result and a change in ranking if appropriate. Brambles
Number of suppliers gone 18 was again selected in 2020 as a component of the
through due diligence Dow Jones Sustainability World Index, the Dow
Percent of Brambles 18 Jones Sustainability Asia-Pacific Index and the Dow
employees trained on ethics Jones Sustainability Australia Index. The Dow Jones
Number of people served 8 & 28 Sustainability Indices serve as benchmarks for
meals through working with investors who integrate sustainability
Foodbanks considerations into their portfolios and provide an
$ Donated through 27, 28 & 29 effective engagement platform for companies who
volunteering, in-kind donations want to adopt sustainable best practices. Brambles
and charitable donations
is a constituent of the FTSE4Good Index Series.
Hours volunteered by Brambles 29
FTSE4Good is an equity index series that is designed
employees to charity
to facilitate investment in companies that meet
Number of people reached 8 & 30
through Circular Economy globally recognised corporate responsibility
Transformation standards. Brambles also references Circulytics,
MSCI, Barron’s, Corporate Knights and CDP (Climate
KPMG has not been engaged to, and do not, Change and Forests) surveys.
provide assurance in respect of the application of Stakeholder Engagement
the GRI G4 reporting standard or claims included in Brambles actively seeks feedback from five key
the FY21 Sustainability Review, this document or stakeholder groups. Key stakeholders are identified
other pages of the Brambles website, other than as those groups significantly impacted by the
the Assured Information as identified above. policies and practices of Brambles businesses.
Feedback from key stakeholders is reported
annually in our sustainability reporting.
EXTERNAL BENCHMARKING Group Responsible function
Brambles 2021 Sustainability Review is published ‘in Customers Group Presidents of
accordance’ with the GRI G4 guidelines to a businesses
comprehensive level. Brambles reported in line Customer insight teams
with SASB metrics for the first time in FY21. Global key account
managers
Reporting both Containers & Packaging Standard
Customer-driven external
and the Forestry Management Standard. In
evaluations (e.g. EcoVadis,
addition Brambles have added a workforce health SEDEX, CDP supply chain
and safety metric to report against, taken from the survey)
7Brambles Sustainability Review 2021 - Supplementary Information
As at 9 September 2021
Investors Group Vice President, materials provided at these meetings are also
Investor Relations, Capital released to the Australian Securities Exchange.
Markets, Company Secretary Brambles follows a calendar of regular disclosure to
Investor-driven external the market on its financial and operational results.
evaluations, e.g. DJSI and This calendar is available on the Brambles website.
CDP Brambles ensures that employees are informed of
Employees Group Senior Vice President significant company news and strategic
(including – Human Resources
developments through regular announcements and
contractors) Group General Counsel
newsletters, in-house publications, information
(human rights)
posted on the intranet and face to face meetings
Suppliers Group Presidents of
businesses with senior managers. Employee engagement is
Senior Vice President – monitored through the Brambles Employee Pulse
Operations Vice President – Survey. The confidential survey is usually conducted
Global Procurement bi-annually and is offered to employees in both web
(assisted by Procurement and paper-based formats. During FY21 the usual
Lead with responsibility for survey was carried out in the first half of the year,
sustainability) but due to Covid-19 the survey in the second half of
Feedback from key stakeholders, conducted the year the survey was suspended in favour of a
through both external and internal processes, is survey that focused on the impact of Covid-19 on
reported throughout the Sustainability Review employees. The results of that survey are
within the relevant section. These processes are communicated to employees. Data is used to track
outlined below. Brambles iterative conversations progress from previous surveys, measuring
with relevant regulatory bodies, government and Brambles against internal and external best practice
non-government organisations (NGOs) and and identifying key actions for improvement.
employee representative bodies and also conducts In continuing to improve customers’ experience of
customer, employee and supplier surveys and our products, services and people, Brambles
consultation forums. Brambles uses the Annual gathers the Voice of the Customer through a variety
Report and the Annual General Meeting to of channels. This includes strategic leadership
communicate with shareholders about its financial forums, face-to-face customer interviews, global
situation, performance, strategies and activities. market insights, sharing of global best practice
General Meetings allow an opportunity for throughout the Group, the Relationship Program
shareholders to engage directly with the Board. The and customer care centres. Brambles expects its
Group Vice President, Capital Markets and Group suppliers’ practices to be in line with its principles.
Company Secretary deal with shareholder enquiries Brambles is committed to driving efficiency and
at other times. Brambles encourages vigorous and environmental sustainability in the supply chains it
robust analysis by the investment community and a serves. Brambles Global Procurement is responsible
policy of consistent access and treatment is applied, for sourcing suppliers for the business, as well as
irrespective of the views and recommendations managing those relationships and monitoring
expressed. Brambles holds briefings with investors performance. Brambles updated its global
and analysts to provide information and seek procurement policy, that is approved by the
feedback from time to time. No new materials or Brambles Board, in March 2018. The Policy confirms
price sensitive information is provided at those the alignment of the Procurement function to
briefings unless it has been previously or is Brambles Code of Conduct principles and part of its
simultaneously released to the market. A record of scope is to be the sourcing basic tool to ensure the
any briefings is maintained and copies of higher ethical standards and respect for Code of
presentation materials are available on the Conduct itself. Brambles recognises that its business
Brambles website. New or updated information and units need to collaborate closely with their third-
8Brambles Sustainability Review 2021 - Supplementary Information
As at 9 September 2021
party operators and suppliers to meet customers’ reviewed. In order to quantify the total benefits,
growing interest in understanding their unit factors were applied to the corresponding
environmental impact and in turn to demonstrate activity volumes in each region. These volumes
the benefits of using Brambles’ products and were obtained from Brambles financial
services. By working in partnership with suppliers as management reports. Only regions with LCA studies
it rolls out its supplier policy, Brambles’ business available were considered for the calculations. The
units will be able to improve supply chain following regions are included in the calculation:
transparency and understanding for more Region Wooden Pallets RPC LCA
sustainable and mutually beneficial outcomes. As LCA
part of Brambles' internal compliance efforts, Europe X
designated country General Managers are required North America X
to include details of any representations received South America X
from local communities, governments or legitimate South Africa X
special interest groups raising any significant, or Australia X X
potentially significant, community relations issues in New Zealand X X
bi-annual management declarations.
Food waste has not been reported since FY18 due
to the divestment of IFCO in FY19 as all previous
DATA MEASUREMENT TECHNIQUES calculations on food waste related savings were
AND EXPLANATIONS made using the IFCO LCA. It should be noted that
Brambles continues to address the issue of food
Business Positive waste in several ways however, these are not
Share & Reuse currently factored into the LCA calculations.
This section describes the methods used to 1. Issuing in-kind equipment to food rescue
estimate the environmental benefits that the organisations such as Food Banks to allow
Brambles sharing and reusing models produce in efficient transfer of surplus food to
our customers’ supply chains. Calculations stated in distribution locations
the pooling model diagram are based on the results 2. Plastic products such as produce bins
of independent life cycle analyses (LCA) for pallets reduce food waste by protecting the
and RPCs. The unit benefits of the pooled solutions produce through the supply chain
were obtained by comparing the environmental 3. RPC’s have been an integrated part of
impacts of: a) Brambles pooled solutions, versus b) CHEP’s business in Australia, South Africa
the most commonly used market alternative in the and New Zealand and will continue to
absence of pooling. Depending on the particular remain so
region, these alternatives are exchangeable or BXB Digital is developing technology to monitor the
disposable systems. LCA studies provide the unit ‘cold chain’ thus ensuring the integrity of perishable
factors for CO2-e emissions, water consumption, food throughout the supply chain and reducing
wood consumption, food waste, and total waste to food waste.
landfill generated by platforms. They cover the The LCA studies consider the savings generated
whole lifecycle of the product, from the raw associated with the following specific equipment
materials to the end of life. Pallet LCA studies have types in the applicable regions were:
been independently conducted using ISO 14044 Life Region Equipment
Cycle Assessment methodology. The European, USA Europe 8060 Pallet
and Australian studies were summited to a peer Europe 1208 Pallet
review process, following the ISO 14044 standard. Europe 1210 Pallet
The RPC study for Australia in 2010 and New USA 48x40 Inch Pallet
Zealand in 2021 also follows ISO and has been peer North America (Canada) 48x40 Inch Pallet
North America (Canada) 48x20 Inch Pallet
9Brambles Sustainability Review 2021 - Supplementary Information
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South Africa 1210 Pallet board yield per tree. This board yield was
South America 1210 Pallet applied to the LCA data on whitewood savings to
South America (Mexico) 48x40 Inch Pallet give an approximate number of trees saved;
Australia 1165 Pallet − This methodology resulted in a conversion rate
Australia RPC of approx. 1 m3 of pallet timber per tree.
New Zealand RPC − Final numbers are represented in millions and
This approach represents a conservative estimate of rounded to 1 decimal point. However, CHEP is
the annual global environmental benefits of our unlikely to get all elements of the sawlog.
pooled solutions, since it: For both economic and engineering performance
− Does not include any savings from regions that reasons, CHEP only purchases elements of the log;
don’t currently have an LCA. therefore, any reference to number of trees used or
− Does not include all equipment types, and saved is theoretical.
therefore not all issues made by Brambles in
Customer Collaboration
the year. It is estimated that the savings
Our customer collaboration kms and CO2e savings
associated with the pooling model includes
are generated by four main initiatives:
more than 80% of pallets issued in the year.
1. Transport Collaboration, avoiding empty kms
− Alternate CHEP pallet solutions that would give
with our customers;
even better results compared to alternative
2. Transport Orchestration, avoiding empty kms
platforms were not considered.
between customers;
− Not all LCAs consider all factors.
3. Plant Network Optimisation, is also known as
− Avoided solid waste and water savings for
Total Pallet Management (TPM) at customer
Australia RPC movements.
sites, avoiding one leg of transport to repair
The benefits of customers’ use of our pooled
sites;
equipment are made possible because of our
4. Multimodal transport, reducing CO2 emissions
continuous reuse model, asset control, use of
per km by replacing truck kms with boat and
certified and sustainable timber, control of end-of-
rail.
life management and transport efficiencies due to
The CO2e saved is the difference between the
our global multimodal network.
original journey and the ‘collaborative journey’. To
The number of trees saved by customers’ use of our
calculate emissions from avoided Logistics activity
pooled wooden pallets was calculated using the
we follow the methodology as defined by the
following method:
SmartFreight GLEC Framework v1. The framework
− Conversion of the LCA data on whitewood m3 calculates fuel used from a group of similar journeys
savings. and applies a fuel emissions factor to calculate
− Estimates are based on Radiata Pine (ex New CO2e output.
Zealand), which is a softwood species (as are the Brambles reviewed the definition for 'Customers in
majority of CHEP wooden pallets). This species collaboration' to ensure there is clarity when
was chosen because of the availability of measuring the number of customers that the
credible data; business engages in collaboration projects.
− Source of Radiata Pine estimates was the New Customers in collaboration is defined as:
Zealand Forestry Industry Facts and Figures 2013
version. Customers engaged in collaborative projects is
− We approximated millable log yield, based on defined as those customers who have started
the information provided in this document. logistics activity in Customer Collaboration,
− We estimated large scale modern mill board Orchestration or Multi-modal projects where a
yield to be around 55% and discounted by an collaborative agreement is in place. Customer are
additional 10% to allow for harvesting classified separately by their country boundary.
differences to other regions. This resulted in a
10Brambles Sustainability Review 2021 - Supplementary Information
As at 9 September 2021
Since FY19, ‘where a collaborative agreement is in Transport Orchestration
place’ has been added to the definition to ensure BRIX also enables CHEP to facilitate collaborations
we only count customers where collaboration is between different customers, in which transport
agreed between CHEP and the customer. As many resources are being integrated in our network.
agreements had been established verbally or via CHEP helps close open logistics loops reducing
email, going forward a letter is to be shared with empty trucks and therefore unnecessary carbon
customers to create a more transparent audit trail. emissions. The number of collaboration trips are
To fully appreciate the collaboration Brambles established between customers at the beginning of
engage with in FY21 Brambles also began to track their commercial agreement. The distance of each
and report the number of customer collaboration lane is then multiplied by the number of agreed
initiatives we have with our customers. This will collaborative trips which is then converted to CO2e.
encompass the whole of ZWW however at this time Transport Orchestration consists of two project
we are only reporting Logistics Collaboration types, Orchestration Promotor and Orchestration
Initiatives. Partner. Customers who take part in both are
− For customer collaboration initiatives we count counted twice in customer collaboration numbers.
the number of lanes we have in collaboration Customers projects here can also be counted
− For Plant Network Optimisation we count the separately from Customer Collaboration.
number of TPM sites we have at customer Plant Network Optimisation
locations Plant network optimisation is the practice of
Other Waste reductions projects and initiatives will strategically positioning the service centre and
be included once a measurement system is in place. TPMs (Total Pallet Management service centres
Transport installed at customer locations) in our network in a
In FY19 Brambles began a project to harmonise the specific location to reduce the distance needed to
measurement of logistics emissions globally using travel for pallet issues and returns via Truck. There
SmartFreights GLEC framework v1. This adopts a are regional variations in methodology to measure
standard for measuring logistics carbon dioxide the optimised distance (km) saved for material
equivalence (CO2e) emissions. The GLEC framework regions. There methodologies are defined as
v1 promotes the adoption of standard follows:
methodologies and standard sets of consumption USA / Mexico
and emissions factors as defaults where primary An average length of haul for each month of the
data is not available. The framework allows reported year is calculated from all shipments of
Brambles to consistently measure the carbon issues, returns and relocations. An average length
savings achieved through supply chain collaboration of haul for each month is also calculated from FY17
using distance saved from the following initiatives; due to limits of data retrieval. For Mexico FY16 was
1. Customer Collaboration used as data was unavailable from FY15. The
2. Transport Orchestration difference between these average lengths of haul is
3. Plant Network Optimisation multiplied by the number of trips in each month of
4. Multi-Modal activity the reported year to determine the distance saved.
Using our own reverse logistics network for the EU
process of recovering pallets, together with BRIX Europe supply chain team track the implementation
our state-of-the-art Lane Matching Tool developed of TPMs in a local database. An average distance
by BXBDigital, CHEP collaborates with customers avoided is calculated from the strategic placement
identifying empty lanes, optimising the supply chain of TPMs at customer locations. For each of these
and improving performance while reducing TPMs the total number of TEUs issued to customers
environmental impact of CO2e. from the TPM is recorded on an annual basis. The
number of trips avoided are calculated by dividing
the total TEUs issued by the average quantity of a
11Brambles Sustainability Review 2021 - Supplementary Information
As at 9 September 2021
full truck. To calculate the total distance avoided People
the number of trips are then multiplied by For the 2021 Sustainability Review, Brambles
previously calculated avoided distance of a single collected data on permanent employees via the
trip from the use of the TPM. Human Resources (HR) database and reporting
Multi-Modal platform, Workday. The date of 30 June 2021 was
This activity involves the movement of products on selected to take a ‘snapshot’ of the organisation.
alternate more efficient modes of transport, such as Brambles extracted the following data in a format
rail or sea to reduce cost and deliver environmental where individuals could not be identified by name:
benefits. CO2e savings are calculated by taking the - gender;
distance that would have been travelled via road - age;
and calculating the CO2e for rail and sea travel, the - base salary;
saving is the difference between the two. - banding (pay grade);
Customer Insights Programme - parental leave (taking and returning from
In continuing to improve customers’ experience of leave);
our products, services and people, Brambles - training days (including compulsory work-
gathers the Voice of the Customer through a variety based training, development courses); and
of channels. This includes strategic leadership - volunteering (hours that comply with three
forums, face-to-face customer interviews, global days paid leave).
market insights, sharing of global best practice Employees by segment - Headcount
throughout the Group, the Relationship Program Headcount includes permanent part-time and
and customer care centres. In particular, the permanent fulltime employees and casual and
Relationship Program, which initially began in 2010, temporary staff paid through brambles payroll. It
allows us to focus on the areas that are of excludes temporary workers and contractors paid
importance to customers, with the ability to track through a third-party provider.
and measure our performance in these areas over Gender
time. Quarterly questionnaires are usually sent to Gender percentages were calculated by dividing the
customers over a 2-year rolling cycle. number of employees (headcount) by gender by
The questionnaires measure customers’ total permanent headcount, to obtain a percentage
perceptions of the level of partnership they have split. There are three categories of gender in the
with the Brambles Group, the factors driving their HR system; Male, Female and Undeclared.
loyalty and identifies the areas in which we can Age distribution
enhance their overall customer experience. Key The age of each employee (headcount) was
benefits achieved through the quarterly 2-year gathered and then sorted into six age bands.
rolling frequency are the access to more frequent Parental leave
trend data and the increase in our responsiveness Parental leave data was calculated using employee
to changes in customer attitudes, whilst not headcount number of employees who took parental
increasing the overall customer surveying burden. leave during FY21 as a percentage of total
The Relationship Programme is global and covers employees. Employees returning to work after
over 30 countries across Pallets, Pallecon parental leave was also calculated using the
Containers and Automotive Containers. The target headcount number of employees.
is that within the 2-year cycle, all business units
Management
participating reach out to at least the companies
Brambles employees are assigned a ‘band’ based on
that account for 80% of revenue. With the
their position and salary, with management defined
Relationship Program, Brambles is better positioned
as Band 3 and above (manager through to Band 6
to actively listen to customer feedback on the
and Executive Leadership Team).
Group’s performance and can be more agile in the
pursuit of customer centricity.
12Brambles Sustainability Review 2021 - Supplementary Information
As at 9 September 2021
Employee data (Headcount) is split into ‘non- The chart below shows a breakdown of different
management’ (bands zero to 2) and ‘management’ management bands in comparison to FY20;
(band 3 and above) and analysed and reported by
gender, group and segment.
Women in Plant Roles
Headcount of females located in Service
Centre/Plant are reported as at end of fiscal year
(30th June 2021), this included all full and part time
Brambles Group employees at that date. Where
gender has not been declared, the employee is not
included in the calculation.
Voluntary turnover data
Salary ratio data
Voluntary turnover data was calculated using actual
Salary ratios by gender were calculated using FY21
employee data where employment ceased on a
salary data from Workday. All salaries were
voluntary basis and includes those whose
converted to USD. Employees were split into the
redundancy was not compulsory divided by average
categories of ‘management’ (see definition of
headcount during FY21.
Management above for details), the average salary
for male and the average salary for female Brambles Employee Pulse
employees were then calculated. The average salary Survey Employee engagement is monitored through
of males were divided by the average salary of the annual Brambles Employee Pulse Survey
females to obtain the ratios. through a third party provide, GLINT. This is
In FY21 the overall the gender salary ratio remained extended to all permanent employees (employed
flat compared to FY20; for at least three months at the date of survey) and
is confidential. It surveys employees’ perceptions of
Pay parity ratio FY20 FY21 their workplace and the data is used to track
(male:female) progress from previous surveys, measure Brambles
Group 0.86:1 0.86:1 against internal and external best practice and
Non-management 0.89:1 0.90:1 identify key actions for improvement. Brambles
Management 1.13:1 1.12:1 Pulse results were analysed and converted to a
percentage score which was benchmarked against
However there was some slight variation within GLINT’s high performing benchmark. Comments will
each band. On average Females salaries for Band 3 be analysed using GLINTS technology to identify
Senior Manager and Vice President positions important themes and areas for attention by region
increased more than Males year on year, however and function The high performance norm is a
average salaries for Males increased more than standard benchmark index compiled from the
Females at Director & Senior Director level. As the collective results of a group of external
higher bands have smaller population sizes, organisations, which display outstanding financial
individual changes have a more visible impact on performance in their industries.
the comparison. Averages are also affected when Health & Safety
staff are promoted as they become part of a higher The Brambles Injury Frequency Rate (BIFR) is the
band with salaries that are typically lower than primary measure of safety performance in
existing staff of the same band. Brambles. BIFR should be regarded as being
generally comparable to the Total Recordable Injury
Rate (TRIR) used in other businesses. The difference
is that BIFR is a measure of incidents per million
work hours (exposure hours) while the more
common TRIR measures incidents per 200,000
13Brambles Sustainability Review 2021 - Supplementary Information
As at 9 September 2021
exposure hours. BIFR is a measure of the total (race, indigenous peoples), age, LGBTIQ+,
number of work-related fatalities, modified duty veterans or people from a locally
incidents, lost time or medical treatment incidents recognised disadvantaged socio-
(Recordable Safety Incidents) per million exposure economic group
hours during any given period. Safety incidents - Sponsored by a member of the regional
affecting Brambles employees as well as labour Executive Leadership Team and;
- Initiative is no longer in planning phase and has
hire, contract or temporary staff working under
launched
Brambles supervision and their associated exposure
Top Employer
hours are included in the BIFR calculation. All
Top Employer Institute is the global authority
incidents are reported, investigated and classified
on recognising excellence in people practices. CHEP
as either BIFR or work-related First Aid Treatment.
& Brambles use the Top Employers Institute to
Safety incidents involving visitors, customers and
assess and benchmark our HR practices.
third parties (e.g. trades people, servicemen, etc.)
They assess the business on six domain areas with
on Brambles operations are reported as required
20 topics and over 100 questions covering 400 best
and investigated but are not included in the internal
practices.
BIFR statistics.
Wellbeing Responsible Business
The Brambles Employee Pulse Survey score for the Due Diligence
question ’Brambles takes a genuine interest in the As a global leader in supply chain logistics, we are
employees’ wellbeing’, is taken as an indicator of deeply committed to, and passionate about,
Brambles employees’ wellbeing. In addition, respecting and promoting ethical and legally
Brambles measures the number of initiatives made compliant practices in our supply chains. Brambles
available to Brambles employees’. endeavour to only do business with suppliers who
Wellbeing initiatives must meet all the following share this commitment. Brambles communicate
criteria:
these expectations to suppliers during onboarding
- Part of a structured, multi-year programme;
and throughout the lifecycle of the engagement.
- Covering one or more of the following focus
All new suppliers must satisfactorily undergo risk-
areas: Mental Health, Financial Health,
Physical Health or Social Health; based due diligence before they are onboarded.
- Sponsored by a member of the regional ELT; Risk-based due diligence is completed, stored and
and tracked using a cloud-based platform which
- Initiative is no longer in planning phase and automates and facilitates Brambles’ programme.
has launched Consistent with Brambles Third Party Due Diligence
Inclusion & Diversity Programme, each supplier’s bribery, money
Glint have a benchmarkable set of questions, the laundering, human rights, and environmental risk
two questions that measure inclusive companies profile must be assessed by examining geography,
are: industry, government nexus and potential use of
- I feel comfortable being myself at work vulnerable populations, as well as the results of a
- Leaders at our company value different screen using Refinitiv’s WorldCheck One platform.
perspectives Where such risks are present, the supplier must
Accessibility Programmes set the right conditions undergo a form of enhanced due diligence. The
within Brambles for people of all backgrounds to
nature and extent of this enhanced due diligence is
come to work for us, focusing on groups who
dictated by the risk. This due diligence is renewed
traditionally have been under-represented in the
workforce. An accessibility initiative must periodically consistent with the supplier’s risk
meet all the following criteria: profile.
- Part of a structured, multi-year programme; Brambles issue purchase orders or enter contracts
- Covers one or more of the following focus that typically incorporate standard compliance
areas: disability, ethnicity terms and conditions and reference our Supplier
14Brambles Sustainability Review 2021 - Supplementary Information
As at 9 September 2021
Policy, making clear the expectation for suppliers to kinds of slavery. Moreover, all current office-based
work safely and with respect for the principles set employees must regularly complete refresher
out in the Brambles Supplier Policy. By signing courses on Brambles’ Code of Conduct, which
these terms and conditions, suppliers must agree to includes awareness around Brambles Human Rights
comply with, amongst other items, applicable anti- Policy and the principles it espouses. The most
bribery and anti-corruption, anti-money laundering recent of these refreshers launched on 6 July 2020,
and environmental laws and our prohibition of child and office-based employees were given 60 days to
labour, forced, bonded or compulsory labour, complete it. Both training modules are delivered
human trafficking or other kinds of slavery. and tracked using Brambles’ Learning Management
Supplier Acknowledgement System (LMS).
All newly onboarded suppliers are asked to Whilst all plant-based employees are required to
complete a Supplier Acknowledgment Form (SAF), carry out training, including Code of Conduct and
confirming that they have been made aware of and Safety trainings, in sessions led by plant
adhere to the principles set out in Brambles’ management, plant-based employees are not
Supplier Policy. SAFs are issued directly through included in FY21 reported figures.
Brambles’ due diligence platform to every new Training courses explain what human rights are and
supplier once it successfully completes due how they relate to and impact Brambles and
diligence. The supplier’s answers are recorded in reference Brambles Human Rights Policy, set out
Brambles’ due diligence platform. red flags for potential human rights abuses (e.g.,
Speaking Up around modern slavery), provide more detailed
Brambles’ Speak Up Policy sets out the company’s content on how a particular issue (e.g., privacy or
commitment to an open speaking up process in diversity) can advance human rights when properly
which individuals are encouraged to raise any managed or, if not, hinder human rights.
concerns of wrongdoing, as set out in the Speak Up % Employees trained on human rights is calculated
Policy. based on number of office-based employees
As set out in Brambles’ Speak Up Policy, complaints assigned both induction and Code of Conduct
may be made by any current or former officer, refresher training since the launch of the last Code
of Conduct refresher training against number of
employee or associate of Brambles and any party
employees who completed the training.
with whom Brambles has or had a business
relationship (including customers, suppliers,
contractors, agents or distributors). Additionally,
relatives or dependents of any of the foregoing can
Planet Positive
lodge a Speak Up complaint. Reforestation & Afforestation
All Speak Up complaints as well as any other reports Reforestation is the natural or intentional
made using Brambles Speak Up hotline are tracked restocking of existing forests and woodlands that
using a cloud-based case management platform. have been depleted. Afforestation is the
Access to the system is restricted for confidentiality establishment of a forest or stand of trees in an
purposes. area where there was no previous tree cover (a
Ethics Training method to create new forests). Brambles quantify
All Brambles employees must complete compliance and measure both reforestation and afforestation.
training on a regular basis. New office-based Brambles definition of a “tree” is - a woody plant
employees must complete induction training within that regularly renews its growth (perennial). Any
their first thirty days of employment, this induction tree grown (additional to the ones grown through
training includes a chapter on modern slavery and FSC and PEFC) will be accounted for, irrespective of
offers specific guidance on how to identify and the region or species.
report suspicions of child labour and forced, bonded
or compulsory labour, human trafficking or other
15Brambles Sustainability Review 2021 - Supplementary Information
As at 9 September 2021
Afforestation is estimated using the repair rates of the service
Afforestation projects are either implemented centres multiplied by the average volume of wood
directly by Brambles or by partnering with credible used per repair in own service centres. All lumber
and expert external organisations. purchases for new assets and the repair process will
A count of the trees planted through the project is be included.
provided along with relevant calculations of carbon To quantify and measure the amount of trees that
sequestered for type of tree species planted. need to be grown, Brambles first need to estimate
Where not available Brambles use a calculation of the amount of trees that are used for new assets
15kg CO2e per tree per year, this conservative and repair every year. Brambles uses following
amount from several different sources; methodology:
• European Environment Agency – “Over one - 0.97m3 of lumber purchased = 1 tree
year a mature tree will take up about 22 - this estimate is based on Radiata Pine (ex New
kilograms of carbon dioxide from the Zealand), a softwood species (as are the
atmosphere, and in exchange release oxygen” majority of CHEP wooden pallets). This species
• TenMillionTrees.org – Same as above was also chosen because of the availability of
• Carbonneutral.com.au - “Carbon sequestration credible external data
is measured on a per hectare basis. That may - Source of Radiata Pine: New Zealand Forestry
vary from 100 to 300 tonnes CO2-e per ha at Industry Facts and Figures 2013 version
year 30 depending on site and rainfall. Tree - Estimated large scale modern mill board yield
density also varies from 500 to 2000 stems per to be around 55% and discounted by an
hectare. Measuring trees per tonne CO2 is additional 10% to allow for harvesting
therefore highly variable.” Conservative differences to other regions. This resulted in a
approach – 100 tonnes/2000 stems = 50 kg board yield per tree of 0.97m3 per tree
CO2/tree * year (mature, 30 years old trees). Materials & Resource Management
• UrbanForestryNetwork.org - “Young trees Wood
absorb CO2 at a rate of 5.9 kg per tree each Certification
year. Trees reach their most productive stage CHEP purchases, controls, or has due diligence
of carbon storage at about 10 years at which oversight of all of the wood used in the
point they are estimated to absorb 22 kg of manufacturing and repair of CHEP pallets. Third
CO2 per year.” party outsourced service centres purchase wood
• Ecomatcher.com – “EcoMatcher estimates that directly from approved CHEP providers. The volume
the trees planted by our partners sequester of wood purchased by third parties service centres
CO2 at an average of 50 pounds per tree per is estimated using the repair rates of the service
year; we use an average of 500 pounds over a centres during FY21 multiplied by the average
tree’s lifetime.” volume of wood used per repair in own service
Potential thinning impacts will be considered centres. All wood purchased by CHEP meets one of
according to the specific projects. Proof of the following definitions:
permanence and continuous monitoring (e.g. 1) Chain of Custody (COC) certified wood: Where
through remote sensing) will be required from CHEP can verify supplier claims, through
project partners to ensure long-lasting impact. documentation, that wood purchased has an
Reforestation associated COC certification credit.
CHEP purchases, controls, or has due diligence 2) Wood from certified sources, where the wood
oversight of all of the wood used in the is not covered by CoC certification all along its
manufacturing and repair of CHEP pallets. Third supply chain, however CHEP has access to
party outsourced service centres purchase wood documentation and proof that the wood
directly from approved CHEP providers. The volume comes from a certified forest (whether under
of wood purchased by third parties service centres FSC or PEFC or an endorsed SFM scheme).
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