Sustainability Report 2021 - Ansell

Page created by Max Wood
 
CONTINUE READING
Sustainability Report 2021 - Ansell
Sustainability
 Report 2021
Sustainability Report 2021 - Ansell
Contents

Statement from Magnus Nicolin              02   Better society                               29
Performance snapshot                       04   Employee health and safety                   29
                                                Labour rights                                32
Our operating context                      05
                                                Employee engagement                          38
Sustainability at Ansell                   06   Diversity and inclusion                      43
Our material topics                        07   Community engagement and investment          45
About Ansell                               08   Better environment                           48
Sustainable Development Goals              11   Environmental impact and compliance          48
                                                Climate risk                                 49
Ansell’s value chain                       12
                                                Energy and emissions                         54
Value chain impacts                        14   Water                                        56
Our stakeholders                           15   Operational resource efficiency and waste    58
Better business                            16   Responsible supply chains                    61
Governance and business ethics             16   Appendices                                   62
Sustainability governance                  19   About this report                            69
Our supply chain and business continuity   21
Innovation and product stewardship         23

                                                                                 Biomass
                                                                         On the front cover and this page:
                                                                Biomass provides an alternative energy source
                                                              to fossil fuels like petroleum, natural gas and coal.
                                                              At Ansell, biomass is used to fuel High Pressure Hot
                                                               Water Generators (HWGs) that produce over 40%
                                                                    of the thermal energy required at Ansell
                                                               manufacturing facilities. Two biomass generators
                                                                at our plant in Bangkok, Thailand (shown here)
                                                                 have reduced our consumption of natural gas
                                                               resulting in the reduction of 40,000 MTCO2e from
                                                               our greenhouse gas (GHG) inventory. In Sri Lanka,
                                                                 three biomass HWGs are replacing the use of
                                                                 furnace oil, resulting in a reduction of 39,000
                                                                        MTCO2e from our GHG inventory.

Ansell Limited
ABN 89 004 085 330
Sustainability Report 2021 - Ansell
Solar
             Over 1.6MW of Solar Photovoltaic (PV)
        generation capacity has been installed across
         the roofs of Ansell manufacturing facilities in
          China, Sri Lanka and Thailand (shown here).
        Manufacturing will benefit immensely from the
          clean, renewable energy derived from solar
           power, reducing electricity costs and GHG
          emissions. The large flat-roofed surfaces of
           factories make them ideal for solar panel
            installation. Solar PV projects currently
           being implemented in Sri Lanka, Portugal,
              Malaysia and Vietnam are slated for
                       completion in FY22.

                  Reverse Osmosis
           Wastewater at our Bangkok, Thailand plant
      is pre-treated in our effluent treatment plant before
       being fed into the newly installed Reverse Osmosis
     (RO) plant. In the RO process, treated water is drawn
      under pressure through semipermeable membranes
         and the concentrate (waste) stream is processed
        again as part of the multi-stage system to remove
         contaminants and increase the amount of water
     recovered for re-use. In FY21, Ansell’s first large scale
          RO treatment facility was installed in Thailand
       (shown), with future investments being planned in
        Malaysia and Sri Lanka in FY22. Once completed,
           these projects will result in a 35% reduction
               of Ansell’s total water withdrawals.

                                                        Ansell Limited
01                                                  Annual Report 2021
Sustainability Report 2021 - Ansell
Statement from Magnus Nicolin

Despite the disruptions of COVID-19, Ansell has delivered
exceptional financial results and advanced a very ambitious
agenda to expand production and increase automation, whilst
still maintaining our focus on Sustainability.
Magnus Nicolin – Advisor to the Ansell Board of Directors
Mr Nicolin retired as Managing Director and CEO of Ansell on September 1, 2021, having
successfully led the Company since 2010. Mr. Neil Salmon has succeeded Mr Nicolin as CEO.

In FY21, we accelerated efforts to lead our industry in
responsible environmental, social, and governance (ESG)
standards, building on previous years during which we laid the
foundation for our activities and investment in the sustainability
platform. Our Responsible and Responsive Strategy (see page 06)
guides our approach to sustainability and sets out our values
and ambitions across three dimensions: Better Society, Better
Environment, and Better Business.

Despite the disruptions of COVID-19, Ansell has delivered
exceptional financial results and advanced a very ambitious
agenda to expand production and increase automation while
still maintaining our focus on sustainability. Equally important,
we have undertaken new initiatives aligned with global ESG
standards and our Responsible and Responsive Strategy to
advance the sustainability platform. So, while the pandemic
is still very much with us, our performance in key areas
highlighted in this report is driven by a growing momentum
to ensure a more sustainable future.

At Ansell, everything we do begins – and ends – with safety,
from our people to our products. Our approach to safety has
evolved during the COVID-19 pandemic, with Ansell implementing
new safety protocols and working in partnership with public health
authorities and third parties to protect our workers. In addition, in        In FY21, Ansell’s state-of-the-art facility in Bangkok, Thailand went live.
FY21 we accelerated a shift of our already strong safety culture to          When the expansion at this plant is completed, we will nearly double the
a broadly based ownership of health and safety well beyond senior            supply of TouchNTuff®, the world’s best-selling disposable glove for chemical
management and our Environment, Health & Safety managers                     splash protection. These new lines in Bangkok are the largest, fastest and most
to all operational leadership teams, general managers, and                   energy efficient in Ansell history.
supervisors at local sites. In this way, we have assigned a shared
responsibility for safety to all leaders while integrating it into           At Ansell, everything we do begins – and ends –
key performance indicators, like financial performance.                      with safety, from our people to our products.
Respecting and protecting the rights of workers is an ethical                Our approach to safety has evolved during the
obligation. We have made major strides in our management                     COVID-19 pandemic, with Ansell implementing
of labour rights in our operations having established our Labour             new safety protocols and working in partnership
Standards Management System to set Ansell’s expectations and
standards on labour rights at all our sites. Additionally, we have
                                                                             with public health authorities and third parties
set industry-leading housing standards for migrant workers in                to protect our workers.
our employ (see photo on page 36). We will have completed
initial third-party Sedex Members Ethical Trade Audits of our                At the end of January 2021, we completed a program to reimburse
manufacturing plants in Brazil, Portugal and Lithuania by the                recruitment fees for migrant workers in our operations. Ansell has
publication of this report. Annual third-party audits were                   never charged nor benefited from any recruitment fees paid by any
successfully completed at all our Asian plants. Our new factory              migrant worker. These fees were demanded by independent agents
in Russia began operations in June 2021 and our labour standards             in the home countries of migrant workers to facilitate their coming
management system has been implemented at this site, with an                 to Malaysia and had no connection to Ansell. Although COVID-19
initial audit scheduled for FY22.                                            has placed the hiring of migrant workers on hold, our Zero
                                                                             Recruitment Fee policy remains in place.

Ansell Limited
Sustainability Report 2021                                              02
Sustainability Report 2021 - Ansell
The safety of our workforce remains our key
                                                                                                    priority through COVID-19 as we roll out
                                                                                                    vaccinations and maintain safety measures
                                                                                                    across our manufacturing operations.

We have demonstrated that, rather than impeding profitable growth,
corporate sustainability objectives can support it.

In 2021, we developed a risk-based Supplier Management                    This year, we launched foundational work to establish a strategy
Framework which will guide and support labour standards                   by which Ansell would be able to commit to significant longer
improvements in our supply chain. These enhancements include              term reduction of our carbon footprint, in line with the Paris
processes for supplier selection, contracting, and ongoing                Agreement. This effort is progressing with a timeline to present
management, and ways to standardise processes relating to                 our conclusions and recommendations to the Executive
identifying, assessing, and managing modern slavery risks across          Leadership Team and the Board of Directors later this year.
our supply chain. While we are proud of our progress to date,             We are also embedding sustainability principles into new
there is more for us to do to manage modern slavery risks. We             product development and using life cycle assessments to
are committed to working with suppliers to improve their labour           explore solutions that will decrease the environmental impact
practices and secure improved conditions for their workers.               of our products and packaging (see page 23).

We significantly accelerated our strategy to achieve our                  This is my final sustainability message as our new CEO Neil Salmon
environmental targets in FY21, conducting fundamental analysis            takes up the baton. In the coming pages, I am proud to inform
and mapping out and identifying a $23m portfolio of water,                you of the exceptional progress we have made in embedding
energy, and waste projects. This plan represents Ansell’s largest         sustainable practices into our business over the past decade.
consolidated investment to date in sustainability initiatives at          We have demonstrated that, rather than impeding profitable
our manufacturing facilities. We have also formalised senior              growth, corporate sustainability objectives can support it.
responsibility and ownership of environmental measures and                With the strong commitment shown by our Board and the
performance by linking key performance indicators to the                  Executive Leadership Team, we can continue to foster innovation
accomplishment of environmental targets and programs to assess            and inspire our talented workforce to generate lean, green
the performance of Senior Vice Presidents, as well as all Vice            processes and sustainable new products, and do it better year
Presidents, and General Managers on the operational team.                 after year.
Assigning senior management ownership drives accountability
at global and site-levels thus ensuring steady progress and early         I want to thank our Ansell employees for all they do every day
achievement of our goals. We aim for a ‘big-small company’                to create a safer and better-protected world.
culture at Ansell where individual sites and teams have the
freedom to trial initiatives so that technology and knowledge can
be implemented globally when successful.

Ansell supports the transition to a sustainable low-carbon future
and we have been advancing on our FY19 strategic plan to identify,
manage and disclose climate-related risks and opportunities in            Magnus Nicolin
alignment with the Recommendations of the Task Force on                   Advisor to the Ansell Board of Directors
Climate-related Financial Disclosures (see page 49).

                                                                                                                                      Ansell Limited
                                                                     03                                                  Sustainability Report 2021
Sustainability Report 2021 - Ansell
Performance snapshot

    Lost time injury frequency decreased by 26%.                     Managing COVID-19. We continue to emphasise
    This is primarily attributable to increased focus on             COVID-19 safety to keep our workers safe by
    high-risk tasks and incident investigations during               maintaining stringent controls, for early detection
    the year.                                                        of at-risk employees and making vaccines available
                                                                     to our workforce.

    Six point improvement in Near Miss Frequency                     Employee engagement rose to 70%. This represents
    (per 100 employees per year) represents Ansell’s biggest         an increase of four percentage points from 2019.
    improvement to date as we raised awareness and                   This was primarily driven by an 11 point increase
    leveraged on tech platforms to easily identify and report        in the engagement of our professional workers.
    unsafe behaviours before these they turn into accidents.

    Further advancing alignment to the Task Force                    In FY21 we undertook foundational work to establish
    on Climate-related Financial Disclosures (TCFD)                  a strategy for significant longer term reduction in our
    Recommendations and annual participation in the CDP              carbon footprint, in line with the Paris Agreement.
    (formerly the Carbon Disclosure Project) climate and
    water environmental stewardship assessment process.

    Committed to a Packaging Pledge to reduce                        Repayment of recruitment fees. In January 2021,
    environmental impact. We are working toward                      Ansell completed remediation of recruitment fees
    minimising environmental impact to keep our planet               to migrant workers in our Malaysian manufacturing
    safe, while advancing protective solutions that keep             facilities who had paid recruitment fees to unethical
    people safe.                                                     third party agents in their home country.

    Life Cycle Assessments (LCAs) of key products.                   Development of a Supplier Management Framework.
    Conducted LCAs on the environmental impact of                    Ansell worked with third party advisors to develop
    multiple products across our healthcare and industrial           a Supplier Management Framework which will drive
    business units and will use this information to develop          improvements in our management of labour rights
    our product stewardship strategy.                                risks in our supply chain.

    100% renewable electricity at our Lithuanian plant.              Energy consumption rose by 17% and water withdrawal
    In FY21 we achieved 100% electricity consumption                 by 13%. Our overall energy consumption and water
    from renewable sources in our Lithuania plant via a              withdrawal increased in FY21, due to a sustained
    guarantee of an origin power purchase agreement.                 increase in production volumes. Demand increased
    Now our Lithuania and Portugal plants both operate               during the COVID-19 pandemic as we strived to
    on electricity consumed from renewable sources.                  increase our production to support the urgent need to
                                                                     supply protective equipment to frontliners.

    92% of waste from our manufacturing sites was                    Ansell Textiles Lanka (ATL) in Seeduwa, Sri Lanka,
    diverted from landfill in FY21. This is a significant            and our Lithuania plant were successfully certified
    increase from 86% in FY20, reflecting efforts to                 by an independent third-party on the achievement
    increase the number of landfill diversion pathways.              of a waste to landfill diversion rate exceeding 99%*.
                                                                     * Against Intertek’s Zero Waste to Landfill certification criteria.

Ansell Limited
Sustainability Report 2021                                      04
Sustainability Report 2021 - Ansell
Our operating context

Overall, ESG-related drivers in our operating context continue
to accelerate and present non-financial risks and opportunities
for the business. In FY21, we focused on our business priorities and
key opportunities to overcome challenges and remained vigilant
to emerging issues to meet our stakeholders’ expectations and
keep our people safe, especially during the uncertainties surrounding
the pandemic. For more details on our operating context, please
refer to our 2021 Annual Report.

                                                               ness                      Automat
                                                        y aware                                 ion a
                                                                                                     nd d
                                                     lit
                                                inabi                                                    igit
                                                                                                             isa
                                             sta                                                                tio
                                           Su                                                                      n
                                                                                            Digitisation has
                                                         Growing sustainability
                                                                                       accelerated globally, due
                                                         awareness globally is
                                                                                        in part to COVID-19 but
                             e

                                                           translating into an
                                                                                       more broadly, automation
                           nc

                                                             increased focus
                       ilie

                                                                                        and robotics pose both
                                                         among our customers,

                                                                                                                                             Bi
                                                                                           opportunities and
                    res

                                                          end users and other

                                                                                                                                               od
                                                                                           challenges for our
                                                               stakeholders

                                                                                                                                                 ive
                 in

                                                                                         business, particularly
                                                          including investors.
              cha

                                                                                           in manufacturing.

                                                                                                                                                    rsit
                                                                                                                  Stakeholders are placing
                               COVID-19 has put                                                              increasing emphasis on corporate

                                                                                                                                                        y
          ply

                            significant pressure on                                                          impacts on biodiversity, and there
       Sup

                          global supply chains and is                                                        is a growing understanding of the
                          driving a renewed focus on                                                         importance of ecosystem services
                            supply chain resilience.                                                         provided by the natural world. We
                                                                                                                expect this to be an emerging
                                                                                                              area of interest in coming years.

                  As a global company, Ansell must
                                                                                                                       The pandemic is driving
                keep pace with evolving legislative
                                                                                                                   unprecedented demand for our
                 requirements across the multitude
                                                                                                                    products while simultaneously
                of jurisdictions in which we operate.
   Regulati

                                                                                                                                                              -19
                                                                                                                     challenging more traditional
                 This includes preparing to comply
                                                                                                                   supply chains and ways of doing
                 with increased legislation relating

                                                                                                                                                         COVID
                                                                                                                      business while keeping our
                        to our management of
                                                                                                                           employees safe.
                         sustainability issues.
           on

                                            Labour rights across                                        Global emissions must
                                          our own operations and                                     halve this decade and drop
                                         manufacturing plants is a                                 to net zero by 2050 to meet the
                                         key area of focus for both                               ambitions of the Paris agreement.
                                        Ansell and our stakeholders.                                   To do so, businesses and
                                                                           The pandemic and
                                         There also continue to be                                      governments alike are
                                                                          geopolitical tensions
                                            concerning incidents                                     increasingly turning to new
                                                                        continue to drive a push
                                            involving our supply                                     carbon reduction solutions
                                                                           towards localised
                                           chain and our industry                                      to decarbonise business
                                                                         production, especially
                                               more broadly.
                                                                                                                                         n

                                                                       of essential products such     models and value chains.
                                 bo
                                                                                                                                      tio
                          La

                                   ur                                    as personal protective
                                                                                                                                    isa
                                      rig                                   equipment (PPE).                                     on
                                         ht                                                                                    rb
                                           s                                                                                eca
                                                                                                                           D

                                                                   Geopoli
                                                                          tical disruption

                                                                                                                                                       Ansell Limited
                                                                                  05                                                      Sustainability Report 2021
Sustainability Report 2021 - Ansell
Sustainability at Ansell

A Responsible and Responsive Strategy & Purpose                                                                                               Our material topics

                                                                                                                                  • Labour rights          • Diversity and inclusion
                                                                           • We care about our people
                                                                             and safety is our top priority                       • Employee health        • Community
  Better                                                                   • We support our communities
                                                                                                                                    and safety               engagement and
  Society                    Employees                                                                                            • Recruitment and          investment
                             and wider   Community          Business       • We play fair and conduct
                                                                                                                                    engagement             • Business ethics and
                             workforce                       ethics          business ethically
                                                                                                                                                             governance

                                                                           • We use natural resources
                                                                                                                                  • Energy and emissions   • Operational resource
                                                                             with care
                                                                                                                                  • Responsible supply       efficiency and waste
  Better                                                                   • We work to continually
                                                                                                                                    chains                   minimalisation
  Environment                             Energy and       Materials         lower our GHG emissions
                                                                                                                                  • Water                  • Environmental impact
                              Water         carbon         and waste       • We respect the local
                                                                                                                                  • Climate risk             and compliance
                                                                             environment

                                                                            • We provide our customers
                                                                              with safety and
  Better                                                                      productivity solutions                              • Innovation and         • Business continuity
  Business                                                                  • We choose like-minded                                 product stewardship      and demand response
                             Customers     Suppliers        Investors         partners
                                                                            • We reward investors

Note: The most material topics are shown in bold.

As a manufacturing company with a complex production                                             We are applying the principles of product stewardship and
footprint, sustainability risks and opportunities arise at multiple                              lifecycle analysis to our product range and innovation and
points across our value chain, from raw material sourcing and                                    using our manufacturing and engineering excellence to reduce
production through to product disposal. This comes with                                          our environmental footprint. In today’s world, our social and
obligations and responsibilities to our shareholders, customers,                                 environmental performance is as important to our brand equity
employees and our broader workforce, alongside our suppliers,                                    as the quality of our products. For more information about
community and the planet.                                                                        our strategy, see our 2021 Annual Report.

Sustainability is increasingly integral to Ansell’s strategy.                                    Our approach to sustainability is guided by our Responsible and
Continuous investment in CSR and sustainability is a key strand of                               Responsive Strategy, which sets out our values and ambitions
our strategic approach, while employee passion and sustainable                                   across three areas – better society, better environment and
practices underpin our Eight Dimensions of Differentiation.                                      better business. Leveraging these principles, this year we have
                                                                                                 increased our efforts to embed sustainability into our approach
                                                                                                 across the value chain.

                                                       Ansell’s Eight Dimensions of Differentiation

     Make it easy with digital solutions to do business                                                                            Industry leading customer intimacy and
     with and within Ansell                                                   8.                        1.                         expertise to solve customers’ safety and
                                                                          DIGITALLY                CUSTOMER                                         productivity challenges
                                                                            EASY                    INTIMACY
                                                                                                                          2.               Broadest product range and best
                                                                 7.
     Quality, reliability and consistency in supply          DELIVERY
                                                                                                                       PRODUCT             innovation capability leveraging
                                                                                         OYEE PASSI                    RANGE &
                                                             & SERVICE                 PL                                                           advanced materials and
                                                                                                       ON
                                                                              EM

                                                                                                                     INNOVATION
                                                                                                                                                           new technology
                                                                                            Safety
     World-class manufacturing, engineering                      6.                                                     3.
     and sourcing with industry leading                    MANUFACTURING                                              ANSELL                   Most trusted and well-known
                                                                            SU

                                                                                                                 S

                                                                             ST
                                                                                                            CE

                                                                                                                 I    BRAND
     safety practices                                      & ENGINEERING          AI
                                                                                       NA
                                                                                            BILIT Y P R A
                                                                                                            CT                                            brands worldwide
                                                                                                                      EQUITY
                                                                              5.                       4.
                                                                         REGULATORY                CUSTOMER
                                                                        & COMPLIANCE               COVERAGE
     Expertise in safety, regulatory and compliance                        SERVICES                                                Broadest geographic and channel reach
     solutions and services

          By continuing to enhance our Eight Dimensions of Differentiation in a sustainable manner, we deepen the ‘moat’ around Ansell

Key: Solid capabilities already in place Further strengthen and invest

Ansell Limited
Sustainability Report 2021                                                              06
Sustainability Report 2021 - Ansell
Our material topics

We want our disclosures and actions on sustainability to focus on
the topics that matter most to our business, our stakeholders and
our community.                                                                    The issues
                                                                                that matter to
In FY20 we conducted a detailed materiality assessment based                   Ansell’s business
on the Global Reporting Initiative (GRI) Standards 2016 and the                  performance
Sustainability Accounting Standards Board (SASB). We identified
our material topics through the three lenses detailed in the
adjacent diagram.                                                                                                   The issues on
                                                                                                                     which Ansell
For more information about this process, see our Sustainability                                                     currently has,
Report 2020, page 8.                                                                                                or could have,
                                                                                                                      an impact
In preparation for the 2021 Sustainability Report, we conducted
a high-level refresh of our material topics to ensure they still
                                                                                   The issues
accurately capture our most material sustainability impacts and
                                                                                  that matter
opportunities. As a result, we have combined ‘quality protection
                                                                                   to Ansell’s
solutions’ with ‘innovation and product stewardship’, to reflect
                                                                                 stakeholders
the integrated way in which these topics are now managed within
the business. Similarly, we have absorbed ‘chemicals and
hazardous waste’ into aspects of ‘health and safety’, ‘innovation
and product stewardship’ and ‘environmental impact and
compliance’. The definition and boundaries of our material topics
are outlined on page 65.

Our material topics

                                   Labour rights                         Diversity and inclusion
   Better
                                   Employee health and safety            Community engagement and investment
   Society
                                   Recruitment and engagement            Business ethics and governance

                                   Energy and emissions
   Better                          Responsible supply chains             Operational resource efficiency and waste minimalisation
   Environment                     Water                                 Environmental impact and compliance
                                   Climate risk

   Better                          Innovation and product                                                Image
                                                                         Business continuity and demand response
   Business                        stewardship

Note: The most material topics are shown in bold.

                                                                                                                                 Ansell Limited
                                                                    07                                              Sustainability Report 2021
Sustainability Report 2021 - Ansell
About Ansell

For more than 125 years, Ansell has
delivered advanced protection solutions
to millions of people, both at work and
at home.

Ansell is a global company employing
more than 14,000 people in 58 countries.
Ansell Limited is domiciled in Melbourne,
Australia and is listed on the Australian
Securities Exchange (ASX). Ansell has four
corporate headquarters – Melbourne,
Australia; Brussels, Belgium; New Jersey,
United States and Cyberjaya in Malaysia.
Our manufacturing sites, offices, research
and development and distribution sites
are set out on the map of our operations
on the right.                                                                     North
                                                                                  America
Ansell continually invests in the research,
development, manufacture and                                                        582
distribution of cutting-edge products and
technology, marketed under well-known
brands that customers trust. Operating
across two business segments, Industrial
and Healthcare, Ansell is a market leader,
selling protection solutions to customers
in more than 100 countries.

   Healthcare                                 Industrial
   Global Business Unit                       Global Business Unit                           Latin America
   The Healthcare GBU manufactures and        The Industrial GBU manufactures and            & Caribbean
   markets innovative solutions for a wide    markets high-performance hand and
   range of customers, including hospitals,   Chemical Protective Clothing solutions             389
   surgical centres, dental surgeries,        for a wide range of industrial applications.
   veterinary clinics, first responders,      Ansell protects workers in almost every
   manufacturers, auto repair shops,          industry, including automotive, chemical,
   chemical plants, laboratories and          metal fabrication, machinery and
   pharmaceutical companies.                  equipment, food, construction, mining,
                                              oil & gas and first responders.

Ansell Limited
Sustainability Report 2021                                 08
Europe,
                                                      Middle East
                                                      & Africa

                                                       998

                                                                                           Asia Pacific

                                                                                             12,190

Our largest manufacturing facilities are in Malaysia, Sri Lanka and           Map Key
Thailand, with smaller facilities located in Brazil, China, Lithuania,
Portugal, and Vietnam. We opened a new manufacturing site in
Russia in June 2021.                                                             Corporate hubs
                                                                                 Offices
                                                                                 Manufacturing facilities

                                                                                 Warehouse/distribution facilities
                                                                                 R&D facilities/Centres of Excellence
                                                                                 Employees by region (total 14,159)

                                                                                                             Ansell Limited
                                                                         09                     Sustainability Report 2021
Ansell’s global approach to operational excellence improves year over year. It is part of an
                             overall commitment that enables us to meet and exceed our manufacturing goals while
                             keeping workers safe and making the best use of natural resources. Here, the compounding
                             control room at Ansell Thailand.

Ansell Limited
Sustainability Report 2021            10
Sustainable Development Goals

The United Nations Sustainable Development Goals (SDGs)                 In addition Ansell endorses/is a signatory to:
comprise 17 goals and 169 targets aimed at addressing many
                                                                        • Taskforce for Climate-related Financial Disclosures
of the world’s most pressing challenges. Ansell believes that
business should work alongside governments and civil society            • Workplace Gender Equality Agency gender equity pledge
to drive action to achieve these goals.                                 • UN Guiding Principles on Business and Human Rights

As part of our FY20 materiality assessment we identified six            • International Labour Organisation Core Conventions
Sustainable Development Goals which we consider Ansell
is best placed to impact. As we step up our commitment to reduce
our GHG emissions, we have added SDG Goal 13, Climate Action.

                     Ansell’s business is
                     closely tied to
                     healthcare.

                     Some of Ansell’s raw
                     materials and associated
                     manufacturing processes
                     are water intensive.

                     Ansell has a role to
                     play in energy efficiency
                     and renewables.

                     Ansell makes a significant
                     contribution to employment
                     and economic growth,
                     including in lower and
                     middle income countries.

                     As a global employer, Ansell
                     can help to address inequality.

                     Product stewardship is a recent
                     focus area for Ansell and is
                     strongly correlated to Goal 12.

                     Ansell supports the Paris
                     Agreement and is responding
                     to the global threat of
                     climate change.

                                                                                                                                      Ansell Limited
                                                                   11                                                    Sustainability Report 2021
Ansell’s value chain

   Governance                      Product                           Raw materials                Manufacturing
                                   development

  Strong governance          Our Research and                  Many of our products         Ansell’s top priority is
  practices guide the        Development (R&D)                 are made from synthetic      protecting the safety and
  ethics and integrity       teams have conducted              petroleum-derived            labour rights of workers,
  across every part of our   Life Cycle Assessments            materials in addition        and mitigating modern
  business, with senior      screening on the                  to natural materials         slavery risks from
  management and the         environmental impact              such as cotton or rubber.    our supply chain. We
                                                               Both contain embedded
  Board of Directors         of multiple product lines                                      implement our robust
                                                               impacts from their
  directly overseeing our    from our Industrial Global                                     safety and labour
                                                               production and processing.
  sustainability progress    Business Unit (IGBU) and          We have launched             management systems
  and initiatives.           Healthcare Global                 innovation partnerships      for our sites and
                             Business Unit (HGBU)              to better manage these       outsourced manufacturers.
                             which includes carbon             impacts.
                             footprint and water                                            Energy and water
                             footprint. We use this            For example, we are          consumption of
                             information to continue           replacing the polyester      manufacturing facilities
                             to develop our product            yarn in the overedging       are intensive, with
                                                               of our gloves with a         negative outputs such,
                             stewardship strategy
                                                               recycled yarn made           as a GHG emissions and
                             and focus on ‘hotspots’.
                                                               from plastic waste in        waste. Ansell’s Zero Waste
                                                               our Ansell Lanka Textiles    to Landfill goal
                                                               plant in Sri Lanka. We
                                                                                            certifications are our
                                                               are also rolling out a
                                                                                            proud achievements, and
                                                               structured approach to
                                                               responsible raw material     we will continue good
                                                               sourcing as part of our      momentum with
                                                               Supplier Management          our $23m portfolio of
                                                               Framework.                   projects. We require the
                                                                                            same expectations of our
                                                                                            outsourced manufacturers
                                                                                            through our Supplier
                                                                                            Code of Conduct.

  Related Sustainable Development Goals

Ansell Limited
Sustainability Report 2021                                12
Marketing                     Distribution                       Use                        Disposal
      and sales

Our customers are             Once we have                        The Ansell brand is       Our products are used in
increasingly looking for      manufactured products               differentiated by its     industrial and healthcare
products that compete         from raw materials                  quality and performance   settings where they are
not just on price and         they are transported to             features and millions     exposed to contaminants,
performance but also on       distribution centres and            of end users around       meaning that recycling
sustainability credentials.   then onto customers and             the world trust that      is a less viable end-of-life
We operate a two-way          end users. Our life cycle           our products will keep    option. Our products are
dialogue with customers,      assessments showed                  them safe from harm       typically incinerated or
gathering their feedback      that the carbon                     in industrial and         sent to landfill but we
on potential product          footprint associated                healthcare settings.      are exploring alternative
improvements and              with transporting our                                         end-of-life options with
communicating                 products is not significant.                                  a lower environmental
sustainability                However we are                                                impact. For example, we
improvements as part          working on sustainable                                        are exploring waste-to-
of our marketing and          packaging innovations                                         energy co-processing
sales activity.               that reduce waste and                                         for our healthcare
                              the overall weight, which                                     gloves and the use
                              in turn reduces emissions                                     of our glove waste in
                              associated with product                                       manufacturing cement.
                              distribution.

                                                                                                                Ansell Limited
                                                             13                                    Sustainability Report 2021
Value chain impacts

                                                                                       Governance

                                            Product        Raw                         Marketing
                                                                       Manufacturing                Distribution       Use         Disposal
                                          development    materials                     and sales
                   Controlled
                                            Ansell                        Ansell         Ansell       Ansell
                   by Ansell
                                                                         Finished                                       B2B        End users,
                   Controlled                           Raw material                                 Logistics
                                                                          goods                                     customers       disposal
                   by others                              suppliers                                  suppliers
                                                                         suppliers                                 and end users   providers

                   Business ethics
                   and governance

                   Business continuity
Better             and demand
Business           response

                   Innovation
                   and product
                   stewardship

                   Labour rights

                   Employee health
                   and safety

                   Recruitment
Better             and engagement
Society
                   Diversity and
                   inclusion

                   Community
                   engagement
                   and investment

                   Environmental
                   impact and
                   compliance

                   Climate risk

                   Energy and
                   emissions
Better
Environment
                   Water

                   Operational
                   resource efficiency,
                   waste minimisation

                   Responsible
                   supply chains

Ansell Limited
Sustainability Report 2021                                               14
Our stakeholders

We aim to build strong relationships with our key stakeholders             Stakeholders continue to show an elevated interest in Ansell’s
and business partners. Transparent and open communication is               sustainability topics and a keen enthusiasm to be kept informed
central to building trust in our brand and products, which in turn         and engaged on these topics. In recent years, we have deployed
is key to our success. We engage with stakeholders on a broad              our existing communication channels, such as direct meetings,
range of topics that span our value chain and the full suite of            presentations and evaluation forms with customers and Annual
our business activities, from product design and sourcing through          General Meetings, letters and surveys from shareholders and
to manufacturing, use and end of life. Our ongoing stakeholder             investors, to take our stakeholders on this journey with us.
engagement informs us of the structure and level of detail in
our reporting, and our method of engagement varies depending               COVID-19 continues to challenge our ability to engage with our
on the type of stakeholder and the nature of their interest, as set        stakeholders in person through traditional forums such as investor
out below.                                                                 presentations and trade shows. As a result, we have increased
                                                                           our use of virtual forums for meetings and presentations and
                                                                           have increasingly communicated directly with stakeholders
                                                                           through phone and video calls.

Stakeholder group       Key areas of interest                                          How we engaged in FY21
Customers (B2B)         Business conduct                                               Customer service interaction
                        Business continuity/reliability of supply                      Direct engagement
                        Environmental impact and compliance                            Marketing
                        Labour rights                                                  Plant visits
                        Pricing                                                        Sales and contract negotiations
                        Innovation and product stewardship                             Trade shows
                        Responsible supply chains                                      Webinars
                                                                                       Website
End users               Business continuity                                            AnsellGUARDIAN™
                        Environmental impact and compliance                            Contact through distributors
                        Labour rights                                                  Customer service interaction
                        Pricing                                                        Customer site visits
                        Innovation and product stewardship                             Marketing
                        Responsible supply chains                                      Webinars
                                                                                       Website
Employees and           Climate risk                                                   Company-wide email
contractors             Community engagement and investment                            Conferences and events
                        Diversity and inclusion                                        Engagement surveys
                        Engagement                                                     Innovation Awards
                        Environmental impact and compliance                            Intranet
                        Financial performance                                          Town halls
                        Health and safety                                              Training
                        Labour rights                                                  Volunteer and community programs
Investors               Financial performance                                          Annual General Meetings
                        Material sustainability topics, especially: Climate risk       ASX disclosures
                        (TCFD), environmental impact and compliance, diversity         Capital market days
                        and inclusion, health and safety and labour rights             Chairman’s circuit
                                                                                       Direct engagement
                                                                                       Investor presentations
                                                                                       Sustainability road shows
                                                                                       Written letters and communications
Local communities       Community engagement and investment                            Education and healthcare support
                        Environmental impact and compliance                            Local events
                                                                                       Philanthropic activities
                                                                                       Sponsoring
                                                                                       Volunteer programs
NGOs                    Labour rights                                                  Direct engagement
                        Responsible supply chains                                      Donations/disaster relief support
                                                                                       Partnerships
                                                                                       Sustainability Report
Regulators              Business conduct                                               Annual Report
                        Environmental impact and compliance                            Direct engagement
                        Governance                                                     Participation in business and industry associations
                        Health and safety                                              Sustainability Report
                        Labour rights
Suppliers               Business conduct                                               Audits (including third-party audits)
                        Business continuity                                            Direct engagement
                        Labour rights                                                  Participation in business and industry associations
                        Product specifications and quality expectations                Supplier agreements
                        Responsible supply chains                                      Supplier Code of Conduct

                                                                                                                                     Ansell Limited
                                                                      15                                                Sustainability Report 2021
Better Business

Governance and business ethics

Our perspective
Our corporate governance framework guides Ansell’s culture of integrity, accountability and transparency.
By implementing the right governance framework and appointing skilled and independent Non-Executive
Directors to our Board, Ansell can best serve shareholders’ and stakeholders’ long-term interests,
maintaining trust in our brand.

Our approach
Our corporate governance approach is guided by Ansell’s Board             Ansell. The Board conducts reviews of our governance framework,
of Directors (Board), values, risk management framework and Code          policies and practices regularly to ensure that they align with
of Conduct. We apply the ASX’s Corporate Governance Council’s             shareholders’ expectations, global best practice and our internal
Corporate Governance Principles and Recommendations (ASX                  processes and practices.
Principles), as summarised in our Corporate Governance statement.
                                                                          The Board met (including Committee meetings) 19 times in
The Board is ultimately responsible for the oversight and review          FY21, and during this period its key areas of focus were as
of the management, administration and overall governance of               depicted below.

                                                                Oversight
                                    Board &                                              Risk management,             Sustainability &
   Company strategy                                             of capital
                                  management                                               governance &               Corporate Social
    & performance                                              management
                                   succession                                               compliance                 Responsibility
                                                                initiatives

Board composition and skills                                              At this year’s Annual General Meeting, Mrs Marissa Peterson
                                                                          and Mr Peter Day will retire from Ansell’s Board after more than
Ansell’s Board is currently comprised of four female and four             15 and 14 years’ service respectively, having made a significant
male non-executive directors and the CEO. Our Board Charter               contribution to the Company during their tenure. The Board and
and Constitution guides the independence of our Board to ensure           management wish to acknowledge and thank Mrs Peterson and
that decisions are informed by external views and experiences.            Mr Day for the significant contribution both have made to the
The Board formally assesses the independence of its                       Company over their tenure.
directors annually.
                                                                          On 8 June 2021 Ansell announced that Mr Neil Salmon would
Robust decision-making and governance require a variety of                succeed Mr Magnus Nicolin as CEO and Managing Director
skills and attributes. Ansell maintains a board skills matrix, and        effective 1 September 2021. Mr Nicolin will continue with
Directors are required to self-assess their attributes against the        Ansell as a Special Advisor to the Board and the new CEO
matrix every three years. The skills and attributes listed include        until his retirement on 31 December 2021. The Board and
leadership, strategy and commercial acumen, international                 management wish to acknowledge and thank Mr Nicolin
experience, and health, safety and sustainability. Eight of nine          for his significant contribution to the Company and for the
directors bring a developed capability or competency in health,           quality of his leadership and judgement over the past 11 years.
safety and sustainability.

The Board self-assesses its performance and each Board
Committee, individual Director and the Chairman annually.
Every three years the Governance Committee engages external
consultants to conduct this review, comparing Ansell’s
performance against peers and competitors and advising
on the skills, attributes and experience required by the Board
to meet Ansell’s evolving strategic goals. The last review was
conducted in FY19.

Ansell Limited
Sustainability Report 2021                                           16
Better Business

                                                                   Shareholders

                                                                    Ansell Board
                                                                    of Directors

         Audit and Compliance                 Sustainability and                    Human Resources
                                                                                                                       Governance Committee
              Committee                        Risk Committee                         Committee

           Financial reporting,                                                 Reviewing remuneration,              Reviewing Board, Director
         reviewing adequacy of                Risk management                 recommending and approving                  and Committee
         financial contracts and               framework and                     succession planning and                 performance and
            monitoring audit              sustainability governance                incentive plans and                establishing criteria for
              arrangements                                                          overseeing culture                new Board candidates

                                                                    CEO and
                                                                Managing Director

                                                                   Ansell People

The Board is supported by four standing committees as set out              Our risk management practices include:
above. The Board can also delegate specific duties to ad-hoc
                                                                           • A comprehensive risk control program that includes property
Committees of Directors as required, with the powers delegated
                                                                             protection and health, safety and environmental audits using
to these Committees outlined in Board resolutions.
                                                                             underwriters, self-audits, and engineering and professional
                                                                             advisers
The four Committees each operate according to their own
Charter. These were reviewed and updated where necessary                   • Processes to identify the business risks (both financial and
in FY21, except for the Governance Committee Charter which                   non-financial) applicable to each area of Ansell’s activities
was last updated on 20 June 2019. The Board Charter, and the                 and the maintenance of a specific framework that prioritises
charter of each of the four standing committees, is available                and monitors the mitigation of those risks; and
at www.ansell.com/about-us/sustainability/governance.                      • Regular reporting to the Audit & Compliance Committee or
                                                                             Sustainability & Risk Committee, as appropriate, and the Board.
Each Committee must consist of a majority of independent
Non-Executive Directors. Committees may involve independent                Ansell’s management are responsible for identifying and managing
professional advisers to assist with the discharge of their duties.        risks, implementing and signing off on risk management policies
Details of the qualifications, experience and meeting attendance           and systems, and reporting to the Audit & Compliance Committee
of each Committee member are set out in the 2021 Annual Report             and Sustainability & Risk Committee.
and 2021 Corporate Governance Statement.
                                                                           The Sustainability & Risk Committee is actively engaged in
Risk management                                                            monitoring (among other matters) these non-financial risks and
                                                                           ensures that they are given sufficient priority, alongside financial
Effective risk management is core to corporate governance                  risks. This is set out in the next sections of this report, with climate
and to ensuring that our business creates long-term shareholder            risk management on page 49. Further details of Ansell’s Risk
value. Ansell’s Risk Management framework enables us to identify,          Management Framework are available in our 2021 Corporate
evaluate, manage and report on risks, including non-financial              Governance Statement.
risks such as climate change. Ansell’s Risk Appetite Statement is
integral to the Risk Management Framework and defines (within
practical boundaries) the amount of risk that our organisation
is willing to accept in pursuing our strategic objectives.

                                                                                                                                        Ansell Limited
                                                                      17                                                   Sustainability Report 2021
Better Business

Governance and business ethics continued
Business ethics
Ansell aims to achieve the highest legal, moral and ethical                    All Ansell employees and Directors are required to undertake
standards in all our corporate activities. This goal and Ansell’s eight        compliance training programs to keep abreast of relevant legal
core values (see below) are integrated into our global employee                and industry developments and ethical practices every second
Code of Conduct, which acts as a guide to ethical behaviour and                year, and topic-specific compliance training on subjects such as
conduct for all employees, directors, executives and management.               fraud awareness every year. In FY21, Ansell provided global Code
It is our North star, and sets out our expectations on issues                  of Conduct training, competition law training, continuous
including corruption and bribery, conflicts of interest and social             disclosure training, trade secrets and fraud awareness training.
accountability. Each Ansell employee and Board member must                     Employees can seek compliance advice by contacting relevant
understand and adhere to the Code and strive to create a                       Ansell departments and can report concerns to our Compliance
workplace environment where safety, fair play, and ethical                     Hotline, which is independently managed. Individuals who report
business conduct are expected and encouraged behaviours.                       their concerns in good faith are protected from any form of
                                                                               retaliation by Ansell’s policies.

                                                             Trustworthiness                                         Agility
                   Integrity
                                                             We value acting with                           We value responsiveness
            We value doing what                                                                           to customers and each other,
                                                             respect, fairness and
            is right and ethical.                                                                            openness to change and
                                                                dependability.
                                                                                                                   flexibility.

                    Passion                                                                                        Creativity
               We value energy
                                                                                                            We value inventiveness,
               and excitement,
                                                                                                            innovation and new and
              commitment, drive
               and dedication.
                                                              Our Values                                    original ways of thinking.

                                                                                                                  Excellence
                Involvement                                      Teamwork
                                                                                                              We value a tenacious
           We value our team                              We value collaboration                                focus on results,
         members’ input, influence                       and a sense of partnership                            accountability and
             and initiative.                                    and sharing.                                   goal achievement.

Ansell Limited
Sustainability Report 2021                                                18
Better Business

Sustainability governance

Our perspective
Sound governance is core to achieving sustainability in business. Ansell’s executive-level Sustainability Council
is responsible for the development and execution of our sustainability strategy, with oversight by our Board
of Directors to ensure that our approach is cohesive and commensurate to the challenges that we face.
We believe that our approach to sustainability and its governance will become a differentiator for Ansell
in the market.

Sustainability governance structure
Ansell’s Board oversees our approach to sustainability and                The Board and both committees are provided with quarterly
climate change, with the Board’s Sustainability and Risk                  updates on Ansell’s sustainability performance. In FY21, key items
Committee (SRC) and the Audit & Compliance Committee (ACC)                considered at the SRC included safety performance, progress
assisting with governance, monitoring and providing advice to             on environmental impact reduction programs, such as renewable
the Board. The SRC and ACC work collaboratively to ensure                 energy and reverse osmosis projects (wastewater), and the rollout
linkage and alignment between climate-related mitigation                  of our Labour Standards Management System in key markets.
activities and Task Force on Climate-related Financial                    The SRC was also provided regular updates on progress against
Disclosure Recommendations (primarily the responsibility                  Ansell’s metrics and targets. Tools such as the environment,
of the SRC) along with any other finance-required disclosures             health and safety (EHS) dashboard and CSR Workplace Impact
(primarily the responsibility of the ACC). Refer to the 2021              Assessment Tracker guide internal reporting against our standards
Corporate Governance Statement for full details of the                    and sustainability goals. The ACC discussed updates on Ansell’s
execution of roles and responsibilities of the SRC & ACC.                 reporting against TCFD standards.

                                Ansell Board of Directors
                                Responsible for overseeing and reviewing the management, administration and governance of the
                                company. The Board oversees Ansell’s strategic direction, authorises initiatives and policies, and protects
                                stakeholder’s interests, setting goals for management and monitoring their progress, and engaging with
                                and evaluating the performance of the Chief Executive Officer.

Board oversight of
sustainability risks
and opportunities             Sustainability & Risk Committee                             Audit & Compliance Committee
                              Reviews the design and implementation of Ansell’s           Reviewing Ansell’s financial statements,
                              risk management system, including active business           including ensuring disclosures are in alignment
                              and material financial and non-financial risks. SRC         with the Task Force on Climate-related Financial
                              also reviews sustainability objectives, targets and         Disclosure Recommendations. As well as
                              strategies, and the effectiveness of Ansell’s               reviewing and monitoring Ansell’s internal
                              sustainability policies and programs                        controls and financial reporting systems.

  Management’s                Sustainability Council
 role in assessing
  and managing                The Council is responsible for the development of Ansell’s strategic approach to sustainability risks and
sustainability risks          opportunities. In FY21, we re-structured the Council to be a core group of ELT members, who are directly
and opportunities             responsible for the implementation of sustainability strategies across our Sustainability Workstreams.

                              Sustainability Workstreams

                                 Sustainability Communications         People                   Operations               Product
                                 & Training                                                     Footprint

                              Each workstream is sponsored by an ELT member to drive accountability.

                                                                                                                                      Ansell Limited
                                                                     19                                                  Sustainability Report 2021
Better Business

Sustainability governance continued
Sustainability is increasingly integrated into Ansell and sits              and operational implementation of Ansell’s strategic approach
across all functions, with senior level responsibility for driving          to sustainability-related risks and opportunities, and provides
progress. This year, we reviewed the function of our Sustainability         regular updates to the CEO and the broader Executive Leadership
Governance structure to represent how we execute our                        Team (ELT) as part of monthly ELT meetings.
sustainability strategy. We re-structured our executive-level
Sustainability Council (the ‘Council’) comprise a core group                We also formalised four workstreams, which represent the
of Executive Leadership Team members, who are directly                      major components of our sustainability focus, outlined in the
responsible for the implementation of sustainability strategies             table below.
& investments. The Council is responsible for the development

People                   Responsible for executing our People Sustainability Strategy and Supplier Management Framework. Key topics
                         include corporate social responsibility (CSR), compliance with our own policies and standards, reviewing
                         alignment with International Labour Organisation (ILO), labour competitiveness, driving our ‘learning
                         organisation’ culture, diversity and inclusion, and philanthropy.
Operations               Responsible for executing our our environment and people strategies. Key topics include health and safety,
footprint                our Net Zero strategy and our operational environmental projects such as solar photovoltaics (PV) and reverse
                         osmosis (RO). This workstream is also responsible for our corporate-level environmental projects, our CDP
                         (formerly the Carbon Disclosure Project) reporting and Task Force on Climate-related Financial Disclosure (TCFD)
                         Reporting, with an executive-level steering committee guiding progress against the TCFD’s recommendations, as
                         well as tracking against corporate metrics, zero waste to landfill program and verification program for the
                         Greenhouse Gas (GHG) inventory.
Product                  Responsible for delivering new product innovations and sustainability programs that enable us to reduce the
                         environmental impact of our products. Topics covered included product and materials innovation, sustainable
                         packaging, product end-of-life treatment and innovation partnerships/collaborations.
Sustainability           Responsible for developing the narrative, messaging hierarchy and strategy used to communicate our current
Communications           sustainability topics. The Sustainability Communications & Training workstream acts as the bridge between internal
and Training             and external communications teams (e.g. those responsible for investor relations, customer communication and
                         for our Sustainability Report) and for implementing sustainability training within our organisation.

Each workstream is sponsored by an Executive Leadership                     Managers of the operational team, will be responsible for
Team member and assigned a designated project lead to drive                 an internal set of performance objectives around absolute
accountability: Our Chief Human Resources Officer monitors                  reductions in greenhouse gas emissions, waste and water
labour rights performance and modern slavery risk management                (see Better Environment section for more detail).
at our plants; our Senior Vice President of Operations and Global
Supply Chain monitors climate-risk management and                           Governance of sustainability within Ansell is supported by
environmental performance at our operations and sustainability              a set of comprehensive policies which outline our expected
performance of our supply chains; Ansell’s sustainability narrative         management approach, including:
and communications are crafted by our Senior Vice President of              • 5-Point Safety Charter
Business Development, Transformation and Corporate Marketing;
                                                                            • Ansell Code of Conduct
our President of IGBU and President of HGBU monitors the overall
sustainability performance of our operations and supports                   • Anti-Bribery and Corruption Policy
environmental stewardship in product design; and and our Senior             • Communication of EHS and Risk Management Incidents
Vice President, Corporate General Counsel coordinates the                   • Conflict Minerals Policy
strategic management and prioritisation of the organisation’s
                                                                            • Corporate Social Responsibility Statement
activities and initiatives.
                                                                            • Diversity and Inclusion Policy and Strategy
Project leads are appointed under each workstream. They foster              • Environmental Policy
collaboration at mid-management level and are supported by                  • Global Health and Safety Standards
dedicated project teams that reflect the skills and resource
                                                                            • Human Rights Statement
requirements of each project. Cross-functional collaborations
between project teams have increased in frequency over recent               • Labour Standards Policy
years as we continue to integrate sustainability into business              • Quality Statement Policy
decisions. Furthermore, sustainability responsibilities are                 • Safety and Loss Control Policy
integrated into our senior personnel’s key performance
                                                                            • Supplier Code of Conduct
indicators. For example, our Senior Vice President of Operations
and Global Supply Chain, Vice Presidents and site-level General             • Whistleblower Policy

Ansell Limited
Sustainability Report 2021                                             20
Better Business

Our supply chain and business continuity

Our perspective
Our customers depend on Ansell to provide high quality goods, reliably and for a reasonable price, without
compromising on ethics. That requires us to have trusted relationships with our suppliers and to carefully
manage risks – commercial, social and environmental – in our supply chain.

Our approach
Ansell procures goods and services from thousands of direct
suppliers in over 40 countries. The map below displays some of
our top direct sourcing countries by expenditure and a selection
of key product categories sourced from each of these locations
in FY21.

                                      China
                                                                                                  South Korea
                                      Healthcare supplies
                                                                                                  Finished goods
                                      Textiles
                                                                         Sri Lanka                Textiles
                                      Synthetic latex
                                                                         Textiles                 Synthetic latex
                                      Packaging
                                                                         Support services         Equipment, machinery and spare parts
                                      Equipment, machinery
                                      and spare parts                    Forest products

                                      Support services                   Packaging                                          Thailand
                                                                                                     Japan
                                      Chemicals                          Equipment,                                         Forest products
                                                                         machinery                   Chemicals
                                      Services, logistics                and spare parts                                    Packaging
Netherlands                                                                                          Synthetic latex
                                      and shipping                                                                          Capex for plant expansion
Textiles                                                                 Services, logistics         Equipment,
                                                                         and shipping                machinery and          Utilities
                                                                                                     spare parts            Equipment, machinery
                                      India                                                                                 and spare parts
United States                                                              Pakistan                  Services, logistics
                                      Healthcare supplies                                            and shipping           Services, logistics
Textiles                                                                   Textiles
                                      Textiles                                                                              and shipping
Chemicals                             Services, logistics and shipping
Equipment, machinery                                                                                                   Vietnam
and spare parts           Malaysia                                                                                     Chemicals
Services, logistics       Healthcare supplies                        Singapore                                         Services, logistics
and shipping                                                                                                           and shipping
                          Equipment, machinery                       Synthetic latex
                          and spare parts                                                                              Packaging
                                                                     Packaging
                          Synthetic latex                                                                              Services, logistics
                                                                     Chemicals                                         and shipping
                          Packaging
                                                                     Finished goods
                          Forest products                                                      Indonesia
                                                                     Equipment, machinery
                          Chemicals                                  and spare parts           Healthcare supplies
                          Utilities                                  Services, logistics       Synthetic latex
                          Services, logistics                        and shipping              Chemicals
                          and shipping

                                                                                                                                          Ansell Limited
                                                                              21                                             Sustainability Report 2021
Better Business

Our supply chain and business continuity continued
The table below outlines a selection of some of the goods and               1. Supplier segmentation by concentration risk
categories procured in FY21 that comprise our largest categories
of expenditure.

Healthcare          Includes finished goods for resale, such as
                                                                                                              Multiple suppliers
supplies            single-use gloves and masks
                                                                                                              Single supplier, multiple facilities
Textiles            Such as cotton, nylon and polyester yarn,
                    knitted and dyed fabrics, elastic and zippers                                             Single supplier, single facility
Chemicals           A wide range of chemicals used in the
                    manufacturing of our products, including the
                    petro-chemicals including nitrile, polyisoprene
                    and neoprene
Forest products Predominantly raw materials such as woodchips
                and natural rubber latex
                                                                            2. Supplier segmentation by complexity v. spend
Packaging           Includes packaging material made of natural                        Complexity of product/service
materials           wood products such as pallets, boxes, and
                    paper, as well as plastic components such as
                    polybags and shrink film
Equipment,    Parts and machinery maintenance and                                                              Strategic
                                                                                  Bottleneck                   approach
machinery and replacement to support the running of our
spare parts   manufacturing operations
Support             Services to support the running of our
services            operations including pest, waste and security
                                                                                                                                   Spend on
                    services as well as cleaning and catering                                                                      product/service

Ansell’s procurement is conducted through three channels:
the Global Sourcing team; corporate hubs; and individual
                                                                                                           Leverage market:
manufacturing plants and offices. In FY21, we expanded the
                                                                                Transactional               focus on price
remit of our Global Sourcing team across plant expansion,                                                     and quality
logistics, warehousing sourcing and finished goods sourcing
in our Healthcare Global Business Unit (HGBU).

This consolidation was driven by a desire to leverage a hub
of strategic procurement skills and establish a standardised
                                                                            Our Global Sourcing team focused on rationalising our
approach that enables us to more effectively source and manage
                                                                            supplier base during FY21, tracking the security of our supplier
supplier relationships and product categories. This approach
                                                                            base for different product categories and maintaining supplier
also delivers lower expenditure and enables greater oversight
                                                                            relationships, price negotiation and contract management.
of suppliers’ compliance against our standards.
                                                                            In FY21, we also developed the capability of the Ansell team
This year, our global sourcing team worked with teams in our
                                                                            to respond to crises whilst maintaining business continuity by
manufacturing plants to map and consolidate their sourcing
                                                                            delivering crisis readiness training, which was delivered virtually
activities, as part of strategic restructuring and portfolio
                                                                            to our manufacturing and logistics sites in Thailand, Vietnam,
management of the supply chain. Alongside this work, we
                                                                            Kedah, Nitritex and Melaka. The training sessions concluded with
began to develop and implement a universal taxonomy system
                                                                            mock scenarios that test each team’s response to critical events
to classify expenditure by product and service categories,
                                                                            that could seriously impact Ansell’s reputation and its ability
enabling better analysis of our supplier base.
                                                                            to deliver to its customers.

We segment our supply chain according to concentration risk
                                                                            Kindly refer to our 2021 Annual Report for more details on
exposure; wherever possible we aim to have multiple suppliers
                                                                            our supply chain and operational outlook.
with multiple facilities for any product category. We also segment
by complexity versus spend, in order to tailor our relationships and
develop more strategic, long- term alliances where beneficial.

Ansell Limited
Sustainability Report 2021                                             22
You can also read