2015 rexam sustainability report final

SUSTAINABIL ITY REPORT 2015

TOGETHER WE CAN

Overview Products Operations People About this report

Rexam Sustainability Report 20152

WHO WE ARE

Rexam is a leading global beverage can maker. Our global headquarters are in the UK and we have factories across five continents.

WHAT WE DO

Rexam has the largest range of can sizes in the industry. We make cans in 25 different shapes and sizes, ranging from standard cans, through to slim and sleek versions, to large one litre cans. We also offer innovative aluminium bottles, called FUSION®, as well as Cap Can®, our resealable can. Combined with our attractive and eye-catching finishes, this allows our customers to maximise their brand impact as well as carefully targeting specific consumer segments and drinking occasions.

8,000

EuropeWe are the number one beverage can maker in Europe. Our European operations comprise 20 can and end making plants in Russia, Germany, Czech Republic, Austria, Sweden, Denmark, Spain, UK, Finland, France, Italy and Ireland. Headquarters are in Luton, UK.

North AmericaOur North American operations consist of 17 beverage can and end making plants in the US and Mexico, and joint ventures in Panama and Guatemala. We are the second largest can maker in the region. Headquarters are in Chicago, US.

Africa, Middle East and AsiaOur AMEA region focuses on faster-growing and emerging markets. The business has plants in Turkey, Egypt, India and Saudi Arabia, as well as an associate in South Korea. Headquarters are in Dubai, UAE.

South AmericaWe are the number one beverage can maker in South America and specifically Brazil, the largest market in the region. Our 12 plants are strategically located in Brazil, Argentina and Chile to capture growth and optimise asset utilisation. Headquarters are in Rio de Janeiro, Brazil.

Overview

OVERVIEW

THREE YEARS IN REVIEW

WHAT WE’RE PROUD OF

PROGRESS AGAINST COMMITMENTS

HOW WE CREATE SHARED VALUE

MATERIALITY AND STAKEHOLDER ENGAGEMENT

GOOD GOVERNANCE

8,000 average number of employees in 2014

64bn cans made by us in 2014

64 bn

WHERE WE ARE

Beverage can plantsJoint venture/associateHead office in London, UK

Read our annual report: www.rexam.com/ar14



OVERVIEW






GOOD GOVERNANCE

We work collaboratively with the right business partners to identify successful strategies and collectively create value.”

Our sustainability framework, established in 2010 around the key areas of products, operations and people, continues to provide the roadmap that defines how Rexam contributes and creates value across a wide range of stakeholder issues.

Since our last report three years ago, Rexam has transformed itself from a consumer packaging company serving multiple market segments to a business with a sole focus on beverage cans. Our job is to make those cans as efficiently, profitably and sustainably as possible so that our customers can attract and retain the loyalty of the people who consume their products.

Rexam set itself three-year sustainability goals in 2010 and I am pleased to report that we have achieved 16 out of the 20 and made good progress on the others despite challenging business conditions. In 2014 we undertook a materiality study to validate our framework and set ourselves updated measures and targets through to 2020. Notable additions are ambitious targets to reduce the carbon footprint of a can by 25% and to reduce water intensity by 10%.

Dow Jones Sustainability Index (DJSI)I am delighted to report that in 2015 we have retained our position in DJSI Europe. This external recognition is vital to show us, and our stakeholders, that we’re on the right track and recognises how far we have embedded

sustainability across the business. Our areas of strength identified by the DJSI continue to be in Governance, Risk and Crisis Management, Product Stewardship, Human Capital Development, Labour Practice Indicators and Human Rights. Our latest 2015 scores show improvement in 10 categories and confirm our industry leadership in Risk and Crisis Management, Human Capital Development and Labour Practices and Human Rights.

Working togetherA common thread to how we approach challenging sustainability issues is to work collaboratively with the right business partners to identify successful strategies and collectively create value. Three initiatives demonstrate this approach. On the innovation side we are working with Magna Parva to investigate disruptive technologies in metal forming that will drive can lightweighting and reduce energy consumption. We are also working with 13 major companies across the value chain in the Aluminium Stewardship Initiative to address issues relevant to the production and stewardship of aluminium, from the extraction of bauxite to the production of consumer goods and recycling. And we are collaborating with Carlsberg on the Carlsberg Circular Community initiative to rethink the design and production of packaging material in order to develop the next generation of packaging products.

The proposed Ball acquisitionEarlier this year the boards of Ball Corporation and Rexam announced that they had reached agreement on the terms of a recommended offer for Ball to buy Rexam. A combined business will create a truly global player in the packaging industry, well positioned to compete against other pack types and to deliver best in class service to our customers based on our shared culture of manufacturing excellence, innovation capability and sustainability. We expect this deal to close during the first half of 2016, and in the meantime we continue to operate on a ‘business as usual’ basis.

Looking ahead we believe the combination of Rexam and Ball will be able to make an even stronger contribution to creating a sustainable society, taking the best solutions and approaches from both companies and having the scale to make more transformative change a reality.

Thank you for taking the time to read this report. You will see many examples of our progress, aspirations and challenges in the following pages.

Graham Chipchase Chief Executive

Three years in review

Welcome to Rexam’s Sustainability Report. We are a leading global beverage can maker for many of the world’s favourite brands. As a global manufacturing business producing billions of cans per year we have a clear responsibility to ensure that sustainability sits at the heart of our business.

“



OVERVIEW






GOOD GOVERNANCE

What we’re proud of

APR Winston Salem plant, US, wins Air Quality Award from Forsyth County

MAY Águaas Claras, Brazil, awarded Shingo Prize Cuiabá, Brazil wins Quali-MT Award from SENAI

JUN Berlin, Germany, accredited to ISO 50001:2011 (Energy Management Systems)

AUG Chicago office, US, achieves LEED certification

SEP Valparaiso, US, achieves zero waste Santa Cruz, Brazil, wins Innovation Award from SESI Recife, Brazil, wins Health & Safety at Work and People Management Awards SESI

NOV Our North American sector wins industry award for Great American Can RoundUp

DEC Launch of Editions™, our variable printing technology

MAR Rexam joins the Aluminium Stewardship Initiative

APR Winston Salem, US, wins Air Quality Award from Forsyth County

MAY Launch of thermochromic ends and photochromic ink Manaus Ends, Brazil, awarded Silver Shingo Medallion Extrema, Brazil, awarded Silver Shingo Medallion Cuiabá, Brazil, awarded Bronze Shingo Medallion

JUL Cuiabá, Brazil, wins Quali-MT Award from SENAI and Quality Award from BEIS

SEP Inclusion in 2014 Dow Jones Sustainability Index (RobecoSAM)

OCT Customer online design portal launched

NOV Our North American sector wins industry award for Great American Can RoundUp

DEC Super Premium Editions™ launched

JAN Carlsberg and the Circular Community launched

FEB Magnaparva Packaging joint venture

MAY Jacareí, Brazil, awarded Silver Shingo Medallion Enzesfeld, Austria, awarded Silver Shingo Medallion Rio Headquarters, Brazil, awarded Bronze Shingo Medallion

JUL Chicago, US, wins Excellence in Recycling Award from IRA

SEP Awarded Bronze and Industry Mover in 2015 Dow Jones Sustainability Index (RobecoSAM) Updated sustainability framework launched

OCT Manaus, Brazil, wins Gold at Amazonas Quality Awards

NOV Our North American sector wins industry award for Great American Can RoundUp Santa Cruz, Brazil, wins Rio Quality Award from State of Rio de Janeiro

DEC 2014 safety record best in Rexam’s history

JAN Aluminium Stewardship Initiative Performance Standard launched

FEB Cradle to Cradle™ certification (EPEA)

MAY Guatemala awarded Shingo Prize

2012 2013 2014 2015

External accreditationIn the quest for continuous improvement, Rexam benchmarks its performance against the best in the world through regular third party reviews.

Our Blue Chip scheme is a global reward programme to recognise individuals who demonstrate our values and leadership practices. From 2012 to 2014 we awarded 770 Blue Chips to our employees across all sectors.

http://www.ftse.com/products/indices/FTSE4Good

http://www.ecovadis.com/

http://www.sustainability-indices.com/

http://www.robecosam.com/

https://www.msci.com/esg-indexes

https://www.cdp.net/en-US/Pages/HomePage.aspx

http://forumethibel.org/content/ethibel_sustainability_index_excellence_europe.html

http://www.shingoprize.org/



Safety 33% reduction in three-year rolling average Lost Time Accident Rate 23

Engagement Improvement in engagement score by sector 24

Conduct 100% successfully completed Code of Conduct training modules 8

Communities 50% increase in total of employee hours invested in agreed initiatives 25

Material Ongoing material reduction 18

Energy and carbon 7% reduction/can (normalised) 19

Water 10% reduction/can (normalised) 20

Waste 25% reduction/can (normalised) 21

Our material issues Our goals Progress See page

OVERVIEW






GOOD GOVERNANCE

Progress against commitments

Our established sustainability framework is comprised of 12 specific commitments and 15 measures and targets, and enables us to continuously improve performance in our three main areas of focus: products, operations and people. In 2014 we refreshed our targets and commitments, aligning them to our latest materiality assessment.

Recycling Achieve industry targets in Europe, US and Brazil. Measure in AMEA 11

Life cycle carbon 25% reduction/can (normalised) 12

Partnership7.5/10 customer satisfaction

100% policy mitigation

100% suppliers use CDP

13

14

15

Innovation Five projects progressing through stage gate per year 16

2020 sustainability goals

Products

12Commitments

15Measures

Operations People

Annual progress against the above measures can be accessed here: www.rexam.com/keymetrics

On track to achieve on time

Positive trend

Progress behind target

http://www.rexam.com/keymetrics

http://www.rexam.com/keymetrics



OVERVIEW






GOOD GOVERNANCE

How we create shared value

Our business is focused on creating sustainable value for all our stakeholders through the manufacture of beverage cans and ends.

bn64

SHOP

CAPITALOur business effectively uses the following inputs to make cans and can ends.

Natural Energy, virgin and recycled metal, inks and water.

Manufactured 55 can and end making plants.

Human8,000 employees, safe and healthy working conditions.

FinancialDisciplined capital allocation and intangible assets.

SocialStrong relationships with customers, suppliers and communities.

IntellectualPatents, standards, processes and trademarks.

VALUE CREATED & SHAREDIn 2014 we enhanced our capitals and invested these back into our business, creating value for all of our stakeholders.

Customers

Delivered 64bn cans while innovating products to meet changing needs.

Employees

Paid £500m in salaries and invested 22.5 training hours per employee.

Investors

Shared £583m in cash returns to shareholders.

Communities and the environment

Reduced carbon intensity by 1.84% and invested nearly £200,000 in community engagement activities.

Suppliers

Paid suppliers over £2.6bn and further developed our ethical supply chain.

Consumers

Supported the improvement of can recovery rates worldwide.

Supply chain

We work closely with our suppliers to develop more sustainable and innovative processes and products.


Continuously improve the efficiency and sustainability of our products and processes.

Uphold high governance and ethical standards across our value chain.

Effectively manage enterprise risks.

Balance growth and shareholder returns with investment back into the business.

Protect and develop our people.

Promote the drinks can as a viable and sustainable packaging option.

Manufacturing

We convert metal sheets into finished beverage cans and ends as sustainably as possible at the lowest delivered cost.

Customers

We develop long-term partnerships with our customers and invest and innovate to ensure our customers maximise their market opportunities.

Consumers

We provide the most convenient single serve beverage package that is safe and keeps contents secure for consumers.

Value re-invested



Business significance of economic, environmental and social impactsIn

fluen

ce o

n st

akeh

olde

r as

sess

men

ts a

nd d

ecis

ions

u Data security

u Generation Yu Environmental,

social and governance reporting

u Consumer attitudes to packaging

u Emerging markets

u Spills and environmental incidents

u Zero waste

u Code of Conduct

u Employee relations

u Health and safety

u Good governance

u Local communities

u Volatile organic compounds

u Employee wellness

p Customer consolidation

u Discrimination

u Talent management

p Consumer health issues

p Supply chain responsibility

p Circular economy

p Product quality

p Climate change

p Human rights

p Customer partnership and dialogue

p Pack choice

p Recycling

p Carbon in the pack

u Innovation

u Legislation — packaging waste

p Energy efficiency

p Materials use

p Water usage

u Legislation — materials

u Trend stable p Trend increasing

OVERVIEW






GOOD GOVERNANCE

We regularly engage with our customers, employees, investors, suppliers, trade associations, regulatory authorities, non-governmental organisations (NGOs) and local communities. Dialogue with stakeholders along our value chain, from material suppliers to recycling organisations, is an established part of how we operate.

We engage with our stakeholders using a variety of approaches such as surveys, face-to-face dialogue, collaborative projects and formal meetings, depending on what is most appropriate for that group.

These activities can take place annually or monthly, according to the needs of that particular group and our own requirements for maintaining a strong and open dialogue. For example, once a year we have our European Works Council forum, attended by plant representatives and senior leadership. Alongside this, our Chief Executive visits a number of plants in each sector every year and has now visited 32 plants since January 2012. Additionally, our Board holds a Board meeting at a different plant each year. Each Sector Director also visits every plant in their sector to engage with local stakeholders.

Our material issuesIn 2014 we commissioned a materiality study with around 50 stakeholders involving a broad base of internal employees, as well as customers, investors, suppliers, industry associations and NGOs. The study was conducted by Article 13, experts in this field. Their final report was then used as the basis of an internal workshop, facilitated by Article 13, which consolidated the themes and issues that stakeholders want to see us address in our business strategies and reporting.

We carefully noted how topics had evolved since our previous materiality study in 2010. Following discussion with our Executive Leadership Team, our sustainability framework was updated to reflect the content of this assessment, with specific commitments for the first time on life cycle carbon and water.

Materiality and stakeholder engagement

Engaging our stakeholders is embedded into our culture. By listening to their ideas and needs and understanding each other’s issues and expectations, we can work together to create shared value.

WHAT MATTERS – OUR MATERIALITY MATRIX

“

STAKEHOLDER PERSPECTIVE: INVESTOR RELATIONSWe communicate regularly with the investment community so they have a clear understanding of all aspects of our business. We engage through formal investor and shareholder meetings, as well as dialogue with individual investors and potential investors.

I am impressed with the strong contribution the sustainability initiatives have had on shareholder return and Rexam’s overriding objectives. We take great comfort from the open and candid discussions held with Rexam about the sustainability challenges they face, how they and reputational risk are being managed and how all of this can be turned into opportunities.”Abigail Herron, Head of Responsible Investment Engagement, Aviva Investors



In 2015 we again achieved the highest score for Risk and Crisis Management within the DJSI packaging sector

OVERVIEW






GOOD GOVERNANCE

Our policiesThe Board of Rexam believes that good governance is not just compliance with codes of practice. It is also a strong sense of value and a desire to do what is right for employees, shareholders and all other stakeholders. Integrity and trust continue to be more important than ever in today’s business world.

Responsibility for Rexam’s policies and procedures is ultimately that of the Board. The Audit and Risk Committee reviews reports on the Code of Conduct and Raise Your Concern, which encompass the management of corporate social responsibility and corporate citizenship. The Executive Leadership Team (ELT), which comprises our most senior operational and functional executives, has a mandate for sustainability together with responsibility for the regular review and update of Group policies. Our Director of Group Sustainability leads a dedicated sustainability team, which reports to a member of the ELT.

Code of ConductThe Code of Conduct, which applies to all Rexam employees worldwide, provides a clear statement for the benefit of stakeholders involved with, or affected by, Rexam’s activities. It captures the key governance and compliance messages that are relevant for all employees, whether working in the manufacturing plants or in office-based locations. These include anti-corruption, conflicts of interest and insider trading. Online training ensures employees are aware of their responsibilities and are in compliance with the Code of Conduct.

Raise Your ConcernOur whistle blowing policy is supported by an external confidential telephone helpline, available to all employees to raise any concerns or grievances, including those of a financial nature. Employees are encouraged to use the service when other internal reporting lines have not adequately dealt with their concerns, or if the matter is too serious or confidential to discuss with management.

Rexam has policies in place to embed sustainability in our operations and supply chain. The policies are published on our website and cover areas such as climate change, environmental health and safety, supply chain and suppliers’ Code of Conduct, risk management, anti-fraud and anti-bribery and other employee-related areas of importance.

Customer access to our ethical and responsible business practicesOur customers can access, review and audit our policies and performance across key areas of labour standards, health and safety, environmental impacts and business ethics using the Sedex database.

Risk managementIn the constantly changing environment in which we operate, effective management of risk is critical to the delivery of our business objectives. It also supports sustainable growth and the protection of our people, assets and reputation. We have a formal, well-established risk management framework, which covers financial, operational and reputational risks faced by our business. Significant risks include supply chain and business interruption, commodity and currency volatility, talent management and retention, cyber attack and data security, competition and substitution, and legislative changes.

Our framework enables us to systematically identify, evaluate and monitor risks alongside developing and tracking mitigation actions to manage risks on a continuous basis. The framework is embedded in our day-to-day operations. Sustainability issues identified and addressed using this framework are risks related to water, beverage can packaging regulations, human rights and climate change. For example, we maintain legislative risk registers for territories and jurisdictions where we operate and mitigation plans for these risks are monitored and measured.

Good governance

Good governance defines how we conduct ourselves as a business, our definition of success and our attitude to the assessment of appropriate risk and ethical matters.

100% of our Code of Conduct training modules are successfully completed

100%

http://www.rexam.com/index.asp?pageid=440


www.sedexglobal.com



Consumer packaging is an essential part of a modern society and consumers place a high priority on convenience and resource-efficient sustainable supply chains. As a leading global primary packaging company, we recognise our responsibility to be at the forefront of minimising the impact of our products on the environment and to work with policymakers to ensure packaging makes a positive contribution to sustainability.

Working togetherWe engage constructively upstream and downstream, working as partners with our suppliers to drive a global and strategic approach to building a sustainable supply chain. And we listen to and understand our customers’ priorities, engaging with them to help deliver their targets and build strong and lasting relationships. We take a similarly collaborative approach to recycling. Many countries we operate in have established recycling infrastructures. But for those that don’t, we are committed to providing long-term support to establish and enhance collection mechanisms and build a recycling culture among consumers. Our work with the Aluminium Stewardship Initiative illustrates our approach. Developed with NGOs and the industry, the performance standard fosters responsible environmental, social and governance principles throughout the

aluminium value chain. We plan to be among the first to bring certified products to market from 2018.

Ensuring our futureConsumers continue to demand more and more from the products they buy, and our innovation programmes contribute to our customers’ growth and our own. We are geared to provide a variety of innovation platforms to help customers create greater value across their beverage brands.

Part of this innovation focus also helps to ensure that we are well prepared to react and take advantage of any change in packaging legislation and regulation. We constantly contribute and monitor changes in laws and policies that may affect our business, working through an established and effective network of trade associations.

INTRODUCTION

A THRIVING CIRCULAR ECONOMY

RECYCLING

LIFE CYCLE CARBON

CUSTOMER PARTNERSHIPS

LEGISLATION AND REGULATION

RESPONSIBLE SUPPLY CHAIN

INNOVATION

Products

Cans are designed to be 100% recyclable

Cans create sustainable supply chains thanks to their light weight, fast and efficient filling, high cubic efficiency and recyclability

We shape our future through innovation and our pursuit of new beverage categories

More than 10,000 companies help form our responsible supply chain

We collaborate with our entire supply chain to help reduce life cycle carbon

Aluminium is part of a thriving circular economy, and beverage cans are infinitely recyclableCO2

We promote and actively support recycling systems for cans

http://aluminium-stewardship.org



A drinks can consumed today can be back on supermarket shelves within 60 days

Global recycling rates for cans are already around 70%, making them the most recycled beverage package. This has created a 2.5 million tonne market for used beverage cans worth around £2.5 billion. Rexam is committed to increasing the recycling rate further in order to help close the material loop.

Aluminium does not degrade during the recycling process, and so after recycling it can be transformed back into packaging and many other product applications such as automotive, aerospace, construction etc. Once these product applications reach the end of their useful life, the aluminium they are made of remains as a permanently available material resource to be used again.

A thriving demand for recyclate…The market for recyclate is higher than the availability of material. Market conditions and efficient supply routes dictate the most efficient route for recyclate to be reintroduced back into product applications, and there is a thriving demand for used beverage cans from many other industries, mainly from both the car and the building industries. Achieving a nominated recycled content for one specific application inhibits environmental and economic benefits that should be the objective of a fully functioning circular economy.

…but it’s not the right measurementFor this reason, recycled content is a misleading environmental indicator. We do not believe that a relatively high recycled metal content of a specific product is an indicator of good environmental performance or vice versa.

However, we do appreciate that our customers are requesting greater clarity around the recycled content of the cans we deliver to them and we are working with them closely on this.

The only way to improve the environmental performance of metals is to further enhance collection and recovery at the end of the life of a given product containing metal. This focus ensures that society minimises its use of virgin metal and maximises the amount of recycled material available for use.

A thriving circular economy

Beverage cans are designed to circulate endlessly. They are infinitely recyclable with no loss of quality and have the highest recycling rate of any beverage pack.

INTRODUCTION


RECYCLING

LIFE CYCLE CARBON




INNOVATION

60DAYS

It has been a pleasure to cooperate with Rexam to obtain the certification. I am sure that we will be able to uncover many opportunities to partner on sustainability in the future, for the benefit of Rexam, Carlsberg and our consumers.” Simon Boas Hoffmeyer, CSR Director at Carlsberg Group

“

OUR WORK WITH CARLSBERGThrough our partnership with Carlsberg (in the Carlsberg Circular Community), Rexam has gained Cradle to Cradle™ certification for our Carlsberg and Somersby cans in the UK. This is the first time a beverage pack has been accredited with the Cradle to Cradle™ certification, which underlines the aluminium beverage can’s strong sustainability profile. Cradle to Cradle™ presents a positive agenda based on optimising products to truly support the natural and human world. This concept is creating an exciting innovation agenda to transform our environmental footprint into a source of replenishment for those systems that depend on it.

http://www.carlsberggroup.com/investor/news/Pages/Carlsbergjoinsforceswithsupplierstoeliminatewastebydevelopingnextgenerationofpackagingforhigh-quality%E2%80%98upcycling%E2%80%99.aspx

http://www.c2ccertified.org/

http://www.c2ccertified.org/



2.5 MILLION

We are committed to actively promoting and supporting recycling systems for cans. Recycling directly avoids the production of an equivalent amount of virgin material and prevents littering.

Recycling rates for beverage cans in most markets are typically high, helping to maintain the sustainability credentials of the can. Many countries in which we operate have well-established recycling infrastructures that function efficiently. In those markets that require long-term support to establish and enhance collection mechanisms and build a recycling culture with consumers, we are committed to providing such support.

What we’re doing to helpThe Every Can Counts (ECC) programme, which Rexam funds and helps manage, has continued to expand in Europe and now operates in eight countries, Spain being the most recent. ECC encourages the recycling of beverage cans used outside the home. For example, last year in the UK, Europe’s largest can market, ECC provided new bright green can-shaped bins at Bournemouth’s seven-mile beach to encourage its 4.5 million yearly visitors to recycle their drinks cans. And in France, ECC is celebrating its sixth successful year of working with the organisers of the 24-Hour Le Mans.

Also in Europe, our own Community Can Challenge has been running successfully since 2011, with 16 plants invited to participate in 2014. It promotes recycling and can collection within each plant’s local community. Over the 10 weeks the scheme ran in 2014, employees collected more than 200,000 cans – equating to over 30 metric tonnes of CO2 – and also raised more than £15,000 for the plants’ chosen charities.

Our North American beverage can operations’ longstanding involvement in the annual America Recycles Day programme includes a four-month recycling contest. In 2014 our plants collected a total of 1,836 metric tonnes of aluminium cans; this great result saw Rexam win first place for the eighth year in a row.

In Brazil, the recycling rate for cans is the highest in the world at 98% thanks to the excellent work done by community groups who organise themselves to collect, sort and trade waste materials. These activities provide a personal income opportunity for large numbers of disadvantaged people and the community uses the trading income to continually improve working conditions for these waste pickers. In other developing countries the informal waste sector is typically not so well organised and reliable information on recycling is not available. However, the inherent demand and value of aluminium means that in most developing countries it is estimated that the recycling rate for cans is more than 90%.

New metal packaging recycling mark Research carried out by Metal Packaging Europe across the UK, France and Spain showed that both ‘keen recyclers’ and ‘reluctant recyclers’ agreed that the message ‘metal recycles forever’, together with the symbol of a forever loop, prompted a positive re-evaluation of their recycling habits. Rexam has started sharing this research with our customers and we anticipate that this mark will become one way for brands to support improving consumer recycling habits. In August 2015, our customer Concrete Cow, an independent micro brewer in the UK, became the first commercial user of the logo.

Recycling

As a leading global packaging company, we recognise our responsibility to be at the forefront of minimising the impact of our products on the environment.

INTRODUCTION


RECYCLING

LIFE CYCLE CARBON




INNOVATION

2.5 million metric tonnes of cans are recycled every year

Global recycling rates for beverage cans are around 70%

For us, the can has to capture the personality and soul of our brand. By displaying the Metal Recycles Forever logo, we emphasise the role our consumers can play through recycling.”Dan Bonner, owner of Concrete Cow Brewery

“

67% US 73% Europe 98% Brazil 75% Turkey

Recycling rates as of 2012/2013. Sources. Associação Brasileira dos Fabricantes de Latas de Alta Reciclabilidade, Association of European Producers of Steel for Packaging, Beverage Can Makers Europe, Can Manufacturers Institute and European Aluminium Association.

http://www.everycancounts.co.uk

http://www.americarecyclesday.org

http://www.metalpackagingeurope.org/recyclesmark

www.metalpackagingeurope.org/recyclesmark



These studies consistently show that while the environmental impacts from our operations are important, those of our upstream and downstream supply chain remain significantly larger. Our manufacturing makes up only around 20% of the energy needed to produce a can. Most energy consumption occurs during metal production, with end-of-life recycling creating carbon credits which offset that initial intensive energy use (see below). The implications of this are profound – we need to work collaboratively with many partners, including our suppliers, customers and national recycling systems to drive significant improvements.

Several of our key customers have set themselves ambitious targets to reduce carbon in their products and they rely on us to play our part in achieving those targets. One of our sustainability commitments is therefore to reduce the carbon in our cans by 25% by 2020 against our 2010 baseline.

Our European sustainability team has developed a mechanism to measure scope 3 carbon emissions compliant with the GHG Protocol Product Life Cycle Accounting and Reporting Standard, and we are looking to roll this out across the whole business in 2015. The work to date has enabled us to demonstrate a 12% reduction in CO2 in Europe since 2010, as well as to develop a clear roadmap of how we can meet our 2020 target.

The roadmap to reducing life cycle carbonWe’re focusing on areas in our direct control, while engaging and collaborating with other parties in both our upstream and downstream supply chains:

• Reducing energy use in our plants – the area we have most control over, and an area where we have reduced carbon intensity by 1.84% across the Group.

• Lightweighting – we have reduced can weight by 22% over the past 22 years, but we know there is still potential for further reduction. We can achieve this by working with customers to ensure that the lighter weight cans are fit for purpose and do not result in product damage.

• Working with partners to increase consumer recycling rates.

• Reducing the energy embedded in primary metals. Metal smelting, casting and rolling require substantial amounts of energy and we are delighted that many of our suppliers have joined the Aluminium Stewardship Initiative. This commits them to publicly disclosing their material GHG emissions, as well as publishing time-bound emissions reduction targets and implementing plans to achieve these targets.

Life cycle carbon

Rexam has been conducting independent life cycle assessment studies since the early 1990s. This has helped to provide reliable and robust information to assist discussions on the environmental performance of beverage cans.

INTRODUCTION


RECYCLING

LIFE CYCLE CARBON




INNOVATION

About 20% of the energy used to produce a can is from manufacturing

Efficiency improvements in can production in the US has led to a 20% smaller carbon footprint in 2015 versus 2010

20%

Simplified life cycle of a typical 33cl aluminium can (assuming the consumer recycles the can). Source. BCME LCIA 2009

Metal production Can body and end manufacturing

End-of-life recycling credit

Net carbon footprint of a can

135g 30g 40g+ – =

MAIN CARBON IMPACTS: THE CAN LIFE CYCLE

125g

(gCO2e)

http://www.aluminium-stewardship.org

http://www.aluminium-stewardship.org



Our customers are growing; they have ambitious targets and are focused on supply chain savings to help deliver this growth. There is also significant pressure in some of our customers’ core markets from consumer, regulatory and other trends, and this is driving increasing demand for innovation and differentiation.

Their policies and performance in areas such as consumer health, carbon and water usage and community impact are also under increasing scrutiny, and are actively monitored by many external parties. To address these key societal concerns, our customers have set themselves ambitious sustainability targets. As a core supplier, Rexam plays a critical part in helping them deliver these commitments.

Strong and lasting relationships are fundamental to successful customer partnerships. Not simply by providing the best quality and customer service at the right cost, but also by working with customers strategically and proactively. Our customers look to us to align our sustainability agenda with theirs and increasingly we conduct joint initiatives, such as the Carlsberg Circular Community. Our sustainability objectives and metrics are explicitly developed to support our customers.

The can is one of the most sustainable pack choices, and as such we work to introduce it into new beverage categories. Our sales and marketing teams actively identify categories with low beverage can share and communicate with companies in these sectors on the advantages of the can from a sustainability perspective. We have had

success in recent years in the craft beer segment and in some of the growing sparkling water, flavoured water and health drink segments.

Customer surveyWe measure our customer performance through annual customer satisfaction surveys. An integral part of the survey is our performance on sustainability. From the annual scores and comments we form action plans for the following year to address areas of weakness and to build on our strengths. We actively communicate with our customers on these issues through our sustainability teams and our sales and marketing organisation.

RED BULLOur partnership with Red Bull is a strong example of how both sides can work together to minimise our environmental impacts. Being a long-term partner means we have been able to create tailored sustainable supply chain solutions. Red Bull cans are substantially lighter than they were back in 1987 when we began supplying cans, without compromising on quality or functionality. We are shortly to start up our second wall-to-wall facility with Red Bull, which means fewer trucks on the road to transport empty cans. We collaborate too on recycling initiatives like Every Can Counts, particularly at Red Bull sponsored events.

Customer partnerships

In today’s business climate, our customers are not simply looking at supply chain savings; they also want a partner who can offer a framework for collaboration to build strong and mutually beneficial relationships.

INTRODUCTION


RECYCLING

LIFE CYCLE CARBON




INNOVATION

We look forward to our continued relationship with Rexam not just as a business partner but also as a sustainability partner.” Werner Depauly, Head of Global Purchasing, Red Bull

CUSTOMER SATISFACTION SCORE

2014

(out of 10)

2012 2013

“

7.10 8.15

7.98

Our customers look to us to align our sustainability agenda with theirs and increasingly we conduct joint initiatives.







We actively contribute to major policy discussions in Europe, in the US and in Brazil. We continually monitor developments in laws and regulations in the jurisdictions that may affect our business. We do this through established and effective membership of relevant trade associations, by direct collaboration with governmental and non-governmental organisations, and through our own efforts, which include a legislative risk monitoring tool. This ensures the best possible chance of shaping a constructive outcome which is not detrimental to Rexam or its stakeholders.

We also focus on investment in new innovation and technology programmes to ensure continuous enhancements in our packaging products and manufacturing processes. For example, we are working proactively with our suppliers and customers to evaluate next generation lining materials for our cans. Alternative materials are in various stages of development. However, challenges remain with respect to: matching the current functional performance capabilities of epoxy-based can coatings, regulatory approvals and supply capacity issues.

Food contact materialsWe align with our customers and the industry in our approach to food contact legislation. We believe that the Food and Drug Administration (FDA) in the US, the European Food Safety Authority (EFSA) and other similar regulatory bodies should have jurisdiction as to what is deemed safe for consumers. This includes the use of epoxy-based materials (containing Bisphenol A), which the above authorities have consistently confirmed poses no health risk to consumers. We do not believe customers, municipalities and states within these regions should attempt to go outside these regulatory authorities to propose their own restrictive policies or legislation.

Managing legislative and regulatory risksBuilding effective risk management around awareness of current and future legislative and regulatory threats is one of the measures on our balanced scorecard. Every three months we carry out a review across all business units using structured quantitative assessments so we are able to plot all risks on an `impact’ and `likelihood’ matrix. This enables us to create a mitigation plan in response to the identified risk and to discuss and review appropriate resources to all identified risks.

SUPPORTING OUR CUSTOMERSIn addition to legislation affecting our own product, we also review and intervene in legislation proposals that adversely affects our customers’ products. In 2013 a soda tax was proposed in Chicago as a means to curb obesity. By aligning with our industry through the American Beverage Association (ABA) and an associated coalition called ‘We Deliver’ in Chicago, we supported our customers’ move to increase the use of nutrition information labels and provide a wider range of beverage choices to consumers. We also met with legislators to discuss the potential adverse effects of increased taxation on these products, including the effects on employment and associated income taxes. As yet, no soda taxes have been passed in Chicago, and there has been only one city in the US that has approved and implemented a soda tax.

Legislation and regulation

Packaging is, and will continue to be, a focus for government legislators, and we are subject to the laws and regulations of the countries in which we operate.

INTRODUCTION


RECYCLING

LIFE CYCLE CARBON




INNOVATION

TAX

100% of identified risks with regard to legislative, regulatory and environmental issues have mitigation activities in place.

http://www.ameribev.org



As key stakeholders in our supply chain, we value the contribution our suppliers make. These partnerships are reflected in the collaborative approach we take in our supplier relationship management model, driving Rexam towards a globally responsible and strategic approach in building a sustainable supply chain. To achieve this, both Rexam and our suppliers must strive for continuous improvement in all aspects of our relationship, especially in cost, quality, delivery, innovation and sustainability.

Raising the barWe place great value on the relationships we build with our suppliers; we expect suppliers to demonstrate continuous improvement and strive towards business excellence in a sustainable manner. We recognise and reward our strategic supply partners annually through our Supplier Excellence Programme, and for suppliers who are underachieving we work with them to develop a continuous improvement plan which is tracked through our Supplier Relationship Portal.

Environmental, social and governance (ESG) factors play an important role in determining which suppliers to work with. For example, we require our suppliers to comply with Rexam’s Supplier Code of Conduct, which covers employment practices, human rights, environment, health and safety, anti-trust, anti-bribery and anti-corruption. New contracts also include these ESG clauses.

To understand and mitigate supply chain risks no matter where they occur in the world, we have established a global procurement function located in our London

headquarters, supported by procurement teams in each region. Rexam procurement is constantly challenging our suppliers and supporting them in their endeavours to reduce water usage and utilities, in downgauging and lightweighting activities, to reduce chemical levels in products, comply with directives, improve their impact on the environment and reduce their carbon footprint.

Carbon Disclosure Project (CDP)We are very proud to be leading the beverage can industry as a member of the CDP Supply Chain Programme, an internationally recognised reference organisation dedicated to reducing the industry’s carbon impact on the environment. In 2014, 88% of our top suppliers completed the CDP questionnaire, and we have set ourselves the challenging target of achieving 100% disclosure by 2016. We specifically focus on our key categories of metals and other direct materials (eg coatings), energy and other indirect consumables.

Dow Jones Sustainability Index (DJSI)We benchmark our supply chain performance using the DJSI as an external point of reference. We are very proud to show year-on-year improvement in our DJSI performance ranking for Supply Chain Management.Since our last Sustainability Report in 2011/2012 our score has improved by more than 50 percentage points, demonstrating the team effort of all our employees, as well as our commitment to continuous improvement in this crucial area.

Responsible supply chain

INTRODUCTION


RECYCLING

LIFE CYCLE CARBON




INNOVATIONAround the globe, more than 10,000 companies supply goods and services to Rexam. The top 100 suppliers represent roughly 85% of the money we spend, primarily in metals and other direct materials, energy and logistics suppliers.

88% of our top suppliers are responding to the Carbon Disclosure Project, up from 50% in 2011

RECYCLING CARBIDE WITH SANDVIKCarbide is a non-renewable resource and as such supply is limited. In fact, over 50% of all known tungsten carbide deposits have been mined, making it one of the rarest metals on the planet.

Working collaboratively with Sandvik, 10 of our European plants now return old and obsolete carbide tooling to Sandvik for recycling into new tooling. This recycling programme gives us the opportunity to keep the carbide in a closed loop system, which shelters us from supply issues and volatile commodity pricing. And making tools from recycled solid carbide requires 70% less energy than making them from virgin raw material.

We also run this programme on a smaller scale in our plants in the US and South America.

All of our suppliers are required to comply with our Supplier Code of Conduct

100%

88

http://www.cdp.net

http://www.cdp.net

http://www.sustainability-indices.com

http://www.sandvik.coromant.com/en-us/services/sustainability/pages/recycling.aspx



Our approach to global innovation is based on our customers’ priorities for differentiation, productivity, market access and license to operate. It consists of three programmes: Pack of the Future, Core Process and Plant of the Future.

Our Pack of the Future programme encompasses both incremental and transformational technologies to create differentiation for our customers and explore new consumer occasions or markets for the can to occupy. In 2012 we launched our patent pending and award winning range of EditionsTM technologies, which allow us to produce eight to 24 designs of the same label simultaneously on a single pallet.

Our Core Process and Plant of the Future programmes focus on process innovation, where we evolve and

disrupt the way we manufacture our products. We pursue innovation in areas including emissions, water usage and spoilage to mitigate the risk these pose to the growth and long-term success of our business. By building on our embedded lean manufacturing and six sigma practices with new technologies, we deliver step change improvements in our manufacturing process and costs to address our customers’ need for increased productivity.

We have invested in a technology pipeline in order to deliver on these programmes over the short, medium and long term. Collaboration programmes are in place with our customers and with our suppliers, so that we select the best new technologies for the future.

We lead innovation through a global Innovation Council, set up in 2011, with sponsorship from an Innovation

Board which is chaired by our Chief Executive. All new technology is developed with sustainability in mind and we run a plant technology transfer process to ensure new technology is introduced effectively across the business.

New beverage categoriesWe continue to look to new consumption occasions for our beverage cans and bottles, and this includes use in categories outside of our core areas of carbonated soft drinks and beer such as juices, ready-to-drink tea and flavoured alcoholic beverages.

Innovation

We shape our future through the innovation of our products and processes and by promoting the can as a viable packaging choice for new beverage categories.

INTRODUCTION


RECYCLING

LIFE CYCLE CARBON




INNOVATION

Mar

ket t

rend

s an

d dr

iver

s

IP s

trat

egy

Our

cus

tom

ers

License to operate

Pack of the Future

Differentiation

Market access

Core Process

Plant of the Future

Tech

nolo

gy p

artn

ersh

ips

Productivity

12 projects progressing through our stage gate process in 2014 versus our target of at least 5

12

£5m spent on R&D in 2014

£5m

FOURPURE CRAFT BEERWhen Fourpure Brewing Co, an independent British craft brewer, decided to switch from glass bottles to aluminium cans, we worked with them to develop unique designs for their craft beer range. In production in the UK since August 2014, the 33cl cans are finished with a matt over varnish and depict the skyline of each city from which the characteristics of the beer are inspired.

“With craft beer on the rise in an overall declining British beer market, it was essential to produce an interesting and unique design in order to differentiate our products from the macro breweries. The bespoke designs and special finishes offered by Rexam are perfect for the evolution of the Fourpure brand to cans.”

Daniel Lowe, Co-founder of Fourpure

OUR APPROACH TO INNOVATION






Water is key to us and our customers

Operations

100% of our process scrap metal is recycled

We engage with industry and technology providers to target waste to landfill

We make more cans with less metal

No uncontrolled or abnormal releases

Our lightest 33cl can and end weighs just 12.25g – 22% lighter than 22 years ago

Our manufacturing capabilities are where we create the vast majority of our value and where we aim to generate sustainable competitive advantage.

All of our plants have annual energy efficiency goals

Rexam recognises the importance of continuous improvement in our operational efficiency. We have a specific set of commitments and measures that target resource efficiency through operational excellence in the areas of materials use, water use, waste to landfill and energy use.

Lean manufacturingEfficient and sustainable manufacturing is critical to our economic and environmental performance, and so improving our manufacturing has a significant impact on our business. We continue to embed the principles of lean enterprise and six sigma and increase the engagement of our people to achieve continuous improvement.

Part of these principles involves reducing the amount of waste produced, and our long-term target is to send no waste to landfill. We have already made significant headway to achieving this ambitious target, with 11 of our plants sending no waste to landfill in 2014. We are confident that with our dedication to continuous improvement the rest of our plant network can also achieve this.

Reducing material and resourcesThe consistent reduction in materials, water and energy use is a direct outcome of the continuous improvement that drives our manufacturing ethos. Lightweighting has always been a crucial part of this and we continue to roll out lightweighting initiatives to reduce the amount of aluminium needed to produce each can and end.

But material reduction is not only an efficiency gain, it also reduces transport demands and brings fuel and logistics cost savings across the supply chain. Reducing the use of raw materials also enables us to reduce our own consumption of energy and water, thus lowering our carbon and environmental footprint.

We target a 25% reduction in our waste to landfill by 2020 versus 2013

INTRODUCTION

MATERIALS USE

ENERGY EFFICIENCY

WATER USE

WASTE TO LANDFILL



Our manufacturing capabilities are where we create the vast majority of our value and where we aim to generate sustainable competitive advantage. We continue to improve material efficiency and reduce energy consumption through the consistent application of lean enterprise and six sigma methodologies.

Our lean manufacturing approach saw good results from the many value stream activities implemented in 2014, not least the delivery of a further £20 million of efficiency savings to maintain our solid record in this area.

Our lean enterprise team works closely with the businesses to identify and implement projects that demonstrate continuous improvement. By creating a common approach and facilitating cross-sector networking, we can accelerate learning, secure further synergies and share, develop and adopt best practices.

An example of this is our Excellence in Performance (EiP) initiative designed to help us gain knowledge, support teamwork and share expertise and information across our company. Developed in collaboration with plants across all of our sectors, the initiative promotes sharing good practice across vital processes.

Minimising lossesIn 2013 we started a programme called Zero Loss in several Rexam production facilities to eliminate defects and machine stoppages by using world class total productive maintenance (TPM) techniques that rely on employee and

leadership collaboration for success. By eliminating losses we are making our production processes inherently safer by removing the need for physical interventions.

The launch of Zero Loss in 2013 focused on two plants – Milton Keynes in the UK and Extrema in Brazil. Both plants have seen a significant improvement in pilot line performance and a positive change in employee engagement, with increased ownership of the process and workplace. The success of these pilots has led to demand for wider implementation, and all sectors are currently defining the shape of their own Zero Loss programmes.

Following the success of the two pilots, we have rolled out the Zero Loss programme to an expanded network of plants. In March 2015, our Vsevolozhsk plant in Russia began the journey and Longview in Texas will become the pilot plant for North America.

External recognitionOur world class standards of operations have been recognised by The Shingo Institute – a global reviewer of operational excellence (see table). Only a handful of sites from all walks of industry meet the Institute’s strict criteria each year; the fact that we now have eight accredited plants (unmatched by any other company in the world) demonstrates the extent of our achievements. With two plants in North America well advanced in the accreditation process, we are confident of adding more to this roster as we continue our pursuit of excellence.

Shingo Institute

LightweightingThrough the constant application of lean principles we reduced the amount of aluminium we used in 2014 by 3,300 metric tonnes and continue to drive global lightweighting of our pack. We invest in R&D to design and manufacture the next generation of beverage cans and ends at significantly lower weight.

Our commitment to pursue such transformational innovation was exemplified in 2014 by us taking an equity stake in an advanced engineering company, Magnaparva Packaging, to investigate new metal forming technologies to drive can lightweighting and reduce energy consumption.

Materials use

We focus on operational excellence using six sigma and lean principles across our operations and processes to reduce cost and material usage.

Winning the Shingo Prize is a great achievement for the Guatemala plant team. A huge amount of work goes into this process and it’s great to see it being rewarded with the top honour. Congratulations to all involved.” Jon Alder, Director of Group Lean Enterprise

“

We saved 3,300 metric tonnes of aluminium from lightweighting in 2014

We are the most successful Shingo recipient ever

3,300 TONNES

2015 Guatemala (JV) Shingo Prize

2014 Jacareí, Brazil Silver Shingo Medallion

Enzesfeld, Austria Silver Shingo Medallion

Rio Headquarters Bronze Shingo Medallion

2013 Manaus Ends, Brazil Silver Shingo Medallion

Extrema, Brazil Silver Shingo Medallion

Cuiabá, Brazil Bronze Shingo Medallion

2012 Águaas Claras, Brazil Shingo Prize

2011 Recife, Brazil Silver Shingo Medallion

INTRODUCTION

MATERIALS USE

ENERGY EFFICIENCY

WATER USE

WASTE TO LANDFILL

http://www.shingo.org

http://www.mp-packaging.co.uk

http://www.mp-packaging.co.uk

www.shingo.org



We have been measuring and reporting our greenhouse gas emissions (scope 1 and 2) since 2010 as part of the Carbon Disclosure Project. And from 2014 this reporting has been third-party assured.

Investing to saveOver the three years since our last report we have invested £44 million in energy saving projects. This investment has resulted in good financial savings, made our business more resilient and has created over 5,000 metric tonnes of CO2e savings. We have also looked at various renewable energy projects but concluded that focusing our efforts on reducing energy demand achieves greater financial and environmental return on investment. Over the three year period covered by this report we have implemented more than 3,000 individual energy saving projects, including compressor heat recovery, new heat pumps, heat recuperation from washer ovens, washer stops improvements, variable frequency drives and LED lighting.

Knowledge is powerIn addition, every Rexam plant commits to annual energy efficiency goals supported by detailed action plans. Energy information systems enable us to better understand, manage and report on the performance of energy consuming processes. They also allow us to better benchmark these processes so we can identify and exchange best practices. This ongoing work is vital, as market requirements for more can sizes and shorter runs between label changes offset progress towards our energy efficiency goals.

Periodically, more substantial changes to our manufacturing footprint provide important opportunities for energy efficiency improvement. Investment in our two Spanish plants to convert them to produce aluminium cans has allowed engineers to install new energy efficient equipment and to re-engineer the lines to run faster. We also optimise our manufacturing network to best meet customer demand and achieve efficiency gains. We have done this through investment in new production lines in India, Chile and Austria and new plants in Finland and Brazil during the past three years. Our restructuring plans in Europe (announced in March 2015) are also an essential contributor to this optimisation.

Energy efficiency

Sustainable development forms the core of the strategic partnership between SABMiller and Rexam. This has been seen through the sharing of breakthrough achievements in packaging lightweighting and transparent carbon disclosure reporting.” Dr Katharina Stenholm, CEO, SABMiller Procurement

Rexam uses gas and electricity as energy sources in the manufacturing process to produce can bodies and can ends. We are committed to reducing the energy (and therefore carbon) intensity of our cans.

8% reduction in energy use per can since 2011

We have invested £44m in the past 3 years on energy saving projects

8%

£44m

BRAZIL RESPONDS TO ENERGY CHALLENGE Brazil is the second largest producer of hydroelectric power in the world, and the country depends on hydroelectricity for more than 75% of its electric power supply. However, in 2014 a lack of rainfall led to low water levels in reservoirs and energy prices correspondingly tripled.

Immediately the team in South America put together a task force to address this new challenge. Following thorough assessments by the engineering and electrical teams, US$2 million was invested in over 1,000 energy saving measures in plants across Brazil, with the aim of reducing energy use by 10%.

The actions focused on the use of air pressure equipment, speed control of pumps and centrifugal blowers, use of vacuums (pressure and flow), lighting and ventilation, as well as technological improvements to air generation.

The result was a 9.3% reduction in energy consumption, compared to the first half of 2014.

“

ENERGY INTENSITY

35.3

33.6

2014 Target 2020

36.6

38.4

36.1

20122011 2013

INTRODUCTION

MATERIALS USE

ENERGY EFFICIENCY

WATER USE

WASTE TO LANDFILL

MWh/normalised ‘000 cans

http://www.cdp.net




On average, we use about 8cl of water in our plants to produce a 33cl can. Around 85% of this water is returned to the municipal supply/river, passing through a lime-remover process where chemicals are filtered out and the water is cleaned to the quality standards required by legislation. The remaining 15% is lost in evaporation. We’re already looking at ways to minimise our own usage and we also work with our customers and suppliers on ways to measure and reduce the total embedded water footprint of a can.

Across our 55 plants we use around six million cubic metres of water per year and we’ve committed to reducing our water consumption by 10% in all our existing plants by 2020 against a 2013 baseline. We focus our efforts in areas of water stress, where droughts or floods typically occur. Areas that have severe water stress indices are more likely to experience water degradation over the coming years.

Plants are already improving their awareness of local water issues and we’re working through lean initiatives, process improvements and technology innovation projects to reduce water consumption.

This year will also be our third year to submit a Carbon Disclosure Project (CDP) water questionnaire which contains our strategy towards water use, and the issues and opportunities for our business and our water data. This submission has helped demonstrate to customers that we share their concern around water issues and is enabling us to deliver a clearer path towards better water stewardship.

Embedding water awarenessThe Rexam Academy is a leadership training programme that helps our future leaders realise their potential. As part of the programme, each year participants complete a leadership challenge. This year the challenge is to create awareness, knowledge, engagement and action among young people on the issue of water scarcity. Participants delivered a workshop on water scarcity to school students and are working alongside and coaching them to develop lesson plans on the issue of water scarcity.

Water use

Water is key to Rexam. Although our direct water use is modest, water and access to it is an important issue to our customers.

Our global technology washer team is comprised of Rexam’s best washer experts, hand-picked to represent their sectors. Some great collaborative work is ongoing by the team, with the aim of helping to deliver our water reduction target through innovation.

We use 8cl of water to produce a 33cl can

Water use in our AMEA region reduced by more than 20% in 2014

WATER INTENSITY

TOTAL WATER WITHDRAWN IN 2014

Total water withdrawn by source:

Total water withdrawn by sector 5,915,268m3:

Litres/normalised ‘000 cans

42%

Europe8%

AMEA

20% South America 25%

Other sources30%

North America

75%

Municipal

83.9 201474.3 Target 2020

INTRODUCTION

MATERIALS USE

ENERGY EFFICIENCY

WATER USE

WASTE TO LANDFILL

http://www.cdp.net

http://www.cdp.net



We engage with the waste industry and technology providers to look at better solutions for waste reduction and recycling. Reducing the overall waste we produce is also important for our value chain, and we have committed to reducing our waste to landfill by 25% by 2020 against a 2013 baseline. We have already achieved a 14% reduction in 2014 alone.

Types of wasteThe waste we produce is typically split into either hazardous or non-hazardous waste.

Non-hazardous waste:

• Metal in the form of process scrap and spoilage cans.• Waste from packaging.• Waste from canteens, principally organic and food/

drinks packaging.

Hazardous waste:

• Polluted oils from the metal transformation process.• Leftovers from the interior varnish process.• Leftovers from printing inks, lacquers or

lithography varnishes.• Packaging that may have contained

hazardous substances.• Leftovers of periodic maintenance operations.

Dependent on the classification of authorities:

• Filter cake.

Towards zero waste to landfillWe continue to measure and identify different ways of reducing waste and its impact on society. Approaches to managing waste are agreed with the waste contractors according to their capabilities and the available technology, and we also work closely with our Group innovation and Group lean teams on waste reduction initiatives. Our long-term goal is to send zero waste to landfill and already 11 of our plants achieve this.

To reduce waste our plants follow two main strategies:

• The optimisation and control of processes: minimising the use of primary material and increasing process efficiency as well as reducing spoilage.

• The education/awareness of employees so that thinking about waste reduction becomes a key priority in their routine decisions.

SpillsWe have plans in place at every plant in case of spills and significant incidents are handled using robust business continuity plans. We consider a spill to be significant when it could potentially disrupt the supply to our customers. Each spill is treated as a singular case, depending on the risk to people and the environment. We haven’t had any significant spills over the past three years.

Waste to landfill

Generating material waste is a reality in our business, so we are committed to reducing the amount of waste we send to landfill.

We are committed to reducing our waste to landfill by 25% by 2020 against a 2013 baseline.

100% of our process scrap is recycled

We have reduced waste to landfill by 14% in 2014 alone

FILTER CAKEOur plant in Longview, US, was one of the first to achieve zero waste to landfill. The plant team devised a way to recycle the plant’s filter cake, which represented 96% of the remaining waste to landfill the plant was targeting. Instead of sending the filter cake to landfill, the plant now sends it to a concrete factory so it’s reused. Ten of our other plants now also find a beneficial second use for their filter cake, according to local needs and circumstances.

11 of our plants sent no waste to landfill in 2014

Waste and waste to landfill (metric tonnes)

2014 Total wasteWaste

to landfill

Waste to landfill as a percentage

Europe 17,059 4,554 27%

AMEA 792 315 40%

North America

6,730 4,193 62%

South America

7,359 2,096 28%

Group 31,940 11,157 35%

INTRODUCTION

MATERIALS USE

ENERGY EFFICIENCY

WATER USE

WASTE TO LANDFILL



People

£830,766 total cash and in lieu charitable donations in 2014

22.5 average training hours per employee per annum

50% internal appointment rate for all vacant roles

In 2014, 490 employees across the business participated in the Global Corporate Challenge. Together, they achieved a total of 824,981,778 steps, the equivalent of crossing the Sahara Desert 293 times.

All employees are invited to participate in our engagement survey

All of our plants work closely with their local communities

All of our sites have established wellness programmes

Building a winning organisation is a key part of our business strategy

Safety is one of our core values

1st

Through our business operations and our supply chain, Rexam touches the lives of local communities, consumers and our own people. We know that it is important wherever we operate to be an employer of choice, a responsible citizen and a good neighbour.

We think the world of our peopleBuilding a winning organisation continues to be the foundation of our business and underpins our business strategy. Our people – and their safety – are very important to us, and recognising, valuing and rewarding everyone’s contribution to our success is central to our philosophy.

We want our people to enjoy good health, for their own wellbeing and for the vitality of the business. This starts with making sure everyone has a safe and healthy workplace. Safety is now one of our core values, and we’re passionate about creating a culture where we work together to make zero injuries a reality.

We are also committed to conducting our business in an ethical way, and our people are governed by a Code of Conduct.

We work to ensure our people are engaged with the business, perform at their very best by developing and learning new skills and are prepared for the challenges of tomorrow.

Community engagement Our support goes beyond traditional economic benefits such as jobs, security and local taxes. We support organisations that align with, and are central to, our business strategy and company values. In doing so, we have a positive and joined-up impact on the environment and communities in which we operate.

We support charitable giving by our plants to build important local relationships. And we encourage our people to donate time to organisations, programmes and local agencies that benefit the local communities and beyond. We contribute to organisations that enhance the lives of people, whether through education or improved life opportunities. We also support charities engaged in scientific research looking for solutions specifically for people who have had life-changing injuries.

INTRODUCTION

HEALTH AND SAFETY

EMPLOYEE RELATIONS

LOCAL COMMUNITIES

£830,766



In 2014 we took the decision to add safety to our core values. We wanted to reinvigorate our focus not just on the shop floor, but right across the business. Our safety vision is that we all get home safely to our family and friends every day. To achieve this we need the right culture, and this requires a fully engaged and involved workforce. We work hard to ensure our people look out for themselves and others, and speak up if they’re not sure.

Our world class safety three-year action plan focuses on four drivers: Personal Ownership and Engagement, Management of High Risks, Management Processes, and Leadership and Capability. Within Management of High Risks, our ongoing focus for safety will continue to encompass our LIFE programme, which is aimed at better management and understanding of life changing injury and fatal injury potential in our operations.

Safety is part of our world class operational risk management programme, which sets out a clear charter to achieve environment, health and safety (EHS) leadership. We measure our performance through a balance of proactive and reactive indicators and review the performance of plants both locally and globally against these.

Continuous improvementIn 2014 our reactive metrics for safety saw a significant improvement across the board. Our Lost Time Accident Rate reduced by 61%, while our Rexam Incident Rate fell by 49%. Our severity rate improved by 58%.

And our Fire Safety and Property Protection Programme has gone from strength to strength. From 2011 to 2015 we invested almost £15 million in our fire safety and property protection projects around the world. Our audit process is broken up into two key components, Physical Protection and Human Element. By the end of 2014, 67% of the sites were at silver or gold level for their Human Element scores, versus only 21% in 2012.

We continue to carry out regular EHS audits in cooperation with internal and external specialists to drive best practice.

The audit approach provides the basis for delivering a more sustainable and robust improvement of EHS management systems and we strive for continuous improvement. In 2012 less than 30% of sites were at gold level for the EHS Integrated Audit; by the end of 2014 this had increased to over 70%.

Business continuityWe have established robust business continuity plans and procedures across the Group, and clarity on responsibilities between Group functions and business units in the event of disaster. Ongoing maintenance programmes are also in place at manufacturing plants and facilities.

Business units across the Group continue to focus on risk mitigation, including the drawing up, refinement and testing of business continuity and disaster recovery plans.

Health and safety

Safety is an issue we’re passionate about. Working together, we aim to create a culture where zero injuries is the reality.

ZERO46 of our 55 plants had zero accidents in 2014

I am delighted that we improved our safety record in 2014. However, we all know that just one accident is one too many. We all need to look out for ourselves and others and speak up if we’re not sure. Safety must be central to how we all think and what we all do as individuals and as teams.” Ruairi Connor, Director Group Operational Risk

* The number of lost time accidents multiplied by 200,000/total hours worked.

INTRODUCTION

HEALTH AND SAFETY

EMPLOYEE RELATIONS

LOCAL COMMUNITIES

“

Reactive indicators and safety performance

2012 2013 2014

Number of sites with 0 lost time incidents 67% 69% 84%

Number of sites with 0 medical interventions 78% 62% 71%

Lost Time Accident Rate (LTAR)* 0.19 0.31 0.13

Three-year rolling average LTAR 0.36 0.30 0.21



Employee engagementWe want all our people to feel connected and committed to the business, to each other and to our customers. Our goal is to ensure they are satisfied in their role, recognised, rewarded, listened to and given real opportunities to develop.

One of the mechanisms of listening to our people is through inviting them to participate in our engagement survey, and we’ve continuously improved our results since we ran the first survey in 2010. The most recent survey was conducted in 2013, and in 2014 we focused on completing the agreed actions coming from that survey. Of those, 90% are now completed and we are focusing on completing the remaining 10%. These actions have included interviewing our key stakeholders in the top and most improved plants to understand how we can replicate their successful engagement practices across Rexam.

Training and developmentWe strive to be a learning organisation, where people proactively manage their careers and personal development. From the Rexam Business School and the CrossKnowledge online learning portal, to stretch assignments, 360 degree feedback, coaching, mentoring and leadership practices, we have the best possible tools to help people develop.

Rexam is fully focused on being fit for the future to ensure that we have the people and the plans in place to meet our current and future needs. Rexam provides a number of development programmes to prepare potential candidates at all levels for future and more senior leadership roles.

Our leadership development programmes – Rexam Academy, Horizon, and our Accelerated Development Process – equip our potential and senior leaders with the knowledge and expertise to be the best they can be and develop their careers within Rexam.

In 2014 we conducted a robust external benchmark of our leadership development offering and found that our leadership development products are of good quality, benchmark well with the cost of similar offerings from the leading business schools, and are highly regarded by external vendors, with a 94% approval rating.

For Rexam to grow, it’s important that our people do too, and this is why continuous improvement is encouraged and rewarded. To facilitate the further strengthening of our performance culture in 2014 we implemented a new performance management system. It is aligned with our strategy of data integration and is intuitive and dynamic, embracing the increased use of feedback both informal and formal through a Rexam-specific 360 degree tool and an improved link to individual development. In addition, we collect feedback from our people after each performance cycle, with overall satisfaction levels at 84%.

Our efforts recognised in the DJSIWe are industry leader in Human Capital Development and Labour Practice Indicators and Human Rights across all packaging companies assessed for the 2016 DJSI.

Employee relations

Building a winning organisation is a key element of our strategy to help secure a sustainable future for our business and our people, our customers and our shareholders. Our people are the

foundation of our business, and our approaches and tools ensure our people are engaged, performing well and prepared for the future. Our processes work alongside our positive and effective culture founded on our values of trust, continuous improvement, teamwork, recognition and safety.” Nikki Rolfe, Group HR Director

1,737 online training modules completed globally in 2014

180,000 training hours undertaken in 2014

INTRODUCTION

HEALTH AND SAFETY

EMPLOYEE RELATIONS

LOCAL COMMUNITIES

1,737

“

ENGAGEMENT AT OUR MILTON KEYNES PLANTOur Milton Keynes plant in the UK is one of our engagement success stories. In just 18 months the engagement score improved 16% from 69% to 85% (10% above our external benchmark target of 75%). Using focus groups, critical engagement areas of communication and trust were addressed and a series of actions identified, including the creation of communication champions and town hall meetings, the development of internal trainers, and extensive health and safety training. We also drove greater people involvement in lean programmes such as Zero Loss.

* There was no survey in 2014 as our engagement survey is conducted at 18 month intervals.

EMPLOYEE ENGAGEMENT SCORES*

69%

72%

2012 2013



We are a committed partner in the communities in which we operate, and 100% of our sites work closely with local schools, charities and other groups to make a positive impact. This can be through cash donations or in-kind support. We have set ourselves an ambitious 2020 target to increase the number of hours our employees dedicate to voluntary community engagement by 50% from a 2013 baseline.

All Rexam plants are involved with their local communities in the way they best think they can contribute, in line with our Community Engagement Strategy. Some of the different activities comprise:

• Recycling activities to raise awareness of the importance of recycling among children and adults. We organise challenges between schools, and at marathons, contests and other events.

• Sponsoring, including supporting a group of local school children on a trip to Ecuador and the Galapagos Islands to help rebuild homes and a local school.

• Donating money to help local communities. For example, when our South American sector achieves its monthly safety targets, it is given money to support a local charity that the plants themselves have previously identified. This is also supported by volunteer work from plant employees.

• Volunteer campaigns, where employees donate and deliver supplies to local communities. These can vary from shoes or milk, to school supplies and other necessities.

Local communities

It is not only money that our plants donate to local communities, but also time, skills and resources. This provides a more rewarding experience for both sides and helps create a better society.

All Rexam plants are involved with their local communities in the way they best think they can contribute.

£194,766

The value in 2014 of all our community engagement activities

15,541

The number of hours our employees dedicated to voluntary community engagement in 2014

INTRODUCTION

HEALTH AND SAFETY

EMPLOYEE RELATIONS

LOCAL COMMUNITIES

COMMUNITY RECYCLING Our North American sector has been involved with the America Recycles Day challenge for 12 years, and our European sector has held the annual Community Can Challenge since 2011. For the challenges, each plant works with local residents to improve can recycling. Children and adults visit the plants for a day and take part in a workshop to learn why it’s important to recycle cans and the environmental benefits of doing so. The winning plant is the one that collects the most cans for recycling and generates the most media impact.

COMMUNITY ENGAGEMENT

100%

2014

(% of sites participating)

83%

59% 10

0%

20122011 2013


http://www.americarecyclesday.org



This is our first GRI G4 Core report. We believe that this has allowed us to report on what is material to our business, which is what directly affects our stakeholders and our company. We aim to present a transparent approach to sustainability and to explain how we address our key economic, environmental and social impacts.

This report covers the period 1 January 2012 to 31 December 2014. Our previous report was the Rexam Sustainability Report 2011/2012. Typically our reporting period is biennial; however, due to the materiality assessment carried out in 2014, we delayed the publication of this report.

Unless otherwise specified, such as in baseline reporting, all information contained in this report covers the years 2012 to 2014 (January to December), and in some areas we have included information from 2015.

The financial information in this report covers Rexam PLC and its subsidiaries, which operate in 25 countries, and, where relevant, our joint venture company, Controladora Envases Universales Rexam SA in Guatemala, and our associated company, Hanil Can Company, in South Korea. Our recent joint venture acquisitions, United Arab Can in Saudi Arabia and Envases Del Istmo SA (Endelis) in Panama, are excluded.

In 2014 we sold our healthcare business, the last remaining part of our plastics business. We have therefore rebased all non-financial data to cover our beverage can business only.

In some cases data from our previous report may have changed slightly due to: improved processes for calculations, estimations, allocations or improved methodologies. We have been careful to state all data in this report to the same consistent approaches.

Data measurement techniques and the bases of the calculations are qualitative and quantitative analysis using the GRI Framework.

We report on an annual basis our progress against our 12 commitments on our Rexam.com website, as well as in our Annual Report.

External assuranceThe information in this report is subject to internal review, as well as external review for energy and greenhouse gas emissions. The assurance statement is available on our website.

About this report

ABOUT THIS REPORT

GRI G4 SUMMARY INDEX

https://www.rexam.com/




GRI G4 summary index

ABOUT THIS REPORT


This summary index is intended to help readers of this report find GRI G4 related information more easily.Information on the indicators not covered in this report can be found in our full GRI G4 index, available online.

G4 indicator References Location

General standard disclosures

Strategy and analysis

G4-1 Three years in review R 3

Organisational profile

G4-3 Rexam GRI G4 index I 2

G4-4 Overview R 2

G4-5 Back cover R bc

G4-6 Overview R 2

G4-7 Overview R 2

G4-8 Overview R 2

G4-9 Overview R 2

G4-10 Overview R 2


G4-12 Responsible supply chain R 15


G4-14 Good governance R 8

G4-15 What we’re proud of R 4


Identified material aspects and boundaries

G4-17 About this report R 26

Key

R Sustainability Report

I Rexam GRI G4 index

AR Rexam Annual Report 2014

bc Back cover of this report




G4-19 Materiality and stakeholder engagement

R 7





Stakeholder engagement


R 7


R 7


R 7


R 7

Report profile






G4-31 Back cover R bc



Governance

G4-34 Annual Report AR 48

G4-35 Annual ReportCode of Conduct

AR 18, 29

DMA and indicators References Location

Specific standard disclosures

Category: Economic

Material aspect: Economic performance

G4-DMA Annual Report AR 87–142

G4-EC2 Rexam GRI G4 index I 4

Category: Environmental

Material aspect: Materials

G4-DMA Materials use R 17, 18

G4-EN1 Rexam GRI G4 index I 4


http://www.rexam.com/assets/files/cms/About_Rexam/worldwide_code_of_conduct.pdf


Overview Products Operations People About this report ABOUT THIS REPORT


GRI G4 summary index continued



Material aspect: Energy

G4-DMA Energy efficiency R 19


Material aspect: Water

G4-DMA Water use R 20

G4-EN8 Water use R 20

G4-EN10 Water use R 20

Material aspect: Emissions

G4-DMA Life cycle carbon R 12



G4-EN18 Life cycle carbon R 12

Material aspect: Effluents and waste

G4-DMA Waste to landfill R 21

G4-EN23 Waste to landfill R 21

G4-EN24 Waste to landfill R 21

Material aspect: Products and services

G4-DMA Recycling R 11

G4-EN27 Recycling R 11

G4-EN28 Recycling R 11

Material aspect: Supplier environmental assessment

G4-DMA Responsible supply chain R 15

G4-EN32 Responsible supply chain R 15

G4-EN33 Responsible supply chain R 15



Category: Social

Sub-category: Labour practices and decent work

Material aspect: Employment

G4-DMA Employee relations R 24

G4-LA1 Rexam GRI G4 index I 8


Material aspect: Labour/Management relations



Material aspect: Occupational health and safety

G4-DMA People, Health and safety R 22, 23




Material aspect: Training and education


G4-LA9 Employee relations R 24



Material aspect: Diversity and Equal opportunity

G4-DMA Rexam GRI G4 index I 11


Material aspect: Supplier assessment for labour practices





Material aspect: Labour practices grievance mechanisms



Sub-category: Human rights

Material aspect: Non-discrimination

G4-DMA Code of Conduct Rexam GRI G4 index

I 12

G4-HR3 Rexam GRI G4 index I 12

Material aspect: Freedom of association and collective bargaining



Material aspect: Child labour



Material aspect: Forced or compulsory labour



Material aspect: Supplier human rights assessment


G4-HR10 Responsible supply chain R 15

G4-HR11 Responsible supply chain R 15

Material aspect: Human rights grievance mechanisms

G4-DMA Code of Conduct Rexam GRI G4 index

I 14






GRI G4 summary index continued

ABOUT THIS REPORT




Sub-category: Society

Material aspect: Local communities

G4-DMA People, Local communities R 22, 25

G4-SO1 People, Local communities R 22, 25

G4-SO2 Rexam GRI G4 index I 15

Material aspect: Anti-corruption

G4-DMA Good governance, Responsible supply chain

R 8, 15

G4-SO4 Good governance, Responsible supply chain

R 8, 15


Material aspect: Innovation

G4-Custom DMA Innovation R 16

G4-Custom R&D Innovation R 16


Non-material aspectsIn addition to the material aspects identified through our materiality process, we recognise that the following aspects are relevant to our business and therefore have chosen to report against them.

Material aspect: Public policy

G4-DMA See G4-SO6 in Rexam GRI G4 index

I 15


Material aspect: Compliance

G4-DMA See G4-SO7 in Rexam GRI G4 index

I 16



Material aspect: Customer health and safety

G4-DMA See G4-PR1 in Rexam GRI G4 index

I 16

G4-PR1 Rexam GRI G4 index I 16

G4-PR2 Rexam GRI G4 index I 16

www.rexam.com

Contacts

Head office

Rexam PLC 4 Millbank, London SW1P 3XR, UK

T +44 (0)20 7227 4100

SustainabilityJohn Revess [email protected]

Corporate communicationsMark Bunker [email protected]

Investor relationsMarion Le Bot [email protected]

Follow us online

@rexamplc youtube.com/rexamplc linkedin.com/company/rexam

https://twitter.com/rexamplc

https://www.youtube.com/user/RexamPlc

https://www.linkedin.com/company/rexam

2015 rexam sustainability report final

Documents

beverage cans

annual report

litre cans

standard cans

bn cans

global headquarters

european operations

sustainabil ity report