Sustainability report - Reporting

Amcor believes transparency around our environmental and social performance is key to understanding and managing our footprint.

While some environmental data has been disclosed in previous sections of this report, this section contains a range of additional information relating to our broader environmental and social performance. This includes reporting on the safety of our Amcor colleagues, our responsible procurement activities, our alignment with the United Nations Sustainable Development Goals, our approach to attracting and engaging talent, and our strategy for fostering ethics and integrity at Amcor.

Transparency is a responsibility that Amcor takes seriously. It helps us hold ourselves to account and shows leadership in our industry. We will continue to report regularly on our environmental and social footprint.

Protecting our co-workers, contractors, and visitors is a core value. We take care of ourselves and each other so everyone goes home safely at the end of every day.

We champion safe and responsible behavior among our co-workers to achieve our ultimate goal of zero workplace injuries. All of Amcor’s manufacturing, warehouse, and office sites are subject to our Global EHS Standards.

Amcor’s recent safety priorities include a reduction of significant and fatal injuries, fire prevention, hand safety, updating the Amcor Global EHS Standards, and global standardization of the Amcor EHS Program.

To support these safety goals and priorities, we implemented a mix of new initiatives, including a Safety Action Management System for improved incident reporting and management, an updated standardized EHS Risk Matrix, and global EHS 101 – Basic EHS Training. We also continued our emphasis on compliance with the Amcor Critical Risk Standards and Life Saving Rules, supported ongoing use of EHS Improvement Plans, and renewed our efforts to perform value-added EHS Audits against the Amcor Global EHS Standards.

Safety Management

Amcor’s Global Safety Steering Committee, comprised of the Vice President of Safety and Environmental Affairs, Amcor’s EHS team, and the Environment, Health, and Safety Directors from each Business Group, provides global direction and oversight for the EHS program. Additionally, a monthly Safety Flash detailing recordable cases, lost time cases, and hand injuries is distributed to Amcor leaders for all functions in each Business Group.

At the site level, leaders create local EHS Improvement Plans. Across our global business, approximately 80% of our co-workers are represented by a joint management-employee Safety Committee, which meets monthly. Employee Safety Committees are a means for a site to gain input from, provide information to, and have collaboration from its co-workers. A typical site Safety Committee is comprised of management team members along with employee representation from various departments, job functions, and shifts. The activities and agendas of these committees varies between sites.

Our co-workers can also participate in the EHS Audit program, where they are trained to conduct site safety audits across the company. These second-party site audits are conducted at each site every three years, with findings addressed in action plans.

All Amcor co-workers receive education on the Amcor Safety Policy and can access the Global EHS SharePoint site, a digital resource that contains our EHS standards, best practices, training material, and additional resources for strengthening safety at Amcor. Co-workers also receive periodic training at the site-level covering topics such as chemical exposure, ergonomics, first aid, emergency response, work-related hazards, and proper means to perform work-related tasks.

Safety Performance

Amcor measures our safety internal safety performance against two industry- standard criteria: Lost Time Injury Frequency Rate (LTIFR) and Recordable Case Frequency Rate (RCFR). On both metrics, we compare favorably with similar companies, but the only acceptable rate is zero injuries – an accomplishment recorded by 52% of our locations last year.

Lost Time Injury Frequency Rate: We measure LTIFR by calculating the number of injuries resulting in at least one full work day lost per million hours worked. In FY20, our LTIFR was 0.88, corresponding to 92 cases across our global business.

Recordable Case Frequency Rate: RCFR is measured by calculating the number of medical treatment cases and lost time injuries per million hours worked. In FY20, our RCFR was 2.81, corresponding to 290 cases across our global business. The most common types of injury were lacerations, fractures, and sprains/strains. Work-Related Fatalities: Amcor recorded zero work-related fatalities in FY20.
Contractor Safety: We have a detailed company- wide standard mandating a common approach to contractor control, certification, and compliance.

Hazard Management

Amcor has a hazard identification, risk assessment, and risk control (HIRARC) standard that applies to all our sites. Sites apply HIRARC for all routine and non-routine activities, existing and new operations, construction and demolition work, and all co- workers, contractors, and visitors.

The application of the HIRARC process involves a team of individuals at each site who are familiar with the activity, task, project, or equipment being assessed. The team is led by a trained member of the management team, department leader, or EHS staff.

All risks associated with identified hazards are assessed using the Amcor EHS Risk Matrix. Each risk assessment takes into consideration the likelihood of a potential risk occurring and the severity of consequence(s) resulting from occurrence of the risk. The EHS Risk Ranking generated from use of the EHS Risk Matrix identifies whether the risk is acceptable, acceptable with controls, undesirable, or unacceptable.

Risk controls are identified and selected according to the hierarchy of control, with follow-up to ensure that risks have been properly addressed. Risk assessments are reviewed for accuracy every three years, or earlier if there is an incident or a change to the work environment, equipment, materials, or tasks.
Amcor sites also periodically conduct industrial hygiene monitoring using accredited contractors to ensure co-workers are not exposed to risks such as excessive noise or levels of chemicals greater than local regulatory exposure standards.
Any results of concern are addressed as appropriate, with re-testing performed as necessary. Amcor co-workers are informed and/or have access to the results of this process.

Multiple site-specific processes are available across all locations to allow co-workers to report hazards, concerns, or other issues without retaliation. Amcor co-workers understand their right to stop any equipment or task that is being performed if there is an existing or potential hazard that could harm an employee, contractor, or visitor.

All EHS incidents are investigated by a team using a formal methodology to identify the root cause and contributing causes. Any risk assessments and identification of corrective actions performed as part of the investigation follow the previously described processes.

Environmental Management

Amcor’s approach to environmental management, which is informed by the Precautionary Principle as defined in the 1992 United Nations Rio Declaration, prioritizes using risk management processes to control the environmental hazards inherent in our activities. Our companywide Environment Policy supports this approach with specific environmental management requirements to help identify and address the key risks our sites may pose to their local environment.

The implementation of our environmental standards across all our sites and offices, including newly integrated sites, falls under the responsibility of our business group EHS functions, and is monitored at corporate level.

These teams are also regularly review environmental performance and significant environmental matters, and roll up site- level environmental performance metrics to share annually with Amcor’s Board.

Key initiatives from this function in FY20 included:

• Adopting a revised environmental management standard as part of a systematic review to strengthen global environmental health and safety standards,
• Improving reporting of environmental incidents through the roll-out of a newly developed Safety Action Management System
• Working to increase co-worker knowledge of environmental management issues through the development of new training modules, which will be included in FY21 training efforts.

As part of our ongoing environmental management activities, all Amcor sites have an environmental management system in place (e.g. ISO 14001
or equivalent) that is appropriate for the risk associated with operations at the site, as well as the risk associated with the site’s geographic location.

Separate from any relevant external audits, all sites are also required to conduct annual self- assessments following internal environmental management standards. They are audited every three years by Amcor’s team of EHS auditors, while regional EHS coordinators conduct site audits at a frequency determined by the risk associated with each site.

Amcor additionally conducts a range of environmental investigations as part of our ordinary course of business. For example, environmental permitting, site redevelopment, site closure, or acquisition/divestment processes may entail such investigations. Where required, communication with environmental authorities may be part of these processes. Similarly, Amcor facilities are subject to required regulatory inspections as part of our ordinary course of business. Any findings from these inspections are resolved as part of normal operational compliance management processes.

In FY20, Amcor remained materially compliant with all environmental laws and regulations across the more than 40 countries in which we operate.

With over 37,000 suppliers around the world and around $8.5 billion in FY20 procurement spend, it’s clear Amcor relies on a large and complex supply chain.

We strongly value our suppliers as key partners in ensuring the quality of our products and the smooth functioning of our operations.

But we also acknowledge such an expansive supply chain as a potential source of environmental, labor, and human rights risks. Though the packaging industry’s supply chain is less susceptible to such issues than many other industries, we must remain vigilant to protect ourselves, our customers, and our communities.

Amcor’s procurement function works closely with our suppliers to maintain a supply chain that is responsible, ethical, and transparent by proactively tracking and managing the environmental and social impacts of our purchasing activities. Priority focus areas in FY20 included post-consumer recycled content, bio-based materials, aluminum, and paperboard/cartonboard. Our approach to managing these impacts is described in the Innovation section of this Report. We also initiated discussions with our largest suppliers regarding the carbon footprint of our raw material purchases, with a goal of collecting better Scope 3 emissions data and, ultimately, offering materials with a lower carbon impact.

Our procurement teams engage suppliers of all sizes in our responsible procurement priorities. We categorize our suppliers as strategic, critical, core, and rest based on spend, size, and strategic importance to Amcor. We set specific targets for our strategic and critical suppliers.

All Amcor suppliers are required to comply with the principles outlined in our Supplier Code of Conduct, which covers the areas of business integrity, labor standards, occupational health, and environmental management and improvement. Our goal is for 100% of strategic and critical suppliers to sign our Supplier Code of Conduct or to demonstrate they have an equivalent internal code of conduct in place. As of FY20, approximately 93% of these suppliers representing 74% of the USD $4B total spend within their categories have achieved this benchmark.

Amcor also requests all our strategic and critical suppliers to complete assessments through the EcoVadis global supply chain sustainability rating platform. EcoVadis helps us evaluate each supplier’s performance in the areas of environment, labor practices and human rights, fair business practices, and procurement sustainability. Based on a supplier’s responses, our procurement and sustainability teams can assess whether additional interventions are necessary to reduce risk and, if so, correctively engage with the supplier. In FY20, we set a goal for 75% of our strategic and critical suppliers to have completed an EcoVadis assessment within the past two years. Approximately 48% of these suppliers met this goal, representing 54% of spend within those supplier categories. Engaging with suppliers to achieve increased participation rates remains a key FY21 goal across our global procurement teams.

Several Amcor Business Groups also require suppliers to answer a set of sustainability-related questions during the onboarding process. This helps our procurement teams assess and address potential environmental and social risks before we initiate a relationship with the supplier.

To ensure our procurement functions remain up to date on the latest goals and issues related to responsible procurement, our sustainability team conducts ongoing trainings for all procurement team members at or above the category manager level.

Amcor also works with customers and peers to advance responsible procurement across the industry through groups such as AIM-PROGRESS, which offers a pre-competitive environment for collaboration and brainstorming on human rights and environmental issues in the supply chain.

Amcor is dedicated to engaging and growing talent.

We strive to build an outperformance culture through diversity and a work environment in which every employee is valued and treated with respect. We want all employees to have the opportunity to contribute to business success and to realize their full potential. We have a strong focus on training and developing our employees to meet the needs of the business, as well as supporting their career aspirations. Providing the opportunity to grow, gain experience, and take ownership “The Amcor Way” moves us closer to realizing our Winning Aspiration.

Recruiting Top Talent

A key priority of Amcor’s Human Resources function is to recruit top talent.
Our Accelerated Career Development Program, which launched in 2015, is an example of how we attract diverse, high-potential talent to our sales and marketing teams around the world. Participants in this four-year program strengthen their capabilities by working in two different locations, where they focus on training, development, global project work, and mentoring. After completing the program, participants advance to fill many commercial roles around the globe. This strengthens the succession pipeline for leadership roles at Amcor while also developing business-relevant competencies to drive growth and gain new business opportunities.

Our recruiters around the world increasingly hear from candidates who value our commitment to sustainability. We believe our ambitious goals and strong performance related to sustainability will help us continue attracting the highest-caliber candidates to help build the future of packaging.

Building Diversity

Amcor strongly values the diversity of our global workforce and we strive to achieve ‘talent through diversity’ across our operations. This work is supported by our Talent through Diversity Policy.

We also report progress on gender diversity annually to the Amcor Board of Directors and its Human Resources Committee. We additionally report on gender diversity at our UK sites through our publicly available UK Gender Pay Narrative.

While we continue working to provide more transparency on our diversity practices, we must also strike a careful balance with privacy legislation in certain regions of the world. In some areas, we are not authorized to collect information related to common diversity metrics such as gender, race, or age. Select regional diversity data is available in the Content Index of this report (p72). We continue reviewing ways to improve our diversity transparency practices.

Tracking Engagement

Every two years, we have historically completed a Global Engagement Survey (GES) to collect feedback from our co-workers on a range of topics and help us understand how employees feel about Amcor as a place to work. Most importantly, the feedback gives us information on how we can improve as a company.

In FY20, we postponed our planned GES due to the Covid-19 pandemic. As an alternative, we conducted a 15-question survey in which we provided the opportunity for all employees to participate. The survey contained ten questions related to engagement and five about Amcor’s response to the pandemic. Reviewing the results internally helps us continue improving the way we engage with our people around the globe.

Ensuring Freedom of Association

Co-workers at manufacturing sites comprise the majority of Amcor’s workforce. In FY20, 119 of our facilities recognized collective bargaining by majority representation and 115 facilities, representing approximately 22,800 co-workers, were covered by such agreements.

Training and Education

We have developed a range of training and education programs to help our people across all functions and experience levels develop. Some examples of these programs include:

Lead to Outperform: This leadership program is offered to people managers and consists of two multi-day modules combined with virtual coaching calls and peer group activities. The program supports participants in creating an outperformance culture with their teams. Participants build people manager skills and competencies and the program helps to develop Amcor’s internal network.

Manufacturing Leadership Development Program:
This three-year program provides development to help build Amcor Flexibles North America’s pipeline of future plant general managers. Participants are typically veterans coming out of the military and transitioning to civilian life. In FY20, there were nine participants in this program.

Human Resources Webinar Sessions: A series of monthly webinars developed by HR leaders in the Asia-Pacific region to help HR co-workers learn about different topics related to Amcor’s global operations. Topics include Finance for Non-Finance Employees, Employee Engagement, Operations, and Product Training. These sessions enable HR to develop improved capabilities to help grow the business.

Future Leader Program: The focus of this Amcor Specialty Cartons program is to further develop and grow existing high-potential performers within the organization to take on broader and bigger roles and responsibilities. Topics include talent development, strategy setting, business acumen, innovation, and crisis management, among other areas. By exposing participants to a variety of key stakeholders and work on highly visible projects, we create a strong leadership pipeline within the organization.

Change Management Webinar Sessions: This two- episode webinar session was developed to ensure Amcor’s top leadership across the business have a good understanding of change management and how to effectively handle organizational changes. By developing knowledge about why changes happen, how to handle changes, and how to involve the team when there are changes, leaders are empowered to effectively manage change and support successful implementation of Amcor’s business strategy.

Technical Skills Foundations Training: This two-day training is offered by Amcor Flexibles Europe, Middle East and Africa to all managers and co-workers who need basic knowledge about Amcor Flexibles’ technical processes. Participants get an overview of the technical processes and technologies used throughout the packaging supply chain, helping them to better understand customer thinking and support customer packaging needs.

JumpStart@Amcor: This global program focuses on the various functions at Amcor to give all employees a cross-functional learning experience. The program was designed to align the organization after the 2019 acquisition of Bemis to ensure a common language and understanding globally. Participants of the webinars, which were available to all co-workers at every level, had the chance to interact directly with senior leaders to ask questions. In a follow-up survey, 99% of participants said they gained a better understanding or refreshed their ways-of-working knowledge through the program.

Training for office and salaried co-workers is managed at the Business Group level, while training for non-salaried co-workers is managed at the site level to reflect local practices. Due to differences in practices and processes between Business Groups, we do not track consolidated training data for Amcor as a whole. Training data for select Business Groups is available in the Appendix to this Report.

Amcor recognizes the importance of honesty, integrity, and fairness in conducting our business.

Good corporate governance and transparency are fundamental to achieving our vision of becoming the premier packaging solutions provider in every market in which we operate.

We are committed to increasing shareholder value in conjunction with fulfilling our responsibilities as a good corporate citizen. We believe that, in addition to abiding by the national laws in each country in which we operate, we must also conduct business in accordance with internationally accepted practices and procedures.

All directors, managers, and co-workers are expected to act with the utmost integrity and objectivity, striving always to enhance Amcor’s reputation and performance. These core principles, which Amcor’s Board of Directors and senior management are committed to upholding, are reflected in Amcor’s global policies. All our public policies, including those summarized below, can be accessed in the Corporate Governance section of our website.

Anti-Bribery and Corruption Policy: This policy describes Amcor’s approach to bribery and corruption, provides information and guidance to recognize and deal with related issues, and outlines the steps Amcor takes to manage associated risks.

Code of Business Conduct and Ethics: This policy, which was updated in January 2020 and subsequently reviewed and signed by all Amcor employees, provides a framework for making ethical business decisions. It is written with regard to the OECD Guidelines for Multinational Enterprises. The policy includes a set of detailed standards and guidance related to areas such as business integrity, labor practices, health and safety, legal compliance, conflicts of interest, risk management, and escalation of issues. Topics covered include non-discrimination, freedom from harassment, prohibition of child labor, and freedom of association. It is available in 23 languages in addition to English.

Fraud Prevention Policy: This policy establishes the general principles and minimum requirements for managing fraud risks across Amcor.

Modern Slavery and Human Trafficking Statement: This document describes Amcor’s approach to preventing modern slavery – defined as slavery, servitude, forced labor, child labor, or human trafficking – within our businesses and supply chains. Our most recent statement was made in accordance with a resolution by the Board of Directors in February 2020.

Whistleblower Policy: This policy shares Amcor’s approach to protection for and response to whistleblowers. It instructs co-workers to report wrongdoing through their direct line of management or the Amcor Whistleblower Service. This service is available online and through a dedicated, multilingual hotline available 24 hours a day via an independent third-party service provider. All complaints received are referred to Amcor’s Whistleblower Committee for investigation in collaboration with the relevant Business Group or internal audit function. Outcomes from each investigation are reported to the Board but are not disclosed externally due to confidentiality protections.