2009tp environmental social report

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Environmental and Social ReportTetra Pak | 2009


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Tetra Pak is the world's leading ood processing and pack-

aging solutions company, with activities in more than 150countries worldwide. We well recognise the imperative to

balance our uture growth ambitions with our responsibility

to those with whom we do business, to our employees, to the

communities in which we operate and to the environment.

To that end, our community and environmental initiatives

are integrated into our business activities. For example, we

use raw materials rom responsibly managed orests; we

set targets to reduce environmental impacts; we advance

school eeding programmes; we drive activities ocused on

nutrition, wellness and health; we support relie eorts in

the wake o natural disasters; and much more. And in all

CONTENT02 A continuing journey

04 CEO's Message

PLANET06 Introduction

08 A holistic approach

10 Forestry

16 Renewales

17 Continuous improement

18 Climate

21 Recycling

24 Enironmental acts

PEOPLE26 Introduction

28 Customers

32 Food or deelopment

36 Employees

39 Community

43 People acts

TETRA PAK44 Introduction

46 Corporate goernance

48 What we do

50 Report Parameters

51 GRI Index

A continuing journey

o these activities, we cooperate with leading environmental

and development organisations rom across the globe.

Tetra Pak participates in the United Nations Global

Compact. Initiated by the ormer Secretary General Ko

Annan in 1999, the Compact brings together companies,

UN agencies, labour and civil society to support ten princi-

ples in the areas o human rights, labour, the environment

and anti-corruption. We are committed to supporting and

promoting the Compacts principles in our everyday busi-

ness. This is in line with our traditional way o working

and ollows Tetra Paks vision, Code o Business Conduct

and Mission Statement which reers to our belie

in responsible industry leadership, creating protable

growth in harmony with environmental sustainability

and good corporate citizenship. We are implementingthe Compacts principles through the actions set out in

this report, which also serves as our Communication on

Progress to Global Compact.

We recognise that there are still many social and environ-

mental challenges or our business and believe we can

only improve by being transparent about our activities and

by listening to our stakeholders. This report is an update

on our progress, and on our continuing journey.

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Tetra Pak Headquarters

People story in this report

Planet story in this report

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Our company was ounded 58 years ago with a

vision to make ood sae and available, everywhere.

This report provides an overview o how we oper ate

to earn that trust. It explores some o the complex

compromises we ace and describes how we take the

decisions that lead us to our vision and mission. We

know, o course, that we still have a long way to go;

and we recognise that we cannot do it alone, but only

with the guidance o our expert partners and input

rom all our stakeholders.

That is why we are passionate about continuing our

discussion with you whether you are reading it

as a customer or potential customer, an employee, a

citizen, a representative o government or member

o a non-governmental organisation or have another

interest on the issues you have told us you care about.

We have long engaged in local dialogue and intend

to continue the discussions through our website, sur-

veys and other interactions. We have communicated

our corporate environmental perormance or more

than a decade, ormally measured and re ported it or

nine years and included our broader sust ainability

commitments or ve years. Such dialogues help us

to evolve both as an enterprise and a good corporate

citizen. In conjunction with our systematic approach

to evaluating impacts they have helped us determine

key areas o ocus: customer satisaction, employee

well-being, human health and saety; acilitating

increased recycling in order to obtain value rom used

packages; the choice o materials and energy; the

total environmental ootprint let by our products.

Benefting societyOur companys ounder, Ruben Rausing, was deter-

mined to make milk sae and available across post-war

Europe and beyond, even where the distribution

inrastructure and actories were badly damaged.

He amously said that Tetra Pak packaging should

save more than it costs, meaning in social as well as

economic terms. Today, we also apply that standard

to the environment. He and his team designed aseptic

packaging to protect ood or long periods without

preservatives, even in extreme conditions. His vision

brings daily benets to households around the world

and enables us to be a useul partner in development

work. In partnership with businesses, governments,

United Nations and aid agencies, we develop prod-

ucts and packaging to bring c hildren high-quality

nutrition at school, improving their attendance and

ability to learn. One o our key challenges is to extend

these programmes by taking them to new countries

and regions, and involving a wider cross-section o

each community. We and our partners are working

vigorously to accelerate this process.

Protecting the environmentWe avour the use o renewable resources, such as

wood. This benets the entire natural environment;

responsibly managed, it guarantees inexhaustible

supplies o materials and energy. We work with,

and learn rom, leading organisations such as WWF.

We are honoured to serve on t he boards o the High

Conservation Value Resource Network (HCVRN)

and the Forest Stewardship Council (FSC), as well

CEOs MESSAGE

Finding our way together

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as working closely with our suppliers. Today FSC

certied cartons are available in stores a rst or

liquid ood packaging and we aim to systematically

increase the amount o FSC cer tied paper we pur-

chase. We are also working to increase recycling o

carton packages; while more countries are recycling,

and volume is growing, it has not yet reached the

level we hope or.

Thank you or joining us as we explore how to operate

responsibly and or helping us to nd our way. While

we are extremely proud o our past perormance, we

are looking orward to working with you to improve

urther. Naturally!

Dennis JnssonCEO, Tetra Pak

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PLANET

Good or the environmentmeans good or businessProtecting the environment is the right thing to do or society and or business. We want to ensure that our impact on

communities and the environment is taken into account in all o our day-to-day operations. We take a systematic

approach to using energy more eciently, avouring renewable materials and continuously improving the entire

supply chain, helping ourselves and our customers to be more competitive through lower costs.

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A holistic approach to doing businessOur aim is to ensure that the oerall perormance o our products rom the choice o raw materials to the manner o their disposal is continuously

improed, without compromising quality. We see no alue in optimising one part o the chain at the cost o another.

Raw materialsThe choice o materials must hae the

highest enironmental alue and lowest

enironmental cost. We aour

renewale materials, and our cartons

are mainly made rom wood res.

PaperboardWe and our suppliers are

implementing tracing systems to

ensure the wood re we use is

sourced responsily. All suppliers

actories will hae achieed the rel-

eant certication y 2015, and our

own actories will ollow y 2018.

ConvertingWe laminate paperoard to ensure that cartons allow

liquids to retain their nutritional alue while excluding

contaminants and oxidisers. Our packaging material

plants are certied to ISO 14001 standards and are

systematically decreasing CO2

emissions.

Milk & JuiceOur processing and packaging

solutions are predominantly used to

presere the nutritional alue and

quality o milk and juice products and

other liquid ood.

ProcessingWe delier processing solutions or

our customers ood products. These

ensure ood saety and high production

quality. Our systems are continuously

eing deeloped to delier lower

enironmental impact and higher

perormance, making our customers

production as ecient as possile.

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FillingOur customers use our equipment to

package their products. We continually

improe the perormance o our systems,

enaling them to improe theirs.

DistributionTransport and retail logistics are

crucial to ecient distriution,

low enironmental impacts and

high consumer alue.

Retail and ConsumersTetra Pak packages are designed

to meet our retailers needs and our

consumers demands or conenience

and protect the ood inside.

RecoveryWe work with and support our customers,

pulic authorities, NGOs, industry groups

and community associations to ensure our

packages are recoered eectiely.

Requirements and possiilities are

determined locally.

Recycled carton packagesWhen recycled, carton packages are

turned into raw materials that are

used to produce a wide range o

commercial products.

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FORESTRY

The challenges o choiceForestry can be benecial or damaging, depending entirely

on how it is practiced. Forests are huge ecosystems that

sustain not only trees, but also diverse animals, plants, ungi

and insects. Well-managed orests ensure a renewable

supply o raw materials, enhance the natural environment

and provide jobs or local communities. These benets are

continuous because only a small percentage o the orest is

harvested and re-grown every year.

The risks come when orests are not managed well.

From our point o view, such practices can create

negative perceptions about our products even w hen they

take place in orests not linked to our business. The duty is

thereore on us to work with organisations t hat encourage

acceptable orestry practices worldwide.

Guidance rom the expertsWhen dening our policies, we seek guidance rom, and

engage in, initiatives with some o the groups who most

stringently guard the worlds orest sources: WWF and the

Global Forest and Trade Network, the Forest Stewardship

Council and the High Conservation Value Resource

Network. This ensures that we and our supplier s abide by

clear and accepted high standards.

Meeting undamental requirementsOur Forestry Guideline denes our objectives and guiding

principles: to guarantee that all the wood bre we use is

traceable rom tree to store, that it comes rom responsibly

managed orests, and that our suppliers achieve traceability

and orest management certication. In 2008, 97% o the

paperboard we used was ully traceable through certication.

We evaluate suppliers each year, and reward them or

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Tetra Pak is showing leadership in the paper sector on transparency and supply chain

management or re sourcing and paper processing. Tetra Paks commitment to the

Forest Stewardship Council (FSC) and its achieement o 100 million FSC-laelled

eerage cartons is a landmark. WWF hopes that Tetra Pak will continue its amitious

eorts and make een more progress in the uture.

Rod Taylor, Director Forest Programme, WWF International.

helping us meet our goals. An independent organisation,

ProForest, also audits those o our suppliers who do not

have an independently veried traceability system every

two or three years; ProForest identies areas or improve-

ment, risks and any non-compliance. We publish the

report in our Forestry Programme brochure.

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Klabin is a orest products company in southern Brazil. Its challenge is how to

grow and harvest wood in a countr y whose orestry provokes intense debate

locally and globally. The solution is engagement with partners who help

bring sustainability to lie.

Mosaic is home to 600 speciesKlabin has set aside almost hal its holdings to be pr eserved as native orest.

To maximise biodiversity, the c ompany plants pine and eucalyptus trees in

a mosaic pattern. Animals can roam in their natural habitat without being

halted by plantations. More than 600 species o mammals, birds, amphibians

and sh have been identied in studies since 1980, among them almost 50

endangered species such as ocelots and the purple-breasted parrot. These are

now protected in Klabins orests.

Medicines and shared wealthKlabin also runs a phytotherapy programme, blending environmental

preservation and social responsibility. Since 1984 it has generated

approximately 30 medicines used in t he care o employees, their amilies and

the community in Telemaco Borba, Parana. The medicines are derived rom

indigenous plants and are authorised by the government health agency Anvisa.

Klabin promotes the growth o the woodland by oering orestr y incentive

programmes to small and medium-sized arms. The incentives are

economically viable, creating shared wealth and helping armers to stay in the

countryside while preserving nature.

Forest planted in a mosaic ensures thriing wildlie. All the

paperoard that we source rom Klain is FSC certied.

The FSC certication numer is SW-FM/COC-000038.

FORESTRY CASE STUDY

A Brazilian example o responsible orestry

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FORESTRY

Mission without boundaries

ChinaTetra Pak China and WWF supported the Yongan Forest

in achieving FSC certication in 2008 (FSC certication

number is SGS-FM/COC-004777), making it the biggest

such orest in southern China. This brings the total area o

FSC certied orest in the country to more than one million

hectares, among the largest in Asia. WWF honoured us

or our dedicated eorts in advocating and implementing

responsible orest management systems in China.

MexicoTetra Pak Mexico ran an internal environmental competition

in which volunteers organised into teams o ve competed

on reorestation and recycling projects. The winners rom

the Queretaro manuacturing site ran a reorestation

project involving schools.

SpainOur company sponsors WWF/Adena to replant elm groves

around El Campillo lake, part o Madrids south-eastern

regional park and close to our Arganda del Rey actory.

The elm groves were devastated by Dutch elm disease,

contamination and extensive arming. More than 50

employees and relatives volunteered to work with WWF/

Adena, planting some 500 saplings and other species.

The project also includes monitoring and maintenance o

the young trees.

Poland280,000 trees have been planted in cooperation with

several major Polish national parks since 2006. Tetra Pak

Poland used web-based viral marketing to educate people

about renewables and climate. Registered users planted

virtual saplings on a dedicated website. A link was sent

to contacts, encouraging them to visit the virtual orest.

Tetra Pak planted a young tree in the national parks or

each virtual tree on the site.

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WATER

The need toreport morecomprehensivelyOrganisations that choose to certiy and lael their products according to FSC

standards are the ones who understand that responsile orest management

comes rom the conergence o economical easiility, enironmental

appropriateness and social enets. And that only truly open, inclusie and

participatie multi-stakeholder dynamic processes such as FSC can achiee

such a conergence. Tetra Pak sees this clearly and is an example to other

companies worldwide

Andre de Freitas, Executie Director FSC

Products carrying the Forest Stewardship

Council (FSC) label are independently

certied to assure consumers that they

come rom orests managed to meet the

social, economic and ecological needs o

present and uture generations. FSC is an

independent, non-governmental, not-or-

prot organisation established to promote

responsible orest management. It provides standard-setting,

trademark assurance and accreditation services or companies and

organisations. For more inormation on Tetra Paks progress on FSC

product labelling see the Customer section on page 31.

FSC product certifcation

Since 1999, Tetra Pak has reported on direct water consumption.

In the past we have not published a gre at deal o detail, because

our operations are not, in relative terms, water-intensive. We

now realise, however, that this level o reporting on water use

is inadequate. Water is used throughout the supply chain, so we

intend to take a broader perspective. We will analyse the water

usage in the whole direct and indirect value chain o our business.

Our aim is to start reporting more comprehensively in the next

report in 2011.

In 2008 our packaging material plants used 65% o our total

water consumption (see Environmental acts).

1

996ForestStewardshipCouncilA.C

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RENEWAbLES

Working towards a renewable uture

Setting standards or ourselves and our suppliers

Renewable energy and renewable raw materials not only

preserve natures systems, they are a real competitive

strength or business. We use renewables ourselves

and work with our industry partners to increase the

use o responsibly managed renewables. Tetra Pak has,

together with other members o t he Alliance or Beverage

Cartons and the Environment (ACE), made a voluntary

commitment to the European Union, a rst in industry

a aluale contriution

to EU policies

related to orestry, which will ensure third-party veri-

cation o all wood sources or paperboard production

worldwide by 2015, and the ull supply chain by 2018.

EU Commissioner or the Environment Mr. Stavros Dimas

called the commitment "a valuable contribution to EU

policies to oster responsible orest management, combat

illegal logging and develop more sustainable models o

consumption and production".

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PartnershipsWWFWe have cooperated with WWF since 2006, and recently renewed the partner-

ship or another three years. Our partnership is ocused on activities in the

areas o orestry and climate change. Within the scope o both areas we have

agreed activities and commitments that aim to deliver tangible progress and

results. As a result o our eorts and global target to reduce CO2

emissions

we were invited as a partne r to WWF Climate Savers in 2006. In addition we

strengthen our global partnership with local initiatives around the world.

GFTNGlobal Forest and Trade Network is WWF's initiative to eliminate illegal logging

and improve the management o valuable and threatened orests. It acilitates

trade between companies wanting to achieve and support responsible orestry.

Tetra Pak has been a participating member since 2006. These trade links cre-

ate market conditions that help conser ve the worlds orests while providing

economic and social benets or the businesses and people that depend on

them. GFTN has over 350 members worldwide with combined annual sales o

wood and paper products o $62 billion. For more inormation on the GFTN

see www.gtn.panda.org.

HCVRNThe High Conservation Value Resource Network aims to maintain and enhance

critical social and environmental values o orests and other ecosystems world-

wide. Tetra Pak serves on the networks Steer ing Group. The main activities

in 2007/2008 included regional stakeholder events and meetings in South

Arica and Brazil, a workshop at the UN Conerence on Climate Change in

Bali, and the International Union or Conservation o Nature (IUCN) Congress

in Barcelona. The network also expanded the country pages o its website or

Bolivia, Ghana, Gabon, South Arica, Ukraine, Cambodia, Georgia, Paraguay,

Russia and Senegal.

CONTINUOUS IMPROvEMENTS

Systematically reducing

environmental impactsOur purchasing policy dictates that suppliers must meet all applicable legal

requirements including environmental and labour, and that they continuously

improve their environmental perormance. We maintain our commitment to

the United Nations Global Compact principles. We have a Common Agenda

with our suppliers, and each can see how their perormance compares to the

average. Progress is reviewed yearly to ensure continuous improvement.

inormed decisions to drie product deelopment

and innoation in a sustainale direction

We use scientic, transparent Lie Cycle Assessments (LCAs) to analyse the impact

o packaging and processes throughout the chain o supply and consumption.

They enable us to make inormed decisions to drive product development and

innovation in a sustainable direction. They also inorm discussions and negotiations

with suppliers, NGOs, governments, customers, retailers and consumers.

Our product development processes take account o the need to include

environmental criteria and our methodology Design or Environment ensures

systematic integration into development work. Projects must take acc ount o

societal and environmental demands, consumer and customer requirements

and our environmental strategy. We assign environmental targets to each

project and make regular checks that the criteria are being addressed.

Our Corporate Environmental Oce supports the development teams.

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CLIMATE

Reducing CO2 emissions as we grow

The challenges related to climate change have risen to the

top o the worlds agenda. To ensure we are acting properly,

we count on WWFs advice on how to meet societys

expectations o our sustainable practices. As a result, we

systematically audit and invest in improved energy eciency

throughout our operations. We are reducing emissions

while increasing production: today we produce ewer

CO2

emissions than in 2002, while the total production o

packaging material has increased by 32%. These are good

achievements, but we know that continuing to reduce

emissions will be challenging.

Quantiying emissionsWe report emissions in tonnes o CO

2equivalents. Figures

include direct emissions rom burning uels at our sites,

indirect emissions rom electricity generation and heating,and those rom cooling agents and solvents. Our reporting

covers Scopes 1 and 2 o the Greenhouse Gas Protocol, the

most widely used international accounting tool or govern-

ment and business leaders to understand, quantiy and

manage greenhouse gas emissions.

Climate Savers is a partnership between WWF and busi-

nesses, including Tetra Pak, aiming to deliver ambitious

reductions in CO2

emissions. Climate Savers shows how

companies can deliver solutions to climate change and

at the same time save money and drive proitability.

It also provides a platorm to demonstrate cor porate socialresponsibility activities which are also viable business

solutions. Climate Savers will have achieved a total reduc-

tion o 50 million tons by 2010 since the beginning o the

commitments.

Climate goal

Our aim is to achieve 10% reduction o CO2 emissionsin 2010 compared to 2005, in absolute ter ms while we

continue to grow. CO2

emissions are down 12% compared

to 2005. We have made investments earlier than anticipated

and we are in a good position to meet this target i we

continue to drive improvements.

Progress on climate goal(kton CO

2equialents)

Partnership

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CLIMATE

Cutting energy useEnergy use at our sites is the primary source o our green-

house gas emissions. Our major reduction measures are

increased eciency and greater use o renewable energy.

Transport and logistics also account or a signicant part

o our impacts and we work to reduce t hese in a number o

dierent ways.

Efciency measuresWe have systematically reduced the amount o energy

required to produce packaging material. Our plants

improved energy eciency by 3.5% in 2006 and 2.8% in

2007. We achieved these savings by installing improved

heating, cooling and ventilation systems, running equip-

ment more eciently and reducing waste. Forty actories

have audited their operations or energy savings and

developed action plans or urther reduction. In Kenya, or

example, the actory roo was rebuilt to increase natural

lighting and ventilation, cutting electricity use. One third

o the actories have not yet conducted audits or energy

savings.

states that environmental impact should

be considered when selecting mode o

travel. We ask our contract travel agen-

cies to report CO2

emissions associated

with travel, and the majority are able

to do so. We have also instructed the

agencies to oer travel by train as a

preerred alternative whenever pos-sible. We augment these initiatives

at local level: or example, in the

US we introduced Smart Way cer-

tied rentals cars, reducing asso-

ciated emissions by 8%. In France

we began replacing our car feet

with low-carbon models.

Haing actories and customers world-

wide requires complex logistics

Renewable energyWe are also increasing the amount o renewable energy

used. We purchase renewable energy rom companies that

are audited to bring additional renewable energy to the

grid. We also generate our own, or example, through

solar power in Brazil and Italy. A third measure is to

purchase Gold Standard Renewable Energy Certicates

(RECs) approved by WWF. RECs are tradable environmental

commodities certied as being rom an eligible renewable

energy resource.

Our actories in Moerdijk and Heerenveen (the Nether-

lands), Limburg and Berlin (Germany) and Aarhus

(Denmark) are using green power. Those in Dijon

(France), Rubiera (Italy), and Arganda del Ray (Spain)

purchase RECs. Market company oces in China, Sweden,

France, Spain and Japan also purchase renewable energy

or RECs.

Logistics and travelHaving actories and customers worldwide requires com-

plex logistics. We know the relative emissions associated

with air, road and sea transport, and run projects with our

suppliers to track and reduce emissions. Our travel policy

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carton is wood bre, which absorbs water. In a paper

recycling mill, cartons and other used paper are repulped.

The bres absorb water and work ree o plastic and

aluminium, which are easily ltered out. The bre is used

in production o new paper products and, depending

upon markets needs, the plastic and aluminium is also

recovered to make composite products such as roo tiles or

plastic pots, or to replace ossil uels or generation o heat

and electricity.

Why dont we use recycled paper?Inormed by Lie Cycle Assessments, we have learned

that there is not an obvious environmental case or using

recycled paper in our packaging. Our packages must be

durable and light, and are made rom special paperboard

with the necessary strength, stiness and other key at-

tributes. Our paperboard suppliers are based near their

raw material the orest.

RECYCLING

Making a used package useulOur goal is that the cartons we manuacture are recycled

in every country ater use. The challenge is that we do

not control recycling we can only acilitate it by working

with other partners in each country. Nevertheless, there

has been a 64% increase in recycling o our cartons in the

past six years.

In 2001, 13% o the cartons we manuactured wererecycled, and by 2008 this had risen to 18% (or 25.6 bil-

lion cartons). Our original target or 2008 was to see 25%

o our cartons recycled. We did not achieve this, and

acknowledge that it was overambitious, because we cannot

directly control recycling. But we believe it inspired engageme nt

and achievements including the expansion o recycling

to many more countries than previously. Every country

manager is measured on the recycling perormance.

We know that there is much more to do in this area and

we are committed to supporting continued increases in

recycling globally.

We are requently asked i a cartons layered material

makes recycling dicult. About three-quarters o each

a 64% increase in recycling

o our cartons in the

past six years cycles

With every recycling cycle, recycled bres loose strength,

limiting their eectiveness to between ve and eight cycles.

Consequently there will always be a need or a bre market

with a combination o virgin and recycled wood bres.

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RECYCLING

Local action contributes to a global solution

Increasing recycling depends on consumer action, industry

capability and governments enabling recycling through

regulatory rameworks. Only a concerted eort by all

stakeholders will deliver results. Tetra Pak works with

each step o the chain, as these examples show.

In China we partner with recyclers, schools, non-

governmental organizations, collection entities and local

governments to establish a sustainable value chain or

carton packaging collection and recycling. The recycling

volume in 2008 reached nearly 28,000 tonnes and the

recycling rate grew rom almost zero in 2004 to around

10% in 2008.

We partnered with NGOs, paper traders and paper mills in

Egypt to stimulate recycling. In ve years collection went

rom zero to 13% o all cartons sold.

In Japan we work with Marusan-Ai Co., a s oy milk pro-

ducer, and Yamato Transport Co. We developed Marusan-

Tetra Pak Recycle Service a collection system enabling

consumers to recycle cartons by mail or ree. The cartons

are shipped to Shin-ei Paper Mg Co, a paper manuacturer,

or recycling into sanitary paper such as tissues.

In Thailand we co-sponsored a nationwide carton collection

and recycling campaign with a popular T V programme.

More than 21 million beverage cartons were recycled into

notebooks and donated to schools along with supporting

educational material.

In the UK we collaborate with local authorities, collectors

and NGOs. We acilitate collection, provide consumer

inormation and help identiy end markets. As a result,

more than 85% o UK local authorities provide access to

beverage carton recycling.

And in the European Union car tons have been classied as

a single grade o recoverable paper, acilitating the trade

o used beverage cartons as a commodity. The recycling

rate or beverage cartons in Europe reached 32% in 2007,

and another 33% was used to generate energy.

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RECYCLING

How we do it

We built recyclinginto perormance measuresTetra Pak managers perormance is aected by the

markets recycling development against yearly targets.

This ensures that the whole company ocuses on inding

local solutions.

into our operations and those o our customersWe recycle our own manuacturing waste and we strive to

support our customers initiatives to recycle their production

waste everywhere.

and into our design processRecyclability is a core perormance measure at each stage

o innovation and product development.

We get involved intechnology developmentOur company works in collaboration with scientiic

institutions and other businesses to develop locally relevant

recycling technologies. These may be highly technical or

more simple, like small mills or recovering paper bre.

We work with end-usersPaper mills need to see the value o recycling beverage

cartons, particularly in countries with less experience o

this. Our engineers work with mills worldwide, visiting

about 45 each year to run tests.

The valueCarton bres are o high quality because they are strong

and airly clean rom inks. This makes recycled cartons

well suited to a number o uses, mainly in the areas o

secondary packaging and tissue papers.

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Environmental actsCO

2emissions Global Warming Potential (GWP) Greenhouse gas emissions (GWP) by operation, 2008Greenhouse gas emissions by source (GWP), 2008

Energy use and production growth in carton packaging

material production

Energy efciency in Packaging material production

Energy use by operation 2008

Energy use

Support serices

Market companies

Processing equipment and packa-ging machines production

Closures, straws andlm production

Market companies

Support serices

Preocessing equipment andpackaging machines production

Closures, straws, strips andlm production

Carton packagingmaterial production

Rerigerants

District heating

Organic solertsLPG

Natural gas

Electricity

2005 19%

2006 21%

2007 25%

2008 33%

2005 77%

2006 76%

2007 80%

2008 97%

Chain-o-Custody certifed paperboard supply (FSC and equal level)FSC certifed wood fbres in paperboard supply


Greenhouse gas Emissions:

Forestry:

Energy use:

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Ozone Depleting Substances emissions

Cartons in Recycled tonnesRecycling cartons

Water consumption Water consumption sources

Volitile Organic Compounds emissions in packaging material production Volitile Organic Compounds emissions in packaging material production

Market companies

Support serices

Closures, straws,strips and lm production

Preocessing equipmentand packaging machines

production


Recycling o used cartons:

VOC and ODP emissions:

Water:

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PEOPLE

An engaging approachWe are proud o our strong values, which we have codied and in which we train our sta. Our emphasis

is on the long-term which means we care about our actions in the context o building enduring relationships.

We believe our value will only increase i we add value to others. This is why we are active in development,

support relief efforts, further education and health programmes and invest substantially in our employees.

We aim to be a preerred business partner, a preerred employer, a preerred social par tner, and a

riend in the community.


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CUSTOMERS

Increasing our value as a supplierWe continually ocus on understanding and meeting

customer needs. Tetra Pak provides packaging innovation

to attract consumers, and innovations in equipment and

automation to increase eciency and decrease operating

costs. We also oer service programmes to maximise oper-

ating eciency and initiatives to enhance the value o our

customers brands. We address water use, energy demands

and greenhouse gas emissions and assess progress both or

new lines and or customer lines in operation.

Reducing operating costsWe work to help cut customers operating costs throughmodiying existing machines and developing more ecient

equipment. We have run a number o Operational Cost

Reduction (OCR) projects where we help customers make

signicant savings. Newer, more automated machines use

less energy and water. For example, we are introducing ully

integrated packaging lines that reduce energy and water

consumption by up to 50% (Tetra Pak A3/Speed iLine).

Our aseptic dairy production line has the lowest product

losses in the dair y industry, saving milk and reducing

efuent. One o our customers, Farag Amer, CEO and

Chairman o Faragalla Group in Egypt, comments: Tetra

Lactenso Aseptic has had a huge impact on reducing

operating costs in my plant. It increase d availability to

95% through more ecient technology and reduced CIP

(Cleaning in Place) detergent use by 20%. It has also,

minimised energy consumption due to a high degree o

energy recovery and reduced product losses.

Tetra Pak Processing Systems was a key partner in the

development o a state-o-the-art greeneld dairy or

Luxlait Association Agricole at Roost in Luxembourg.

Industrial Director Gerard Reslinger says: The impact o

environmental values on costs is becoming ever greater,

because the cost o energy is increasing, as is the price tag

on waste processing and disposal. It is absolutely neces-

sary to take this into account when calculating the cost of

our products.

Customer satisaction surveysFeedback rom our customers helps drive continuous

improvement. Surveys are an important tool in helping us

to understand how to deliver what our customers need.

Our aseptic dairy production line

has the lowest product losses in

the dairy industry

A robust process addresses issues that cross organisational

boundaries and solves them to the customers satisaction.

Constant customer serviceChange in personnel and handovers can be challenging.

We store inormation online so that new personnel can

ollow through seamlessly. A survey by Sc holl Consulting,

an independent US company, cited the system as best

practice in business relevance and IT maturity.

We reward employees on the basis o team as well asindividual perormance. Key Account and Technical

Service teams are linked to meet customers operational

and strategic needs. Coca-Colas supply chain consultant,

Jim Goldman, says: You get the inormation you need in

a hurry, and most importantly, you can trust what they

say. You know the guys at Tetra Pak arent ever going to

sell you something you dont need. We know we can go

to either o them [Key Account or Technical Service] and

together well be able to work out a solution. Its a pretty

seamless operation.

We are raising the prole o customer service by giving

an award to the team that demonstrates the greatest

customer ocus.

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CUSTOMERS

Protecting customers brands

Quality Assurance Management (QAM)Our QAM standards are built on our microbiologists and

ood technologists knowledge and an understanding o our

customer operations that takes years acquire. Members o

our team solve problems at our customers plants. As ood

saety is so critical or our customers, we str ive or the

highest possible QAM standards and our team members

perormance is independently certied. Certication com-

prises written tests and assessments o perormance. A QAM

assessor carries out the procedure and covers every aspect

o production as well as service products. The target is or all

QAM members to be certied by 2010. Today a majority o

our clusters have initiated the certication process.

Shredding to protectA strict policy to shred all waste packaging material beore

re-sale ensures that any customer branding appearing on,

or example, the ends o rolls is protected. Such waste is

oten recycled and used in the manuacture o other products.

In all cases, the waste material is either shredded or

recycled in such a way that the customer brand cannot be

misused. This process is closely monitored and audited by

a third party to ensure compliance.

Environmental communicationsCommunicating transparently about the eects o our

business on the environment contributes to building and

enhancing both our reputation and that o our customers.

Feedback rom customers shows that they are increasingly

satised with our actions in this area.

Some examples o our activities include:

Tetra Pak Belgium ran a comprehensive series o work-

shops on perormance and lie cycle analysis or custom-

ers, and is in the process o creating an exhibit showing

the environmental benets o cartons in a new actory

opened by one customer, Luxlait. Environmental training

workshops or customers in Greece and Cyprus created acommon language or joint communications campaigns.

In Italy we ran an environmental campaign calling upon

consumers to recycle cartons. We organise training world-

wide with sales, marketing and purchasing proessionals

and management. A wide range o topics includes recy-

cling, the Forest Stewardship Council (FSC) certication

process, how to market products in line with our Green

Claims Guidelines and international norms and how to

ensure launches are well thought through, credible and

eective. The Green Claims Guidelines are available to all

employees on our intranet and are actively communicated

to all marketing and communications people.

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Enhancing our customers' value to their consumers

CASE STUDY

Joint environmentcommunication with retailerDuring EU Sustainable Energy Week (EUSEW) 2009, Tetra Pak and leading retailer Carreour

launched an environmental awareness campaign in 600 o the companys hypermarkets across France,

Belgium, Italy and Spain, with the suppor t o the EU Commission. This was a practical example o the

role o packaging in raising consumers awareness o ways to tackle climate c hange, such as saving

energy and using renewable resources.

FSC certifcation on cartonsThe FSC Mixed Sources label printed on each carton

provides assurance to consumers that the packaging

material comes rom responsibly managed orests

and other controlled sources.. The worlds rst FSC

labelled ood and liquid carton was launched in 2007

and we are rapidly expanding this initiative. In 20 08,

we delivered more than 200 million FSC certied

packages. All Tetra Recart packages and Brazilian

packages are today FSC certied and can, i our

customers choose, be labelled.

Eco Leatrademark in JapanTogether with the customer

Nisshin Kyorin Seiyaku, we

launched the rst carton

package to carry the

Japanese Governments Eco

Lea mark. Eco Lea denotes

that the manuacturer

discloses environmental

impact data rom raw materials to disposal in line

with the requirements o the Japan Environmental

Management Association or Industry (JEMAI). The

mark guarantees traceability and allows consumers

to access the data associated with the package at a

dedicated website.

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PEOPLE

Food or DevelopmentOur history in sustainable development goes back to the

1960s when Ruben Rausing began to ocus on the lac k oprotein-rich nutrition in the third world ater spending time

in Pakistan and observing surplus ood being destroyed in

the developed world. He was aware o the importance o

protein and amino acids or the development o the brain

in oetuses and in children up to the age o eight, and that

malnourished children may not develop their ull intellec-

tual potential. His solution: to pack sterile milk in aseptic

packages while stimulating the development o dairy

processing in developing countries, in parallel to growing

local milk production.

Some o the rst school milk programmes started in the

1960s in countries such as Mexico and Japan. Today Tetra

Pak is involved in school eeding in more than 50 countries

beneting 50 million children, o which 29 million are in

developing economies.

The Tetra Pak value chain modelIn 2000 we set up the Food or Development Oce (FDO)

to make available Tetra Paks experience and provide

active and practical support to implement school eedingand nutrition programmes linked to agricultural and dairy

development. We work in partnership with governments,

UN agencies, national development agencies, NGOs and

our local customers, to initiate, develop and support

sustainable agricultural development, school milk and

other nutrition initiatives. This builds markets or our

processing and packaging products, while g rowing local

industries and supporting communities.

These partnerships include eeding initiatives throughout

the world (Bangladesh, China, Colombia, the Dominican

Republic, Egypt, Guatemala, Haiti, India, Iran, Japan,

Kazakhstan, Kenya, Mexico, Thailand, the US and

Vietnam, and others).

The goal is that these projects are long-term and sustainable;

they are ocused on the value chain, where the needs and

requirements o each sector along the chain are addressed,

rom armers to processors, retailers, distributors and

consumers.

Strong public-private partnershipsTetra Pak believes that the most powerul tool or

economic development is an integrated public-private

partnership. Our role is to support local entrepreneurs as

they start ood processing businesses and to work with the

public sector in developing agriculture, local markets and

programmes to eed school-children. Strong partnerships

between the private and the public sector can help buildsustainable economic development. Our long experience

and large network allows us to work with partners to

speed up and enhance integrated projects.

Base or sustainable business

Our activities include training armers in proper eeding, milk

handling and cooling, training processors in high quality

procedures, and ensuring regular testing and quality

control. We stimulate demand and support distribution,

provide retailers and sellers with educational material on

health and ood saety and communicate with schools and

consumers about ood security, nutrition and sae handling

o the products. We provide assessments o ongoing and

new school eeding programmes so that best practices and

knowledge can be shared.

By strengthening the link between milk armers and dairy

processors, by helping to develop markets, communicating

with consumers about ood security and supporting school

milk programmes, we help create a base or sustainable

economic and social development.

New productsWe work with partners on t he development o nutritious

drinks based on locally abundant crops and designed to

meet nutritional needs o local children. In the uture

we intend to work with partners to develop products or

severely malnourished children.

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CASE STUDY

Food or Development inCentral America and Haiti

Low weight at birth, anemia and

micronutrient deciency are

signicant problems aced by a

large number o Latin American

children, according to UNICEF

and regional Ministries o Health.

We have partnered with the

INCAP (Nutrition Institute o

Central America & Panama ) anddeveloped a ready-to-drink ver-

sion o their Incaparina nutritional cereal beverage that

is comprised o maize and soy protein ortied with iron,

vitamins, and minerals. The INCAP is a co-operation

between regional organisations including Ministries o

Health and PHO, the regional oce o the World Health

Organisation. Incaparina was originally developed in

powder orm. The ready-to-drink version, produced

by our local customer, oers a sae, easily distributed

alternative or rural areas with sub-standard hygiene and

lack o potable water, and ensures children consume the

recommended quantity o nutrients. It comes in several

favours that children enjoy. The product has now been

launched commercially in Guatemala targeting children,

lactating mothers, and the elderly.

In Haiti, we are partner s in two school milk programmes

or school children in poor urban and rural areas in Cite

Soleil, Bel Air and Plateau Central. The largest programme

is unded by the World Banks Education or All Fast Track

Initiative and managed by Catholic Relie Services and

Bureau de Nutrition et Dveloppement. The UHT ortied

favoured milk is produced and delivered by our local

dairy customer. The programmes have grown to cover

50,000 children.

Example o continuing growth inschool eedingIn the past year sc hool milk pilot programmes began

in Morocco and Kenya in partnership wit h local NGOs,

governments and customers. The Moroccan initiative

targets nearly 4,000 students in 37 primary schools in two

regions with ortied milk. An expanding p rogramme

currently covers more than 125,000 children in Mumbai,

India, under the management o the local government.

Programmes are expanding in China, Iran and Russia.

In China a consistent source o sae and healthy milk has

been established. Iran now has one o the largest school

milk programmes in the world. And in Russia, government

commitment has resulted in a Moscow plant dedicated to

producing school milk.

In Colomia we hae een inoled in a school milk programme or oer1.3 million pre school children. New ortied solutions or primary schoolchildren are under deelopment.

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Partnerships

GCNFWe are represented on the board o the Global Child Nutrition Foundation,

the sister organisation to the School Nutrition Association (SNA), whose

activities began in 1946. Building on the long experience o the SNA, the

GCNF was created in 2006 with a mission to expand opportunities or the

world's children to receive adequate nutrition or lear ning and achieving

their potential. It promotes child nutrition inter nationally through sustain-

able school and community-based eeding programmes.

GAINGlobal Alliance or Improved Nutrition works to improve the nutritional

status o one billion people to save lives and reduce disease, improve well

being, enjoyment and productivity, and reduce poverty and stimulate eco-

nomic growth. It ocuses on reducing micronutrient deciencies among target

groups by increasing regular consumption o ortied oods.

PIBFThe Palestine International Business Forum is a Swedish-Palestinian-Israeli

initiative set up in 2001. It engages in dialogue and cooperation in Isr ael and

Palestine, aiming to acilitate mutually benecial business models and meas-ures to help the Palestinian private sector create jobs, transer eexpertise and

increase trade. A special ocus is on Palestinian agriculture, in particular the

dairy sectors ability to ull local needs. We are a ounding member o PIBF

and partners in a dairy development and school milk initiative in the region.

There is a strong commitment rom the goernment o Egypt to proidemilk to pre and primary school children.

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EMPLOYEES

Shared ExpectationsTetra Pak was ounded on the business idea that the value

o a package shall exceed its costs. Our people idea is t hat:

the value of peoples commitment and competence shall

exceed their costs, and

the value of working for Tetra Pak shall exceed the

investment each person makes in the company.

This means that Tetra Pak is a demanding and rewarding

company to work or. We expect every employee to:

add value to the company

take responsibility for the development of their own

competence, supported by their manager

work in partnership with colleagues in all parts of thecompany

be accountable for their actions.

A Tetra Pak employee can expect to:

receive fair and honest feedback on performance and

potential

develop competences to secure the companys long-term

competitiveness and their own versatility

have a working environment in which he/she is motivated,

engaged and actively contributing to the achievement o

business and individual objectives.

We use a Balanced Score Card (BSC) to link our strategic

priorities to each managers goals, review and remuneration.

Our Capability Council is responsible or creating and

implementing processes or developing and managing people,

including training. Using eedback rom customers and

sta, we have identied our key capabilities to ensure

success in the strategy implementation: Customer

Understanding; Total Quality; Leadership; and Project

Management. Each area has a governance orum including

at least one member o t he Capability Council.

We estimate that we provide more than 100,000 days o

training a year to sta, and average o appr oximately ve

days or each employee. Target areas range rom technical

service to leadership, covering elements as diverse as

environment, nance, project management, innovation

and marketing. The Tetra Pak Academy, ocusing on stra-

tegic leadership training, has now been in operation or 10years, and has trained 1,475 people in 203 programmes

which led to 88 business projects. Most attendees have

undertaken more than our programmes.

Employee engagementEvery year we survey all employees on their experience o

working with the company including the extent to which

they live the core values, leadership, and motivation. In

2008 we began a partnership with the international pro-

vider o employee surveys, Towers Perrin, which enables

us to benchmark survey ndings with other companies

in the manuacturing sector and thus understand our

strengths as well as ar eas or improvements. This required

us to change many o the questions we use d to ask in order

to make results comparable with other companies. We

gained comparability externally but lost comparability

with our own past scores.

In 2008, 87% o Tetra Pak employees responded to the

survey. We outperormed the benchmark o 81% positive

responses among global manuacturing companies with a

90% score.

Career Development and Customer Orientation were rated

the highest categories. Perormance Management and

Team Working scored just above the benchmark and we

will work on improving these areas in 2009.

The importance o engagement surveys is in the dialogue

that the process stimulates between managers and em-

ployees and the improvements that ollow. We discoveredthat people would like more eedback on their perorm-

ance, resulting in a pilot project or a mid-year review,

integrated into our e-HR system to maintain transparency.

I the pilot is successul it will be rolled out throughout the

company in 2010.

Labour management relationshipsSome 30% o our employees are covered by collective bar-

gaining agreements. Most are represe nted on works coun-

cils and health, saety and environmental committees at our

operating sites. We also have a European Inormation and

Consultation Council (Tetra Pak European Committee),

in line with the European Directive 92/45/EC. TPEC

meets yearly, and ocuses on the business issues acing the

company.

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EMPLOYEES

The task ahead: zero workplace injuries and illnesses

Our goal is to eliminate all workplace-related injuries and

illnesses and to ensure the long-term wellbeing of employees

(see People acts). We have incorporated health and saety

into our Corporate Governance policies.

Local companies are also responsible or providing a sae

and healthy working environment. Each one has the

fexibility to take local regulation into account. We have

identied musculoskeletal damage, noise exposure, dustexposure, ergonomics, liting and stress as the main oc-

cupational health issues.

Diversity makes us a better companyOur ambition is to recruit, employ and promote people

purely on qualications and abilities. We know that there

are strong cultural elements in play when we seek to dene

and recognise abilities. We are managing this through a

clear policy that there should be no discrimination based

on religion, social standing, ethnic origin, gender, physical

abilities, sexual orientation, age or political belie.

We believe that diversity brings us a better understanding

o our customers and consumers needs and enriches our

problem-solving capabilities. We have a zero tolerance

policy on discrimination and harassment at work.

Accident and IncidentManagementWe have a solid process or managing

accidents. Each unit has a trained A&I

ocer who is alerted as soon as an

event occurs. The incident is logged,

classied and reported to a core team

who identiy the cause and develop

relevant communications. The process

applies to equipment, which may lead

to an event at a customer s ite, or pack-

aging and ood, where consumer saety

is involved.

Events are classied as incidents,

emergencies or crisis. Representatives

o packaging and processing systems are involved, as are

Legal, Communications and Food Saety. The lessons are

captured and used to inorm our development and engi-neering work. A complete guide to process and responsi-

bilities is available to all employees on our intranet.

Acting against child labourWe clearly state that we do not engage, or support the use

o, child labour. We check our operations against these

standards on a regular basis in our internal audit programmes

(set out under Corporate Governance). We have had noincidents o using child labour and our suppliers must

veriy that they do not use child labour.

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COMMUNITY

Investing in our business and communitiesOur owners share the enlightened view o the ounder, their

grandather, that business is also a driver or social progress.

Our business activities are designed to deliver value not only

to this company, but also to stakeholders along the chain

o supply and consumption. As a result, during the course

o conducting our business we attempt to help alleviate

malnutrition and its eects on childrens development;

we promote economic development in markets where our

products are sold: and we provide health education.

We also invest strongly in our business, as shown by the

examples below rom 2007/2008:

30 million was invested in leading-edge printing and

laminating technologies at our packaging materials p lant

in Monte Mor, Brazil, to meet growing demand in the

dairy and beverage industry.

60 million in a state-o-the-art packaging material man-

uacturing plant in Hohhot, China, to support the countrys

growing dairy and beverage industry. We signed a Letter

o Intent with the local authorities in Inner Mongolia to

purchase energy generated by wind power. This represents

a reduction o more than 19,000 tonnes o CO2.

We made a 26 million investment in new printing and

laminating technologies in our packaging materials plant

in Rubiera, Italy. A urther 15 million went to our Modena

research and development, test and assembly acility.

We began building a technically advanced packaging

material actory in Pakistan with an expected investment

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o 90 million.

We constructed a new converting plant near Moscow,

Russia, an investment o 100 million, to support growth

in Russia and Eastern Europe.

Factory closureIn 2007 we closed a actor y in Yoju, South Korea, as it

was economically unsustainable. In line with our commit-

ment to treating our people and their amilies with the

utmost respect, we oered aected employees a signi-

cantly more generous redundancy package than required

under South Korean employment law. Eighty-eight o the

ninety-six permanent employees accepted our oer, which

included remuneration according to length o service,

our months o outplacement services and counselling.

The union sought to have the plant reopene d, and sent

a delegation to meet top management in Europe. It later

agreed to the closure and terms, but eight workers reused

to accept the agreement.

Strategic economic developmentIn India, Pakistan, Egypt and Slovenia, among other coun-

tries, milk in open containers has been identied as a pub-

lic health hazard. Tetra Pak is working on integrating the

milk supply chain in order to help overcome issues such as

unsuitable environments that acilitate disease, dilution

and the addition o sometimes dangerous preservatives. In

Pakistan and Egypt, we are piloting a dair y hub concept.

The hub, owned by the dairy processor, helps organise

smallholders into producer groups and contracts to buy

their surplus milk. Loyalty to the dairy hub is created

through regular bonus payments, education and agri-

services such as veterinarian support and eed. This helps

smallholdings grow, improves the quality and quantity o

milk and helps ormalise the dair y industry. We will evalu-

ate the success o these pilots during the next ew years.

Social responsibility in ItalyIn Italy we have been awarded the SA8000 cer ticate or

social accountability rom Det Norske Veritas. This is an

international standard or social responsibility involving

the whole value chain. We have been particularly proactive

in supporting womens proessional development; envi-

ronmental monitoring and improvement; and rolling out

programmes or school education and emergencies.

Philanthropy in line with our businessOur Corporate Mission states that We believe in respon-

sible industry leadership, creating proitable growth in

harmony with environmental sustainability and good

corporate citizenship, so it makes sense that our phil-

anthropic activities complement this. As a result, we have

been involved in a number o relie eorts. Below are some

examples rom the past two years:

We worked with the International Organization on

Migration in Zimbabwe to run a cholera awareness and

prevention programme, donating 50,000 litres o water.

Each package carried recommendations or preventing

the diseases spread.

Following the Sichuan earthquake, we donated milk,

other beverages, tents and raincoats, reaching 550,000

people (read more on page 42).

Our Board created a und to support people aected by

the Sichuan eart hquake and Cyclone Nargis in Myanmar.

The und was used in cooperation with local authorities

and international aid organisations.

In Haiti we donated 36,000 packages o favoured milk to

charities that organised relie eorts ater tropical storms

devastated the island.

We worked with the Brazilian artist Romero Britto and

ONE, a global advocacy organisation ghting extreme pov-

erty and preventable disease, and the Brazil Foundation

to raise unds or clean water in Brazil. We launched a

limited edition coconut water drink in Britto-designed

cartons. The packs were sold in the US and a portion o

revenue supported projects to bring clean drinking water

to 1,200 people in the semi-arid states o Pernambuco

and Paraiba.

We donated a truckload o milk to the Red Cross Ukraine

ater foods destroyed 40,000 houses and 700 kilometres

o road in the west o t he country.

Education to improve healthWe actively educate children, parents and media in health,

ood saety and environmental practices. In Thailand

we teamed up with the Thai Osteoporosis Foundation to

increase awareness about osteoporosis. The disease is the

usiness is a drier

or social progress

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sixth leading cause o deat h among women in Thailand.

We provided prevention inormation including recipes,

exercise demonstrations and ree bone mass density

checks, as well as recommendations on sel-care to those

already diagnosed. Studies in Germany demonstrated that

ewer than 50% o young people consumed t heir recom-

mended intake o milk and dairy products and were grow-

ing up with an increased risk o osteoporosis. Our German

company runs a three-pronged programme sponsor-

ing a competition, an annual Run against Osteoporosis

in partnership with the National Initiative against

Osteoporosis, and a school milk programme entitled Joe

Clever.

The Food and Agriculture Organisation o the United

Nations (FAO) estimates that economic losses in the dair y

sector in East Arica and the Near East due to spoilage

and waste could be US$90 million per year. We work with

FAO, local producers and government agencies to reduce

losses during production, transport and sales by training

business partners throughout the dairy value chain.To build awareness o environmental issues in Egypt,

our local company launched the Green Media Awards

together with the Ministr y o Environment and USAID, the

American government humanitarian agency.

increase awareness

aout osteoporosis

We partnered with Indonesias

Department o Health and local

nutritionists to provide seminars

or mothers and children at com-

munity health centers.

Our work hasbeen recognisedTetra Pak China received the

China Charity Award 2008 or

the Most Charitable Foreign-

Invested Enterprises; won ve

environmental awards rom

WWF, Peoples Daily Newspaper;

and three business journals;

Tetra Pak Poland has receivedrewards in a consumer and

customer awards programme,

the Consumer Lauren 2008 ; and Tetra Pak Vietnam has

or the third time been selected or the Saigon Times

Top 40 awards ocusing particularly on corporate social

responsibility.

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CASE STUDY

Disaster Relie Programs in China

When the earthquake struck the Sichuan province in

China last year, the solidarity, courage and determination

o Chinese people was evident. Given the scope o the

disaster and that our business is to support the well-being

o people all over the world we wanted to contr ibute our

part to the relie and reconstruction eorts. We believe

that ghting against natural disasters should be a shared

responsibility o global citizens everywhere.

Within days o the earthquake our Board created o a special

Disaster Relie und o USD 15 million (or RMB 102.8

million) to assist emergency relie and post-quake recon-

struction in the S ichuan province. We have ocused both

on specic needs o individual groups o people aected,

as well as the long-term assistance that our contribution

can provide.

We worked with the Jet Li One Foundation o Red Cross

China to purchase RMB 20 million worth o emergency

oods, including milk products, or local people in 39

townships and villages, covering 80% o the earthquake-

stricken areas and more than 550,000 people; and to pur-

chase RMB 6 million worth o emergency living materials

including tents and rain coats.

Our long term commitment means that the program is

urther expanded in 2009; including sponsoring 10,000

high school students to continue their high school studies,

supporting to set up 100 village clinics to help restore rural

medical systems, supporting training and redeployment

programs or disabled people, up-grading pastures or local

armers to resume dairy arming and supporting panda

habitat recovery.

Personal engagementThere was also engagement on a very individual level.

Immediately ater eart hquake Tetra Pak China employees

rom dierent oces across the country started to make

cash donation and individual donation commitments to

support the emergency relie eorts. Within 4 days, the

total donation rom Tetra Pak employees reached RMB

360,000.

Focus on childrens needsIn September 2008, RMB 8 million was allocated and

we worked with the China Children and Teenagers

Foundation (CCTF) to open 120 Care Islands in primary

schools and kindergartens as recreational space or children.

Designed to help the kids grow in a healthy and happy

environment, the Care Islands are equipped with books,

recreational and sports acilities, where psychologists regularly

oer psychological therapies or children.

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Food or Development

2004 2006 2008 Growth 2004-2008

Numbers o servings - Global 4874 5142 5668 +16%

Numbers o servings - Developing Countries 1770 1886 2762 +56%

Number o children - Global 37,6 43,1 50 +33%

Number o children - Developing Countries 13,4 17 29 +216%

People acts

Accidents in converting 2008Total

Minor accidents* 144

Serious accidents** 80

Extraord inary accid ents *** 0

Total 224

* Minor Accidents: Injuries that require medical adice/attention utlead to less than 1 working day o lost time

** Serious Accidents: Injuries that require medical adice/treatmentthat lead to temporary disaility with more than 1 day lost time.

*** Extraordinarie Accidents: Any injury causing death, loss o odypart or permanent disaility.

Customer Satisaction survey

2005 2006 2007 2008

Truly Loyal 67% 77% 82% 82%

Target 78% 81%

(1413 respondents in 42 markets.The surey is done at least eery two years thereore in any gien yearthere may e more or ewer countries and respondents.)

(All gures in millions)

Employee Age Distribution

School Feeding Programmes

Employee Distribution

Case study

Employee AccidentsCustomers

Living the Policies

Tetra Pak has implemented a programme to coer all employees

gloally - LivE Tetra Pak that aims to ensure eeryone understands

and has opportunities to discuss our ision, Core values and usiness

strategy, as well as how they aect and direct our daily work.

Manager distribution

Non EU and non European managers do we have at Tetra Pak? Total

Non EU Managers 1583 (55,6%)

Non European Managers 1358 (47,7%)

Number o middle & top managers with non

Nordic/EU/European nationality? Total

Non Swedish middle & top managers 1041 (64,7%)

Non Nordic middle & top managers 994 (61,8%)

Non EU middle & top managers 562 (35%)

Non European middle & top managers 514 (32%)

Number o non EU/European top managers Total

Non Swedish top managers 89 (67,4%)

Non EU top managers 40(30,3%)

Non European top managers 31 (23,5%)

Female top managers 11 (8,3%)

Employee EngagementSurvey Results(in partnership with Towers Perrin 2008)

Total numer o respondents 18,143

Oerall Satisaction Score 90 (enchmark target was 81)

Work lie alance score* 69 compared to enchmark o 64

* Question: My work schedule allows sucient fexiility to meet my

personal/amily needs.

Areas o highest score compared to benchmark

Customer Orientat ion 84 compared to enchmark 81

Q ua li ty / E ci en cy 8 4 c om pa re d t o en ch ma rk 82

Career Deelopment 73 compared to enchmark 72

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TETRA PAK

Who we areWe are a amily-owned company established in 1951 with more than 20,000 employees

worldwide. We are privately held and report our operating costs, retained earnings, and

other nancial gures to our Board. While we are particularly known or our milk and

juice packaging, we are a provider o ood processing, distribution and packaging material

and equipment or products as diverse as cooked vegetables, cheese and dry oods. We

also oer services ranging rom actory planning, control and monitoring sotware, to

training, design, cost-optimisation and marketing assistance.

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TETRA PAK

Corporate GovernanceTetra Paks Corporate Governance Framework denes how

the company and its employees must behave and conduct

business in all our operations. The Framework is undamentalto both protecting and creating value or a sustainable and

successul business.

The Framework is developed and mandated by t he Board

and Tetra Paks Global Leadership Team (GLT) and consists

o our Core Values, Code o Business Conduct, Policies,

Procedures and Guidelines. It is designed to meet the prin-

ciples in the Combined Code o Corporate Governance

(the European/British version o Sarbanes-Oxley) and

our internally dened requirements. While Policies and

Procedures are mandatory, Guidelines are to be ollowed

unless there is an explicit reason to the contrary. Each

Policy and Procedure is owned by a member o the GLT.

Changes or updates to any Cor porate Governance

Framework matters, policies or procedures are decided

by a Corporate Governance Council and supported by a

Corporate Governance Oce.

The documents and supporting inormation within the

Corporate Governance Framework are published on our

intranet and are available to all employees.

Our Core Values dene our companys characteristics and

guide how people work with each other as well as how

we conduct business and behave towards our customers,

suppliers and stakeholders. In 2008 our Core Values were

rereshed to mirror a ast-changing business reality and

world. Employee research has shown that our Core Values

are well known, appreciated and underpin all our activities

throughout the company.

Internal controls and trainingThe Board assures conormance to the Corporate

Governance Framework through a yearly signed

Management Declaration rom our CEO and the GLT.

They in turn veriy conormance through signed Corporate

Governance Conrmations and an annual Control Sel

Assessment (CSA), submitted by the head o each market

and business area. The CSA covers the entire Corporate

Governance Framework, includes detailed questions

and allows or comments and suggestions. In addition,

Tetra Lavals internal audit team veries adherence to t he

Corporate Governance Framework, its policies and proce-

dures, as well as the accuracy o the CSAs.

Market company and operating unit employees are

also trained and supported in making Core Values and

Corporate Governance part o our strategy and daily

operations. Employees may provide input and eedback to

the Corporate Governance Oce via e-mail or telephone

available on the intranet.

Developments in 2007/2008The Whistle Blowing procedure was ully implemented.

This procedure encourages employees to report any

inormation on a breach o the Corporate Governance

Framework, or any other serious inappropriate behaviour,

to their line manager, the Head o Corporate Governance,

or to the Head o Internal Audit. The Whistle Blowing

procedure also explicitly stipulates that no disciplinary

action may be taken against an individual or an act o

whistle blowing made in good aith. Compliance with and

implementation o this procedure is restricted to countries

where applicable laws do not prohibit or limit Whistle

Blowing.

A new Food Saety Policy was approved and a ood saety

orum is currently working on dening and implementing

the associated ramework o controls.

The Recruitment Policy has been revised and strengthened

to, or example, promote and reinorce diversity and reit-

erate non-discrimination in line with our Code o Conduct.

Corporate Governance Framework

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VisionWe commit to making ood sae and available,

everywhere.

MissionWe work or and with our customers to provide pre-

erred processing and packaging s olutions or ood.

We apply our commitment to innovation, our under-

standing o consumer needs and our relationships

with suppliers to deliver these solutions, wherever

and whenever ood is

consumed.

We believe in

responsible in-

dustry leadership,

creating protable

growth in harmony

with environmen-

tal sustainability

and good corporate

citizenship.

Core Values

Customer ocus and Long-term viewWe ensure that we add value and inspire our customers because we

recognise that they c ome to us by choice. We dare to lead wit h a ocus

beyond tomorrow and take opportunities to learn and grow.

Quality and InnovationWe do not compromise on quality. We relentlessly drive or better, t-

or-purpose solutions and breakthrough innovations.

Partnership and FunWe respect and rely on one another and all our stakeholders or

exceptional results. We enjoy working together and celebrating our

achievements.

Freedom and ResponsibilityWe have the reedom to take initiative and act

decisively in the best interests o Tetra Pak

and our customers. We t ake responsibility

or our actions and contribute to the

communities in which we operate.


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TETRA PAK

What we doTetra Pak is today the only international company able to

provide integrated processing, packaging, and distribution

solutions or ood. Our customers are dairy, ruit juice and

other drinks companies, as well as an increasing number

o ood manuacturers.

Market leadership in processingOur Processing Systems divisions production solutions

and services enable ood manuacturers to achieve superior

production. We aim to become the preerred provider o

production solutions and services to our customers, and

ocus on ve ood categories; dairy, cheese, beverage,

prepared ood and ice cream.

We guarantee perormance and oer support throughout

the lietime o our processing equipment. Our deep under-

standing o our customers business needs, our technical

capability and our strong local presence has taken us to

market leadership.

Tetra Pak participates in projects large and small, all over

the world, through every stage rom conceptual design

to start-up and service. This includes integrated plant

automation systems with product-tracing eatures, as well

as complete plant engineering services that ensure ood

saety.

Most ood processes require custom-designed equipment

or specic tasks. Tetra Pak has a unique knowledge base

that allows us to design and manuacture key equipment,

such as homogenisers, mixing and standardisation units,

heat exchangers, system and plant components.

Intelligent packagingWhile it is easy to t hink o Tetra Pak as a beverage carton

company, this underestimates the subtlety o keeping a

diverse set o oods sae and available in myriad condi-

tions. We oer eleven basic packaging types in numer-

ous variations. One example is packages that keep acidic

products - which usually degrade materials rapidly - resh

without preservatives. But what is good or tomato sauce

or wine may not suit a delicate milk product. And a prod-

uct designed or a North American distribution system

large trucks covering long distances with pallets stacked

high may not meet the needs o distribution by motor-

cycle in rural south-east Asia. We design each product to

meet the demands o particular consumers and customers,

in specic circumstances.

Packaging linesWe manuacture and sell 17 purpose-built lines that orm,

ll and seal packaging. We also manuacture or provide

the caps, straws and other accessory units. Finally, we

provide the distribution equipment to ensure our custom-

ers have complete, ecient production lines.

a unique knowledge ase

that allows us to design and

manuacture

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Packaging machines in operation 2009 9 115

Packaging machines deliered in 2008 503

Processing units in operation 2009 46 249

Processing units deliered in 2008 1 838

Distruution equipment in operation 2009 16 105

Distruution equipment deliered in 2008 1 372

Factories or machine assemly 10

Production plants or packaging material and closures 43

Numer o countries coered more than 150

Market companies 41

Sales oces 74

Numer o employees 21 640

Techincal serice centres 41

Technical training centres 16

R&D units 12

Numer o litres o products sold in Tetra Pak packages in 2008 (million) 70 538

Numer o Tetra Pak packages in 2008 (million) 141 379

Net sales in 2008 in MEUR 8 825

Figures as of January 2009

Tetra Pak in numbers

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Report parameters

AimTo communicate our perormance, challenges and

progress, in order to oster dialogue with our stakeholders.

ScopeTetra Pak, its manuacturing plants, oces, supply and dis-

tribution chains, and interaction with its communities and

the environment. The report covers all our sites and opera-

tions, and in important areas such as orestry considers

the impacts o our supply chain as well. We report ully

within this scope using the indicators set out by the Global

Reporting Initiative (GRI) and our specic requirements.

Key stakeholdersThe main stakeholders who infuence Tetra Paks perormance

and goals, or are infuenced by the company, are:

our Board

Consumers

Customers

Educational institutions (research partnerships,

educational partnerships)

Employees Environmental non-governmental organisations

Government and governmental organisations at

local, national, regional and global levels

Health and nutrition organisations

Suppliers

Trade associations

We have not counted the number o stakeholders this

represents. As a guide we have oces in 43 countries,

covering more than 150 countries, and interact with most

o the above stakeholder groups in each country.

In terms o governmental and non-governmental organisa-

tions, we identiy key stakeholders by seeking out those

who have long experience and who are actively engaged

in the community. Our involvement is based on common

agreements, and reviewed yearly both internally and in

conjunction with our partners.

We publish our Environmental & Social Report every two

years. The previous report was published in the rst hal

o 2007 and the current one covers 2007/2008. Tetra Pak

has been publishing its Environmental Perormance since

1999. We expanded our reporting based on discussion

with stakeholders and eedback on our website or rom

published reports. Having identiied our key areas o

impact, we have steadily increased our engagement with

civil society through organisations such as those mentioned

in this report.

Determining what we should report onWe report on our eorts in our core impact areas, including:

community involvement, employee engagement, customer

ocus, orest sources, activities to reduce climate impact

and increase product recycling. While these may seem

distinct, we h

2009tp environmental social report

Documents