climate change 2016 information request brambles · tue 01 jul 2014 - tue 30 jun 2015 cc0.3 country...

Climate Change 2016 Information RequestBrambles

Module: Introduction

Page: Introduction

CC0.1IntroductionPlease give a general description and introduction to your organization.

Brambles is a supply chain logistics company that operates in more than 50 countries, primarily through our CHEP and IFCO brands. We specialise in the pooling of returnablepallets, crates and containers. Our pooling solutions services operate under three business segments: Pallets, RPCs and Containers.

Our Pallets business (under the CHEP brand) provides returnable pallets through a network of service centres. Manufacturers, producers, distributors and retailers use our pallets totransport products through their supply chains. We also provide supply chain optimisation and transport management services. In the USA, we provide a national network of palletmanagement services to sort, repair and reissue pallets (known as CHEP Recycling). Pallets reports in three regions: Americas; Europe, Middle East & Africa (EMEA) and Asia-Pacific (APAC).

Our RPC business (under the IFCO brand in Europe, the Americas and Japan and under the CHEP brand in Australia, New Zealand and South Africa) provides reusable plasticcrates (RPCs) to transport fresh produce from growers to retailers.

Our Containers business comprises four business units:• Automotive;• IBCs, providing intermediate bulk containers (IBCs) to customers in the food and general manufacturing industries;• Oil & Gas, comprising Ferguson Group, providing container solutions to the offshore oil and gas industry, and CHEP Catalyst & Chemical Containers, which provides containers tothe refining sector; and• Aerospace, which provides containers and pallets for the transportation of baggage and cargo to airlines.

For more information, go to www.brambles.com.

CC0.2Reporting YearPlease state the start and end date of the year for which you are reporting data.The current reporting year is the latest/most recent 12-month period for which data is reported. Enter the dates of this year first.We request data for more than one reporting period for some emission accounting questions. Please provide data for the three years prior to the current reporting year if you have notprovided this information before, or if this is the first time you have answered a CDP information request. (This does not apply if you have been offered and selected the option ofanswering the shorter questionnaire). If you are going to provide additional years of data, please give the dates of those reporting periods here. Work backwards from the most recentreporting year.Please enter dates in following format: day(DD)/month(MM)/year(YYYY) (i.e. 31/01/2001).

Enter Periods that will be disclosedTue 01 Jul 2014 - Tue 30 Jun 2015

CC0.3Country list configuration Please select the countries for which you will be supplying data. If you are responding to the Electric Utilities module, this selection will be carried forward to assist you in completingyour response.

Select countryAustraliaUnited KingdomRest of world

CC0.4Currency selection Please select the currency in which you would like to submit your response. All financial information contained in the response should be in this currency.

USD($)

CC0.6ModulesAs part of the request for information on behalf of investors, electric utilities, companies with electric utility activities or assets, companies in the automobile or auto componentmanufacture sub-industries, companies in the oil and gas sub-industries, companies in the information technology and telecommunications sectors and companies in the food,beverage and tobacco industry group should complete supplementary questions in addition to the main questionnaire.If you are in these sector groupings (according to the Global Industry Classification Standard (GICS)), the corresponding sector modules will not appear below but will automaticallyappear in the navigation bar when you save this page. If you want to query your classification, please email [email protected] you have not been presented with a sector module that you consider would be appropriate for your company to answer, please select the module below. If you wish to view thequestions first, please see https://www.cdp.net/en-US/Programmes/Pages/More-questionnaires.aspx.

Further Information

Module: Management

Page: CC1. Governance

CC1.1Where is the highest level of direct responsibility for climate change within your organization?

Board or individual/sub-set of the Board or other committee appointed by the Board

CC1.1aPlease identify the position of the individual or name of the committee with this responsibility

The Board is responsible for the establishment and review of the effectiveness of the Group's system of internal control and risk management. This includes consideration of climatechange risks. The Board is also responsible for the Group’s Environmental Policy and Corporate Social Responsibility Policy. The Brambles sustainability working group and theExecutive Leadership Team (ELT) help to formulate sustainability strategy, policies and targets, including those relating to climate change. Brambles has developed a sustainabilitystrategy and reports its sustainability performance, policy and overall governance on its website (please see document attached). In FY16, Brambles established a sustainability riskand control committee to report through normal risk management processes.

mailto:[email protected]

https://www.cdp.net/en-US/Programmes/Pages/More-questionnaires.aspx

CC1.2Do you provide incentives for the management of climate change issues, including the attainment of targets?

Yes

CC1.2aPlease provide further details on the incentives provided for the management of climate change issues

Who is entitled tobenefit from these

incentives?

The typeof

incentives

Incentivizedperformance

indicatorComment

All employeesRecognition(non-monetary)

Other:Environmentalvolunteerismandrecognition

Brambles has an employee volunteering policy, which provides employees with three days of paid volunteer leave peryear during usual contracted hours. This time can be used to volunteer their services to community-based not-for-profit environmental or educational organisations. During FY15, more than 1,400 employees volunteered a total of12,500 hours. Brambles recognises the volunteering efforts of our employees by featuring them in internalcommunications, on the company intranet, on www.chep.com, and in our sustainability reporting, ie SustainabilityReview.

Other: Suppliers andCustomers

Recognition(non-monetary)

EmissionsreductionprojectBehaviourchangerelatedindicatorOther:Recognition ofsustainabilityefforts

Brambles uses its logistics knowledge to minimise the carbon footprint of our customers by working with suppliers toreduce transport distances and associated emissions. We also work collaboratively with customers and suppliers toeliminate unnecessary empty return truck trips. Brambles features the customers and suppliers that it works withonline at www.chep.com and in its Sustainability Review (see pp 7-9).

Environment/Sustainabilitymanagers

Monetaryreward

EmissionsreductiontargetEnergyreductiontargetSupply chainengagementOther:Externalsustainabilityrecognition

Brambles' Global Head of Sustainability has KPI targets based on improved external recognition of the company'ssustainability efforts (such as through CDP) (annual bonus). Within the business, members of the sustainability teamhave KPIs linked to reductions objectives (annual bonuses). In some regions, this is cascaded down to otherdepartments (eg Operations Europe). Other employees have bonuses partly linked to implementing energy efficientmeasures and achieving reduction targets.

Energy managers Monetaryreward

EmissionsreductiontargetEfficiencytarget

Eg CHEP Europe monitors progress on energy initiatives versus targets regularly, both absolute emissions and usinga KPI of grams CO2 per C-stock generated. Monetary bonuses are linked to KPI achievement.

Management group Monetaryreward

Energyreductiontarget

For some senior managers, annual bonuses are linked to implementing energy efficient measures and achievingreduction targets.

Further Information

Attachments

https://www.cdp.net/sites/2016/16/2116/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC1.Governance/Sustainability Governance - strategy andgovernance from website.pdf

Page: CC2. Strategy

CC2.1Please select the option that best describes your risk management procedures with regard to climate change risks and opportunities

Integrated into multi-disciplinary company wide risk management processes

CC2.1aPlease provide further details on your risk management procedures with regard to climate change risks and opportunities

Frequencyof

monitoring

To whom areresults

reported?

Geographicalareas

considered

How far intothe futureare risks

considered?

Comment

Six-monthlyor morefrequently

Board orindividual/sub-set of theBoard orcommitteeappointed bythe Board

Global -Brambles riskmanagementprocessescover itsentireoperations inevery region

3 to 6 years

Brambles risk management processes are outlined in detail on its website and in our Corporate GovernanceStatement pp 8-9 (attached). The identification, assessment and adoption of mitigation plans for materialeconomic, environmental and social sustainability risks (which includes those related to climate change) wasincorporated into the Group’s risk management framework. The risk and control committees (RCCs), as a part oftheir regular review of their respective risk profiles and material risks, identify, assess and, if applicable, adoptmitigation plans for economic, environmental and social sustainability risks. Any such risks, and their associatedmitigation steps, are included in the twice yearly report from the Executive Leadership Team (ELT) to the Board(see Section 7.2 on p 9). A description of the nature of the Group’s material EES risks and how those risks aremanaged is set out in Section 5.3 on p 5 of Brambles’ 2015 Annual Report (attached).

CC2.1bPlease describe how your risk and opportunity identification processes are applied at both company and asset level

The Board is responsible for overseeing Brambles’ risk mgt framework (partly delegated to Audit Committee).The Board:- Is responsible for approving & reviewing the effectiveness of internal control & risk mgt;- Conducts a bi-annual review of the effectiveness of the risk mgt framework which includes determining that it is properly identifying risks, their materiality & mitigation steps; &- Conducts an annual review of the insurance program.The Board & Audit Committee are supported in their roles by mgt and internal audit.The Board has adopted a risk mgt framework, the objectives of which are published in the attached Corporate Governance Statement (pp 8-9).

Brambles’ Headquarters & each of its business units have a risk & control committee (RCC). RCCs conduct an in-depth review on a regular basis of the risk profile of the relevantbusiness unit. This includes material economic, environmental & social sustainability (EES) risks, such as those related to climate change. In FY16, Brambles established aSustainability RCC to assist with sustainability risks specifically. The Group Presidents review the risk profile & accompanying mitigation plans that are then consolidated into theGroup-level risk profile. The ELT, through the CEO, prepares a risk report to the Board twice yearly, which includes a review of the Group’s risk profile, mitigation factors, EES risks &emerging risks. (Corporate Governance Statement pp 8-9) The Global Director, Sustainability assists the Vice President, Risk in assessing EES risks. (Sustainability Governanceattached)

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC1.Governance/Sustainability%20Governance%20-%20strategy%20and%20governance%20from%20website.pdf

CC2.1cHow do you prioritize the risks and opportunities identified?

The timing of the emergence of risk impacts will vary between each risk type and whether they are operational or strategic risks. The consequence rating is considered in the contextof potential impact in the next 12 months, as well as the possible annual impact at some stage over the next 2-5 years should the risk be more strategic. Brambles regularly updatesits material sustainability issues process. This includes a review of stakeholder feedback through both formal and informal processes. Ranking is conducted as a part of this process.Brambles review of material sustainability issues is conducted with consideration of the Global Reporting Initiative (GRI) G4 guidelines, in order to identify material aspects thatreflect Brambles’ EES impacts. Stakeholders are engaged through a number of other ongoing business processes, including programs such as the Brambles Employee Survey andNet Promoter Score, which are under the direct control of senior management and reported where applicable. The top sustainability issues of concern to each stakeholder group areidentified and ranked. These are approved by senior management. The EES risks assessed by our internal risk management processes are also included in our analysis. Thematerial sustainability issues were identified as being those sustainability issues applicable to multiple stakeholder groups and/or with a material impact on our businesses. Followingthe identification and prioritisation of material sustainability issues, the results are approved by the Sustainability Working Group and the Board, before being reported publicly. Keystakeholders are identified as those groups significantly impacted by the policies and practices of Brambles businesses. Feedback from key stakeholders is reported annually. (seeattached Sustainability Governance - Stakeholder engagement and Determining Material Issues).

CC2.2Is climate change integrated into your business strategy?

Yes

CC2.2aPlease describe the process of how climate change is integrated into your business strategy and any outcomes of this process

Brambles sustainability strategy and objectives include policies and targets which address material risks arising from climate change and these are integrated into the strategies ofthe Group’s business units.

Brambles is built on principles that are inherently sustainable. We contribute to a circular economy, which champions keeping resources in use for a long as possible, and recoveringand regenerating products and materials at end of life. This benefits the environment in many ways, including reducing the impact of climate change. We respond to relevantgovernments and government regulatory authorities addressing climate change issues where relevant, for example, through mandatory reporting. This has required us to developour internal data collection systems to fulfil requirements.

Because of its unique position, Brambles has an excellent opportunity to deliver benefits in the supply chain. We collaborate with both customers and suppliers to build better supplychains through collaborative efforts. Brambles reported the environmental benefits from customers' use of our reusable systems in the Sustainability Review 2015 (p 6). In order tomeasure and report these benefits, our businesses have commissioned relevant independent life cycle analyses and applied these results to data collected through our internal datacollection systems. We also review our internal data collection to provide data relevant to these processes. Examples of responding to customer concerns on climate change is thedevelopment of our carbon neutral pallet program, and our quarter pallet carbon neutral product (see Sust Review 2015, p 8)

In the short-term, we have an excellent opportunity to deliver environmental benefits in our customers’ supply chains. We help customers address their climate change concerns byhelping to reduce their carbon footprint through the use of our pooling solutions. We apply our supply chain logistics expertise to help reduce food loss and waste in our customers’supply chains. (see Sustainability Governance and Sust Review 2015, pp 7-9) In order to keep our strategy relevant and maximise the value of our sustainability activities toinvestors, customers, employees, suppliers and the community, we regularly assess our performance against defined targets and through annual reporting of progress. We engageregularly in external benchmarking of our policy and performance, through independent investor, customer and NGO surveys, as well as seeking external assurance each year onkey areas of focus.

In the long-term, climate change impact is most relevant to the sourcing of our materials, which is of key concern to both our business and the wider community. Our reliance on asustainable timber supply base means that the long-term issues of deforestation and climate change are important to us. We manage these by applying best practice inenvironmentally responsible sourcing and operational management. We also work to reduce the carbon impact of our suppliers.

Our ability to collaborate with customers and suppliers to reduce environmental impact, using our logistics knowledge, gives us a competitive advantage. For example, in FY15, amajor retailer collaborate closely with CHEP North America to apply our new transportation solution, projected to fill almost one million empty trailer miles (with associated emissionsreductions) and generating US$2.5 million incremental revenue. (see Sust Review 2015, p 9)

While there was no single substantive business decision during the Year that was influenced by climate change driven aspects of our sustainability strategy, we updated oursustainability strategy and governance (published online and attached here). This strategy restated our focus our sustainability activities in three areas: Better Business, BetterPlanet, Better Community. Our ‘better business’ model is sustainable. We provide efficient, safe and sustainable solutions in our customers’ supply chains. We work towards a ‘betterplanet’ by minimising our impact to the environment through continuous improvement. We provide positive contributions to ‘better communities’ in which we operate.

CC2.2cDoes your company use an internal price of carbon?

No, and we currently don't anticipate doing so in the next 2 years

CC2.3Do you engage in activities that could either directly or indirectly influence public policy on climate change through any of the following? (tick all that apply)

Direct engagement with policy makersTrade associationsFunding research organizationsOther

CC2.3aOn what issues have you been engaging directly with policy makers?

Focus oflegislation

CorporatePosition Details of engagement Proposed legislative solution

Mandatorycarbonreporting

Neutral

Australian NGER legislation submission – required annually from 2011-2014.Brambles was required to submit its Scope 1 and 2 energy consumption andGHG emissions in accordance with this legislation. Brambles successfullyapplied to be deregistered from the Scheme in 2015 as our emissions andenergy levels did not meet the threshold and are not expected to for theforeseeable future.

The National Greenhouse and Energy Reporting (NGER) Schemewas introduced by the Australian Government in 2007 to providedata and accounting in relation to greenhouse gas emissions andenergy consumption and production. The Scheme’s legislatedobjectives are to: - underpin the carbon price mechanism - informpolicy-making and the Australian public - meet Australia’sinternational reporting obligations - provide a single nationalreporting framework for energy and emissions reporting. TheScheme is administered by the Clean Energy Regulator.

Energyefficiency Neutral

In the UK, the CRC Energy Efficiency Scheme (through the Department ofEnergy and Climate Change) is a legislative requirement whereby CHEPreports its UK Scope 1 and 2 emissions and purchase allowances based onthese emissions (excluding transport). CHEP UK engages with a consultant toreport and keep up-to-date with any changes and simplifications to thelegislation. CHEP appears in the annual report publication (listed as CyanLogistics, which is the highest UK parent covering all Brambles businesses) athttps://www.gov.uk/government/publications/crc-annual-report-publication-2013-to-2014. The report for 2015 has not yet been published

The CRC Energy Efficiency Scheme (or CRC Scheme) isdesigned to improve energy efficiency and cut emissions in largepublic and private sector organisations. The CRC affects largepublic and private sector organisations across the UK, togetherresponsible for around 10% of the UK’s greenhouse gasemissions. Participants include supermarkets, water companies,banks, local authorities and all central government departments.publicly. HM Treasury has issued a consultation paper whichproposes the abolition of the CRC Energy Efficiency Scheme(CRC), and its replacement by a single business energyconsumption tax based on Climate Change Levy (CCL). TheGovernment also proposes to develop a single reportingframework to replace current requirements under ESOS,Mandatory Greenhouse Gas Reporting and other schemesincluding the CRC scheme and the Climate Change Agreements.

It is proposed to design this framework "through the prism of "ESOS, a scheme which the Government is committed to maintain,because it is an EU requirement under the Energy EfficiencyDirective.

Other: Foodwaste Support

World Economic Forum - working with business, political, academic thoughtleaders to help shape global, regional and industry agendas. Brambles workswith the World Economic Forum and members on the Forum's food wasteprojects. Brambles has also created opportunities for international non-profitorganisation Enactus and the WEF, focusing on reducing food loss and waste.For eg, Enactus will be engaged in potential food loss and waste projects inAfrica. Brambles also increased its efforts in FY15 to address food waste inpartnership with customers and suppliers. With the world’s populatedforecasted to rise to 9.1 billion by 2050, it is estimated that food productionneeds to increase by 70% to keep pace with the growing population. At thesame time, it is estimated that between one-third and one half of the foodproduced by the developed world is lost post-harvest between the farm andconsumer. The contribution of food waste to GHG emissions through bothlandfill and increased pressure on agricultural resources is well documented.Brambles recognises that through the application of its logistics and supplychain expertise it is uniquely placed to help reduce food waste throughout thevalue chain. We do this by collaborating with customers and retailers, as wellas in our own product development.

The WEF has publicly stated that cutting food loss and waste is agreat way to drive sustainability and development and a crucialstep on the way to providing quality, nutritious food to a growingglobal and urban population. The WEF’s New Vision forAgriculture initiative engages leaders of business, government,civil society, farmers organisations, development partners andother groups to work together to achieve sustainable agriculturalgrowth. The initiative works at the global level with the G8 andG20, and facilitates national-level partnerships. Substantial gainsin agricultural productivity can be realised through investment,innovation, policy and other improvements.

Other:Environmentalperformance

Support

CHEP Australia is engaged with the government's Office of Environment andHeritage NSW, through its Sustainability Advantage program. The programworks to: - integrate environmental strategies with business planning; - useresources more efficiently; - engage and train staff to become an employer ofchoice; - enhance customer, supplier and community relationships; - measuretheir carbon footprint and manage their emissions; and - manageenvironmental risk and ensure compliance. Further information is available ontheir website at:http://www.environment.nsw.gov.au/sustainbus/sustainabilityadvantage.htm.

Results depend on a company's own efforts, while SustainabilityAdvantage provides expertise, training, tools and a network oforganisations working towards sustainability.

Other:Circulareconomy

Support

The European Commission launched its circular economy package at the endof 2015. It aims to promote – in a descending order - prevention, reuse,recycling, recovery, with disposal being the management option of last resort.To do so, it is updating the framework directive on waste (2008/98/EC) and itsdaughter directives, including the Directive on Packaging and PackagingWaste (94/62/EC).

Brambles is using this opportunity to promote its business modelof prevention and reuse, and this over making Europe a recyclingeconomy, which is becoming a buzz phrase too commonly used. Itis trying to align with like-minded allies with the same industrysector aims, including Plastics Europe, an EU trade association,and Reloop, a loose grouping of the transport and sales packagingindustries to lobby together to improve the legislation and increasethe amount of reusable packaging equipment put on the EUmarket.

CC2.3bAre you on the Board of any trade associations or provide funding beyond membership?

Yes

CC2.3cPlease enter the details of those trade associations that are likely to take a position on climate change legislation

Tradeassociation

Is yourposition

on climatechange

consistentwith

theirs?

Please explain the trade association's position How have you, or are you attempting to, influence theposition?

CEI-Bois Consistent

CEI-Bois, the European Confederation of woodworking industries, wasfounded in 1952 and represents the interests of the European woodworkingindustry. The primary goal of CEI-Bois is to further the interests of theEuropean wood sector and to this end, it aims to influence EU policy-making.It is the main body representing and defending the interests of the Europeanwoodworking and furniture industries towards the European Union

CHEP EMEA's Director, Government and Regulatory Affairs is thechairman of this body and his team is involved in climate changeand environmental policies for the group and dealing with theEuropean Director-General Environment and Director-GeneralClimate.

FEFPEB, theEuropeanFederation ofWoodenPallet andPackagingManufacturers

Consistent

The main objectives of FEFPEB are the promotion of timber packaging andthe determination and defence of the interests of the European WoodenPallet and Packaging Industry. Also monitors and provides comment on illegallogging/timber, renewable energy and biomass (through associatedorganisations) and lightweight packaging.

CHEP EMEA's Director, Government, Regulatory & Affairs is anExecutive Director of FEFPEB. In this role he addresses climatechange impact with the Director-General Environment; forexample, through the adverse impact on climate with DryingChambers for Heat Treatment to ensure pallets and lumber areISPM15 compliant. (see attached)

AustralianFood andGroceryCouncil'sSustainabilityCouncil

Consistent

CHEP is a founding member of the AFGC's, Retail and Suppliers Roundtable,Sustainability Council. Other founding members include some of ourcustomers from the retail and food manufacturing industries. AFGC is theleading national organisation representing Australia’s food, drink and grocerymanufacturing industry. AFGC’s Sustainability Commitment is a ten yearstrategy that sets clear objectives, targets, metrics and case studies that willshape the future direction of the food and grocery manufacturing industry’sperformance across water, energy and emissions, packaging and social andsourcing indicators.

In 2012, the AFGC's Future of Packaging white paper identified aneed for greater understanding of the implications of packaging onsustainability outcomes. As a responsible partner throughout foodsupply chains, CHEP Australia commissioned the Royal MelbourneInstitute of Technology's Centre for Design study on 'The role ofpackaging in minimising food waste in the supply chain of thefuture.' The study was released in June 2013 and a copy isavailable at chep.com. Food waste is a contributor to GHGemissions through landfill.

EfficientConsumerResponse(ECR) andrelatedorganisations

Consistent

The ECR ("Efficient Consumer Response") movement effectively began in themid-nineties and was characterized by the emergence of new principles ofcollaborative management along the supply chain. A related organisationCHEP is involved with is GS1. Climate change issues are dealt with to alesser extent by GS1.

The CHEP President, Europe is a board member for ECR(Europe).

ConsumerGoods Forum Consistent

CHEP is involved with the Consumer Goods Forum, which focuses on thedesign and implementation of global standards and solutions to improve theefficiency and visibility of supply and demand chains globally and acrosssectors. The CGF publishes information on its and members' responses toclimate change on its website at:http://www.theconsumergoodsforum.com/sustainability-strategic-focus/climate-change.

CHEP Is a member of the Consumer Goods Forum, which isfocused on advancing the industry through strategic priorities,including sustainability. Brambles was one of the companiesfeatured in the CGF Climate Change brochure released around theCOP21 Paris climate talks in late 2015. for our work on sustainablesupply chains (see attached).

CC2.3dDo you publicly disclose a list of all the research organizations that you fund?

Yes

CC2.3ePlease provide details of the other engagement activities that you undertake

In 2013, Brambles became a signatory to the UN Global Compact, indicating support for its principles, including those on environmental challenges and responsibilities. Brambles

communication on progress for 2015 can be found at http://www.brambles.com/un-global-compact-communication-on-progress (or attached). Brambles is also a member of theGlobal Compact Network Australia (GCNA) which actively communicates, promotes and facilitates the programs of the UNGC in Australia. Brambles is also a member the GlobalCompact Network in Spain.

CHEP is also a member of other regional bodies that work on climate change or related issues from time to time, for example, the Australian Packaging Covenant.

CHEP lists all of its associations on its website (please see the attachment at the bottom of this question). CHEP is a member of Lean and Green in Europe and Green Freight inEurope. Lean and Green promotes measuring and reducing carbon emissions; while Green Freight assists CHEP with its pioneering presence in new geographies. CHEPparticipates in projects with both organisations. These are examples of the activities in which CHEP engages.

CC2.3fWhat processes do you have in place to ensure that all of your direct and indirect activities that influence policy are consistent with your overall climate change strategy?

The CEO, who is a member of the Board, has operational responsibility for sustainability issues (see attachment on Sustainability Governance). Brambles Sustainability WorkingGroup, formed in 2015, is responsible for assisting the CEO and Executive Leadership Team (ELT) with sustainability strategies, targets and activities, consistent with the Group’sShared Values. Sustainability is part of the ELT agenda on a regular basis.The Sustainability Working Group is comprised of members of the sustainability team globally, as well as key representatives from different functions within the business, such asstrategy, HR, Procurement, operations and logistics. Brambles Sustainability Working Group is responsible for considering key performance indicators to benchmark its progresstowards achieving its sustainability goals, including both internal and external monitoring and reporting. The Board is also regularly updated on sustainability issues, either by theCEO or members of the Sustainability Working Group.

Further Information

Attachments

https://www.cdp.net/sites/2016/16/2116/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC2.Strategy/Zero Harm Charter (Feb 2013) ENGLISH.pdfhttps://www.cdp.net/sites/2016/16/2116/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC2.Strategy/Brambles_2015_Annual_Report_Final.pdfhttps://www.cdp.net/sites/2016/16/2116/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC2.Strategy/UN Global Compact Communication on Progress2015.pdfhttps://www.cdp.net/sites/2016/16/2116/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC2.Strategy/Sustainability Governance - strategy andgovernance from website.pdfhttps://www.cdp.net/sites/2016/16/2116/Climate Change 2016/SharedDocuments/Attachments/ClimateChange2016/CC2.Strategy/Brambles_2015_Corporate_Governance_Statement.pdfhttps://www.cdp.net/sites/2016/16/2116/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC2.Strategy/2015_Sustainability_Review.pdfhttps://www.cdp.net/sites/2016/16/2116/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC2.Strategy/Sustainability Governance - Stakeholderengagment and determining material issues.pdfhttps://www.cdp.net/sites/2016/16/2116/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC2.Strategy/CGF-Climate-Change-Booklet-Final.pdf

Page: CC3. Targets and Initiatives

CC3.1Did you have an emissions reduction or renewable energy consumption or production target that was active (ongoing or reached completion) in the reporting year?

Absolute target

CC3.1aPlease provide details of your absolute target

ID Scope% of

emissions inscope

%reduction

frombaseyear

Baseyear

Base yearemissionscovered by

target (metrictonnesCO2e)

Targetyear

Is this ascience-

basedtarget?

Comment

Abs1

Scope1+2(location-based)

20% 2010 133245 2015

No, butweanticipatesettingone inthe next2 years

In 2010, Brambles set a 20% reduction target on 2010 emission levels by 2015.The target applied to Recall and CHEP sites that have reported data since 2010.(Recent acquisitions and facilities in economies defined as emerging anddeveloping by the IMF are not included). In FY13, the emissions from applicableCHEP and Recall sites decreased by a total of 24.5%, exceeding the reductiontarget two years ahead of time. In FY14, Recall emissions were not included in ourreported data due to the demerger of Recall from the Brambles Group in December2013. However, retained CHEP sites included in this target recorded total CO2-eemissions reduction of 20.5% by FY15. Brambles has announced a new emissionsintensity target in 2016.

CC3.1eFor all of your targets, please provide details on the progress made in the reporting year

ID

%complete

(time)

%complete

(emissionsor

renewableenergy)

Comment

Abs1 100% 100%

In 2010, Brambles set a 20% reduction target on 2010 emission levels by 2015. The target applied to Recall and CHEP sites that have reporteddata since 2010. Recent acquisitions and facilities in economies defined as emerging and developing by the IMF are not included. In FY13, theemissions from applicable CHEP and Recall sites decreased by a total of 24.5%, exceeding the reduction target two years ahead of time. FromFY14, Recall emissions were not included in our reported data due to the demerger of Recall from the Brambles Group in December 2013.However, retained CHEP sites included in this target recorded total CO2-e emissions reduction of 20.5% by FY15. Brambles has announced anew emissions intensity target in 2016.

CC3.2Do you classify any of your existing goods and/or services as low carbon products or do they enable a third party to avoid GHG emissions?

Yes

CC3.2aPlease provide details of your products and/or services that you classify as low carbon products or that enable a third party to avoid GHG emissions

Level ofaggregation Description of product/Group of products

Are youreporting

low carbonproduct/sor avoidedemissions?

Taxonomy,project or

methodologyused toclassify

product/s aslow carbon orto calculate

%revenuefrom lowcarbon

product/sin the

reporting

% R&D inlow

carbonproduct/s

in thereporting

year

Comment

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC2.Strategy/Zero%20Harm%20Charter%20(Feb%202013)%20ENGLISH.pdf

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC2.Strategy/Brambles_2015_Annual_Report_Final.pdf

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC2.Strategy/UN%20Global%20Compact%20Communication%20on%20Progress%202015.pdf

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC2.Strategy/Sustainability%20Governance%20-%20strategy%20and%20governance%20from%20website.pdf

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC2.Strategy/Brambles_2015_Corporate_Governance_Statement.pdf

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC2.Strategy/2015_Sustainability_Review.pdf

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC2.Strategy/Sustainability%20Governance%20-%20Stakeholder%20engagment%20and%20determining%20material%20issues.pdf

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC2.Strategy/CGF-Climate-Change-Booklet-Final.pdf

avoidedemissions

year

Group ofproducts

Our business model is inherently sustainable. We contribute to a circulareconomy, which champions keeping resources in use for as long as possible,and recovering and regenerating products and materials at end of life.Brambles’ reusable solutions delivered the following environmental benefits inour customers’ supply chains: - Our customers’ use of reusable plastic crates(RPCs) instead of cardboard boxes saved at least 325,000 tonnes of CO2-ein FY15; - Repairing and reusing our pallets eliminated more than 630,000tonnes of CO2-e in FY15; and - Our multimodal/collaborative transportprograms saved more than 35,000 tonnes of CO2-e by removing 42 millionkilometres in trips. These represent a conservative estimate of the globalenvironmental benefits of our pooled products for the Year.

Avoidedemissions

Other:Independentlife cycleanalyses andinternal datacollection (seecomment).

100%

More than80% butless thanor equalto 100%

Calculatedenvironmental benefitsstated in this diagramare based on estimatesfrom: • our independentlife cycle analyses(LCA), applied tovolumes of the productsand regions covered bythese LCAs only; and •internal data collection(formultimodal/collaborativetransport programs andcarbon neutralproducts). Theserepresent aconservative estimateof the globalenvironmental benefitsof our pooled productsfor the Year. Furtherinformation is providedin the SustainabilityReview (pp 6-8) and inour supplementaryinformation document,available on our websiteand attached.

Product

6,215 tonnes of CO2-e was offset by customers using our carbon neutralproducts in FY15. CHEP Europe continues to grow the carbon neutralofferings with customers. Two new customers signed up in FY15. There are anumber of participating customers, including Spadel, MSM and Heinz. Thequarter pallet carbon neutral product ha been extended to all Europeancountries in FY15, after being introduced in Germany in FY14. CHEP hasoffered its carbon neutral pallet program since 2013, starting in Spain. Theprogram allows customers to offset the footprint of their CHEP palletmovements and purchase internationally recognised VCS-certified carboncredits in reforestation projects in developing countries. In 2014, CHEPEurope announced that its pallet pool in Sweden was carbon neutral. InGermany, fast moving consumer goods producer Henkel replaced remainingwhite exchange pallets and took up the carbon neutral offering for all palletmovements in the country. Customers in Spain, Germany, Portugal andBelgium have also joined the carbon neutral pallet program. In July 2014,CHEP introduced a new generation plastic quarter pallet. Increased recycledcontent, stackability and reduced weight have cut its carbon footprint by 10%.It is also Pallets' first certified carbon neutral product.

Low carbonproduct

Other: Lifecycle analysesand anindependentexternalprovider(CarbonNeutralCompany)

Less thanor equalto 10%

CHEP has over 50years’ experience inreducing, reusing andrecycling resources,making its businessmodel inherentlysustainable.CarbonNeutral®certification enablesCHEP to reduce theresidual emissionsassociated with itscustomer palletmovements to net zero,delivering an immediateand cost-effective wayfor CHEP customers tocompensate entirely forthe carbon footprint ofthe pallets used acrosstheir supply chain. (seeCarbonNeutralattachment). Revenuefrom this project is notreported separately.

CC3.3Did you have emissions reduction initiatives that were active within the reporting year (this can include those in the planning and/or implementation phases)

Yes

CC3.3aPlease identify the total number of projects at each stage of development, and for those in the implementation stages, the estimated CO2e savings

Stage of development Number of projects Total estimated annual CO2e savings in metric tonnes CO2e (only for rows marked *)Under investigationTo be implemented*Implementation commenced* 1 156Implemented* 7 1034200Not to be implemented

CC3.3bFor those initiatives implemented in the reporting year, please provide details in the table below

Activity type

Description of activity

EstimatedannualCO2e

savings(metrictonnesCO2e)

Scope Voluntary/Mandatory

Annualmonetarysavings

(unitcurrency

- asspecifiedin CC0.4)

Investmentrequired

(unitcurrency -

asspecifiedin CC0.4)

Paybackperiod

Estimatedlifetime of

theinitiative

Comment

Wasterecovery

We contribute to a circular economy, whichchampions keeping resources in use for as long aspossible, and recovering and regenerating productsand materials at end of life. We are able to makeour customers’ supply chains more sustainable.Because we recover, repair and allow customers toreuse our products many times, we are able toreduce demand on resources and waste. Pooling ofequipment is used to maintain "ready for use"equipment while damaged or dirty equipment isrepaired and cleaned, by replacing it with anidentical piece of equipment from the pool.Repairing and reusing our pooled wooden pallets inFY15 eliminated more than 420,000 tonnes ofwaste from landfill and more than 630,000 tonnes ofCO2-e. CHEP reclaimed and reused 4,901 tonnesof wood in FY15. Pallets has a target of zero woodwaste to landfill for our owned and operated sites by

955000

Scope 1Scope 2(location-based)Scope 3

Voluntary <1 year Ongoing

Reportedenvironmentalbenefits weremade in ourcustomers'supply chainsthrough theiruse ofBrambles’

2015. This has been achieved at 75% of our sites inFY15. The sites with zero wood waste to landfillcomprised 92% of our production volumes in FY15.Customers’ use of pooled pallets also saved at least1.38 million trees in FY15 and at least 11,000 ML ofwater Our customers’ use of reusable plastic cratesinstead of cardboard boxes saved at least 325,000tonnes of CO2-e and eliminated more than 39,000tonnes of waste in FY15. This reduces our demandfor virgin plastic and means that none of our RPCplastic ends up in landfill. In FY15, IFCO reusedmore than 17,000 tonnes of plastic material in themanufacture of new RPCs.

pooledwoodenpallets andreusableplastic crates.

Transportation:use

We work with customers and suppliers directly,using our logistics knowledge Ourmultimodal/collaborative transport programs savedmore than 35,000 tonnes of CO2-e by removing 42million kms in trips in FY15. This was done bycollaborating with over 150 customers. In the US,fleet optimisation helps customers increaseproductivity, earn revenue and reduce empty milesby hauling CHEP’s backhaul freight. In FY15, CHEPUSA’s customers were able to generate US$6.1million in incremental revenue and eliminate an est9.5 million kms in journeys. In Europe, a CHEPAutomotive customer focused program increasestransportation efficiencies by optimising loadsthrough improved truck fill rates for deliveries tocollections, and by eliminating transportation legsthrough shared locations. In the US, CHEP’scustomer storage program reimburses customersfor storing pallets on site using seasonally availablespace, eliminating additional pallet handling anddamage, as well as more than 390,000transportation kms, saving 421 t CO2 emissions inFY15. In Europe, we are now partnering with 135European customers on transport collaboration,Total Pallet Management and multimodal programs.During FY15 in Europe, CHEP began working withtransport providers to replace diesel trucks withmore eco-friendly natural gas trucks to reducescope 3 emissions. The introduction of alternativefuels such as liquid natural gas (LNG) andcompressed natural gas (CNG) to transport ourpallets helps to develop a more sustainable supplychain. CHEP worked with customerFrieslandCampina, a transporter and twosupermarket chains to develop an optimal transportschedule that keeps a CNG truck fully loaded andon the same efficient route, cutting CO2-eemissions by about 20%. CHEP Europe isextending the alternative fuel program in FY16 tothe UK and France. We are also working withUnilever to implement LNG filling stations in Europe.In Australia, by collaborating with a transportprovider, we have been able to deliver more palletsby rail instead of road, reducing CO2-e emissionsby 35% at one site alone. We also collaborated tosafely increase pallet stack height, removing theequivalent of 78 trucks from the road per year. (seepp 6-8 and the case study on p 9, and p 21 of theSustainability Review 2015 for information)

35000 Scope 3 Voluntary 4100000 <1 year Ongoing

Monetarysavings arerealised bycustomers, aswell asBrambles.Savingsrelated tonominatedtransportationprojects werenot specifiedin 2015financialreporting.However,despiteincreasedactivity and a8% increasein salesrevenue inFY15 (inconstantcurrency, seep 7 of theAnnualReport),transportexpensespaid toservicesuppliers(outlined inthe AnnualReport p 51)decreased by0.4% fromFY14. Thisfigure hasbeen includedin the annualmonetarysavingscolumn in thisrow. Theinvestmentrequired forthese projectsis notmonitoredseparately ona global level.

Product design

CHEP Aerospace Solutions replaced around 5,500heavyweight aluminium containers with lighterweight units in FY15. The average weight reductionper container of 20 kg saved approximately 17,200tonnes of CO2-e, 5,500 tonnes of fuel andsignificantly reduced fuel costs for our airlinecustomers.

17200 Scope 3 Voluntary <1 year Ongoing

Behavioralchange

In June 2015, CHEP North America launched asuite of value-added services to help customersoptimise their supply chains and support thedevelopment of corporate social responsibilityprograms. The Solutions Portfolio is designed tohelp our partners move product from the farm orprocessing facility to the store shelf faster and moreefficiently, addressing product damage, failed unitloads and empty transport miles. By looking atenterprise logistics, supply chain platforms,transportation, international trade, manufacturing,warehousing, harvesting, processing, distribution,store fulfilment, sustainability and supplier diversity,CHEP North America identifies efficiencies,eliminates waste and improves supply chainperformance. A major retailer collaborated closelywith CHEP to apply the new transportation solutionand is projected to fill almost one million emptytrailer miles in 2015, generating US$2.5 million inincremental revenue. Similarly, three major groceryretailers using the unit load optimisation solutionreduced damage at their distribution centres andeach saved about US$300,000 throughout theirsupply chains.

Scope 1Scope 2(location-based)Scope 3

Voluntary <1 year <1 year

Please note:annualmonetarysavingsindicated arefor customersof the NorthAmericanSolutionsPortfolioservices.Associatedenvironmentalbenefits, suchas CO2-ereductions,were notreported forFY15.

Low carbon Purchase of renewable energy in Europe. Brambles Scope 2

The differencein themonetaryexpense orinvestmentrequired for

energypurchase

aims to increase the purchase of renewable energyyear on year.

3000 (location-based)

Voluntary <1 year Ongoing electricityfrom switchingto renewableenergy wasnot reportedseparately inFY15.

Energyefficiency:Buildingservices

Projects to reduce energy consumption andassociated scope 2 emissions, including reducing ITservers, installing LED lighting and installing gaspower stations, for e.g. at our IFCO site in Duisburg,Germany in FY15. Some RPC sites in Australia alsobegan cold water washing, reducing the need toheat water (saving 151 tonnes of CO2-e). Sites alsoincreased the use of gas, which reduced electricityusage and associated scope 2 emissions (this waspartly responsible for an increase in scope 1emissions for the Year, but a lower combinedemissions footprint).

27000Scope 2(location-based)

Voluntary 1-3years Ongoing

Reportedscope 2 CO2-e savings forFY15 includeimprovementsin datacollection forthe Year. Areduction of34% fromFY14 was dueto the use ofactual datarather thanestimates inour recycledpalletsoperations, aswell as thepurchase ofrenewableenergy andenergyreductionprojectsoutlined in thisrow. We willwork with ourutilitysuppliers inFY16 tofurtherimprove andsimplify datacollectionprocess in theUS, as well asimprove theinternalsharing ofbest practice.

Wasterecovery

CHEP Aerospace Solutions’ repair stations in theUS recycle used batteries from all Envirotainercooltainers. Each unit has 16 D-size batteries,which must be disposed of when a unit is returned.Recycling the batteries reduces the damage thatcan be caused by metals to soil and water fromlandfill and air pollution from municipal wastecombustors. It also conserves resources andenergy. CHEP Aerospace Solutions also acceptsother batteries from customers for recycling.

Scope 3 Voluntary 4-10years Ongoing

Environmentaland monetarysavings fromthis projecthave not beenseparatelyreported forFY15.

Transportation:use

Brambles is encouraging the use of videoconferencing where possible to limit overseas airtravel by employees. Video conferencing metricswere improved from June 2015. Avoided traveldistances and associated emissions from the use ofvideo conferencing are being tracked from FY16.Initial indications suggest an average emissionssavings of 39 tonnes of CO2-e per quarter, atcurrent usage levels. Usage levels fluctuate inresponse to variations in employee activity.

156 Scope 3 Voluntary 756000 <1 year Ongoing

Annualmonetarysavings andemissionssavings arebased on theavoided travelcost and areprojected forFY16, basedon early FY16reportedusage. Actualdata will beprovided inthe 2017 CDPresponse.

CC3.3cWhat methods do you use to drive investment in emissions reduction activities?

Method Comment

Compliance withregulatoryrequirements/standards

Regulatory requirements drive investment in emission reduction activities in certain parts of our operations as we comply with state, local, federal andinternational requirements. Various regulations affect building design and retrofits, fleet services and other activities in our operations.

Dedicated budget forlow carbon productR&D

CHEP has offered its carbon neutral pallet program since 2013, starting in Spain. The program allows customers to offset the footprint of their CHEPpallet movements and purchase internationally recognised VCS-certified carbon credits in reforestation projects in developing countries. In 2014, CHEPEurope announced that its pallet pool in Sweden was carbon neutral. In Germany, fast moving consumer goods producer Henkel replaced remainingwhite exchange pallets and took up the carbon neutral offering for all pallet movements in the country. Customers in Spain, Germany, Portugal andBelgium have also joined the carbon neutral pallet program. In July 2014, CHEP introduced a new generation plastic quarter pallet, developed inconjunction with customers and partners. Increased recycled content, stackability and reduced weight have cut its carbon footprint by 10%. It is alsoPallets' first certified carbon neutral product. The quarter pallet was extended to all European customers in FY15.

Employee engagement

Brambles regularly encourages its employees to reduce their environmental footprint or find ways to benefit their natural environment. From time to time,training videos and other educational activities are provided to employees to improve their environmental awareness and behaviours. For example,environmental calculators allowing employees to estimate their carbon footprint are available on Brambles intranet 'Walter'. Sustainability information isalso provided on the intranet, including promoting Earth Hour each year, Earth Hour competitions and other sustainability information. Brambles and itsbusinesses communicate the environmental volunteering done by employees in its internal newsletters and intranet. In some businesses, Brambles'give as you earn' policy encourages employees to donate to not-for-profit community-based organisations, including environmental organisations, withmatching programs in place in some businesses. Sustainability leadership is provided throughout the Group. For example, CHEP Australia hasestablished a Sustainability Leadership Committee comprising directors and managers. Environmental coordinators (one representative from each site)will champion environmental initiatives.

Internal

For some employees, a monetary reward (bonus) is linked to sustainability achievements, including energy savings, emissions reductions and externalrecognition of emissions reduction activities (such as through CDP). This applies to Sustainability Directors and managers, as well as others, throughout

incentives/recognitionprograms

the Group. In some regions (and increasing) this is cascaded to other departments (Operations Europe, for example). CHEP Europe monitors progressversus target regularly, both absolute emissions and using a KPI, grams CO2 per C-stock generated. Sites achieving emissions savings are recognisedin internal publications in some businesses. For example, CHEP Australia publishes sites that achieve emissions reductions in its internal newsletter, itssustainability report and on its internal television system.

Partnering withgovernments ontechnologydevelopment

For example, CHEP Australia participates in the NSW Government’s Sustainability Advantage Program to access best practice advice on sustainabilityfor continual improvement.

Other

Setting targets and sharing best practice throughout the Group: Brambles set a target of 20% reduction on 2010 emission levels by 2015. Bramblesimplemented its iCARE online system in FY13 to record and track energy, waste and water data regularly and better analyse the information, allowingfor collaboration on energy and efficiencies throughout the Group. In addition to providing more accurate information of Brambles reportingrequirements, iCARE will allow the businesses to benchmark operations and identify efficiencies across the Group. Brambles announced a newaspirational goal of zero emissions in 2016, with a 2020 emissions intensity reductions target and a target to increase the use of renewable energy.

Further Information

Attachments

https://www.cdp.net/sites/2016/16/2116/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC3.TargetsandInitiatives/2015_Sustainability_Review.pdfhttps://www.cdp.net/sites/2016/16/2116/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC3.TargetsandInitiatives/CHEP CarbonNeutral from NaturalCapital Partners.pdfhttps://www.cdp.net/sites/2016/16/2116/Climate Change 2016/SharedDocuments/Attachments/ClimateChange2016/CC3.TargetsandInitiatives/Brambles_2015_Annual_Report_Final.pdfhttps://www.cdp.net/sites/2016/16/2116/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC3.TargetsandInitiatives/2015 Sustainability Review -supplementary information.pdf

Page: CC4. Communication

CC4.1Have you published information about your organization’s response to climate change and GHG emissions performance for this reporting year in places other than in your CDPresponse? If so, please attach the publication(s)

Publication Status Page/Section reference Attach the document Comment

In voluntarycommunications Complete 1-28

https://www.cdp.net/sites/2016/16/2116/Climate Change2016/SharedDocuments/Attachments/CC4.1/2015_Sustainability_Review.pdf

Emissions on pp 6-9 and 20-21.

In otherregulatoryfilings

Complete

UK CRC Scheme: Worksheet 1,https://www.gov.uk/government/publications/crc-annual-report-publication-2013-to-2014 (not yetreleased for 2015)

Under the CRC scheme,Brambles reports itsemissions once a year to theEnvironment Agency andpurchases allowances(currently at £16 a tonne ofCO2e). Brambles registeredand submitted its footprintreport to the UK EnvironmentAgency in July 2015 and aredue to do so again in July2016. Brambles' UK businessunits have been reported inCRC published league tablesas 'Cyan Logistics' (UK parentcompany). However, a leaguetable has not yet beenpublicly reported for 2015.HM Treasury has issued aconsultation paper whichproposes the abolition of theCRC Energy EfficiencyScheme (CRC), and itsreplacement by a singlebusiness energy consumptiontax based on Climate ChangeLevy (CCL). The UKGovernment also proposes todevelop a single reportingframework to replace currentrequirements under ESOS,Mandatory Greenhouse GasReporting and other schemesincluding the CRC schemeand the Climate ChangeAgreements. It is proposed todesign this framework"through the prism of " ESOS,a scheme which theGovernment is committed tomaintain, because it is an EUrequirement under the EnergyEfficiency Directive.

In voluntarycommunications Complete http://www.brambles.com/sustainability-

framework

Brambles five yearperformance document isavailable for download on ourwebsite. This includesemissions and energy datafor the previous five years.

Further Information

Module: Risks and Opportunities

Page: CC5. Climate Change Risks

CC5.1Have you identified any inherent climate change risks that have the potential to generate a substantive change in your business operations, revenue or expenditure? Tick all thatapply

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC3.TargetsandInitiatives/2015_Sustainability_Review.pdf

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC3.TargetsandInitiatives/CHEP%20CarbonNeutral%20from%20Natural%20Capital%20Partners.pdf

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC3.TargetsandInitiatives/Brambles_2015_Annual_Report_Final.pdf

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC3.TargetsandInitiatives/2015%20Sustainability%20Review%20-%20supplementary%20information.pdf

Risks driven by changes in regulationRisks driven by changes in physical climate parametersRisks driven by changes in other climate-related developments

CC5.1aPlease describe your inherent risks that are driven by changes in regulation

Risk driver DescriptionPotentialimpact

Timeframe

Direct/Indirect

Likelihood

Magnitudeof impact

Estimatedfinancial

implicationsManagement method Cost of

management

Emissionreportingobligations

Australian NationalGreenhouse EnergyReporting Schemesubmission. Following thedivestment of Recall and areview of sites considered tobe under operational controlby an independent thirdparty, Brambles emissionsin Australia did not reachthe emissions threshold inFY15. Bramblessuccessfully applied to bederegistered from theScheme in 2015.

Increasedoperationalcost

Up to 1year Direct Very unlikely Low

Corporationsthat fail toregister andreport orcomply withobligationsunder theNGER Actmay be liablefor penalties.Penaltyprovisions areset out in Part5 of the NGERAct (from page40, attached).Eg the penaltyfor failure toapply forregistration is2,000 penaltyunits. Anadditional civilpenalty mayalso beincurred foreach day afterthe due datethat acorporationfails to applyfor registration.It isexceptionallyunlikely thatthis wouldhappen forBrambles.

Brambles will continue tomonitor its emissions andenergy usage in Australia toensure that recorded levelsdo not approach thethresholds set by the NGERAct. If levels increase towithin range of thethresholds, Brambles will re-register under the Schemeand report its data asrequired.

The cost ofreviewing andapplying forderegistrationfrom thescheme inFY15included theengagementof anindependentthird party toreview thesites includedin reportingas peroperationalcontrolguidelines,and assistwithcalculatingenergy andGHGemissionsdata as perthe legislationguidelines.The cost ofthisengagementwas low andnotconsideredmaterial. Thecost ofongoingmonitoringthroughBramblesglobalOccupationalHealth,Safety andEnvironmentreporting andanalysissystem(iCARE) isnotsubstantial tothe business.

Cap andtradeschemes

In the UK, the CarbonReduction CommitmentEnergy Efficiency Schemecame into force in April2010. CHEP UK isregistered. Other countriesor regions have adoptedother schemes, for example,the New Zealand EmissionsTrading Scheme, theEuropean Union EmissionTrading Scheme, a pilotscheme in China, and somestates in the US. Cap andtrade schemes will lead toan increase in cost forBrambles, its businessesand its customers.


Up to 1year Direct Virtually

certain Low

CHEP UKregistered andsubmitted itsfootprint reportto the UKEnvironmentAgency in July2012. FromApril 2012,participants inthe schemewill be requiredto purchaseallowances forthe tonnes ofCO-2-e theygenerate.

In the UK, the CarbonReduction Commitment(CRC) Energy EfficiencyScheme legislation cameinto force in April 2010. TheCRC Energy EfficiencyScheme in the UK is alegislative requirement toreport and purchaseallowances based on Scope1 and 2 emissions (excludingtransport). Together with thereputation considerations,the scheme encouragesorganisations to developenergy managementstrategies that promote abetter understanding ofenergy usage. The schemeis designed to tackle CO2emissions not alreadycovered by Climate ChangeAgreements (CCAs) and theEU Emissions TradingScheme. CHEP UK reportsits emissions once a year tothe Environment Agency,and purchases allowances(currently at £12 a tonne ofCO2). CHEP UK registeredand submitted its footprintreport to the UKEnvironment Agency forFY15. From April 2012,participants in the schemewill be required to purchaseallowances for the tonnes ofCO2-e they generate.Brambles has invested in anenvironmental managementsystem and started

The cost ofiCARE is notsubstantial tothe business.Pallets UKalso workswith anindependentconsultancyfirm to reportBrambles'emissions inthe UK. Costsassociatedwith riskmitigationactivities takea number offorms, forexample,capital costs(such asinvestmentsin energyefficiencyprojects) andoverheadcosts (suchas employingsustainabilityexperts, etc).Specific costsare notdisclosed dueto commercialsensitivity.

implementing strategies thatwill reduce energyconsumption and emissionsover the coming years.

Otherregulatorydrivers

The Australian Competitionand Consumer Commissionsupervises companiesmaking green claims,including carbon claims.Legal protections andexpectations are containedin the Australian ConsumerLaw (ACL), which is aschedule to the Competitionand Consumer Act 2010.The ACL states thatbusinesses must notmislead or deceiveconsumers in any way, andit carries serious penaltiesfor businesses that fail tomeet these requirements(see attached guide).Thismeans Brambles’ must beable to verify andsubstantiate publicstatements of environmentalbenefits.

Other:Reputationalrisk andpossible fine

Unknown Direct Exceptionallyunlikely Low

Risks ofmaking ‘greenclaims’includingcarbon claimswithoutevidence tosubstantiate isa FederalCourt action.

Brambles seeks to minimisethis risk through itssustainability strategy,including targets to reduceits impact on theenvironment (includingemissions reductions). Aninventory of carbon relatedclaims aligned with evidenceis kept. Since FY12,Brambles has used theservices of an independentthird party to verify its dataand statements in its annualsustainability review,including its GHG emissions.(see attached assurancestatement for FY15).

The cost ofindependentassurance ofBramblesGHGemissions isnot separatedfromassurance ofothersustainabilityindicators.Costsassociatedwith oursustainabilitystrategy,targets andrisk mitigationactivities takea number offorms. Thereare rawmaterial costs(eg buyingcertifiedsources),capital costs(eginvestmentsin energyefficiencyprojects) andoverheadcosts (egemployingsustainabilityexperts, etc).Specific costsare notdisclosed dueto commercialsensitivity.

Uncertaintysurroundingnewregulation

Proliferation of regionallegislation. Bramblesbusinesses in the UK isdirectly affected by the UKCarbon ReductionCommitment EnergyEfficiency scheme and inprevious years has comeunder Australia's NGERScheme, as noted above.Brambles previouslyaddressed the carbon tax inAustralia, prior to its repealin July 2014. While none ofthese represent asubstantive risk to thecompany, the potentialproliferation of similar andvarying legislation in othercountries could present arisk since the companyoperates in more 50countries around the world.


>6 years Direct About aslikely as not Low

Details oncurrentimpacts arenoted above.While currentrequirementsdo notrepresent asubstantivecost toBrambles,proliferation ofsuchlegislationcouldintroduceoperationalcomplexity andassociatedcost burden tothe business.This couldimpactBrambles'ability topredictpossibleadditionaloperationalcosts,reportingrequirements,impacts onservices tocustomers andso on.

Brambles globalOccupational Health, Safetyand Environment reportingand analysis system(iCARE) allows us to betterassess the impact oflegislation should it comeinto force, given the greaterease of accessing emissionsdata in individual countriesand regions. This online,easy to access system hasreplaced the previousmethod of collecting datathrough spreadsheets.Brambles businesses havethe capacity to enter theirenergy, waste and waterdata regularly and analysethe information at theirdiscretion. iCARE includesemissions data at a site andcountry level. It also allowsintegrated complianceanalysis and reporting.

The cost ofimplementingiCARE is notsubstantial tothe business.

Productlabellingregulationsandstandards

Many of Brambles'customers provide FMCGproducts that may beimpacted by voluntary ormandatory product labelling.This information requirescooperation with theirsuppliers, includingBrambles' businesses, todetermine the carbonimpact of products andservices. For example, in2012, the EuropeanCommission commissioneda study to investigate thepossibility of creating aproduct label which providesconsumers with information


Up to 1year

Indirect(Client)

More likelythan not Low

Customerrequests forinformation toenable them tocalculate thecarbon impactof individualbrands orproducts willrequireBrambles toimprove itsown datacollectionsystems. Whilecurrentrequirementsdo notrepresent asubstantivecost to

Brambles collects extensivedata on its environmentalimpact using its occupationalhealth, safety andenvironment reporting andanalysis system iCARE,implemented in FY12. Inaddition, CHEP Europeoffers a carbon neutral palletservice, allowing customersto further reduceenvironmental impact. Theservice enables customersto purchase carbon credits tohelp finance emission-reduction projects worldwide.

The cost ofimplementingiCARE is notsubstantial tothe business.Specific costsrelated tojointcollaborationswithcustomers

about the environmentallifecycle performance of theproduct (Single Market forGreen Products initiative). InFebruary 2015, Wal-Mart,one of Brambles' customers,announced a new onlinebadging program in an effortto index supply chainsustainability standardsacross product categories.

Brambles,proliferation ofsuchlegislation orcustomer andindustryinitiativescouldintroduceoperationalcomplexity andassociatedcost burden toourbusinesses.

CHEP uses LCI and LCAdata where possible toenable it to calculate itscustomers' environmentalimpact, includinggreenhouse gas emissions.If required by customers,CHEP will collaborate todetermine its impact in theirsupply chains.

are notdisclosed dueto commercialsensitivity.

Fuel/energytaxes andregulations

Brambles and its customersrely on transport providersto move its pooling solutionsand goods throughout thesupply chain. Fuel/energytaxes and regulationsimpact on the cost oftransport services.Fuel/energy taxes currentlyexist in countries whereBrambles' businessesoperate, for example, inAustralia an excise tax onfuel is levied by the federalgovernment. The price offuel, impacted by fuel taxes,is one of the conditions thatcontributes to a keybusiness risk, wherechanges in businessconditions in the markets weserve may affect theprofitability of our businessmodels. (p 52 of attachedInvestment Market Briefingon Transport inflation,demonstrating elevated line-haul rates for the past 18months)


Up to 1year

Indirect(Supplychain)

Virtuallycertain

Low-medium

Financialimplications offuel andenergy taxesvary fromcountry tocountry whereBrambles'businessesoperate andmay changeregularly. Forexample, thefuel excise taxin Australia islinked toinflation andreviewed everysix months. InAustralia,grants andincentiveschemesinvolving taxcredits andrebates alsoapply tobusinesses orindustries thatrely heavily onthe use offuels, such astransport.Somegovernmentsprovide fueltaxconcessionsfor alternativefuels, such asnatural gas.Fuel costsimpactBrambles'transportsuppliers.Transportexpenses forBrambles forFY15(continuingoperations)wereUS$1,080.5million (seepage 51 of theattachedAnnual Report2015).Brambles doesnot reportother energycosts (such aselectricity)separately inits financialreports.

Brambles works to reducetransport distances, whichalso reduces fuel usage. InFY15, we reducedtransportation distancesaround the world by over 42million kilometres. Someexamples are listed here: Inthe US, fleet optimisationhelps customers reduceempty miles by haulingCHEP’s backhaul freight. InFY15, CHEP USA’scustomers were able togenerate US$6.1 million inincremental revenue andeliminate an estimated 9.5million kilometres injourneys. A major retailercollaborated closely withCHEP to apply the newtransportation solution and isprojected to fill almost onemillion empty miles in 2015.CHEP Aerospace Solutionsreplaced around 5,500heavyweight aluminiumcontainers with lighter weightunits in FY15, savingapproximately 5,500 tonnesof fuel and significantlyreducing fuel costs for ourairline customers. DuringFY15 in Europe, CHEPbegan working with transportproviders in severalcountries to replace dieseltrucks with more eco-friendlynatural gas trucks. CHEPworked with customerFrieslandCampina, atransporter and twosupermarket chains todevelop an optimal transportschedule that keeps a CNGtruck fully loaded and on thesame efficient route. CHEPEurope is extending thealternative fuel program inFY16. We are also workingwith Unilever to enhance theimplementation of LNG fillingstations in Europe. Forfurther examples andinformation, please refer tothe 2015 SustainabilityReview (pp 7-9, 20)

Managementof transportand energysuppliers isconductedthroughnormalprocurementprocesses.Noincrementalcost isassociated.Costs ofcustomerfocused fuel-relatedprograms arenot monitoredseparately tonormalcustomerprocesses.Transportexpenses forBrambles forFY15(continuingoperations)wereUS$1,080.5million (seepage 51 ofthe attachedAnnualReport 2015).Bramblesdoes notreport otherenergy costs(such aselectricity)separately inits financialreports.

Regulatory compliance isnoted as a key business risk(p 5 Annual Report 2015).Governments andregulatory authorities havebecome increasinglyfocused on environmental,sustainability and otherissues. Governmental andcustomer focus on these

If we fail tocomply withregulatoryobligations, itcould give risetoinvestigationsby regulatorsor litigation,adverselyaffect licenseswe hold anddamage ourreputation,which couldadverselyaffect ouroperationaland financialperformance.Any materialchange orincrease in

The Chief Executive Officer,through the ExecutiveLeadership Team (ELT), hasprincipal responsibility forrisk management. Bramblesoperates a company-widerisk management framework.In addition, Bramblesemploys a Senior Director,

Any risk andits potentialimplicationsare monitoredthrough ourrisk

Otherregulatorydrivers

issues may lead toadditional regulatory andlegislative action whichcould increase our costs ofoperations or adverselyaffect demand for ourservices. Governmentregulations affect all aspectsof Brambles' operations,Those regulations imposeobligations on (amongstother things) environmentalprotection.


1 to 3years Direct About as

likely as not Lowregulatoryobligationscould alsoadverselyaffect theviability of ourcurrentbusinessmodel andstrategies.Increases inoperatingcosts couldnegativelyimpact ourprofitability orcash flow.Given therange ofpotentialscenarios, weare unable toreport actualfinancialimplications.

Government & RegulatoryAffairs, Marketing, whoassists with monitoring ofregulation, includingenvironmental regulation, forthe Group globally. Forfurther information oncorporate governance andrisk management, pleasesee the attached CorporateGovernance Statement.

managementprocesses.Noincrementalcost isassociatedwithmonitoringthis risk.

CC5.1bPlease describe your inherent risks that are driven by changes in physical climate parameters

Risk driver Description Potential impact Timeframe Direct/Indirect

Likelihood

Magnitudeof impact

Estimatedfinancial


management

Change intemperatureextremes

Increased intensity, periodand frequency of heatwaves, causinginfrastructure impacts, suchas buckling rail tracks andtemporary port closure

Increasedoperational cost

1 to 3years


About aslikely asnot

Low

All of thesepotentialeffects arealso likely toimpact ourinsurancepremiumsover time, asfor thebusinesscommunitygenerally.Given therange ofpotentialscenarios, weare unable tomeaningfullyquantify theactualfinancialimplications atthe currenttime.

In December 2012,Bramblescommissioned aclimate changeadaptation report froman independent thirdparty to investigaterisks and opportunitiesin its business fromclimate change. Theoutcomes of the reportwere used in part toaddress the issuesidentified in thisresponse. Forexample, increasingtemperature extremescould impact on theavailability of gridelectricity, access andthe ability for ourservices to accesstransport on affectedinfrastructure, such asroads, rail, etc,increased exposure atparticular times of theyear (for eg, peakdemand).

Risks andpotentialimplicationsare monitoredthrough riskmanagementprocesses.Noincrementalcost isassociated.Overheadcosts, suchas employingsustainabilityexperts, etcare notdisclosed dueto commercialsensitivity, butare notsubstantial.Brambles hasnot had anyimpact in thepast fiveyears oninsurancepremiums forcontinuingoperations.Insurancepremiums arenot discloseddue tocommercialsensitivity.

Changing temperature andprecipitation patterns maylead to physical effects onour assets (wooden pallets,etc) and decreasedavailability of raw materialsin the supply chain.Changes in precipitationmay also impact on ourability to provide a resilientproduct, as prolonged rainyseasons and humidity maycause mould on pallets.Climate change mayincrease the occurrence andfrequency of floods, whichcan then affect our directoperations. Some ofBrambles' global operationsand infrastructure servicesrequired to continue tooperate may be exposed tosome physical risks fromclimate change. Flood

Inventoriesand property,plant andequipmentwere valued atUS$4,506 min FY15. (pp60-61 AnnualReport 2015)Potentialcatastrophiclosses may beuninsurable,or notinsurable on afinanciallyreasonablebasis (eg, wedo not carrybusinessinterruptioninsurance forour Palletsbusiness, butwe carry“increasedcost ofworkinginsurance” forthat business)or may besubject tolargerexcesses or

We carry variousinsurance policies tocover our respectiveproperties andoperational hazardswith policyspecifications andinsured limits that webelieve are customarilycarried for similarproperties andoperating activities.Group Risk and Auditmanages risk withrobust site and assetmanagement plansand modelling,including emergencyresponse and businesscontinuity. Globalbuilding surveysapplying Zero Harm

Any risk andits potentialimplicationsare monitoredthrough ourrisk

Change inprecipitationextremesanddroughts

damage and businessinterruption will increasecosts, disrupt supply chainsand impact insurancepremiums. Unexpectedevents could disrupt ouroperations and adverselyaffect our results ofoperations. We are subjectto the risks of unexpectedevents, natural disasterssuch as hurricanes,tornadoes, floods, fires,earthquakes, etc andpotential outbreaks of publichealth related issues thatmay directly impact the fast-moving consumer goodsindustry, such as food borneillnesses. Each of theseevents could adverselyaffect our operational andfinancial performance.These events could result incustomer disruption,employee safety issues,physical damage to one ormore key operatingfacilities, temporary closureof one or more keyoperating facilities,temporary disruption ofinformation systems,reputational damage,financial impairment orlitigation. Our operationsand properties may beuninsured or underinsuredand failure to maintainadequate insurance mayresult in a default under ourdebt instruments.

Increasedoperational cost

Up to 1year Direct More likely

than not Low

coveragelimitations.Our Pallets'business,whichprovidespooledwoodenpallets tocustomers,contributed43% of salesrevenue inFY15. Ifuninsured oruninsurableloss occurs,we could besubject tomaterialliability or loseinvestedcapital in andanticipatedprofits fromaffectedproperty orassets.Damage tocomputer andback-upsystems mayrequiresignificantinvestment torepair orreplace, andwe may sufferinterruptionsthat adverselyaffectoperationaland financialperformance.Given therange ofpotentialscenarios, weare unable tomeaningfullyquantify allimplications.

standards areconducted continually.Brambles has beenworking to apply GPScoordinates to all sites.This allows Bramblesto modify our insuranceprogram wherecatastrophe and flooddata is available (egUSA). We haveindependent andphysically separateprimary and secondarycomputer systems, aswell as offsite storageand a disaster recoveryplan. In 2014,Brambles expandednatural catastrophemodelling with itsinsurer. The 2011 Qldfloods demonstratedBrambles' resilience.Two flood-affectedservice centres wereimpacted by waterrising up to 2.4 metres.Customer transactionswere rerouted to otherservice centres. About90 per cent ofequipment at bothservice centres had tobe replaced (costsrecouped throughinsurance). CHEPoften provides palletsto assist emergencyservices.

managementprocesses.Noincrementalcost isassociatedwithmonitoringthis risk.Brambles hasnot had anyimpact in thepast fiveyears oninsurancepremiums forcontinuingoperations.Insurancepremiums arenot discloseddue tocommercialsensitivity.

Tropicalcyclones(hurricanesandtyphoons)

Increased, intensity,frequency and area ofimpact of cyclones, causingdamage to our assets,including facilities, as wellas roads and otherinfrastructure. Unexpectedevents could disrupt ouroperations and adverselyaffect our results ofoperations. We are subjectto the risks of unexpectedevents, natural disasterssuch as hurricanes,tornadoes, floods, fires,earthquakes, etc andpotential outbreaks of publichealth related issues thatmay directly impact the fast-moving consumer goodsindustry, such as food borneillnesses. Each of theseevents could adverselyaffect our operational andfinancial performance.These events could result incustomer disruption,employee safety issues,physical damage to one ormore key operatingfacilities, temporary closureof one or more keyoperating facilities,temporary disruption ofinformation systems,reputational damage,financial impairment orlitigation. Our operationsand properties may beuninsured or underinsured

Reduction/disruptionin productioncapacity

Up to 1year Direct


Low

Inventoriesand property,plant andequipmentwere valued atUS$4,506 min FY15. (seepp 60-61 ofAnnual Report2015)Potentiallosses of acatastrophicnature such asthose arisingfromcatastrophicevents, maybe eitheruninsurable,or, in ourjudgment, notinsurable on afinanciallyreasonablebasis (for eg,we do notcarry businessinterruptioninsurance forour Palletsbusiness,although wecarry“increasedcost ofworkinginsurance” forthat business)or may besubject tolargerexcesses orlimitations oncoverage. Ifan uninsuredor uninsurableloss occurs,we could besubject tomaterialliability or loseboth our

We carry variousinsurance policies tocover our respectiveproperties andoperational hazardswith policyspecifications andinsured limits that webelieve are customarilycarried for similarproperties andoperating activities.Group Risk and Auditmanages risk withrobust site and assetmanagement plansand modelling,including emergencyresponse and businesscontinuity. Globalbuilding surveysapplying Zero Harmstandards areconducted continually(Charter attached).Work to apply GPScoordinates for everysite in order to mapagainst events,including weatherevents and rating interms of likelihood ofevents where data isavailable from insurers

Any risk andits potentialimplicationsare monitoredthrough ourriskmanagementprocesses.Noincrementalcost isassociatedwithmonitoringthis risk.Brambles hasnot had anyimpact in thepast fiveyears oninsurancepremiums forcontinuingoperations.Insurance

and failure to maintainadequate insurance mayresult in a default under ourdebt instruments. Brambles'computer systems, includingback up systems, aresubject to damage orinterruption from poweroutages, catastrophicevents, such as fires,tornadoes and hurricanes,and so on. Interruption orfailure of these systemscould impair our ability toprovide our serviceseffectively and materiallydamage our reputation andability to attract and retaincustomers.

investedcapital in andanticipatedprofits fromthe affectedproperty orassets.Damage tocomputer andback-upsystems mayrequiresignificantinvestment torepair orreplace, andwe may sufferinterruptionsthat adverselyaffectoperationaland financialperformance.Given therange ofpotentialscenarios, weare unable tomeaningfullyquantify theimplications.

and regulators (egUSA) is conducted. In2014, Bramblesexpanded naturalcatastrophe modellingwith its insurer. Wehave independent andphysically separateprimary and secondarycomputer systems, aswell as offsite storageand a disaster recoveryplan.

premiums arenot discloseddue tocommercialsensitivity.

Sea levelrise

Long term inundation risk ofports, low lying road andrail. Rising sea levels overtime may impact on port androad infrastructure and theability for our services toaccess transport on theaffected infrastructure.

Increasedoperational cost >6 years


Unknown Low

Given therange ofpotentialscenarios, weare unable tomeaningfullyquantify theactualfinancialimplications atthe currenttime.

Should over the mid tolong term the impactsof climate changeprompt the relocationof customers'operations, or thelocation of servedindustry sectors (suchas fresh produce), thenBrambles would needto consider the mostappropriate basis forservice continuity tothose customers orindustries.

Any risk andits potentialimplicationsare monitoredthrough ourriskmanagementprocesses.Noincrementalcost isassociatedwithmonitoringthis risk.

Inducedchanges innaturalresources

Risks to Brambles’ suppliersectors, such as transportand forestry. Changing andunstable weather patterns,such as temperatureincreases and limited rainfallcould generate moredrought incidences andpose challenges to rawmaterial and agriculturalsystems. Significantincreases in fuel prices maynegatively impact itsoperations. Bramblesdepends on the availabilityof natural resources, suchas lumber, fuel and plasticresin. Droughts may impacton the availability of lumberin certain regions for oursuppliers. In addition, risksto Brambles’ client sectors,such as food and agricultureand information technology,due to changing areas ofsuitable land, increasedincidence of pest anddisease, impacts onproduction, may impact ondemand for provision ofservices by Brambles'businesses. Fluctuations incommodity prices and rawmaterial availability mayaffect our operations,operating revenues andresults of operations. Wehave operations that aredirectly or indirectly exposedto volatility in costs of fuel,lumber, plastic resin andother raw materials thathave the potential to impactour operations and margins.While we generally sourcesupplies of raw materialsfrom a range of providers ineach geographic region, inAustralia we are dependenton a single local supplier forour lumber and plastic resinneeds. The failure to sourcesufficient lumber and otherraw materials required forthe production of pallets, at

Increasedoperational cost >6 years



Low

Impacts onraw materialsand fuel wouldlead toincreasedcosts forBrambles'businesses.Increases inoperatingcosts couldnegativelyimpact ourprofitability orcash flow.Bramblescould requiresubstantialcapitalexpenditure toadjust itsbusinessmodels tomeetdevelopments.Failure tosourcesufficientlumber andother rawmaterialsrequired forthe productionof pallets atacceptablecosts couldsignificantlyaffectBrambles'operations.Bramblesreportedoperatingexpenses(continuingoperations) ofUS$447.7 mon rawmaterials andconsumables,US$1,080.5 mon transport,and US$741.6m on repairsandmaintenancein FY15 (p 51

Because we recover,repair and allowcustomers to reuse ourproducts many times,we are able to reducedemand on resources.For eg, customers' useof pooled pallets savedat least 1,38 milliontrees in FY15 (see p 6of the SustainabilityReview 2015). Wereported 4,901 tonnesof wood reclaimed andreused by CHEP inFY15. (p 22Sustainability Review2015) 100% of plasticmaterial is recoveredfrom IFCO RPCs atend of life. Thisreduces our demandfor virgin plastic. InFY15, IFCO reusedmore than 17,000tonnes of plasticmaterial in themanufacture of newRPCs (p 19Sustainability Review2015) We generallysource supplies of rawmaterials from a rangeof providers in eachgeographic region;however, in Australiawe are dependent on asingle local supplier forour lumber and plasticresin needs. Shouldover the mid to longterm the impacts ofclimate change promptthe relocation ofcustomers' operations,or the location ofserved industry sectors(such as freshproduce), then

The cost ofrecoveringand reusingwood andplastic is notconsideredseparately, asit is aninherent partof ourbusinessmodel. Anyrisk and itspotentialimplicationsare monitoredthrough ourriskmanagementprocesses.Noincrementalcost isassociatedwithmonitoringthis risk.

acceptable costs and asrequired, could significantlyaffect our operations andadversely affect ourbusiness. In addition, anyincrease in the cost ofmaterials, such as timberand plastic resin, may alsoincrease our repair costs ofpallets, RPCs andcontainers.

of AnnualReport 2015)Given therange ofpotentialscenarios, weare unable tomeaningfullyquantify theactualfinancialimplications atthe currenttime.

Brambles would needto consider the mostappropriate basis forservice continuity tothose customers orindustries.

Otherphysicalclimatedrivers

Melting ice, rising sealevels, more frequent andsevere droughts and floods,change in temperatureextremes and averagetemperatures are part of theenvironmental changes thatbusinesses face and makesome of our customers (egfood industry) moreexposed than others.Current market issues thatcould support competitiveservice offerings include(among other things)changes in retailerbehaviour. Brambles notesindustry trends as a keyrisk, in particular in thecontext of a dynamicallychanging retailinglandscape and the ongoingglobalisation of many supplychains. (p 2 Annual Report2015) The physical impactsof climate change arepredicted to have the mostsignificant consequences inemerging economies, suchas those in Asia and Africa.This could have implicationsfor the viability of ourbusiness activities in theseregions. Operations in newforeign markets mayachieve low margins or maybe unprofitable, andexpansion in existingemerging markets may beaffected by local legal,political, economic andmarket conditions, includingfluctuations in prices forcommodities and rawmaterials. The impact ofnoted factors couldmaterially adversely affectour business, financialcondition and results ofoperations.

Reduced demandfor goods/services >6 years Direct


Low

The impact ofnoted factorscouldmateriallyadverselyaffect ourbusiness,financialcondition andresults ofoperations.[pp 30-31 ofOfferingMemorandum]Sales revenuefor FY15 wasreported atUS$5,464.6m.This includesrevenue fromour Pallets,Containersand RPCsbusinesses.Revenue fromRPCs (whichrelies on thefood andproduceindustry) wasUS$917.6m inFY15. Giventhe range ofpotentialscenarios, weare unable tomeaningfullyquantify theactualfinancialimplications atthe currenttime.

We conduct ongoingprograms to drivecustomer intimacythroughout the supplychain, includingretailers. Should overthe mid to long termthe impacts of climatechange prompt therelocation ofcustomers' operations,or the location ofserved industry sectors(such as freshproduce), thenBrambles would needto consider the mostappropriate basis forservice continuity tothose customers orindustries. The ChiefExecutive Officer,through the ExecutiveLeadership Team(ELT), has principalresponsibility for riskmanagement.Brambles operates acompany-wide riskmanagementframework, theobjectives of which areas follows: - Toincorporate effectiverisk management aspart of Brambles’strategic planningprocess; - To requirebusiness operatingplans to address theeffective managementof key risks; - Todevelop internal auditplans to concentrateefforts on providingassurance on theviability and value ofriskmitigation/managementprocesses; - To embeda stronger riskmanagement culture; -To improve allocationof capital to reflectbusiness risks; - Toseek competitiveadvantage throughincreased certainty ofachieving agreedorganisational andbusiness objectives;and - To continue tofulfil governancerequirements for riskmanagement. Forfurther information oncorporate governanceand risk management,please see theattached CorporateGovernanceStatement.


CC5.1cPlease describe your inherent risks that are driven by changes in other climate-related developments

Riskdriver Description

Potentialimpact

Timeframe

Direct/Indirect

Likelihood

Magnitudeof impact

Estimatedfinancial


management

Brambles'sales revenuein the 12months ended30 June 2015wasUS$5,464.6million(continuingoperations).Revenuespecifically

Brambles has arejuvenated sustainabilitystrategy and key brandprograms focused onleveraging inherentsustainability of Bramblesbusiness models anddriving new levels ofcustomer engagement.The targets Brambles sets

Reputation

Our customers and society ingeneral are increasinglyconcerned about andaddressing their own impactson climate change. Climatechange mitigation/adaptationand deforestation are ofincreasing concern tostakeholders, includingcustomers. Customer demandfor sustainable outsourcedsupply chain solutions and anintensifying competitiveenvironment is noted as a keyrisk. (p 2 Annual Report 2015)Reputational risk could arise bynot addressing ourenvironmental impacts andassisting customers' supplychains, especially as attentionextends to forest commoditiesand water. A lack oftransparency could lead tocustomers moving tocompetitors, undermining ourcredibility and value of ourbusiness brand. Reputationalrisk could arise if we are notseen to be addressing our ownimpacts on the environmentand assisting our customerswith their supply chain.

Reduceddemand forgoods/services

1 to 3years Direct


Low

specificallyrelated tomajorcustomers orcustomersengaged inour variouscustomer-focusedsustainabilityprograms (forexample, ourcarbon neutralprogram) isnot reporteddue tocommercialsensitivity. Wehave reportedincreasedcustomerinvolvement intheseprograms. Forexample, twonewcustomers ofCHEP Europesigned up toour carbonneutraloffering inFY15. Thereare a numberofparticipatingcustomers,includingSpadel, MSMand Heinz.Growth inrevenue forcarbon neutralproducts wassignificant in2015, up morethan 70% onthe previouscalendar year,following theintroduction ofthe firstcertifiedcarbon neutralplastic quarterpallet.

The targets Brambles setsare key drivers in ourefforts to continuouslyimprove and deliver moreefficient, safer andenvironmentallysustainable supply chains.Further commentary onmaterial sustainabilityissues, targets andprogress is in the 2015Sustainability Review.Brambles engages withcustomers on these issuesin various ways, forexample, we will respondto our customers Wal-Mart,Jaguar Land Rover,L'Oreal and Kellogg in2016 through the CDPsupply chainquestionnaire. CHEPEurope has continued togrow our carbon neutralofferings with customers.There are a number ofparticipating customers,including Spadel, MSMand Heinz. The quarterpallet carbon neutralproduct has beenextended to all Europeancountries in FY15, afterbeing introduced inGermany in FY14. CHEPalso worked with customerFrieslandCampina, atransporter and twosupermarket chains todevelop an optimaltransport schedule thatkeeps a compressednatural gas (CNG) truckfully loaded and on thesame efficient route,cutting CO2-e emissionsby about 20% (seeattached Belgian mediacoverage). CHEP is alsoworking with customerUnilever to enhance theimplementation of liquidnatural gas (LNG) fillingstations in Europe.

The costs ofmanagementactions toaddress ourenvironmentalimpact areembeddedwithin thebusiness andnot separatelyreported.

Fluctuatingsocio-economicconditions

The potential for increasedphysical effects on the marketswe serve could indirectly leadto reduced demand and widersocial disadvantages.Brambles reported risksassociated with externalfactors include the challengingmacro-economic environmentthat may affect demand forBrambles' services and/or theGroup's profitability (see p 5 ofthe Annual Report 2015). Ourglobal operations subject us toinherent risks, includingpolitical and economic risksand conditions specific to thecountries or regions in whichwe operate, which couldadversely affect our financialperformance.

Reduceddemand forgoods/services

>6 years Indirect(Client)


Low

Because thisis a long-termrisk withunpredictableimplicationsfrom climatechange, weare unable tomeaningfullyquantify theactualfinancialimplications atthe currenttime as itrelatesspecifically toclimatechange.

The Chief ExecutiveOfficer, through theExecutive LeadershipTeam (ELT), has principalresponsibility for riskmanagement. Bramblesoperates a company-widerisk managementframework, the objectivesof which are as follows: -To incorporate effectiverisk management as partof Brambles’ strategicplanning process; - Torequire business operatingplans to address theeffective management ofkey risks; - To developinternal audit plans toconcentrate efforts onproviding assurance on theviability and value of riskmitigation/managementprocesses; - To embed astronger risk managementculture; - To improveallocation of capital toreflect business risks; - Toseek competitiveadvantage throughincreased certainty ofachieving agreedorganisational andbusiness objectives; and -To continue to fulfilgovernance requirementsfor risk management. Forfurther information oncorporate governance andrisk management, pleasesee the attachedCorporate GovernanceStatement.


Exclusion from ethical/greeninvestment funds and otherimpacts. Brambles is subject tothe risk that negative publicity,

Bramblesmarketcapitalisation

Brambles seeks tominimise this risk throughits sustainability strategy,including targets to reduceits impact on the

environment (including

Reputation

the risk that negative publicity,whether true or not, may affectstakeholder perceptions ofBrambles' past actions andfuture prospects. Bramblescould face reputationaldamage that affects its shareprice through exclusion fromethical/green investment funds,including superannuation fundsin Australia that increasinglyconsider sustainabilityinitiatives of the companiesthey invest in. If Brambles doesnot effectively communicate tothe market this may lead to aloss of investor confidence inthe business and itsmanagement and reducedshare price performance.

Reduced stockprice (marketvaluation)

>6 years Direct Unlikely Unknown

capitalisationas at 30 June2015 wasA$16.6 billion.Thepercentage ofshares heldbyethical/greeninvestmentfunds is notknown. A listof the twentylargestordinaryshareholdersis on p 36 ofthe AnnualReport 2015.

environment (includingemissions reductions).Brambles annual reportingon progress regularlyprovides communication tothe investment communityto alleviate this risk.Brambles considerssustainability throughout itsbusiness operations,including through its Codeof Conduct and Zero HarmCharter. Bramblesresponded to investorrequests regardingenvironmentalmanagement andperformance in FY15,including through the CDPinvestor response, DowJones Sustainability Indexand its SustainabilityReview (attached).


Further Information

Attachments

https://www.cdp.net/sites/2016/16/2116/Climate Change 2016/SharedDocuments/Attachments/ClimateChange2016/CC5.ClimateChangeRisks/Brambles_2015_Annual_Report_Final.pdfhttps://www.cdp.net/sites/2016/16/2116/Climate Change 2016/SharedDocuments/Attachments/ClimateChange2016/CC5.ClimateChangeRisks/Brambles_2015_Corporate_Governance_Statement.pdfhttps://www.cdp.net/sites/2016/16/2116/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC5.ClimateChangeRisks/Green marketing and the ACL.pdfhttps://www.cdp.net/sites/2016/16/2116/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC5.ClimateChangeRisks/CHEP receives ECR Award -transport online (Benelux).pdfhttps://www.cdp.net/sites/2016/16/2116/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC5.ClimateChangeRisks/150915 Brambles Investment MarketBriefing.pdfhttps://www.cdp.net/sites/2016/16/2116/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC5.ClimateChangeRisks/Zero Harm Charter (Feb 2013)ENGLISH.pdfhttps://www.cdp.net/sites/2016/16/2116/Climate Change 2016/SharedDocuments/Attachments/ClimateChange2016/CC5.ClimateChangeRisks/kpmg_a2_brambles_limited_assurance_report_fy15.pdfhttps://www.cdp.net/sites/2016/16/2116/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC5.ClimateChangeRisks/CHEP receives ECR Award -logistiektotaal (Benelux).pdfhttps://www.cdp.net/sites/2016/16/2116/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC5.ClimateChangeRisks/2015_Sustainability_Review.pdf

Page: CC6. Climate Change Opportunities

CC6.1Have you identified any inherent climate change opportunities that have the potential to generate a substantive change in your business operations, revenue or expenditure? Tick allthat apply

Opportunities driven by changes in regulationOpportunities driven by changes in physical climate parametersOpportunities driven by changes in other climate-related developments

CC6.1aPlease describe your inherent opportunities that are driven by changes in regulation

Opportunitydriver Description Potential impact Timeframe Direct/Indirect Likelihood Magnitude

of impact

Estimatedfinancial

implications

Managementmethod

Cost ofmanagement

Brambles works with customersand suppliers directly, using ourlogistics knowledge, to helpcustomers understand theirsupply chains and minimise theirenvironmental footprint.Regulation and taxes on fuelcould lead to a greater interest inour pooled products. Forexample, in FY15, we reducedtransport distances by 42 million

In FY15,CHEP USA'scustomerswere able togenerateUS$6.1 m inincrementalrevenue andeliminate anestimated 9.5m kms injourneys,reducingassociatedfuel costs. InNorthAmerica, amajor retailercollaboratedclosely withCHEP to applythe newtransportationsolution and isprojected to fillalmost onemillion emptytrailer miles in2015,generatingUS$2.5 m inincrementalrevenue.Similarly, threemajor groceryretailers usingthe unit loadoptimisation

Bramblesworks toreduce itsenvironmentalfootprint byusing ourlogisticsknowledge tominimise thefootprint of itscustomersand thesupply chainthroughnetworkoptimisation,improvingtransportefficiencies,transportcollaboration,Total PalletManagementandmultimodal(use of road,rail and sea)programs,which reducetransportdistances andassociatedemissions.(see pp 6-9,21 of the2015SustainabilityReview).Brambles metour target of

Allopportunitiesand theirpotentialimplicationsareinvestigatedthrough our

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC5.ClimateChangeRisks/Brambles_2015_Annual_Report_Final.pdf

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC5.ClimateChangeRisks/Brambles_2015_Corporate_Governance_Statement.pdf

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC5.ClimateChangeRisks/Green%20marketing%20and%20the%20ACL.pdf

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC5.ClimateChangeRisks/CHEP%20receives%20ECR%20Award%20-transport%20online%20(Benelux).pdf

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC5.ClimateChangeRisks/150915%20Brambles%20Investment%20Market%20Briefing.pdf

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC5.ClimateChangeRisks/Zero%20Harm%20Charter%20(Feb%202013)%20ENGLISH.pdf

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC5.ClimateChangeRisks/kpmg_a2_brambles_limited_assurance_report_fy15.pdf

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC5.ClimateChangeRisks/CHEP%20receives%20ECR%20Award%20-logistiektotaal%20(Benelux).pdf

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC5.ClimateChangeRisks/2015_Sustainability_Review.pdf

Fuel/energytaxes andregulations

kilometres by collaborating withover 150 customers. In the US,fleet optimisation helpscustomers increase productivity,earn revenue and reduce emptymiles by hauling CHEP'sbackhaul freight. CHEPAerospace Solutions replacedaround 5,500 heavyweightaluminium containers with lighterweight units in FY15. Theaverage weight reduction percontainer of 20 kg significantlyreduced fuel costs for our airlinecustomers. (see 2015Sustainability Review) Any newor extended fuel taxes orregulation will allow Bramblesbusinesses to expand work withcustomers and supply chain toreduce transport distances andassociated costs and emissions.

Increaseddemand forexistingproducts/services

Up to 1year

Indirect(Supply chain)

More likelythan not Low

solutionreduceddamage attheirdistributioncentres andeach saidabout$300,000throughouttheir supplychains. (see2015SustainabilityReview, pp 6-9). While theexact financialimpact of theopportunity toBramblesthroughincreasedcustomerrevenue is notreported,BramblesreportedUS$5,464.6 min salesrevenue inFY15. (p 72015 AnnualReport)Reducingtransportdistances alsoreducesBrambles'associatedtransportcosts. Thesewere reportedat US$1,080.5m in FY15, asmalldecrease fromFY14 (p 512015 AnnualReport).

20% lessGHGemissions on2010 levelsahead of timein FY13. InFY15,retained in-scope CHEPsitesachieved a20.5%reductionfrom 2010emissionlevels.Bramblesannouncednew targetsfor reducingemissionsand increasedrenewableenergy use in2016.Installation ofmore energyefficientequipmentrewardscontinuousimprovementin ourequipmentupgrades andenergy usagethroughreducedoperationalcosts.Reducingenergy use isa keycomponent ofemissionsreductionsactivities,subsequentlyreducingenergy costs.

operationalprocesses.Noincrementalcost isassociated.Operatingexpenseinformation isreported inBrambles2015 AnnualReport, p 51.Totaloperatingexpenses forFY15 wereUS$892.8million.

Cap andtradeschemes

Cap and trade schemes presentincentives to cutting GHGemissions cost-effectivelythrough energy efficiency,promoting energy efficientequipment, renewablealternatives, etc, and makingthese cheaper due to increasedmarket demand. The move tomore energy efficient equipmentrewards continuousimprovement in our equipmentupgrades and energy usagethrough reduced operationalcosts. While Bramblesbusinesses do not currentlyparticipate in an emissionstrading or cap and tradeschemes, these may affect us infuture if they are adopted orexpanded in countries where weoperate.

Reducedoperational costs

Up to 1year Direct


Low

Reducingenergy use isa keycomponent ofemissionsreductionsactivities,subsequentlyreducingenergy costs.Energy costsare included inour annualfinancialreporting. InFY15, despitea 8% increasein salesrevenue (inconstantcurrency),occupancycosts (whichinclude energycosts at manysites)decreased byUS$7.0 million(approximately3% fromFY14).Decreasedenergy usemay contributeto loweroccupancycosts.

Brambles metour target of20% lessGHGemissions on2010 levelsahead of timein FY13. InFY15,retained in-scope CHEPsitesachieved a20.5%reductionfrom 2010emissionlevels.Bramblesannouncednew targetsfor reducingemissionsand increasedrenewableenergy use in2016.

The cost ofinstallingenergyefficientequipment isnot reportedseparately inour financialreporting;however,would beincluded inthe relevantexpenses orcapital costsin our 2015AnnualReport.

While theexact financialimpact of theopportunity toBramblesthroughincreasedcustomerrevenue bythoseinterested intheenvironmentalbenefits ofpooling is notreported,Brambles

Brambles'businessmodel isinherentlysustainable.Because werecover,repair andallow

Productlabellingregulationsandstandards

New regulations and initiatives toprovide environmentalcommunication to consumersare expected in some countries(eg EU, France, Belgium,Sweden, Germany, Greece,China, Thailand, Japan, Mexico).This will mean FMCG customerswith high awareness of climatechange will be looking to reducethe entire life cycle impact oftheir products. Product labellingrequirements present anopportunity for Brambles'businesses to demonstrate thereduction in environmentalimpact from using poolingsolutions. Some of Brambles'customers that havedemonstrated an interest inreducing the environmentalimpact of their supply chainsinclude L'Oreal, Jaguar LandRover, Walmart and Kelloggs(though their CDP supply chainrequests), as well as thoseparticipating in our carbonneutral program (includingHeinz, MSM, Spadel, Henkeland Unilever (see attachedannouncements). Movingcustomers from one waysystems to our pooled solutionsdelvers measurableenvironmental benefits forcustomers. In FY15, customers'use of reusable plastic crates(RPCs) instead of cardboardboxes and pooled pallets savedCO2-e emissions, trees, waterand reduced waste (see figuresin 2015 Sust Review, p 6)Brambles allows customers tobetter measure the impact oftheir product life cycle and assistwith data required for labellingand other environmentalregulations.



certainLow-medium

reportedUS$5,464.6 min salesrevenue inFY15. (p 72015 AnnualReport). Thenumber ofcustomersparticipating inthe carbonneutral palletprogramcontinues togrow eachyear, with twonewcustomerssigning up inFY15.Revenue fromthe carbonneutralprogramoffered inEurope isincluded in theUS$1,380.5 msales revenuereported forPallets EMEA(an increaseof 5% fromFY14 inconstantcurrency).(see p 102015 Annualreport) Growthin revenue forcarbon neutralproducts wassignificant in2015, up morethan 70% onthe previouscalendar year,following theintroduction ofthe firstcertifiedcarbon neutralplastic quarterpallet.Bramblesdoes notreport revenuefrom specificcustomers forreasons ofcommercialsensitivity.CHEP hasoffered itscarbon neutralprogram inEurope since2013.

customers toreuse ourproductsmany times,we are able toreducedemand onresourcesand waste.The CHEPcarbonneutralprogramallowscustomers tooffset thefootprint oftheir CHEPpalletmovementsand purchaseinternationallyrecognisedVCS-certifiedcarbon creditsinreforestationprojects indevelopingcountries. In2014, CHEPEuropeannouncedthat its palletpool inSweden wascarbonneutral. InJuly 2014,CHEPintroduced anewgenerationplastic quarterpallet, the firstcertifiedcarbonneutralproduct.Furtherinformationon carbonneutralprogram andpallets isavailable inthe 2015SustainabilityReview, pp 6,8.

Managementof customersand accountsis conductedthroughnormalaccountmanagementprocesses.Noincrementalcost isassociated.Operatingexpenseinformation isreported inBrambles2015 AnnualReport, p 51.Totaloperatingexpenses forFY15 wereUS$892.8million.

CC6.1bPlease describe the inherent opportunities that are driven by changes in physical climate parameters

Opportunitydriver

Description Potential impact Timeframe

Direct/Indirect

Likelihood

Magnitudeof impact

Estimatedfinancial

implications

Managementmethod Cost of management

Brambles businesseshave demonstrated theirability to respond to

Bramblesbusinesseshavedemonstratedtheir ability torespond tocustomerneeds insituationssuch asextremeweatherevents. Forexample, In2012, ouroperationswereimpacted bythe extensiveflooding inThailand, butsuffered nosignificantasset lossesor businessinterruptions.CHEP wasable tocontinue

Otherphysicalclimateopportunities

customer needs insituations that may arisedue to climate change,such as extreme weatherevents. Climate changeand environmental issuesare top on the agenda fora number of multinationalcustomers that carefullyassess the impacts ofphysical events due toclimate change. Forexample, Nestle,Unilever, Procter &Gamble and Jaguar LandRover are some of ourcustomers whodemonstrate this concernby participating in theCDP, some achievingleadership status,



certain Low

Bramblesdoes notreport thevalue ofindividualcontracts dueto commercialsensitivity.BramblesreportedUS$5,464.6 min salesrevenue inFY15. (p 72015 AnnualReport)

servicingcustomersthroughoutthe period.Bramblesbusinesseshave anextensivenetwork ofservicecentres anduses manyoutsourcedservicecentres. Thisprovidesthem with agreat deal offlexibility toadjust thenetwork tomeetchangingcustomerneeds or toreduce oroptimisetransportcosts. Thebenefits ofour serviceand businessmodel arealso moreattractive toexisting andpotentialcustomers asthey addressthe impactsof energy,packagingand wasteregulationand reportingon theirbusinesses.

The costs of productdevelopment are notseparated out forenvironmental orsustainability projects. Allopportunities and theirpotential implications areinvestigated through ouroperational processes. Noincremental cost isassociated with monitoringthese. Operating expenseinformation is reported inBrambles 2015 AnnualReport, p 51. Totaloperating expenses forFY15 were US$892.8million.

Change intemperatureextremes

Changing climacticconditions allow Bramblesbusinesses to developproducts to help theircustomers withstandthese conditions faced intransportation, such asinternational shipping.Several productdevelopments addresscustomers’ needs torespond to changingclimate patterns andtemperature extremeswith an environmentallyfriendly solution. For eg,CHEP introduced itsreusable automotiveinternational shippingcontainer IcoQube inSeptember 2012, whichensures greaterprotection for goodsduring shipment,completely fills a standardsea container andsignificantly reduces thewaste associated withtraditional packaging. Itimproves CHEP’s abilityto solve importantautomotive supply chainissues, including theextreme climateconditions and high levelsof humidity found insidesea vessels, for examplewhen crossing theequator (see attachedproduct info on IcoQube).CHEP and IFCO alsowork with customers toimprove thetransportation of food,which is more vulnerableto temperate extremesand changes intemperature. For eg,IFCO's egg crateimproves the protectionand handling of eggs andhelps to reduce brokeneggs by up to 66%. Thecrate ventilation allows forfaster coolingperformance for betterquality and freshness.(see 2015 Sust Review, p

Newproducts/businessservices


certain Low

Bramblesdoes notreport thevalue ofindividualcontracts orproducts dueto commercialsensitivity.BramblesreportedUS$5,464.6 min salesrevenue inFY15. (p 72015 AnnualReport) CHEPAutomotive isa part of theContainersbusiness,which reportedUS$465.5million in salesrevenue inFY15, up 31%from FY14 (inconstantcurrency).(see 2015AnnualReport, p 11)

Bramblesconductsproductdevelopmentand testing.OurInnovationCenter inOrlando,Florida, aworld-classproducttesting andengineeringfacility,supportedmore than 80projects inFY15. Fiveinnovativepallet typesweredesigned orevaluatedand 36 woodspeciestested.Furtherinformation isprovided inthe 2015SustainabilityReview, p 8.We report onnew productdevelopmentregularly.

The costs of productdevelopment are notseparated out forenvironmental orsustainability projects. Allopportunities and theirpotential implications areinvestigated through ouroperational processes. Noincremental cost isassociated with monitoringthese. Operating expenseinformation is reported inBrambles 2015 AnnualReport, p 51. Totaloperating expenses forFY15 were US$892.8million.

8)

Inducedchanges innaturalresources

Climate change willimpact agricultural andforestry systems. Thesecure supply of wood iscritical to Brambles.CHEP uses timber tomake and repair reusablepallets in our poolingsystem. We work withsuppliers in timber(development), securinglonger term supply of rawmaterials. This improvesour competitiveopportunity in creatingreliable supply of highquality raw materials thatmay be impacted bychanges in temperaturepatterns. We alsominimise ourenvironmental footprint.Because we recover,repair and allowcustomers to reuse ourpooled products manytimes, we are able toreduce demand onresources and waste.Customers' use of pooledlumber pallets saved atleast 1.38 million trees inFY15. (see 2015 SustReview, p 6) As a credibleand trusted partner in ourcustomers' supply chains,we aim to continuouslyimprove the way wesource materials.Through proactiveengagement with oursuppliers and customers,we seek to positivelyinfluence andsubsequently improve oursupply chain, includingtimber. Brambles has atarget of achieving chainof custody certification for100% of all timberpurchased, workingtowards the aspiration ofzero deforestation (seeattached). According toCDP Forests,deforestation accounts forapproximately 10-15% ofthe world’s greenhousegas emissions, equivalentto the entire transportsector. We continue tolook for opportunities toovercome challenges tothe supply of pallet-gradechain of custody certifiedtimber in all regions. (seeSust Review, pp 17-18)

Other: Supplychain adaptation >6 years


Low

Bramblesworks withsuppliers inachievingsustainabilityoutcomes aspart of generalprocurementpractice. Thevalue ofindividualcontracts isnot reporteddue tocommercialsensitivity. InFY15,Bramblespurchased 2.3m cubicmetres ofwood for usein CHEPpooled pallets(2.2 m cubicmetres inFY14).Certifiedtimber maycarry a pricepremium. Foreg, accordingto FSC, one ofthe acceptedcertificationstandards,"Depending onthe operation,pricepremiums forFSC-wood,particularlyfrom thetropics, rangefrom 15 to25%." (seeattached)However, ourwork withsuppliers intimberdevelopmentsecures longerterm supply.This improvescompetitiveopportunity.The cost oftimber to thebusiness iscaptured infinancialreporting forcapitalexpenditure(purchase ofnewlymanufacturedpallets) andoperatingexpense (rawmaterials andconsumables).(see pp 50-51of the 2015AnnualReport. Totalcapex forFY15 wasUS$1,036.6 mand rawmaterials andconsumablesexpenseswereUS$447.7 m.

In order toachieveimprovementandpromotion ofresponsibleandsustainableprocurementof timber,Bramblescontinues towork withstrategicsuppliers tofurtherincrease theavailablesupply ofchain ofcustodycertifiedtimber. Atarget ofachievingchain ofcustodycertificationfor 100% oftimber hasbeen set, toprovide afocus for thecontinualimprovementandpromotion oftheresponsibleandsustainableprocurementof timber (seeBetter PlanetGoalsattached). InFY15,Bramblespurchased2.3 millioncubic metresof wood foruse in CHEPpooledpallets. Ofthe woodpurchased inFY15, 97%was fromcertifiedsources, with43% carryingchain ofcustodycertification.Bramblesreports itstimbersourcingthrough CDPForests,achievingsectorleadership inrecognition ofits efforts.

The costs of procurementpractices, such as supplierprograms, is not separatedout forenvironmental/sustainabilityprojects and managedthrough operationalprocesses. No incrementalcost is associated withthese. Operating expenseinformation is reported inBrambles 2015 AnnualReport, p 51. Totaloperating expenses forFY15 were US$892.8million.

CC6.1cPlease describe the inherent opportunities that are driven by changes in other climate-related developments

Opportunitydriver

Description Potential impact Timeframe

Direct/Indirect

Likelihood

Magnitudeof impact

Estimatedfinancial

implications

Managementmethod

Cost ofmanagement

Bramblesdoes notreport thevalue ofindividualcontracts dueto commercialsensitivity.While theexact

Brambles'businessmodel isinherentlysustainable.Because werecover, repairand allow

Changingconsumerbehaviour

Climate change and environmentalissues are top on the agenda for anumber of multinational customers.Some of Brambles' customers thathave demonstrated an interest inreducing the environmental impact oftheir supply chains include L'Oreal,Jaguar Land Rover, Walmart andKelloggs (though their CDP supplychain requests), as well as thoseparticipating in our carbon neutralprogram (including Heinz, MSM,Spadel, Henkel and Unilever (seeattached announcements). Movingcustomers from one way systems toour pooled solutions deliversmeasurable environmental benefits forcustomers. In FY15, customers' use ofreusable plastic crates (RPCs) insteadof cardboard boxes and pooled palletssaved CO2-e emissions, trees, waterand reduced waste (see figures in2015 Sust Review, p 6) Bramblesallows customers to better measurethe impact of their product life cycle.The benefits of Brambles' productsand business model are moreattractive to existing and potentialcustomers as they address theimpacts of energy, packaging andwaste on their businesses and seek tolimit deforestation in their supplychains. The environmental benefits ofpallet pooling were highlighted inmedia around customer contracts wonor extended in FY15, furtherdemonstrating customer recognition.(see attached media for someexamples and quotes in attachedInvestment Market Briefing p 57, 81)


Up to 1year Direct Very likely Low-

medium

financialimpact of theopportunity toBramblesthroughincreasedcustomerrevenue is notreported,BramblesreportedUS$5,464.6m in salesrevenue inFY15. (p 72015 AnnualReport)Revenue fromthe carbonneutralprogramoffered inEurope isincluded intheUS$1,380.5m salesrevenuereported forPallets EMEA(an increaseof 5% fromFY14 inconstantcurrency).(see p 102015 Annualreport)Growth inrevenue forcarbonneutralproducts wassignificant in2015, upmore than70% on thepreviouscalendar year,following theintroduction ofthe firstcertifiedcarbonneutral plasticquarter pallet.

customers toreuse ourproducts manytimes, we areable to reducedemand onresources andwaste. TheCHEP carbonneutralprogramallowscustomers tooffset thefootprint oftheir CHEPpalletmovementsand purchaseinternationallyrecognisedVCS-certifiedcarbon creditsin reforestationprojects indevelopingcountries. In2014, CHEPEuropeannouncedthat its palletpool inSweden wascarbon neutral.In July 2014,CHEPintroduced anewgenerationplastic quarterpallet, the firstcertifiedcarbon neutralproduct.Furtherinformation oncarbon neutralprogram andpallets isavailable in the2015SustainabilityReview, pp 6,8.

The costs ofproductdevelopmentare notseparated outforenvironmentalorsustainabilityprojects. Thecost of carboncredits as partof the carbonneutral palletprogram arepassed on tocustomersdirectly. Allopportunitiesand theirpotentialimplicationsareinvestigatedthrough ouroperationalprocesses. Noincrementalcost isassociatedwithmonitoringthese.Operatingexpenseinformation isreported inBrambles2015 AnnualReport, p 51.Totaloperatingexpenses forFY15 wereUS$892.8million.

Climate change and environmentalissues are important to many

Bramblesdoes notreport thevalue ofindividualcontracts dueto commercialsensitivity.While theexactfinancialimpact of theopportunity toBramblesthroughincreasedcustomerrevenue is notreported,Brambles

Climatechange andenvironmentalissues are thefocus of manycompanies,keen toaddress supplychain impacts.This includesBrambles'customers andpotentialcustomers.Through oursupply chainpackagingsolutions,pallets, cratesand containersare reusedcontinuously,reducingconsumptionand rawmaterial waste,while anoptimisednetworkincreasesefficiency andreducestransportemissions.Increasedawareness ofsustainabilityissuespresentsopportunity forthe benefits ofexistingproducts to berecognisedand formallymeasured.There wasextensivemedia

Reputation

multinational companies, includingthose who are customers or arepotential customers, and otherstakeholders, such as investors andproviders of capital. The benefits ofBrambles' products and its businessmodel are more attractive to existingand potential customers as theyaddress the impacts of energy,packaging and waste regulation andreporting on their businesses and seekto limit deforestation in their supplychains. The environmental benefits ofpallet pooling were highlighted inmedia around customer contracts wonor extended in FY15, demonstratingcustomer recognition. (see attachedmedia for a few egs) Inclusion inethical/green investment funds andsustainability indices can also be aresult of recognition of soundsustainability policies andperformance. improving reputation withcustomers and investors. Brambleswas acknowledged as a SustainabilityLeader by the Dow JonesSustainability Index/RobecoSAM in2015 and 2016 and also listed on theDJSI World Index (see attacheddocuments).


Up to 1year Direct Very likely Low-

medium

reportedUS$5,464.6m in salesrevenue inFY15. (p 72015 AnnualReport)Bramblesmarketcapitalisationas at 30 June2015 wasA$16.6 billion.Thepercentage ofshares heldbyethical/greeninvestmentfunds is notknown. A listof the twentylargestordinaryshareholdersis on p 36 ofthe AnnualReport 2015.TheAdvertisingValueEquivalency(AVE)associatedwith mediacoverage oftheenvironmentalbenefits ofBramblespooledproducts forFY15 wasapproximatelyUS$1.62million,including alllanguages.

coverageduring FY14 ofcustomersadopting ourpoolingsolutionsrelated toenvironmentalbenefits,includingreducedemissions (seeattached). Inaddition,Brambles’focus onaddressing itsownenvironmentalfootprint andsupply chain(for eg, byworkingtowards its2015 target ofchain ofcustodycertification forlumberpurchased forCHEP palletmanufacture,reducing GHGemissions by20%, removinglumber wastefrom landfill,improvingrecycling, etc)could lead tobroadreputationgains. Beingrecognisedthroughexternalprograms,such as CDPand DJSI(2013 CDPForests sectorleader andbeing listed onthe DJSI Worldindex, seeattached)means we areclearlycommunicatingourperformanceand actions onclimate changetostakeholders,includinginvestors. Agoodreputationcould alsoimpact ourability to recruitemployeescommitted toourenvironmentalactions.

Allopportunitiesand theirpotentialimplicationsareinvestigatedthrough ouroperationalprocesses. Noincrementalcost isassociatedwithmonitoringthese.Operatingexpenseinformation isreported inBrambles2015 AnnualReport, p 51.Totaloperatingexpenses forFY15 wereUS$892.8million.

Increasing constraints on carbonemissions and amplified scarcity ofresources are issues that are critical toour customers. Brambles is focused onreducing waste in customers' supplychains and the pressure on rawmaterials. Food waste in particular isan issue that generates wastage ofresources, including water, energy andsuperfluous GHG emissions, andreduced supply of agriculturalmaterials, which is particularlyimportant to our customers. For eg, intheir 2015 CDP response, Nestleestimated the financial implication offood loss and waste in their supplychain at CHF 70 million a year inincreasing costs. Nestle has pledged

Bramblesdoes notreport thevalue ofindividualcontracts dueto commercialsensitivity.

Bramblesapplies ourlogistics andsupply chainexpertise byworking withour customersand retailers toreduce foodloss andwaste, as wellas in our ownproductdevelopment.CHEP andIFCO areworking withUnilever on thedevelopmentof returnablepackagingsolutions thatreplace singleuse cardboardfor FMCGproducts,reducing food

Other drivers

to reduce food loss and waste (seeattached article). It is estimated thatbetween one third and one half of thefood produced by the developed worldis lost post-harvest between the farmand consumer. Brambles recognisesthat by applying our logistics andsupply chain expertise we are uniquelyplaced to help reduce food wastethroughout the value chain. Workingwith our customers and retailers inFY15, we reduced food waste by morethan 3,000 tonnes (see 2015 SustReview, p 6). We do this bycollaborating with customers andretailers, as well as in our own productdevelopment. Problems associatedwith multiple handling, spoilage anddamage during transportation tomanufacturers, markets andconsumers result in significantamounts of food waste. Bramblesreduces food waste and loss throughour innovative pooled products andlogistics services. A good example isour Reusable Plastic Crates (RPCs).RPCs by design protect fresh producein transit and reduce or eliminate theamount of handling from the farmpaddock to retailer, manufacturer orcharity. This ensures more food arrivesin good condition and less food iswasted. Brambles has createdopportunities for international non-profit organisation Enactus and theWorld Economic Forum, focusing onreducing food loss and waste. For eg,Enactus will be engaged in potentialfood loss and waste projects in Africa.We recently announced newcommunities goals, with a commitmentto supporting food security and foodwaste initiatives (see BetterCommunities Goals). In March 2013,Brambles joined the World EconomicForum as a partner and became asteering committee member of theForum's food waste project.

Wider socialbenefits >6 years Indirect

(Client)More likelythan not Low

Bramblesdoes notestimaterevenuegrowth forcustomersadoptingpurely toreduce foodwaste.BramblesreportedUS$5,464.6m in salesrevenue inFY15. (p 72015 AnnualReport)RPCs, whichparticularlyreduce foodwaste throughinnovativeproductdesign,reportedsales revenueof US$917.6million inFY15 (up12% inconstantcurrency fromFY14 - see p10 of the2015 AnnualReport).

loss andwaste. One ofour keycommunitypartnerships iswith foodbanks aroundthe world.Working withfood banks notonly providesassistance tocommunitygroups andcharitiesworking withthose lessfortunate, but italso helps toreduce foodwaste bydivertingusableproducts fromlandfill (see2015 SustReview p 26).Brambles andUnileverworked on aWEF project inFY14 thataddressedsupply chainbarriers inIndia's tomatofresh producesector, whichexperienceslosses duringharvest,transport andatmarketplacesof about 25%.Unilever andRPCs arecollaboratingon a pilot totest solutionsand evaluateimpacts o foodloss. (seeSustainabilityReview 2014,p 24).

Allopportunitiesand theirpotentialimplicationsareinvestigatedthrough ouroperationalprocesses. Noincrementalcost isassociatedwithmonitoringthese.Operatingexpenseinformation isreported inBrambles2015 AnnualReport, p 51.Totaloperatingexpenses forFY15 wereUS$892.8million.

Increasinghumanitariandemands

From time to time, Brambles'businesses provide pallets, RPCs andcontainers free of charge to transportemergency supplies for relief efforts intimes of disaster.Brambles alsopartners with food banks around theworld to provide assistance tocommunity groups and charitiesworking with those less fortunate (see2015 Sust Review, p 26) In addition,Brambles' businesses have assistedagencies providing humanitarian aidwith analysis of their supply of goodsthrough our logistics knowledge. Foreg, in FY15, CHEP worked with theUNHCR to improve the delivery of lifesaving refugee aid (see UNHCRattachment). CHEP is performing anin-depth study of the UNHCR globalsupply chain network. CHEP's PlantNetwork Optimisation Team in the USis reviewing the current state ofUNHCR resources to reduce the leadtime required to service refugeecamps. The UNHCR study involves

Wider socialbenefits


certain Low

While theexactfinancialimpact of theopportunity toBramblesthroughincreasedcustomerrevenue is notreported,BramblesreportedUS$5,464.6m in salesrevenue in

Bramblespartners withlocal andglobalorganisationsby providingequipmentsuch aspallets,ReusablePlastic Crates(RPCs) andcontainers aswell as theexpertise ofour people.IFCO'sWorldwideResponsibilityProgramshares itsexpertise incollecting andtransportingfruit andvegetableswith foodbanks aroundthe world.CHEP isengaged in aEuropeanproject toincrease ourcollaborationwith foodbanks in themajority of thecountries inwhich weoperate. Aswell as acooperationagreementwith theEuropeanFederation ofFood Banks,

Bramblesreported in-kinddonations ofpallets, cratesand servicesto the value ofUS$1,450,000in FY15. Thevolunteeringvalueprovided byBrambles'employees inFY15 wasUS$290,000.(see 2015Sust Review p26) The costof managingcommunitypartnershipsand otherprograms isnot reportedseparately;however, thiswould be

multi-country, air, sea and roadtransportation and multiple datasources, factors which greatly increasethe scale and complexity of the study.(further info reported in the 2015 SustReview, p 28) Brambles partners withcommunity organisations and charitiesworking with those less fortunate,providing equipment such as pallets,Reusable Plastic Crates (RPCs) andcontainers, as well as the expertise ofour people.

FY15. (p 72015 AnnualReport)

CHEP teamsare workingwith local foodbanksprovidingvolunteeringtime, supplychain expertiseand in-kinddonation ofequipment. Weprovide skilledand un-skilledvolunteerlabour to helpour charitieswithrequirementsranging fromlogisticsplanning andnetworkcollaborationto packingfood hampersfor those inneed.Bramblesallows threedaysvolunteeringleave to allpermanentemployeeseach year.

included inthe operatingexpenseinformationreported inBrambles2015 AnnualReport, p 51.Totaloperatingexpenses forFY15 wereUS$892.8million.

Further Information

Attachments

https://www.cdp.net/sites/2016/16/2116/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC6.ClimateChangeOpportunities/Gerber Juice and CHEPCollaboration' Environment Times (UK).pdfhttps://www.cdp.net/sites/2016/16/2116/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC6.ClimateChangeOpportunities/Henkel sustainability andcost benefits offered by pallet pooling.pdfhttps://www.cdp.net/sites/2016/16/2116/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC6.ClimateChangeOpportunities/150915 Brambles InvestmentMarket Briefing.pdfhttps://www.cdp.net/sites/2016/16/2116/Climate Change 2016/SharedDocuments/Attachments/ClimateChange2016/CC6.ClimateChangeOpportunities/Brambles_2015_Annual_Report_Final.pdfhttps://www.cdp.net/sites/2016/16/2116/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC6.ClimateChangeOpportunities/Brambles included forsecond year in the Dow Jones Sustainability World Index Logistics Materials Handling.pdfhttps://www.cdp.net/sites/2016/16/2116/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC6.ClimateChangeOpportunities/UNHCR - UNHCR and CHEPto improve delivery of life-saving refugee aid with supply chain study.pdfhttps://www.cdp.net/sites/2016/16/2116/Climate Change 2016/SharedDocuments/Attachments/ClimateChange2016/CC6.ClimateChangeOpportunities/2015_Sustainability_Review.pdfhttps://www.cdp.net/sites/2016/16/2116/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC6.ClimateChangeOpportunities/CHEP And Conad joinForces To Reduce The CO2 Emisions-Trasportonline (Italy).pdfhttps://www.cdp.net/sites/2016/16/2116/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC6.ClimateChangeOpportunities/Pledging to reduce food lossand waste Nestle .pdfhttps://www.cdp.net/sites/2016/16/2116/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC6.ClimateChangeOpportunities/Henkel signs $600k contractwith CHEP.pdfhttps://www.cdp.net/sites/2016/16/2116/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC6.ClimateChangeOpportunities/Press Release Bramblesincluded for its second year in the Dow Jones Sustainability World Index.pdfhttps://www.cdp.net/sites/2016/16/2116/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC6.ClimateChangeOpportunities/Better Planet Goals.pdfhttps://www.cdp.net/sites/2016/16/2116/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC6.ClimateChangeOpportunities/DJSI Sustainability YearbookCommercial Services and Supplies RobecoSAM Sustainability Yearbook 2016.pdfhttps://www.cdp.net/sites/2016/16/2116/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC6.ClimateChangeOpportunities/CHEP CarbonNeutral fromNatural Capital Partners.pdfhttps://www.cdp.net/sites/2016/16/2116/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC6.ClimateChangeOpportunities/FSC media release.pdfhttps://www.cdp.net/sites/2016/16/2116/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC6.ClimateChangeOpportunities/CHEP Helps SwedishCustomers Reduce Footprint.pdfhttps://www.cdp.net/sites/2016/16/2116/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC6.ClimateChangeOpportunities/Automotive InternationalShipping Container IcoQube.pdfhttps://www.cdp.net/sites/2016/16/2116/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC6.ClimateChangeOpportunities/CHEP’s Carbon NeutralProgram Set to Reduce Water Bottler’s Carbon Footprint.pdfhttps://www.cdp.net/sites/2016/16/2116/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC6.ClimateChangeOpportunities/Better CommunitiesGoals.pdf

Module: GHG Emissions Accounting, Energy and Fuel Use, and Trading

Page: CC7. Emissions Methodology

CC7.1Please provide your base year and base year emissions (Scopes 1 and 2)

Scope Base year Base year emissions (metric tonnes CO2e)Scope 1 Wed 01 Jul 2009 - Wed 30 Jun 2010 58130Scope 2 (location-based) Wed 01 Jul 2009 - Wed 30 Jun 2010 86890Scope 2 (market-based) Wed 01 Jul 2009 - Wed 30 Jun 2010 0

CC7.2Please give the name of the standard, protocol or methodology you have used to collect activity data and calculate Scope 1 and Scope 2 emissions

Please select the published methodologies that you useThe Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition)Other

CC7.2aIf you have selected "Other" in CC7.2 please provide details of the standard, protocol or methodology you have used to collect activity data and calculate Scope 1 and Scope 2

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC6.ClimateChangeOpportunities/Gerber%20Juice%20and%20CHEP%20Collaboration'%20Environment%20Times%20(UK).pdf

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC6.ClimateChangeOpportunities/Henkel%20sustainability%20and%20cost%20benefits%20offered%20by%20pallet%20pooling.pdf

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC6.ClimateChangeOpportunities/150915%20Brambles%20Investment%20Market%20Briefing.pdf

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC6.ClimateChangeOpportunities/Brambles_2015_Annual_Report_Final.pdf

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC6.ClimateChangeOpportunities/Brambles%20included%20for%20second%20year%20in%20the%20Dow%20Jones%20Sustainability%20World%20Index%20Logistics%20Materials%20Handling.pdf

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC6.ClimateChangeOpportunities/UNHCR%20-%20UNHCR%20and%20CHEP%20to%20improve%20delivery%20of%20life-saving%20refugee%20aid%20with%20supply%20chain%20study.pdf

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC6.ClimateChangeOpportunities/2015_Sustainability_Review.pdf

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC6.ClimateChangeOpportunities/CHEP%20And%20Conad%20join%20Forces%20To%20Reduce%20The%20CO2%20Emisions-Trasportonline%20(Italy).pdf

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC6.ClimateChangeOpportunities/Pledging%20to%20reduce%20food%20loss%20and%20waste%20Nestle%20.pdf

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC6.ClimateChangeOpportunities/Henkel%20signs%20$600k%20contract%20with%20CHEP.pdf

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC6.ClimateChangeOpportunities/Press%20Release%20Brambles%20included%20for%20its%20second%20year%20in%20the%20Dow%20Jones%20Sustainability%20World%20Index.pdf

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC6.ClimateChangeOpportunities/Better%20Planet%20Goals.pdf

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC6.ClimateChangeOpportunities/DJSI%20Sustainability%20Yearbook%20Commercial%20Services%20and%20Supplies%20RobecoSAM%20Sustainability%20Yearbook%202016.pdf

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC6.ClimateChangeOpportunities/CHEP%20CarbonNeutral%20from%20Natural%20Capital%20Partners.pdf

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC6.ClimateChangeOpportunities/FSC%20media%20release.pdf

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC6.ClimateChangeOpportunities/CHEP%20Helps%20Swedish%20Customers%20Reduce%20Footprint.pdf

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC6.ClimateChangeOpportunities/Automotive%20International%20Shipping%20Container%20IcoQube.pdf

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC6.ClimateChangeOpportunities/CHEP%E2%80%99s%20Carbon%20Neutral%20Program%20Set%20to%20Reduce%20Water%20Bottler%E2%80%99s%20Carbon%20Footprint.pdf

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC6.ClimateChangeOpportunities/Better%20Communities%20Goals.pdf

emissions

See attached 2015 Sustainability Review - Supplementary Information 2015 for data measurement techniques and explanations on GHG emissions (pp 8-9). Global: The World Resources Institute's GHG Protocol conversion and emissions factors for fuel and gas consumption.EMEA, Asia, New Zealand, Canada and Latin America: The International Energy Agency (IEA) emissions factors (as prescribed by the GHG Protocol) for electricity consumption.USA: The Energy Information Administration (EIA) emissions factors for electricity consumption of all US operations.Australia: The National Greenhouse Accounts (NGA) emissions factors for electricity consumption of all Australian operations.

CC7.3Please give the source for the global warming potentials you have used

Gas ReferenceCO2 Other: GHG protocol and Australian national greenhouse account factors and EIA factors for USA states and regions.

CC7.4Please give the emissions factors you have applied and their origin; alternatively, please attach an Excel spreadsheet with this data at the bottom of this page

Fuel/Material/Energy Emission Factor Unit ReferenceOther: See attached spreadsheet for emission factors, under ‘Further Information’

Further Information

Attachments

https://www.cdp.net/sites/2016/16/2116/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC7.EmissionsMethodology/2015 Sustainability Review -supplementary information.pdfhttps://www.cdp.net/sites/2016/16/2116/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC7.EmissionsMethodology/Emission Factors for iCARESystem_FINAL.xlsx

Page: CC8. Emissions Data - (1 Jul 2014 - 30 Jun 2015)

CC8.1Please select the boundary you are using for your Scope 1 and 2 greenhouse gas inventory

Other: Please see attached 2015 Sustainability Review - Supplementary information under Boundaries (p 3) for specific information and GHG emissions (pp 8-9).

CC8.2Please provide your gross global Scope 1 emissions figures in metric tonnes CO2e

79410

CC8.3Does your company have any operations in markets providing product or supplier specific data in the form of contractual instruments?

Yes

CC8.3aPlease provide your gross global Scope 2 emissions figures in metric tonnes CO2e

Scope 2,location-

based

Scope 2,market-based(if applicable)

Comment

52940 5276All Scope 2 data for FY15 was collected as location-based, rather than market-based. Brambles will look to adapt emissions reporting in future toreflect renewable energy purchased for a market-based method. However, we are able to identify that in FY14, the equivalent of 5,276 tonnes ofCO2e was purchased from 100% renewable energy contracts.

CC8.4Are there are any sources (e.g. facilities, specific GHGs, activities, geographies, etc.) of Scope 1 and Scope 2 emissions that are within your selected reporting boundary which are notincluded in your disclosure?

Yes

CC8.4aPlease provide details of the sources of Scope 1 and Scope 2 emissions that are within your selected reporting boundary which are not included in your disclosure

Source

Relevance ofScope 1

emissions fromthis source

Relevance of location-based Scope 2

emissions from thissource

Relevance of market-basedScope 2 emissions from this

source (if applicable)Explain why the source is excluded

FergusonGroup(except forAustralia)

Emissionsexcluded due to arecent acquisition

Emissions excluded dueto a recent acquisition No emissions from this source

Data and information from Ferguson Group, which was acquired duringFY15, is not included, except for greenhouse gas (GHG) emissions fromAustralian sites (as part of the Containers segment).

CC8.5Please estimate the level of uncertainty of the total gross global Scope 1 and 2 emissions figures that you have supplied and specify the sources of uncertainty in your data gathering,handling and calculations

Scope Uncertaintyrange

Mainsources ofuncertainty

Please expand on the uncertainty in your data

Scope 1

More than5% but lessthan orequal to10%

ExtrapolationOther:Uncertaintyin datareceived

Data is manually entered in our system on a monthly basis. This involves the risk of human errors or unintended mistakes in systemuse. Where invoice data has not been received for a period in the reporting year, the first step is to confirm that the facility is stilloperated by Brambles. If the operation is confirmed energy use is estimated, then calculated using the average energy consumed in themonths for which an invoice has been received.

Scope 2(location-based)

More than5% but lessthan orequal to10%

ExtrapolationOther:Uncertaintyin datareceived

Data is manually entered in our system on a monthly basis. This involves the risk of human errors or unintended mistakes in systemuse. Where invoice data has not been received for a period in the reporting year, the first step is to confirm that the facility is stilloperated by Brambles. If the operation is confirmed energy use is estimated, then calculated using the average energy consumed in themonths for which an invoice has been received.

Scope 2(market-based)

Less than orequal to 2%

DataManagement

All Scope 2 data for FY15 was collected as location-based, rather than market-based. Brambles will look to adapt emissions reporting infuture to reflect renewable energy purchased for a market-based method. However, we are able to identify that in FY14, the equivalentof 5,276 tonnes of CO2e was purchased from 100% renewable energy contracts.

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC7.EmissionsMethodology/2015%20Sustainability%20Review%20-%20supplementary%20information.pdf

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC7.EmissionsMethodology/Emission%20Factors%20for%20iCARE%20System_FINAL.xlsx

CC8.6Please indicate the verification/assurance status that applies to your reported Scope 1 emissions

Third party verification or assurance process in place

CC8.6aPlease provide further details of the verification/assurance undertaken for your Scope 1 emissions, and attach the relevant statements

Verificationor

assurancecycle inplace

Status inthe

currentreporting

year

Type ofverification

orassurance

Attach the statement Page/sectionreference

Relevantstandard

Proportionof

reportedScope 1

emissionsverified

(%)Annualprocess Complete Limited

assurancehttps://www.cdp.net/sites/2016/16/2116/Climate Change 2016/SharedDocuments/Attachments/CC8.6a/kpmg_a2_brambles_limited_assurance_report_fy15.pdf 1-2 ISAE3000 100

CC8.7Please indicate the verification/assurance status that applies to at least one of your reported Scope 2 emissions figures


CC8.7aPlease provide further details of the verification/assurance undertaken for your location-based and/or market-based Scope 2 emissions, and attach the relevant statements

Location-based ormarket-basedfigure?

Verificationor


Status inthe

currentreporting

year

Type ofverification

orassurance

Attach the statement Page/Sectionreference

Relevantstandard

Proportionof

reportedScope 2

emissionsverified

(%)Location-based

Annualprocess Complete Limited

assurancehttps://www.cdp.net/sites/2016/16/2116/Climate Change 2016/SharedDocuments/Attachments/CC8.7a/kpmg_a2_brambles_limited_assurance_report_fy15.pdf 1-2 ISAE3000 100

CC8.8Please identify if any data points have been verified as part of the third party verification work undertaken, other than the verification of emissions figures reported in CC8.6, CC8.7and CC14.2

Additional data pointsverified Comment

Year on year change inemissions (Scope 1 and 2)

The assured information, as stated in the provided assurance statement, includes all information and data on emissions as stated in the attached2015 Sustainability Review on p 20, excluding quantitative and qualitative information related to Scope 3 emissions and target.

Emissions reductionactivities

The assured information, as stated in the provided assurance statement, includes all information and data on emissions as stated in the attached2015 Sustainability Review on p 20, excluding quantitative and qualitative information related to Scope 3 emissions and target.

CC8.9Are carbon dioxide emissions from biologically sequestered carbon relevant to your organization?

No

Further Information

Attachments

https://www.cdp.net/sites/2016/16/2116/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC8.EmissionsData(1Jul2014-30Jun2015)/2015 SustainabilityReview - supplementary information.pdfhttps://www.cdp.net/sites/2016/16/2116/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC8.EmissionsData(1Jul2014-30Jun2015)/2015_Sustainability_Review.pdf

Page: CC9. Scope 1 Emissions Breakdown - (1 Jul 2014 - 30 Jun 2015)

CC9.1Do you have Scope 1 emissions sources in more than one country?

Yes

CC9.1aPlease break down your total gross global Scope 1 emissions by country/region

Country/Region Scope 1 metric tonnes CO2e

Australia 4944United Kingdom 4736Rest of world 69730

CC9.2Please indicate which other Scope 1 emissions breakdowns you are able to provide (tick all that apply)

By business division

CC9.2aPlease break down your total gross global Scope 1 emissions by business division

Business division Scope 1 emissions (metric tonnes CO2e)Pallets Americas 52280Pallets Asia-Pacific 6860Pallet Europe, Middle East and Africa 9520

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC8.EmissionsData(1Jul2014-30Jun2015)/2015%20Sustainability%20Review%20-%20supplementary%20information.pdf

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC8.EmissionsData(1Jul2014-30Jun2015)/2015_Sustainability_Review.pdf

RPCs 8280Containers 2480Brambles HQ 0

Further Information

Page: CC10. Scope 2 Emissions Breakdown - (1 Jul 2014 - 30 Jun 2015)

CC10.1Do you have Scope 2 emissions sources in more than one country?

Yes

CC10.1aPlease break down your total gross global Scope 2 emissions and energy consumption by country/region

Country/RegionScope 2, location-

based (metric tonnesCO2e)

Scope 2, market-based (metric tonnes

CO2e)

Purchased and consumedelectricity, heat, steam or cooling

(MWh)

Purchased and consumed low carbon electricity, heat, steamor cooling accounted in market-based approach (MWh)

Australia 17286 0 18875 0United Kingdom 1859 0 4223 0Rest of world 33797 0 71963 0

CC10.2Please indicate which other Scope 2 emissions breakdowns you are able to provide (tick all that apply)

By business division

CC10.2aPlease break down your total gross global Scope 2 emissions by business division

Business division Scope 2 emissions, location based (metric tonnes CO2e) Scope 2 emissions, market-based (metric tonnes CO2e)Pallets Americas 16530 0Pallets Europe, Middle East and Africa 5970 0Pallets Asia-Pacific 14040 0RPCs 11580 0Containers 3190 0Brambles HQ 1630 0

Further Information

Page: CC11. Energy

CC11.1What percentage of your total operational spend in the reporting year was on energy?

More than 0% but less than or equal to 5%

CC11.2Please state how much heat, steam, and cooling in MWh your organization has purchased and consumed during the reporting year

Energy type Energy purchased and consumed (MWh)Heat 0Steam 0Cooling 0

CC11.3Please state how much fuel in MWh your organization has consumed (for energy purposes) during the reporting year

107312

CC11.3aPlease complete the table by breaking down the total "Fuel" figure entered above by fuel type

Fuels MWhDiesel/Gas oil 36694Natural gas 74387Liquefied petroleum gas (LPG) 168801Motor gasoline 742

CC11.4Please provide details of the electricity, heat, steam or cooling amounts that were accounted at a low carbon emission factor in the market-based Scope 2 figure reported in CC8.3a

Basis for applying a low carbonemission factor

MWh consumedassociated with low carbonelectricity, heat, steam or

cooling

Comment

Energy attribute certificates,Guarantees of Origin 12063

Brambles purchased more renewable energy in FY15. CHEP UK updated their energy contract in May2014 to ensure sites receive electricity from clean sources, including energy produced from hydro, wind,tidal, wave, photovoltaic, biomass, waste gases and industrial waste sources.

Off-grid energy consumption from anonsite installation or through a directline to an off-site generator

189 Electricity generated in Belgium from an onsite renewable resource (solar panels).

CC11.5Please report how much electricity you produce in MWh, and how much electricity you consume in MWh

Total electricityconsumed (MWh)

Consumed electricity that ispurchased (MWh)

Total electricityproduced (MWh)

Total renewable electricityproduced (MWh)

Consumed renewable electricity that isproduced by company (MWh) Comment

107312 107123 0 189 189

Further Information

Page: CC12. Emissions Performance

CC12.1How do your gross global emissions (Scope 1 and 2 combined) for the reporting year compare to the previous year?

Decreased

CC12.1aPlease identify the reasons for any change in your gross global emissions (Scope 1 and 2 combined) and for each of them specify how your emissions compare to the previous year

ReasonEmissions

value(percentage)

Directionof

changePlease explain and include calculation

Emissionsreductionactivities

13 Decrease

Overall, Brambles recorded a decrease in combined scope 1 and scope 2 GHG emissions in FY15 of 13%. Scope 2 emissions(generated by the use of electricity at our sites) deceased by 34% (27,000 t CO2-e). This is in part due to the purchase of renewableelectricity in Europe and projects to reduce energy consumption. Examples of projects to reduce our energy consumption and scope 2emissions include reducing IT servers and installing LED lighting, such as at our Rosehill, Australia service centre in FY15 andinstalling another gas power station at our IFCO site in Duisburg, Germany. Some RPC sites in Australia also began cold waterwashing, reducing the need to heat water (saving 151 t CO2-e).

Divestment Nochange Not applicable in FY15.

Acquisitions 1 Increase Ferguson Group, which was acquired during FY15, is not included, except for greenhouse gas (GHG) emissions from Australian sites(as part of the Containers segment). Ferguson GHG emissions in other locations were not included in FY15.

Mergers Nochange Not applicable in FY15.

Change inoutput 8 Increase

Scope 1 emissions (generated by the use of gas and fuel) increased by 8%, partly due to increased activity for the Year. Brambles'sales revenue increased by 8% in constant currency in FY15, reflecting the continued execution of the Group's organic growthstrategy and contribution from acquisitions made since the start of FY14. This was in line with guidance for FY15 and the five yearobjective for average annual constant currency percentage sales revenue growth in the high single digits.

Change inmethodology Decrease

Scope 2 emissions (generated by the use of electricity at our sites) deceased by 34% (27,000 t CO2-e). This is in part due to the useof actual data rather than estimates in our recycled pallets operations. We will work with our utility suppliers in FY16 to further improveand simplify data collection process in the US.

Change inboundary 0 No

changeGHG emissions reported from Brambles’ Pallets, RPCs and Containers segments for the financial year ended 30 June 2015 (FY15).Please see 2015 Sustainability Review - supplementary information p 3 for more information.

Change inphysicaloperatingconditions

8 Increase Scope 1 emissions (generated by the use of gas and fuel) increased by 8%, partly due to the continuing use of gas to were somesites, which reduces our electricity usage and has a lower emissions footprint.

Unidentified Nochange Not applicable in FY15.

Other Nochange Not applicable in FY15.

CC12.1bIs your emissions performance calculations in CC12.1 and CC12.1a based on a location-based Scope 2 emissions figure or a market-based Scope 2 emissions figure?

Location-based

CC12.2Please describe your gross global combined Scope 1 and 2 emissions for the reporting year in metric tonnes CO2e per unit currency total revenue

Intensityfigure =

Metric numerator (Grossglobal combined Scope 1

and 2 emissions)

Metricdenominator:

Unit totalrevenue

Scope 2figureused

% changefrom

previousyear

Direction ofchange fromprevious year

Reason for change

0.0000242104 metric tonnes CO2e 5464600000 Location-based 17 Decrease

Brambles recorded a decrease in combined scope 1 and scope 2GHG emissions in FY15 of 13%, despite increased sales revenueand operational activity for the Year.

CC12.3Please provide any additional intensity (normalized) metrics that are appropriate to your business operations

Intensityfigure =

Metricnumerator (Grossglobal combined

Scope 1 and 2emissions)

Metric denominatorMetric

denominator:Unit total

Scope 2figureused

%change

fromprevious

year

Directionof

changefrom

previousyear

Reason for change

9.434 metric tonnesCO2e full time equivalent (FTE) employee 14024 Location-

based 18 Decrease

Brambles recorded adecrease in combined scope1 and scope 2 GHGemissions in FY15 of 13%.This intensity figure was alsoimpacted by a slightlyincreased number ofBrambles Group FTEs (FY14:13,752).

0.000000208 metric tonnesCO2e

Other: C-gen: stands for C generation stock. ‘A’generation stock is stock awaiting inspection, ‘B’generation stock is that which is waiting to beconditioned or repaired and ‘C’ generation (C-gen)stock has been conditioned and is ready for acustomer. C gen gives us an understanding of thenumber of products (pallets, crates, or containers) thathave been conditioned at our sites, which is the

Location-based 7 Decrease

An overall decrease in scope1 and scope 2 emissions forFY15 led to a decrease inintensity as a measure ofproductivity, as well asincreased activity for theYear. FY14: 0.000000223.FY14 figure updated asScope 1 emissions data wasrestated due to a discoverederror in the LPG datarecorded for a Europeancountry. This resulted in a

productivity measure we use. decrease in the reported2014 emissions of 7.42 ktCO2-e. Metric denominatornot included in column as toolarge for unit total box(635,312,474).

Further Information

Attachments

https://www.cdp.net/sites/2016/16/2116/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC12.EmissionsPerformance/2015 Sustainability Review -supplementary information.pdf

Page: CC13. Emissions Trading

CC13.1Do you participate in any emissions trading schemes?

No, and we do not currently anticipate doing so in the next 2 years

CC13.2Has your organization originated any project-based carbon credits or purchased any within the reporting period?

Yes

CC13.2aPlease provide details on the project-based carbon credits originated or purchased by your organization in the reporting period

Creditorigination

or creditpurchase

Project type Project identificationVerifiedto whichstandard

Number ofcredits(metric

tonnes ofCO2e)

Number of credits(metric tonnes

CO2e): Risk adjustedvolume

Creditscancelled

Purpose,e.g.

compliance

Creditpurchase Forests

Acre, Amazonian Rainforest Brazil All wooden palletsissued in Sweden Quarter pallets Germany LeadershipConference Project external identification number:VCS963

VCS(VerifiedCarbonStandard)

4647 4647 Yes VoluntaryOffsetting

Creditpurchase

Other: Improvedwaterinfrastructure:subsaharan Africa

Improved Water Infrastructure (Malawi) Spadel BeneluxProject external identification number: GS3105

GoldStandard 285 285 Yes Voluntary

Offsetting

Creditpurchase Biomass energy Household Biogas Program Vietnam CAPSA Spain

Project external identification number: GS1083GoldStandard 861 861 Yes Voluntary

OffsettingCreditpurchase

Energy efficiency:households

India Improved Cookstoves San Miguel Spain Projectexternal identification number: GS916 1029 1231


OffsettingCreditpurchase

Energy efficiency:households

Guatemala Water Treatment and Cookstoves HeinzEurope Project external identification number: GS1321


Offsetting

Further Information

Page: CC14. Scope 3 Emissions

CC14.1Please account for your organization’s Scope 3 emissions, disclosing and explaining any exclusions

Sources ofScope 3

emissions

Evaluationstatus

metrictonnesCO2e

Emissions calculation methodology

Percentageof

emissionscalculatedusing dataobtained

fromsuppliersor value

chainpartners

Explanation

Purchasedgoods andservices

Relevant,not yetcalculated

In FY11, Brambles reviewed its operations todetermine the main contributors to its Scope 3emissions and identified purchased goods as one ofthese.

Purchased goods include harvesting of timber purchased fromsuppliers and other purchased goods and services, such aspaper and cardboard. Brambles did not calculate the emissionsfrom these sources. However, LCAs (product carbon footprint)have been carried out on timber pallets in EU and in 2014 inSouth Africa.

Capital goodsRelevant,not yetcalculated

In FY11, Brambles reviewed it operations to determinethe main contributors to its Scope 3 emissions andidentified capital goods – particularly pallets andcontainers – as one of these.

Brambles did not calculate the emissions from its capital goods,including CHEP pallets and containers. Purchase of other fixedassets and IT supplies (relevant, not calculated) as these capitalgoods are not considered material.

Fuel-and-energy-relatedactivities (notincluded inScope 1 or 2)


Brambles operations did not calculate other fuel-and-energy-related activities apart from those included in Scope 1 and 2 andoutlined in the 2015 Sustainability Review - supplementaryinformation document. However, the categories currentlydisclosed cover the majority of our emissions

Upstreamtransportationanddistribution


Brambles has not calculated the emissions generated in thepurchase of raw materials, or other supplier delivered goods.Other forms of upstream transportation and distribution have notbeen evaluated. However, the categories currently disclosedcover the majority of our emissions

Wastegenerated inoperations

Relevant,calculated 11606

In FY15, Brambles' businesses generated 33,436metric tonnes of general waste and 271 metric tonnesof hazardous waste. General waste emissions areestimated at 11,606 metric tonnes of CO2-e. All wastedata obtained from our own operations.

0.00%

Estimated emissions from waste and recycling for Brambles'operations for FY15 were calculated using the US EPA WasteReduction Model (WARM) v 14 (released March 2016).Estimated emissions breakdown for waste was calculated usingdefault options and based on mixed municipal solid waste tolandfill, together with the emissions saved from recycling lumber,mixed paper, mixed metals and mixed plastics (net emissions

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC12.EmissionsPerformance/2015%20Sustainability%20Review%20-%20supplementary%20information.pdf

impact of -373 kt CO2-e). Spreadsheet attached below.

Businesstravel


Figure provided captures air travel taken by Brambles'employees using the AMEX corporate travel provider.It does not include other forms of travel, or air travelbooked outside of the corporate travel provider forFY15. For FY15, regions using the corporate travelprovider for all or part of the Year includes most of theAmericas, UK and Europe, as well as Australia andNew Zealand.

100.00%

Emissions generated by business travel by air in FY15, bookedusing our corporate travel provider. To reduce air travel in FY15,Brambles began encouraging the use of video conferencing,tracking the emissions saved. This data is being collected forFY16. In the first quarter of FY16, 65 tonnes of CO2-e wasavoided through the use of video conferencing.

Employeecommuting


In FY11, Brambles reviewed it operations to determinethe main contributors to its Scope 3 emissions andidentified employee commuting as one of these. Noprimary commuting data is available at this time.Brambles had 13,568 permanent employees aroundthe world as at 30 June 2015.

Upstreamleased assets

Notevaluated

Brambles has not calculated the emissions generated by theleased assets of suppliers of our raw materials, such as lumbermills that supply our lumber, or other suppliers. However, thecategories currently disclosed cover the majority of ouremissions.

Downstreamtransportationanddistribution


We estimate Scope 3 emissions for transport. Wecalculate an emissions estimate either by using aspecific module developed by LeanLogistics or, wherethat module cannot be used, estimates are madebased on type of fuel, place of travel, type of vehiclesand travel distances.

0.00%

In FY15, we saw a reduction in our scope 3 transport emissions.We did this by improving our measuring systems, increasingtransport efficiencies and collaborating with our transportproviders.

Processing ofsold products

Notrelevant,explanationprovided

Brambles retains ownership of its pooled assets, therebyensuring that end of life management is controlled and recovery,reuse and recycling efforts can be maximised. Our recycledpallets operations collects discarded white wood pallets and usesthese to manufacture new white wood pallets, which it then sells.Brambles did not calculate the emissions relevant to these soldproducts; however, the categories currently disclosed cover themajority of our emissions.

Use of soldproducts



End of lifetreatment ofsold products



Downstreamleased assets


We estimate outsourced service centre (OSC)emissions by applying our average internal servicecentre grams CO2-e per production unit and apply toproduction figures for the OSCs, using country specificemission factors.

0.00%

Our scope 3 emissions from outsourced service centresdecreased by over 33 kt CO2-e in FY15. Outsourced RPC sitesin Europe reduced energy consumption and saved almost 8,000 tCO2-e by installing a gas power station, using solar energy, newmachinery and decreased production levels at some sites.

Franchises


Brambles does not have any franchises. The categories currently disclosed cover the majority of ouremissions.

Investments Notevaluated

The categories currently disclosed cover the majority of ouremissions.

Other(upstream)

Relevant,calculated

Brambles is able to make customers' supply chainsmore sustainable, compared to the use of alternativeplatforms. Because we recover, repair and allowcustomers to reuse our products many times, we areable to reduce GHG emissions, demand on resourcesand waste. In FY15, customers' use of RPCs andpooled wooden pallets saved at least 955,000 tonnesof CO2-e (see 2015 Sustainability Review p 6).

0.00%

Calculated environmental benefits stated are based on estimatesfrom independent life cycle analyses, applied to volumes ofproducts and regions covered by these life cycle analyses only.These represent a conservative estimate of the globalenvironmental benefits of our pooled products for the Year.Please see the 2015 Sustainability Review - supplementaryinformation for further details.

Other(downstream)

Notevaluated

Other forms of downstream emissions have not been evaluated.However, the categories currently disclosed cover the majority ofour emissions.

CC14.2Please indicate the verification/assurance status that applies to your reported Scope 3 emissions


CC14.2aPlease provide further details of the verification/assurance undertaken, and attach the relevant statements

Verificationor


Status inthe

currentreporting

year

Type ofverification

orassurance

Attach the statement Page/Sectionreference

Relevantstandard

Proportion ofreported Scope

3 emissionsverified (%)

Annualprocess Complete Limited

assurancehttps://www.cdp.net/sites/2016/16/2116/Climate Change 2016/SharedDocuments/Attachments/CC14.2a/kpmg_a2_brambles_limited_assurance_report_fy15.pdf 1-2 ISAE3000

CC14.3Are you able to compare your Scope 3 emissions for the reporting year with those for the previous year for any sources?

Yes

CC14.3aPlease identify the reasons for any change in your Scope 3 emissions and for each of them specify how your emissions compare to the previous year

Sources of Reason Emissions Direction

Scope 3emissions

forchange

value(percentage)

ofchange

Comment

Downstreamtransportationanddistribution


15 DecreaseIn FY15, we saw a reduction in our scope 3 transport emissions. We did this by improving our measuring systems,increasing transport efficiencies and collaborating with our transport providers. Further information is provided in the2015 Sustainability Review, p 21.

Downstreamleased assets


23 Decrease

Our scope 3 emissions from outsourced service centres decreased by over 33 kt CO2-e in FY15. Outsourced RPC sitesin Europe reduced energy consumption and saved almost 8,000 t CO2-e by installing a gas power station, using solarenergy, new machinery and decreased production levels at some sites. Further information is provided in the 2015Sustainability Review, p 21.

CC14.4Do you engage with any of the elements of your value chain on GHG emissions and climate change strategies? (Tick all that apply)

Yes, our suppliersYes, our customersYes, other partners in the value chain

CC14.4aPlease give details of methods of engagement, your strategy for prioritizing engagement and measures of success

Brambles is committed to achieving Zero Harm and considers environmental impacts in all decisions and engagements (Charter attached).

Timber sourcing is controlled centrally by the global procurement team. We have a target of achieving chain of custody certification for 100% of timber purchased by 2020. Accordingto CDP Forests, deforestation accounts for approximately 10-15% of the world’s greenhouse gas emissions, equivalent to the entire transport sector. Our global procurement teamworks with timber suppliers in sustainable timber production help to address this issue. 97% of timber purchased for CHEP pooled pallets was from certified sources in FY15, with43% carrying chain of custody certification. Further details are provided in the 2015 Sustainability Review, pp 17-18 and in Brambles' CDP Forests response 2015.

Brambles help customers understand their supply chains and minimise their environmental footprint. We work with customers and suppliers directly, using our logistics knowledge. Inthe US, fleet optimisation helps customers increase productivity, earn revenue and reduce empty miles by hauling CHEP’s backhaul freight. Collaboration initiatives are progressingin CHEP Automotive. In Europe, a customer focused program increases transportation efficiencies by optimising loads through improved truck fill rates for deliveries to collections,and by eliminating transportation legs through shared locations. We seek to engage with customers and industry partners where we can benefit supply chains generally. Since 2008,CHEP has been using mutlimodal (train, sea and road) solutions to move its pallets throughout its network. By collaborating with over 150 customers, our multimodal andcollaborative transport programs reduced transport distances by 42 million kilometres and saved more than 35,000 tonnes CO2-e. Brambles has also set a target of year on yearimprovements in reducing carbon emissions and waste in customer supply chains (see attached Better Business goals). Brambles has set a target of year on year reductions incarbon emissions intensity per kilometre through transport collaboration (see Better Collaboration goals attachment).

Customers' use of the Total Pallet Management program (major manufacturers and retailers) allows CHEP to manage all of a customer's pallet needs onsite and supply palletswithout the need for additional transport. This helps optimise the network and reduces the energy requirements of the pallet pool.

CHEP Europe has continued to grow our carbon neutral offerings with customers. Two new customers signed up in FY15. There are a number of participating customers, includingSpadel, MSM and Heinz. The quarter pallet carbon neutral product has been extended to all European countries in FY15, after being introduced in Germany in FY14. 6,215 tonnes ofCO20e was offset by customers using carbon neutral products in FY15.

Many announcements and media articles during FY15 of contracts won or extended highlight the importance of the ability of Brambles' businesses to reduce emissions andenvironmental impact (ie waste reduction, etc) for our customers' supply chains. Attached are some examples.

In FY13, Brambles developed a global supplier policy that was rolled out to all businesses in FY14 (see p 35, Schedule 13 of Code of Conduct). Suppliers are expected to follow theprinciples of Brambles Zero Harm commitment to achieving zero injuries, zero environmental damage and zero detrimental impact on human rights.

Brambles’ businesses are also well placed to address the environmentally important issue of food loss and waste in the supply chain. We do this by collaborating with customers andretailers, as well as in our own product development. Working with our customers and retailers, we reduced food waste by more than 3,000 tonnes in FY15.. For e.g., IFCO’s eggcrate improves the protection and handling of eggs and helps to eliminate food waste by reducing broken eggs by up to 66%. In addition, the RPC’s ventilation allows for fastercooling performance for better egg quality and freshness. Because of its environmentally friendly design, the reusable crate reduces corrugated cardboard waste, energyconsumption and greenhouse gas emissions. Brambles has created opportunities for international non-profit organisation Enactus and the World Economic Forum (WEF), focusingon reducing food loss and waste. For example, Enactus will be engaged in potential food loss and waste projects in Africa. One of our key community partnerships is with food banksaround the world. Working with food banks not only provides assistance to community groups and charities working with those less fortunate, but it also helps to reduce food wasteby diverting usable products from landfill. Brambles has set a target of year on year reductions in packaging waste and food waste (see Better Collaboration goals attachment).

CC14.4bTo give a sense of scale of this engagement, please give the number of suppliers with whom you are engaging and the proportion of your total spend that they represent

Numberof

suppliers

% of totalspend

(direct andindirect)

Comment

850 23%

Brambles reported a total spend of US$1,080.5 million on transport in its Annual Report 2015 (p 51). The suppliers that it worked with in FY15 onprojects outlined above are included in this amount. Total transport expense represents 23% of operating expenses reported for FY15. Brambles'businesses work with more than 850 transport providers around the world. This does not include the timber suppliers or other suppliers with which wecollaborate.

CC14.4cIf you have data on your suppliers’ GHG emissions and climate change strategies, please explain how you make use of that data

How you make useof the data Please give details

Identifying GHGsources to prioritizefor reduction actions

We use our logistics knowledge to minimise the carbon footprint of our customers and their supply chains through working with our transport providers toreduce transport distances and associated emissions. CHEP also works with customers and transport providers to eliminate unnecessary empty returntruck trips, so that customers benefit from sharing transportation and filling empty space on trucks.

Further Information

KPMG provided limited assurance for scope 3 emissions associated with the emissions saved by customers' use of our pooled products only, as outlined on p 6 2015 SustainabilityReview. This assurance does not apply to scope 3 emissions for transport or outsourced service centres.

Attachments

https://www.cdp.net/sites/2016/16/2116/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC14.Scope3Emissions/CHEP Collaborates With Customers ToCut Transport Costs and CO2 Emissions-Transport Online (Benelux).pdfhttps://www.cdp.net/sites/2016/16/2116/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC14.Scope3Emissions/Better Collaboration goals.pdfhttps://www.cdp.net/sites/2016/16/2116/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC14.Scope3Emissions/2015 Sustainability Review -supplementary information.pdfhttps://www.cdp.net/sites/2016/16/2116/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC14.Scope3Emissions/Gerber Juice and CHEP Collaboration'Environment Times (UK).pdfhttps://www.cdp.net/sites/2016/16/2116/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC14.Scope3Emissions/CHEP Collaborates With Its CustomersTo Reduce Transportation Costs And CO2 Emissions-Blog Street Wire-(Italy).pdfhttps://www.cdp.net/sites/2016/16/2116/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC14.Scope3Emissions/Code_of_Conduct October 2015.pdfhttps://www.cdp.net/sites/2016/16/2116/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC14.Scope3Emissions/Zero Harm Charter (Feb 2013)ENGLISH.pdfhttps://www.cdp.net/sites/2016/16/2116/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC14.Scope3Emissions/Henkel signs $600k contract with

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC14.Scope3Emissions/CHEP%20Collaborates%20With%20Customers%20To%20Cut%20Transport%20Costs%20and%20CO2%20Emissions-Transport%20Online%20(Benelux).pdf

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC14.Scope3Emissions/Better%20Collaboration%20goals.pdf

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC14.Scope3Emissions/2015%20Sustainability%20Review%20-%20supplementary%20information.pdf

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC14.Scope3Emissions/Gerber%20Juice%20and%20CHEP%20Collaboration'%20Environment%20Times%20(UK).pdf

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC14.Scope3Emissions/CHEP%20Collaborates%20With%20Its%20Customers%20To%20Reduce%20Transportation%20Costs%20And%20CO2%20Emissions-Blog%20Street%20Wire-(Italy).pdf

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC14.Scope3Emissions/Code_of_Conduct%20October%202015.pdf

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC14.Scope3Emissions/Zero%20Harm%20Charter%20(Feb%202013)%20ENGLISH.pdf

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC14.Scope3Emissions/Henkel%20signs%20$600k%20contract%20with%20CHEP.pdf

CHEP.pdfhttps://www.cdp.net/sites/2016/16/2116/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC14.Scope3Emissions/Better Business Goals.pdfhttps://www.cdp.net/sites/2016/16/2116/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC14.Scope3Emissions/warm_v14 for scope 3 waste emissionsestimates.xlshttps://www.cdp.net/sites/2016/16/2116/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC14.Scope3Emissions/2015_Sustainability_Review.pdfhttps://www.cdp.net/sites/2016/16/2116/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC14.Scope3Emissions/Article - 'CHEP, focused onSustainability' - Distribuci¢n Actualidad (Spain).pdfhttps://www.cdp.net/sites/2016/16/2116/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC14.Scope3Emissions/CHEP And Conad join Forces ToReduce The CO2 Emisions-Sestopotere (Italy).pdfhttps://www.cdp.net/sites/2016/16/2116/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC14.Scope3Emissions/CHEP receives ECR Award -transportonline (Benelux).pdf

Module: Sign Off

Page: CC15. Sign Off

CC15.1Please provide the following information for the person that has signed off (approved) your CDP climate change response

Name Job title Corresponding job categoryRobert Gerrard Company Secretary Other: Company Secretary

Further Information

This response was reviewed and approved for submission by Brambles' Company Secretary, who reports to the CFO. Further information on the Company Secretary can be foundon p 31 of the Annual Report 2015.

Attachments

https://www.cdp.net/sites/2016/16/2116/Climate Change 2016/Shared Documents/Attachments/ClimateChange2016/CC15.SignOff/Brambles_2015_Annual_Report_Final.pdf

CDP: [D][-,-][D2]

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC14.Scope3Emissions/Henkel%20signs%20$600k%20contract%20with%20CHEP.pdf

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC14.Scope3Emissions/Better%20Business%20Goals.pdf

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC14.Scope3Emissions/warm_v14%20for%20scope%203%20waste%20emissions%20estimates.xls

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC14.Scope3Emissions/2015_Sustainability_Review.pdf

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC14.Scope3Emissions/Article%20-%20'CHEP,%20focused%20on%20Sustainability'%20-%20Distribuci%C2%A2n%20Actualidad%20(Spain).pdf

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC14.Scope3Emissions/CHEP%20And%20Conad%20join%20Forces%20To%20Reduce%20The%20CO2%20Emisions-Sestopotere%20(Italy).pdf

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC14.Scope3Emissions/CHEP%20receives%20ECR%20Award%20-transport%20online%20(Benelux).pdf

https://www.cdp.net/sites/2016/16/2116/Climate%20Change%202016/Shared%20Documents/Attachments/ClimateChange2016/CC15.SignOff/Brambles_2015_Annual_Report_Final.pdf