Green Procurement July 11th, 2014

Taipei

Yasuhiro Suzuki

Index

Sustainability is in DNA of Tetra Pak, we apply the

sustainable concept in the full life cycle of our

products and throughout the value chain

► Tetra Pak as a glance

► Purchasing Policy in Tetra Pak & Sustainable

Sourcing

► Corporate Social Responsibility

► Way forward

Tetra Pak at a glance

Innovation is our heritage

178,412 mio packages sold 2013 Carton packages sold 1980 - 2014

Mio packs

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

'80 '81 '82 '83 '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13

“Success in business is more than

just achieving financial goals;

it’s also about sustainable growth

and protecting the environment.”

Dennis Jönsson, CEO Tetra Pak

Changing context in 21st century

2001 2014

Millions more middle-class consumers

in developing countries

Stricter legislation and taxes related to

protecting the environment

Important natural resources under

threat and being depleted

Further globalization of value

chains and producers

Continuous growth in population

Extensive urbanization

= Great Acceleration

Impact = P X A X T

Purchasing Policy & Sustainable Sourcing

Tetra Pak Group Purchasing and Supplier Management Policy

• Tetra Pak believes that solid relationships with key suppliers, founded on trust

and mutual advantage, are vital to our business success. By acting honestly

and establishing respect through open, candid communication and teamwork,

we strive to be a preferred customer to our suppliers.

• We are committed to make sure that our suppliers, as a minimum, adhere to

applicable legal requirements and support Tetra Pak's commitment to

consistently meet and exceed its customers' expectations of quality, cost

and delivery.

• Tetra Pak shall not do business with suppliers that do not comply with the

United Nations Declarations and Conventions on Human Rights, Rights of the

Child, Safe and Healthy Working Conditions, as well as to the International

Labour Organization Conventions.

• Environmental requirements are, to a high degree, taken into

consideration in the development of our supplier base and are a strong

focus in all negotiations with suppliers. Tetra Pak will work together with

its suppliers to ensure that they have an excellent environmental

performance.

Forestry Guideline

► Our 1st goal is that all the wood fibre in our paperboard shall

come from forests independently certified as managed in

accordance with the principles of sustainable forest

management.

► Our 2nd goal is to demonstrate full traceability from the

forest all the way to the packaging material we produce at our

sites globally, which can only be achieved through

independent certification of the total Chain of Custody (COC).

Certification and traceability

Tetra Pak’s currently preferred forest management

certification scheme and traceability scheme is the

Forest Stewardship Council (FSC).

A Tetra Pak preferred forest certification scheme must fulfill the following criteria:

• Ensures a balance between economic, social and environmental dimensions of

forest management

• Meets the Tetra Pak requirements of sustainable forest management

• Includes mechanisms for identifying and managing High Conservation Value

areas

• Ensures participation of all major interested and affected stakeholders in the

process of defining broadly accepted standards for forest management and

traceability (COC)

• Requires certification by an independent body in compliance with applicable ISO

guidance or equivalent; the certification process must include stakeholder

consultation.

• Requires public availability of forest management audit reports

• Requires accreditation by an independent body in compliance with applicable ISO

guidance or equivalent.

• Is supported by major international NGO’s

Our goals to Drive Environmental Excellence

We have clear focus to drive environmental excellence

Reduce environmental footprint

across the value chain

Develop sustainable products

Increase recycling

Objectives Goals Objectives

2020 climate goal:

Cap climate impact across value

chain at 2010 levels

Renewable packaging goals:

100% FSC-certified paperboard,

A 100% renewable package

2020 recycling goal:

40% global recycling rate

3

9

18

26

32

0

5

10

15

20

25

30

35

2009 2010 2011 2012 2013

FSC-labelled packs (Billion)

FSC-labelled packages are growing

Share of all cartons

18%

FSC-label reach

+50 countries

Corporate social responsibility Driving environmental performance

Drive environmental excellence across the entire value chain

Logistics

Innovation

Our

operations

Customers

operations

Recycling Sourcing

Tetra PakSuppliers Customers End-of-life

Our 2020 climate goal is creating a more competitive value chain

GOING FROM A

COMPANY MINDSET…

…TO A VALUE CHAIN

MINDSET

Tetra PakSuppliers Customers End-of-life

Partners include:

WHAT CLIMATE IMPACT

4%

48%

7%

41%Suppliers

Tetra Pak

Customers

End-of-life

We identify and reduce all climate impacts across the value chain

VALUE CHAIN DISTRIBUTION WHAT CLIMATE IMPACT?

Suppliers Tetra Pak Customers End-of-life

Transportation

Purchased

materials

Travel

Use of

products

Landfill

Waste

Energy

e.g. purchased

material

44% Processing equipment

4% Packaging equipment

Behavior Change : How to be selected

► Be a credible supplier

► Be a solution provider to reduce Environment

impact in − Product

− Operation

− End of Life

Bio-based caps made from sugar cane

Nestlé, Brazil (2011)

Packs with bio-based caps

delivered (Billion)

0.6

1.1

2012 2013

Coca-Cola, Peru (2012)

First customer in

Europe to launch

bio-based caps

TINE, Norway (2013)

Delivering weight reduction

TBA 1000 Edge LightCap 30

TBA 1000 Sq StreamCap

TPA 1000 Sq StreamCap

Paperboard

Paperboard

Polymers

Polymers

Aluminium

Aluminium

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Weight CO2 impact

Board is 73% of weight but only 31% of CO2e impact* Develop environmental innovations

Source reduction & supplier

improvements

Increase share of renewable

materials

* TBA slim 1000 package with ReCap3 closure. Most common

packaging solution (2010)

343 402 417

473 528

581 623

200

300

400

500

600

2007 2008 2009 2010 2011 2012 2013

ktonnes

Global recycling of used Tetra Pak cartons increase

Recycling rate

24,5%

Recycled cartons

43 Billion

Tetra Pak Taiwan purchased 70% green energy

In 2013, Tetra Pak purchased Gold Power renewable energy for 70% of

its Taiwan plant electricity consumption from the Changbin and

Taichung Wind project

Taiwan current product with FSC

► There are more than 15 Tetra Pak products with FSC label

will be launch after 2014-Q3.

FSC related promotion

► 2012 Taiwan FSC products event

FSC related promotion

► 2014 Eco Products International Fair

CFP related promotion

► 2012 EPA Low carbon market at Taipei main station

Comparing CO2 performance Example Germany, data used for legislative ends

60 - 90*

115 – 190*

230 – 250**

Sources

* Ökobilanzieller Vergleich von Getränkekartons und PET-Einwegflaschen (LCA of Beverage Cartons and PET One-Way Bottles), (2006); IFEU Heidelberg,

commissioned by FKN, Wiesbaden. Peer reviewed LCA for German conditions. Results for 1-liter juice aseptic packages (beverage carton & PET bottle).

** Life Cycle Assessment for Drinks Packaging Systems II Phase 1, (2000); Prognos GmbH, IFEU Institut, commissioned by Umweltbundesamt (German Federal

Environmental Agency), Berlin. Peer reviewed LCA for German conditions. Results for 1-liter juice bottle (one-way glass).

Comparison of CO2 emitted in grams / liter

Behavior Change : How to be selected

► Be a credible supplier

► Be a solution provider to reduce Environment

impact − Product

− Operation

− End of Life

► Be a partner for the future

► Legislators − Recognition of best

practices − Ensuring the right

level of control, boundary conditions and enforcement

− Outlining clear rules for all actors involved

− Avoiding counterproductive measures

− Implement legislation through accreditation

► Industry − Take ownership over

our responsibility/role − Transparency on all

activities − Coordinate relation

with all partners involved

− Fair competition under fair environment

The strong partnership is key for a more sustainable value chain

Thank you!