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The Power of Good 2016 Corporate Social Responsibility Report 101 Oakley Street | Evansville, IN 47710 | 1.877.662.3779 | berryglobal.com
Transcript
Page 1: 2016 Corporate Social Responsibility Report€¦ · first Corporate Social Responsibility report, which included goals for reducing our environmental impacts in several key areas:

The Power of Good

2016 Corporate Social Responsibility Report

101 Oakley Street | Evansville, IN 47710 | 1.877.662.3779 | berryglobal.com

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Be Good Feel Good

Do Good

For nearly 30 years, in honor of Earth Day, Berry’sEvansville, Indiana, manufacturing facility has hostedthird grade students from area schools. Students tourthe facility, learn about sustainability, and arepresented with a sapling.

Pictured on the cover is Alex Schaefer, who visited thefacility 9 years ago, as part of the Earth Day studenttours. Upon returning home, Alex planted her treeand today it remains part of her family’s landscape.

Now a Senior in high school, Alex plans to attendPurdue University and study engineering.

The Power of Good

On the Cover

” 1

Approximately 10 years ago, as part of an acquisition, I joined Berry.Since then, I have had the opportunity to work in a variety ofcapacities throughout the Company. No matter which position I held,or in which division, I have been able to witness first hand the powerthat good can have.

As a global leader in packaging and protection solutions, we believewe have a responsibility to play a positive role in the communities andenvironments in which we operate and serve. From the way weoperate our facilities, to the industry partnerships we have developed,to our community education programs, Berry is committed to our roleas a responsible corporate citizen.

We hope you enjoy this report and the glimpse it offers of the good weare doing and the power it is having. Tom Salmon, CEO of Berry,

answers questions after reading to a group of children at a daycare

facility near Berry’s global headquarters.

Message from Tom Salmon

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About Berry

At Berry, we are committed to our mission of ‘AlwaysAdvancing to Protect What’s Important,’ and proudlypartner with our customers to provide them with value-added customized protection solutions.

Our products include engineered materials, nonwovenspecialty materials, and consumer packaging.

With world headquarters in Evansville, Indiana, we haveapproximately 130 facilities across the globe.

Berry is listed on the New York Stock Exchange under theticker symbol BERY.

*

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Be GoodThe trends of healthy lifestyles, fresher and healthierfoods, and increased focus on healthcare continueto drive our customers’ businesses. To be preparedfor the growth in these markets, at Berry, we aredoing the following:

We continue to develop new offerings in ourhealthcare product lines. For packaging, thattranslates to easy-to-open and senior friendly, butalso child resistant packaging.

In addition, our nonwoven business continues toinnovate in areas such as softness and durability, todeliver incontinence and feminine care productsthat meet and exceed consumer expectations.

We are also expanding our Phillipsburg, New Jersey,facility by 150,000+ sq. ft. By updating and investingin this northeastern U.S. facility, we can better serveour global healthcare customers.

In May, we announced a significant capitalinvestment in our Health, Hygiene, and Specialtiesbusiness that will increase our capacity by over16,000 metric tons. The products from this divisionare used in items such as diapers, incontinencepads, and other healthcare products.

Extending shelf life is a good way to help fresh foodsstay viable longer. In support of this, we continue todevelop new types of barrier packaging that canhelp with shelf life extension.

Delivering customer preferred productswith lower resource requirements is acritical part of our Sustainability andSocial Responsibility efforts. In theHealth, Hygiene, and SpecialtiesDivision, we are very proud of our workto reduce environmental impact.We’ve delivered incredible results thatwere more than double our 2016energy intensity reduction targets.

Scott Tracey, President of Berry’s

Health Hygiene, and Specialties Division

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Jason PaladinoExecutive Vice President,

Innovation

At Berry, innovation is not just about creating new products; it is also aboutadvancing our processes and platforms.

Jason Paladino, the Executive Vice President of Innovation for the ConsumerPackaging Division at Berry, manages a team of talented Engineers, Scientists,Technicians, Designers, and Marketers all focused on the common goal ofinnovation through the use of our Innovation Blueprint. The InnovationBlueprint is designed to focus on the end-consumers needs as we movethrough the product development stages: Envision, Develop, Scale, andLaunch – all with validation touchpoints throughout.

Innovation Blueprint

“ Sustainability is a fundamental design principal considered during the "Envision" stage of any project atBerry. Optimizing designs for the lowest cost, selecting environmentally responsible materials, andchoosing efficient production methods while still meeting functional requirements are part of ourconsiderations. These decisions at the very onset of a project ensure that the final product has lowmaterial impact and that 'end-of-life' meets the desired sustainability objectives. One example of this isVersalite®, which was conceptualized during "Envision" as an insulating material that was also recyclable.Berry commercialized this innovation, and now offers it to the market as an environmentally responsible,recyclable, polypropylene, insulated cup.

Jean-Marc Galvez, President of Berry’s Consumer Packaging Division

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“ “

Feel GoodWe believe in the importance of continuous improvement.We strive to ensure that our actions help our employeesfeel good about knowing they are working in a safe andethically-sound environment; our communities feel goodas we implement initiatives to minimize our environmentalfootprint; and our investors feel good knowing that wemake solid business decisions to protect their investments.

In this same vein, we continuously strive to advance oursustainability reporting. Two years ago, we published ourfirst Corporate Social Responsibility report, which includedgoals for reducing our environmental impacts in severalkey areas: electricity, natural gas, water, greenhouse gas,and landfill waste intensity.

Last year, we published our second report, which, for thefirst time, included year-over-year performance in each ofthe aforementioned areas.

This year, we are moving toward reporting information on a broader range of topics and doing soaccording to the Global Reporting Initiative (GRI) framework. This will provide additional informationwhich interests many of our stakeholders. We are disclosing this information in hopes of being a soundcorporate citizen and to ensure that all of our stakeholders feel good about our transparency. As this isour first year in working towards full GRI reporting, we are beginning with a limited scope of GRIdisclosures. As with everything wedo, we plan to continuouslyimprove our efforts in this area andincrease our disclosures in thecoming years.

These additional disclosures willbe published in a separate GRIIndex found on berryglobal.com.

Robert Flores,Director of Sustainability

* This data represents year-over-year performance for manufacturing sites operated by Berry Global in FY2015. It excludes FY2016 acquisitions. This data has not been audited by a third party. 98

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Darin WestEngineering Manager

Homer, Louisiana

As our facility footprint continues to grow, we are conscious that our energy usewill increase as well. Energy is an aspect of the business that Berry is focusedon to maximize our efficiency globally.

Provided as an example are the results achieved by one our EngineeredMaterial Division facilities in Homer, Louisiana. This year's energy conservationactions reduced their electrical intensity from 1.92 kWh / lb (2015) to 1.59 kWh /lb (2016).

Plant Engineer, Darin West, helped drive Homer's energy intensity reductionactivities with several projects including chiller system improvements, lightingretrofits, and eliminating phantom load by implementing energy managementsystem controls.

Energy Reduction

Berry’s Homer,

Louisiana, facility

has reduced

their electrical

intensity by 17%

Homer’s most impactful improvement came through analyzing their HVACchiller performance. They replaced old, inefficient chillers with modern, high-efficiency systems. Chiller loop system piping improvements helped to betterutilize chilled water. In addition, several key components on the chillers wereupgraded, repaired, and replaced. Moreover, programmable touch screencontrols were upgraded.

The combined impact of all of these changes allow Homer to cycle offcooling circuits more frequently and avoid running un-needed compressorcapacity for about eight months of the year. With the exception of the hotsummer months, Homer has reduced 465 tons of chiller capacity throughthese actions.

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We know the best path for creating a strong future for all of our stakeholders isthrough embracing and understanding the importance of diversity andinclusion.

By doing so, we are able to learn from the unique talents and perspectives thateach of our employees brings to the organization. This, in turn, fostersinnovation and supports our drive for continuous improvement.

In support of this, we launched Plugged In Diversity and Inclusion network at ourEvansville, Indiana, and Charlotte, North Carolina, facilities. Plugged Inregularly hosts programming and resources to ensure that our employees areequipped with the best skills and knowledge to grow personally andprofessionally. In 2017, we will be making the programming available to all ofour facilities.

Diversity & Inclusion

My team and I are often asked, ‘What does good look like in regards tosafety.’ Statistically speaking, Berry’s safety is good – our incident rate is farbelow the industry average. But at Berry, we do not view safety as a merestatistical comparison with our peers. We view good safety as a journeywhere together we are continually improving our practices to help usfurther ensure the safety of each other and the safety of our products.

A key tool is our EHS framework, which consists of 20 key elements aroundwhich each of our facilities conduct a self audit. Through this process, thefacilities are able to identify their strengths and areas for improvement.And, by having the framework as a global tool, our facilities are able tocollaborate with each other, share best practices, and together makeBerry an even safer place for our employees.

Jim Alexander is Berry’s Vice President of EHS and

Operational Excellence. Jim is pictured here at a

facility discussing their self audit within the EHS

framework.

A Journey

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Do GoodDoing good is connecting beyond ourselves for alarger purpose. Doing good is giving back andreaching globally.

At Berry, we are proud of the partnerships we havewith our communities and the good that we can dotogether. A few of the initiatives that Berry and itsemployees participated in during 2016 included,environmental beautification, hosting informationalsessions so students and teachers could learn aboutcareers in manufacturing, conducting communitysafety awareness programs, participating in blooddrives, assisting with disaster relief efforts, and muchmore.

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Page 10: 2016 Corporate Social Responsibility Report€¦ · first Corporate Social Responsibility report, which included goals for reducing our environmental impacts in several key areas:

Rory Harris, organized a team and led the efforts to replace a dilapidated bridge to allow for safe access to hiking trails

in his community.

In 2016, we held our first annual Global Earth Day Scholarship Program,through which we awarded six deserving high school students a one-time$1000 scholarship. As part of the program, each student prepared andexecuted a sustainability project and submitted a report of their efforts, asdetailed below.

Earth Day Scholarship

Jacob Muller collected used clothing and plastic bread wrappers to makestrips of materials necessary to weave rugs that will be donated to non-profitcommunity organizations.

Emily Paul started a recycling program at her high school football games.Hannah Philpott revitalized an area at her high school grounds to create abutterfly garden honoring students who have perished.

Sydney Tungate assisted Waterfowl USA (a national non-profit) by building andinstalling wood duck nesting boxes near lakes in her community.Conner Voegel transformed an area of land on his parents’ property into a plotfor a vegetable garden, and he plans to donate the harvested vegetables toa local shelter where he volunteers.

While Live United is a slogan for the United Way – Living United is also howwe feel we should interact with the communities in which we have facilities.

In that spirit, Berry has chosen the United Way as an organization in theUnited States for which we match employees’ monetary donations. Bydoing so, we are able to assist a variety of charities across the nation, whoin turn provide a hand up to those in need.

In addition to monetary donations, through the United Way, employeesvolunteer their time by assisting with the preparation of taxes for low-income residents, serving on the Agency’s allocations committee,participating in the organization’s Day of Caring, and much more.

In Evansville, Indiana, Curt Begle, President of our Engineered MaterialsDivision, chaired the United Way of Southwestern Indiana’s (UWSWI) 2016Campaign. Through this campaign, the UWSWI raised more than $4.6million.

Living United

Curt Begle (right), President of Berry’s Engineered Materials

Division, participates in a television interview to promote the UWSWI’s

campaign.

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“ ”

Through the summer internship program, I had theopportunity apply the skills I was learning in school,in a real world setting, while also networking withother interns and employees throughout Berry.

At Berry, we not only strive to advance the careers of our currentworkforce, but also advance the skills of the future workforce.

Summer Internship Program

In 2016, Berry hosted 93 interns in 16 differentdisciplines at facilities across the globe. Theprogram features not only the assigned projects,but supplemental monthly lunch and learns withexecutives, corporate-led networking events,intern-led activities, weekly lecture series, andfinal presentations.

Taylor Kluemper, Corporate Communications

Intern

Q: What attracted you to Berry when searching for an internship in demand planning?A: What attracted me to Berry was their transformation into an agile supply chain in order to meet theirfocus of maintaining a very high service level. The company’s constant quest to grow also matched mycareer goals as I am completing my education.

Q: How have your projects enhanced your education and understanding of your future career?A: I love my demand planning team. Rather than being just managers, they were great mentors. Theteam gave me interesting projects, directly impacting the division’s performance. The knowledge I havegarnered has instilled a confidence in me to take demand planning as a profession.

Q: Outside of your everyday tasks at Berry, what has been your favorite aspect of interning at Berry?A: Here at Berry, there is easy access to professionals of all departments and all levels. Everyone in thisfamily is always ready to lend a helping hand to achieve the required goal. The company and teamgives us freedom and resources to perform the required actions.

Interview with Hariharan Kalaivani

Demand Planning InternHariharan, pictured far left, with his fellow interns when they visited a recycling center.

1918

Page 12: 2016 Corporate Social Responsibility Report€¦ · first Corporate Social Responsibility report, which included goals for reducing our environmental impacts in several key areas:

Board of DirectorsThe Company’s Board of Directors has Audit, Compensation, and Nominating and Governance

committees. Each committee has operating procedures which outline their duties as a committee

member.

B. Evan Bayh

Senior Advisor of Apollo

Global Management and

Partner at McGuire Woods,

LLP

Joined 2011

Jonathan F. Foster

Founder and Managing

Director of Current Capital

LLC

Joined 2014

Idalene F. Kesner

Dean of Indiana University’s

Kelley School of Business

Joined 2014

Ronald S. Rolfe

Retired Partner of the

Litigation

Dept. of Cravath

Swaine & Moore LLP

Joined 2013

Thomas E. Salmon

Chief Executive Officer

Berry Global Group, Inc.

Joined 2017

Robert V. Seminara

Member of Apollo

Global Management

Joined 2006

Jonathan D. Rich

Retired CEO of Berry

Joined 2010

Carl J. (Rick)

Rickertsen

Managing Partner of

Pine Creek Partners

Joined 2013

Robert A. Steele

Former Vice Chairman of

Health Care at Proctor &

Gamble™

Joined 2014

Stephen E. Sterrett

Former Senior EVP and CFO

of Simon Property Group

Joined 2015

Scott B. Ullem

Current CFO of Edwards

Lifesciences CorporationJoined 2016

Forward-Looking StatementsThis report contains “forward-looking” statements concerning future events and financial performance. Words such as“expects,” “anticipates,” “estimates” and similar expressions identify forward-looking statements. Such statements are subject torisks and uncertainties, which could cause actual results to differ materially from those expressed or implied. The companyundertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information,future events or otherwise. Key risks and uncertainties are summarized in filings with the Securities and Exchange Commission,including Exhibit 99 in our Form 10-K, which are available on our website and at www.sec.gov. Factors that might affect: a) ourpackaging segments include product demand fluctuations; availability/cost of raw materials; competitive packaging, pricingand substitution; changes in climate and weather; crop yields; competitive activity; failure to achieve productivityimprovements or cost reductions; mandatory deposit or other restrictive packaging laws; changes in major customer or suppliercontracts or loss of a major customer or supplier; political instability and sanctions; and changes in foreign exchange or taxrates; b) our aerospace segment include funding, authorization, availability and returns of government and commercialcontracts; and delays, extensions and technical uncertainties affecting segment contracts; c) the company as a whole includethose listed plus: changes in senior management; successful or unsuccessful acquisitions and divestitures; regulatory action orissues including tax, environmental, health and workplace safety, including U.S. FDA and other actions or public concernsaffecting products filled in our containers, or chemicals or substances used in raw materials or in the manufacturing process;technological developments and innovations; litigation; strikes; labor cost changes; rates of return on assets of the company’sdefined benefit retirement plans; pension changes; uncertainties surrounding the U.S. government budget, sequestration anddebt limit; reduced cash flow; ability to achieve cost-out initiatives; interest rates affecting our debt.

SustainabilityRobert Flores

1(812)[email protected]

Corporate CommunicationsEva Schmitz1(812)[email protected]

ContactsInvestor RelationsDustin Stilwell1(812)306-2964

[email protected]

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