Avery Dennison : ESG Report

ESG Download

Avery Dennison ESG Reporting

March 2022

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The Sustainability Accounting Standards Board (SASB) categorizes Avery Dennison within its

Containers & Packaging sub-sector under its Sustainable Industry Classification System (SICS).

Our packaging-related reportable segment, Label and Graphic Materials (LGM), represented 65% of our total 2021 sales. Our label materials enhance shelf appeal for brands, inform shoppers and improve operational supply chain efficiency. Our Graphics Solutions business is a global leader in self-adhesive and specialty media for professional graphics providers and designers.

Our Retail Branding and Information Solutions (RBIS) business represented 26% of our total 2021 sales. RBIS provides physical and digital labeling solutions that allow customers in the global apparel, food and general retail markets to optimize their on-product branding and engagement with consumers and enables item visibility and traceability from source to end-of-life. RBIS solutions include variable data labels, radio frequency identification (RFID) solutions, shelf-edge labels, tickets, tags, woven and fabric labels, heat transfers, software, printers and consumables.

Our Industrial and Healthcare Materials (IHM) businesses, which represented 9% of our total 2021 sales, provide highly engineered tape, adhesive and fastener solutions for industrial, automotive, building and construction, personal care and healthcare markets worldwide. We enable customers to enhance their products' performance and make their manufacturing processes more efficient.

We chose to include SASB sector standards from the Containers & Packaging, Apparel, Accessories & Footwear and certain relevant Chemical indicators.

Further discussion of our sustainability initiatives and progress against our sustainability goals can be found in our 2021 Integrated Report.

The sustainability data provided in this download is unaudited.

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Avery Dennison - ESG Download (MARCH 2022)

Scope

Unless specifically stated, this download covers acquired businesses owned for a full calendar year. Acquisitions made after the close of the fiscal year are excluded.

As a result of data unavailability, specific data points and indicators on certain topics only show partial-year data. In these cases, the time period will be clearly indicated, and the full year data will be provided after it becomes available.

Definitions

Facility: We use the term "facility" to describe any location that we own or lease. This designation includes all locations, including manufacturing, converting/distribution centers, research and development, warehouses, fast response units and office locations.

Manufacturing Facility: We use the term "manufacturing facility" to describe any location in which we manufacture products. This designation excludes converting/distribution centers, research and development, warehouses, fast response units and offices locations.

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Avery Dennison - ESG Download (MARCH 2022)

Avery Dennison 2020 Materiality Matrix

				Data Privacy and Cyber Security			Climate Resilience
				Water Use			Compensation and Benefits
							Employee Engagement
Stakeholders						Training and Development
		Collective Bargaining			Human Rights, Supply Chain Labor,
Externalto
		Taxation			Safety Standards
Importance
		Indirect Economic Impact			Responsible Advocacy

Local Environmental Impacts

Philanthropy and Charitable Giving

Responsible Marketing

Advancing the Circular Economy

Diversity, Inclusion and Equal

Opportunity

Employee Health and Safety

Ethical Practices

GHG Emissions and Energy Use

Materials Management

Waste

Business Continuity

Customer Satisfaction

Innovation

Substances of Concern and

Materials

March 2022

*Updated materiality assessment is currently under way.

Communities

Employees

Governance

Products and Services

Supply Chain

Sustainable Processes

Importance to Avery Dennison

Avery Dennison - ESG Download (MARCH 2022)

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Our 2025 Sustainability Goals		March 2022
		2025 Goals	Baseline (2015)	2021 Results
						70% of revenues from sustainability-driven products		50% LGM
							55% RBIS
						3% absolute greenhouse gas (GHG) emissions reduction every year (26% cumulative by 2025)*		48% cumulative GHG
								emissions reduction
						100% certified paper		91% certified
						70% Forest Stewardship Council (FSC)-certified face paper	45% FSC-certified	81% FSC-certified face paper
						95% landfill-free	90% landfill-free	94% landfill-free†
						75% waste recycled	55% recycled	67% recycled†
						70% of films we buy conform to, or enable end products to conform to, our environmental and social guiding principles		97% of films
						70% of chemicals we buy conform to, or enable end products to conform to, our environmental and social guiding principles		96% of chemicals
						40% women in manager level and above	32%	35%
							0.31 Recordable Incident Rate	0.21 RIR
						Maintain world-class safety and employee engagement scores	(RIR)
						80% engagement	82% engagement

Publicly commit to goals/report progress

*GHG baseline and actual data are from Q3 YTD comparisons (Q3 2015 to Q3 2021).

† 2021 waste and recycling data are from Q3 YTD.

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Avery Dennison - ESG Download (MARCH 2022)