Avery Dennison : ESG Report

ESG Download

Avery Dennison ESG Reporting

March 2023

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From Our Leadership

Our team at Avery Dennison once again delivered impressive results in 2022 in the face of an extremely challenging environment. We continue to make significant advancements toward our long-term environmental, social and governance (ESG) goals.

Sustainability is integral to our success

Sustainability is core to our strategy and our culture as we focus on the long-term health of our business, communities and planet. We are committed to using our resources, our deep operational experience and our most innovative ideas to drive better outcomes for our industries, our customers, our team and our world. Last year, we continued to make progress in mitigating our own carbon footprint and in developing solutions that enable our customers worldwide to lower theirs. We are on track to achieve our 2025 sustainability goals, and have accelerated our plans to deliver our 2030 goals.

Supporting our people and communities worldwide

The Avery Dennison Foundation (ADF) represents an important part of our commitment to our communities. Our recent grants are helping communities educate their children, offer life skills and health programs for at-risk women and girls, and provide many other areas of support. Our diversity, equity and inclusion programs also play a key role, ensuring that every employee has a voice, the opportunity to contribute and the room to grow and develop.

ESG Download | March 2023

Last year, we continued to make progress in mitigating our own carbon footprint and in developing solutions that enable our customers worldwide to lower theirs.

Advancing ESG governance and transparency

Governance and transparent communication of our material topics and progress are key elements of our ESG program. We updated our materiality assessment in 2022 to reflect the topics that have the greatest impact on our business and the industries we serve. We also expanded the data that we share externally and changed the order in which we present our data to more closely align with our goals. Our ESG download is the primary source of data on our ESG progress.

Thank you for your interest in Avery Dennison and our ESG efforts.

Deon Stander

President & COO

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About This Report

Materials Group

Our Materials Group (label materials, graphic and reflective materials, and functional bonding materials such as tapes), which represented 72% of 2022 total sales, is an industry-leading provider to the pressure-sensitive label and graphics industries worldwide. Our label materials enhance shelf appeal for brands, inform shoppers and improve operational supply chain efficiency. Our graphics solutions include a comprehensive portfolio of highly engineered materials that range from vehicle wraps to architectural products.

The Materials Group plays a key role in advancing our fast-growing Intelligent Labels platform, providing the materials science capabilities and process engineering expertise that are essential to developing and manufacturing Intelligent Labels at scale.

Solutions Group

Our Solutions Group, which represented 28% of 2022 total sales, is an industry-leading provider of radio frequency identification (RFID) solutions, branding and embellishment solutions, data management and identification solutions, and pricing and productivity solutions. Its business provides physical and digital labeling to the global apparel, food and general retail industries. The products and technology optimize customers' on-product branding and engagement with consumers, and enable item visibility and traceability throughout a product's lifecycle.

As the largest ultra-high frequency RFID solutions provider, we leverage our data management capabilities, global supply chain and market access in the ongoing advancement of our Intelligent Labels platform. We enable customers across multiple retail and industrial segments to bridge the physical and digital worlds for greater supply chain visibility, improved inventory accuracy, increased automation and labor efficiency, reduced waste and an enhanced consumer experience.

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About This Report

Standards

The Sustainability Accounting Standards Board (SASB) categorizes Avery Dennison within the primary industry of Containers & Packaging under its Sustainable Industry Classification System (SICS). SASB also categorizes Avery Dennison within secondary industries of Apparel, Accessories & Footwear and Chemicals. Avery Dennison reports relevant indicators across all three of these sector standards.

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.

Scope

Unless specifically stated, all 2022 data reported in this download covers acquired businesses owned for a full calendar year. Acquisitions made after the close of the 2022 fiscal year are excluded. In some cases, historic metrics were recalculated to include acquisitions as necessary for our goals, and those instances are specifically noted.

Select metrics represent partial year data due to limited data availability. In these cases, the time period will be clearly indicated, and full year data will be provided after it becomes available.

Further discussion of our sustainability initiatives and progress against our sustainability goals can be found in our 2022 Integrated Report.

Certain prior-year energy, emissions and paper data has been third-party verified. Verification information is available in our CDP Climate and Forest disclosures. All other data is unaudited.

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About This Report

Materiality

In 2022, Avery Dennison completed a significant update to our materiality assessment, which entailed updating the mapping of our sustainability and ESG priorities throughout our value chain. Our comprehensive process included interviews to collect feedback from internal and external stakeholders such as non-governmental organizations (NGOs), customers and partners, as well as industry analysis. There are many topics material to our business when looking at importance to external stakeholders and impact on our business success, including core, table stakes topics and key business and partner differentiators. However, those topics that were ranked highest in our updated assessment represent those that offer the most strategic, value-creation opportunities, as listed below.

Most Material Topics in 2022

1	2	3	4
Transition to	Advanced	Climate	GHG
a Circular	Technologies	Change	Emissions &
Economy	& Innovation		Reductions

5	6	7	8
Supply Chain	Fair &	Materials	Operational
	Inclusive	Management	Waste
	Workplace

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