Sustainability at Bunzl

2023

Part of the Responsible Solution

BUNZL PLC

Providing Tailored Solutions for a Better World Our global scale, vast experience, flexibility, and unwavering passion means we are working proactively to help solve the problems society faces, both now and in the future. We understand our role as an influential leader in the transition to a more sustainable and equitable future.

• Our focus is to provide a range of options that will suit each customer’s unique goals of sustainability and stewardship.

• Constantly researching products and materials that are less harmful to the environment.

• Our paper products can be designed and ordered with FSCTM logo, tracing materials back to a sustainable source.

Bunzl’s Commitment to Sustainability

Responsible Supply Chains

Respecting human rights with our industry-leading Global Supply Chain Solution team in Shanghai.

Investing in our people and a diverse workforce

Our local businesses are focused on developing talent, increasing diversity and enhancing inclusivity practices.

Taking further action on climate change

Consolidating orders from a range of sources into one delivery to reduce transport emissions and taking direct action to tackle climate change.

Providing tailored alternative solutions

Using our unique position at the center of the supply chain, working with customers and suppliers to lead the transition towards a sustainable approach to packaging.

Our Responsible Sourcing Commitments

Social Accountability

Quality Assurance

Example audit sections: Recruitment and termination, forced labor, discrimination, harassment and abuse, working hours and wages, and health & safety

Example audit sections: Facilities and maintenance, incoming materials control, finished goods control, management systems; and hygiene

Bunzl Auditing Standard Over 150 issues assessed

Investing in Our People and a Diverse Workforce

• Achieving parity of engagement scores across ethnic groups in our North American business, and other parts of the Group where data collection is possible.

• Providing a voice for under-represented colleagues, and acting on their feedback to address any real or perceived barriers to engagement.

• Providing a safe workplace for all employees and creating a culture where health and safety are key values.

• Identifying the next generation of leaders from a more diverse pool of talent, balancing broader capabilities while retaining entrepreneurial skills.

Encouraging more women into leadership roles through focused and targeted activities including giving all employees with high potential an internal or external mentor, ensuring that we consider female candidates where we can for senior leadership roles, and continuing with the roll out of our successful women’s networks.

45%

28%

26%

In Asia Pacific there are 45% women in senior positions (leadership -1) with an increase of 10% during 2022

Of senior leadership roles in our UK & Ireland operating companies are held by women

Of external hires in North America were female in 2022, an increase of 7%

Bunzl’s Emission Reduction Targets Our emissions reductions targets (scope 1, 2, and 3 emissions) have been approved by the Science Based Targets Initiative.

Our Carbon Targets Scope 1 & 2

Scope 3

NET-ZERO

50% more carbon efficient (equivalent to a 27.5% absolute reduction) by 2023

79% of supplier emissions will have science-based targets by 2027

Net-zero emissions including scope 3 by 2050

Transitioning vehicles to low and zero-carbon solutions and alternative fuels. Installing energy efficiency measures, efficient routing systems and buying more renewable energy.

Working with our largest suppliers of goods and services to set sciencebased carbon reduction targets over the next five years.

We will be developing our net-zero roadmap during 2023 (for publication in 2024) in line with the ScienceBased Targets Initiative’s (SBTI) guidelines.

Bunzl’s Commitment to Sustainability

73%

41%

42%

of all food containers sold across the group are made from recyclable, compostable, renewable or reusable materials.

of the consumable products facing regulation have been transitioned to alternative materials.

of all bags sold across the Bunzl Group were paper, compostable or reusable.

Bunzl Group has long-term carbon reduction targets: currently using 14% renewable energy procurement and a 12% annual reduction in carbon emissions relative to revenue.

BUNZL NORTH AMERICA

BUNZL N.A.

Commitments in Action

Bunzl NA Goals

Goal 1: We will support our customers to remove, replace and reduce single-use plastics where we can.

Goal 2: We will increase the amount of recyclable, compostable or reusable packaging supplied to our customers to help them meet their targets.

Goal 3: We will work with our suppliers to increase the amount of recycled content in the packaging our customers use.

Key Partners

Industry

Legislation

• Customers • Strategic Suppliers

WHAT IS BUNZL DOING? 01

Providing sustainable solutions

Aligned with our customers’ goals to move towards 100% packaging that is reusable, recyclable or compostable, Bunzl North America partners with Eco Systems to deliver sustainable products for the foodservice and grocery sectors. The new range provides affordable solutions which comply with the fragmented legislative landscape along with sustainability advice and training.

Expert advice on emerging trends and products

Partnerships to close the loop

As a materials-agnostic distributor, Bunzl is well placed to provide customers with trusted and objective advice on complex sustainability issues. For instance, we partnered with a customer on their move away from petroleum-based plastics (while supporting them with alternative products). We track plastics legislation to help our customers keep pace with rapidly evolving legislation at all levels of government.

We have partnered to create a film-based recycling program using our infrastructure. The store teams collect clear, film-based plastic (e.g., produce bags, pallet wrap), which is back-hauled at the time of each store’s weekly Bunzl delivery to our Distribution Centres. The plastic waste is then sent for recycling by a local service provider.

Bunzl’s NA Blue Key Program Our Blue Key Advisors at Bunzl are here to support your efforts to navigate the landscape and make the transition to alternatives that are in alignment with your circumstances. Setting strategy, offering thought leadership and providing support throughout our customers’ sustainability journeys.

Data A deep understanding of our products, customer sectors, operations, and their regional challenges.

Knowledge Our expert teams provide customer-specific advice and regular updates on new legislation and trends.

Solutions Uniquely positioned to supply the solutions our customers need to meet their targets, comply with legislation, and improve their sustainability credentials.

Unlock a more Sustainable future with our sustainability experts and tools

“

Jim McCool, CEO, N.A.

Sustainability is firmly embedded in the way we do business at Bunzl. We take a leading approach to ethical auditing across our supply chain, possess a carbon-efficient consolidation model, have set science-based climate targets and supply an extensive range of alternative packaging products to drive the transition towards a more sustainable and circular economy.

“

Jennifer Mackey,

Director of Sustainability, N.A.

Our companies are faced with an everchanging sustainability landscape, from fragmented legislation, to changing consumer preferences, increased compliance and confusing ESG reporting standards. We understand the cost challenges our customers often face when transitioning to alternative packaging solutions and that’s why we partner with companies like Eco Systems to offer trusted packaging solutions and launched a material footprint tool that helps you manage changing legislation, meet compliance with regulations, such as PFAS in fiber-based packaging, and achieve your sustainability targets.

GROCERY & RETAIL 01

Designing for Circularity

New Materials & Product Development • Developed compostable, flexible produce bag • Solutions that protect product and extend shelf life, while offering 30% reduction in plastic vs. clamshells

• RPET trays made from recycled thermoforms and labelled with APR-approved wash-off labels

Smart Material Choices

EPS & PVC Alternatives • Considerations: Shelf life, food contact safety, overall environmental impact factors, cost

• Samples and performance testing pilots

Promoting Responsible Usage

Our Keenpac Bags Business • New, innovative solutions • Recycled PET • Made from recycled, ocean-bound materials • Self-folding construction • During COVID pandemic, created public service

campaign about how to use reusable bags safely

BNA DEIB Vision Statement

BNA DEIB Team

Every employee will be seen for who they are and Bunzl will appreciate each employee’s perspective and unique talents. Bunzl will cultivate an environment where all employees have a true sense of belonging.

A Few Highlights Over 4,000 Employees Have Completed Diversity Appreciation Training In North America Training: • Employee and leadership DEIB Training Program Rolled Out

Employee Resource Groups: • Inspiring Women in Bunzl Established – ERG

• Steering Committee created for 2 additional ERGs

Communications:

Engagement:

• Intranet Page Established

• Events celebrating heritage months

• Celebrating our diverse workforce

• Partnership with Urban League

with employee spotlights & a communications calendar

of St. Louis

• Annual Listening Sessions w/ BNA CEO and Bunzl Employees

BUNZL RETAIL SERVICES

BUNZL RETAIL

Commitments in Action - Sustainability Stories

Reusable Packaging

Macy’s reached out to Bunzl looking for a bag that could be touted for its reusability as well as being made from sustainable materials. This line of reusable bags is made of 100% Woven RPET sourced from ocean-bound plastics and was produced as a retail item inclusive of hangtags.

Material: Woven RPET made from ocean-bound plastics Production: Vietnam and China Current Program: 2 million bags, 500,000 each of 4 styles

eCommerce Packaging

The Bunzl team worked with Amazon to make an already successful gifting add-on program more environmentally friendly. By simply substituting the material for their signature gift bags with 100% recycled content (RPET), Amazon ensured that their customers could feel even better about the gifts they send!

Material: RPET bag & RPET ribbon closure Production: 7+ facilities in over 3 countries, 150 million bags to date, 8+ yrs. Current Program: 10 gift bag SKUs available gift tags with ribbon

Supplies Distribution

Along with managing weekly, consolidated supply delivery to over 3,000 stores across North America and Canada, Bunzl has helped TJX with several of their recent sustainability initiatives including the successful transition to FSC Certified, Phenol-free receipt tape. Phenol-free receipt tape can deliver a safer shopping experience for retail customers and staff. Bunzl has also assisted in the successful switch from poly to paper bags in select markets to meet new environmental legislation requirements.

Freight Optimization A national grocery chain utilized Bunzl’s expertise in freight optimization to provide a more sustainable outcome and a positive impact to their bottom line. Through demand planning and smart consolidation of store supplies, fewer trucks were needed for new store opening deliveries.

22% Fewer Miles Driven by Trucks YOY

Sourcing Services

In 2023 Bunzl introduced a new chemical line to its customers using ChemPacs instead of disposable prefilled bottles and containers. A ChemPac is a concentrated cleaning solution that is encapsulated in a water-dissolvable film and dissolved in water at the store location.

VS 6 bags of ChemPacs

1 pallet of conventional cleaner

600 quarts 6.3 pounds 1,470 cubic inches

600 quarts 1,200 pounds 96,000 cubic inches

Shipping only the cleaning concentrate saves an enormous amount of waste that would have been used on larger shipping boxes and packaging. The product itself is also safe and sustainable and completely dissolves in water with no leftover waste.

Warehouse Operations

100% Recycled Content Shipping Boxes By exclusively using 100% recycled content shipping boxes in our warehouses, we are helping to save annually:

12,775,000,000 Gallons of Water

1,825,000

Tons of Greenhouse Emissions

7,300,000,000

KWHS Hours of Electricity

31,025,000 Trees

6,022,550

Cubic Yards of Landfill Waste

Bunzl Retail Services, CTC, and Keenpac comprise Bunzl – Retail Division. Bunzl is a global distribution and outsourcing provider headquartered in London. With over 190 warehouses in North America and over 360 worldwide, Bunzl is a leading provider to retailers in all aspects of their supply needs spanning 34 countries and 5 continents with over 30,000 employees globally.

Distribution

Retail Packaging

Visual Merchandising & Creative Solutions

GET IN TOUCH to learn more! bunzlservices.com

sustainability@bunzl.com