CDP 2015 Climate Change 2015 Information Request CDP Rexam Module: Introduction Page: Introduction CC0.1 Introduction Please give a general description and introduction to your organization. Rexam is a leading beverage can making company. We are no.1 in Europe and South America and no.2 in USA. We are business partners to some of the world’s most famous and successful consumer brands. Our vision is to be the best beverage can maker in the world. Rexam's sales from ongoing operations in 2014 were in the region of £3.83 billion. We have 55 plants in our 25 different countries and employ around 8,000 people. Rexam is a member of the FTSE 250 and its ordinary shares are listed with the UK Listing Authority and trade on the London Stock Exchange under the symbol REX. Rexam is also a member of FTSE4Good and participates in the annual RobecoSAM sustainabilty assessment - DJSI. In 2014 we were included in the DJSI Europe index and got the Bronze medal award. Rexam is rated at Gold' by Ecovadis. CC0.2 Reporting Year Please state the start and end date of the year for which you are reporting data. The current reporting year is the latest/most recent 12-month period for which data is reported. Enter the dates of this year first. We request data for more than one reporting period for some emission accounting questions. Please provide data for the three years prior to the current reporting year if you have not provided this information before, or if this is the first time you have answered a CDP information request. (This does not apply if you have been offered and selected the option of answering the shorter questionnaire). If you are going to provide additional years of data, please give the dates of those reporting periods here. Work backwards from the most recent reporting year. Please enter dates in following format: day(DD)/month(MM)/year(YYYY) (i.e. 31/01/2001). Enter Periods that will be disclosed Wed 01 Jan 2014 - Wed 31 Dec 2014 CC0.3 Country list configuration Please select the countries for which you will be supplying data. If you are responding to the Electric Utilities module, this selection will be carried forward to assist you in completing your response. Select country Argentina Austria Brazil Chile Czech Republic Denmark France Germany India Ireland Italy Mexico Russia Spain Sweden Turkey United Kingdom United States of America Select country Egypt Finland CC0.4 Currency selection Please select the currency in which you would like to submit your response. All financial information contained in the response should be in this currency. GBP(£) CC0.6 Modules As part of the request for information on behalf of investors, electric utilities, companies with electric utility activities or assets, companies in the automobile or auto component manufacture sub-industries, companies in the oil and gas sub-industries, companies in the information technology and telecommunications sectors and companies in the food, beverage and tobacco industry group should complete supplementary questions in addition to the main questionnaire. If you are in these sector groupings (according to the Global Industry Classification Standard (GICS)), the corresponding sector modules will not appear below but will automatically appear in the navigation bar when you save this page. If you want to query your classification, please email respond@cdp.net. If you have not been presented with a sector module that you consider would be appropriate for your company to answer, please select the module below. If you wish to view the questions first, please see https://www.cdp.net/en-US/Programmes/Pages/More-questionnaires.aspx. Further Information Module: Management Page: CC1. Governance CC1.1 Where is the highest level of direct responsibility for climate change within your organization? Board or individual/sub-set of the Board or other committee appointed by the Board CC1.1a Please identify the position of the individual or name of the committee with this responsibility The highest level of responsibility for Climate Change resides with our Executive Leadership team (ELT), which comprises 10 members of our most senior operational and functional executives and who meet quarterly. The ELT reports directly to the CEO, Graham Chipchase who oversees the group's performance in environmental matters including climate change, reporting on performance and progress to the Board. Our Group Sustainability Director directly reports into the Group Commercial Director, who comprises the ELT and whom meet monthly to review all sustainability issues including Climate change and whether to arise anything during ELT meetings. A specific committee 'Ensure Our Future team' is responsible for embedding longer term thinking when identifying opportunities and implementing leading practices in sustainability, innovation and risk management, led also by the Group Commercial Director a member of the ELT. For example this year, water is being the biggest focus in terms of sustainability for the Risk Leadership Team. The Audit and Risk Committee, reporting directly to the Board, assesses long term risks (+10 years) including climate change. Beneath all the high hierarchy we have a dedicated sustainability team at group level which ensures that all of our sustainability matters are understood and managed on a day to day basis. Our Group Sustainability Director, John Revess, provides leadership to our business units (Sectors), engaging them to achieve strong environmental results which support Rexam's vision to be the best beverage can maker in the world as well as a sustainable business. We track our performance with sectors every quarter to ensure we're on aligned with our targets; Our Balanced Scorecard shows traffic lights that enable us see how each indicator progresses and how we achieve our commitments and minimise resource use. CC1.2 Do you provide incentives for the management of climate change issues, including the attainment of targets? Yes CC1.2a Please provide further details on the incentives provided for the management of climate change issues Who is entitled to benefit from these incentives? The type of incentives All employees Monetary reward Facility managers Monetary reward All employees Recognition (non-monetary) Incentivized performance indicator Efficiency project Other: Cost Saving Target Behaviour change related indicator Comment Each business sector has an incentive programme partially based on improvements achieved through energy efficiency projects, which as a result reduce carbon emissions. This incentive is delivered via an annual bonus. We have a company wide performance appraisal/review process for all employees. For all Plant Managers cost improvement is part of their job performance, measured through personal objectives and the Sector profitability target. If a plant isn't meeting its cost saving targets (which include electricity/gas, water and utilities) it would/could impact the Plant Manager's grading and future remuneration. We have an award called "Blue Chip" which is given to an employee when they tangibly demonstrate Rexam's values or clearly acts following Leadership practises reaching a determined result. It incentivises behaviours which encourage One Rexam Way. Further Information Please check the document attached to see the filling in form for the Blue Chips in Rexam. Attachments https://www.cdp.net/sites/2015/68/15768/Climate Change 2015/Shared Documents/Attachments/ClimateChange2015/CC1.Governance/Blue Chip form.pdf Page: CC2. Strategy CC2.1 Please select the option that best describes your risk management procedures with regard to climate change risks and opportunities Integrated into multi-disciplinary company wide risk management processes CC2.1a Please provide further details on your risk management procedures with regard to climate change risks and opportunities Frequency of monitoring Six-monthly or more frequently To whom are results reported? Board or individual/sub-set of the Board or committee appointed by the Board Geographical areas considered The bi-annual risk review covers all sectors within Rexam (Europe, North America, South America and AMEA regions) which comprise of the individual manufacturing sites in the countries of operations (as noted in Section CC0.3). It also includes a review across corporate functions in PLC headquarters (Group Procurement, HR, Pensions, IM, Operational Risks, Legal & Communications, Finance, Tax, Treasury, Marketing and Sustainability). How far into the future are risks considered? 1 to 3 years Comment Rexam is dedicated to establishing and maintaining sustainable practices across all aspects of our business. We continually seek to improve our awareness and understanding of risks and opportuities that will impact our business, including those relating to climate change and use of energy. The scope of Rexam's multidisciplinary company-wide ERM approach covers climate change, energy and other potential risks of our business operations including financial, operational and reputational risks. Climate change issues, for example the potential operational and financial impact on our operations from drought, changes in legislation and regulation related to policy and climate etc. are addressed within our ERM framework. Rexam understands that our results are influenced by the weather as cold/poor weather conditions may adversely impact the demand of our products and our manufacturing processes. We see this as a risk but also as an opportunity for the business. CC2.1b Please describe how your risk and opportunity identification processes are applied at both company and asset level Rexam's risk management process is embedded in our significant business processes. We continue to further embed risk management process into our day-to-day operations across all levels of the organisation. Risks/opportunities are identified through the following input sources: a) suppliers', competitors' and customers' behaviours/activities b) Functions and business units review and monitoring c) macroeconomics & other external risk analysis d) strategic planning, forecasting and budgeting processes e) audit assessments, external input & benchmarking Rexam's risk identification process includes the following approaches: 1) The top-down approach includes risk review at Group level (including CEO & CFO) with respective Sectors and Functions, comparison of risks across the Sectors through the Risk Leadership team (RLT), Group Councils and Functional leadership teams. 2) The bottom-up approach where issues are articulated and reviewed at Sector Executive team meetings (with input from respective plant managers if required) and reported to Group for the risk review. 3) The outside-in approach where Rexam's risks are benchmarked against external sources like risk consultants/experts, publications, audits etc. The Materiality Refresh 2014 with stakeholders was performed to identify issues (risks & opportunities) of significance to Rexam from the sustainability aspect. A workshop to review these issues was carried out with the RLT and discussed the EOF theme team. It was concluded that long term risks should be aligned to Rexam's materiality priorities identified. For instance, we identified the risk of potential increase in cost due to introduction of energy taxes in certain countries through the input sources above. This could also be an opportunity to Rexam where mitigations can be shared with businesses in other countries to ensure that we are prepared in advance of the change. Our risk management process is reported on page 32 of our Annual Report. CC2.1c How do you prioritize the risks and opportunities identified? Rexam has standardised risk assessment guidelines to determine the risk category, the impact on the business, the likelihood of occurence and mitigating actions for risks identified, including those related to climate change. Using the risk assessment guideline, gross (before mitigations) and net (after mitigations) risk ratings are assigned to identified risks. The gross and net risk ratings enable us to identify and prioritise our key material risks for the Group, Sectors and Functions, consider the effect of current mitigations on managing the risks. Additionally in 2015 risk velocity and appropriate risk rating were incorporated into Rexam risk register to enrich our risk review and discussions. The risk rating not only allows Rexam to prioritise risks, it also enables us to focus our resources in managing and mitigating key risks items. The identified risks prioritised as key risks to the Group are reported to the Audit & Risk Committee (ARC). The risk heat map is a tool used to demonstrate risk prioritisation, and gross and net risk movements for key risks, following the risk assessment guidelines. Please see page 10 below (CEO's review) in the Annual report 2014 for the heat map matrix. Through the risk identification and prioritisation process, we understand that changes in climate affect our business. Although we do not have a climate change risk explicitly stated in our risk register, we have recorded risk relating to or as a consequence of climate change. For instance, drought in a region where we operate with heavy reliance on hydro power, caused an increase in energy costs due to lack of supply and potential business interruptions to us and our customers where water is of significance to their production activities. This allows Rexam to manage the risks by implementing mitigations such as close alignment with our customers , managing inventory levels, exploring alternatives sources of energy etc. CC2.1d Please explain why you do not have a process in place for assessing and managing risks and opportunities from climate change, and whether you plan to introduce such a process in future Main reason for not having a process Do you plan to introduce a process? Comment CC2.2 Is climate change integrated into your business strategy? Yes CC2.2a Please describe the process of how climate change is integrated into your business strategy and any outcomes of this process Our Processes 1. Sustainability Framework and Balanced Scorecard In 2014 Rexam refreshed it's sustainability framework, according to the materiality study and which indicators were relevant to stakeholders, as a result we have 15 KPIs which are reported and managed through our balanced scorecard process. Of the 15 KPI's, five are climate change driven (recycling rate, energy efficiency, carbon efficiency (Scope 1 & 2), carbon footprint (Scope 1,2 & 3) and lightweighting) and each has a clear target that is embedded into the business unit strategies. The ELT formally reviews performance every 6 months and action plans are mandated by the ELT in the case of underperformance. Rexam reports performance against the 15 targets at a Group level annually, which you can either see in our website link: http://www.rexam.com/index.asp?pageid=900 and some indicators as part of our business performance indicators, which include 6 financial and 6 non-financial, see Annual Report (page 31). Recycling - recycling rates is a key part of reducing our environmental footprint, because every can recycled saves up to 95% of the energy used to make a can with primary material; The metal maintains its good quality and it proves the capability of the material to be best in class. Some good examples of high recycling rates include Brazil where Recycling rates maintain a 98% rate and Europe whose recycling rate is 72.9% in 2012 (latest data available); Targets set by industry in our operating countries for 2015 are ambitious but yet achievable. Lightweighting, through innovation and improvements in the manufacturing processes, the weight of a standard can has been lightweighted about c.22% over the last 20 years. A can (and end) record in 2014 now only weigh 12.25g (check the document "Did you know?") yet it is capable of protecting the contents from light, pollution, breakage and delivering them to the end consumer in perfect condition. Our lightweighting indicator shows how we still continue, with the use of technology in our processes, to make our product use less metal, therefore our carbon performance improves every time we reduce weight in our cans. Our energy intensity (total MWh of energy consumption/normalised cans produced) has improved in 2.2% compared with the 2013 despite a 2% increase in production as well as a decrease of 0.27% increase in the MWh. We are on line to meet our 7% target by 2020. Carbon intensity in 2014 (Scope 1 &2/normalised cans produced) has improved 1.87% from 2013, we are also on track to meet our carbon intensity target of 7% by 2020. Water - Despite not having a water strategy, Rexam has significantly increased awareness and knowledge around this topic which is linked to climate change. From understanding our own consumption and water usage, to how can innovation help in water stressed countries are some of the improvements we've made in the last 2 years. We will submit our CDP Water questionnaire with more in depth of our improvements. 2. Strategic planning process The main material sustainability issues and their key risks and mitigations, including any climate change related issues/risks, that are relevant to the execution of our business strategies, are integrated into the strategic planning process. For example, the carbon reduction element is part of our customer value proposition. The planning process involves input from group councils, functional leadership teams and internal/external business intelligence - this is followed by a series of strategy workshops involving the Executive Leadership Team and the sector' executive teams, prior to the finalisation and approval of our strategic plan and its implementation. 3. Lean6signma We use universally recognised and well established continuous improvement tools such as six sigma to drive a culture of efficiency and economy in all that we do. This and our lean enterprise methodologies are well suited to support our sustainability objectives. They enable us to reduce our raw materials usage and our consumption of energy and water, thus reducing our carbon and environmental footprint. We have a long established internal process measuring lean enterprise progress, with an award system of Bronze, Silver, Gold and Beyond Gold. In 2015, our Joint Venture plant Guatemala was recognised as world class in assessments by the Shingo Institute for Operational Excellence. In addition one other Rexam plant in Brazil received then Silver medallion from the Shingo Institute recognition in 2014, Jacarei. We currently have a number of plants undergoing pre-assessment, including Recklinghausen Ends in Germany, and Naro Forminsk Ends and Cans in Russia. CC2.2b Please explain why climate change is not integrated into your business strategy CC2.2c Does your company use an internal price of carbon? No, and we currently don't anticipate doing so in the next 2 years CC2.2d Please provide details and examples of how your company uses an internal price of carbon CC2.3 Do you engage in activities that could either directly or indirectly influence public policy on climate change through any of the following? (tick all that apply) Direct engagement with policy makers Trade associations CC2.3a On what issues have you been engaging directly with policy makers? Focus of legislation Other: Resource Efficiency Other: Food waste Corporate Position Details of engagement Proposed legislative solution Support Direct representation to policymakers regarding packaging waste Higher recycling rate targets and elimination of waste to landfill for valuable recyclable materials Support Indirect representation to policymakers on the value of packaging in reducing food waste and creating resource efficient value chains. (http://www.incpen.org/) Free and fair market access for all packaging solutions. Manufacturers and retailers working together to promote responsible packaging for resource-efficient sustainable supply chains CC2.3b Are you on the Board of any trade associations or provide funding beyond membership? Yes CC2.3c Please enter the details of those trade associations that are likely to take a position on climate change legislation Trade association Metal Packaging Europe, CMI, BCME, Abralatas Aluminium Stewardship Initiative (ASI) Is your position on climate change consistent with theirs? Please explain the trade association's position How have you, or are you attempting to, influence the position? Consistent Statutory higher recycling rate targets and elimination of waste to landfill for valuable recyclable materials. Actively contributing to stakeholder consultations Consistent Working with a broad range of stakeholders to foster sustainability and transparency in the aluminium value chain. The Standard, publised in 2014 requires Existing smelters to demonstrate that they have put in place the necessary management system, evaluation procedures, and operating controls to limit the direct GHG emissions. By 2030, existing smelters shall demonstrate that the level of direct and indirect GHG emissions (scope 1 and scope 2) from the production of aluminium is at a level below 8 tonnes CO2-eq per metric tonne aluminium. It also requires that Smelters starting production after 2020 shall Actively involved and contributing towards the creating of a ASI standard Trade association Is your position on climate change consistent with theirs? Please explain the trade association's position demonstrate that the direct and indirect GHG emissions (scope 1 and scope 2) from the production of aluminium is at a level below 8 tonnes CO2-eq per metric tonne aluminium. CC2.3d Do you publicly disclose a list of all the research organizations that you fund? CC2.3e Do you fund any research organizations to produce or disseminate public work on climate change? CC2.3f Please describe the work and how it aligns with your own strategy on climate change CC2.3g Please provide details of the other engagement activities that you undertake CC2.3h How have you, or are you attempting to, influence the position? What processes do you have in place to ensure that all of your direct and indirect activities that influence policy are consistent with your overall climate change strategy? Active participation in the running of Metal Packaging Europe. Rexam chairs the Communications Committee and sits on the Recycling committee as well as the Executive Committee. CC2.3i Please explain why you do not engage with policy makers CC2.4 Would your organization's board of directors support an international agreement between governments on climate change, which seeks to limit global temperature rise to under two degree Celsius from pre-industrial levels in line with IPCC scenarios such as RCP2.6? Yes CC2.4a Please describe your board's position on what an effective agreement would mean for your organization and activities that you are undertaking to help deliver this agreement at the 2015 United Nations Climate Change Conference in Paris (COP 21) ASI (Aluminium Stewardship Initiative) has agreed to explore what a 2ºC compliant (in line with the Copenhagen Accord at UNFCCC’s 15th Conference of Parties) GHG emissions trajectory would look like for the entire aluminium sector, in collaboration with climate change experts, interested companies and potentially interested aluminium industry associations. Once this trajectory is better understood, ASI will consider if the criteria can be updated accordingly in a subsequent standard review. ASI already committed that their standard will have to demonstrate that the level of direct and indirect GHG emissions (scope 1 and scope 2) from the production of aluminium is at a level below 8 tonnes CO2-eq per metric tonne aluminium. Further Information Check the sustainability highlights document or 'Did you know' document to see some of our achievements in 2014 Attachments https://www.cdp.net/sites/2015/68/15768/Climate Change 2015/Shared Documents/Attachments/ClimateChange2015/CC2.Strategy/2014_Sustainability_highlights.pdf Page: CC3. Targets and Initiatives CC3.1 Did you have an emissions reduction target that was active (ongoing or reached completion) in the reporting year? Intensity target CC3.1a Please provide details of your absolute target ID Scope % of emissions in scope % reduction from base year Base year emissions (metric tonnes CO2e) Base year Target year CC3.1b Please provide details of your intensity target ID Scope % of emissions in scope % reduction from base year Metric Base year Normalized base year emissions Target year Comment Comment ID Scope Int1 Scope 1+2 Int2 Scope 1+2+3 % of emissions in scope 100% 100% % reduction from base year Metric Base year Normalized base year emissions Target year 7% Other: Metric tonnes CO2e per normalised unit of production 2013 10.08 2020 Our intensity target's denominator is calculated using normalisation production units 25% Other: metric tonnes CO2e per normalised unit of production 2020 We have also an intensity target comprising the whole carbon footprint of our products. Although we only measure carbon scope 3 for our European sector, we aim to report our company baseline before year end and have this baseline 3rd party assured. We will update this on our Rexam.com website. Please check document below to see how we understand implication on Scope 3 reporting. 2010 Comment CC3.1c Please also indicate what change in absolute emissions this intensity target reflects ID Int1 Direction of change anticipated in absolute Scope 1+2 emissions at target completion? Increase % change anticipated in absolute Scope 1+2 emissions Direction of change anticipated in absolute Scope 3 emissions at target completion? Decrease % change anticipated in absolute Scope 3 emissions Comment Over the past years pack mix changes have led to market growth in cans larger than any offset from carbon intensity reductions. However increasing post consumer recycling rates will ensure that overall absolute emissions decrease. We can't estimate what would be the % change anticipated for either Scope 1&2 or Scope 1,2 & 3 emissions. CC3.1d For all of your targets, please provide details on the progress made in the reporting year ID Int1 % complete (time) 14.3% % complete (emissions) 26.7% Comment We're on track to deliver our carbon intensity target (Scope 1 &2). CC3.1e Please explain (i) why you do not have a target; and (ii) forecast how your emissions will change over the next five years CC3.2 Does the use of your goods and/or services directly enable GHG emissions to be avoided by a third party? Yes CC3.2a Please provide details of how the use of your goods and/or services directly enable GHG emissions to be avoided by a third party Packaging Packaging, in general,is a net contributor to a sustainable society because it helps prevent product wastage. Independent research estimates that food waste has at least ten times the environmental impact of packaging waste. Beverage Cans (our main business) offer an absolute barrier for carbonated beverages so that the drink remains carbonated for longer than is the case with some other packaging materials (1year vs 3 months). Recycling Rates The recycling rate for beverage cans is the highest of any drinks packaging and this recycling creates a carbon credit that reduces the carbon impact of the drink in consumer hands. Up to 95% of the energy can be saved if the metal used in producing the product comes from recyclate rather than from primary material. We support recycling rates through various programmes in different countries such as Every Can Counts - and Metal Matters and internally through our own recycling contest called Community Can Challenge – In 2014 a new metal recycles forever mark has been created by Metal Packaging Europe, which encourages the licensed use of a Metal Recycles Forever Mark on-pack and off-pack as part of a behaviour change campaign, informing consumers about the inherent recyclability of metal packaging and encouraging them to recycle (http://metalpackagingeurope.org/recyclesmark/). We also work collaboratively with our customers and in 2014 Carlsberg asked Rexam to become part of their Circular Economy Community and one of our first activities was called "Cradle to Cradle" which looked at 5 sustainability aspects and certifies we have a balanced approach towards sustainability. More information can be found on pages 26 & 27 of our Annual report. The estimate of emissions saved thanks to consumers recycling our cans at 'end of life' adds up to 6,365,778 tonnes of CO2/year. Calculation: Weight of aluminium cans placed on the market in 2014: 789,000 mT Weight of steel cans placed on the market in 2014: 60,000 mT Recycling rates for Aluminium: 0.69 (global average recycling rates - see regional rates on page 31 in our Annual Report) Recycling rates for Steel 0.904 (Spanish recycling rate, source: www.latasdebebidas.org - the only country where we make/sell steel cans) Factor for CO2 emissions saved for Aluminium (according to European Aluminium Association): 9.8 t Factor for CO2 emissions saved for Steel (according to the International Iron and Steel Institute) 1.9 t Innovation Through the innovation of our manufacturing processes and lightweighting technology the carbon embedded in our operations and product significantly decreases as less material is used to produce the same amount of product – for example the can is today 22% lighter than it was 20 years ago. The lower weight contributes to lower distribution emissions while the cans stackable, space-saving frm makes it very efficient for distribution. All the scrap metal that comes out of the can-making process is sent back to our suppliers to be resmelted and fed back into the conitnuous loop. In 2014 Rexam saved 3,300 tonnes of aluminium lightweighting projects, which is the equivalent of 32,340 tonnes of CO2e CC3.3 Did you have emissions reduction initiatives that were active within the reporting year (this can include those in the planning and/or implementation phases) Yes CC3.3a Please identify the total number of projects at each stage of development, and for those in the implementation stages, the estimated CO2e savings Stage of development Under investigation To be implemented* Implementation commenced* Implemented* Not to be implemented Number of projects 909 909 146 763 0 Total estimated annual CO2e savings in metric tonnes CO2e (only for rows marked *) 1475.28 CC3.3b For those initiatives implemented in the reporting year, please provide details in the table below Activity type Energy efficiency: Processes Description of activity Gas: Compressor heat recovery, heat pump and valves for offices, recuperation heat from can on washer oven, Estimated annual CO2e savings (metric tonnes CO2e) 79.52 Scope Scope 1 Voluntary/ Mandatory Voluntary Annual monetary savings (unit currency as specified in CC0.4) 46469 Investment required (unit currency as specified in CC0.4) 14000 Payback period 1-3 years Estimated lifetime of the initiative 21-30 years Comment The format in which our sectors give us the savings on energy efficiency projects don't allow us to separate the Activity type Description of activity Estimated annual CO2e savings (metric tonnes CO2e) Scope Voluntary/ Mandatory Annual monetary savings (unit currency as specified in CC0.4) Investment required (unit currency as specified in CC0.4) Payback period Estimated lifetime of the initiative interconnection boilers to run two washers Scope 1 voluntary CC3.3c Energy efficiency: Processes Electricity: e-power machine, heat pump & valves, process blowers PID control, cabinets air conditioning, 1390.8 washer stops improvements, can selection sensor adjustment, Velocity from Necker. Scope 2 - voluntary Low carbon energy installation LED lighting, VFD for fans Scope 2 - voluntary 5.3 Scope 2 Voluntary Scope 2 Voluntary 1689500 510100 1-3 years 16-20 years 114 44 <1 year <1 year Comment 763 projects and it's emissions, therefore we give an overall description of activities and the average for other columns. The format in which our sectors give us the savings on energy efficiency projects don't allow us to separate the 763 projects and it's emissions, therefore we give an overall description of activities and the average for other columns. The format in which our sectors give us the savings on energy efficiency projects don't allow us to separate the 763 projects and it's emissions, therefore we give an overall description of activities and the average for other columns. What methods do you use to drive investment in emissions reduction activities? Method Dedicated budget for energy efficiency Employee engagement Dedicated budget for other emissions reduction activities Compliance with regulatory requirements/standards Dedicated budget for other emissions reduction activities Comment Rexam prioritises all energy saving projects that meet our ROI hurdle that also link into our sustainability targets. An average of 50% of all Manufacturing Cost Saving Capital is dedicated to Energy reduction activities. Much of this is spent on ‘rolling out’ the shared improvement projects but also, by using our central Energy Expert within our Technical support function, in conjunction with the local Energy teams at each manufacturing site, we run ‘Excellence In Performance’ (EIP) events that identify further opportunities and squeeze out more of that CO2 producing waste that we are all so focused on. Rexam runs the 'Community Can Challenge' in 11 plants across Europe to encourage recycling of drink cans in local communities around our plants. With typical levels of “Waste Reduction” experts of ~ 2% Six Sigma Blackbelts, 8% Six Sigma Greenbelts and 15% Lean Technicians, Rexam are well placed to identify and eliminate the wasteful areas of the process that create excess Carbon emissions. Tools these experts use range from Process Mapping of Energy hotspots, Hypothesis testing to identify and verify key process input variables, Total Productive Maintenance (TPM) to improve efficiencies that in turn reduce wasted energy, and autonomous Kaizen events that provide numerous incremental improvements. In some countries Rexam contributes to Extended Producer Responsibility' legislation to ensure minium recycling rate targets are achieved Rexam contributes to consumer behaviour change activities run by industry. For example Every Can Counts and MetalMatters in the UK CC3.3d If you do not have any emissions reduction initiatives, please explain why not Further Information Please check BCE corporate carbon footprint document for question 3.1b Attachments https://www.cdp.net/sites/2015/68/15768/Climate Change 2015/Shared Documents/Attachments/ClimateChange2015/CC3.TargetsandInitiatives/BCE corporate carbon footprint april 2014-20150507-162754.ppt Page: CC4. Communication CC4.1 Have you published information about your organization’s response to climate change and GHG emissions performance for this reporting year in places other than in your CDP response? If so, please attach the publication(s) Publication Status Page/Section reference Attach the document In mainstream financial reports in accordance with the CDSB Framework Complete 85 https://www.cdp.net/sites/2015/68/15768/Climate Change 2015/Shared Documents/Attachments/CC4.1/Rexam_Annual_Report_2014.pdf In voluntary communications Underway this is our first year page 20, 21 https://www.cdp.net/sites/2015/68/15768/Climate Change 2015/Shared Documents/Attachments/CC4.1/Rexam Final Content Plan by Material issue with logo.docx Further Information Module: Risks and Opportunities Page: CC5. Climate Change Risks CC5.1 Have you identified any inherent climate change risks that have the potential to generate a substantive change in your business operations, revenue or expenditure? Tick all that apply Risks driven by changes in regulation Risks driven by changes in physical climate parameters Risks driven by changes in other climate-related developments CC5.1a Please describe your inherent risks that are driven by changes in regulation Risk driver Carbon taxes Description Various carbon taxes and renewables targets in different countries or confederation of states could adversely affect our operational cost, procurement cost, compliance cost which will result in lower profits or high cost being passed through to our customers and ultimately consumers Potential impact Increased operational cost Timeframe 3 to 6 years Direct/ Indirect Direct Likelihood More likely than not Magnitude of impact Medium Estimated financial implications Management method Cost of management The financial implication varies from one country to another. Eg, in the UK, the CRC Energy Efficiency Scheme is a mandatory scheme aimed at improving energy efficiency and cutting emissions in large public and private sector organisations. These organisations are responsible for around 10% of UK’s emissions. Rexam is part of the UK CRC. The fee payable in relation to CRC is We monitor changes in regulation, seek advice from both internal experts and (if required) external consultants, and take the necessary actions to ensure full compliance and improve our energy efficiencies and consumptions. Using the CRC example, Rexam has rolled out ISO 14001 Environmental Management Standard to all Rexam-owned locations in the UK in order to improve Risk management processes and tools are already in place, therefore no additional cost would be required. Also using the same CRC example, we estimated two additional days for the ISO audit which can increase the existing audit cost by <10%, and also internal labour cost which represents one full time person for a month. Risk driver Description Potential impact Timeframe Direct/ Indirect Likelihood Magnitude of impact Estimated financial implications less than 1% of turnover. International agreements Kyoto Protocol to the United Nations Framework Convention on Climate Change (UNFCC) is an international treaty that sets binding obligations on industrialized countries to reduce emissions of greenhouse gases. In March 2007 the EU endorsed an integrated approach to climate and energy policy that aims to combat climate change and increase the EU’s energy security. They committed Europe to transforming itself into a highly energy-efficient, low carbon economy. With Increased operational cost Up to 1 year Direct More likely than not Lowmedium The financial implications of the risk vary depending on the regulations implemented. Management method Cost of management CRC scoring. Rexam continually monitors changes or proposed changes in laws or regulations that may adversely affect our business via our risk management policies and procedures, and legislation monitoring tools. Potential new regulations are monitored through established and effective membership of relevant trade associations, by direct collaboration with governmental and nongovernmental organisations and through our own efforts internally. This ensures the best possible chance of shaping a constructive outcome which is Risk management processes and tools are already in place, therefore no additional cost would be required. Risk driver Description Potential impact Timeframe Direct/ Indirect Likelihood Magnitude of impact Estimated financial implications Rexam’s operations in the Europe and other countries subject to this treaty, Rexam is committed to meet the requirements set. Uncertainty surrounding new regulation Packaging is expected to continue to be a focus for government legislators working within the sustainability agenda. Changes in packaging legislation and regulation could affect producer responsibility for recycling, carbon footprint and landfill taxation. Rexam, our customers and suppliers are also subject to various country, federal, state and provincial laws and regulations. Management method Cost of management favourable both to Rexam and our stakeholders. Increased operational cost Unknown Direct About as likely as not Medium The financial implications may vary depending to the regulations implemented. Rexam continually monitors changes or proposed changes in laws or regulations that may adversely affect our business via our risk management policies and procedures, and legislation monitoring tools. Potential new regulations are monitored through established and effective membership of relevant trade associations, by direct collaboration with governmental and nongovernmental organisations and Risk management processes and tools are already in place, therefore no additional cost would be required. Risk driver Cap and trade schemes Product labelling regulations and standards Description Rexam may be subject to the respective national cap and trade schemes, depending on the development of such schemes in the countries where Rexam operates. New regulations and requirements set on product labels could increase the operations and compliance costs of Rexam. The lack of agreed standards of measuring environmental impact could result in Potential impact Increased operational cost Increased operational cost Timeframe Unknown Up to 1 year Direct/ Indirect Direct Indirect (Client) Likelihood Unlikely About as likely as not Magnitude of impact Estimated financial implications Medium The potential financial implication may vary depending on requirement set. Medium Depending on the amount of information required on the new labelling regulation. For example, Grenelle II in France is the first expression of specific environmental labelling relevant to climate change. Management method through our own efforts internally. This ensures the best possible chance of shaping a constructive outcome which is favourable both to Rexam and our stakeholders. We monitor changes in regulation, seek advice from both internal experts and (if required) external consultants, and take the necessary actions to ensure full compliance. We are monitoring and working continually to have an early warning approach to material changes in legislation. Cost of management The costs involved would be primarily labour and/or consultancy costs, and membership of trade association where applicable. The costs involved would be primarily labour and/or consultancy costs, and membership of trade association where applicable. Risk driver Description Potential impact Timeframe Direct/ Indirect Likelihood Magnitude of impact Estimated financial implications Management method Depending where this regulations become obligatory could affect different parts of our business. We are already looking at alternative materials for our products and are doing this although national and international administrations and regulatory authorities confirm that there is no risk with the current materials in widespread use. Cost of management administrative burden to Rexam due to the individual national schemes requirements and also ineffective comparison of products, which could confuse or mislead consumers. Other regulatory drivers Strict regulation around certain materials used inside our product could increase the capital costs and innovation costs to establish the validity and suitability of alternative materials. Increased capital cost Unknown Direct More likely than not Medium CC5.1b Please describe your inherent risks that are driven by change in physical climate parameters The cost of management is mainly due to investment in innovative materials. Risk driver Descriptio n Change in precipitatio n pattern In Brazil more than 90% of its power generation is hydro electric and the majority is generated in the southeast region. The prolonged drought in Brazil has heightened the risk of increasing input cost and business interruption. Tropical cyclones (hurricanes and typhoons) Adverse weather conditions can damage our plants and disrupt our business operations. Potential impact Reduction/disruptio n in production capacity Reduction/disruptio n in production capacity Timefram e Up to 1 year Unknown Direct/ Indirec t Direct Direct Likelihoo d Virtually certain About as likely as not Magnitud e of impact Estimated financial implications Management method Cost of management High Significant increase in energy prices and potential impact from business interruption. Entered into a long term agreement with energy suppliers and continue to work on business continuity plan. The impact of high energy prices and the new contract cost. Medium The financial implications can vary depending on the severity of the risk. We could also be negatively affected if the adverse weather/natural disaster hits our consumers/customer s and suppliers. For example, even We have business continuity plans that are regularly updated and property damage/busines s interruption insurance in place. The Business continuity workshop represents 5% of operational risk project budget and that property damage/busines s interruption insurance premium represents > Risk driver Descriptio n Potential impact Timefram e Direct/ Indirec t Likelihoo d Magnitud e of impact Estimated financial implications Management method though the chances are low and we have not experienced such incidents in the past, a plant (for example Guatemala) could be potentially hit by hurricane which would affect 1% of Rexam’s volumes. Change in precipitatio n extremes and droughts Change in precipitation extremes and droughts may adversely affect the yield of crops of fruits and vegetables and lack of water supply. This may result in lack of demand for Rexam’s packaging products. Reduced demand for goods/services Unknown Indirect (Client) About as likely as not Medium The change in precipitation extremes and droughts can potentially bring negative impact to our results. The financial implications can vary depending on the severity of the risk. One example would be our California plants. Cost of management 50% of total annual premium We continue to monitor our energy consumption and efficiency, and emissions from our operations with related targets the business has to achieve. Environmental impacts of our products and climate change are considered in Business. We're already looking to how innovation, technology, targets and awareness can help us prevent future possible No additional cost will be incurred as these processes are in place Risk driver Descriptio n Change in temperatur e extremes Change in temperature extremes may not only adversely affect the yield of crops of fruits and vegetables; it will also affect consumers’ lifestyle and preference. This may result in lack of demand for Rexam’s packaging products. Potential impact Timefram e Direct/ Indirec t Likelihoo d Magnitud e of impact Estimated financial implications Management method Cost of management situations. Reduced demand for goods/services 3 to 6 years Direct Likely Medium The change in precipitation extremes and droughts can potentially bring negative impact to our results. The financial implications can vary depending on the severity of the risk. CC5.1c Please describe your inherent risks that are driven by changes in other climate-related developments We continue to monitor our energy consumption and efficiency, and emissions from our operations. Environmental impacts of our products and climate change are considered in Business. No additional cost will be incurred as these processed are in place Risk driver Changing consumer behaviour Description Potential impact The risk of changing consumer trends resulting in a shift away from demand for the beverage cans Rexam manufactures. Drivers of this risk could include lifestyle and Reduced taste change, demand for nutrition and goods/services health considerations, environmental concerns or legislation. Increase focus of our customers in driving emissions reduction through their supply chains Timeframe 3 to 6 years Direct/ Magnitude Indirect Likelihood of impact Direct Very unlikely High Estimated financial implications Management method Cost of management This risk may adversely affect Rexam should consumers/customers/local legislation decide on alternative packaging due to the various reasons noted. The increased focus on emissions reductions by our customers has resulted in Rexam participating in CDP. These customers represent around 30% of Rexam’s revenue. We monitor market and consumer trends as well as political developments through our own and external business intelligence services and through our involvement in national and international packaging associations in the countries and regions where we operate. We have a “Legislative risk register” to manage and monitor this risk. We monitor the risk internally through Supply Chain functions, external energy consultants, as well as through trade Costs associated are mainly existing labour, marketing costs and trade association membership fees. The annual budgeted costs on these activities are <1% of turnover. Disclosing to CDP takes up to 6 weeks by up to 4 employees. Risk driver Description The reputational risk related to corporate Reputation responsibility on the environment and our products. Potential impact Reduced demand for goods/services Timeframe Up to 1 year Direct/ Magnitude Indirect Likelihood of impact Direct Unlikely Medium Estimated financial implications This risk may result in the lack of demand in Rexam’s product and adversely impacting bottom line depending on the magnitude of reputational loss. Management method associations such as the Aluminium Federation. We also perform annual completion of the CDP and also produce a Sustainability Report. Energy consumption and related GHG emission are monitored on a monthly basis. Additionally Rexam is also working on New Beverage Categories initiative. In addition to our sustainability communication, recycling initiatives and continuous improvement and innovations of our products, we also work with industrial partners to Cost of management Costs associated are mainly existing labour, marketing costs and trade association membership fees. Risk driver Description Potential impact Timeframe Direct/ Magnitude Indirect Likelihood of impact Estimated financial implications Management method Cost of management create and improve consumers’ awareness on the sustainability credentials of our beverage cans. CC5.1d Please explain why you do not consider your company to be exposed to inherent risks driven by changes in regulation that have the potential to generate a substantive change in your business operations, revenue or expenditure CC5.1e Please explain why you do not consider your company to be exposed to inherent risks driven by physical climate parameters that have the potential to generate a substantive change in your business operations, revenue or expenditure CC5.1f Please explain why you do not consider your company to be exposed to inherent risks driven by changes in other climate-related developments that have the potential to generate a substantive change in your business operations, revenue or expenditure Further Information Page: CC6. Climate Change Opportunities CC6.1 Have you identified any inherent climate change opportunities that have the potential to generate a substantive change in your business operations, revenue or expenditure? Tick all that apply Opportunities driven by changes in regulation Opportunities driven by changes in physical climate parameters Opportunities driven by changes in other climate-related developments CC6.1a Please describe your inherent opportunities that are driven by changes in regulation Opportunity driver Description General environmental regulations, including planning For example, the UK has a statutory producer responsibility regime for packaging. This Potential impact Increased demand for existing products/services Timeframe Direct/Indirect 3 to 6 years Direct Likelihood Unlikely Magnitude of impact Medium Estimated financial implications Management method Cost of management Rexam responds to an increase in demand for cans in line with customer Understanding sales performance The cost of management is minimal Opportunity driver Description places a legal obligation on businesses which make or use packaging (like raw material manufacturers, converters, packer/fillers and sellers) to ensure that a proportion of the packaging they place on the market is recovered and recycled. UK packaging waste recovery and recycling targets for 2013 to 2017 were announced as part of the Budget 2013. The targets apply to businesses under the Producer Responsibility Regulations. They will ensure that the UK continues to meet EU Directive targets Potential impact Timeframe Direct/Indirect Likelihood Magnitude of impact Estimated financial implications requirements Management method Cost of management Opportunity driver Description Potential impact Timeframe Direct/Indirect Likelihood Magnitude of impact Estimated financial implications Management method Cost of management over the next 5 years. The target for aluminium is to gradually increase recycling rate from existing 40% to 55% in 2017. Aluminium recycling rate is already close to 2017 target of 55%.Given the high recycling rate, there are potential opportunity for aluminium packaging to gain more market share of packaging mix. CC6.1b Please describe the inherent opportunities that are driven by changes in physical climate parameters Opportunity driver Description Potential impact Timeframe Direct/ Indirect Likelihood Magnitude of impact Estimated financial implications Management method Cost of management Opportunity driver Change in mean (average) temperature Description Consumption of packaged soft drinks and beer increases in stable good weather, and as a result, our sales of cans too. Potential impact Increased demand for existing products/services Timeframe 3 to 6 years Direct/ Indirect Direct Likelihood More likely than not Magnitude of impact Medium Estimated financial implications Management method Cost of management Extended warm and sunny weather would make our volumes increase as a result of more demand for our packaging. Enabling our plants to increase production during an extended warm and sunny periods. No additional costs because we already have processes in place to help meet increased demand CC6.1c Please describe the inherent opportunities that are driven by changes in other climate-related developments Opportunit y driver Reputation Description Strong focus on sustainability, corporate responsibility and environmental focus allows Rexam to be in a good position as a reputable supplier to our customers/consumer s. Potential impact Increased demand for existing products/service s Timefram e Unknown Direct/ Indirec t Direct Likelihoo d Likely Magnitud e of impact Lowmedium Estimated financial implication s Management method Cost of management Being the sustainable supplier of choice to Rexam customers will positively influence our economic growth. Rexam listens continuously to all its stakeholders to understand their demands and focusing on valuable choices which enable our business to improve efficiencies, reduce carbon emissions and provide the best product. Costs are related to actions taken around: innovation in processes and equipment, communication with stakeholders and ensuring that we have the right tools Opportunit y driver Description Potential impact Timefram e Direct/ Indirec t Likelihoo d Magnitud e of impact Estimated financial implication s Management method Cost of management to measure performance. Changing consumer behaviour Change in consumer trends resulting in an increased demand for environmentally friendly packaging products that Rexam manufactures. Drivers of this can include lifestyle, scrap recycling value, packaging material and its high recyclability abundance of material, safety of the product that it protects and the premium consideration of the metal. Increased demand for existing products/service s 3 to 6 years Direct Likely Medium Being the sustainable supplier of choice to Rexam customers will positively influence our economic growth Through different channels Rexam communicates the can's strong environmental message; for example the company website. The support of different mechanisms/campaign s to ensure the recyclability of the can is well understood, as well as lightweighting and innovation processes. Cost are related to marketing and communication , labour and innovation in processes and manufacturing equipment. CC6.1d Please explain why you do not consider your company to be exposed to inherent opportunities driven by changes in regulation that have the potential to generate a substantive change in your business operations, revenue or expenditure CC6.1e Please explain why you do not consider your company to be exposed to inherent opportunities driven by physical climate parameters that have the potential to generate a substantive change in your business operations, revenue or expenditure CC6.1f Please explain why you do not consider your company to be exposed to inherent opportunities driven by changes in other climate-related developments that have the potential to generate a substantive change in your business operations, revenue or expenditure Further Information Module: GHG Emissions Accounting, Energy and Fuel Use, and Trading Page: CC7. Emissions Methodology CC7.1 Please provide your base year and base year emissions (Scopes 1 and 2) Base year Base year emissions (metric tonnes CO2e) Scope Scope 1 Tue 01 Jan 2013 - Tue 31 Dec 2013 218820 Base year Base year emissions (metric tonnes CO2e) Scope Scope 2 Tue 01 Jan 2013 - Tue 31 Dec 2013 473007 CC7.2 Please give the name of the standard, protocol or methodology you have used to collect activity data and calculate Scope 1 and Scope 2 emissions Please select the published methodologies that you use The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (Revised Edition) CC7.2a If you have selected "Other" in CC7.2 please provide details of the standard, protocol or methodology you have used to collect activity data and calculate Scope 1 and Scope 2 emissions CC7.3 Please give the source for the global warming potentials you have used Gas CO2 Reference IPCC Fourth Assessment Report (AR4 - 100 year) CC7.4 Please give the emissions factors you have applied and their origin; alternatively, please attach an Excel spreadsheet with this data at the bottom of this page Fuel/Material/Energy Emission Factor Electricity 0.32915 Liquefied petroleum gas (LPG) 0.215 Natural gas 0.185 Unit metric tonnes CO2e per MWh metric tonnes CO2e per MWh metric tonnes CO2e per MWh Reference Please check DEFRA emission factors attached below Please check DEFRA emission factors attached below Please check DEFRA emission factors attached below Further Information For question 7.4 we have given the emissions factors average for each energy source, whereas in the attached document there's a emission factor related to each facility. Attachments https://www.cdp.net/sites/2015/68/15768/Climate Change 2015/Shared Documents/Attachments/ClimateChange2015/CC7.EmissionsMethodology/DCFCarbonFactors_16_1_2015_11341.xls Page: CC8. Emissions Data - (1 Jan 2014 - 31 Dec 2014) CC8.1 Please select the boundary you are using for your Scope 1 and 2 greenhouse gas inventory Operational control CC8.2 Please provide your gross global Scope 1 emissions figures in metric tonnes CO2e 215067 CC8.3 Please provide your gross global Scope 2 emissions figures in metric tonnes CO2e 477355 CC8.4 Are there are any sources (e.g. facilities, specific GHGs, activities, geographies, etc.) of Scope 1 and Scope 2 emissions that are within your selected reporting boundary which are not included in your disclosure? Yes CC8.4a Please provide details of the sources of Scope 1 and Scope 2 emissions that are within your selected reporting boundary which are not included in your disclosure Source Relevance of Scope 1 emissions from this source Relevance of Scope 2 emissions excluded from this source Explain why the source is excluded Joint ventures are excluded of the calculation where we do not have operational control Emissions are not evaluated Emissions are not evaluated Our Joint ventures are excluded from our carbon calculations due to difficulty in separating our operations and our partner venture. Sector & head offices are excluded of the calculation Emissions are relevant but not yet calculated Emissions are relevant but not yet calculated Our sector & head offices are located within buildings which don't have separate meter readings therefore calculations and fair share of emissions are difficult to calculate. Minor sources (propane and diesel for our forklift trucks) are excluded of the calculation Emissions are relevant but not yet calculated Emissions are relevant but not yet calculated Rexam does not centrally collect this information and is less than 0.5% of emissions CC8.5 Please estimate the level of uncertainty of the total gross global Scope 1 and 2 emissions figures that you have supplied and specify the sources of uncertainty in your data gathering, handling and calculations Uncertainty range Main sources of uncertainty Please expand on the uncertainty in your data Scope Scope 1 Scope 2 CC8.6 Less than or equal to 2% Less than or equal to 2% No Sources of Uncertainty No Sources of Uncertainty We have our Scope 1 assured by a third party in 2014 and therefore uncertainty has been eliminated due to certification process. We have our Scope 2 assured by a third party in 2014 and therefore uncertainty has been eliminated due to certification process Please indicate the verification/assurance status that applies to your reported Scope 1 emissions Third party verification or assurance complete CC8.6a Please provide further details of the verification/assurance undertaken for your Scope 1 emissions, and attach the relevant statements Type of verification or assurance High assurance Page/section reference Attach the statement https://www.cdp.net/sites/2015/68/15768/Climate Change 2015/Shared Documents/Attachments/CC8.6a/CC ISAE3000 statement - Rexam 2015.pdf all Relevant standard ISAE3000 Proportion of reported Scope 1 emissions verified (%) 100 CC8.6b Please provide further details of the regulatory regime to which you are complying that specifies the use of Continuous Emissions Monitoring Systems (CEMS) Regulation % of emissions covered by the system Compliance period CC8.7 Please indicate the verification/assurance status that applies to your reported Scope 2 emissions Evidence of submission Third party verification or assurance complete CC8.7a Please provide further details of the verification/assurance undertaken for your Scope 2 emissions, and attach the relevant statements Type of verification or assurance High assurance Attach the statement https://www.cdp.net/sites/2015/68/15768/Climate Change 2015/Shared Documents/Attachments/CC8.7a/CC ISAE3000 statement - Rexam 2015.pdf Page/Section reference all Relevant standard ISAE3000 Proportion of reported Scope 2 emissions verified (%) 100 CC8.8 Please identify if any data points have been verified as part of the third party verification work undertaken, other than the verification of emissions figures reported in CC8.6, CC8.7 and CC14.2 Additional data points verified Comment No additional data verified CC8.9 Are carbon dioxide emissions from biologically sequestered carbon relevant to your organization? No CC8.9a Please provide the emissions from biologically sequestered carbon relevant to your organization in metric tonnes CO2 Further Information We will seek assurance of 2013 baseline in 2015 Page: CC9. Scope 1 Emissions Breakdown - (1 Jan 2014 - 31 Dec 2014) CC9.1 Do you have Scope 1 emissions sources in more than one country? Yes CC9.1a Please break down your total gross global Scope 1 emissions by country/region Country/Region Argentina Austria Brazil Chile Czech Republic Scope 1 metric tonnes CO2e 2575 9521 30215 3163 2387 Country/Region Denmark Egypt Finland France Germany India Italy Mexico Russia Spain Sweden Turkey United Kingdom United States of America Ireland Scope 1 metric tonnes CO2e 3513 4255 3255 0 15459 1946 5494 4700 12323 14633 5613 3670 11480 80865 0 CC9.2 Please indicate which other Scope 1 emissions breakdowns you are able to provide (tick all that apply) By business division By facility CC9.2a Please break down your total gross global Scope 1 emissions by business division Business division Beverage Can Europe Beverage Can North America Beverage Can South America Beverage Can Africa, Middle East and Asia Scope 1 emissions (metric tonnes CO2e) 83678 85565 35953 9871 CC9.2b Please break down your total gross global Scope 1 emissions by facility Facility Scope 1 emissions (metric tonnes CO2e) Latitude Wakefield Milton keynes Valdemorillo La Selva Fosie Fredericia Ejpovice Enzesfeld Ludesch Nogara San Martino Gelsenkirschen Berlin Recklinghausen Mantsala Mont Waterford 5904 5576 7465 7167 5613 3513 2387 4538 4983 3876 1618 4389 5642 5429 3255 0 0 Longitude Facility Scope 1 emissions (metric tonnes CO2e) Latitude Argayash Naro Forminsk Vsevolozhsk Mumbai Manisa Cairo Queretaro Birminhgam Bishopville Chatsworth Chicago Fairfield Fremont Kent Longview Olive Branch Phoenix St Paul Valparaiso Whitehouse Winston-Salem Aguas Claras Brasilia Cuiaba Extrema Jacarei Manaus Recife Cans Santa Cruz Pouso Alegre Belem Santiago 2056 7434 2834 1946 3670 4255 4700 13 4668 6210 7839 3850 7472 5285 5035 5523 5600 7443 250 9614 12065 2879 3160 1562 4810 5224 0 4455 3154 3423 1547 3163 Longitude Facility Scope 1 emissions (metric tonnes CO2e) Latitude Buenos Aires 2575 CC9.2c Please break down your total gross global Scope 1 emissions by GHG type GHG type Scope 1 emissions (metric tonnes CO2e) CC9.2d Please break down your total gross global Scope 1 emissions by activity Activity Scope 1 emissions (metric tonnes CO2e) CC9.2e Please break down your total gross global Scope 1 emissions by legal structure Legal structure Scope 1 emissions (metric tonnes CO2e) Longitude Further Information Page: CC10. Scope 2 Emissions Breakdown - (1 Jan 2014 - 31 Dec 2014) CC10.1 Do you have Scope 2 emissions sources in more than one country? Yes CC10.1a Please break down your total gross global Scope 2 emissions and energy consumption by country/region Country/Region Argentina Austria Brazil Chile Czech Republic Denmark Egypt Finland France Germany India Ireland Italy Mexico Scope 2 metric tonnes CO2e 2411 14261 16367 3685 6449 6725 14832 2824 889 40292 10532 5899 10256 15471 Purchased and consumed electricity, heat, steam or cooling (MWh) 13103 66328 240695 20028 10912 21350 32454 14784 14567 84470 12303 13814 25513 34381 Purchased and consumed low carbon electricity, heat, steam or cooling accounted for in CC8.3 (MWh) Country/Region Russia Spain Sweden Turkey United Kingdom United States of America Scope 2 metric tonnes CO2e Purchased and consumed electricity, heat, steam or cooling (MWh) 37232 22370 746 8424 29732 227959 Purchased and consumed low carbon electricity, heat, steam or cooling accounted for in CC8.3 (MWh) 85199 76874 43894 17848 60154 453199 CC10.2 Please indicate which other Scope 2 emissions breakdowns you are able to provide (tick all that apply) By business division By facility CC10.2a Please break down your total gross global Scope 2 emissions by business division Business division Beverage Can Europe Beverage Can North America Beverage Can South America Beverage Can Africa, Middle East and Asia Scope 2 emissions (metric tonnes CO2e) 177674 243430 22463 33788 CC10.2b Please break down your total gross global Scope 2 emissions by facility Facility Wakefield Milton keynes valdemorillo La Selva Fosie Fredericia Ejpovice Enzesfeld Ludesch Nogara San Martino Gelsenkirschen berlin Recklinghausen Mantsala Mont Waterford Argayash Naro Forminsk Vsevolozksk Mumbai Manisa cairo Queretaro Birmingham Bishopville Scope 2 emissions (metric tonnes CO2e) 14858 14874 9103 13267 746 6725 6449 6383 7877 6945 3311 8046 14673 17574 2824 889 5899 5356 22724 9152 10532 8424 14832 15471 8813 15362 Facility Chatsworth Chicago fairfield Fremont Kent Longview Olive branch Phoenix St. Paul Valparaiso Whitehouse Aguas Claras Brasilia Cuiaba Extrema Jacarei Manaus Recife santa Cruz Pouso Alegre Belem santiago Buenos Aires Scope 2 emissions (metric tonnes CO2e) 19339 15288 10860 15674 11556 16366 19329 12092 14287 10490 21387 1324 1316 816 2450 2836 911 2639 1840 1402 834 3685 2411 CC10.2c Please break down your total gross global Scope 2 emissions by activity Activity Scope 2 emissions (metric tonnes CO2e) CC10.2d Please break down your total gross global Scope 2 emissions by legal structure Legal structure Scope 2 emissions (metric tonnes CO2e) Further Information Page: CC11. Energy CC11.1 What percentage of your total operational spend in the reporting year was on energy? More than 5% but less than or equal to 10% CC11.2 Please state how much fuel, electricity, heat, steam, and cooling in MWh your organization has purchased and consumed during the reporting year Energy type Fuel Electricity Heat MWh 1151887 1341870 0 Energy type MWh Steam Cooling 0 0 CC11.3 Please complete the table by breaking down the total "Fuel" figure entered above by fuel type Fuels Liquefied petroleum gas (LPG) Natural gas MWh 14517 1137370 CC11.4 Please provide details of the electricity, heat, steam or cooling amounts that were accounted at a low carbon emission factor in the Scope 2 figure reported in CC8.3 Basis for applying a low carbon emission factor No purchases or generation of low carbon electricity, heat, steam or cooling accounted with a low carbon emissions factor Further Information Page: CC12. Emissions Performance MWh associated with low carbon electricity, heat, steam or cooling 0 Comment CC12.1 How do your gross global emissions (Scope 1 and 2 combined) for the reporting year compare to the previous year? No change CC12.1a Please identify the reasons for any change in your gross global emissions (Scope 1 and 2 combined) and for each of them specify how your emissions compare to the previous year Reason Emissions reduction activities Divestment Acquisitions Mergers Change in output Change in methodology Change in boundary Change in physical operating conditions Unidentified Other Emissions value (percentage) 1.87 Direction of change Decrease Comment Our reported intensity results from both emission reduction activities and running the plants more efficently thanks to higher volume output No change No change No change 1.99 Increase Our production in normalised units grew and this helped the plants to run more efficiently No change No change No change No change No change CC12.2 Please describe your gross global combined Scope 1 and 2 emissions for the reporting year in metric tonnes CO2e per unit currency total revenue Intensity figure 0.0001806 Metric numerator metric tonnes CO2e Metric denominator unit total revenue % change from previous year Direction of change from previous year 2.99 Increase Reason for change Despite our gross carbon emissions grew just a 0.1%, our revenues decreased 3% due to currency fluctuations and lower aluminium. CC12.3 Please describe your gross global combined Scope 1 and 2 emissions for the reporting year in metric tonnes CO2e per full time equivalent (FTE) employee Intensity figure 86.55 Metric numerator metric tonnes CO2e Metric denominator FTE employee % change from previous year 0.1 Direction of change from previous year Increase Reason for change Our FTE didn't change from 2013 to 2014, what did change were our gross total CO2 emissions CC12.4 Please provide an additional intensity (normalized) metric that is appropriate to your business operations Intensity figure Metric numerator Metric denominator % change from previous year Direction of change from previous year Reason for change Intensity figure 9.89 Metric numerator metric tonnes CO2e Metric denominator Other: Standardised/normalised unit of production % change from previous year 1.87 Direction of change from previous year Decrease Reason for change With our business intensity indicator we can see a decrease in our Carbon emissions due to an increase of 2% in normalisation units. We're producing more units of our products whilst reducing our carbon emissions. Further Information In question 12.1a the overall increase we had was a 0.1% of our total carbon emissions. Page: CC13. Emissions Trading CC13.1 Do you participate in any emissions trading schemes? No, and we do not currently anticipate doing so in the next 2 years CC13.1a Please complete the following table for each of the emission trading schemes in which you participate Scheme name CC13.1b Period for which data is supplied Allowances allocated Allowances purchased Verified emissions in metric tonnes CO2e Details of ownership What is your strategy for complying with the schemes in which you participate or anticipate participating? CC13.2 Has your organization originated any project-based carbon credits or purchased any within the reporting period? No CC13.2a Please provide details on the project-based carbon credits originated or purchased by your organization in the reporting period Credit origination or credit purchase Project type Project identification Verified to which standard Number of credits (metric tonnes of CO2e) Number of credits (metric tonnes CO2e): Risk adjusted volume Further Information Page: CC14. Scope 3 Emissions CC14.1 Please account for your organization’s Scope 3 emissions, disclosing and explaining any exclusions Credits cancelled Purpose, e.g. compliance Sources of Scope 3 emissions Evaluation status Purchased goods and services Relevant, not yet calculated Capital goods Not relevant, explanation provided Fuel-and-energyrelated activities (not included in Scope 1 or 2) Upstream transportation and distribution Waste generated metric tonnes CO2e Emissions calculation methodology In 2011 Rexam BCE (Beverage Cans Europe) started to use a system to measure the carbon footprint of its plants. The system is based on PE International’s SoFi software and was established within the guidelines of the Green House Gas (GHG) Protocol. We aim to set up a baseline for our scope 3 and third party verify it by the end of 2015. Percentage of emissions calculated using data obtained from suppliers or value chain partners Explanation The majority of our Scope 3 emissions derive from metal production. During 2012 & 2013, we concluded the pilot project to measure our corporate scope 3 emissions for our Beverage Can Europe sector. This work has helped us develop meaningful internal reporting and carbon reduction plans over time. We are currently assessing this work against the GHG Protocol ‘Technical Guidance for Calculating Scope 3 emissions’, to understand the implications of Scope 3 reporting. Importantly, the project also highlighted boundary/ measurement issues within the Greenhouse Gas Protocol, in particular the end of life ‘credit’ for the post-consumer recycling of cans which could not previously be formally included. Until resolved, we do not plan to submit scope 3 emissions to CDP. As recycling metals saves up to 95% of the energy needed to produce virgin metal, this leads to a very substantial reduction in net scope 3 emissions. The lifespan of our capital equipment is at least 25 years and machinery is regularly refurbished and reused Not evaluated Not evaluated Relevant, In 2011 Rexam BCE (Beverage Cans About 20% of incoming materials are in closed Sources of Scope 3 emissions in operations Evaluation status calculated Business travel Not relevant, calculated Employee commuting Not relevant, calculated Upstream leased assets Not relevant, calculated metric tonnes CO2e Emissions calculation methodology Europe) started to use a system to measure the carbon footprint of the sector (business unit). The system is based on PE international’s SoFi software and was established within the guidelines of the Green House Gas (GHG) Protocol. We aim to set up a baseline for our scope 3 and third party verify it by the end of 2015. In 2011 Rexam BCE (Beverage Cans Europe) started to use a system to measure the carbon footprint of the sector (business unit). The system is based on PE international’s SoFi software and was established within the guidelines of the Green House Gas (GHG) Protocol. We aim to set up a baseline for our scope 3 and third party verify it by the end of 2015. In 2011 Rexam BCE (Beverage Cans Europe) started to use a system to measure the carbon footprint of the sector (business unit). The system is based on PE international’s SoFi software and was established within the guidelines of the Green House Gas (GHG) Protocol. We aim to set up a baseline for our scope 3 and third party verify it by the end of 2015. In 2011 Rexam BCE (Beverage Cans Europe) started to use a system to measure the carbon footprint of the sector (business unit). The system is based on PE Percentage of emissions calculated using data obtained from suppliers or value chain partners Explanation material loop and returned to our supplier for reprocessing. The model identified that our business travel accounts for <0.1% of our overall carbon footprint. We have continued to increase the use of video and web conferencing to reduce travel costs and related GHG emissions. The model identified that employee commuting accounts for <0.1% of our overall carbon footprint Rexam has no upstream leased assets Sources of Scope 3 emissions Evaluation status metric tonnes CO2e Emissions calculation methodology Percentage of emissions calculated using data obtained from suppliers or value chain partners Explanation international’s SoFi software and was established within the guidelines of the Green House Gas (GHG) Protocol. We aim to set up a baseline for our scope 3 and third party verify it by the end of 2015. Downstream transportation and distribution Relevant, calculated Processing of sold products Not relevant, explanation provided Use of sold products Not relevant, explanation provided In 2011 Rexam BCE (Beverage Cans Europe) started to use a system to measure the carbon footprint of the sector (business unit). The system is based on PE international’s SoFi software and was established within the guidelines of the Green House Gas (GHG) Protocol. We aim to set up a baseline for our scope 3 and third party verify it by the end of 2015. Rexam uses only third party carriers to transport our products. These account for approx. 1% of our total carbon emisssions. Distribution is also a substantial cost to our business and minimisation of transport and associated CO2 is fully integrated into our business operating model. Rexam builds plants as close as possible to customer filling locations and we are building our 4th wall-to-wall plant adjacent to one of our customers. This will remove 7.54 tonnes of CO2e of truck journeys. We also continually seek to find better, smarter transport systems. Beverage cans are filled with drinks at customer filling plants. These plants are modern and process at high speeds (approx. 2000cans/minute). According to our largest customer, Coca-Cola, their manufacturing accounts for 8% of the emissions of their drinks. Reducing emissions from manufacturing is a key focus of their activities and Coca-Cola have published a target to halve the carbon emissions involved in making a litre of product between 2007 and 2020. Other customers have similar commitments. Drinks are consumed in the use phase with almost no carbon emissions. Sources of Scope 3 emissions End of life treatment of sold products Downstream leased assets Franchises Investments Other (upstream) Evaluation status Relevant, calculated Relevant, not yet calculated Not relevant, explanation provided Not evaluated Not metric tonnes CO2e Emissions calculation methodology In 2011 Rexam BCE (Beverage Cans Europe) started to use a system to measure the carbon footprint of the sector (business unit). The system is based on PE international’s SoFi software and was established within the guidelines of the Green House Gas (GHG) Protocol. We aim to set up a baseline for our scope 3 and third party verify it by the end of 2015. Percentage of emissions calculated using data obtained from suppliers or value chain partners Explanation Recycling reduces the carbon footprint of beverage cans significantly: every tonne of recycled material offsets the need to use a tonne of virgin raw material and results in an energy saving of up to 95%. As metal is infinitely recyclable with no loss of quality, recycled beverage cans are turned back into sheet for the beverage and food can industries or used in other applications such as transport or construction. Many countries in which we operate have well established recycling infrastructures for beverage cans and achieve recycling rates above 90%. The global average is around 76%, the highest of any beverage packaging material. Those markets with recycling rates below the average require support to establish and enhance collection mechanisms and build a recycling culture with consumers, and Rexam is committed to providing this support together with local policy makers and partners. (To see more about what we do in Rexam to promote recycling rates please go to pages 26&27 in our Annual Report) We do not own franchises Sources of Scope 3 emissions Other (downstream) Evaluation status metric tonnes CO2e Emissions calculation methodology Percentage of emissions calculated using data obtained from suppliers or value chain partners Explanation evaluated Not evaluated CC14.2 Please indicate the verification/assurance status that applies to your reported Scope 3 emissions No third party verification or assurance CC14.2a Please provide further details of the verification/assurance undertaken, and attach the relevant statements Type of verification or assurance CC14.3 Attach the statement Relevant standard Page/Section reference Proportion of Scope 3 emissions verified (%) Are you able to compare your Scope 3 emissions for the reporting year with those for the previous year for any sources? Yes CC14.3a Please identify the reasons for any change in your Scope 3 emissions and for each of them specify how your emissions compare to the previous year Sources of Scope 3 emissions Reason for change Emissions value (percentage) Direction of change Purchased goods & services Change in output 85 Decrease Upstream transportation & distribution Change in output 2 Increase Business travel Unidentified 0.01 No change Unidentified 0.01 No change Change in output 2 Increase Other: Recycling rates 53 Decrease Employee commuting Downstream transportation and distribution End-of-life treatment of sold products Comment Even though we're buying more metal for our production to meet increased demand, we are at the same time using innovation to reduce the weight of our products Thanks to our innovative processes, we are able to make more with less and we are producing many more cans compared with 2012. Our upstream transport and distribution have increased due to the fact that we're buying more metal to produce our cans. making more cans and buying more material Even though we are a global company, advance in communications techonolgy has improved the way we communicate with our sites and offices. We haven't experienced any change within last year. Most of our employees live near to our locations, making their commuting carbon emissions stable. We build our sites close to our customers for efficiency purposes. Despite this we have experienced an increase due the increase in volumes and the need to ship and distribute them. The 53% figure supposes a credit for our carbon emissions, as the increase of Recycling Rates results in a decrease in CO2 emissions. If 5 million tonnes of CO2 are emitted by the input of the material we use, recycling would count towards 1.4 million tonnes of CO2e saved. Recycling rates for used beverage cans (UBC's) are steadily increasing due to industry support, efficient collection of UBC's, consumer behaviour and material possibilities. Rexam has committed to increasing recycling rates as the carbon reductions achieved are significant and they contribute enormously to waste reduction too. CC14.4 Do you engage with any of the elements of your value chain on GHG emissions and climate change strategies? (Tick all that apply) Yes, our suppliers Yes, our customers Yes, other partners in the value chain CC14.4a Please give details of methods of engagement, your strategy for prioritizing engagements and measures of success We engage with our stakeholders through the entire supply chain with activities related to GHG emissions and climate change, below are some examples of what we do: Suppliers: We engage with our suppliers strategically as part of our annual Supplier Excellence programme, where suppliers are awarded on their achievements using KPIs within Cost, Quality, On time Delivery and Sustainability. Special note is also taken or Innovation solutions that deliver against the core set of KPIS. Customers: Engagement with customers involves Rexam support in different activities. For example we are involved in the "cradle to cradle" programme with Carlsberg where the upcycling cooperation is aimed at optimising recycling and reuse, at the same time improving the quality of the material. With Red Bull we are involved in events which involve recycling, such as music festivals. CocaCola enterprises are working with Cranfield University in developing a manual about sustainable manufacturing and Rexam is contributing towards that project. We're also doing working with CCE on aligning our CO2 emission reduction strategy (for them 33% reduction from 2007-2020 and Rexam 33% from 2010-2020). Other partners: Recycling lowers the carbon footprint of beverage cans significantly: every tonne of recycled material offsets the need to use a tonne of virgin raw material and results in an energy saving of up to 95%. As metal is infinitely recyclable with no loss of quality, recycled beverage cans are turned back into sheet for the beverage and food can industries or used in other applications such as transport or construction. Many countries in which we operate have well established recycling infrastructures for beverage cans and achieve recycling rates above 90%. The global average is around 65%, the highest of any beverage packaging material. Those markets with recycling rates below the average require support to establish and enhance collection mechanisms and build a recycling culture with consumers, and Rexam is committed to providing this support together with local policy makers and partners. UK is a typical example of an important market for Rexam with a recycling rate of 60% where Rexam is very engaged. Rexam also engages in GHG reduction activities with different bodies. These include Every Can Counts, where we promote and support recycling through different events (http://www.everycancounts.co.uk/) ; Incpen is a UK based packaging association which promotes packaging usefulness and conscious disposal (http://www.incpen.org/); Metalmatters, which promotes the benefits of recycling in houselholds and the need for behavioural education (http://metalmatters.org.uk/). CC14.4b To give a sense of scale of this engagement, please give the number of suppliers with whom you are engaging and the proportion of your total spend that they represent Number of suppliers 44 % of total spend 70% Comment We engage with all of our suppliers directlty and indirectly. We engage specifically with those suppliers who account for 70% of our spend working in unison to develop the strategic direction of their plans. This includes all our metal suppliers along with key categories represented within Other Direct Materials (ODM's), logistics and capital equipment. CC14.4c If you have data on your suppliers’ GHG emissions and climate change strategies, please explain how you make use of that data How you make use of the data Use in supplier scorecards Identifying GHG sources to prioritize for reduction actions Stimulating innovation of new products Please give details Our supply chain use the CDP submission to set targets for the following year as part of our supplier excellence programme. We also use our Supplier Operational Risk Audit to evaluate the sustainability management and performance of our major suppliers. This feeds into the Supplier scorecard and, depending on the deviation from the target, we will perform physical supplier audits and work with the supplier to close any gap. For key suppliers (particularly metal) we have formal meetings with senior management as part of our supplier relationship engagement programme where cost/energy initiatives are always on the agenda; With the suppliers collaborating with us in the CDP activity, we work closely to determine any problem areas or room for significant improvement in further reducing their GHG emissions, which will allow us to reduce the carbon footprints of our products Sustainable emission reduction is one of the key criteria in our innovation process and in producing innovative products. Our supply chain team collaborates with all our strategic suppliers and works with the Rexam global innovation team to deliver these commitments. This is recognised as part of the Rexam Supplier Excellence programme. CC14.4d Please explain why you do not engage with any elements of your value chain on GHG emissions and climate change strategies, and any plans you have to develop an engagement strategy in the future Further Information Module: Sign Off Page: CC15. Sign Off CC15.1 Please provide the following information for the person that has signed off (approved) your CDP climate change response Name John Revess Job title Group Sustainability Director Further Information CDP 2015 Climate Change 2015 Information Request Corresponding job category Business unit manager