Customer communications example presented by Avery Dennison

1. MORE INNOVATIVE |
MORE SUSTAINABLE
CONSCIOUS BRANDING
Thomas Aagaard
Helen Sahi
Garry Parkes
11th December 2014 | H&M | HQ

2. + +
Intelligent Creative Sustainable
Innovative technology, products,
processes and systems that
accelerate performance intelligently
throughout global supply chain
Unique and differentiated ideas,
products and thinking that
elevate brands’ consumer appeal
and value
Responsible and ingenious
solutions that deliver sustainable
positive economic, social and
environmental impact
Avery Dennison RBIS – Who we are …

4. Sustainable Branding
H&M The Completely Conscious Brand
Jacron
FSC certified
Jacron
MIGRATION
100% Recycled
Polyester
100% Virgin
Polyester
MIGRATION
FSC Uncoated
100% PCW and
FSC Uncoated
MIGRATION
100% Virgin
Polyester
100%
Recycled
Polyester
MIGRATION
100% Virgin and
Non FSC C1S
30% PCW and
FSC C1S
MIGRATION
Cost Effective Sustainable Branding

5. Sustainable Branding | Avery Dennison Greenprint™
H&M The Completely Conscious Brand
Eliminate the
use of 9
barrels of oil9
*Based on 1.000.000 pcs
483 Save 483 trees
every year
Reduce your
CO2 emissions
by
Reduce landfill
solid waste
by
Less energy used
in production
Less water
used in
production
45%
19%
5
tonnes
1
tonne

6. How ?How ?

7. Trend and Material Insights
Global Trend Insights
Material Direction
Design Innovation
Collaborations

8. We partner with industry thought leaders, Sustainability pioneers, and those at the
forefront of technological advancement
Our global partnerships

9. Responsibly sourced materials
VIRGIN MATERIAL
Migration from Virgin Materials
FSC / Logo
RECYCLED /
PCW
RECYCLED /
PCW
Wood Free |
Reprocessed Cotton Fibres
FSC |
Managed Forestry
PCW |
Post Consumer Waste
Migration from Non-Renewable Resources
VIRGIN
MATERIAL
RECYCLED /
PCW
RECYCLED /
PCW
Recycled Plastics
to Fabric Labels
Recycled Plastics
to Yarns
RECYCLED /
PCW
Renewable Content |
Plant Derived Plastics
| Material SelectionRE-THINK

10. 0.5%
WasteVS.
Per sheet56 Per sheet70
13%
Waste
3.5%
WasteVS.
Per sheet36 Per sheet40
10%
Waste
Small original Small revised
35 x 76 mm 33 x 73 mm
Large original Large revised
45 x 100 mm 43 x 100 mm
| Design OptimisationRE-THINK

11. | Design Optimisation | Savings
Design Optimisation looks at the maximum
printable area of the sheet
Calculates the number on the sheet and
waste percentage - and allows us to
recalculate the optimal shape / size to
increase the yield on the sheet and
minimise the waste
Combining the redesigned
Conscious Graphic Tags (based
on 1,000,000 units) saves the
equivalent of 30% of a soccer
fields worth of trees
Imagine the total reduced
environmental impact we could
generate through appropriate material
choice and re-engineering throughout
your entire labels, trims and packaging
program
RE-THINK

12. Avery Dennison Greenprint™
Instead of listing out the amount of calories and vitamins, Greenprint illustrates the amount of
natural resources used to make the product, and the volume of GHG and waste generated from
the process of making those materials.
Greenprint covers a diversity of materials within our portfolio
Materials: 100% Virgin Coated paper, double-sided (C2S),
100% Virgin Polypropylene (PP) - Hook
Materials: Coated paper, one sided (C1S),
recycled content 30%,
Summary Chart
Difference
Impact
(3) (59) (177,541) (82,439 (7) (2.23)
Eliminated 62% Less 54% Less 53% Less %4% Less 51% Less
Summary
Based on 1,000,000 Units

13. Greenprint™ | Like for Like (Shape / Dimensions)
with Alternative Material Selection
Difference
Impact
(0) (42) (77,326) (21,328) (1) (0)
- eliminated 51% Less 35% Less 25% Less -
Difference
Impact
(0) (7) (8,192) (2,194) (0) (0)
- 50% Less 14% Less 9% Less - -
Difference
Impact
(3) (0) (4,680) (7,613) (1) (0)
eliminated - 71% Less 13% Less 20% Less -
(Based on 1.000.000 pcs)
Uncoated FSC - 100% PCW Uncoated FSC
100% Virgin Polyester - 100% Recycled Polyester
100% Virgin Polyester - 100% Recycled Polyester

14. Greenprint™ | Alternative Material Selection
+ Reengineering
Difference
Impact
(0) (42) (77,326) (21,328) (1) (0)
- eliminated 51% Less 35% Less 25% Less -
(Based on 1.000.000 pcs)
Uncoated FSC - 100% PCW Uncoated FSC
Difference
Impact
(0) (42) (82,181) (23,860) (1) (0)
- eliminated 54% Less 39% Less 25% Less -
Uncoated FSC - 100% PCW Uncoated FSC
45 x 100 mm 43 x 100 mm

15. Greenprint –
Based on 1.8 Billion pieces per annum
Eliminate the
use of 5,026
barrels of oil
5,026
7,655
Save 7655
trees every
year
Reduce your
CO2 emissions
by
Landfill solid
waste is
effected by
Less energy used
in production
22%
1,555
tonnes
+1.8
tonnes
Less water
used in
production
34%
+

16. Greenprint –
Based on 1.8 Billion pieces per annum
Eliminating this
many Barrels of
oil
The typical
amount of Trees
to cover this
many football
pitches +
20
5,026
The typical
Annual amount
of drinking water
of this many
people
24,781
Enough to
power this many
houses per year
Enough to take
this many cars
off the road a
year
407
182
Enough waste
of
this many
households
+9

18. Why ?

19. Insights
Consumer / Market Insights
Material Insights
Trend Insights
Technology Insights

20. The Power of Labelling | Consumer Insights
What did we want to know …

21. Summary of key findings!
Consumers are
more likely to purchase
Consumers will
Pay more
APPAREL BRANDING
is created equal
NOT ALL
MATTERS
Sustainability
+3%
+1 %
7

22. It’s not just the material, it’s the way it’s made that is important
Sustainability Matters
And attitudes are shifting …
Consumers care about products that improve the well-being of
people’s lives
Consumers across
the globe are most
interested in buying
garments made in a
socially responsible
way
87%
OF CHINESE
CONSUMERS
72%
OF EUROPEAN
CONSUMERS
50%
OF AMERICAN
CONSUMERS

23. Sustainability Matters
A new consumer is emerging …
AVERAGE AGE OF ASPIRATIONALSYEARS OLD
39
ASPIRATIONALS
• Aspirationals consume and sustain
• 2 Billion consumers (36% globally) are looking for
brands to provide solutions that both improve their
lives and serve the larger society
• 73% seek style and status
• 88% positively influence responsible
purchases by others
• 78% believe they can change company
behavior with purchasing power
• 91% are willing to pay more for products produced in
a socially and environmentally responsible way
• Globally diverse
China (46%), India (42%), USA (36%), UK (34%) MILLENNIALS GENERATION X BABY BOOMERS SENIORS
40% 37% 29%34%
*2013 Aspirational Consumer Index, BBMG / SustainAbility / Globescan
GENERATIONS OF ASPIRATIONALS

24. Sustainability Matters
The importance of the shift …
IT’S PROFITABLE
• Brands that are meaningful outperform the stock
market by 120% (Meaningful Brands Index)
• 83% are more likely to buy products from brands that
‘go green’ (Curve Report 2013)
CONSUMERS EXPECT IT
• 88% of consumers expect brands to take measures
to be environmentally friendly (Curve Report 2013)
• Believe they ‘can change how a company behaves based
on my purchase decisions* (78%), compared with 66% of
all consumers (2013 Aspirational Consumer Index

25. Supply chain …

26. Supply Chain Leadership
Global Supply Chain Lean Manufacturing
Chemical Compliance Sustainable Communities

27. Total Transparency
Opening the doors …

28. SAC SCORE
How we fair …
China
Nansha
Overall
SITE Score
EMS
ENERGY &
GHG
WATER USE
WASTE
WATER
EFFLUENT
AIR
EMISSIONS
WASTE
MANAGEMENT
CHEMICAL
China
Panyu
China
Suzhou
Vietnam
Indonesia
Banglades
h
India
Bangalore
Sri Lanka
Italy
Turkey
85 90
78
81
75
69
70
73
72
86
77
80
90
90
100
80
90
90
90
90
85
75
90
75
75
75
90
75
85
90
80
80
70
80
30
80
80
40
100
70
100
70
60
70
70
25
100
100
50
30
70
70
100
30
70
100
30
70
60
60
100
100
100
100
70
100
60
100
100
100
65
65
65
65
65
40
45
40
95
95
GREAT GOOD MARGINAL CRITICAL

29. Collaborative Sustainability

30. Forging a path forward
Sustainable development means designing our products, processes and services with environmental and
societal concerns in mind
“Smart companies now treat sustainability as innovation’s new frontier”
Source: “Why Sustainability Is Now the Key Driver
of Innovation” Harvard Business Review
PLANET
PROFITPEOPLE
SUSTAINABILITY
Social
Performance
Economic
Performance
Environmental
Performance

31. Sustainable
Products
Sustainable
Processes
Sustainable
Purpose
Products are
manufactured in carbon
neutral facilities.
Zero waste to landfill.
Sustainable and
responsible supply
chain.
An Employer of Choice
Materials and energy
are responsibly
sourced.
Market leadership in
sustainable solutions.
Our path forward
Alignment with H&M
1. Provide fashion for conscious customers
2. Choose and reward responsible partners
3. Be ethical
4. Be climate smart
5. Reduce, reuse, recycle
6. Use natural resources responsibly
7. Strengthen communities
Conscious Commitments

32. Today | Tomorrow | The Future

33. RECYCLED / PCW
Next steps | Roadmap with H&M
Migration to Recycled Polyester | Woven Labels
RECYCLED /
PCW
100% Virgin Polyester
100% Recycled Polyester
MIGRATION
Program to be started in Bangladesh
and then be globalised
RECYCLED / PCW
Global Recycled Yarn Guide
Diverse portfolio
Also the possibility to reduce material
consumption and weight through
reengineering
RE-THINK

34. SMALLER
DESIGNS
REDUCED
CONSTRUCTION
MATERIALS
EFFICIENT
MANUFACTURE
• Less Aluminum & Material
• Maintains high RF performance
• Lower SKU Complexity
• Global Inlay
SmartFace®
Technology
• Reduction of PET material
• Thinner RFID-enabled Media
• Lower Environmental Impact
• FSC Certified Paper
• Lower SKU Complexity
• Vertical Production for LCA Impact
• Multiple Trim Options = Lower NCG
• Responsibly Sourced Paper/Media
RFID | Inlay and Media
Sustainability Enhancements

35. Next steps | Roadmap with H&M
2015 | Q1 2015 | Q2 2015 | Q3 2015 | Q4 2016
Blue Sign
Organic Cotton
Alternative
Manufacturing
Plant Derived
Logistics Packaging
Sustainable Patches
Recycled Polyester
Yarns
Responsibly
Sourced Materials
Sustainable RFID
Technology
APEO Free PSM /
ZDHC
Alternative
Manufacturing
Alternative
Manufacturing
Blue Sign
GPG v3
70% RSM Papers
IPPS
GPG v3
70% RSM Papers
Sustainable RFID
Technology
READY TO MARKET
RESEARCH AND DEVELOPMENT
Lightweight PSM
IPPS
3D / Additive
Printing
100% Recyclable
PSM
Sustainable Patches
3D / Additive
Printing

36. 2014-16 2017-20 2021-25
BIOBASED POLYMERS
GREEN PE
FOOD AND AGRI WASTE
3D PRINT -
BIO AND RECYCLED
HACKING PAPER
RECLAIMED WASTE
RECYCLED YARNS
ADVANCED
MANUFACTURING
GREENHOUSE GAS TO
PLASTIC
TECH INNOVATION
NOVEL BIO
INKS, DYES, PIGMENTS
INKS, DYES, PIGMENTS
REDUCED IMPACT ON
THE ENVIRONMENT
POWERING WITH
NATURE
4D PRINTING
TRANSFORMING AND
ADAPTIVE SHAPE
FOOD AND AGRI WASTE
A Roadmap for the future
NOVEL BIO
INKS, DYES, PIGMENTS

37. THANK YOU