AUSTRALIAN PACKAGING COVENANT ACTION PLAN July 2014 – June 2017

AUSTRALIAN PACKAGING COVENANT – TWE ACTION PLAN F15-F17

Executive Summary I am pleased to present Treasury Wine Estate’s (TWE) updated Australian Packaging Covenant (APC) Action Plan, covering the period of 1 July 2014 to 30 June 2017. This builds on TWE’s inaugural Action Plan (dated 2011 – 2014), which was developed after the Company became a direct signatory to the APC. The actions outlined in this Plan build on and complement TWE’s Corporate Responsibility (CR) program, which reflects our strategic and stakeholder priorities. Our CR program is focused on three key pillars: responsible consumption; a sustainable supply chain; and volunteering & community engagement. The APC goals are particularly closely aligned with the sustainable supply chain pillar of our CR program. This document, which extends our inaugural packaging covenant until 30 June 2017, addresses the supply chain and internal elements of the APC that are under the control of our Australian operations as a “brand owner”. It also describes the mechanisms used by the Company for meeting the goals and objectives outlined in the APC. As TWE is a global business, many of the initiatives detailed here extend to our global operations to ensure we have a streamlined, consistent and comprehensive approach. TWE has continued to drive the positive transformation of our business, and we will continue to do so as we strive to fulfil our ambition to be the world’s most celebrated wine company. I look forward to updating stakeholders on our progress against this plan annually.

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Michael Clarke Chief Executive Officer Treasury Wine Estates

Treasury Wine Estates

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AUSTRALIAN PACKAGING COVENANT – TWE ACTION PLAN F15-F17

About Treasury Wine Estates Treasury Wine Estates (TWE) is one of the world’s largest wine companies, listed on the Australian Securities Exchange (ASX). The Company has a rich heritage and a portfolio of some of the most recognised and awarded wine brands in the world, including: Penfolds, Wolf Blass, Lindeman’s, Pepperjack, Rawson’s Retreat, 19 Crimes and Wynns Coonawarra Estate. TWE is focused on portfolio premiumisation and brand-led marketing, with world-class production facilities in internationally recognised wine regions. The Company sources grapes from a mix of owned, leased and third-party vineyards. Employing approximately 3,500 winemakers, viticulturalists, sales, marketing, distribution and support staff across the globe, TWE’s wine is sold in more than 70 countries around the world. Our consumer packaging formats consist largely of glass bottles, metal closures, corks, paper labels and corrugated carton board. We distribute finished product through our global network, as well as providing wine in bulk supply for in-market bottling in some markets. For further information on TWE’s operations, please go to our website: tweglobal.com.

Treasury Wine Estates

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AUSTRALIAN PACKAGING COVENANT – TWE ACTION PLAN F15-F17

Corporate Responsibility

TWE's Corporate Responsibility agenda is driven by the Company’s Global Corporate Responsibility Council, chaired by the CEO, with representatives from the executive leadership team and key functions and regions. Annual updates on TWE’s Corporate Responsibility program are available on tweglobal.com/responsibility. Treasury Wine Estates

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AUSTRALIAN PACKAGING COVENANT – TWE ACTION PLAN F15-F17

Action Plan Commitments These Actions build on those undertaken in TWE’s F11-F14 APC Action Plan, as detailed in previous APC annual reports. Progress against these actions will be reviewed and reported annually. Action Ref #

Action

Measure / Target

Baseline data

Responsibility

Timeline

None

Marketing and Procurement teams

F17

Tool in place and operational

Marketing team

F17

Goal 1: Design – optimise packaging to achieve resource efficiency and reduce environmental impact KPI 1 - Implementation of the SPG for design & procurement of packaging

1.1

Implement SPG assessments through business processes.

SPG assessment components implemented throughout business Tool in place and operational

1.2

Continue packaging review processes established within ANZ NPD process.

1.3

Review star rating system and embed any changes in new NPD gate process.

Review undertaken

Star rating system currently embedded

Marketing team

F16

1.4

Globally roll out star rating system in the NPD kiosk.

Star rating tool embedded into NPD processes globally

No star rating system applied globally

Marketing team

F17

1.5

Review and assess renovations affecting glass and packaging biannually with a view to reduce environmental impact through glass light-weighting where possible.

Biannual reviews of packaging renovations undertake

Ad hoc discussions

Marketing and Sales teams

F17

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% reviews of NPDs outside of standard packaging configurations

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AUSTRALIAN PACKAGING COVENANT – TWE ACTION PLAN F15-F17

Action Ref #

Action

Measure / Target

Baseline data

Responsibility

Timeline

1.6

Embed process for Marketing Leadership Team review and approval of packaging proposals outside of standard packaging configurations.

Reviews undertaken and approval documented

Ad hoc discussions

Marketing and Sales team

F17

1.7

Continue to identify innovative packaging with reduced environmental impacts.

Two NPD initiatives with packaging reductions identified (light-weight or material reduction)

Ad hoc initiatives identified and executed

Procurement, Sales, Marketing and CR teams

Ongoing

1.8

APC committee formed to review APC progress biannually, reporting on progress to the CR Council.

Biannual meetings to review progress against Action Plan

No committee in place

CR team

F17

Goal 2: Recycling – the efficient collection and recycling of packaging KPI 3 – On-site recovery systems for recycling used packaging 3.1

Undertake waste assessment at two major office sites.

Assessments completed

No baseline data

Property team

F17

3.2

Annually review waste to landfill and waste to recycling of production sites.

Annual review undertaken

Ad hoc reviews by site teams

Supply team

F17

3.3

Undertake “waste-walks” at a major Australian production sites to identify opportunities to further reduce waste.

Waste-walks and follow up actions recorded

Ad hoc considerations of waste by site

Supply team

F17

3.4

Annually report publically on solid waste generated and waste to recycling rates.

TWE Annual Report

In TWE Annual Reports since 2011

CR and Supply teams

Ongoing

No formal regular review

Procurement team

Ongoing

KPI 4 – Implementation of buy-recycled policies 4.1

Continue periodic tracking of recycled content of glass and carton board packaging.

Treasury Wine Estates

Annually review recycled content of glass and carton board

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AUSTRALIAN PACKAGING COVENANT – TWE ACTION PLAN F15-F17

Action Ref #

4.2

4.3

Action

Measure / Target

Include a preference for buying recycled products in the F17 review of the Environment Policy.

Identify opportunities to increase recycled content of major dry goods supplies with suppliers.

Baseline data

Responsibility

Timeline

Environment Policy reviewed, and ‘buy recycled’ preference included

Environment Policy with no preference stated

CR, Supply and Procurement teams

F17

Discussions with major ANZ suppliers of card and glass regarding commitments to increase recycled content

Ad hoc discussions

Procurement team

Ongoing

Ad hoc discussions

Procurement team

Ongoing

Recently on-boarded suppliers already committed to the Code

Procurement team

F17

Goal 3: Product Stewardship – demonstrated commitment to product stewardship KPI 6 – Collaboration across supply chain to improve design & recycling of packaging

6.1

6.2

Include sustainability and packaging reduction opportunities in Supplier Review Meetings (where applicable), with a view to assessing any new opportunities to increase recycled materials in packaging.

Agenda item for quarterly business reviews # of reduction opportunities identified & executed

Roll out Responsible Procurement Code (RPC), including commitment to manage and reduce environmental impacts, to Australian non-grape suppliers and audit suppliers for compliance.

All ANZ non-grape suppliers committed to the RPC, or committed to action in order to fulfil the RPC requirements

6.3

Investigate options to improve (off colour) glass usage for bottles with major supplier.

Alternate options formally explored with supplier

Ad hoc discussions

Procurement team

F17

6.4

Investigate and execute opportunities to reduce distribution impacts and optimise the supply chain.

Environmental efficiency data reductions over time as supply chain is optimised

See TWE Annual Reports from 2011

Supply

Ongoing

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AUSTRALIAN PACKAGING COVENANT – TWE ACTION PLAN F15-F17

Action Ref #

Action

Measure / Target

Baseline data

Responsibility

Timeline

KPI 7 – Other Product Stewardship Outcomes 7.1

Undertake a review of current TWE events guidelines with respect to waste management, recycling and litter prevention.

Current practices reviewed

None

CR team

F17

7.2

Contribute to industry sustainability and product stewardship.

Participate in industry packaging and environment committees and encourage sustainability improvements through industry associations

Membership of various environment and packaging committees, and regular speaker on sustainability in the industry

Supply and CR teams

Ongoing

7.3

Continue financial contributions to the Packaging Covenant Fund.

Contributions provided

Contributions made since 2011

CR team

Ongoing

7.4

Re-commit to the Courtauld Commitment 2025.

Public commitment to Courtauld Commitment 2025 made

Public commitment to Courtauld Commitment 2015 made

Supply team

F16

7.5

Maintain 3rd party certification for ANZ vineyards and winery and packaging centres.

3rd party certification of owned and controlled facilities received

3rd party certification of owned and controlled facilities in ANZ

Supply team

Ongoing

7.6

Report publically on key environmental metrics annually, including solid waste generated and solid waste to recycling.

TWE Annual Report

In TWE Annual Reports since 2011

CR and Supply teams

Ongoing

7.7

Annual review of Environment Policy, with Board approval.

Annual review undertaken, and Board approval received

Environment Policy

CR and Supply teams

Ongoing

7.8

Engage in collaborative environmental stewardship programs.

Participate in a minimum of two collaborative environmental stewardship programs annually

Ad hoc reporting on environmental stewardship programs

Supply team

Ongoing

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AUSTRALIAN PACKAGING COVENANT – TWE ACTION PLAN F15-F17

Action Ref #

Action

Measure / Target

Baseline data

Responsibility

Timeline

7.9

Maintain a Global CR Council.

Global CR Council to meet a minimum of 3 times per year

Global CR Council meeting 3 times per year

CR team

Ongoing

7.10

Annually review site Environment Management Plans.

Annual reviews undertaken, and new Environment Management Plans kept on site

Site Environment Management Plans

Supply team with site managers

F17

7.11

Include in TWE corporate volunteering opportunities to engage in stewardship initiatives.

Environmental stewardship charities included in Global Volunteering Week

Environmental stewardship charities included in suggested volunteering options since 2012

CR team

Ongoing

KPI 8 – Reductions in packaging items in the litter stream 8.1

Maintain Mobius loop on all products.

All ANZ products include Mobius loop

All ANZ products include Mobius loop

Supply and Sales teams

Ongoing

8.2

Include in TWE corporate volunteering opportunities litter reduction charities and clean ups.

Litter reduction charities included in Global Volunteering Week

Litter reduction charities included in suggested volunteering options since 2012

CR team

Ongoing

8.3

Engage with governments and other industry participants on environmental improvements, including on CDS proposals and effective targeting of the litter stream.

Submissions and meetings with government officials on environmental stewardship

None

Corporate Affairs team

Ongoing

8.4

Maintain litter patrol as part of housekeeping procedures at major office locations in Australia.

Litter patrol maintained

None, regular review of property services performance

Property team

Ongoing

For all enquiries regarding our Action Plan, please contact: Treasury Wine Estates

Name:

Cecelia Burgman Page 10

AUSTRALIAN PACKAGING COVENANT – TWE ACTION PLAN F15-F17

Title:

Global Corporate Responsibility Manager

Contact Details:

(03) 8533 3020 [email protected]

Treasury Wine Estates

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