Our Path Forward

As we look at the challenges facing our businesses today and in the future, we believe that our long-term success will depend on our ability to meet customers' needs in more sustainable ways. More than enabling ourselves and our customers to comply with evolving regulations, the lens of sustainability thinking reveals a multitude of opportunities for us to apply our core strengths in materials science and specialized technology to help customers address pressing issues in existing and new markets. Sustainability is present in our business strategies, and we have accelerated our focus on specific areas to make our products and processes more sustainable and our culture more engrained with purpose:

More sustainable products: provide innovative products, materials and technologies that improve the sustainability profile of our customers and the markets we serve.

More sustainable processes: improve the environmental profile of our operations by optimizing the use of raw materials and other natural resources and minimizing our emissions and wastes.

More sustainable purpose: continue efforts to be a responsible corporate citizen by engaging our employees to build sustainable practices into their everyday work, increasing our social compliance and investing in our communities.

Key Priorities

• Innovate sustainable and responsible materials

• Incorporate Life Cycle Assessment (LCA) into product development

• Develop solutions that reduce end user impacts in the value chain

• Ensure product compliance and integrity

• Drive operational improvements that reduce our environmental footprint

• Target a long-term goal of "zero manufacturing waste to landfill from our facilities"

• Engage in responsible sourcing practices

• Make social responsibility a fundamental part of the way we do business

• Drive social compliance deeper into the supply chain

• Target having a world-class safety rate in our facilities

• Increase employee engagement and volunteerism through company-sponsored programs

• Advance sustainability through our philanthropic investments in education and community-based projects

Achievements

• Built LCA capability into the R&D group and conducted LCAs on key products from each business unit

• Integrated sustainability into our product development process

• Launched Avery Dennison™ Greenprint, a life cycle-based tool used to help customers assess the environmental impact of their packaging and product choices

• Invested in R&D for bio-based adhesives, thinner and lighter materials, PVC-free materials and linerless technologies

• Attained Forest Stewardship Council®(FSC) chain-of-custody certification for 49 operating plants worldwide

• Reduced GHG emissions (indexed to net sales) by 2% in 2010, compared to the 2005 baseline levels

• Reduced energy use (indexed to net sales) by 6% in 2010 from 2009 levels

• Reported on our GHG emissions to the Carbon Disclosure Project for a fourth year

• Implemented a web-based metrics system to manage environmental data (water, waste, air emissions) from our global operations

• Implemented employment standards for responsible manufacturing

• Established an internal auditing program to ensure social compliance at our facilities

• Continued to partner with the ILO's Better Work Vietnam and BSR's Mills and Sundries Working Group on fair labor practices

• Achieved an all-time best global recordable incident rate of 0.62, and 84% of our facilities achieved a zero-injury rate status in 2010

• Developed global criteria and guidelines for our philanthropic investments in education and environmental sustainability

• Helped to rebuild a primary school in China with Project Hope

• Funded scholarships to students in China and a faculty chair in India

• Donated $7.2 million dollars worth of school supplies to U.S. public schools through Back to School events

FSC is a registered trademark of the Forest Stewardship Council. FSC-C007276