89 SUSTAINABILITY PACKAGING Our Sustainable Packaging Guidelines contain an overview of our approach, definitions, material selection guides, and FAQs. They outline our priorities, which include: • Reducing and removing packaging where possible • Designing for reuse and refillability • Building designed-in recyclability • Increasing amounts of PCR material in packaging • Replacing petroleum-based plastics with bioplastics (if the bioplastic can be recycled and does not contaminate traditional recycling streams). In fiscal 2021, we continued to upskill and educate employees and provided training on the Guidelines for our package developers, marketers, and procurement teams. Along with the Guidelines, we use additional tools to develop more responsible packaging. These include custom-developed methodologies to calculate the sustainability profile of various product-packaging formats and estimated associated GHG emissions, as well as third-party reviewed life-cycle assessments, as needed, to provide a holistic view of a package’s impacts. SUSTAINABILITY IN NEW PRODUCT LAUNCH The early development and design phase of a product and package is a critical time for integrating consideration of potential environmental impacts. In fiscal 2021, we redesigned our new product launch process to create more consistency and continuity, with sustainability principles woven in throughout. Brands are now asked to address how they will incorporate one of the 5Rs into new product packaging at the beginning of the design phase, allowing progress to be tracked from the onset. SECONDARY AND TERTIARY PACKAGING The intent of secondary and tertiary packaging is to protect the integrity of our products while also providing a High-Touch experience. We are working to reduce the environmental impacts of shipping and its associated packaging, including by selecting more sustainable materials and eliminating excess material and volume. For example, many brands now use dissolvable packaging peanuts in their shipping boxes and have reduced the amount of paper used in mailers. In our Europe, Middle East, and Africa (EMEA) region, new shipping boxes are free of plastic, tape, and unnecessary paper, and branded inner boxes have been replaced with plain carton packaging that is FSC certified. We are also teaching suppliers about our efforts to create more responsible secondary and tertiary packaging and look forward to continued collaboration.