Amcor(AMCR)2024-08-16 10:40Financial Performance - In fiscal year 2024, the Flexibles Segment accounted for approximately 76% of consolidated net sales, while the Rigid Packaging Segment accounted for approximately 24%[24][25]. - Amcor's goodwill and other intangible assets amounted to 100 million annually on research and development (R&D) to drive innovation in packaging solutions[33]. - The company aims to use 30% recycled materials in its products by 2030, having increased its target from previous commitments[16]. - Amcor's sustainability strategy includes a commitment to achieve net zero emissions by 2050, with near-term science-based targets validated in fiscal year 2024[36]. - The company has identified three key elements of responsible packaging: product innovation, consumer participation, and waste management infrastructure[32]. - The company is committed to achieving net zero greenhouse gas emissions by 2050, with interim emissions targets approved by the Science Based Targets initiative[125]. Workforce and Diversity - Amcor employs around 35,000 employees in the Flexibles Segment across 160 manufacturing and support facilities in 36 countries[24]. - As of June 30, 2024, Amcor had approximately 41,000 employees globally, with 31% in North America, 29% in Europe, 21% in Latin America, and 19% in the Asia Pacific region[42]. - Approximately 43% of Amcor's workforce is covered by collective bargaining agreements, with 20% of those agreements set to expire within one year as of June 30, 2024[42]. - As of June 30, 2024, 44% of Amcor's Board and 27% of its Global Management Team are composed of women, reflecting the company's commitment to diversity, equity, and inclusion[52]. - Amcor's fiscal years 2023-2027 Human Capital Strategy focuses on ensuring the right people are in the right jobs to drive growth, emphasizing talent development and succession planning[45]. Health and Safety - During fiscal year 2024, Amcor reduced the number of injuries by 12%, with 73% of its sites being injury-free, and a Total Recordable Incident Rate (TRIR) of 0.27, which is an improvement over fiscal year 2023[44]. - The company’s commitment to health and safety is reflected in its global Environment, Health, and Safety standards, aiming for a culture of care and an injury-free workplace[43]. Regulatory and Legal Compliance - Amcor's operations are subject to various governmental laws and regulations, and the company believes it is in substantial compliance with applicable health and safety and environmental laws[38]. - The company has been subject to Section 404 of the Sarbanes-Oxley Act since fiscal year 2020, which requires maintaining adequate internal controls over financial reporting[115]. - The company is subject to environmental, health, and safety laws, which may result in increased operational costs and liabilities[132]. - The company faces potential increased costs due to evolving ESG regulations, including compliance with climate-related rules and extended producer responsibility[126]. - The company operates under Jersey law, which may not provide the same level of legal certainty as U.S. jurisdictions, potentially affecting investor rights[138]. Risk Management - The company has implemented a hedging policy to manage foreign exchange fluctuations, although ineffective hedges could adversely impact financial results[111]. - The company utilizes a captive insurance company, Amcor Insurances Pte. Ltd., to retain a portion of its insurable risk, which may lead to significant financial implications if claims exceed reserves[117]. - A significant portion of the company's assets is located outside the U.S., complicating the enforcement of civil liabilities against its directors and officers[139]. - U.S. court judgments may face enforcement limitations outside the U.S., including in Australia and Jersey[140]. - The Royal Court of Jersey has non-exclusive jurisdiction for actions against the company, but is the sole forum for derivative shareholder actions[140]. - There is uncertainty regarding the enforcement of exclusive forum provisions for fiduciary duty breach claims in U.S. or Jersey courts[140].