BRINKS Sustainability Update
SUSTAINABILITY UPDATE JULY 2022
TABLE OF CONTENTS A MESSAGE FROM OUR CEO 3 A MESSAGE FROM OUR CFO 4 ABOUT BRINK’S 5 ENVIRONMENT 6 SOCIAL 7 GOVERNANCE 8 OUR PROGRESS TOWARD UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS 9 GREENHOUSE GAS EMISSIONS DISCLOSURES 11
A MESSAGE FROM OUR CEO This is an important time in the history of Brink’s. Thanks to our nearly 75,000 employees, our loyal customers and our disciplined strategy, we’ve overcome many challenges and delivered outstanding financial results over the last several years. Now we have a new challenge. We must continue to drive revenue and profit growth for our shareholders as we work to understand how we can better address our impact on the world and the growing expectations of our stakeholders. While we only recently formalized our Sustainability Program, we have many ongoing strategic initiatives that support our sustainability priorities. For the last few years, we’ve been focused on improving the way we run our business by expanding efficiency initiatives, creating a more diverse and inclusive workplace and launching new products to reduce the time our trucks spend on the roads while improving customer service and financial results. With this inaugural Sustainability Update, we are sharing the priorities that guide our work as well as our focus on five United Nations Sustainable Development Goals (UN SDGs). OUR PATH FORWARD As the new CEO, my role is to build on the valuable work that our leadership team has started, and I intend to make sustainability a top priority. As I learn more about our people, our operations, our customers and our communities around the world, my optimism about our future and the role of sustainability in our success continues to grow. I recognize that sustainability starts with listening, and that means constant learning so that we’re better equipped to execute actionable plans and initiatives that increase our positive impact. It also means we must develop the right metrics and infrastructure so we can consistently measure and report our progress. It is a great privilege—and very humbling—to lead Brink’s as we work to expand and strengthen our Sustainability Program. My background in highly regulated manufacturing industries has enabled me to recognize what a strong commitment to sustainability looks like—and the positive effect it can have on our industry, our people and our planet. We welcome your feedback, insights and ideas as we build a more sustainable Brink’s. Mark Eubanks President and Chief Executive Officer The Brink’s Company SUSTAINABILITY UPDATE | 3
A MESSAGE FROM OUR CFO As our Chief Financial Officer, I consider the leadership of our recently formalized Sustainability Program, overseen by our Board of Directors, to be as important as my other fiduciary responsibilities. The stewardship of environmental, social and governance principles is essential to value creation for all of our stakeholders, and we are working to improve the effectiveness and disclosure of our progress. We are sharply focused on transforming Brink’s—and as we do, we are continuously improving our operations and building a culture that aligns with our values. This includes integrating responsible practices across our operations to increase our efficiency and reduce waste. It also includes continuing to facilitate economic inclusion by helping to ensure the availability of cash for all, including vulnerable populations who lack banking services. Brink’s doesn’t see sustainability as a cost, but as an investment and part of who we are—stewards of the valuables that our customers entrust to our care. We’re also stewards of our communities and of our planet. This year we are reporting our greenhouse gas emissions data based on 10 markets— representing 72% of our 2021 revenue—and are working to include additional metrics in the future. We’re excited about our Sustainability Program, its potential and how vital it is to our growth strategy, our culture and our world. We look forward to doing our part to empower a sustainable future and sharing updates on our progress along the way. Ron Domanico Executive Vice President and Chief Financial Officer The Brink’s Company SUSTAINABILITY UPDATE | 4
ABOUT BRINK’S The Brink’s Company (NYSE:BCO) is the global leader in total cash management, route-based secure logistics and payment solutions including cash-in-transit, ATM services, cash management services (including vault outsourcing, money processing and intelligent safe services) and international transportation of valuables. Our customers include financial institutions, retailers, government agencies, mints, jewelers and other commercial operations. Our global network of operations in 53 countries serves customers in more than 100 countries. Our strong market position is supported by a long-term strategy to drive growth and the financial strength to continue to capture market share. Our culture of continuous improvement is supported by a global team dedicated to providing exceptional customer service. OUR VALUES SAFETY • Our goal: bring every employee home safe every night. • We take pride in keeping our customers’ valuables safe and secure. CUSTOMER FOCUS • We consider the customer first in all we do. • We understand our customers’ needs and find ways to transform their experience. • We hold ourselves accountable for providing value and delivering results. INTEGRITY • We act with honor and integrity. • We respect each other, our company, our customers and our communities. ENGAGEMENT • We promote open, direct and constructive communication. • We inspire employees to drive for excellence in all they do. CONTINUOUS IMPROVEMENT • We find ways to streamline our processes and improve performance. • We empower our people to think creatively and work differently. • We embrace and drive change. DIVERSITY & INCLUSION • We foster an inclusive culture that values people with diverse backgrounds, ideas and perspectives. • We build a sense of belonging so all employees feel respected, safe and valued. • We provide equal opportunity to participate and grow. SUSTAINABILITY UPDATE | 5
ENVIRONMENT: A FLEET OF POSSIBILITIES Brink’s is integrating responsible environmental practices into our daily operations to increase efficiency and reduce waste and emissions, with the goal of minimizing the environmental impact on our planet. Our Environmental Priorities Improve our environmental impact by: • Increasing fleet efficiency, optimizing routes and expanding digital solutions to reduce emissions • Investing in fuel-saving and alternative fuel technologies to reduce our dependency on fossil fuels • Implementing energy conservation best practices that reduce waste across our global facilities and operations United Nations Sustainable Development Goal “The management team has focused on collaboration and building a sustained global process improvement mindset, which has had significant positive impacts across the organization while at the same time making Brink’s a more sustainable corporate citizen.” SUSAN DOCHERTY, BRINK’S BOARD MEMBER Hear Susan discuss our impact on the environment at Brinks.com. SUSTAINABILITY UPDATE | 6
SOCIAL: ENVISIONING A BETTER WORLD Cash plays a critical role in society. By keeping cash moving and accessible, we help empower millions of consumers who rely on it to buy goods and services. We take this role very seriously and are focused on facilitating economic inclusion by modernizing cash acceptance around the world. Inside our company, we recognize the power of fostering an inclusive workplace that is rich with diverse ideas and perspectives at all levels of the organization. We are taking action to increase the diversity of our leadership team and workforce to better reflect the communities in which we live and work. Our Social Priorities Support our people and communities by: • Driving economic inclusion by facilitating acceptance, safe movement and efficient usage of cash • Creating a diverse and inclusive workplace with equal opportunity to participate and grow • Working continuously to ensure the safety and health of our employees, customers and communities United Nations Sustainable Development Goals Social Target We are working to increase the diversity of our leadership, starting with gender equality. We have set a target to increase the number of women in leadership roles1 by at least 50% by the end of 2026. “Businesses that don’t accept cash are actually practicing de facto discrimination against our most vulnerable community members, including the elderly and the poor, by excluding them from the purchase of basic necessities.” LOUIS PARKER, BRINK’S BOARD MEMBER Hear Louis discuss our social practices and programs at Brinks.com. 1 Defined as salary grade 18 and above SUSTAINABILITY UPDATE | 7
GOVERNANCE: A SECURE FOUNDATION Brink’s is committed to sound governance and risk management. We promote a culture of accountability, integrity and trust, all of which are fundamental to our Sustainability Program. Our Governance Priorities Enhance trust with our stakeholders by: • Ensuring that our actions align with our Code of Ethics and values • Identifying and addressing risks to our business • Embracing sound corporate governance practices United Nations Sustainable Development Goal “We see sustainability as intrinsic to our overall strategy and critical to creating long-term value for all our stakeholders, including our investors, customers, employees, suppliers, and the communities and countries where we do business. ... As we look toward the future, I believe the Board, as well as this management team, are well-positioned to maintain the highest standards of governance and to incorporate the elements of sustainability, which will yield the greatest benefits to both our business and our stakeholders.” MICHAEL HERLING, LEAD DIRECTOR Hear Michael discuss our Board’s commitment to robust governance practices at Brinks.com. SUSTAINABILITY UPDATE | 8
OUR PROGRESS TOWARD UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS Brink’s is a signatory of the United Nations (UN) Global Compact. The multi-year strategy of the UN Global Compact is to drive business awareness and action in support of achieving the United Nations Sustainable Development Goals (UN SDGs) by 2030. The 17 UN SDGs provide a powerful aspiration for improving our world—laying out where we collectively need to go and how to get there.1 We are focused on five goals that align with our operations: UN SDG BRINK’S ACTIVITIES Goal 3 - Good Health and Well-Being: Ensure healthy lives and promote well-being for all at all ages Safety is one of our six values. • During the pandemic, our highest priority has been protecting the health and safety of our employees and customers. • Our strategy is to offer competitive health care benefits globally. • Local leaders in several key markets held mental health communication campaigns and provided access to resources for employees. Goal 5 - Gender Equality: Achieve gender equality and empower all women and girls We have taken actions to increase the diversity of our leadership team and workforce to better reflect the communities in which we live and work by: • Establishing a goal of increasing women leaders2 globally, by at least 50% by the end of 2026. • Hiring a dedicated senior leader who focuses on advancing diversity & inclusion globally. • Launching women’s employee resource groups in several countries. Goal 10 - Reduced Inequalities: Reduce inequality within and among countries • As the world’s largest cash management company, we facilitate economic inclusion by helping to empower millions of underbanked people around the world to access goods and services by keeping cash moving and accessible. 1 https://www.unglobalcompact.org/ 2 Defined as salary grade 18 and above SUSTAINABILITY UPDATE | 9
UN SDG BRINK’S ACTIVITIES Goal 13 - Climate Action: Take urgent action to combat climate change and its impacts We are learning about ways we can improve the impact of our operations of our fleet through: • Currently analyzing baseline greenhouse gas emissions data (see below). • Installing and experimenting with solar panels on a segment of our vehicles in Ireland, the United Kingdom and Singapore. • Pilot testing new trucks with start/stop technology in Chile. • Replacing some diesel trucks in Mexico with alternative fuel trucks. • Testing electric vehicles. • Employing technology that can help reduce the number of stops per week our trucks make, reducing miles driven and fuel usage. Goal 16 - Peace, Justice and Strong Institutions: Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels • We have strengthened our Enterprise Risk Management Program by implementing new methodologies and technologies for identifying, mitigating and monitoring risks. • Our Code of Ethics lays the foundation for our company’s ethical conduct and provides guidance for how employees should conduct themselves as they go about their work. • Our Violence and Harassment-Free Workplace Policy helps ensure we maintain an environment free from violence, threats, harassment, intimidation or other activity that puts individuals in reasonable fear for their safety. • We added a new corporate value of Diversity & Inclusion to help ensure that we foster an inclusive culture, build a sense of belonging so all employees feel respected, safe and valued, and provide equal opportunity for employees to participate and grow. SUSTAINABILITY UPDATE | 10
GREENHOUSE GAS EMISSIONS DISCLOSURES Gross Scope 1 Emissions: 297,071 tonnes CO2e1 Scope 2 Emissions – Electricity Generated: 21,922 tonnes CO2e1 Although we are at the beginning of our sustainability journey, we recognize that our fleet represents an opportunity for Brink’s to make a meaningful environmental impact. We are exploring ways to improve the efficiency of our fleet, including using alternative fuel vehicles to reduce fuel used and route-optimization technology to minimize miles driven. INITIAL STEPS Operations in 10 markets (representing 72% of our 2021 global revenue) provided the baseline data that we are currently analyzing. We expect this analysis to inform our environmental strategy going forward as we work to optimize our fleet and reduce emissions. We sought to include in our baseline markets of various sizes, geographical locations, as well as social and regulatory environments. We also sought to include markets with strong operational maturity and ability to collect and provide required metrics. The baseline markets are: • Argentina • Greece • Mexico • Brazil • Hong Kong • Netherlands • Colombia • Malaysia • United States • France NOTES Gross Scope 1 and Scope 2 emissions data was calculated using Greenhouse Gas Protocol and the Fourth Assessment Report for Global Warming Potential (AR4 GWP). These protocols were chosen as the majority of the emission factor sources available still reference the United States Environmental Protection Agency (EPA) or take into account International Energy Agency (IEA) factors. Other factors and assumptions included in the calculations include: • Fuel purchases, in some instances, were tracked by fuel card, but not by a particular Vehicle Identification Number (VIN), which resulted in allocation of fuel to the most common vehicle in the fleet where fuel purchases by VIN were not available. • Miscategorized entries to the fuel purchase subledgers were noted and were not allocated to a specific VIN. • Fuel storage on site was allocated according to country fleet structure. • Fuel consumption for non-armored or executive vehicles was estimated in some instances as the data was not always available. • In some instances, mileage was estimated using fuel consumed multiplied by manufacturer average miles per gallon and applying the appropriate EPA emission factor for the vehicle. • Generator fuel stored in tanks was allocated according to generator maximum capacity, and an assumption was made that all fuel purchased during the year was consumed. • Electricity consumption was estimated using the average facility country consumption multiplied by the square footage of the facility using IEA Electricity Consumption totals in instances where the required data was not available. • Refrigerant data was not available in all locations; this was assumed to be immaterial and was not included in the calculation. 1 Scope 1 and Scope 2 emissions data are for the 10 baseline markets for the period of January 1, 2021 to December 31, 2021. SUSTAINABILITY UPDATE | 11