Connecting Consumers to Sustainable Beverages

Section Title
1
Sustainability
Report 2017

Contents
3
Contents
Environmental
impact statement
This report is printed by an ISO14001
printer using vegetable based inks
on FSC accredited paper which has
been carbon captured through the
Woodland Trust scheme and has
the following benefits:
0.185
tonne of carbon
captured
567
car miles
4.60m2
of new native
woodland
= or
Introduction
Foreword ................................................................................................................................. 4
Sustainability view of the industry .................................................................................... 5
About Finlays
Finlays fast facts ................................................................................................................... 6
Sustainability fast facts 2018 ............................................................................................. 8
Group structure ................................................................................................................... 10
Global network .................................................................................................................... 11
Scope of report .................................................................................................................... 12
Management approach to sustainability ........................................................................ 13
Sustainable Future
Delivering a sustainable future ........................................................................................ 14
Integrated Landscapes ....................................................................................................... 16
Land Stewardship ................................................................................................................ 19
Our People ............................................................................................................................ 21
Low Impact Operations ...................................................................................................... 24
Empowered Communities ................................................................................................. 28
Sustainable Supply .............................................................................................................. 31
Governance
Legal form and governance ............................................................................................... 33
Swire Group
SwireTHRIVE ......................................................................................................................... 34

04
Finlays Sustainability Report 2017 Introduction
05
Supply chains became longer and more
complex; the final product got further
and further from where it started, in
every sense. Soon the race was on to
package and produce brands that would
keep consumers hooked. But today –
once again – people want to know the
origin of their food and drink. That is
why we believe the future of our
industry is to reconnect with the past.
At Finlays we have never lost touch
with our own past. The lessons of two
centuries feel more relevant today than
ever. We are drawing on these long-held
values to try and create a better future
for the beverage industry. That means
harnessing new technologies in a
responsible way – ensuring future
innovations drive our industry to new
heights, delivering healthy products to
consumers around the world. It means
continuing the tradition of fair dealings
that has helped us build life-long
relationships and thriving communities.
It means using over a century of
agricultural experience to make our
crops sustainable and our supply
chains transparent. Most of all it means
empowering our customers – both large
and small – to develop the natural,
traceable and trusted products their
consumers are now asking for. Within
Finlays it means unleashing the skills
and knowledge of our team members
to ensure that we meet the needs of
our customers and their consumers.
With deep roots across the globe, we
believe that no-one is better placed than
Finlays to unleash the global potential
of tea and other natural products to
create tomorrow’s beverages.
We carried out research into new
factors, horizon-scanned and
interviewed key stakeholders. For the
most part, the challenges we identified
in 2008 remain unchanged, though
looming larger and no longer distant.
The review allowed us to stand back,
reflect on what we as Finlays have
achieved, take a view around the wider
beverage industry and other relevant
sectors and initiatives.
The tea industry is at a pivotal moment
in its identification and management of
some of the key factors impacting on it.
Consumers and brands want to trust
that the tea they buy is made in a way
that supports the industry long-term,
that supply is transparent and traceable
and the product is good for people
and our planet.
The tea and coffee sector have
challenges around climatic change and
changing weather patterns, licence to
operate, transparency, regulation on
agrochemicals, of which many countries
are dependent on for growing.
The financial sustainability of the
formal estate model is under severe
pressure from the informal tea
economy. Many regions have social
models fit for the 19th Century.
We could potentially have significant
over-supply if all producers applied
standard agronomy practices and
had a good season.
Tea mechanisation is seen by many
in the same way the Luddites viewed
cotton and wool weaving machinery.
Yet work as a tea picker is physically
very difficult, and not a career of
choice for those that have options.
On top of existential challenges faced
by the industry, every year there seems
to be an exposé of unacceptable/
unethical labour standards highlighted
by the media and civil society
There are bright spots, that are starting
to become a consensus on some of the
big issues the industry needs to tackle.
There is emerging a greater
understanding of the impacts
climatic change is having; producers
and governments are beginning to
embrace mitigation strategies to ensure
that not just tea but agriculture in these
regions has a future (such as the ISLA
Mau project).
Foreword Sustainability view
of the industry
In the past, consumers used to know where their food and
drink came from: it was local and natural. Then populations
grew and spread out. Many things changed.
Guy Chambers
Group Managing Director
James Finlay Limited
On agrochemicals, as an industry we are
beginning to understand that managing
pests and disease do not require
significant amounts of chemicals.
Assamica bushes were originally found
in the jungle of Assam, they are used
to being surrounded and thrive within
a rich source of biodiversity.
On labour, there is really no excuse.
Most producers have an awareness
of standards on their properties and
as employers it is their responsibility
to make sure standards are at the
required levels and that they are
proactive on issues such as gender.
But we also need other organisations
such as certification bodies not just
to recognise but assist the industry
moving forward. Certification should
not be a commoditised standard, but
provide value and assurance to all in
the chain by moving the dial in line with
best practice. We also need civil society
organisations to support those who
do and challenge those that don’t.
Finlays refreshed strategy gives
a clear articulation of what we believe
are the challenges we have to face.
The future is daunting but exciting.
In 2017 we conducted a full review and refresh of our 2009
sustainability strategy. In the review we tested the key factors
and scenarios underpinning the strategy.
Michael Pennant-Jones
Group Head of Sustainability

06
Finlays Sustainability Report 2017 About Finlays
07
Tea65.7m kg
Produces 65.7 million kg per
annum from 13,000 hectares
of land dedicated to tea
growing in Kenya, Sri Lanka
and Argentina.
13.8m kg
Manufactures and trades
over 13.8 million kg of tea
extracts per annum.
2.3m kg
Manufactures and trades 2.3
million kg of decaffeinated
tea and 1.4 million kg of tea
aroma per annum.
64m kg
Trades 64 million kg of tea
from offices in the UK,
Kenya, Sri Lanka, UAE,
Malawi, Vietnam, Indonesia,
China and the USA.
10.7m kg
Blends and packs over 10.7
million kg of tea per annum.
7.7m kg
Manufactures over
7.7 million kg and trades
7.8 million kg of coffee
extract per annum.
5.2m kg
Blends and packs over
5.2 million kg of coffee
per annum.
Coffee
125m stems
133 hectares in Kenya,
producing over 125 million
stems per annum for the UK
and Continental Europe.
Flowers
654,000 nuts
Over 654,000 coconuts
produced per annum
in Sri Lanka.
Coconuts
5,000 hectares
5,000 hectares in Kenya, Sri Lanka
and Argentina producing 157,000
sustainable tonnes of Eucalyptus,
Pine and Cyprus.
Timber
2,000 hectares
Over 2,000 hectares in Sri Lanka
producing over 1.4 million kg of
rubber latex, per annum.
Rubber
82,000m3
Operates an 82,000m3
facility
in Sri Lanka.
Cold Storage
1.1m kg
Producing over 1.1 million
kg of ancillary crops in Sri
Lanka such as cinnamon,
pepper and cocoa.
Ancillary
Crops
14.6m kg
Manufactures and sells over
14.6 million kg of herbal teas
and other extracts such as fruit,
sweeteners and caffeine in
China and Kenya.
Botanicals and
Other Extracts
Finlays Fast Facts
(GRI: 102-2, 102-7) (GRI: 102-2, 102-7)

08
09
Water
10,516m2
wetlands on our sites.
Tea is rain fed crop.
Flowers use drip
irrigation.
405,291m3
Recycle/reused water in
our operations.
Wetlands systems to
clean water before
releasing.
Energy
87%
of our energy
consumption is from
renewable sources.
4596 GJs
of solar generated
from our sites,
18,504 GJs
from hydro power,
1,196 GJs
from Biogas and over
1million GJs
from biomas thermal.
Carbon
23%
reduction in our Scope 1
carbon emissions
since 2013.
7,396t
of carbon saved.
1.38t
of Co2e produced
per tonne of
production produced.
Forests
60,000ha
of additional land
protected within the
Mau forest in Kenya
in partnership
collaboration.
12.5ha
of degraded land
rehabilitated into
Afromontane forest
in Kericho, Kenya.
Species
1,129 plant species.
836 species of birds.
496 species
of mammals.
2,716 species
of invertebrates.
55 beehives established
on our farms, providing
pollination, secondary
incomes and nutrition.
Community
Support
over 15,000
smallholder farmers.
Voluntary contributed
US$2 million
in community
investments.
Certification
100% Rainforest
Alliance Certified™
(Kenya, Argentina and
Sri Lanka) tea produced.
59%
of Green coffee beans
sourced certified
(Rainforest Alliance,
Fairtrade, Organic)
Chain of custody;
Rainforest Alliance, UTZ,
and organic ISO14001
and SMETA assurance.
Protected
Over 45,000
indigenous seedlings
provided in Kenya,
Argentina and Sri Lanka.
4,077ha
of natural, protected,
habitats within our
property.
9,750kgs
biological pest
management used.
Papua New Guinea
Peru
Colombia
Brazil
Honduras
Guatemala
Costa Rica
Nicaragua
Argentina
Sustainability in action on our properties
Biodiversity studies conducted in 3 Regions, within 8 sites.
Vietnam
Indonesia
India
Malawi
Kenya
South Africa
Zimbabwe
China
Tanzania
Sri Lanka
Uganda
Mozambique
Burundi
Ethiopia
Congo
Madagascar
Sustainability
Fast Facts 2017

Kenya
Employees – 10,450 | Hectares – 11,500
Sri Lanka
Employees – 12,000 | Hectares – 11,900
Argentina
Employees – 356 | Hectares – 3,433
Tea Sourcing
Origin
Regions where we operate in and source from:
Coffee Sourcing
Origin
Botanicals
Rwanda
Germany
(GRI: 304-3)

10
11
Finlays have a unique position in
that we own and operate a vertically
integrated global supply chain for tea,
which spans tea farms and direct
contracts in all major tea-growing
regions, some of which we have owned
and brought the best from bush to cup,
for over a century.
(GRI: 102-1, 102-2, 102-3)
We employ over 25,000 employees, globally.
Our primary markets are in the UK, USA and Asia.
Total Net Sales: US$ 505,488,000
Total Capitalisation broken down in terms of debt and equity:
Debt: US$268,964,000; Equity: US$502,123,000
Group structure Global network
Finlays operates in many parts of the world, across
a diverse spread of geographies, local cultures and languages.
Whilst respecting our local cultures, we also seek to build
a common operating culture within Finlays.
Finlays head office is located at:
Swire house, 59 Buckingham Gate,
London, SW1E 6AJ
We have offices, manufacturing
plants, tea estates and R&D facilities
located globally.
We operate a global, customer focused
commercial function to support
customers around the world to supply
tea, coffee extracts and botanical
extracts (either from our own facilities
or those of others). We act as a trusted
global business partner. Furthermore,
we specialise in technology and
processes that ‘bring the best from
bush to cup’.
Trading/sales offices
Manufacturing sites
Tea estates
Blending
Packing facilities
(GRI: 102-4, 102-6, 102-7)
Gonzales San Antonio
Tea
Estates
Beverage
Packing
Sourcing &
Supply
Extracts &
Ingredients
Innovation Ventures

12
13
Exceptions to full disclosure are:
– Tea trading offices in Dubai,
Indonesia, Vietnam and Malawi,
report Occupational Health and
Safety (OHS) and partial scope 3 data,
due to the small size of their offices.
– Damin International Holding
Limited’s data is now included in all
aspects of this report. Within profit
this is reported at share percentage of
49.5%, economic contribution figures
are at an average share percentage
of 41% and production volumes and
environmental performance is
included at 100%. Damin is the largest
tea extracts producer in the world.
– Aspen Beverage Group was
acquired in June 2017, the group’s
performance data is only included
in total capitalisation. Aspen has
increased our market share in the
Cold-Brew sector in North America.
(GRI: 102-10, 120-50, 102-51, 102-52, 102-53, 102-54, 305-2)
Our Mission is to connect humanity
through natural beverages.
Combining tradition and innovation
to create a healthier, happier and
better world by bringing the best
from bush to cup.
Responsibility for sustainability sits
with our Group MD, our Group Head
of Sustainability, and members of
Finlays global Executive. Sustainability
is reported twice per year to Finlays
Main Board as a standing agenda item.
(GRI: 102-11, 102-16, 102-18)
Scope of report Management approach
to sustainability
The report covers all main aspects of Finlays global operations
in USA, Africa, Sri Lanka, Argentina, China and UK.
Reporting period: the report follows
a calendar year for 2017. Annual
reports have been produced since 2009.
Our methodology uses the indicators
included in the Global Reporting
Initiative (GRI) guidelines, with carbon
measurements based on World
Resources Institute (WRI) and the
World Business Council for Sustainable
Development (WBCSD), GreenHouse
Gas (GHG) Protocols.
This report has been prepared in
accordance with the GRI Standards:
Core option.
If there are any queries about
this report, please contact us at
sustainability@finlays.net
or write to us at:
Sustainability
Finlays, Swire House,
59 Buckingham Gate
London, UK, SW1E 6AJ
Our head office provides oversight,
facilitation and guidance. Commitment
is owned by each division head and
subsequent senior managers across
our regions of operation. Each regional
head has sustainability KPIs built into
their performance analysis.
Our new strategic sustainable
objectives are aligned with our core
business strategy, values and vision.
All our regions face different challenges
depending on the location, products
and stakeholders.
Our company Vision is to grow Finlays profitably and sustainably
by serving as the industry’s trusted leader in the supply of tea
(in all its wonderful varieties, formats and applications), coffee
and botanical extracts to the world’s beverage brand owners.
Precautionary approach; a key aspect
to our environmental policy is to
seek to understand, protect and
enhance biodiversity around our
operations and where practicable
pursue a restorative agenda.
We not only seek to protect and
enhance the environment and
biodiversity surrounding our operations
and ensure the safety of our employees
by executing a robust OHS management
system; we also look to empower and
embrace our local communities,
wherever in the world they might be.

14
Finlays Sustainability Report 2017 Sustainable Future
15
Delivering a
sustainable future
It is 9 years since the first Sustainability Strategy for
Finlays was introduced and since then much has changed,
both internally and externally.
Taking on board lessons from the last
decade; the increasing expectations
from stakeholders, and our parent
company’s sustainability strategy;
SwireThrive (see page 35), our new
strategy looks to future proof our
business and reduce risk, whilst being
proactive and rising to challenges.
Our new sustainability strategy
reflects our current business model
and is aligned with our internal
business strategy.
It is essential to have a strong practical
narrative around our business not
just for external audiences but also
internally, allowing our employees
to equate their daily actions with
improvements in the overall
sustainability of our business.
Included in our strategy is the
perception of the increased demand
for transparency by consumers and
B2B customers of how products are
made and the standards under which
they are made, covering the whole
supply chain.
Globally we see increasing contributions
from companies and corporations
to achieve and implement the UN
Sustainable Development Goals (SDGs)
by 2030. Our new strategy aligns our
areas of influence with the SDGs.
Our sustainability strategy focuses on 6 strategic sustainability
objectives that cover all aspects of our business from production to
manufacturing and commercial. Our strategic objectives will be met
by the end of 2022. To do this we will be open and transparent,
endeavouring to create positive impact.
Our vision is being supported though our commitment to, and adoption of objectives and targets
relating to six strategic sustainability objectives and all regions and aspects of our value chain.
To support our strategic objectives, we are focusing on achieving group targets by 2022.
This will ensure that our products are sustainable at every step, from where we grow and source
raw materials until they reaches the ultimate consumer.
Plans for 2018
– Implement the roll out of
our strategy, globally.
– Set annual targets, regionally,
to support our strategic
targets to 2022.
– Create working groups for
each strategic objective to
ensure best practice, knowledge
and skills sharing across the
group and supply chain.
Integrated
Landscapes
Our tea estates are dependent on
the people, communities and natural
resources in the wider, external
landscape. To sustain our operations
and license to operate we will work
towards an integrated landscape.
Finlays will protect and enhance
100,000 hectares of natural forest
by 2022.
Sustainable
Supply
Finlays recognises the increasing
demand to be transparent and
responsible.
We commit to providing responsible
and traceable supply of all raw
materials and influencing our supply
chains through sharing best practice.
Finlays will have 100% traceable,
transparent supply to internationally
accepted standards on tea and coffee
by 2022.
Land
Stewardship
At Finlays we recognise that good
agricultural practices and land
management is essential if we are to
be economically and environmentally
sustainable. We will practice and
demonstrate outstanding
land management.
Finlays will reduce agrochemical
usage by 50% by 2022.
Empowered
Communities
We recognise and rely on community
collaboration across all our regions
of operattions. We commit to
empowering local communities
by acting as a catalyst for positive
change.
We aim to be responsible members
within communities, in which we
operate and where possible, to generate
positive impact on society.
Finlays will make a positive impact
in the communities within which
we operate.
Our
People
Our employees are at the heart of
our business. Finlays is committed to
being an employer that demonstrates
opportunity, fairness and equality,
providing an inspiring fulfilling and
adaptable workplace.
Finlays will increase participation
of women in management to 30%
by 2022.
Low Impact
Operations
At Finlays we recognise that effective
and efficient management of resources
is not only good for the environment
but is also good business practice.
We will reduce impact by
de-carbonising and minimising
water usage, waste and pollutants.
Finlays will reduce year on year our
environmental impact throughout
our operations.

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17
Finlays will protect and
enhance 100,000 hectares
of natural forest by 2022.
Around the world, climate
change is happening fast and
is particularly affecting tropical
agriculture. Climate change
can often be mitigated by
preserving and enhancing
climatic regulators such as
forests. In Kenya degradation
of the Mau Forest poses a
significant threat to agriculture
around Kericho, impacting on
weather, biodiversity, watershed
and our licence to operate.
The Mau forest, Afromontane forest
covers over 400,000 hectares in
South-West Kenya. The forest is crucial
in providing the environment that
allows agriculture and thus communities
and industry in the region to flourish.
It regulates the regions’ micro-climate,
the rainfall patterns and has a critical
role as a watershed. Rich in biodiversity,
the forest also assists regional
agriculture to remain resilient to
pests and disease.
Within 20 years, more than 25 per cent
of the South West Mau forest has been
lost. The loss is the outcome of
encroaching, growing populations,
increased livestock overgrazing,
charcoal burning, and timber extraction.
Finlays have been working in
partnership with IDH, government
representatives, and other organisations
to protect and regenerate the Mau,
through the South West Mau Sustainable
Landscape project that was launched in
Kericho under ISLA on 30th June 2015.
To date Finlays has:
– 12.5 ha of degraded forest
rehabilitated near the Mara Mara
Forest station.
– Sponsored the ‘Bongo Surveillance
Programme’
– Funded 2 new guard outposts on
the Eastern boundary of the forest
– Purchase of essential equipment
for forest rangers
– Quarterly aerial surveillance flights
over the forest
– Funded the livestock intensification
program pilot aimed at improving
livelihoods and reducing grazing
pressure
– Training on law enforcement
for stakeholders
– Rehabilitation and protection of
Kipchobos spring (community water)
– Established beehives with local
communities providing them with
alternate livelihood options
– Carried out a biodiversity study
on the adjacent forest
We will continue to collaborate with
all stakeholders in the South West Mau
Sustainable Landscape Project (ISLA) to
implement activities in the protection
and rehabilitation of the forest.
Future plans include:
– Increase preservation: Fencing the
Eastern boundary. The fence will
be approximately 45km in length,
and will provide an invaluable
management tool to reduce human-
wildlife conflict and assist Kenya
Forest Service regulate access to
the forest and the exploitation
of its resources.
– Reduce further deforestation:
Through the introduction of zero
grazing and a forest buffer zone
(tea/bamboo).
– Address illegal commercial
activities: Quarterly aerial
surveillance flights co-funded by
Finlays and IDH, and guided by
Rhino Ark, during which they fly
over the South West Mau Forest to
spot illegal activities.
– Tree-enrichment planting:
Participating in the sustainable
replanting of degraded forest blocks.
So far, 200 hectares have been
planted and another 300 hectares
planned.
– Increase mechanisms: for the Kenya
Forest Service to control access to
the forest and enforce forest laws.
– Sustainable livestock management:
To reduce over-dependence on the
forest for grazing.
Argentinian Landscape Project
Our Argentinian tea fields are located
in Misiones province, lying north-east
in Argentina. Bordering Brazil,
Paraguay and Uruguay.
Misiones falls within a biodiversity rich
region which forms part of the Atlantic
Forest Biome. In May 2017 stakeholders
in Misiones, Argentina, met to identify
and discuss the risks and opportunities
facing key sectors in the Misiones
region. The workshop was organised
by Finlays Argentina, Tea2030 (a global
tea collaborative platform overseen
by Forum for the Future), and S&D
Coffee and Tea.
The workshop was the first time
industry participants had come
together for such an event in over
50 years in Misiones. Attending were
representatives from the government,
civil society, the tea industry as well
as paper, pulp and timber sectors.
Government representatives,
competitors, NGOs, other sectors
operating in the region; paper and
timber, etc. A landscape-approach
analysis was undertaken to assess
all levels of risk in relation to a host
of potential social, economic and
environmental challenges (including
labour, climate change and biodiversity
loss), within the region.
The workshop informed further
interest to support the development
of a thriving region and tea sector in
Argentina to sustainably manage the
producing landscapes and encourage
a restorative and holistic approach
in the region.
Longer term the group objectives are
to reduce sustainability risks, build
resilience in Argentinian tea production
and ensure the long-term security
of supply to businesses sourcing tea
from Argentina.
Further collaboration of the landscape
project with other tea companies,
small holders, institutions, and local
Government, in a national government
plan to promote Argentinean Tea,
within the global market. The project
is identified as PROTA (Proyecto
Identidad Té Argentina). Our landscapes
team are leading the project with the
Government, sharing our expertise
in tea production and sustainability.
This will showcase our commitment to
change and to creating a sustainable
region within Misiones and the
Argentinian tea industry.
Integrated
Landscapes
‘Conservation of forests is far more likely to
succeed when smallholders are empowered
to do sustainable farming.’
Kenya Integrated Sustainable Landscape Initiative (ISLA) update

18
19
(GRI: 304-1, 304-4)
Argentina
In Argentina biodiversity studies were
conducted within two of our properties;
Argente and Acaragua, on which we
have more than 1,500 Ha of natural
rainforest of the “Selva Paranaense”
part of the Atlantic Forest Biome
(Bosque Atlántico). This biome holds
over 7% of the global biodiversity, of
which 40% of the species found here
are endemic to the region. Today only
7% of this forest biome remains,
with Misiones holding 45% of the
remaining forest.
The results of the study show that
our two sites are species rich, having
recorded a high level of mammals, birds
and flora. Including some activity from
12 endangered species. Such as the
critically endangered purple palomita
(Claravis geoffroyi) dove, that flock
when bamboo plants fructify, which
occurs every several decades. Other
endangered species recorded include,
Paca (Cuniculus paca), the Greater
Nakedtailed Armadillo (Cabassous
tatouay), the Lesser Anteater
(Tamandua tetradactyla) and forest
cats including ocelot, tirica and puma.
In the summer survey we recorded a
new species of beetle for Argentina, the
Anychocerus albitarsis (Cerambycidae).
The aim of the study was to evaluate
the current status of the biodiversity
on our sites and create an informed
plan to enhance and protect the
biodiversity fundamental for a
sustainable future.
These plans will be put in place in 2018.
We will look to increase areas assigned
for green corridors; hold education
sessions within schools and
communities to extend the knowledge
of the importance of conservation
locally and consider the removal of
alien flora, increasing the regeneration
of indigenous forest canopy.
Biodiversity Reports
This year we conducted biodiversity studies in two regions; Argentina and Sri Lanka.
To follow on from our previous studies conducted in Kenya and Sri Lanka in previous years.
Sri Lanka
In Sri Lanka we conducted a
biodiversity assessment in Rakwana
a region which has a mosaic of diverse
natural habitats, including lowland
wet evergreen forests, mid elevation
evergreen forests and moist-mixed
evergreen forests. The area receives
up to 3000mm annual rain and
the relatively drier areas receive
up to 2500mm.
In Sri Lanka, the estates lie adjacent
to the Sinharaja forest World Heritage
site which while rich in biodiversity
is crucial as a local watershed.
The diverse climatic and habitat
variations have resulted in the presence
of numerous plant and animal species.
The documented species found on
Finlays property included 332 species
of plants and 317 animals. Among
them, 200 are confined only to Sri
Lanka and 109 are listed as critically
endangered species according to IUCN
red list, such as; the flame-striped
jungle squirrel (Funambulus layardi)
and Asian elephant (Elephas maximus
Linnaeus).
Our aim is to achieve sustainable use
of natural resources, retaining a pristine
environment where nature thrives
along with economically productive
plantation landscape.
To increase the abundance of species
and ecosystem services, we are working
to increase the conservation of natural
areas, expand current ecological
corridors to link remnant forested
areas. External pressures on vegetation
and alien plant invasion have to be
addressed to enable indigenous flora
to prosper and to increase hydrological
performance. The abundance of
invasive plant species removed will
be considered for producing biogas
and organic fertiliser.
To achieve this conservation of
biodiversity is essential and accepted
at our managerial level. This will
require promoting best practices and
commitment to land management to
maintain high levels of biodiversity and
ecosystem services and also develop
sustainable plantations.
Land
Stewardship
Reduce agrochemical
usage by 50% by 2022.
Agricultural land is a decreasing
resource. Tea bushes remain
economical for over 50 years
and we must manage the land
accordingly. This means
employing good agricultural
practices and growing tea
with the minimum of
unnecessary inputs.
Plans for 2018
– Continued collaboration
within the Mau forest project,
including fencing of the Mau
– Increased landcover in
Sri Lanka and Argentina.
– Continue to contribute and
promote landscapes and
PROTE in Argentina.
‘We can’t protect,
what we don’t know.’
Michael Pennant-Jones
Group Head of Sustainability
Images above, left to right:
Ocelot (Leopardus pardalis) discovered in Misiones,
Argentina by our camera traps. The Bongo
(Tragelaphus eurycerus) found and protected in Mau
Forest, Kenya and Sri Lanka White- faced Starling,
endemic rare bird restricted to the wet zone.

20
21
Inter Company Plantation
Meeting (ICPM)
Finlays ICPM was held in Argentina
this year for the first time.
Finlays holds its ICPM every two years,
allowing all our growing operations
to get together to discuss growing
techniques, share experiences and
enhance best practice within our group.
The team met over a week, visiting
sites throughout Misiones, Argentina.
Best and current agricultural practices
from each region were shared, with
discussions focusing on topics such
as soil health, soil erosion prevention,
tea planting techniques, weed control,
pest and disease management, to name
a few. In the future years we will be
looking to standardise best practice
in agronomy across the group and
the ICPM will be a key event to share,
challenge and learn.
Field Innovation Group (FIG)
In Sri Lanka the estates have come
together to discuss innovative ideas
and best practices for some of the key
challenges they face growing tea within
the region. The formation of this group
is the first time the estate managers
have begun to explore collectively best
practice and new ways of working in
the field. Their remit is to define and
standardise best field practice across
TESL. In 2017 the team explored,
showcased and trialled agronomy
challenges such as non-chemical weed
control, reducing soil erosion and
increasing carbon content, fertiliser
application, optimising machine
harvesting and Nematode management.
Preventing soil erosion and silt runoff,
in Sri Lanka is important. Especially
as the location of our Rakwana estate
lies between the head waters of two
important river catchments (River
Kalu- flows to the highest populated
area in the country, River Walawe
flows to the dry zone of the country).
Sri Lanka is prone to erosion, silt build
up and landslides; in order to prevent
this appropriate land husbandry
practices are followed, including
ensuring good groundcover is in place.
Alternatives for weed control
Looking beyond agro-chemicals and
aligning our growing regions to achieve
targets to reduce usage by 50% by 2020,
we are revisiting the concept of useful,
friendly weeds and introducing further
alternatives for weed control. This is
building upon previous knowledge
that increased presence of natural
forest reduces the occurrence of
pests and disease.
Growing tea requires little use of
agro-chemicals, as cool climatic
conditions mean most pests do not
reach the economic injury levels.
However, tea does encounter some
pests, such as mites, aphids and weevils
and some diseases such as armillaria
root rot. In tea fields differing weeds
occur, such as Commelina Bengalensis
or Khaki weed, however, these are
heavily dependent on which growing
region we are in.
To reduce agro-chemical use Integrated
Pest Management (IPM), is key. IPM uses
a variety of methods and techniques,
including cultural, biological and
structural strategies that discourage
pests and keep agro-chemicals to levels
that are economically justified and
reduce or minimise risks to human
health and the environment.
In Argentina, Kenya and Sri Lanka
we are exploring the concept of
integrated weed management and
friendly weeds, trialling several
techniques to reduce our use of
agro-chemicals. Such techniques for
pest and weed control can include;
timely fertiliser application; specific
pruning to reduce disease and differing
pruning techniques to increase shade
and ground cover and biological
controls. Using fungal spores and
tiny mite predators to reduce the
numbers of mites and other potential
pests, biologically.
The use of botanical extracts as
deterrents is being used as pest
management at the nursery level.
There are many other “friendly weeds”
used, such as legumes, that are
nitrogen fixing, enriching soil
structure and health.
In Sri Lanka, our Blairlomond Estate has
explored a local alternative to manual
weeding by introducing mechanical
weeding cooperative. Finlays provided
mechanical weeders, training and loans
to local cooperative members, who are
then contracted out to do mechanical
weeding within the region, including
smallholders. Weeding contracts are
offered within tea fields and vacant
lots. Currently there are 10 member
machines available for contracts.
Reducing agro-chemicals will
enhance the growth of friendly flora
and fauna that enrich the biodiversity
and which in turn will balance
the ecosystems within the tea,
pest and the soil.
(GRI: 307-1)
Our
People
Increase participation of
women in management
to 30% by 2022.
Being a good employer enables
us to attract key talent, retain
skilled employees and develop
our internal skill sets to
optimise our current and
future potential and reputation.
We need to build on and
enhance the standards within
Finlays. Traditionally there
has been a lack of women in
management roles within the
tea industry. If we want to be
an employer of choice we need
to attract the best talent.
Plans for 2018
– Continue our trials on weed
reduction using alternative
methods.
– Increase groundcover using
food safety friendly weeds
– Increase use of mechanical
weeding
– Increase use of natural pest
management
– Develop best practice and
set annual targets across our
growing regions to support
our strategy.

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23
Gender inequality in the workplace is
a complex issue; it is defined, in the
workplace, as equal opportunities for
women and men to develop their
competencies, to make their choices
and realise their full ambition in work
life without any restriction on the basis
of gender (Rissen and Kolehman, 2005).
Since the inception of project Athena
in JFK in 2014, we have achieved
significant milestones towards the
advancement of gender equality and
representation of women within all
sectors of the company.
Implementing the Gender Equality and
Diversity Policy and Strategy in 2015,
has ensured that no persons are
discriminated directly or indirectly in
all facets of employment (recruitment,
appraisals, promotion, career
development and remuneration)
on the basis of gender.
The project and team have achieved
great advances, including:
Implementing a trainee management
programme, which has created
opportunities for 29% of women in
junior management positions in the
tea estates since 2015.
Our apprenticeship programme for
Women in Technology has enrolled 20
women in the Technical Institute for
technology on courses such as masonry,
mechanics, plumbing, electrical,
carpentry etc. Following qualification
and a competitive interview processes,
90% have been successfully absorbed
into the system as artisans.
Implementing a talent development
programme which develops skills and
competencies of both men and women
thus enabling them to be qualified for
career advancement.
Women in leadership training, which
combines leadership training with
attendance of a conference and
symposium providing opportunities
for elevated networking and access to
inspirational talks from women mentors
who are trailblazers in different sectors.
A key aspect to the project is building
the awareness and capacity of all
employees to support gender equality
and women empowerment within the
workplace. We are working to change
perceptions of being gender blind or
gender neutral to being positively
gender inclusive and transformative.
The programme has aided women
representation at JFK to reach 32%.
This is 1% shy of the 33% constitutional
requirement (The Constitution of the
Republic of Kenya 2010) and attaining
critical mass to influence decision
making and participation.
(GRI: 120-11, 403-1, 403-2)
Ethical Trade Initiative (ETI)
The Ethical Trade Initiative is a leading
alliance of companies, trade unions and
non-governmental organisations that
promotes respect for workers’ rights
around the globe.
Finlays has been a corporate member
of ETI since 2009. As a member, Finlays
agrees to adopt the ETI Base Code of
labour practice throughout our own
operations and our supply chains,
where possible. The ETI Base Code
is based on the conventions of the
International Labour Organisation (ILO)
and addresses issues like wages, hours
of work, health and safety and
discrimination.
Being a member allows Finlays to
participate in a tripartite group with
representatives from other companies,
global trade unions and voluntary
organisations, enabling us to work
together to tackle the many complex
questions about what steps companies
should take to trade ethically, and how
to make a positive difference to
workers’ lives.
Our membership also enables us to
demonstrate our commitment to ethical
practices in the work place and ethical
trade to our customers.
In 2018, we plan to further demonstrate
our commitment by providing training
to management and carrying out
preliminary assessments at various
manufacturing facilities.
Gender Equality in James Finlays Kenya Limited (JFK)
The James Finlay Group is committed to
providing a healthy and safe workplace
for our employees, contractors and
visitors, from meeting all of its
statutory responsibilities, to realising
our vision of achieving ‘Zero Harm’
This strategy defines the framework
within which the James Finlay Group
will meet these commitments,
demonstrates how we will monitor
and measure our progress, and details
how we will progressively implement
an ‘Always Safe’ approach that applies
to everyone, and everything we do,
across our business.
The Group Board and Senior Executive
Management Team fully commend
and support this strategy, accept
responsibility for implementing it
across their business units, and are
committed to a process of continual
improvement to ensure success.
Our Zero Harm strategy was launched
in April 2017 across the Group,
engaging as many of our people
as possible.
Simultaneously all regions carried out
a baseline assessment against a group
Zero Harm road map, identifying which
elements they could progress that
would have the greatest impact in their
workplaces, and drafting action plans
to implement these.
The Finlays Always Safe Team,
comprising of OHS managers across the
regions, was formed with the intention
to meet monthly to monitor progress,
share learnings from both good and bad
experiences, discuss opportunities for
continual improvement, and drive a
unified approach to H&S.
Corporate Audits
10 audits based on the Corporate
Health and Safety Management System
were completed in 2017, covering
all our main regions of operation,
except for our Argentinian operations.
Improved scores were recorded
within 9 out of 10 regions, with 1
staying static.
The overall group average score
improved from 76% to 79% since 2016.
Notes:
1. Hazards reporting is where unsafe acts or conditions are identified and spotted before these result
in near misses or accidents and demonstrate employee engagement
2. Rates are calculated per 200,000hrs worked, which equates to 100 employees working 40 hours
per week for 50 weeks of the year
Some Key Figures
Comparison of 12 months data from April 2017 to March 2018 with that
from April 2016 to March 2017 indicates that the Zero Harm strategy is
achieving significant success, as per the following table:
Health and Safety
Finlays has seen considerable progress in 2017, with our
‘Always Safe’ campaign in pursuit of our aspiration to achieve
Zero Harm across the entire Finlays Group.
Apr 2016 –
Mar 2017
Apr 2017 –
Mar 2018
Difference
Lost time injury rate
Lost working hours rate
Hazard reporting rate
50% decrease
46% decrease
10% increase
0.14
28.94
34.74
0.28
53.18
31.12
(GRI: 404-2)
Plans for 2018
– Globally roll out our gender
programmes and set regional,
annual targets to enable us to
meet our 2022 target.
– Promote and discuss ETI
base codes throughout our
operations (and supply chains)
– Deliver ‘Always Safe
Leadership’ course for front
line managers, and ‘training
the trainers’ internally
– Review our corporate health
and safety management system
to reflect the International
H&S standards.
Management Reviews
In October 2017 group guidance on
annual H&S management reviews was
developed and used to great effect by
business managing directors to review
H&S performance to date, to identify
opportunities for improvement, and
set challenging but realistic objectives
for 2018 supported by SMART based
action plans.

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25
Low Impact
Operations
To reduce year on year
our environmental
impact throughout
our operations.
Reducing the footprint of
our businesses is not just
good financially but increases
the operational health of
the business.
Increasingly local environmental
legislation is requiring low
impact operational compliance
from a reduction in pollutants
and emissions, to reducing the
demand for energy and water.
Tea-valution and LEED Gold
Our new state-of-the-art, global research
and development centre officially
opened on April 5 at the Quonset
Business Park in North Kingstown,
Rhode Island, USA. The Rhode Island
Governor Gina Raimondo attended the
ribbon cutting ceremony along with
state and local officials. The state of
Rhode Island is extremely proud and
excited by the official opening of this
new research centre, which signals that
there is true economic development
within Rhode Island; for Finlays, it
enables us to continue to grow our
global market participation.
The US market is seeing major growth
in premium tea beverages, coupled with
a growing significance placed on the tea
ingredient, linked to product attributes
such as origin e.g. “Chinese green tea”.
As interest in clean label and healthy
products increases, consumers are
seeking more authentic beverage
experiences and increasingly demanding
greater transparency from the food and
beverages that they consume. This is
driving innovation in the ‘natural
beverage’ space while placing greater
emphasis on tea quality and flavour.
In the competitive US market, enticing
consumers with innovation remains
key, driving brand owners to create
‘differentiated’ products using ‘exotic’
teas and botanical blends. While black
tea still accounts for over three-quarters
of domestic hot tea consumption, green
tea is experiencing the highest growth,
with speciality/niche ingredients such
as rooibos, matcha and white tea of
increasing interest, particularly to the
Millennial generation.
Finlays new facility is going for
LEED Gold, with certification due
to arrive in 2018. The R&D space
houses new technologies and product
developments, created in collaboration
with our customers, putting us
at the forefront of future beverage
advancement. That, combined with our
deep-rooted history and expertise in tea
and natural ingredients and our unique
integrated supply chain, will continue
to position us as thought leaders in
the marketplace.
Finlays Cold Storage (FCS) has
commissioned Sri Lanka’s largest roof
mounted solar power plant system
generating capacity of 1,000 kWp in
February 2017. The solar plant is a
grid tie system which is expected to
generate 27% of the cold storage’s
current electricity requirement and
save an estimated 900 tonnes of
Carbon per annum.
As part of obtaining LEED certification
FCS has carried out several
improvements in terms of saving
electricity and water. FCS is expecting
to be certified as a LEED Gold facility
by May 2018. We have converted all the
florescent, halogen lamps to LED in the
office, refrigeration plant and other
utility areas and are expecting an
estimated saving of 47,880 kWh /year.
All water fixtures are replaced and
the new water efficient fixtures are
compliance with LEED standard and
estimated water saving
is 1.9 million litres/year.
LEED gold certifications were obtainable
due to the contribution funding
acquired from the Swire Sustainable
Development fund.
Environmental performance
At Finlays we are continuously looking
for ways to reduce our environmental
footprints in all regions of operation,
while growing our business, sustainably.
Our vision is one of a business that is
environmentally sustainable, socially
just and financially viable. We are firmly
committed to sustainability throughout
our operations and we have placed
this belief at the forefront of our
philosophy; our environmental policy
reflects this. We aim to have ‘zero net
impact’ on the environment and we
are committed to making a positive
contribution to environmental recovery
and resilience.
Applying continual improvement
targets for the reduction of our
greenhouse gas (GHG), energy, water
and waste impacts across our operating
regions from production, manufacturing
to our trades and commercial
operations are significant in reducing
our environmental footprints and
positive contributions.
Public pressure and regulations
have tightened around the world,
and stronger action to tackle climate
change is being driven by governments,
legislation and certification bodies.
This is combined with extreme climatic
conditions being experienced, globally.
The increase of extreme weather events,
have inevitable business implications
for our work force and operations.
We are seeing variations impacting most
of our operating and sourcing regions,
globally in some way or other. Flash
flooding after heavy rains following
long periods of drought have impacted
our operations, employees and
communities in these regions. Erratic,
changes to rainfall patterns impact
harvesting, planting and maintaining
our tea bushes and are impacting the
ability to effectively dry coffee beans
throughout global supply.
These occurrences are informing
behaviour change and leading to new
ways of producing and operating;
increased groundcover will aid soil
health and stability and shelters and
solar driers to aid the drying of beans.
To support our vision to grow
our business whilst decoupling
our environmental impact from our
growth, our operations take annual
steps to monitor, report and reduce
our footprints to ensure we operate
as efficiently as possible and working
towards functioning as low impact
operations, globally.
What is LEED?
Leadership in Energy and Environmental Design (LEED) is an internationally
recognised green building certification system, which verifies that
a building was designed and built with efficiency systems in place
regarding energy savings, water efficiency, CO2
emissions reduction,
improved indoor environmental quality, and stewardship of resources
and sensitivity to their impacts. LEED-certified projects are assigned one
of four levels of certification to acknowledge the degree of achievement.
The number of points that your project earns determines the level
of LEED certification that you will receive; LEED Certified™;
LEED Silver®; LEED Gold®; LEED Platinum®.

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27
Water is a vital resource in all landscapes,
including where Finlays share the landscape
with important water ecosystems. In Kenya
this is the Mau forest, Sri Lanka we have
property adjacent to world heritage sites;
Sinharaja Forest Reserve, which impact vastly
on the regions water quantity and quality.
In Argentina our farms lie within the same
region as Iguazu falls, UNESCO World
Heritage site. We know the importance of
water; our tea crops are rainfed and are
highly influenced by any changes in rainfall
and climatic variations.
This is why we are doing what we can to
preserve any natural forests, resources
and ecosystems where we have influence
and are directly able.
In 2017 we have experienced the impacts of
drought within our regions of operation and
sourcing; Kenya, Sri Lanka and South Africa.
The impacts of the droughts are reflected
in the water consumption patterns,
seeing increased amounts of water use
to compensate for the extreme variances
in rainfall and temperature variances,
since 2013.
Within all regions of operations Finlays
endeavours to follow the waste hierarchy
principles to; reduce, recycle, reuse
and recover
The “waste hierarchy” ranks waste
management options according to what is
best for the environment. It gives top priority
to avoiding waste generation all together.
When waste is created, it gives priority to the
4 R’s; for reduce, re-use, then recycling, then
recovery, and lastly the least desirable waste
process is disposal (e.g. landfill, incineration
without energy capture)
Our Waste sent to landfill has reduced by
57% since 2013, through applying the concept
of the waste hierarchy and circle of life
theory. Seeing more than 88% of our waste
being recovered this year compared to waste
recovered in 2013. We have recovered waste
through composting, converting to energy;
biogas and coffee logs.
Our operations in Pontefract, Yorkshire
remains zero waste to landfill for the fourth
consecutive year.
The United Nations (UN) Climate Neutral
Now campaign states that the world must
become carbon neutral to ensure that global
temperature rise does not exceed 2°C in order
to avoid the most dangerous impacts of
manmade climate change.
Finlays Colombo carried out its first carbon
footprint assessment. The division aims to
work towards a carbon neutral status by
2020 and has developed an action plan to
be implemented over a three-year period.
To aid the reduction of carbon occurring
in our atmosphere Finlays provided over
45,000 seedlings in 2017 and undertook
engagement session with communities
regarding the importance of indigenous trees.
We have installed 760 improved cookstoves
in homes, in Kenya. Saving aproximately 1500
tonnes of carbon and increasing household
health benefits, reducing the amount of
fuel required by approximately 56%, for
employees to cook and warm households.
The project aims to float carbon credits for
sale on the volunteer market in 2018.
(GRI: 302-3, 302-4, 303-1, 303-3)
Water
Water is critical for all biodiversity, the planet and all its inhabitants.
The conservation and efficient use of water is a key part of good
agricultural practices.
Total water use
Blue water
Green water
Recycled and reused
Water use intensity**
1,917,493
1,326,750
447,301
143,442
0.0077
Water use (m3
) 2013 2016 2017*
2,308,798
1,921,603
328,269
58,926
0.0085
4,675,482
3,633,204
291,302
750,976
0.0166
23%
50%
-35%
-50%
20%
Energy
Reducing reliance on non-renewal energy and the emissions associated
has been a requirement since our first sustainability report.
Top 3
performers
since 2013
(Total energy)
Finlays
Flowers ..................... -50%
Tea Estates
Kenya ........................ -23%
Finlays
Colombo ................... -22%
Waste
Reducing waste and thinking about how the waste we generate
can be reused within our businesses.
Total carbon use
Total Scope 1 Emissions
Intensity**
32,872
15,467
16,645
9,160
0.00013
Carbon use (t CO2
e) 2013 2016 2017* 2017 v 2013
(excluding Damin)
42,893
13,130
18,571
11,192
0.00016
82,374
11,999
59,424
10,951
0.00029
24%
-23%
8%
19%
21%
Over 87% of all our energy consumed in
2017 was sourced from renewable resources,
with 82% of our energy being produced
on our own sites in the form of renewable
sources such as solar, biogas, hydro
and biomass.
In 2017 Finlays generated 4600GJs of solar
energy in Sri Lanka, with 700GJs being
exported to the grid, reducing carbon
emissions in the area and positively
impacting the local community indirectly.
As part of our medium-term targets
from 2013 to 2017, our regions have been
implementing energy saving initiatives such
as education sessions, energy audits and
retrofits, installing LEDs, light-holes and
running diagnostics on operations to ensure
our operations are running efficiently.
We have been working towards obtaining
two LEED gold certificates within 2017 to
further ensure our operations are efficient.
Since 2013 our energy has been reduced
overall by 2%.
Carbon
Companies are now facing mounting pressure from consumers,
shareholders, governments (both nationally and international)
and staff to effectively address climate risk.
(GRI: 306-2, 305-1, 305-3, 305-4)
Top 3
performers
since 2013
(Total water)
Finlays
Colombo ................... -24%
Tea Estates
Sri Lanka .................. -11%
Finlays
Beverages .................... -2%
Top 3
performers
since 2013
(Waste to landfill)
Finlays
Beverages ............... -100%
Finlays Extracts
& Ingredients ........... -59%
Tea Estates
Sri Lanka .................. -52%
Top 3
performers
since 2013
(Scope 1 & Scope 2)
Finlays
Flowers ..................... -59%
Finlays
Colombo ................... -18%
Tea Estates
Sri Lanka .................. -12%
Total energy
Direct
Direct non-renewable
Direct renewable
Indirect
Indirect non-renewable
Indirect renewable
Intensity**
2,002,826
1,862,277
217,818
1,644,459
140,548
54,886
85,662
0.0080
Energy use (GJ) 2013 2016 2017*
2,131,535
1,972,112
184,016
1,788,096
159,421
82,260
77,161
0.0078
2,796,198
2,440,386
171,195
2,269,191
355,809
246,073
109,736
0.0099
-2%
-3%
-22%
0%
10%
57%
-20%
-4%
* Includes Damin data
** Total resource use / Production volumes in tonnes.
Total waste
Total landfill
Total waste recovered
Total waste recycled
Total waste reused
Total production (tonnage)
Intensity**
37,737,348
18,990,972
16,988,630
1,160,427
597,319
249,153,089
0.15
Waste use (tonnes) 2013 2016 2017*
45,264,265
12,346,456
30,744,328
1,645,929
527,552
273,140,323
0.17
87,016,445
9,049,185
36,636,956
6,173,038
35,157,266
281,966,191
0.31
12%
-57%
88%
38%
-33%
2%
9%
2017 v 2013
(excluding Damin)
2017 v 2013
(excluding Damin)
2017 v 2013
(excluding Damin)

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29
Empowered
Communities
Create a positive,
sustainable impact on
communities.
Our licence to operate
is dependent on the
communities around us,
socially, economically and
environmentally. It is
fundamental that communities
are empowered to improve
their own circumstances,
rather than relying long term
on outside agencies.
USA
Finlays USA, Inc. formed a committee
to initiate a volunteerism program in
2016, focusing on the topic of hunger.
Our monthly food bank collections
in 2017 have seen our employees
contribute over 800 pounds (363kgs)
of food, which we deliver twice a month.
In addition to food donation, the
committee also gives their time to
volunteer at a soup kitchen. In our
Rhode Island facility, twenty-eight
colleagues volunteer monthly in groups
of 3/4 to prepare and serve lunch
to members of the local community,
serving an average of three-hundred
people each time. Members of our New
Jersey office volunteer at a local church,
feeding 25-30 people each Saturday.
Although the programmess in each
location are different, our team
members are rewarded with the same
feeling of accomplishment and
warmness that comes from providing a
valued contribution to the community.
In addition to our volunteerism
programmes, we have a “Dress Down
for Charity” appeal during which our
employees choose a different charity
to receive donations each week.
We collected US$7043 in 2017 and
donated the money to 27 different
charities, including our ‘Charity Starts
At Home’ programme.
‘Charity Starts At Home’ is
an internal initiative, funded
by our USA employees through
donating funds in ‘Dress Down
for Charity’ the funds collected
were matched by the company.
This programme helps employees
who are having a temporary financial
struggle by providing gift cards for
a local market to help purchase food.
Colombo
Next year marks 125 years of Finlays
operations in Sri Lanka. Throughout
the years Finlays has been committed to
contributing towards the empowerment
of the Sri Lankan community primarily
in areas of education and improving
health care facilities. We conduct an
English language teaching programme
for children of lower income. This
programme has been in operation for
the past eight years. Many children in
the vicinity have benefited by improving
their spoken English skills.
The Company provides stationery
items to those in need and in 2017, 256
students of the Haldummulla Primary
school were provided with their annual
stationery requirement. Further to
this, Finlays Colombo set up a fully
furnished computer unit for the
Baranankattuwa K.V. school situated
in Puttalam with 342 students from
Grades 1-10.
In April 2017 we completed the project
on “school based interventions to
control Dengue vector in the Gampaha
district”. This was in collaboration with
the University of Kelaniya, Sri Lanka.
This project consisted of several
awareness programmes and
implementation of prevention methods
to control mosquito breeding sites
within and surrounding the schools.
The programme was implemented
in 30 schools.
Colombo completed its expansion of
the Neonatal unit of the Colombo North
Teaching Hospital at Ragama. The new
expansion done by Finlays Colombo
now provides four separate rooms for
the unit with individual access to the
main unit, easing patient congestion.
CommuniTEA in Kenya
Within our tea operations in Kenya,
JFK houses employees and their
family members, amounting to
approximately 20,000 people. In 2017
we conducted several activities that
were focused on capacity building
and improving service delivery to
our employees. To achieve this, our
community and social workers carry
out a number of key initiatives
throughout the years.
This included running capacity building
and awareness programmes for all
employees, providing information
and discussions on preventing gender
based violence (GBV). We also looked to
increase awareness of human rights and
educate employees on life skills that
would enable them to change behaviour
and impart positive living values.
The campaign’s aim was to increase
community awareness of the availability
of services and support for dealing with
GBV. We held road shows and talks
during international women’s day (IWD)
and 16 days of activism against gender
based violence.
Two events were run on the Day of
the African Child (June), in schools
and villages, focusing on increasing
awareness on child protection and
increasing the safety of children in
our community. School campaigns
were run to educate our children on
child protection, sexual awareness
and HIV. Nutritional assessment for all
pre-school children is also carried out
to children below the age of 5 years.
Our Kitchen Garden Programme
continues to prove beneficial, providing
skills development and tools to grow
a variety of nutritive local vegetables
and fruit, including fruit trees for
shade. Employees are also taught
how to cook the vegetables while
maintaining all its nutrients. Through
this the employees can supplement
the household food basket.

30
31
Sustainable
Supply
Finlays will be 100%
traceable, transparent
supply to internationally
accepted standards on
tea and coffee by 2022.
Customers want to understand
where the raw materials in their
products have come from, who
has supplied them, and the
ethical and environmental
standards under which they
have been produced.
Supply chains are also under
increased scrutiny from non-
governmental organisations,
government and the media.
With every person now having
a camera in their pocket and
access to a worldwide audience,
scrutiny of everything we do is
the click of a button away.
Finlays provides direct employment for
approximately 25,000 people globally,
having an impact on local economies
within our regions of employment.
We strive to distribute economic value
generated by each country’s resources,
fairly. By having equitable distribution,
we help to eradicate poverty, reduce
social inequality and raise standards
of living.
Our economic contribution includes:
direct employment, buying from local,
regional and global suppliers, alongside
the distribution and retailing of our
products. Whilst economic growth
and development are key performance
indicators within our business,
our Group’s operations have clear
sustainability objectives, echoing our
commitment to creating a sustainable
future. Working with communities to
ensure skills development to benefit
communities as well as ensure
environmental protection.
In the year ending 31 December 2017,
Finlays generated $546 million in
economic value. The majority of this
value was distributed through the
course of our business to our
employees, shareholders, suppliers
and governments, as well as to local
communities through our sustainability
activities. In 2017, the economic value
retained was $33 million and Finlays
contributed US$2million to community
investments.
Finlays work collaboratively with
smallholders in many markets and
various projects with farmers. We help
provide them with an income so they
can support their dependents and
contribute to the development of the
communities in which they live and
where we operate.
In many cases, Finlays assists farmers
with marketing activity, logistical
support and essential farming expertise
and good agricultural practice.
Direct economic value generated
Revenues
Revenues plus external interest, royalty income and proceeds from sale of assets
$546m
Economic value distributed
Operating
costs
Costs of
materials,
services and
facilities
$380m
Employee
wages and
benefits
Cost of
employees’
salaries and
benefits
$99m
Payments to
providers of
capital
All financial
payments
made to the
providers of the
organisations
capital
$9m
Payments to
government
Tax paid
including
remittance taxes
and excise taxes
$23m
Community
investments
Voluntary
contributions
and investment
of funds in the
broader
community
$2m
Economic value retained $33m
*excluded from these figures are Aspen and Damin are included at 41% proportion
Economic ContributionCommuniTEA in Kenya (cont.)
The Finlays medical department
conducts primary health care programs
that aim at preventing disease.
We have the wellness programs that
are conducted quarterly within the
dispensaries. Employees normally come
for general check-up i.e. monitoring
their sugar levels, blood pressure,
family planning services and receive
basic health information.
To ensure that female employees
continue to care for their young ones
after resuming work from maternity
leave, JFK has established creches where
children are cared for by caregivers.
Mothers can take nursing breaks to
breastfeed and bond with their children.
Finlays meets the cost of maintaining
the facility and paying the caregivers
who look after the children.
Through the Finlays Charitable trust
initiative, the local communities
surrounding our area of operation
have also been supported. Last year we
constructed 4 science laboratories for
4 secondary schools, 2 libraries for
2 secondary schools, 2 classrooms for
a secondary school and a multipurpose
hall for a secondary school. We also
constructed a maternity wing for
1 of our local dispensaries.
Essential Oils
This innovative project plans to develop
alternative livelihoods through the
introduction of crop diversification
with smallholders and co-operatives
in Kenya. The pilot trial is a 3-year trial
exploring new sustainable trade supply
chain using UK Agritech strategy with
Innovate UK. Innovate UK, provide
public funding to support business
led innovation in the agriculture and
food sector, for over 6 years.
Our essential oils project is sustainably
assessing growing opportunities and
market development for the production
of a range of essential oil crops, for two
smallholder farmer groups in Kenya.
This project is part funded by Innovate
UK and is a partnership with Dudutech
Kenya, University of Lincoln, University
of Reading and Forum for the future.
The objective is to support more
resilient livelihoods and aims to develop
a variety of crops fit for market which
could enable smallholders’ production
(and income) portfolios to increase,
be more balanced, robust and develop
into long-term supply programmes.
The current oils that are being piloted
include Lavendum, Vetiver, Geranium,
Rosemary, Lemon and Eucalyptus.
Economic value generated by region
Economic evaluations and reporting are reported using US dollars
since April 2017*.
200
180
160
140
120
100
80
60
40
20
0
Africa Asia &
Middle-East
North & South
America
UK
USD(millions)

32
Finlays Sustainability Report 2017 Governance
33
Main Board
The Main Board, which is tasked with
organisational oversight and setting
strategy, comprises three Executive
Directors responsible for various
aspects of the business, two shareholder
nominated Non-Executive Directors,
one of whom is the Chairman, and three
Independent Non-Executive Directors.
Philippe de Gentile-Williams
Non-Executive Director and Chairman
Guy Chambers
Executive Director –
Group Managing Director
Julian Rutherford
Group Finance Director
Julian Davies
Director Corporate Affairs
James Hughes-Hallett
Non-Executive Director
Stuart Strathdee
Independent Non-Executive Director
David Johnston
Christiane Kuehne
The Chairman of the Board is Philippe
de Gentile-Williams who is a Group Staff
Director at John Swire and Sons Limited,
the Company’s ultimate parent
company.
Divisional Boards
Each Business region is overseen by
either a statutory or a management
board comprising senior executives
and representatives of the Main Board.
Sri Lanka
In Sri Lanka, the Group has two publicly
listed companies in which it has
controlling stakes. The Boards of
these companies, in addition to the
representation referred to above, also
include a number of Independent
Non-Executive Directors. They are fully
compliant with corporate governance
regulations applicable in Sri Lanka.
Internal audit
The Group has an extensive Internal
Audit function which is monitored by
a series of committees that report to
a Group Audit Committee comprising
of two Independent Non-Executive
Directors and one representative
of John Swire and Sons Limited.
In addition, the Group Managing
Director, Group Finance Director and
Director Corporate Affairs also attend
the Group Audit Committee meetings
together with the Group Internal
Auditor and, as required, a
representative from the external
auditors, KPMG LLP.
Other committees
A number of functional committees are
in place at both Group and Divisional
level. These cover a range of issues
including Health and Safety, Sustainable
Development, and Human Resources.
Policies and procedures
A series of policies and procedures
have been developed with the aim of
making all employees fully aware of
their responsibility for ensuring that
the Group conducts its business in
accordance with applicable laws and
regulations. These include a Group
Corporate Code of Conduct and a
Whistleblowing Policy designed to
ensure that good governance is across
the Group. A series of guidance notes
have been issued to employees on such
matters as competition compliance,
the UK Bribery Act, and the Modern
Slavery Act. All relevant staff have
been given appropriate training on
these and other issues.
Each business region maintains a Risk
Register which is updated at least twice
per annum and the main board formally
reviews the consolidated Group Risk
Register annually.
Employee forums
Throughout the Group our employees
have opted to use a number of different
options to engage in this dialogue.
This includes Trade Union recognition
and also democratically elected worker
forums. A variety of other internal
communications vehicles are also
used to facilitate interaction between
management and employees, such as
employee feedback survey, conferences,
workshops, magazines and newsletters.
Operating companies
– Argente SA
– Aspen Enterprises, Ltd
– Aspen Management Company, LLC
– Casa Fuentes SACIFI
– Damin International Holding Limted (49.5%)
– Finlay Airline Agencies (Pvt) Limited
– Finlay Beverages Limited
– Finlay Cold Storage (Pvt) Limited
– Finlay Extracts and Ingredients UK Limited
– Finlay Extracts and Ingredients USA, Inc.
– Finlay Hull Limited
– Finlay Instant Teas (Pvt) Limited
– Finlay Insurance (Brokers) (Pvt) Limited
– Finlay Properties (Pvt) Limited
– Finlay Rentokil (Ceylon) (Pvt) Limited
– Finlay Tea Solutions (Hong Kong) Limited
– Finlay Tea Solutions Colombo (Pvt) Ltd
– Finlay Tea Solutions UK Limited
– Finlay Teas (Pvt) Limited
– Finlay Vietnam Limited
– Finlays Colombo Limited (99.8%)
– Finlays Linehaul Express (Pvt) Limited (50%)
– Finlays Maldives (Pvt) Limited
– Hapugastenne Plantations PLC (90%)
– James Finlay (Blantyre) Limited
– James Finlay (Guizhou) Tea Co., Ltd.
– James Finlay (Kenya) Limited
– James Finlay (ME) DMCC
– James Finlay International Holdings
Limited
– James Finlay International Inc
– James Finlay Limited
– James Finlay Mombasa Limited
– James Finlay Plantation Holdings
(Lanka) Limited
– Newburgh Green Teas (Pvt) Limited (54%)
– Udapussellawa Plantations PLC (91.8%)
– Xiamen James Finlay Trading Co. Limited
Legal form and governance
Finlays was founded in Scotland in 1750. James Finlay and Co. was a partnership until 1909 when a
private company was incorporated as James Finlay and Company Limited before being floated on the
Glasgow Stock Exchange in 1924. The Company was re-registered as a public limited company, and
renamed James Finlay PLC in 1981. The Company was acquired by John Swire and Sons Limited in
2000 when it was renamed James Finlay Limited, the Company is now a subsidiary of Finlay Group
Limited which in turn is a wholly-owned subsidiary of John Swire and Sons Limited.
To demonstrate transparency in our
sourcing practices, we commit to
providing responsible and traceable
supply of all raw materials and
influencing our supply chains
through sharing best practice.
To be transparent, a business
demonstrates behaviour that is honest
and open about their sustainability and
sourcing practices, goals and progress.
Finlays believe we should move away
from ‘having nothing to hide’, to
proactively showing, sharing and
proving we have nothing to hide.
Traceability is the ability to track
any material or product through all
stages of production, processing
and distribution. It is important for
product integrity and food safety.
Sustainable Sourcing
In 2017, we began working towards
establishing a Finlays Sustainable
Sourcing Policy to ensure all our
existing and new suppliers understand
the standards we expect them to uphold
and comply with. Our policy covers
areas of existing and new legislation
such as UK Modern Slavery Act as well
as human rights in the workplace and
environmental conservation and
management acts.
To inform best practice for the
suppliers in our supply chain, Finlays
demonstrates assurance of responsible
practices by auditing and certifying our
farms and producer groups as well as
our blending, trading and packing
facilities. All our estates are 100%
Rainforest Alliance Certified™ –
this ensures our good practices are
independently verified and marketable.
(GRI: 102-5, 102-7, 102-13, 102-16, 102-18, 102-56)
Plans for 2018
– Issue our Finlays Sustainable
Sourcing Policy to all existing
suppliers work with them
towards compliance.
– Assess and certify more of
our manufacturing facilities,
focussing on Rainforest
Alliance Chain of Custody
certification and the Ethical
Trade Initiative Base Code.
– Standardise our traceability
practices and explore
options for innovative
solutions to traceability.
Finlays recognises that modern
slavery as an issue has become
increasingly visible, particularly
in the UK.
As a business with both a history
and an ethical framework of good
employment practice, Finlays takes
its commitments under the Modern
Slavery Act very seriously and many
of its existing initiatives, policies and
procedures go beyond the minimum
standards set out in the Act.
We have put in place measures
to prevent, detect and manage
incidences of modern slavery,
and engaged with a number of
stakeholders including the Ethical
Trading Initiative (of which it is a
Group-wide member) and Stronger
Together: an organisation focused on
raising awareness of and providing
training for the prevention
of modern slavery.
We have initiated a number of steps
across the Group to ensure we go
beyond mere compliance, including:
risk assessments across our regions,
develop informed actions plans,
conduct training and develop and
communicate best practice and
Inclusion of modern slavery in
our internal audit risk cycle.
Modern Slavery Statement
(GRI: 102-9; 102-12; 102-13)
Producer technical assistance
As part of our commitment to ensuring
responsible and traceable supply of
products to our customers, we encourage
smaller producers who supply leaf to
our factories in Kenya and Argentina
to work towards Rainforest Alliance
certification. We understand the
challenges this brings them, especially
with regards to improving their
agricultural practices and safeguarding
themselves and their land from misuse
of agrochemicals such as herbicides
and fertilisers.
In Argentina, we support a number
of small producers covering over 900
hectares of land with Rainforest Alliance
group certification. We provide technical
assistance to these producers throughout
the year to ensure they meet the required
standards of agricultural production
and are continually improving. Technical
Assistance is provided by our team of
expert agronomists and includes training
on safe use and storage of agrochemicals
as well as good document management.
We also supply producers with
the agrochemicals they require to
ensure they receive genuine and
well-priced inputs.

34
Finlays Sustainability Report 2017 Swire Group
35
With Swire’s 200th anniversary on the
horizon, the time was right to set out
to determine a new level of ambition
for the Group’s environmental
sustainability efforts. This is an
opportune moment to future-proof
the Swire Group for the next 200 years,
and more.
The challenges the Swire Group face
today range from resource scarcity
to climate change. How we choose to
respond to these challenges will define
the future of Swire. In response,
SwireTHRIVE was co-created by the
Swire Group Sustainability Committee
(SGSC), comprising the Sustainable
Development Office (SDO) and
representatives from all major
operating companies.
SwireTHRIVE has been endorsed by
Swire Pacific and John Swire & Sons’
Boards and focuses on environmental
sustainability because the success of
people, communities, and Swire itself
depends on a thriving natural
environment. The key issue areas of
SwireTHRIVE are Carbon, Waste, Water,
Sustainable Materials, Biodiversity,
and Climate Resilience.
“As the Group enters its third
century... new challenges will
inevitably arise: alongside an
abiding focus on nurturing and
developing their own staff, on
practical innovation and of
course on commercial viability,
our existing businesses must
adapt to a world in which,
quite rightly, everything that
they do will be judged by its
impact upon the environment
and the community”
Barnaby Swire
Chairman, John Swire & Son
John Swire and Sons’ aim is to create
long term value for its shareholders.
Achieving this depends on the
sustainable development of its
businesses and the communities
in which it operates. The executive
management of each company in which
John Swire and Sons has a controlling
interest should apply this policy in a
way which is relevant to their business.
Associated and joint venture companies
are encouraged to follow this policy,
as are our suppliers.
SwireTHRIVE SDGs and Strategy
The Sustainable Development Goals (SDGs), otherwise known as the Global Goals,
are a global call to action to end poverty, protect the planet and ensure that all
people enjoy peace and prosperity.
Building on from the Millennium Development Goals, and including new areas such as climate
change, economic inequality, innovation, sustainable consumption, peace and justice, among other
priorities. The goals are interconnected and company and organisation involvement is increasing.
The table below shows how the SDGs, GRI, SwireTHRIVE and Finlays Sustainability strategy align.
Swire has a long-standing commitment to ethical and responsible behaviour,
sustainable growth, long-term focus, and shareholder value, which are all
underpinned by strong values. Swire have always looked ahead and taken the right
decisions for the long term and today. This approach is more relevant than ever.
(GRI: 102-44)
SwireTHRIVE strategy
framework supports the
Group-wide Sustainable
Development Policy
In its operations, aim to:
– Reduce its carbon footprint
by adopting industry best
practices to improve energy
efficiency, and by increasing
the use of renewable energy.
– Turn today’s waste into
a resource for tomorrow,
contributing to the creation
of a circular economy, where
waste materials are no longer
simply thrown away, but are
retained and re-used as a
future resource.
– Use water responsibly and
sustainably and to protect its
watersheds.
– Be a good steward of the
natural resources and
biodiversity under its influence
and to identify and manage
appropriately the potential
adverse impact of its
operations on the environment.
– Safeguard the health and safety
of its employees and others
with whom it interacts, with
the ultimate aim of causing
zero harm.
– Source materials responsibly
and sustainably, including
ensuring that its suppliers
meet, and preferably exceed,
the sustainability standards in
its supplier guiding principles.
– Bring value to the communities
in which it operates and respect
their culture and heritage.
– Encourage its staff to engage
actively in sustainable
development matters at
work and in the community.
– Monitor the company’s
performance and report
regularly.
JS&S Sustainable
Development Policy
Industry leadership:
To be leaders in sustainable
development in the industries
in which it operates.
Finlays Sustainability
Objectives
Swire Thrive /
Swire Policy
Sustainable Development
Goals (SDG)
GRI
Disclosure
Protect and enhance biodiversity
Build lasting climatic resilience
Protect and enhance biodiversity
Use and manage water responsibly
Build lasting climatic reilience
Pursue long-term goal of decarbonisation
Use and manage water responsibly
Turn todays waste into tomorrow’s resource
Swire Development Policy
Swire CSR Policy
Turn todays waste into tomorrow’s resource
Source materials sustainably
304-1,
304-3,
304-4
403-1,
403-2
302-1, 302-3,
302-4, 303-1,
303-3, 305-1,
305-2, 305-3,
305-4, 305-5,
306-1, 306-2
102-7
102-9
102-11

Finlays is committed to creating a sustainable future.
It’s the only future we have.
Swire House
59 Buckingham Gate
London
SW1E 6AJ
Email: sustainability@finlays.net
www.finlays.net

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