Signatory Name: Hasbro Australia Limited

The question numbers in this report refer to the numbers in the report template. Not all questions are displayed in this report. Status: Completed The content in this APC Annual Report is hereby endorsed by the Chief Executive Officer, or equivalent officer of the organisation. Yes 5 . Industry sector (please select 1 only): Brand Owner / Wholesaler / Retailer Packaging Manufacturer Waste Management Other - Commercial Organisation Community Group Industry Association Government Raw Material Supplier Other: 6 . Industry type (please select 1 only): Food & Beverage Pharmaceutical / Personal Care / Medical Hardware Homewares Communications / Electronics Clothing / Footwear / Fashion Chemicals / Agriculture Fuel Large Retailer Tobacco Shipping Company Airline Other: Toys 7 . Please indicate your organisation's reporting period: Financial Year: 1 July 2011 30 June 2012 Calendar Year: 1 January 2012 31 December 2012

Goal 1: Design KPI 1: % of signatories with documented policies and procedures for evaluating and procuring packaging using the SPGs or equivalent. 8 . Does your company have documented policies and procedures for evaluating and procuring packaging using the SPG's or equivalent? Yes No

9 . Of the types of packaging existing at the beginning of the reporting period, what percentage had been reviewed using the Sustainable Packaging Guidelines (SPG) by the end of the reporting period? 8 %

10 . Have any new types of packaging been introduced during the reporting period? Yes No

11 . If yes, of the new types of packaging introduced during the reporting period, what percentage have been reviewed using the Sustainable Packaging Guidelines (SPG) by the end of the reporting 100 %

12 . Please indicate your progress this year towards achieving your annual targets and milestones for KPI 1 Target: What were your annual targets for the reporting period? Actual: What did you achieve?

1.

1. Implementing SPG for design or procurement of packaging. Target -To assess environmental benefits packaging score of all new packaging designed 2. Increase use of paper ties and eliminate use of acetate covered wire ties in packaging. Target - 100% elimination of wire ties in packaging 3. Investigate the possibility to increase use of low VOC inks (<3% VOC's) and phase out the use of metallic,fluorescent and solvent based inks. Target complete research for use of VOC inks and provide recommendations to print production team 4. Research the opportunities for use of Recycling Compatible Adhesives (RCA's) in order to enhance the overall recyclability of Hasbro's packaging systems. Target - complete research for use of RCA's and provide recommendations to packaging engineers.

A packaging scorecard has been developed based on these environmental factors: number of packaging layers, GHG, recyclability of packaging materials, selling unit efficiency,master carton level cube efficiency and repurposability. The factors and weightings have been adjusted for Hasbro's internal packaging scorecard. We are set to evaluate our next wave of Prime Time and Key Driver items. We have also set a goal to include this scoring into a new CAD software that we are purchasing. This semiautomation will allow more items to be scored, and will allow us to track improvements. 2011 prime time and key drivers were all measured using the scorecard to test it and to create a baseline for internal evaluation. We are in the process of re-evauating the environmental factors scored and are adjusting the weightings to more accurately reflect the factors that are important in the Toy Industry and to differentiate scores better for comparison purposes Hasbro has achieved 100% elimination of wire ties in packaging, replacing them with more environmentally sustainable ties made from paper rattan or paper/bamboo mix made solely from a renewable resource. Hasbro's packaging engineers and graphic designers have been advised to begin phasing out foil-paper laminates and metallic and fluorescent inks. these design elements are now used in only a small percentage of Hasbro items with the goal of eliminating the use by the end of 2014. Hasbro packaging development is currently investigating the possibility of increasing the use of VOC inks Hasbro packaging development is currently investigating the use of RCA's. Hasbro began exploration of RCA's and low VOC inks in 2012, and will continue in 2013.

13 . Describe any constraints or opportunities that affected performance under this KPI Hasbro's packaging engineers consistently design for the environment by using the appropriate amount of packaging materials to meet logistical and marketing needs. In 2012, we investigated ways to minimize the use of tape throughout our retail packaging and shippers. We are planning to implement a Packaging Design Standard with our vendors regarding the utilization of lock-tabs on retail packages that will allow for less tape usage. For our shippers, we have set a Packaging Design Standard with our vendors to use single-taping on each opening rather than H-taping on items that are able to pass distribution testing requirements with the reduced tape usage. Additionally, in 2012 Hasbro announced a commitment to improve the product-to-packaging ratio of several global brands. Over time, this will reduce the amount of 'air' Hasbro ships, as well as reduce the amount of packaging materials used. Hasbro has worked to enhance the recyclability of packaging materials by establishing a goal to eliminate PVC as a packaging material for all new core toy and game products and replacing with PET. Additionally, Hasbro derives at least 75 percent of paper and board packaging from recycled material, or from suppliers that practice sustainable forest management. By 2015, Hasbro plans to increase that target to 90 percent usage of these materials and sources for all its paperboard packaging and in-box game content. Hasbro worked in 2012 to meet the goal of replacing PVC packaging materials with PET. New packaging that is under development for 2013 uses PET for thermoformed blisters and window sheeting. It is also marked with the SPI resin code for PET, so consumers will know to recycle it, if their recycling facilities collect PET for recycling.

Goal 2: Recycling KPI 3: % signatories applying on-site recovery systems for used packaging. 14 . Do you have on-site recovery systems for recycling used packaging? Yes at all facilities/ sites Yes at some, but not all facilities/ sites No 15 . Please indicate your progress this year towards achieving your annual targets and milestones for KPI 3 Target: What were your annual targets for the reporting period? 1. n/a Actual: What did you achieve? n/a

16 . Describe any constraints or opportunities that affected performance under this KPI In 2012 38% of all waste was recycled which was a decrease of 4.2% however the total weight of all waste was reduced by 8.3 tonne 24.6% on 2011.

KPI 4: Signatories implement formal policy of buying packaging made from recycled products. 17 . Does your company have a formal policy of buying packaging made from recycled packaging? Yes 18 . Is this policy actively used? Yes No No

19 . Please indicate your progress this year towards achieving your annual targets and milestones for KPI 4 Target: What were your annual targets for the reporting period? 1. 1. To adopt Corporate policy for 85% recycled content when purchasing cardboard packaging and paper. 2. Increase Use of recycled content paper and board; for virgin paper sources increase usage of contents from sustainably managed forests. Target - at least 75% of paper and board packaging will be derived from recycled materials or sources that practice sustainable forest management by end 2011 to be increased to 90% by end of 2015. Actual: What did you achieve? All Australian cardboard packaging is purchased through Visy recycling. Still working towards getting recycled paper for all copying etc Hasbro has met the goal of 75% paper and board packaging being derived from recycled material or sources that practice sustainable forest management. We are currently working towards our 2015 goal of 90%

20 . Describe any constraints or opportunities that affected performance under this KPI Hasbro launched an aggressive paper sourcing policy in 2011, providing guidelines for suppliers regarding sustainable paper sourcing. Among the policy's key requirements is the expectation that suppliers will source paper with as much post-consumer recycled content as is practical and financially viable. As part of the implementation, we regularly audit our printers and paper mills, and a third party firm tests packaging on a monthly basis to ensure that our suppliers are in compliance. Early fiber testing indicates that our suppliers are adhering to the policy, and we expect similarly positive reports as we move forward.

Goal 3: Product Stewardship KPI 6: % signatories with formal processes to work collaboratively on packaging design and / or recycling. 21 . Does your company have formal processes in place for collaborating with other companies or organisations on improved packaging designs and/or recycling which aims to reduce or eliminate waste? Yes No

22 . Please indicate your progress this year towards achieving your annual targets and milestones for KPI 6 Target: What were your annual targets for the reporting period? 1. 1. In order to ensure that the Hasbro Packaging design teams are aware of the SPG Hasbro will investigate what the process and time line would be in order to write a design guidance document to be used by packaging engineers and designers. Target - Complete research of a process and outline a time line by end 2012 2. Work with suppliers where possible to increase recycled content of packaging through annual assessments. 3. In order to make sure that packaging suppliers are aligned with the SPG Hasbro will investigate the possibility of writing and distributing a guide outlining the SPG priorities and material specifications. Target Complete research and outline a time line by 2012 4. Start collecting sustainable forestry certifications from suppliers for virgin based fiber sources. Target - 75% of pper and board packaging will be derived from recycled materials or from sources that practice sustainable forest management by end 2011, to be increased to 90% by end 2015. Actual: What did you achieve? 1. The process and time line are still being investigated for development of a design guidance document for the packaging engineers and designers. This is still a goal, but has been pushed out to 2013. 2. Hasbro now procures paperboard packaging materials from its suppliers that have at least 75% recycled content or are derived from sources that practice sustainable forestry practices. 3. In 2012, Hasbro's US and Hong Kong packaging teams began the process of writing Package Design Standards, including the aforementioned shipper taping standard that has already been rolled out. These will ensure our vendors consistently use best practices for minimizing material usage. 4. We have obtained sustainable forestry certificates from our suppliers in the USA and Europe. In the Far east where possible we have obtained the FSC/PEFC certificates. where a supplier has not been certified we are performing 3rd party audits to confirm the recycled content

23 . Describe any constraints or opportunities that affected performance under this KPI Both of Hasbro's owned and operated factories have achieved certification from FSC,SFI and PEFC where available. Hasbro is a member of the Walmart Sustainable Value Network which helps us stay apprised of and participate in sustainability initiatives, especially as they relate to the toy industry.Hasbro also worked with Environmental Packaging International to develop a packaging scorecard to begin performing internal evaluations and comparisions of the sustainability of our packaging. Hasbro has begun using an internal packaging scorecard to evaluate the packaging for the majority of our products (known as our "prime time" and "key driver" items), which comprise a large portion of our volume. we are also looking at adjusting this tool's evaluation criteria to allow it to serve as a better comparative development tool. In 2012, Hasbro adjusted the criteria of the internal scorecard to put more focus on greenhouse gas emissions and product to package ratio - factors we determined to be most meaningful. This will now be used to score the next round of Prime Time and Key Driver items to serve as a baseline for future evaluation.

KPI 7: % signatories showing other Product Stewardship outcomes. 24 . Since the beginning of the reporting period, has your company had any other outcomes related to product stewardship? Yes No

If yes, please give examples of other product stewardship outcomes Hasbro has begun exploration of the possibility of using a life cycle management approach to evaluating packaging and product in terms of sustainability. In 2012 Hasbro began developing a life cycle Management process which incorporates Life Cycle Assessments to evaluate the environmental impacts and sustainability of our products and packaging.

25 . Please indicate your progress this year towards achieving your annual targets and milestones for KPI 7 Target: What were your annual targets for the reporting period? 1. As per targets in KPI 6 Actual: What did you achieve? Hasbro's owned and operated U.S factory which makes many of the board games and puzzles has received green certification for its printing processes by the nonprofit Sustainable Green Printing pa partnership (SGP) Hasbro is in the early stages of undertaking a Life cycle Management (LCM) approach to prioritise, manage and improve the performance of products or processes.this takes into consideration all stages of product life cycle from acquisition of raw materials through manufacture and distribution to end of product life. We are beginning to gather information, engage with external LCM experts and explore strategic collaborations across industries in an effort to develop a formal process on LCM.We are also evaluating the use of Life Cycle Assessment software to aid in the process.Outcomes from life cycle reviews can identify opportunities to reduce energy, greenhouse gas emissions, water use, chemical use and waste generation

26 . Describe any constraints or opportunities that affected performance under this KPI

KPI 8: Reductions in packaging items in the litter stream. 27 . Please indicate your progress this year towards achieving your annual targets and milestones for KPI 8 Target: What were your annual targets for the reporting period? 1. n/a Actual: What did you achieve? n/a

28 . Describe any constraints or opportunities that affected performance under this KPI Hasbro policy is to supply in full case lot which limits the amount of used cardboard; the Hasbro sites in Australia produce minimal amount of litter.

Your Experiences This section lets you share with us any achievements, good news stories and areas of difficulties in making progress against your plan and the Covenant goals and KPIs. 29 . Key achievements or good news stories The Hasbro Packaging design and procurement teams have achieved some great results through the year in replacing wire ties with rattan, obtaining Forestry certificates and using recycled board. Hasbro announced a new and comprehensive Paper and Forest Procurement Policy that further positioned Hasbro as an industry leader in the areas of environmental sustainability and sustainable forest management.and for operating more efficiently, more innovatively, and more competitively. Hasbros manufacturing facilities in East Longmeadow, Massachusetts and Waterford, Ireland have attained Forest Stewardship Council (FSC) certification from the governing body Scientific Certification Systems (SCS), demonstrating that our paper and paperboard materials come from responsibly managed forests. 30 . Areas of difficulties in making progress against your plan, Covenant goals or KPIs None at this time