Strategic Approach

By balancing economic, environmental and social impacts in our decision making and activities, we will create long-term shared value for our stakeholders and for Ball Corporation.

This is our sustainability vision which guides our future direction and purpose. It reflects our triple bottom line approach to sustainability and underlines our conviction that creating shared value for our stakeholders and for ourselves contributes to Ball becoming a more successful and sustainable enterprise, as stated in our company’s core purpose.

Ball has embraced sustainable practices for decades. We reduced the amount of materials used in our products; reduced energy consumption, emissions, water and waste; improved employee safety; supported recycling collection programs and created value for our shareholders.

We know that to continue to be successful, we must continue to do our part to protect our environment for future generations and be a responsible corporate citizen. Continuing to embed sustainable practices into our operations, setting goals and reaching them and reporting on our triple bottom line performance are long term commitments we are making for the continued success of our company. Responsible use of resources and caring for our employees and communities are meaningful sustainability practices that will also benefit our economic bottom line.

In addition to our sustainability vision, our sustainability approach consists of five priorities, each with a long term direction and short-term (2-3 year) goals. Our vision and long-term directions were crafted by our sustainability steering committee.

Sustainability encompasses a broad range of issues. We are focusing our efforts where we can have the greatest impact. The sustainability materiality process we initiated in 2009 was helpful in fine-tuning our approach to sustainability and reporting. The results of that analysis reflect the outcome of an online survey we conducted, insights from stakeholder meetings and internal assessments. Senior management and internal subject experts assessed the current or potential impact on Ball and external stakeholders provided insights into how significant they consider certain sustainability issues to be for Ball (see matrix below). While all issues are important to Ball, in the upper right corner of the table are the issues that this analysis identified as most significant, or "material," to Ball.

Our five sustainability priorities are:

Results of the 2009 Materiality Process
	Very Significant		Life Cycle Assessment	Collection & recycling Material use / lightweighting Innovations Energy efficiency Greenhouse gas emissions Safety
	Significant	Renewable energy Pollutant emissions Community Engagement Bribery and corruption Child labor Forced labor Freedom of association	Recycled content Product carbon footprints Hazardous substances Discrimination &    harassment	Bisphenol-A Talent management Human rights Business ethics Legal compliance Customer relationship     management Water & wastewater Waste
	Less Significant	Chemical use Spills and other incidents Supply chain management Wellness Employee volunteering Charitable donations Public policy Support of small &    minority businesses	Environmental management    systems Volatile organic compounds Economic contributions Diversity
		Less Significant	Significant	Very Significant
Current or Potential Impact on Ball

The packaging, energy and safety priorities came directly from this analysis. We added water and waste and talent management because our senior management considered them very significant for Ball. We will continue this process in the future to verify that we are focusing our efforts on the right issues.

To drive measurable progress within our operations and to hold ourselves accountable, each Ball division commits to two-year sustainability goals. Most facilities have established goals that are aggregated to a divisional goal. The divisional goals are then aggregated to a corporate goal.

In the cases where our goals are on a per 1,000 unit basis, we based the goals on the number of units of production in 2009 for our packaging divisions. Since Ball Aerospace manufactures large scale products in small quantities, their usage is aggregated to our corporate totals but no production units are considered. As a result, per 1,000 usages in our reporting are slightly higher than in reality due to the inclusion of Ball Aerospace’s energy, water and waste amounts.

To ensure we are on track to meeting our goals, progress is reviewed at least quarterly with executive management.

In our first sustainability report, published in June 2008, much of our social and environmental data was aggregated to a corporate total for the first time. The process of refining our sustainability data collection process and understanding our social and environmental impacts on a global scale was relatively new to us. Therefore, some of the goals from our first report were broadly focused on understanding how we could make a difference. Now that we are further along in our journey and have focused our efforts as a result of the sustainability materiality process, our future goals are more specific.

The following table shows our progress against all goals included in our previous sustainability report:

KEY :

Achieved :

On Plan :

Behind Plan :

Goal from 2007 Report	Status	Progress
Packaging
Complete conversion to lighter-weight beverage can lid in North America in 2009 and expand capacity of same lid in Europe.		Delayed to 2011 in North America, on track in Europe; newly acquired end plant in Florida will convert by 2011.
Use 25 percent recycled HDPE in our plastic pails or achieve 10 percent source reduction by substituting lower density polypropylene.		Pail business was sold in 2009.
Improve post-consumer collection and recycling of our packaging by working with our supply chain, communities and waste management systems.		Efforts continue in all regions.
Work with the metals industries to complete life cycle analyses of metal cans to understand the impacts in each stage of the life cycle, identifying oppor­tunities to improve those impacts and determine the carbon footprint of cans.
Environment
Certify final existing European plant to the ISO 14001 standard.
Implement an environmental management system based on ISO 14001 criteria in North American packaging and plants in China that are not already certified by 2010.
Reduce greenhouse gas emissions globally by 16 percent in 10 years, using 2002 as a baseline.		As of the end of 2009, we have achieved a 13 percent reduction.
Complete implementation of an energy management system in our European plants by 2010.
Formalize a plan to further reduce global volatile organic compounds emissions by 2010.
Reduce hazardous waste by 150,000 pounds in North American food and household products packaging plants in 2008 by installing more efficient coating technology.
Survey all North American packaging plants to determine the specific types and quantities of waste currently generated and, where possible, divert the waste streams into recycling streams.
Analyze water usage in our packaging facilities to determine water use inefficiencies.
Evaluate potential use of isopropyl alcohol from our aerospace business as a product in the printing industry by 2009 instead of disposing of it.
Social
Reduce total incident rate by a minimum of 15 percent globally in 2008.
Implement formalized health and safety management systems (OHSMS) by 2009.		Decision was made to establish a global OHSMS Ball standard using best practices from leading OHSMS standards. New goal is to complete implementation in 2011.
Implement behavior-based safety programs at new plants in Europe.		Plants did not become operational.
Increase diversity of the applicant pool by 20 percent in the U.S. by 2012.		Progress behind schedule to meet our goal. Additional steps and resources allocated to achieve the desired objectives.
Reduce turnover of female and minority employees by 20 percent by 2012.		Progress behind schedule to meet our goal. Additional steps and resources allocated to achieve the desired objectives.
Economic
Long-term earnings per share growth of 10 to 15 percent over time.
Generate returns in excess of our cost of capital in all of our businesses.		Corporation is on plan, although some businesses are below plan.
Increase Economic Value Added.
Continue to develop innovations in our processes and products as we work closely with customers and suppliers on shared opportunities.
Support small businesses and minority-owned businesses.
Advocate sensible public policy that protects our ability to produce and sell our products and services consistent with sustainability and good government.
Stakeholder
Build on our existing outreach efforts to develop a more systematic process for ongoing stakeholder engagement in order to work more efficiently and effectively with our stakeholders.
Use our sustainability efforts as a catalyst to work with our stakeholders to address issues of mutual interest.

Ball named a sustainability steering committee (SSC) comprised of corporate and operations senior executives to ensure that sustainability is fully aligned and integrated with our strategies, as well as balanced with our stakeholders’ expectations. In 2009, the SSC held a one day off-site meeting to craft our sustainability vision and long-term objectives, which provide a directional guide for our efforts.

The SSC approves our sustainability reporting and reviews progress on divisional and corporate sustainability goals. The chairman of the SSC reports progress, challenges and latest developments regularly to the Nominating/Corporate Governance Committee of our Board of Directors.

Ethics and Compliance
Our company culture has always been based on the highest level of ethical conduct. One of Ball’s core values and most important cultural assets is integrity. We will not compromise our integrity or risk damage to our reputation in return for financial gain or for any other reason. To ensure we act with integrity at all times, all employees are required to understand and follow, among other policies, Ball’s corporate compliance policies and the policies in the Ball business ethics booklet (PDF).

Annually, all managers and certain other employees are required to perform an electronic verification of compliance with all business conduct (including applicable laws and regulations), anti-corruption and conflict of interest policies. We have a hotline number for employees and external stakeholders to use to report policy violations on a confidential basis and in their own language. No retaliatory action will be tolerated against anyone who comes forward to raise genuine concerns about possible violations.

Ball’s Corporate Compliance Program, supported by a Corporate Compliance Committee, was established to assist operating and staff organizations in achieving compliance with all regulations. Key compliance issues involve employment practices; environmental protection; workplace safety; product quality; customer, supplier or government relations; use of confidential, proprietary, technical or business information; accurate reporting and record keeping; anti-competitive/unfair trade practices; foreign corrupt practices and anti-bribery avoidance; securities law compliance; export controls and trading restrictions; and other actions regulated by law or corporate policy.

The company has numerous other compliance and regulatory policies in place to ensure employees act in full accordance with appropriate laws and regulations such as child and forced labor, environmental, export and import compliance and foreign corrupt practices.

Further information on Ball’s Corporate Governance including the Ball business ethics booklet, Board Committee charters and the Board of Directors Business Ethics Statement can be found on our Investor site.

ACCOMPLISHMENTS

Strong Financial Performance During Difficult Economic Times
During a time when the world economy experienced extreme volatility, Ball’s overall financial performance was a record for the company. Net earnings increased 21.4 percent over 2008. In 2009, the company’s total return to shareholders, including the reinvestment of dividends paid, was 25.5 percent.

Sustainability Steering Committee Formed
To ensure sustainability is aligned and integrated with Ball’s long-term business strategy, Ball created an executive level sustainability steering committee in 2009.

Sustainability Software Implementation
To ensure timeliness and accuracy in reporting sustainability metrics and progress against goals, Ball began implementing a global information management system.

Supplier Guiding Principles
Ball began implementing Supplier Guiding Principles (SGP) in 2009 with new requests for proposals. The SGP outlines minimum expected sustainability guidelines for Ball’s suppliers and contractors.

Inclusion of Sustainability Metrics in Strategic Plans
As part of our effort to drive sustainability deep into our operations, Ball’s operating divisions included measureable sustainability goals in their strategic plans and provided quarterly progress to management.

Global Environmental Health & Safety Conference
Seventy Ball environmental health and safety employees from 40 facilities met for a three-day program in February 2009 to learn, share best practices and collaborate on ways to improve performance.

RATINGS & INDICES

Calvert Social Index
Ball was selected for inclusion in the Calvert Social Index®, a broad-based, rigorously constructed benchmark for measuring the performance of US-based sustainable and responsible companies.

SAM’s Sustainability Yearbook 2011
Each year, the world’s largest 2,500 companies, as reflected in the Dow Jones Global Total Stock Market Index, are invited to participate in SAM’s Corporate Sustainability Assessment. Only the top-scoring 15 percent of the companies in each of the 58 sectors assessed are eligible for inclusion in SAM’s Sustainability Yearbook.

FTSE4Good Membership
Ball has been a member of the FTSE4Good Index Series on the London Stock Exchange each year since March 2009. The FTSE4Good criteria are designed to reflect a broad consensus on what constitutes good corporate responsibility practice globally.

Maplecroft Climate Innovation Indexes
Maplecroft ranked Ball as one of the top Climate Innovation Indexes (CIIs) leaders for 2010. CIIs evaluate company performance in climate-related innovation and carbon management and are based on public disclosure and direct engagement. Ball ranked 69 out of 100 leader companies and was the leading company in packaging & containers sub-sector.

RANKINGS

Ball Included in the 100 Best Corporate Citizens List
In 2011, CR Magazine included Ball in the 100 Best Corporate Citizens list for the third year, ranking Ball #94.

Inclusion in Newsweek’s Environmental Rankings
In its 2010 ranking of the greenest big companies in America, Newsweek magazine ranked Ball as number 81 out of 500 of the largest U.S. companies as measured by revenue, market capitalization and number of employees. The magazine ranked companies based on their actual environmental performance, policies and reputation. Ball moved up from #111 in 2009.

AWARDS

International Habitat Conservation Award
Employees at Ball’s Rome, Ga., plant received international recognition for their contributions to wildlife habitat conservation at the Wildlife Habitat Council’s (WHC) 22nd Annual Symposium in 2010. Ball demonstrated its commitment to environmental stewardship and increasing native biodiversity by achieving Wildlife at Work(SM) recertification at the Rome plant. The plant has been certified since 2002.

Supplier of the Year Sustainability Award, Ocean Spray Cranberries, Inc.
Ball received the Supplier of the Year Sustainability Award from Ocean Spray Cranberries, Inc. in August 2010. Ball was recognized for overall commitment to environmental sustainability, long-running efforts in packaging reduction and lightweighting and the spirit of transparency regarding our sustainability initiatives.

Enterprise of the Year - Environmental Protection in Asia

Our facility in Hubei Province, China, was awarded the "Enterprise of the Year - Environmental Protection" in January 2010. The City Environment Protection Bureau recognized the plant for good environmental protection practices; clean production standards and pollution prevention. The Hubei plant was one of only two recipients of the award.

Illinois Governor’s Sustainability Award
Ball’s plants in Danville and Elgin, Ill. were among 27 Illinois companies to be honored with a 2010 Governor’s Sustainability Awards from the Illinois Sustainable Technology Center, a unit of the Institute of Natural Resource Sustainability at the University of Illinois. The plants were honored for their significant achievements in protecting the environment, helping to sustain the future and improving the economy. The Elgin plant first received the award in 2008 and both plants received the award in 2009.

Milwaukee Governor’s Award of Excellence in Energy Efficiency
Ball’s plant in Milwaukee was one of nine Wisconsin businesses to receive the Governor’s Award of Excellence in Energy Efficiency in 2009. The plant participated in the state’s Focus on Energy initiative to install three large energy efficiency projects. These projects included a heat recovery system that captures waste heat from the RTO and uses it to supply heated water to the can washing system; energy management controls for HVAC; and replacement of nearly 600 light fixtures with high efficiency models. Together the projects save an estimated 11,952 gigajoules and more than $700,000 in energy costs annually.

Colorado Environmental Leadership Program Awards
Ball Aerospace and Ball’s metal beverage packaging plant in Golden, Colo., were recognized as Chartered Gold Leaders for their sustainability initiatives and commitment to environmental protection at the 10th annual Colorado environmental leadership program awards event in October 2009. Ball Aerospace has been a gold leader company since 1999 and the Golden plant has been a gold leader company since 2003.

Ceres-ACCA Award for Best First Time Reporter
Ball’s first sustainability report was awarded co-Best First-Time Reporter in the 2009 Ceres-ACCA North American Sustainability Awards. Our report was recognized for its comprehensive approach to sustainability and demonstrated commitment to stakeholder engagement.