Tetra Laval International S.A.
Climate Impact & Sustainability Data (2022-2023, 2023-2024)
Reporting Period: 2022-2023
Environmental Metrics
ESG Focus Areas
- Food accessibility
- Climate change
- Circularity
- Biodiversity
- Social Sustainability
Environmental Achievements
- Tetra Pak was recognised for the fourth consecutive year as part of the CDP ‘A List’ for action on climate change and forests.
- Tetra Pak's climate ambition for net-zero GHG emissions across the value chain by 2050 was approved by the Science Based Targets initiative (SBTi).
- Around 38,000 seedlings of native trees were planted on 87 hectares of land as part of the Araucaria Conservation Programme.
- Sidel reduced GHG emissions from its own sites and facilities by 50% by 2030 compared to 2019.
- Sidel switched to renewable energy at its 17 production sites.
- DeLaval reduced energy consumption by 2% and increased renewable energy use by 44% compared to 2021.
- DeLaval reduced waste by 12% compared to the 2019 baseline.
Social Achievements
- Tetra Pak launched ‘30 Actions for Colombia’ investing almost US$ 800,000 in supporting rural dairy farmers and promoting circular resource use.
- Tetra Pak and Food for Development are working to combat child malnutrition and improve school attendance in rural Kenya.
- DeLaval supported colleagues and farmers in Ukraine.
- DeLaval launched the Gustaf de Laval Fund supporting young scientists' research projects.
- DeLaval improved employee engagement to 83%.
Governance Achievements
- Tetra Laval implemented enhanced policies for internal control, effective 2023.
Climate Goals & Targets
Long-term Goals:
- Tetra Pak: Net-zero GHG emissions across the value chain by 2050.
Medium-term Goals:
- Tetra Pak: 90% reduction across scope 1, 2 and 3 GHG emissions by 2050 compared to 2019.
- Tetra Pak: Restore up to 7,000 hectares of the Atlantic Forest in Brazil by 2030.
- Sidel: Reduce scope 3 emissions related to what it buys and sells by 25% compared with its 2019 baseline by 2030.
Short-term Goals:
- Tetra Pak: 46% reduction in absolute scope 1, 2 and 3 GHG emissions by 2030 compared to 2019.
- Sidel: 50% reduction of GHG emissions across its sites and facilities by 2030 compared to 2019.
- DeLaval: Reduce scope 1 and 2 emissions by 30% by 2030; Reduce internal waste by 20% by 2030; Reduce water consumption.
Environmental Challenges
- Unprecedented increases in raw material and logistics costs, supply shortages, and build-up of safety stock resulted in a material decline in cash flow for Tetra Laval.
- Sanctions against Russia led Tetra Pak to exit the country.
- Shortage of semiconductors affected equipment delivery for Tetra Pak.
- Inflation negatively impacted profitability and cash flow for Tetra Pak.
- Supply chain disruptions affected DeLaval.
- Inflation and supply chain disruption affected DeLaval.
Mitigation Strategies
- Tetra Pak implemented price increases to compensate for cost inflation.
- Tetra Pak focused on its purpose, customers, and Strategy 2030.
- Tetra Pak divested its Russian operations to local management.
- DeLaval found alternative business partners and absorbed some cost increases.
- DeLaval implemented actions to reduce delivery times.
Supply Chain Management
Responsible Procurement
- Tetra Pak works with suppliers to reduce emissions and promote sustainability.
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: UN Sustainable Development Goals (SDGs), UN Global Compact, Science Based Targets initiative (SBTi)
Certifications: ISO 14001, ISO 45001
UN Sustainable Development Goals
- SDG 2: Zero Hunger
- SDG 6: Clean Water and Sanitation
- SDG 7: Affordable and Clean Energy
- SDG 12: Responsible Consumption and Production
- SDG 13: Climate Action
Tetra Laval's initiatives contribute to these goals through sustainable food production, water conservation, renewable energy use, waste reduction, and climate action.
Sustainable Products & Innovation
- Tetra Pak's new fibre-based barrier packaging solution
- Sidel's 1SKIN™ label-less recycled PET bottle
- Sidel's Hydra Ultrasonic bottle washer
- DeLaval's E-series rotary milking parlour
- DeLaval's DeLaval Evanza™ milking cluster
Awards & Recognition
- Tetra Pak: CDP ‘A List’ for action on climate change and forests (four consecutive years)
- Sidel's 1SKIN™: Best in PET at the 2022 Global Water Drinks Awards
- DeLaval comfort control CL: Silver at Elmia, Sweden
Reporting Period: 2023-2024
Environmental Metrics
ESG Focus Areas
- Climate change
- Circularity
- Nature
- Social sustainability
- Food systems
Environmental Achievements
- Launched aseptic beverage carton with a paper-based barrier, reducing carbon footprint by 33% and increasing renewable content to 90%
- Tetra Pak's suppliers reduced their greenhouse gas intensity by 18% on average since 2020.
- Invested €40 million in collection and recycling in 2023.
- Sidel empowered its customers to drive energy efficiency and reduce their emissions by around 6,540 tonnes of CO2 in 2023.
- DeLaval optimised its logistics in Latin America, reducing its outbound logistics footprint and product packaging material.
Social Achievements
- Donated €10 million of humanitarian aid to support Ukraine.
- Tetra Pak conducted its first double materiality assessment.
- DeLaval launched several new products that promote sustainability and animal welfare.
- Sidel maintained 100% of its production sites certified to the ISO14001 environmental management system.
Governance Achievements
- Sidel embarked on the implementation phase of Leading Excellence, a three-year transformation programme.
- Tetra Pak strengthened its human rights due diligence process.
Climate Goals & Targets
Long-term Goals:
- Tetra Pak: Net-zero greenhouse gas impact throughout the entire value chain by 2050.
Medium-term Goals:
- Tetra Pak: Halve customer emission reductions by 2030.
- Tetra Pak: Achieve a 50% emission reduction from materials by 2030.
Short-term Goals:
- Sidel: Reduce scope 3 emissions by 27.5% by 2030 compared with 2019.
- Sidel: Reduce scope 1 and 2 emissions by 50% by 2030 compared with 2019.
- Tetra Pak: Net-zero greenhouse gas impact across its operations by 2030.
Environmental Challenges
- Persistent inflation, lower consumption, geopolitical instability.
- Global shortage of components hampered delivery of Sidel products.
- Declining milk prices for dairy farmers impacted DeLaval sales.
- Supply chain constraints and accelerated regionalisation.
Mitigation Strategies
- Price increases and lower material costs positively impacted Tetra Laval's performance.
- Sidel implemented Leading Excellence transformation programme.
- DeLaval rationalised its product offering and divested non-core units.
- Tetra Laval focused on maximising sales opportunities and disciplined cost control.
Supply Chain Management
Responsible Procurement
- Tetra Pak's 'Join Us in Protecting the Planet' supplier initiative.
Climate-Related Risks & Opportunities
Physical Risks
- More extreme weather events, changes in seasonal rainfall and temperature, sea level rise and saltwater intrusion.
Transition Risks
- Changes in consumer expectations and regulatory requirements.
Opportunities
- Development of energy-efficient products and processes, more sustainable packaging solutions.
Reporting Standards
Frameworks Used: CDP
Certifications: ISO 14001, ISO 45001, Carbon Neutral (Carbon Trust™)
UN Sustainable Development Goals
- Goal 7 (Affordable and Clean Energy)
- Goal 12 (Responsible Consumption and Production)
- Goal 13 (Climate Action)
- Goal 2 (Zero Hunger)
- Goal 6 (Clean Water and Sanitation)
Sustainable Products & Innovation
- Aseptic beverage carton with paper-based barrier
- Tetra Pak® E3/Speed Hyper filling machine
- DeLaval Rotary E500 milking system
- OptiWagon autonomous feed distribution robot
- Sidel's EvoFilm® Stretch secondary packaging solution
- Sidel's aseptic Combi Predis™
Awards & Recognition
- CDP 'A List' for climate change, forests, and water security.
- Kepner-Tregoe Excellence Award for Tetra Pak Services.