Climate Change Data

Environmental Metrics

ESG Focus Areas

• Packaging reputation
• Carbon footprint
• Raw materials
• Recycling and waste
• Employees

Environmental Achievements

• Reduced CO2e emissions per tonne of production by 2.0%
• Reduced waste to landfill per tonne of production by 0.3%
• 15,000 tonnes of fibre saved, resulting in 1,000 fewer lorries on the roads

Social Achievements

• 13% reduction in accident frequency rate
• 15% reduction in lost-time accidents
• 81% response rate to employee survey
• Revamped employee induction package covering Code of Conduct and broader social responsibility aspects

Governance Achievements

• Improved CDP score by 22 points to 85C
• Became an A/B member of SEDEX
• Established a Reject Processing Centre at Kemsley Paper Mill achieving zero waste to landfill

Climate Goals & Targets

Environmental Challenges

• Material waste reduction in corrugated production (£125 million potential savings)
• Transparency in paper supply chain (only one-third of paper manufacturers responded with fully auditable data)
• Complexity of long, convoluted supply chains
• Globalisation and customer demands placing intense market pressure
• Water usage per tonne of production increased despite absolute reduction in water usage

Mitigation Strategies

• Initiated material waste reduction initiative across all regions, sharing best practices and launching a ‘Waste Challenge’ campaign
• Increased efforts to improve response rate from paper manufacturers to ensure sustainable sourcing
• Supply Cycle Thinking approach to optimize the entire supply chain
• Continuous Excellence Programme to improve performance in reducing internal waste
• Focus on reducing water throughput per tonne of production

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• DS Smith Global Supplier Standards
• Online customer questionnaire for paper supply chain transparency
• Strategic partnerships with suppliers demonstrating corporate responsibility

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4

Certifications: ISO 14001 (119 manufacturing sites), ISO 50001 (6 German corrugated box plants)

Third-party Assurance: Bureau Veritas UK

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Lighter paper and board products; HOTBIN compost container; recycled plastic crates

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Sustainability
• Health and Safety
• Employee Engagement
• Fibre Sourcing
• Recycling
• Climate Change
• Packaging Reputation
• Supply Cycle Thinking

Environmental Achievements

• 14 per cent underlying improvement in CO2 equivalent per tonne production
• Achievement of 2020 targets in CO2e/tonne and in water effluent/tonne, three years ahead of target
• Improved score in the Carbon Disclosure Project to 95B
• Reduced Scope 2 CO2 emissions in 81 sites
• Improved carbon intensity by 7 percent
• Improved CDP score to Management B (95) and achieved a Leadership A rating for the CDP Water and Forest modules
• Maintained gold status in EcoVadis

Social Achievements

• Accident frequency rate reduced by 19 percent
• Rolled out new Sharesave programme in 40 countries
• Engaging Managers Programme now available in 28 countries and taking place in 24 languages
• Integration events for five acquired businesses, welcoming over 800 new colleagues to the Group
• 207 sites with zero Lost Time Accidents
• Employee engagement score for managers 74%, four percentage points above external benchmark
• Performance enablement score for managers 80%, well above external comparison
• Employee charter signed with European Works Council
• 1,970 job opportunities for young people created

Governance Achievements

• Employee charter signed with European Works Council
• Robust assessment of principal key risks
• Monitored compliance with anti-bribery and anti-corruption policy, competition law policy, social media policy and data protection policy
• Reviewed Group’s bid defence strategy
• Continued focus on the composition, balance and effectiveness of the Board
• Reviewed key operational roles and identified gaps in experience needed to deliver the strategy
• Reinforced compliance with DS Smith’s Code of Conduct and the Operating Framework
• Considered new regulations affecting the Company, signed off and published the Group’s first modern slavery statement
• Engaged with individual shareholders at the AGM
• Engaged with institutional shareholders, investors and other stakeholders throughout the year
• Formal Audit, Governance and Remuneration Committee training took place throughout the year and the Board received Market Abuse Regulation (MAR) training
• Disclosure Committee set up to facilitate compliance with MAR
• Separate non-Executive Director sessions held with the Chairman after every Board meeting

Climate Goals & Targets

Environmental Challenges

• Input cost increases driven by a rise in the cost of raw materials and other operating costs
• Uncertain economic conditions
• Volatile fibre input costs
• Challenges in water effluent and waste management, primarily driven by high production figures in paper mills
• Operating in countries where waste management infrastructure is less mature
• Customer service levels below target (93% achieved vs 97% target)

Mitigation Strategies

• Year-on-year benefits from energy management programmes (£12 million) and procurement savings (£35 million)
• Systematic mitigation against uncertainties through energy management and procurement savings
• Effective treatment of water effluent to avoid adverse effects on water bodies
• Using expertise within the Group to manage waste from mills and reduce landfill waste
• Management committed to delivering highest standards of service, quality and innovation to all customers

Supply Chain Management

Supplier Audits: 100% of own production sites achieved positive evaluation using the SEDEX platform

Responsible Procurement

• Global supplier standard (to be implemented)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, UN Global Compact, UN Declaration of Human Rights, Convention on the Rights of the Child, International Labour Organisation Eight Fundamental Conventions, OECD Guidelines for Multinational Enterprises

Certifications: ISO 14001, ISO 50001 (being rolled out to all regions)

Third-party Assurance: Bureau Veritas UK Ltd

Sustainable Products & Innovation

• SalesFront®, Trayzer®, interlocking, non-tip systems

Awards & Recognition

• 12 Worldstar packaging awards
• Nestlé Relationship Excellence award in Germany
• Six awards from Mars for outstanding quality in supply
• ProShare’s Most Effective Use of Technology award
• Highly commended for ProShare’s Best International Share Plan award
• Winner of Global Equity Organization’s Most Creative Solution award
• Green Space business award

Environmental Metrics

ESG Focus Areas

• Environmental

Environmental Achievements

• Reduced CO2e per tonne of production by 5.2%
• Reduced water effluent per tonne of production by 7%
• Increased waste to landfill per tonne of production by 22%

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, Greenhouse Gas Protocol (GHGP)

Certifications: ISO 9001, ISO 14001, OHSAS 18001, ISO 50001

Third-party Assurance: Bureau Veritas UK Limited

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Circularity and recyclability
• Climate change
• Protecting forests
• Urban air quality
• Health and safety
• Community engagement
• Workforce diversity
• Supplier sustainability
• Water stewardship
• Waste and recycling

Environmental Achievements

• 97% recycled or chain of custody certified papers used
• 82% of DS Smith’s energy is consumed by sites with ISO 50001 certification
• <1% waste sent to landfill from DS Smith Packaging division
• 100% chain of custody certified across DS Smith sites in Europe
• 6.1% like-for-like reduction in carbon, per tonne of production

Social Achievements

• 81% of sites engaged in community activities
• 10% annual increase in female uptake, for the last three years of graduate programme
• 23% reduction in Accident Frequency Rate

Governance Achievements

• Improved MSCI sustainability score to A-grade

Climate Goals & Targets

Environmental Challenges

• Integrating sustainability into newly acquired businesses (Europac, Interstate Resources, North America Packaging and Paper)
• Achieving zero waste to landfill due to complex waste streams in paper mills and disruptions from old waste-handling machinery
• Maintaining high quality recycled fibres due to Chinese import restrictions and increased contamination
• Reducing copper levels in wastewater from printing inks
• Managing water stress in various operational sites
• Addressing the challenges of plastics replacement

Mitigation Strategies

• Establishing sustainability as a workstream in acquisition and integration process
• Developing paper mill-specific, long-term zero waste to landfill roadmaps
• Introducing near infra-red technology and ‘eight must haves’ quality process to reduce contamination
• Offering copperless and EKO-gold inks to customers
• Creating water stress mitigation plans for 70% of sites in water-stressed areas
• Working with customers to find alternatives for unrecyclable products and innovating with fibre-based alternatives

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Global Supplier Standards and Global Supplier Requirements
• EcoVadis sustainability rating system for high-risk suppliers
• Supplier reduction initiative

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Carbon pricing regulation
• Changes in customer behavior

Opportunities

• Growing demand for carbon-efficient products
• Opportunities in carbon sequestering and offsetting through forest ownership

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 50001, Chain of Custody

Third-party Assurance: Bureau Veritas UK Limited

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Plastic replacement solutions (corrugated trays, reusable corners, zero tape designs, fruit punnets)
• Greencoat® boxes

Awards & Recognition

• EcoVadis Gold

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circular Economy
• Waste Reduction
• Forestry
• Employee Wellbeing
• Diversity & Inclusion
• Supply Chain Sustainability

Environmental Achievements

• 14% reduction in CO2e emissions relative to production in European paper mills (2019 vs 2015 baseline)
• 11% reduction in CO2e emissions relative to production (2019 vs 2015 baseline)
• 15% reduction in waste to landfill from North American packaging operations
• Kaysersberg, Zarnesti and Coullons paper mills achieved zero waste to landfill
• 100% of papers used come from recycled or chain of custody certified sources

Social Achievements

• 8% like-for-like reduction in Accident Frequency Rate (AFR), with 265 sites achieving zero accidents
• 100% of sites supported environmental or future generational community activities
• Launched a wellness strategy at Kemsley paper mill including a new Occupational Health Centre and mental health training

Governance Achievements

• Maintained MSCI rating of 'A', achieved Gold in EcoVadis, and listed on FTSE4Good indices
• Improved gender pay gap (mean 4.7%, median 6.7% in 2019 vs 10.2% and 10.3% respectively in 2018)
• Achieved 33% gender diversity on the Board

Climate Goals & Targets

Environmental Challenges

• Challenges in recently acquired operations impacting carbon reduction targets
• Plastic contamination in paper mill waste streams (approx. 32,000 tonnes)
• Increased waste to landfill due to changes at Kemsley paper mill and acquisitions
• Maintaining water efficiency in older paper mills
• Achieving 100% supplier compliance with sustainability standards

Mitigation Strategies

• Investing in fuel switching and energy efficiency technologies
• Exploring alternative destinations for plastic waste with the Ellen MacArthur Foundation
• Implementing energy from waste and CHP systems at Kemsley mill
• Implementing water recirculation and other technologies in mills
• Assessing suppliers using EcoVadis and embedding sustainability standards into Terms & Conditions

Supply Chain Management

Supplier Audits: 74% of strategic suppliers completed EcoVadis assessment; 11% of total suppliers confirmed compliance with sustainability standards

Responsible Procurement

• EcoVadis assessment for strategic suppliers
• Global Supplier Standards (GSS) integrated into Terms & Conditions

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Failure to meet environmental performance expectations; exposure to GHG emission regulations

Opportunities

• Minimizing exposure to GHG emission costs through energy efficiency and renewable energy; improving product environmental performance.

Reporting Standards

Frameworks Used: GRI Standards: Core option, SASB Framework

Certifications: ISO 50001 (at over 90% of energy consumption sites)

Third-party Assurance: Bureau Veritas UK Limited

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 15 (Life on Land)
• Goal 8 (Decent Work and Economic Growth)

DS Smith's operations and packaging solutions contribute to these goals through various initiatives detailed in the report.

Sustainable Products & Innovation

• EcoBowl solution; plastic replacement packaging for plants; e-commerce solution for Ted Baker; recyclable fibre-based packaging for Morrisons.

Awards & Recognition

• London Stock Exchange’s ‘Green Economy’ Mark

Environmental Metrics

ESG Focus Areas

• Circular Economy
• Climate Change
• Biodiversity
• Water Stewardship
• Waste Management
• Human Rights
• Employee Well-being
• Supply Chain Sustainability
• Ethical Business Conduct

Environmental Achievements

• Reduced CO2e per tonne of production by 4% versus last year and 23% versus 2015.
• Reduced waste to landfill per tonne of like-for-like paper production by 32% versus last year.
• Reduced water abstraction per tonne of like-for-like paper production by 5% versus last year.
• Removed 53.9 million pieces of problem plastics from supply chains.

Social Achievements

• 100% of designers trained on Circular Design Principles.
• 14% reduction in Lost Time Accidents versus last year.
• Launched 57 biodiversity projects in local communities.

Governance Achievements

• 37.5% female representation on Plc Board.
• Improved MSCI score from A to AA.

Climate Goals & Targets

Environmental Challenges

• Increasing costs of carbon taxes under EU ETS.
• Potential future yield losses in virgin fibre market due to climate change.
• Increasing likelihood of water stress in some regions.
• Difficulty in recycling certain types of plastic packaging.
• Ensuring customer acceptability of recyclable alternatives.

Mitigation Strategies

• Investing in energy efficiency and equipment upgrades.
• Implementing water stress risk mitigation plans at 25 sites.
• Developing innovative, circular solutions for waste.
• Collaborating with customers to replace problem plastics with corrugated alternatives.
• Piloting substitutes for difficult-to-recycle materials.

Supply Chain Management

Supplier Audits: 100% of strategic suppliers assessed; 45% of suppliers overall agreed to GSS.

Responsible Procurement

• Global Supplier Standard (GSS)
• EcoVadis assessments
• Chain of custody certified papers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Drought
• Water scarcity

Transition Risks

• Increasing carbon taxes
• Changes in raw material supply and cost

Opportunities

• Growth in demand for sustainable packaging
• Use of emerging renewable technologies
• Increasing resource efficiency

Reporting Standards

Frameworks Used: GRI Standards: Core option, SASB Containers & Packaging standard, Greenhouse Gas Protocol

Certifications: ISO 9001, ISO 14001, ISO 50001, ISO 45001 or OHSAS 18001, FSC®

Third-party Assurance: Bureau Veritas UK Limited

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 15 (Life on Land)

Initiatives contribute to these goals through circular economy practices, carbon reduction, water stewardship, waste management, biodiversity protection, and responsible sourcing.

Sustainable Products & Innovation

• ClimaCell®, BRRR Box, EcoBowl, sustainable shelf constructions for WD-40 and Asda.

Environmental Metrics

ESG Focus Areas

• Circular economy
• Climate change
• People
• Communities
• Supply chain
• Human Rights

Environmental Achievements

• 5% reduction in water withdrawal per tonne of production at mills in water stressed areas since 2019/20
• 29% reduction in GHG emissions per tonne of production since 2015
• 100% reusable or recyclable packaging achieved
• 313 million units of problem plastic replaced with recyclable alternatives since the start of 2020/21
• 100 biodiversity projects launched

Social Achievements

• 50% of our people actively engaged on the circular economy
• 6% reduction in accident frequency rate
• 100% of our sites engaged in community activities

Governance Achievements

• Increased scores in five leading ESG ratings (CDP, DJSI, EcoVadis, MSCI, Sustainalytics)
• Board approved a 1.5°C science-based target

Climate Goals & Targets

Environmental Challenges

• Turbulent macroeconomic environment and inflationary cost pressures
• Humanitarian crisis in Ukraine
• Impacts of the Covid-19 pandemic
• Processing large volumes of product data to measure progress towards plastic replacement target
• Tackling the c. 15 per cent of paper and cardboard not presently recycled

Mitigation Strategies

• Robust hedging to navigate surging commodity prices
• Donation to the International Red Cross and allocation to support efforts of sites around the world
• Prioritising the health and safety of our people while meeting customer needs
• Aligned practices across regions to capture, report, and measure plastic replacements
• Investigating new closed-loop business models that improve recycling rates

Supply Chain Management

Supplier Audits: 78% of suppliers agreed to Global Supplier Standards (GSS); 100% of strategic suppliers agreed and assessed on sustainability

Responsible Procurement

• Global Supplier Standards (GSS)
• EcoVadis assessments
• Circulytics engagement

Climate-Related Risks & Opportunities

Physical Risks

• Water stress

Transition Risks

• Increasing cost of raw materials
• Increasing spend on carbon taxes

Opportunities

• Growth in demand for sustainable packaging
• Use of emerging renewable technologies
• Increasing resource efficiency

Reporting Standards

Frameworks Used: GRI Standards: Core option, SASB Containers & Packaging Standard

Certifications: ISO 9001, ISO 14001, ISO 50001, ISO 45001 or OHSAS 18001, FSC®

Third-party Assurance: Deloitte (limited assurance for selected metrics)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 15 (Life on Land)
• Goal 6 (Clean Water and Sanitation)
• Goal 4 (Quality Education)
• Goal 8 (Decent Work and Economic Growth)

Various initiatives throughout the report contribute to these goals

Sustainable Products & Innovation

• Greencoat® water resistant packaging
• Fibre-based solutions to replace plastics
• Seaweed fibre packaging trials

Awards & Recognition

• 'Recycling Award' at the CPI Paper Industry Gold Awards 2022

Environmental Metrics

ESG Focus Areas

• Circularity
• Carbon
• People & Communities
• Nature

Environmental Achievements

• Reduced total Scope 1, 2, and 3 GHG emissions by 10% compared to last year and 15% compared to 2019/20.
• Replaced 297 million units of plastic with recyclable alternatives, bringing the total to 762 million since 2020/21.
• 20% reduction in waste sent to landfill compared to last year.

Social Achievements

• Reduced Accident Frequency Rate (AFR) by 6% compared to last year.
• 100% of sites with 50 or more full-time employees undertook community activities.
• Launched Scope 3 Supplier Engagement Programme and joined the Supplier Leadership on Climate Transition Initiative.

Governance Achievements

• Refreshed Now & Next Sustainability Strategy.
• Maintained A- CDP Climate Change score and earned maximum ‘A’ grade in Supplier Engagement Rating.
• Completed an €8.7 million wastewater treatment plant upgrade at Zarnesti Mill.

Climate Goals & Targets

Environmental Challenges

• Challenging macroeconomic environment.
• Supply chain disruptions.
• Hard-to-recycle materials (e.g., barrier coatings, foam).
• Contamination in waste streams.
• Water withdrawal increase due to production pattern changes.

Mitigation Strategies

• Landfill diversion projects (incineration, cement production).
• Development of recyclable alternatives to hard-to-recycle materials (e.g., Greencoat®).
• Improved data capture and reporting for plastic replacement.
• Proactive work with recycling customers, policymakers, and trade associations.
• Significant investments in wastewater treatment and water recirculation systems.

Supply Chain Management

Supplier Audits: 100% of strategic suppliers assessed on sustainability using EcoVadis.

Responsible Procurement

• Global Supplier Standard (GSS)
• Supplier Management Policy
• EcoVadis assessments
• Corrective Action Plans

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Water stress

Transition Risks

• Increased spend on carbon taxes
• Increased cost of raw materials

Opportunities

• Growth in demand for sustainable packaging
• Greater resource efficiency

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 9001, ISO 14001, ISO 50001, ISO 45001, FSC®, PEFC, SFI

Third-party Assurance: Deloitte

UN Sustainable Development Goals

• Goal 7
• Goal 12
• Goal 13
• Goal 15

Initiatives contribute to these goals as detailed throughout the report.

Sustainable Products & Innovation

• Greencoat® water-resistant packaging
• Recyclable corrugated alternatives to plastic

Environmental Metrics

ESG Focus Areas

• Circularity
• Carbon
• People & Communities
• Nature

Environmental Achievements

• 5% reduction in total greenhouse gas emissions compared to last year
• 19% reduction in total greenhouse gas emissions compared to 2019/20 base year
• 19% reduction in waste to landfill compared to last year
• Over 1.2 billion pieces of plastic avoided through supply of alternative corrugated solutions since 2020/21
• 10% reduction in water abstracted for use in own process per tonne of production compared to last year at paper mills in water stressed areas
• €90 million investment to transition Rouen mill to biomass waste, saving c. 99,000 tonnes CO2e, expected by 2025/26

Social Achievements

• 100% of our in-scope sites have completed the Sedex SAQ1, strengthening our human rights due diligence
• 100% of our in-scope sites participated in community activities
• 14 of our paper mills completed biodiversity activities
• 262 sites with zero lost time accidents this year
• 12% reduction in employee lost time accidents compared to last year
• 96th percentile social dimension score in the S&P Global CSA

Governance Achievements

• Published our inaugural Net Zero Transition Plan setting out actions to achieve our science-based target
• Achieved CDP ‘A-List’ status for our 2023 Climate Change response

Climate Goals & Targets

Environmental Challenges

• Obtaining supply chain data for some packaging solutions
• Poor-quality waste streams contaminating used paper and cardboard
• Lack of third-party alternatives on the market for some materials
• Customer resistance to alternative materials
• Supplier timelines in the provision of alternative materials
• Competition for water resources
• Potential supply constraints imposed by local authorities

Mitigation Strategies

• Engaging with customers to extract supply chain data
• Implementing stronger controls at packaging plants
• Developing and testing new recyclable solutions
• Working with suppliers to identify and bring to market more recyclable solutions
• Implementing major initiatives to reduce freshwater consumption
• Developing water management plans for all sites
• Developing a water scarcity plan for packaging sites

Supply Chain Management

Supplier Audits: 100% of strategic suppliers assessed on sustainability using EcoVadis

Responsible Procurement

• Global Supplier Standard (GSS)
• EcoVadis assessments
• Supplier engagement programs
• Science-based target encouragement

Climate-Related Risks & Opportunities

Physical Risks

• Water stress

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Growth in sustainable packaging market

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC, UN SDGs

Certifications: ISO 9001, ISO 14001, ISO 50001, ISO 45001, FSC®, PEFC

Third-party Assurance: Deloitte

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 15 (Life on Land)
• Goal 6 (Clean Water and Sanitation)
• Goal 8 (Decent Work and Economic Growth)

DS Smith's initiatives contribute to these goals through its circular business model, emissions reduction efforts, biodiversity programs, water management practices, and commitment to responsible employment.

Sustainable Products & Innovation

• Circular Design Metrics
• Greencoat® solution
• Easy Bowl
• DS Smith LiftUp

Awards & Recognition

• CDP ‘A-List’ for Climate Change
• CDP A- scores in Water Security and Forests
• EcoVadis Gold
• MSCI AA
• S&P Global 72
• Sustainalytics ‘Low Risk’
• DS Smith’s graduate programme winning ‘Manufacturing & Engineering Company of the Year’