Climate Change Data

Graham Packaging

Climate Impact & Sustainability Data (2018, 2019, 2021, 2023)

Reporting Period: 2018

Environmental Metrics

Total Carbon Emissions:28,334 MT CO2e (Scope 1) + 491,085 MT CO2e (Scope 2) in 2018
Scope 1 Emissions:28,334 MT CO2e
Scope 2 Emissions:491,085 MT CO2e
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:1,104,373 MWh (electrical) + 372,792 mmBTU (natural gas) + 448,491 gal (propane) in 2018
Water Consumption:1,521 megaliters of surface water in 2018
Waste Generated:5.952 metric tons to landfills in 2018
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Reduced CO2 emissions by more than 5% at select locations from 2010-2017
  • Diverted approximately 300 million plastic containers from landfills each year through the Graham Recycling Center
  • Implemented lightweighting initiatives for both PET and HDPE packaging, reducing weight and transportation needs
  • Used 65 million pounds of HDPE post-consumer resin in 2018, 42 million pounds from their own recycling center
  • Processed over 550 million pounds of PET resin and over 670 million pounds of HDPE resin across global facilities in 2018
  • Reduced process water by 100+ million gallons since 2014
  • Achieved sustained energy improvement since 2014

Social Achievements

  • Reduced recordable injury rate by 62% since 2014
  • Implemented a Pay-for-Skills program for hourly employees
  • Launched Litmos Learning Management System for employee training and development
  • Implemented FrontLine Leadership Development and Fundamentals program
  • Community involvement initiatives across multiple global plants

Governance Achievements

  • Developed a well-developed Ethics & Compliance Program
  • Established an ethics hotline accessible globally
  • Signed the Ellen MacArthur Foundation’s New Plastics Economy Global Commitment, pledging that their full line of packaging will be recyclable or reusable by 2025
  • Joined the Department of Energy’s Better Plants Program with plans to reduce energy usage by at least 25% over the next 10 years

Climate Goals & Targets

Long-term Goals:
  • Eliminate waste to landfills
  • Reduce ocean-bound plastic
Medium-term Goals:
  • Reduce energy usage by 25% over the next 10 years (Better Plants Program)
  • 100% of packaging to be recycled back into bottles or recovered for use in other plastic products by 2025
Short-term Goals:
  • Increase post-consumer resin content in bottles
  • Improve recyclability in all categories
  • Decrease carbon footprint

Environmental Challenges

  • Barriers to recycling (inconsistent collection, misinformation, lack of consumer understanding, limited access to recycling services)
  • Challenges with biodegradable resins (not truly biodegradable, lack of industrial facilities, disruption to recycling stream)
  • High cost of post-consumer recycled PET (rPET), depending on source and consistency
Mitigation Strategies
  • Developed a network of HDPE recyclers to meet customer needs and prevent material shortages
  • Investing in research and experimentation with bio-based resins
  • Working with customers to determine the best way to meet their needs for recycled content, supplying packaging with 10% to 100% recycled materials
  • Implementing lightweighting and design innovations to minimize impacts across the product life cycle
  • Customer colocation to reduce transportation needs and carbon footprint
  • Planning to test a Zero Waste Program at several pilot plants in 2019

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Working with suppliers to test and validate chemically recycled and bio-based plastics

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Lightweighting, renewable energy sources

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • ThermaSet® heat-set process
  • Textured reusable bottles

Awards & Recognition

  • Not disclosed

Reporting Period: 2019

Environmental Metrics

Total Carbon Emissions:481,068.12 tCO2e/year (Scope 1 & 2 combined)
Scope 1 Emissions:22,591.12 tCO2e/year
Scope 2 Emissions:459,477 tCO2e/year
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:1,160,482 MWh/year
Water Consumption:1,465 Megaliters/year
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • 6% overall reduction in energy usage
  • 19.4% combined decrease in Scope 1 & 2 Greenhouse Gas Emissions
  • 96% waste reused or recycled by Lexington, KY, plant
  • 100% renewable energy used by two Graham facilities in Brazil
  • 65.7 million pounds of HDPE PCR content consumed
  • 375 million containers diverted from landfills by Graham Recycling Operation
  • 25%+ Ocean-Bound PCR Content in a single bottle
  • 56% increase in the use of rPET content

Social Achievements

  • Launched Employee Resource Groups (ERGs) for Women in Business and Young Professionals
  • Implemented Pay-for-Skills program for hourly employees
  • Continued implementation of Litmos Learning Management System (LMS), completing over 40,000 learning events
  • Defined and rolled out an updated Graham Competency Model
  • Increased investment in training

Governance Achievements

  • Well-developed Ethics & Compliance Program with training on code of conduct, fraud policies, anti-corruption, anti-bribery, antitrust and privacy

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Incorporate an average of 20% PCR across all bottles by 2025
  • Achieve 100% recyclability by 2025
  • Reduce energy usage by 25% by 2028
Short-term Goals:
  • Reduce energy usage by 5% in 2020
  • Increase average PCR use to 10% in 2020
  • Conduct more than 25 life-cycle assessments in 2020

Environmental Challenges

  • Increased cost of processing recyclables
  • Lack of equal access to recycling
  • Material contamination in recycling streams
  • Lack of centralized data and decision-making in recycling
  • Growing consumer demand for sustainable packaging
  • New regulations around recyclability and recycled content
Mitigation Strategies
  • Working with industry associations and partners to improve recycling infrastructure
  • Developing innovative processes and technologies to increase use of PCR and ocean-bound plastic
  • Adapting to changing regulations through continuous improvement
  • Investing in R&D to develop innovative processes and technologies
  • Implementing the Graham Operating System to standardize manufacturing, measure plant performance, drive accountability and reduce waste

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: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • ThermaSet® PET
  • Packaging incorporating ocean-bound PCR

Awards & Recognition

  • Not disclosed

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:1,811,385 tCO2e/year
Scope 1 Emissions:31,750 tCO2e/year
Scope 2 Emissions:459,943 tCO2e/year
Scope 3 Emissions:1,319,691 tCO2e/year
Renewable Energy Share:Not disclosed
Total Energy Consumption:1,150,491,823 kWh/year
Water Consumption:346,345,791 gallons/year
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • 90.4% recyclability of Graham products by U.S. standards, 98% by Ellen MacArthur Foundation standards
  • 2.5 million pounds of ocean-bound plastic processed
  • 50+ life-cycle assessments completed
  • 11% reduction in annual electricity usage at Florence, KY, plant
  • 1% reduction in GHG emissions since 2020
  • 7% overall PCR use
  • 14% reduction in water usage since 2018

Social Achievements

  • 5,929 pounds of trash removed from communities during Cleanup Day events
  • 100% of Graham work locations participated in employee-led community service activities
  • 2 plants received ISCC Plus certification
  • Launched Green Procurement Team

Governance Achievements

  • Graham Engagement Action Teams (GREATs) meet monthly
  • 2 Active Employee Resource Groups
  • Patrick McNabb named as first vice president of cybersecurity
  • Better Projects Award from DOE
  • Updated FCPA, GDPR and Fraud policies
  • Used Supplier Scorecards to evaluate ESG compliance of potential suppliers

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • 30% reduction in GHG emissions by 2030 from a 2020 baseline
  • 20% average PCR use, including ocean-bound PCR, across all Graham products by 2025
  • 25% energy intensity reduction by 2028 from a 2018 baseline
  • 70% of Graham facilities will engage in more than one employee-led community support activity
Short-term Goals:
  • 100% recyclable, reusable or compostable packaging by 2025
  • 100% of global facilities will participate in at least one employee-led community support activity

Environmental Challenges

  • Varying global definitions of recyclability
  • Challenges in recycling colored plastics, especially black plastics
  • Need to increase supply of recycled material to meet growing demand
  • COVID-19 pandemic impacts on operations and labor market
  • Need to improve data accuracy and reporting
  • Climate change impacts
Mitigation Strategies
  • Monitoring all definitions of recyclability
  • Promoting the use of detectable black colorant and reduction/elimination of colorant
  • Exploring advanced barrier technologies and reduced/responsible label use
  • Challenging procurement team to spend 25% of time sourcing recycled and green materials
  • Improving data collection and reporting systems
  • Implementing operational efficiencies and sustainable packaging solutions, exploring science-based targets for GHG emissions

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Supplier Quality Manual and Code of Ethics Policy
  • Supplier Scorecards to evaluate ESG compliance

Climate-Related Risks & Opportunities

Physical Risks
  • Severe weather
Transition Risks
  • Regulatory changes
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, UN Global Compact

Certifications: ISCC Plus

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • ThermaSet® PET solution
  • Lightweight packaging
  • Advanced barrier technologies

Awards & Recognition

  • 2021 Better Project Award from the U.S. Department of Energy
  • 2021 Best Workplaces in Lancaster County Award
  • Ethics in Business Award from Samaritan Counseling Center

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:1,441,583 tCO2e/year
Scope 1 Emissions:21,057 tCO2e/year
Scope 2 Emissions:366,443 tCO2e/year
Scope 3 Emissions:1,054,084 tCO2e/year
Renewable Energy Share:Not disclosed
Total Energy Consumption:1,019,903,306 kWh/year
Water Consumption:330,430,652 gallons/year
Waste Generated:19,478,412 lbs/year
Carbon Intensity:2.19 tCO2e/t produced

ESG Focus Areas

  • Climate Change
  • Circular Economy
  • Employee Health and Safety
  • Diversity, Equity & Inclusion
  • Governance

Environmental Achievements

  • Achieved a No. 1 ranking in the Containers & Packaging industry by Morningstar Sustainalytics with a negligible risk rating of 9.6.
  • Greenhouse gas emissions reduction targets approved by the Science-Based Targets initiative (SBTi).
  • Absolute emissions reduced 20% from baseline, and intensity reduced 7% vs. baseline.
  • Eliminated 736,784 lbs of plastic through lightweighting.
  • 22 plants Operation Clean Sweep® certified.

Social Achievements

  • Lowest number of recordable incidents in Graham Packaging’s history for the second year in a row (29 in 2023).
  • Advancement of Graham Blue Culture.
  • Introduction of MyGraham employee engagement app.
  • Implementation of cardinal rules of quality.

Governance Achievements

  • Expanded audit program.
  • Implementation of a COSO 2017 compliant ERM framework.
  • Creation of a business continuity plan (BCP) and Disaster Recovery Plan (DRP).

Climate Goals & Targets

Long-term Goals:
  • Net Zero emissions by 2050.
Medium-term Goals:
  • 25% less energy intensity by end of 2028.
  • 30% GHG reduction by end of 2030.
Short-term Goals:
  • 100% recyclable, reusable or compostable products by 2025.
  • 20% average PCR in product portfolio by 2025.

Environmental Challenges

  • Remaining 2% of products not recyclable (including black bottles and PVC).
  • Increasing PCR incorporation.
  • Future supply of PCR may be constrained.
  • Lack of regulation and consistency in US recycling.
  • Climate-related risks (extreme weather, supply chain disruptions, regulatory changes).
Mitigation Strategies
  • Partnering with NLCRC to establish recycling system for lubricant bottles.
  • Working to eliminate remaining PVC by end of 2025.
  • Offering more solutions to help customers meet sustainability goals.
  • ISCC Plus and RMS certifications.
  • Climate scenario analysis based on TCFD guidelines.
  • Incorporation of climate risks into overall risk management governance.

Supply Chain Management

Supplier Audits: Supplier Sustainability Questionnaire rolled out to key suppliers in North America (60% of annual spend).

Responsible Procurement
  • Supplier Quality Manual
  • Green Procurement Policy
  • Supplier Environmental Code

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 9001, FSSC 22000, ISCC Plus, RMS

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • AccuStrength™
  • ActiveWeb / Active Base™
  • REFPET

Awards & Recognition

  • World Sustainability Award Finalist (four categories)