Climate Change Data

Environmental Metrics

ESG Focus Areas

• Governance

Governance Achievements

• Updated the Charter of the Board of Directors in 2016.
• Conducted an annual evaluation of its own performance and working methods using an external evaluator in 2016.
• Updated the Company’s insider policy in 2016.
• Actively discussed and defined the processes relating to the new legal framework (Regulation (EU) No 537/2014) concerning the provision of non-audit services by the auditor in 2016.

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Finnish Corporate Governance Code

Environmental Metrics

ESG Focus Areas

• People
• Packaging
• Supply Chain
• Manufacturing Operations

Environmental Achievements

• Relative GHG emissions reduced 14% in 2013-2017
• Energy efficiency improved by 15% since 2013
• Material recovery rate improved by 2% (81%) compared to 2016
• 66% of main raw materials were renewable in 2017
• Implemented a new cooling technology (Climate Wizard) in UAE facilities, saving up to 25% energy.
• Reduced ink waste by 50% during print changes in Guangzhou, China.
• Optimized water waste in print changes in Guangzhou, China by installing an internal waste treatment system.

Social Achievements

• Workplace safety improved by 21% since 2013
• Launched People Excellence team to enhance collaboration and best practice sharing.
• Implemented “Partners for Success” model to enhance employer-employee dialogue.
• 80% of employees responded to the employee engagement survey in 2017, with an index of 69%
• Conducted 11 Working conditions workshops globally for managers.
• Implemented human rights due diligence practices, including training for managers on human trafficking and modern slavery.
• Coordinated a cross-industry collaboration for paper cup recycling in the UK, resulting in 415 new collection points.

Governance Achievements

• Implemented Navex RiskRate® supplier screening system across all business segments.
• Strengthened supply chain due diligence system.
• Rolled out the Navex RiskRate system to continuously monitor and manage the supply network.

Climate Goals & Targets

Environmental Challenges

• Water scarcity in some manufacturing unit locations.
• Paper cup recycling rates in the UK.
• Managing a global supply chain with diverse suppliers and practices.
• Ensuring consistent compliance and risk management across the supply chain.

Mitigation Strategies

• Used Aqueduct water risk mapping tool to assess water risk at manufacturing units.
• Coordinated cross-industry collaboration for paper cup recycling in the UK.
• Implemented Navex RiskRate® supplier screening system and strengthened supply chain due diligence system.
• Developed a global health and safety policy and a ‘Huhtamaki Human Trafficking and Modern Slavery Statement’.

Supply Chain Management

Supplier Audits: 2/3 of key suppliers covered by the Code of Conduct

Responsible Procurement

• Supplier Code of Conduct
• Navex RiskRate® supplier screening system
• Collaboration with Sedex

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

UN Sustainable Development Goals

• 12: Responsible Consumption and Production

The updated corporate responsibility agenda is aligned with the UN Sustainable Development Goals, with a focus on SDG 12.

Sustainable Products & Innovation

• Aporo apple tray (made from recycled fiber)
• Lamineo coffee packaging (reduced adhesive content)

Environmental Metrics

ESG Focus Areas

• People
• Packaging
• Supply Chain
• Operations
• Ethics and Compliance

Environmental Achievements

• Launched blueloop, a new range of recyclable flexible packaging
• Launched Huhtamaki Fresh trays, a fiber-based alternative to black plastic trays
• Launched high-quality, sustainable paper straws
• Installed state-of-the-art solar power units at manufacturing units in India
• New Flexible Packaging unit in Egypt received the highest rating of AA in a BRC audit

Social Achievements

• Engagement survey response rate was 88% and engagement index 74%
• Huhtamaki joined the 4evergreen industry alliance
• Huhtamaki elected to the Executive Committee of EUROPEN
• McDonald’s announced Huhtamaki the supplier of the year in UK and Ireland

Governance Achievements

• Launch of new Ethics and Compliance program framework

Climate Goals & Targets

Environmental Challenges

• Need to do more to address stakeholder expectations and the urgency of the climate crisis
• Need to set forward-looking KPIs for product innovation and natural resources
• Increased interest from investors in ESG performance
• Temporary issue with a third-party waste processing company cancelling their contract in North America, impacting recycling rates

Mitigation Strategies

• Working on sustainability ambitions towards 2030
• Addressing product innovation and natural resources KPIs in long-term sustainability ambitions
• Actively engaging with stakeholders on plastics and ESG
• Investing in additional OHS resources to drive safety performance improvement
• Developing water management plans for all manufacturing units

Supply Chain Management

Responsible Procurement

• Code of Conduct for Huhtamaki Suppliers
• Supplier screenings and questionnaires (NAVEX RiskRate)
• Third-party corporate responsibility audits (Sedex)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, Core Option

Third-party Assurance: DNV GL Business Assurance

UN Sustainable Development Goals

• Goal 12: Responsible Consumption and Production

Huhtamaki's core business of providing sustainable food packaging directly contributes to Goal 12. Other relevant goals include Goals 7 (Affordable and Clean Energy), 13 (Climate Action), and others depending on specific initiatives.

Sustainable Products & Innovation

• blueloop recyclable flexible packaging
• Huhtamaki Fresh fiber-based trays
• Paper straws

Awards & Recognition

• EcoVadis Gold medal
• Vending Star 2019 Award for Future Smart sustainable paper cup

Environmental Metrics

ESG Focus Areas

• Sustainability

Environmental Achievements

• Installed rooftop solar panels in Guwahati, Daman, and Silvassa, resulting in a ~750 MT reduction in CO2 emissions.
• Launched several Blueloop® innovations, accelerating the adoption of circular flexible packaging (recyclable PP tubes, PE pouches for pet food, PP laminates for confectionery, and paper laminates for tea envelopes).

Social Achievements

• Partnership with WasteAid to drive community-level circular economy initiatives in India, Vietnam, and South Africa.
• Mithi River clean-up project in Mumbai funded by Huhtamäki Oyj.
• Huhtamaki Circular Economy Start-up Program to accelerate the development of sustainable solutions.

Governance Achievements

• Rebranded from Huhtamaki PPL Limited to Huhtamaki India Limited.
• Appointed Sudip Mall as Managing Director.
• Consolidated all business activities through one central, integrated structure.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting operations and revenues.
• Subdued demand due to the pandemic.
• Supply chain disruptions due to lockdowns and shipping container unavailability.
• Erratic demand from customers with shorter lead times.

Mitigation Strategies

• Staff worked from home, production staff maintained COVID protocols.
• Implemented Total Productive Manufacturing (TPM) to improve efficiency.
• Increased investments in automation and expansion.
• Acquisition of Mohan Mutha Polytech Private Limited (MMPPL) to improve agility in South India.
• Focus on improving products and services, investing in technology, and building a more robust business model.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Blueloop® recyclable packaging
• Recyclable mono-paper fragrance pocket
• High-barrier bulk bag with extreme drop resistance
• Sticker-in-laminate
• Alu-free retortable easy peel lid
• Recyclable see-through snack pack
• Recyclable pocket sachet for sanitisers
• Paper-based lidding & banderole for yoghurt cups
• Interactive both-side printed flow wraps
• Bottoms Up Pouch

Awards & Recognition

• World Star Awards 2021
• SIES SOP Star Awards 2020
• The Economic Times Polymers Awards 2020

Environmental Metrics

ESG Focus Areas

• Climate change
• Circularity
• Social accountability
• Governance and ethics
• Human rights

Environmental Achievements

• Reduced absolute Scope 1 and 2 GHG emissions by 0.4% while production volume increased by 6%
• Increased share of renewable electricity in operations to 18%
• 72.3% of non-hazardous waste recycled
• 17.9% of total waste sent to landfill
• 66.6% of all materials used are renewable or recycled
• Launched Push Tab® paper, a sustainable paper-based blister solution
• Launched Future Smart fiber lids, replacing plastic lids
• Launched Futuro egg cartons made of post-consumer recycled fiber
• Signed two 10-year virtual Power Purchase Agreements (VPPA) with BayWa r.e., covering 80% of electricity usage in Europe, resulting in 200 GWh of solar power produced annually and saving over 89,000 tons of CO2 emissions per year
• Marion, Indiana facility sustained “Zero to Landfill” for 12 months

Social Achievements

• Improved rankings in EcoVadis, CDP, and S&P Global Corporate Sustainability Assessment
• Employee engagement index at 73%
• Employee enablement index at 76%
• Leadership index increased to 77%
• LTIFR decreased to 1.4
• TRIFR at 4.3
• No fatalities during 2021
• Implemented Global Machine Safety Standard
• Performed a review of existing human rights policies and procedures and a global assessment of potential human rights risks and impacts
• Carried out first human rights impact assessment pilot in Egypt
• 95.4% of employees completed Huhtamaki Code of Conduct training

Governance Achievements

• Established Sustainability Committee and separate steering committee to support implementation of group-level energy strategy
• Introduced Global Sustainability Index (GSI) linking short-term incentives of President and CEO and other GET members to sustainability performance
• Created sustainability roadmaps for all sites
• Aligned climate-related governance and reporting with TCFD recommendations
• Reported on eligibility of economic activities with EU Taxonomy for the first time

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions driven by the pandemic resulting in extraordinary inflation of input costs
• Extraordinary inflation in raw materials, freight, energy, and labor
• COVID-19 pandemic impacting demand for foodservice packaging
• Recycling infrastructure gaps preventing recyclable packaging from being recycled
• Limited use of recycled materials in direct food contact
• Negative media attention on plastics and single-use products

Mitigation Strategies

• Diversified product portfolio and ability to manage adverse conditions
• Operational performance and ability to manage inflation impact
• Pricing actions
• Focus on operational efficiency
• Collaboration with value chain partners to improve recycling infrastructure
• Evidence-based discussion to highlight the value of packaging
• Active tracking of regulatory initiatives and potential regulatory changes
• Continuous product innovation, including focus on plastic substitution
• Shifting to renewable energy sources
• Developing agile business models

Supply Chain Management

Responsible Procurement

• Code of Conduct for Huhtamaki Suppliers
• Supplier sustainability requirements
• Updated supply chain due diligence process to identify risks

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather, droughts, floods

Transition Risks

• Regulatory changes, bans on chemicals and materials, changes in consumer preferences

Opportunities

• Development of energy-efficient products
• Plastic substitution
• Growth in product categories serving food delivery and convenience

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: ISO 14001, ISO 50001, ISO 9001, BRCGS

Third-party Assurance: KPMG Oy Ab

UN Sustainable Development Goals

• Not disclosed

Huhtamaki supports the UN Global Compact and the UN Sustainable Development Goals (SDGs)

Sustainable Products & Innovation

• Push Tab® paper
• Future Smart fiber lids
• Futuro egg cartons
• Paperboard yogurt container
• Sipp Straw
• Blueloop™ tube laminate

Awards & Recognition

• EcoVadis Gold medal
• 2021 Sustainability Award (Push Tab® Paper)
• WorldStar award (Sundae cup and lid)
• 2022 Worldstar Competition award (ElifProLite)

Environmental Metrics

ESG Focus Areas

• Sustainability
• Innovation
• People
• Environment
• Communities
• Governance

Environmental Achievements

• Reduced absolute scope 1 GHG emissions by 8.9%
• Reduced scope 1 and 2 emissions per Rupee turnover to 2.28 tonnes from 2.64 tonnes in FY2021
• 98.7% of non-hazardous waste recycled
• 75% lesser emissions and higher efficiency at Rudrapur factory by switching to piped natural gas
• 9.8% renewable energy achieved through biomass fuel at Sricity

Social Achievements

• 35,757 total training hours delivered (average 12.30 hours per employee)
• 100% of employees receive retirement benefits
• ₹20.8 Mn CSR spend
• Empowered 160 underprivileged girls through collaboration with Need Base India

Governance Achievements

• Updated and reintroduced Code of Conduct and Whistle Blowing Policy
• 95% of employees completed Code of Conduct training
• 15 complaints received under Whistle Blower/Vigil mechanism

Climate Goals & Targets

Environmental Challenges

• Steep increase in raw material prices
• Lengthening supply chains
• Rising product-to-paper packaging ratio
• Unprecedented rise in price and hindered supply of raw materials
• Persistent competition in different regions
• Rise in cost of production (raw materials, transportation, energy)

Mitigation Strategies

• Proactive planning and value engineering
• Cost optimization initiatives ('Project Parivartan')
• Stronger price realization
• Better quality of growth
• Improving efficiency of manufacturing network
• Overall manufacturing productivity improvement
• Reducing wastages from operations
• Leveraging expertise and resources of Huhtamaki Oyj
• Investments in digital printing technology
• Recycling programs for used packaging materials
• Sponsoring Huhtamaki Foundation to recycle post-consumer multi-layered plastic waste

Supply Chain Management

Supplier Audits: SMETA audits (most plants)

Responsible Procurement

• Code of Conduct for Huhtamaki Suppliers
• NAVEX RiskRate tool for supplier screening

Climate-Related Risks & Opportunities

Physical Risks

• Extreme environmental changes

Transition Risks

• Government regulations and norms on climate and emissions

Opportunities

• Transition to low-carbon fuels
• Increased renewable energy

Reporting Standards

Frameworks Used: BRSR

Certifications: ISO 45001 (6 factories), BRCGS, ISO 9001

UN Sustainable Development Goals

• 1
• 2
• 3
• 4
• 5
• 6
• 7
• 8
• 9
• 10
• 11
• 12
• 13
• 14
• 15
• 16
• 17

Various initiatives contribute to the UN SDGs as mentioned throughout the report.

Sustainable Products & Innovation

• Plastic-free soap wrappers
• Recyclable packaging for health drinks and coffee

Awards & Recognition

• WorldStar Awards
• IFCA Star Awards
• The Economic Times Polymers Awards
• DOW Packaging Innovation Awards

Environmental Metrics

ESG Focus Areas

• Product safety
• Materials management
• Energy
• Climate and emissions
• Transition to a circular economy
• Waste and recycling
• Water
• Human rights
• Diversity and equal opportunity
• Employee attraction and retention
• Employee training
• Labour retention
• Occupational health and safety
• Supply chain and responsible sourcing
• Customer satisfaction
• Anti-corruption and ethics

Environmental Achievements

• 20% absolute reduction in Scope 1+Scope 2 emissions vs. 2022
• 98.6% recycling of non-hazardous waste
• 10% of material usage from renewable or recycled sources
• Four sites achieved Zero Liquid Discharge (ZLD) status

Social Achievements

• 100% of permanent employees covered by health insurance
• 100% return to work and retention rate for employees on parental leave
• Various CSR projects benefiting communities (e.g., school supplies, water filters)

Governance Achievements

• Zero cases of disciplinary action against Directors/KMPs/employees/workers for bribery/corruption
• Zero complaints regarding conflict of interest of Directors and KMPs

Climate Goals & Targets

Environmental Challenges

• Product safety risks impacting reputation and sales
• Material management challenges related to product damage and waste
• Energy efficiency improvements needed to offset emissions from growth
• Climate change risks impacting raw material procurement, production, and supply chain
• Challenges in transitioning to a circular economy due to single-use packaging
• Water scarcity risks disrupting manufacturing activities
• Supply chain disruptions
• Occupational health and safety risks

Mitigation Strategies

• Stringent quality control methods and formal testing processes
• Focus on sustainable packaging solutions
• Global energy plan to enhance energy efficiency and increase renewable energy share
• Identifying and evaluating climate change risks and taking mitigating actions
• Focusing on recyclable, compostable, or reusable products and minimizing environmental footprint
• Water management strategies to control and reduce impacts on water resources
• Enhanced supply chain due diligence methodology
• Developing a safe work culture and integrating safety across the company

Supply Chain Management

Supplier Audits: All key suppliers screened using NAVEX RiskRate tool; SMETA audits for all plants except one recently commissioned

Responsible Procurement

• Huhtamaki Code of Conduct for Suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme environmental changes disrupting raw material procurement, production, and supply chain

Transition Risks

• Government regulations and norms on climate and emissions

Opportunities

• Shifting towards renewable energy lowering maintenance costs and contributing to a sustainable ecosystem

Reporting Standards

Frameworks Used: BRSR

Certifications: ISO 9001, BRCGS Packaging, ISO 45001, ISO 14001, ISO 22000, SMETA

Third-party Assurance: Third-party assurance for environmental reporting

UN Sustainable Development Goals

• 1.2
• 1.4
• 2.3
• 3.2
• 3.3
• 3.4
• 3.5
• 3.6
• 3.8
• 3.9
• 4.3
• 5.1
• 5.2
• 5.4
• 5.5
• 6.3
• 6.4
• 6.6
• 6.A
• 7.2
• 7.3
• 8.2
• 8.3
• 8.4
• 8.5
• 8.6
• 8.7
• 8.8
• 9.1
• 9.4
• 9.5
• 10.3
• 11.2
• 11.6
• 12.2
• 12.4
• 12.5
• 12.8
• 13.1
• 13.2
• 14.2
• 14.3
• 15.1
• 15.2
• 15.5
• 16.1
• 16.3
• 16.5
• 16.6
• 16.7
• 16.10

Various initiatives contribute to these SDGs as detailed in the report

Sustainable Products & Innovation

• Mono-material laminates recyclable in the Indian ecosystem

Awards & Recognition

• Not disclosed