Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• 99.9% of waste recycled, recovered or reused
• 100% suppliers screened for environmental and social impact
• Life Cycle Assessment study launched

Social Achievements

• More than 30% of women in managerial positions
• Covid-19 response maintained supply, delivery chains as well as employee health & safety

Governance Achievements

• New member of the AFP Group: Top System Tarnowo Podgórne - Poznan, Poland

Climate Goals & Targets

Environmental Challenges

• Covid-19 pandemic impacting supply chains and consumer behavior
• Maintaining employee safety during the pandemic
• Supply chain disruptions due to pandemic-related border rules
• Raw material price volatility
• Risks related to acquisitions
• Governance risks (violating stock market regulations, market abuse, reputation risks)
• Environmental risks (natural disasters, industrial spills, energy source reliability)
• Social risks (health and safety during pandemic, employee training challenges, privacy risks)

Mitigation Strategies

• Established a task force to coordinate Covid-19 response
• Implemented remote work and safety protocols
• Comprehensive testing and tracing for employees
• Close monitoring and management of supply chain
• Selecting high-quality suppliers
• Applying high production quality standards
• Adequate quality checks
• Setting goals and applying relevant standards
• Closely monitoring and analyzing markets
• Ensuring high internal governance standards
• Organizing ad-hoc committees
• Educating employees on critical topics
• Harmonizing group policies
• High-quality internal and external audits
• Installing adequate protective equipment
• Assuring proper health and safety measures
• Adequate insurance
• Identifying and monitoring industrial spill risks
• Fostering innovation and development
• Maintaining high health and safety standards
• Conducting external GDPR assessment audit
• Getting certified by ISO 27001

Supply Chain Management

Supplier Audits: 100% suppliers screened

Responsible Procurement

• Supplier Code of Conduct
• Quality, supply and confidential Agreements with customers and suppliers
• Product and material Specifications
• Compliance declarations with local and international regulations

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 9001:2015, ISO 14001:2015, BRCGS issue 6:2019, SMETA, EcoVadis, FSC

UN Sustainable Development Goals

• SDG 8
• SDG 9
• SDG 12
• SDG 13
• SDG 5
• SDG 16
• SDG 17

Sustainable Products & Innovation

• More sustainable packaging (layers, sizes)
• New products and improved existing products in terms of environmental performance
• Increased use of ASI aluminium
• Increased use of FSC certified paper
• Use of PVC-free lacquers and inks
• Thinner raw materials
• New aluminium containers with heat seal lacquer
• Two-ply aluminium-based laminates
• Mono-material pouches and laminates
• Mono-plastic lids
• Pure paper packaging
• Paper tapes

Environmental Metrics

ESG Focus Areas

• Climate Care
• Drive Circularity
• Act Responsibly
• Transparent Foundation

Environmental Achievements

• Reduced GHG emissions intensity (Scope 1+2) from 323 kt CO2/AFP unit in 2021 to 301 kt CO2/AFP unit in 2022.
• Waste diversion rate of 75.4% in 2022 (75.1% in 2021).
• Reduced water usage by 7% at the group level compared to 2021.

Social Achievements

• Launched the Innovation Challenge, collecting nearly 100 employee ideas for improvement.
• Conducted a Great Place to Work employee satisfaction survey and implemented action plans based on the results.
• Increased salaries and implemented various bonuses and health-related benefits.

Governance Achievements

• Appointed a Group Head of Sustainability.
• Implemented integrated ESG software solutions to streamline data collection and reporting.
• Incorporated specific ESG goals into the management compensation structure.

Climate Goals & Targets

Environmental Challenges

• Global inflationary trends and restricted availability of raw materials.
• Rapidly changing regulations in the packaging industry (e.g., PPWR).
• Reducing overall carbon footprint and achieving net-zero emissions by 2050.

Mitigation Strategies

• Developed strong supplier networks and integrated value chains.
• Developed circular solutions for product portfolio and engaged customers in developing sustainable packaging.
• Participated in the Science-Based Targets initiative (SBTi) and joined the Carbon Disclosure Project (CDP).

Supply Chain Management

Supplier Audits: All key suppliers audited on-site or through self-evaluation questionnaires.

Responsible Procurement

• Sustainability Procurement Policy launched in 2022; adherence to Aluflexpack’s ethical standards; responsible sourcing of aluminium materials certified against ASI standards.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 9001, ISO 14001, ISO 45001 (Drniš plant), ASI Performance Standard V3 (Drniš and Process Points System plants), EcoVadis Gold medal

Third-party Assurance: None

UN Sustainable Development Goals

• SDG 4
• SDG 5
• SDG 6
• SDG 7
• SDG 8
• SDG 9
• SDG 12
• SDG 13
• SDG 16
• SDG 17

Sustainable Products & Innovation

• Monomaterial laminates and pouches; mono-PP lids; containers and capsules with PVC-free lacquers; capsules and containers with recycled content; thinner pouches and aluminium foils.

Environmental Metrics

ESG Focus Areas

• Climate Care
• Drive Circularity
• Act Responsibly
• Transparent Foundation

Environmental Achievements

• 90.3% renewable electricity in electricity mix
• 4.8% Scope 1+2 emission intensity decrease (year-on-year)
• 0.031 tCO2e/1000m² Scope 1+2 emission intensity (per material throughput)
• 24% less waste sent to disposal
• 90.5% waste diversion rate
• 85% of portfolio has recyclable solutions
• 90% product LCA coverage

Social Achievements

• Wellbeing Strategy established
• New HSE Policy & HSE Booklet
• Newly updated Human Rights Policy
• 90% excellence in customer feedback
• LTIR of 4.6 in 2023 (Lost Time Injury Rate)
• 90.3 training hours per employee

Governance Achievements

• Committed to Science Based Targets initiative (SBTi) Near-Term and Net-Zero Standard
• EcoVadis Gold medal (for Aluflexpack Novi)
• Integration of sustainability criteria in existing syndicated credit lines of €100m

Climate Goals & Targets

Environmental Challenges

• Scope 3 emissions from procurement of aluminum foil
• Supply chain disruptions
• Geopolitical instabilities
• Price volatility
• Data limitations in previous years' reporting (emissions and water consumption)

Mitigation Strategies

• Enhancing efforts to collect more detailed Scope 3 data
• Collaboration with stakeholders along the value chain
• Careful selection and supplier diversification
• Implementation of weighing procedures at AFP Poland
• Improved waste segregation practices
• Development of low-carbon aluminum solutions
• Use of aluminum with 90% recycled content
• Implementation of a comprehensive energy management system at Umag plant

Supply Chain Management

Supplier Audits: Major suppliers successfully audited

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001, ISO 45001, ASI Performance Standard

Third-party Assurance: None

UN Sustainable Development Goals

• Goal 8
• Goal 12
• Goal 13
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 9
• Goal 16
• Goal 17

Aluflexpack's initiatives contribute to these goals through various programs and practices detailed in the report.

Sustainable Products & Innovation

• Low-carbon aluminum products
• Recycled-content aluminum products
• Mono-material laminates and pouches
• Aluminum containers redesigned for full recyclability
• Mono-PP lids