Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Uses renewable electricity (water power) at Borensberg plant.
• Replaced older fluorescent lamps with energy-efficient lighting in Sweden and Czech Republic plants.
• Recycles most waste plastic material.
• Implemented a sorting manual and educated employees in waste management.

Social Achievements

• Maintains open dialogue with neighbors through annual meetings.
• Sponsors local organizations (floorball, football, gymnastics, etc.) in Sweden and Czech Republic.
• Supports Carlsund Education Centre in Motala, Sweden.
• Offers employees a healthcare benefit to encourage exercise.

Governance Achievements

• Established a Code of Conduct (“The Arla Plast Way”) with ethical guidelines for all employees.
• Trained all employees and agents in “The Arla Plast Way”.
• All pricing and billing is done centrally to mitigate corruption risks.

Climate Goals & Targets

Environmental Challenges

• High sick leave in Sweden and Czech Republic.
• Increased accidents with sick leave in Sweden (though reduced in Czech Republic).
• Energy consumption, hazardous waste.

Mitigation Strategies

• Action plans to reduce sick leave and accidents.
• Internal and external audits, monthly follow-up on energy consumption and hazardous waste.
• Deviation management during the process to measure, follow up and improve.

Supply Chain Management

Supplier Audits: 70% of suppliers had ISO 14001 and ISO 9001 certification in 2018

Responsible Procurement

• Company specified process for supplier selection
• Suppliers committed to complying with international human rights, labor rights and anti-corruption measures

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental Footprint
• Social Responsibility
• Business Ethics

Environmental Achievements

• Reduced energy consumption per kg of plastic produced in Borensberg (0.93 kWh/kg in 2019 to 0.82 kWh/kg in 2020)
• Borensberg facility uses renewable hydropower electricity with zero emissions
• More than half of combustible waste is plastic dust, recycled into raw materials
• Significant reduction in waste oil and other hazardous waste in Borensberg

Social Achievements

• Reduction in accidents with sick leave from 17 cases (2019) to 12 cases (2020)
• Wellness allowance offered to employees to improve health and well-being
• Open dialogue with local community, including annual meetings with neighbors
• Sponsorship of local sports associations and other community initiatives

Governance Achievements

• Review of company policies and governing documents in 2020
• Implementation of a whistleblower function to detect unethical or illegal actions
• Supplier Code of Conduct implemented and monitored; no violations noted in 2020

Climate Goals & Targets

Environmental Challenges

• Higher energy consumption in Pehlrimov due to lower volumes and short product development series
• Higher average oil consumption in Pehlrimov due to lower volume produced
• Increased sickness rate in 2020 due to illness and pandemic-related restrictions

Mitigation Strategies

• Focus on availability to reduce unplanned downtime and fewer start-ups (reducing energy consumption)
• Risk analyses carried out on all work activities and locations to reduce infection risk
• Continued active systematic work environment efforts to reduce accidents

Supply Chain Management

Supplier Audits: 70% of raw material suppliers certified according to ISO14001 and ISO9001 in 2020

Responsible Procurement

• Approved suppliers committed to complying with international human rights, labor law and anti-corruption rules

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 12 (Responsible consumption and production)
• Goal 8 (Decent work and economic growth)
• Goal 11 (Sustainable cities and communities)

Environmental Metrics

ESG Focus Areas

• Environmental footprint
• Social sustainability
• Business ethics

Environmental Achievements

• Increased reuse of regrind in production
• Increased reuse of customers’ used products
• 100% of sites ISO 14001 certified

Social Achievements

• Maintained a good workplace as indicated by employee surveys and reviews
• Zero violations of health and safety legislation
• Supported local communities through sponsorship and initiatives

Governance Achievements

• Established a whistleblower function to detect unethical or illegal conduct
• Supplier monitoring to ensure compliance with Code of Conduct
• Zero serious irregularities reported

Climate Goals & Targets

Environmental Challenges

• Reducing the climate impact of business activities throughout the value chain
• Reducing environmentally hazardous waste

Mitigation Strategies

• Efficient materials handling (reducing regrind generation, increasing reuse)
• Increasing purchase and use of renewable energy
• Improving energy efficiency
• Sustainable product innovation using fossil-free materials
• Waste sorting and employee training in waste management

Supply Chain Management

Supplier Audits: 70% of raw material suppliers certified to ISO 14001 and ISO 9001 in 2021

Responsible Procurement

• Supplier selection process requiring commitment to international human rights, labor law, and anti-corruption rules

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: UN Global Compact, Agenda 2030, Sweden’s climate targets for 2045

Certifications: ISO 14001, ISO 9001, ISO 45001, ISO 50001 (two plants)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Arla Plast contributes to Agenda 2030 and the UN’s Sustainable Development Goals, focusing on those most relevant to its operations.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental footprint
• Social sustainability
• Business ethics

Environmental Achievements

• Reduced energy consumption from 21,256 MWh in 2021 to 17,793 MWh in 2022
• Reduced CO2e emissions from 84,043 tonnes in 2021 to 65,164 tonnes in 2022
• Increased recycled plastics from 6.3% in 2021 to 9.6% in 2022
• Expanded sorting of plastic shavings, previously classified as landfill waste, and now sold for reuse

Social Achievements

• Zero violations of health and safety legislation
• Maintained a good working environment as indicated by employee surveys
• Supported local communities through sponsorships and initiatives

Governance Achievements

• Zero serious irregularities reported
• Zero violations of environmental legislation
• Supplier monitoring ensures compliance with Code of Conduct

Climate Goals & Targets

Environmental Challenges

• Reducing the climate impact throughout the value chain
• Reducing environmentally hazardous waste
• Increasing the purchase and use of renewable energy in Czech Republic plants

Mitigation Strategies

• Cooperation with material suppliers on developing non-fossil or partially fossil-free materials
• Active work on recycling
• Implementing ISO 50001 energy management systems at two out of three plants
• Gradual conversion of forklifts to electric power in Czech Republic

Supply Chain Management

Supplier Audits: 70% of raw material suppliers certified to ISO 14001 and ISO 9001 in 2022

Responsible Procurement

• Supplier selection process requiring commitment to international human rights, labour law and anti-corruption rules
• Requiring major suppliers to read the Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: UN Global Compact, Agenda 2030 and the Sustainable Development Goals (SDGs), GHG Protocol

Certifications: ISO 14001, ISO 9001, ISO 45001, ISO 50001 (two out of three plants)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Arla Plast contributes to Agenda 2030 and the UN Sustainable Development Goals (SDGs), focusing on those most relevant to their business.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• environmental footprint
• social responsibility
• business ethics and code of conduct

Environmental Achievements

• Reduced regrind material generated in production by 7%
• Increased take-back of materials from customers (though overall reuse decreased by 11% due to product mix)
• Reduced electricity consumption per tonne produced by 4%
• Increased share of energy from renewable sources by 32% (87% renewable in 2023)

Social Achievements

• Maintained a Lost Time Injury Rate (LTIR) of 12 (down from 24 in 2022)
• 50% women in Group Management (up from 20% in 2022)
• Sponsored local associations and activities

Governance Achievements

• No incidents of serious irregularities or violations of environmental, health and safety, or business ethics legislation reported in 2023
• All employees trained on The Arla Plast Way (Code of Conduct)

Climate Goals & Targets

Environmental Challenges

• Production of plastic granules (main input) accounts for the largest share of carbon footprint
• Fluctuations in raw material prices
• Market decline in volumes in recent years
• Maintaining competitiveness in a consolidating market

Mitigation Strategies

• Cooperation with suppliers on developing non-fossil or partially fossil-free materials
• Active work on recycling and take-back of materials
• Targeted sales efforts, clear inventory strategy, streamlined operations
• Focus on long-term strategy while remaining adaptable to short-term challenges
• Continuous investment in production equipment and facilities
• Improving efficiency through technological improvements, clear leadership and improved quality

Supply Chain Management

Responsible Procurement

• Only accepting suppliers committed to international human rights, labor law, and anti-corruption rules

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact, Greenhouse Gas Protocol (GHG)

Certifications: ISO 14001, ISO 9001, ISO 45001, ISO 50001 (two of three facilities)

Third-party Assurance: Deloitte Aktiebolag

UN Sustainable Development Goals

• 3
• 4
• 5
• 6
• 7
• 8
• 9
• 10
• 11
• 12
• 13
• 16
• 17

Arla Plast has identified the SDGs that are most relevant to the company and where Arla Plast has the greatest impact and can contribute the most. These are integrated into Arla Plast's systematic improvement efforts and are monitored.