Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability

Environmental Achievements

• Published fifth annual Sustainable Development Report
• Continued investment in state-of-the-art equipment for high-quality, multi-colored packaging
• €115 million project in the UK to rebuild and install a modern, lightweight recycled containerboard machine

Social Achievements

• Numerous customer and industry awards received
• Initiatives in Latin America focused on education, environmental protection, and responsible leadership in communities
• Over 211,000 people attended SKG-organized health clinics in Venezuela since 2009

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Declining OCC and testliner prices
• Weakening global economy
• Margin compression in recycled paper operations
• Lower margins in Latin America due to one-off events
• Slowing market in Europe
• Reduced recycled containerboard prices due to lower OCC prices
• Challenging economic environment in Argentina
• Prolonged strike in Argentina
• One-off costs in Venezuela (mill maintenance, industrial relations issues)
• Temporary shutdown of kraftliner mill in France due to black liquor tank collapse

Mitigation Strategies

• Cost take-out program (€100 million in 2011, €45 million in H1 2012, targeting €50 million more in H2 2012)
• Price increase of €40 per tonne for kraftliner in Q2, and further increase of €50 per tonne announced for September
• Price increase of €100 per tonne for all recycled containerboard grades, starting September 1, 2012
• Focus on maximizing returns and operating efficiencies in Europe
• Continued focus on cash management
• Geographic diversification in Latin America
• Higher productivity levels, pricing progress, and cost take-out actions in Latin America
• Estimate that the mill shutdown in France will have no material effect on 2012 results

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

• Shelf Ready packaging

Awards & Recognition

• Numerous customer and industry awards

Environmental Metrics

ESG Focus Areas

• Environment
• Social Development
• Sustainability in Business

Environmental Achievements

• Reduced relative fossil CO2 emissions by 21% compared to 2005 (achieving a 20% reduction target six years ahead of schedule).
• 91% of all Group converting operations are certified Chain of Custody under FSC and/or PEFC.
• Reduced COD discharges by 0.4% per tonne of paper and board produced compared to 2012.
• Completion of investments reducing fossil CO2 emissions by a total of 41,000 tonnes annually across multiple mills.

Social Achievements

• 16% reduction in lost time accident frequency rate and 11% reduction in injury severity rate compared to 2012.
• Employee turnover decreased from 4.6% to 4.3%.
• Launched a Group-wide awareness campaign on the Code of Business Conduct.
• Various community investment programs in Colombia and Venezuela, focusing on education and health.

Governance Achievements

• Revised and updated Code of Business Conduct implemented.
• Comprehensive awareness campaign on the Code of Business Conduct initiated.

Climate Goals & Targets

Environmental Challenges

• Fibre availability (influenced by factors like renewable energy policies and competing uses of wood fibres).
• Cost and supply of energy (high energy costs impacting competitiveness).
• Climate policy impact (stricter fossil CO2 emission reduction targets).
• Water availability and discharge impact on the environment.
• Food contact and food safety (ensuring safe and hygienic products from recycled materials).

Mitigation Strategies

• Ownership of forestry in the Americas and relationships with key suppliers.
• Focus on increasing energy efficiency and use of biomass.
• Advocating for competitive energy costs in Europe.
• Investments in energy-efficient systems, alternative energy options, and production efficiencies.
• Water impact assessments, water usage measures, and investments in water treatment plants.
• Following Good Manufacturing Practice and hygiene standards, and engaging in industry initiatives.

Supply Chain Management

Supplier Audits: 50 supplier audits in 2013; 98% of strategic suppliers audited by the end of 2013.

Responsible Procurement

• Sustainable Sourcing Policy
• Audits based on key sustainable sourcing principles
• Risk assessments of suppliers regarding food safety, technical data sheets, material safety, and substances of high concern.

Climate-Related Risks & Opportunities

Transition Risks

• EU climate and energy policies

Opportunities

• Increased demand for sustainable packaging

Reporting Standards

Frameworks Used: GRI 3.1 Guidelines (A+ application level)

Certifications: FSC, PEFC, ISO 14001, ISO 50001

Third-party Assurance: KPMG

Sustainable Products & Innovation

• Catcher Board MB12 (prevents mineral oil migration into food products)
• Freeze & Bake sheet (for cookies)

Awards & Recognition

• Plant of the Year awards (Europe and Americas)
• Excellence in Safety awards (Europe and Americas)
• Sustainability awards (Europe and Americas)
• Global PPI Awards (Roermond mill)
• Award for Smurfit Kappa forestry in Colombia

Environmental Metrics

ESG Focus Areas

• Climate Change
• Forestry
• Water
• Waste
• People

Environmental Achievements

• Exceeded 20% CO2 emission reduction target (21.6% reduction compared to 2005)
• Reduced chemical oxygen demand (COD) in water released into the environment by 28%
• Redirected about half of waste products to other uses within operations
• 97% of packaging to be Chain of Custody certified by the end of 2015 (41% achieved in Europe in 2014)

Social Achievements

• 80% response rate in company-wide employee engagement survey
• 90% of management teams comprised of local employees
• €4 million in charitable donations made by the Group and its foundations

Governance Achievements

• Added to the FTSE4Good Index for implementing best-in-class standards in sustainability and corporate governance

Climate Goals & Targets

Environmental Challenges

• Paper cannot be recycled indefinitely, requiring new fibers
• Non-fibrous materials entering paper production processes
• Waste streams requiring further processing

Mitigation Strategies

• Implementing Chain of Custody certification for virgin and recycled fiber sourcing
• Initiatives to find ways to cut or eliminate waste
• Continuous search for uses for waste streams (incineration or recycling)

Supply Chain Management

Supplier Audits: All strategic suppliers in Europe audited since 2010; audits began in Americas in 2013

Responsible Procurement

• Audits covering social governance (GRI, Sedex, UNGC, CDP)
• Preference for suppliers committed to UNGC principles and reporting to Sedex
• Local procurement where possible

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, UNGC, CDP

Certifications: FSC, PEFC, SFI

Environmental Metrics

ESG Focus Areas

• Sustainable sourcing
• Minimising operational impact
• Helping customers and consumers shrink their environmental footprints
• Supporting employees to reach their full potential

Environmental Achievements

• Reduced fossil CO2 emissions per produced tonne of paper by 22.9% since 2005
• Reduced chemical oxygen demand (COD) in water discharge per produced tonne of paper by 31.9% since 2005
• Reduced waste sent to landfill per produced tonne of paper by 13.3% since 2013
• 90.1% of packaging sold was certified by FSC® or PEFCTM standards

Social Achievements

• Reduced Lost-Time Accident (LTA) frequency rate by 10% in 2016
• Launched Open Leadership training programme in partnership with Insead Business school
• Smurfit Kappa and related foundations donated over €5 million in 2016

Governance Achievements

• Continued listing on the FTSE4Good index, Euronext Vigeo Europe 120 index and inclusion in Ethibel’s sustainable investment register
• First-time inclusion in the STOX X ® Global ESG Leaders index family

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Chain of Custody certified production and purchase of papers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: FSC, PEFCTM

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Forestry
• Climate Change
• Water
• Waste
• People

Environmental Achievements

• Reduced fossil CO2 emissions per produced tonne of paper by 26.1% since 2005 (exceeding 2020 target)
• Reduced chemical oxygen demand in water discharge per produced tonne of paper by 37.5% since 2005 (exceeding 2020 target)
• Reduced waste sent to landfill per produced tonne by 13.3% since 2013

Social Achievements

• Reduced Lost Time Accidents by approximately 9% year on year since 2013 (meeting 5% annual reduction target)
• 84% response rate in MyVoice 2017 employee engagement survey (up from 80% in 2014)
• Smurfit Kappa and its related foundations donated approximately €5 million in 2017

Governance Achievements

• No material fines imposed on the Group for breaches of laws and regulations in 2017
• 90% of strategic and important suppliers carry moderate to low supply chain risk
• No material incidents reported as non-compliant with the Code of Business Conduct in 2017

Climate Goals & Targets

Environmental Challenges

• Reducing waste sent to landfill has been more challenging than anticipated
• Approximately 50% of mills increased waste to landfill while the other 50% reduced it
• Attracting and retaining talent, particularly in rural areas and women
• Global concerns about litter remaining in the environment

Mitigation Strategies

• Strategic partnership with the city of Malaga (Spain) to increase paper recycling
• Investments in more efficient energy production (Nettingsdorf, Austria and Los Reyes, Mexico)
• Initiatives to improve water efficiency and reduce COD discharge
• MyVoice employee engagement survey to identify areas for improvement
• Tailored programmes to promote female recruitment
• Collaboration with suppliers to improve hygiene and environmental management systems

Supply Chain Management

Supplier Audits: 95 supplier audits in 2017 (60% of strategic suppliers)

Responsible Procurement

• Sustainable Sourcing Policy
• Supplier Code of Conduct
• Chain of Custody certification where applicable

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events damaging operating sites and supply chains

Transition Risks

• Volatile carbon prices
• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products and processes
• Increased demand for sustainable packaging

Reporting Standards

Frameworks Used: GRI G4 guidelines (Comprehensive version)

Certifications: FSC, PEFC, SFI Chain of Custody

Third-party Assurance: KPMG (limited assurance)

UN Sustainable Development Goals

• 1, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 15

Initiatives contribute to these goals through sustainable forestry, energy efficiency, water stewardship, waste reduction, employee engagement, and community involvement

Sustainable Products & Innovation

• Kartent cardboard festival tents
• Kraken packaging solution for Mabe appliances

Awards & Recognition

• 43 national and international awards for sustainable packaging solutions
• Portafolio award in Colombia for best social responsibility programme

Environmental Metrics

ESG Focus Areas

• Forest
• Water
• Waste
• Climate Change
• People

Environmental Achievements

• Reduced relative total fossil CO2 emissions in its mill system by 26% in 2017 (target of 25% by 2020, met three years early)
• Reduced chemical oxygen demand in its water (target met three years early)

Social Achievements

• 9% reduction year-on-year in lost time accident frequency rate over the five-year period of 2013-2017 (exceeding the targeted decrease of 5% year-on-year)

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Higher costs in areas such as labor, distribution, wood, and other raw materials
• Price fluctuations in raw materials and energy costs
• Currency exchange rate fluctuations
• Difficulty attracting and retaining suitably qualified employees
• Maintaining good health and safety practices
• Compliance with environmental laws and regulations
• Anti-trust and similar legislation
• Cyber-attacks
• Political situation in Venezuela
• Potential overcapacity in the packaging industry threatening pricing structure
• Economic slowdown due to Brexit or changes in world trade agreements
• Re-emergence or exacerbation of the sovereign debt crisis

Mitigation Strategies

• Input cost recovery initiatives
• Capital spend program
• Ongoing corrugated price recovery
• Lower recovered fibre costs
• Risk management strategies implemented at each level
• Appropriate actions taken to mitigate risks or address potential adverse consequences

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

• Not disclosed

Awards & Recognition

• 39 awards for design, print and sustainability

Environmental Metrics

ESG Focus Areas

• Climate change
• Sustainable packaging
• Circular economy
• People
• Communities

Environmental Achievements

• Reduced scope 1 and 2 fossil fuel based CO2 emissions by 32.9% compared to 2005 levels
• 92.1% of products sold as Chain of Custody certified
• Introduced Better Planet Packaging initiative to reduce packaging waste and address litter

Social Achievements

• Launched 'EveryOne' diversity strategy
• Improved Health and Safety metrics with a 17% reduction in TRIR
• Smurfit Kappa Foundation supported projects in several countries focusing on disadvantaged children

Governance Achievements

• Established a Sustainability Committee
• Refined governance framework to reflect requirements of the 2018 Corporate Governance Code
• Increased final dividend by 12%

Climate Goals & Targets

Environmental Challenges

• Economic slowdown due to geopolitical uncertainty, trade tensions, or the coronavirus outbreak
• Cyclical nature of the packaging industry leading to overcapacity and price pressure
• Potential operational interruptions at key facilities
• Price fluctuations in raw materials and energy costs
• Currency exchange rate fluctuations
• Difficulty attracting and retaining suitably qualified employees
• Growing number of environmental laws and regulations
• Exposure to cyber-attacks
• Climate change impacts (flooding, water shortages, extreme weather)

Mitigation Strategies

• Highly integrated business model
• Focus on FMCG customers with stable consumption
• Geographic diversification
• Cost-cutting measures
• Differentiation programs and low-cost mill systems
• Contingency plans and preventative maintenance
• Dedicated purchasing function and strong supply arrangements
• Forward pricing and cost reduction projects
• Hedging short-term trading exposures and local currency financing
• People Strategy, MyVoice surveys, talent development programs
• Environmental policies, EMS (ISO 14001), environmental data collection
• Information security policies, cyber security framework, business continuity plans

Supply Chain Management

Responsible Procurement

• Sustainability principles and objectives
• Supplier Code of Conduct Policy
• Sustainable Sourcing Policy
• Increased supplier screening on Human Rights

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Water shortages
• Extreme weather events

Reporting Standards

Frameworks Used: GRI Standards, UN Global Compact

Certifications: FSC ®, PEFC™, SFI™, ISO 14001

UN Sustainable Development Goals

• SDG 06
• SDG 16
• SDG 17
• SDG 09
• SDG 01
• SDG 02
• SDG 03
• SDG 04
• SDG 05
• SDG 10
• SDG 08
• SDG 11
• SDG 12
• SDG 15
• SDG 14
• SDG 13
• SDG 07

The report maps its sustainability initiatives against the UN SDGs, indicating alignment across various goals.

Sustainable Products & Innovation

• TopClip
• Safe&Green
• TOPPSafe™
• GreenClip
• TopClip
• Nor-Grip

Awards & Recognition

• 63 national or international awards for packaging innovation, sustainability, design and print

Environmental Metrics

ESG Focus Areas

• Climate Change
• Forest
• Water
• Waste
• Health and Safety
• Diversity and Inclusion
• Community Engagement
• Ethics and Compliance
• Sustainable Sourcing

Environmental Achievements

• 37.3% reduction in fossil fuel emissions intensity since 2005
• 93.8% of packaging solutions sold as Chain of Custody certified in 2020
• 38.2% reduction in Chemical Oxygen Demand intensity since 2005
• 23.7% reduction in waste to landfill intensity compared with 2013
• €134 million investment in a new recovery boiler in Austria, decreasing CO2 emissions by 40,000 tonnes
• New waste sludge press decreased waste sent to landfill in Cali, Colombia by 47%

Social Achievements

• Group-wide COVID-19 Pulse Survey to ensure employee safety, support, and connection
• Set new targets for gender balance (25% women in management by 2024, 30% female representation overall), employee engagement, and diversity and inclusion
• 29% reduction in Total Recordable Injury Rate (TRIR) compared with 2019
• Strategic alliances with The Valuable 500 and Employers Network for Equality and Inclusion
• €7.7 million invested in social projects, plus €3 million for COVID-19 related projects

Governance Achievements

• Established a permanent Sustainability Committee of the Board in 2019
• Aligned financing with sustainability strategy by incorporating key sustainability performance indicators
• Announced support for TCFD recommendations and started reporting in line with SASB criteria

Climate Goals & Targets

Environmental Challenges

• Climate change impacts on operations and supply chain (extreme weather, water scarcity, energy availability)
• Resource limitations (sustainable forest management, competition for biomass)
• Packaging waste and litter
• Attracting talent and maintaining diversity
• Maintaining a strong health and safety culture

Mitigation Strategies

• Net Zero carbon emissions target by 2050, 55% reduction in fossil fuel emissions intensity by 2030
• 100% Chain of Custody certified fibre sourcing
• Responsible water stewardship, water risk assessments
• 30% reduction in waste to landfill intensity by 2025
• Improved energy efficiency, renewable energy use
• Investing in talent management, diversity and inclusion initiatives
• Robust health and safety management system, employee assistance program

Supply Chain Management

Supplier Audits: 46 audits in 2020

Responsible Procurement

• Sustainable and Responsible Sourcing Policy
• Supplier Code of Conduct
• Chain of Custody certification
• Modern Slavery Act Statement

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Flooding
• Water scarcity

Transition Risks

• Carbon regulation and taxation
• Energy availability and affordability
• Competition for biomass

Opportunities

• Development of energy-efficient products
• Circular economy practices

Reporting Standards

Frameworks Used: GRI Standards (Comprehensive), TCFD, SASB

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

Third-party Assurance: KPMG (Limited Assurance)

UN Sustainable Development Goals

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

Smurfit Kappa's initiatives contribute to these goals through its circular business model, responsible resource management, climate action, water stewardship, forest conservation, decent work, health and safety, gender equality, community engagement, and ethical business practices.

Sustainable Products & Innovation

• SafeShield desk dividers
• Paper-based packaging for Morakniv knives
• Grolsch TopClip
• eSmart e-commerce packaging
• ShelfSmart shelf-ready packaging
• Rheem zero-landfill packaging

Awards & Recognition

• Support the Goals five-star rating
• CDP Climate Change A- level rating
• Bogota Elite Environment Excellence Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Forest
• Water
• Waste
• People Values
• People Strategy
• Communities
• Health and Wellbeing
• Innovation
• Governance and Human Rights
• Sustainable and Responsible Sourcing

Environmental Achievements

• 41.3% reduction in relative CO2 emissions since 2005
• 38.5% reduction in relative Chemical Oxygen Demand since 2005
• 29.2% reduction in waste to landfill since 2013
• 6.2% reduction in water consumption from 2020
• 93.45% packaging solutions sold as Chain of Custody certified in 2021

Social Achievements

• 13 percentage points improvement in employee engagement levels
• €4.9m in social investments in 2021
• 92,000 people impacted through our social projects in 2021
• 1.7% global reduction annually in TRIR

Governance Achievements

• Launched Green Finance Framework
• Issued €1 billion in green bonds
• CO2 emission reduction target validated by the Science Based Target initiative

Climate Goals & Targets

Environmental Challenges

• Extreme weather patterns affecting operations and supply chain
• Water scarcity
• Carbon leakage if emission policies are not consistently applied
• Increased competition and higher raw material costs due to government incentives for biomass energy
• EU Green Deal emphasis on removing littering and plastic waste
• Attracting and retaining talent
• Maintaining diversity

Mitigation Strategies

• Water risk assessments at paper mills
• Supporting the EU Green Deal while safeguarding against carbon leakage
• Sourcing sustainable wood and fibre
• Shifting to renewable energy
• Improving recruitment processes
• Introducing flexible working arrangements
• Developing talent management programs
• Strengthening People Strategy with measurable targets

Supply Chain Management

Supplier Audits: 22 in 2021

Responsible Procurement

• Sustainable and Responsible Sourcing Policy
• Supplier Code of Conduct
• CoC certification where applicable
• Modern Slavery Act Statement
• Audits on human rights, labor practices, and environmental impact

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Flooding
• Drought
• Water scarcity

Transition Risks

• Regulatory changes
• Market shifts
• Carbon leakage
• Increased competition for biomass

Opportunities

• Development of energy-efficient products
• Increased demand for sustainable packaging
• New revenue streams from green finance

Reporting Standards

Frameworks Used: GRI Standards (Comprehensive), TCFD, SASB

Certifications: FSC, PEFC, SFI, ISO 14001, ISO 45001, ISO 50001, ISO 22001, FSSC 22000, ISO 9001

Third-party Assurance: KPMG (Limited Assurance)

UN Sustainable Development Goals

• SDG 7
• SDG 12
• SDG 13
• SDG 15
• SDG 6
• SDG 8
• SDG 5
• SDG 3
• SDG 10
• SDG 9
• SDG 4

Smurfit Kappa's initiatives contribute to these goals through various actions related to climate change, responsible consumption and production, forest management, water stewardship, decent work, gender equality, health and wellbeing, community engagement, innovation, and education.

Sustainable Products & Innovation

• Click-to-Lock Box
• Corrugated fruit box for Roberto’s Mangos
• BioShift UV-C Chamber Case

Awards & Recognition

• Five stars from Support the Goals
• Best Sustainable Finance project at the 2021 Treasury Management International Awards
• Vegan Trademark for packaging solution

Environmental Metrics

ESG Focus Areas

• Climate Change
• Forest
• Water
• Waste
• People Values
• People Strategy
• Health, Safety and Wellbeing
• Communities
• Innovation
• Governance and Human Rights
• Sustainable and Responsible Sourcing

Environmental Achievements

• 43.9% reduction in relative CO2 emissions since 2005
• 24% reduction of relative waste sent to landfill since 2013
• 36.9% reduction of relative COD in water discharge since 2005
• 94.3% of packaging sold as CoC certified in 2022
• Successful trial of hydrogen energy production at a paper mill
• €26m of investments in water treatment projects in 2022
• 2.1% reduction in water consumption from 2021

Social Achievements

• 23.5% of management positions held by women
• 109,000 people impacted through social projects in 2022
• 13.6% global reduction in TRIR in 2022
• €18.4 million in social investments 2020–2022
• Launch of SK RISE, a female-only development programme
• Launch of MyHub, a company-wide HR Information System

Governance Achievements

• Continued third-party recognition and awards
• Publication of first Green Bond Allocation and Impact Report
• Improved Climate Change disclosure score from CDP

Climate Goals & Targets

Environmental Challenges

• Climate change impacts (extreme weather, water scarcity, energy availability)
• Deforestation
• Packaging waste and litter
• Water scarcity
• Limits of resources
• Carbon leakage
• Land invasions in Colombia
• Russian operations exit

Mitigation Strategies

• Investments in energy efficiency and renewable energy
• Sustainable forest management
• Improved water treatment and reduced water intake
• Waste reduction and recycling initiatives
• Collaboration with customers and suppliers on sustainability
• TCFD aligned climate-related risk and opportunity disclosure
• Ongoing dialogue with indigenous communities in Colombia
• Orderly exit from the Russian market

Supply Chain Management

Supplier Audits: 121 audit activities in 2022

Responsible Procurement

• Sustainable and Responsible Sourcing Policy
• Supplier Code of Conduct
• CoC certification (where applicable)
• Modern Slavery Act Statement
• Regular audits

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Flooding
• Droughts
• Water scarcity

Transition Risks

• Regulatory changes
• Market shifts
• Carbon regulation and taxation
• Energy availability and affordability

Opportunities

• Development of energy-efficient products
• Bioenergy production
• Circular economy

Reporting Standards

Frameworks Used: GRI Standards, TCFD

Certifications: FSC, PEFC, SFI, ISO 9001, ISO 14001, ISO 45001, ISO 50001, FSSC 22000

Third-party Assurance: KPMG (limited assurance)

UN Sustainable Development Goals

• 7
• 12
• 13
• 15

Alignment with SDGs explained throughout the report

Sustainable Products & Innovation

• TechniPaper® AquaStop™
• Thermo-Sealant™
• Click-to-lock boxes
• Expandable boxes
• Paper-based void fillers

Awards & Recognition

• Walmart Mexico Sustainable Supplier of the Year
• Nutresa Group Exemplary Supplier Award (Environmental and Social Sustainability)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Forest
• Water
• Waste
• Health & Safety
• People
• Communities
• Circularity
• Innovation
• Governance
• Human Rights
• Sustainable Sourcing

Environmental Achievements

• 43.7% reduction in relative CO2 emissions from paper and board mills since 2005
• 35.7% reduction in relative Chemical Oxygen Demand (COD) from paper and board mills since 2005
• 35.8% reduction in relative waste to landfill from paper and board mills since 2013 (ahead of 2025 target)
• 1.8% reduction in water usage intensity in 2023
• 95.5% of packaging solutions sold as Chain of Custody (CoC) certified (ahead of 2025 target)
• €27 million investment in a new waste management facility at Nervión paper mill, Spain
• €5 million investment in a state-of-the-art water treatment plant in Belgrade, Serbia

Social Achievements

• 25.1% of management positions held by women at the end of 2023 (meeting 2024 target)
• 48% reduction in Total Recordable Injury Rate (TRIR) since 2018
• €25.6 million donated to support social, environmental, and community initiatives since 2020 (ahead of 2025 target)
• Launched Smurfit Kappa Newman Fellowship – Women in STEM philanthropic partnership with University College Dublin
• Approximately 6,800 employees participated in 192 open community initiatives

Governance Achievements

• Early adoption of Taskforce for Nature-related Financial Disclosures (TNFD)
• Continued compliance with GRI Standards, TCFD, SASB, and UN Global Compact
• No material breaches of the Code of Conduct in 2023

Climate Goals & Targets

Environmental Challenges

• Climate change impacts on operations and supply chain (extreme weather, water scarcity)
• Deforestation and biodiversity loss
• Water scarcity
• Waste management and reduction
• Attracting and retaining talent
• Maintaining high safety standards
• Ensuring human rights throughout the value chain
• Maintaining transparency and compliance
• EU Packaging and Packaging Waste Regulation (PPWR)

Mitigation Strategies

• Investing in energy-efficient technologies and renewable energy sources
• Sustainable forest management and responsible fibre sourcing
• Water risk assessments and investment in water treatment
• Waste reduction targets and initiatives
• Talent development programs and flexible work arrangements
• Safety for Life program and new safety management system
• Human rights assessments and policy development
• Code of Conduct and SpeakUp service
• Collaboration with stakeholders on PPWR implementation

Supply Chain Management

Supplier Audits: 1,391 suppliers assessed through an external platform, 63 physical audits

Responsible Procurement

• Sustainable and Responsible Sourcing Policy
• Supplier Code of Conduct
• Modern Slavery Act Statement
• CoC certification where applicable

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Water scarcity
• Forest fires

Transition Risks

• Regulatory changes
• Carbon pricing
• Market shifts

Opportunities

• Development of energy-efficient products
• Growth in demand for sustainable packaging

Reporting Standards

Frameworks Used: GRI Standards 2021, TCFD, SASB, UN SDGs, UN Global Compact

Certifications: FSC, PEFC, ISO 14001, ISO 45001

Third-party Assurance: KPMG (limited assurance)

UN Sustainable Development Goals

• SDG 3
• SDG 7
• SDG 8
• SDG 9
• SDG 10
• SDG 12
• SDG 13
• SDG 15

Smurfit Kappa's initiatives contribute to these goals through sustainable practices, community engagement, and responsible business conduct.

Sustainable Products & Innovation

• Better Planet Packaging solutions
• Vitop® Uno tap
• TopClip and Click-to-Lock packaging

Awards & Recognition

• 74 awards for packaging innovation and sustainability
• TIME’s World’s Best Companies
• Sustainability Magazine’s Top 100 Companies
• Morningstar Sustainalytics Industry Top Rated company
• PepsiCo’s Global ‘Supplier of the Year’ award