Climate Change Data

CPI Card Group Inc.

Climate Impact & Sustainability Data (2021, 2023)

Reporting Period: 2021

Environmental Metrics

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Launched a third card type in its eco-focused card portfolio, broadening customer choice for reducing first-use plastic in payment cards; sold nearly 50 million eco-focused payment cards since 2019.
  • Significantly expanded diversion of scrap away from landfills for reuse.
  • Conducted an analysis on greenhouse gas emissions for key products to identify areas for improvement.
  • Estimated a 15% increase in waste recycled in 2021 due to new initiatives at Colorado and Indiana sites.

Social Achievements

  • Maintained prioritization of employee safety during the COVID-19 pandemic.
  • Built employee engagement events encouraging employees to reduce first-use plastic and participate in charitable giving.
  • Continued donations to support plastic collectors in Haiti following a devastating earthquake and political unrest; donated >$230,000 to the First Mile Coalition.

Governance Achievements

  • Strengthened safety leadership with a corporate Environmental, Health, and Safety leader.
  • Implemented an enterprise-wide environmental health and safety program to limit workplace safety incidents and comply with environmental standards.
  • Maintained a robust data privacy and security program.

Climate Goals & Targets

Environmental Challenges

  • Impact of the ongoing COVID-19 pandemic.
  • Tight labor market.
  • Disrupted supply chains, including a global microchip shortage.
Mitigation Strategies
  • Executed pandemic preparedness plan based on federal, state and local guidelines.
  • Implemented initiatives to materially decrease the amount of production waste sent to landfills.
  • Worked closely with the First Mile team and supplier in Haiti to continue sourcing recovered ocean-bound materials while keeping employees safe.

Supply Chain Management

Responsible Procurement
  • Supplier Code of Conduct addressing human rights, health and safety, environment, and business ethics; Statement on Conflict Minerals; Statement on Efforts to Combat Human Trafficking and Slavery.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Sustainable Development Goals

Certifications: ICMA EcoLabelStandard Program

Sustainable Products & Innovation

  • Second Wave® card (recovered ocean-bound plastic)
  • Earthwise® cards (recycled rPET-G and PVC)

Awards & Recognition

  • Gold Stevie Award (Earthwise rPET-G card)

Reporting Period: 2023

Environmental Metrics

ESG Focus Areas

  • Environmental Sustainability
  • Employee Well-being
  • Supply Chain Responsibility
  • Community Engagement

Environmental Achievements

  • Sold more than 100 million eco-focused cards since 2019.

Social Achievements

  • Transitioned temporary worker positions to permanent employee positions in Prepaid Debit Card locations to better manage workforce and operations.
  • Focus on a diverse and inclusive workplace; nearly half of employees are women and approximately 60% identify as being within a minority category.

Governance Achievements

  • Active involvement of the board of directors and management in oversight of risk management program, including cybersecurity.

Climate Goals & Targets

Environmental Challenges

  • Sales declined 7% in 2023 due to customer caution in spending because of macroeconomic concerns and inventory reduction.
  • Supply chain disruptions due to global supply shortages (especially microchips).
  • Increasing focus on ESG factors and meeting stakeholder expectations.
Mitigation Strategies
  • Increased prices to maintain margins.
  • Entered into a capacity reservation agreement with a chip supplier to reserve production capacity.
  • Implemented ESG strategies, including offering more eco-focused solutions.

Supply Chain Management

Responsible Procurement
  • Works with First Mile® to source ROBP from low-income communities.
  • Member of NextWave Plastics initiative to develop ocean-bound plastic supply chains.

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events impacting raw material availability and cost, customer demand, and facility operations.
Transition Risks
  • Climate change regulations impacting production costs and processes.
Opportunities
  • Development and sale of eco-focused cards.

Reporting Standards

Frameworks Used: ICMA EcoLabel Standard Program

Certifications: ICMA EcoLabel Standard Program (for Second Wave® and Earthwise® cards)

Sustainable Products & Innovation

  • Second Wave® cards (ROBP)
  • Earthwise® cards (recycled plastic)