Climate Change Data

Elopak ASA

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Renewable Energy Share:93% (Scope 2)

ESG Focus Areas

  • Climate change
  • Circular economy
  • Sustainable packaging
  • Human rights
  • Responsible sourcing

Environmental Achievements

  • Launched Pure-Pak® eSense, an aluminium-free carton with a 50% lower carbon footprint compared to a conventional aseptic carton.
  • Increased Scope 1 and 2 emissions reduction.
  • Achieved 93% renewable energy share in Scope 2.
  • Used 100% renewable materials in all milk cartons in Europe.
  • Introduced cartons made with Natural Brown Board, which has a lower carbon footprint.

Social Achievements

  • 93% of employees completed Code of Conduct training.
  • Maintained a positive and adaptive work environment in Ukraine despite the war.
  • Launched a new Employee Value Proposition “Make it real” in 2022.
  • Conducted a Pulse Survey showing Elopak as a “good place to work (eNPS = 5)”.

Governance Achievements

  • Rolled out an updated Code of Conduct in 2022.
  • Established a common framework for managing human rights risks.
  • Conducted a high-level human rights assessment.
  • Implemented a long-term plan and supportive strategy for workplace safety.

Climate Goals & Targets

Long-term Goals:
  • Net-Zero emissions by 2040
  • Reduce GHG emissions across all scopes by 90% by 2050
Medium-term Goals:
  • 2-3% organic revenue growth p.a.
  • 14-15% adjusted EBITDA margin
  • Reduce absolute scope 1 and 2 GHG emissions by 42% by 2030 (from a 2020 base year)
  • Reduce scope 3 (value chain) GHG emissions by 25% by 2030 from a 2020 base year
  • 100% renewable or recycled materials in cartons on the EU market by 2030

Environmental Challenges

  • Geo-political situation, vulnerable environment, raw material and supply chain constraints, macro-economic uncertainty, and accelerated inflationary pressures.
  • War in Ukraine resulted in instability and supply chain disruptions.
  • Global paperboard supply constraints.
  • Supply chain disruptions leading to a challenging sourcing situation for packaging raw materials and filling machine parts.
  • Inflationary pressure on raw materials and other costs.
Mitigation Strategies
  • Implemented price increases to compensate for increased costs.
  • Broadened geographical footprint through acquisitions in MENA and India.
  • Proactive purchasing and supply chain management to mitigate supply issues.
  • Planning of inventory, moving inventory internally, switching supplier plants, and changing suppliers.
  • Developing alternative sourcing strategies.
  • Commodity hedging for LDPE, aluminium, and energy.
  • Price adjustment mechanisms in some customer agreements.
  • Continuous improvements in plant efficiency and reduced waste levels.
  • Opened a new High Bay Warehouse to improve logistics and efficiency.

Supply Chain Management

Responsible Procurement
  • Raw Material Sourcing Policy
  • Global Supplier Code of Conduct
  • Sustainability Program
  • Third-party certification schemes

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • Floods
  • Droughts
  • Wildfires
  • Water shortages
Transition Risks
  • Changing landscape for packaging regulations
  • Competition from other low-carbon packaging alternatives
  • Constrained access and price fluctuations for low-emission materials
  • Technological developments for carton recycling
Opportunities
  • Offering low-carbon and circular alternatives
  • Rising costs related to CO2

Reporting Standards

Frameworks Used: GRI

Sustainable Products & Innovation

  • Pure-Pak® eSense
  • Cartons made with Natural Brown Board
  • Pure-Pak® solution in North American fresh markets

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:550,802 tCO2e/year (Scope 1,2,3)
Scope 1 Emissions:4,731 tCO2e/year
Scope 2 Emissions:987 tCO2e/year (market-based)
Scope 3 Emissions:545,085 tCO2e/year
Renewable Energy Share:100% (Scope 2)
Total Energy Consumption:118,043 MWh/year
Water Consumption:60,704 m3/year
Waste Generated:35,852 tons/year
Carbon Intensity:0.50 gCO2e/carton (2023)

ESG Focus Areas

  • Climate change
  • Circularity
  • Nature
  • People
  • Financial stability
  • Growth

Environmental Achievements

  • 33% decrease in scope 1 and 2 greenhouse gas emissions from 2020
  • 100% renewable electricity used
  • 2% reduction in total scope 3 emissions from 2020 baseline
  • More than 2,100 tons emission reduction from introduction of brown board

Social Achievements

  • 94% of employees completed Code of Conduct training
  • Total Recordable Incident rate of 3.8
  • Launched first graduate program

Governance Achievements

  • Received an A+ score for ESG reporting from Position Green (top 5%)
  • Achieved an EcoVadis Gold rating (top 2%)

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2050
Medium-term Goals:
  • 42% reduction of Elopak’s direct emissions (scope 1 and residual scope 2) by 2030
  • 25% reduction of value chain emission (scope 3) by 2030
  • 100% renewable or recycled content materials in all beverage cartons on the European market, and available in other markets, by 2030
Short-term Goals:
  • 50% of all fresh milk cartons in Europe fully renewable by 2025

Environmental Challenges

  • Inflationary pressures and market fluctuations affecting consumption
  • Global supply chain disruptions
  • Tight labor markets
  • Risks related to physical climate change (flooding, drought, wildfires)
  • Risks and opportunities related to the shift toward a more climate-friendly future (regulatory or technological development)
  • Dependency on raw materials (board, plastic resin, aluminum foil, energy)
  • Cyber security risks
  • Geopolitical risks impacting performance
Mitigation Strategies
  • Right prioritization, continued market interest in offering, conscious pricing policy
  • Recruitment, culture development, and promotion to attract and retain talent
  • Proactive risk management
  • Pricing governance to battle cost inflation
  • Continuous improvements in plant efficiency
  • Initiatives to enhance fill rate of transportation system, optimize transport routes, and achieve higher pallet load
  • Cyber security measures, employee training, and insurance policy
  • Monitoring and assessing material risks in all geographical areas

Supply Chain Management

Supplier Audits: 75% of total spend assessed by EcoVadis or internal questionnaire

Responsible Procurement
  • Global Supplier Code of Conduct
  • Supplier assessment questionnaire (SAQ) including human rights and labor questions
  • Capacity building and maturity assessments for key suppliers

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather
  • Floods
  • Droughts
  • Wildfires
  • Water shortages
Transition Risks
  • Competition from low-carbon alternatives
  • Changing packaging regulations
  • Technological developments for carton recycling
  • Constrained access to low-emission materials
Opportunities
  • Offering low-carbon and circular alternatives
  • Rising costs related to CO2 emissions

Reporting Standards

Frameworks Used: GRI, TCFD, UN SDGs, ESRS

Certifications: FSC™, ISCC PLUS, ISO 9001, ISO 14001, ISO 45001/OHSAS 18001, ASI

Third-party Assurance: PwC (limited assurance on GHG statement)

UN Sustainable Development Goals

  • Goal 8
  • Goal 12
  • Goal 13
  • Goal 17

Elopak's initiatives contribute to these goals through responsible business practices, sustainable resource management, climate action, and stakeholder collaboration.

Sustainable Products & Innovation

  • Pure-Pak® eSense (aluminum-free aseptic carton)
  • D-PAK™ cartons for non-food products

Awards & Recognition

  • A+ ESG reporting score from Position Green
  • EcoVadis Gold rating