Climate Change Data

Klöckner Pentaplast

Climate Impact & Sustainability Data (2020, 2021)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:2,206,115 tCO2e/year (Scope 1,2,3)
Scope 1 Emissions:23,865 tCO2e/year
Scope 2 Emissions:214,064 tCO2e/year
Scope 3 Emissions:1,968,186 tCO2e/year
Renewable Energy Share:25.6%
Total Energy Consumption:760,402,425 kWh/year
Waste Generated:49,813,488 kg/year

ESG Focus Areas

  • Close the Loop
  • Work Smarter
  • Act Responsibly

Environmental Achievements

  • CO2 emissions fell 14% year on year
  • Incorporated more than 120,000 tonnes of recycled PET (rPET) into products
  • 21.5% of the inputs in our plastic packaging were made up of post-consumer recycled polymers
  • 11 sites achieved zero waste to landfill status
  • 330k tonnes of CO2 emissions avoided by using recycled material
  • 25.6% of our electricity sourced from renewables

Social Achievements

  • Achieved Gold status in EcoVadis ratings
  • Reduced the number of injuries, and experienced no fatalities. Our all injury rate (AIR) for 2020 was 2.52, down 16% from 2019

Governance Achievements

  • Launched Investing in Better sustainability strategy with ten ambitious goals
  • Integrated sustainability goals into refinancing with an ESG-Ratchet Linked Term Loan

Climate Goals & Targets

Medium-term Goals:
  • Increase energy efficiency by 17% against a 2019 baseline by 2025
  • Reduce Scope 1 and 2 emissions by 50% by 2025, and Scope 3 emissions by 20% per tonne of product sold by 2030, against a 2019 baseline
  • Use at least 30% post-consumer recycled material in packaging by 2025
  • At least 30% of post-consumer recycled material in packaging from kp Tray2Tray™ by 2025
  • 100% of packaging recyclable by 2025
Short-term Goals:
  • Reduce lost-time accident rate to zero by 2025
  • Increase percentage of women at management levels to exceed 30% by 2025
  • Improve employee engagement score to over 80% by 2025
  • Send zero waste to landfill or incineration without energy recovery by 2022
  • 100% of kp plants will complete at least one impactful community project annually by 2022, doubling that by the end of 2025

Environmental Challenges

  • Supply chain disruptions due to COVID-19 pandemic
  • Increasing demand and cost of recycled PET bottle flake
  • Strict regulations on recycled content in medical product packaging
  • Need to increase recycling rates and infrastructure globally
Mitigation Strategies
  • Launched kp Tray2Tray™ initiative to utilize tray flake for recycled material
  • Investing in new technologies and partnerships for better raw material use
  • Working with industry to improve availability of recycled tray flake
  • Developing recyclable alternatives to vinyl (PVC)
  • Engaging with governments on viable options for replacing vinyl
  • Simplifying material range, focusing on mono-materials
  • Improving on-pack recycling messaging

Supply Chain Management

Responsible Procurement
  • Supplier Code of Conduct (aligned with UN Guiding Principles on Business and Human Rights and ILO Core Conventions)

Climate-Related Risks & Opportunities

Opportunities
  • Expanding renewable energy use
  • Developing energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards: Core option, Value Reporting Foundation principles

Certifications: ISO 50001 (Energy Management), ISO 14001 (Environmental Management system), ISO 9001 (Quality)

Third-party Assurance: DNV Business Assurance Services UK Limited

Sustainable Products & Innovation

  • kpNext® (pharmaceutical blister packaging)
  • ShoreCycle™ (ocean-bound plastics)
  • SmartCycle® (recyclable label)
  • kp Infinity™ (fully recyclable food-to-go packaging)
  • kp MonoSeal™ (recyclable PET rigid film)
  • kp Elite® trays (lightweight trays made with up to 100% recycled PET)

Awards & Recognition

  • EcoVadis Gold award
  • Innovations in Packaging Award (kp Infinity™)
  • Footprint Awards 2020 Design & Marketing Award (kp Infinity™)
  • FPA Awards 2020 Product Innovation Award (kp Infinity™)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:2,318,112 tCO2e (location-based) / 2,279,456 tCO2e (market-based)
Scope 1 Emissions:21,967 tCO2e
Scope 2 Emissions:207,520 tCO2e (location-based) / 198,181 tCO2e (market-based)
Scope 3 Emissions:2,088,625 tCO2e (location-based) / 2,059,309 tCO2e (market-based)
Renewable Energy Share:28%
Total Energy Consumption:749,935 MWh
Water Consumption:3,065,305 m3
Waste Generated:54,284,812 kg

ESG Focus Areas

  • Close the Loop
  • Work Smarter
  • Act Responsibly

Environmental Achievements

  • Increased energy efficiency by 2% against a 2019 baseline.
  • Reduced Scope 1 and 2 emissions by 24% versus 2019 levels.
  • Sent zero waste to landfill or incineration without energy recovery at 15 out of 29 sites.
  • Used 23.3% PCR material in plastic packaging (2020: 21.5%).
  • 7.3% of recycled material came from kp Tray2Tray® (2020: 3%).

Social Achievements

  • Reduced lost-time accident rate to 0.33 (2020: 0.33).
  • Increased percentage of women in management roles to 23.9% (2020: 23.6%).
  • Employee engagement score remained at 75%.

Governance Achievements

  • Established a Sustainability Committee.
  • Maintained Gold rating on EcoVadis.

Climate Goals & Targets

Long-term Goals:
  • Use at least 30% post-consumer recycled material in packaging by the end of 2025.
  • At least 30% of the post-consumer recycled material in packaging will be from kp Tray2Tray® initiative by the end of 2025.
  • 100% of packaging will be recyclable by the end of 2025.
Medium-term Goals:
  • Reduce Scope 1 and 2 emissions by 50% by the end of 2025.
  • Reduce Scope 3 emissions by 20% per tonne of raw materials by 2030.
Short-term Goals:
  • Send zero waste to landfill or incineration without energy recovery at all sites by the end of 2022.
  • Increase energy efficiency by 17% against a 2019 baseline by the end of 2025.
  • Reduce lost-time accident rate to zero by the end of 2025.
  • Increase percentage of women at management levels to exceed 30% by the end of 2025.
  • Improve employee engagement score to over 80% by the end of 2025.
  • 100% of kp plants will complete at least one impactful community project annually by the end of 2022, doubling that by the end of 2025.

Environmental Challenges

  • Supply chain disruptions due to the pandemic, transport disruption, and geopolitical events.
  • Availability and cost of PCR material.
  • Limited local recycling infrastructure in some areas.
  • Achieving energy reduction target due to customers' demand for thinner and lighter products.
Mitigation Strategies
  • kp Tray2Tray® initiative.
  • Investment in super-cleaning technology.
  • Adoption of digital marking.
  • Sourcing locally to keep costs stable.
  • Global Energy Task Force.
  • Energy-saving projects.
  • Investment in renewable energy.
  • Zero Waste programme.

Supply Chain Management

Supplier Audits: 58% of procurement spend acknowledged kp Supplier Code of Conduct by the end of 2021.

Responsible Procurement
  • Sustainable Procurement Policy (2021)
  • Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
Transition Risks
  • Regulatory changes
Opportunities
  • Energy efficiency projects
  • Renewable energy

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 50001 (5 sites), ISO 14001 (10 sites), EMAS (1 site), RecyClass

Third-party Assurance: DNV Business Assurance Services UK Limited

UN Sustainable Development Goals

  • Goal 7 (Affordable and clean energy)
  • Goal 9 (Industry, innovation, and infrastructure)
  • Goal 12 (Responsible consumption and production)
  • Goal 13 (Climate action)

kp's initiatives contribute to these goals by reducing emissions, increasing energy efficiency, promoting circular economy, and using recycled materials.

Sustainable Products & Innovation

  • kpNext® R1
  • kpNext® RB5
  • kp Elite®
  • kp Infinity®
  • kp Zapora®
  • SmartCycle®

Awards & Recognition

  • EcoVadis Gold rating
  • WorldStar Award (kp Zapora®)
  • PAC Global Award (kp Zapora®)
  • Energy Institute’s Energy Management Award (finalist)