Climate Change Data

Environmental Metrics

ESG Focus Areas

• Greenhouse Gas Emissions
• Nonrenewable Energy Use
• Water Conservation
• Paper and Paperboard Recovery
• Waste Diversion
• Safety
• Forest and Wood-Fiber Certification
• Social Responsibility

Environmental Achievements

• Reduced greenhouse gas emissions by 30% since 2008 and by 3.06% from 2016 to 2017.
• Reduced water effluent by 16% from 2008 to 2016.
• Macon mill generated 509,952 MWH and sold 22,576 MWH back to the grid in 2017.
• 65.8% recovery rate of paper and paperboard in 2017.

Social Achievements

• Increased total spend with certified diversity suppliers from $20 million in 2011 to over $100 million in 2017.
• Reached over 16,000 students globally through the TICCIT program in 2017.
• Worldwide recordable incident rate (TRIR) of 1.13 cases per 100 employees in 2017 (lowest in company history).

Governance Achievements

• Established a formal sustainability program in 2008.
• Established Vision 2025 goals in 2016.
• All global Graphic Packaging converting plants that have been under ownership for over one year will be in compliance with Social Compliance Sedex® Member Ethical Trade Audit (SMETA) by the end of 2018.

Climate Goals & Targets

Environmental Challenges

• Rising costs of energy
• Supply chain disruptions (implied)
• Waste management in converting operations
• Maintaining access to wood and recovered wood-fiber

Mitigation Strategies

• Formed Energy Usage Reduction team in 2008, investing over $224 million in energy-related projects.
• Developed Supplier Sustainability Guidelines.
• Developed a plan for waste diversion in converting operations, including in-depth analysis and pilot programs.
• Implemented Tri-Certification Chain of Custody (COC) program in 2010, engaging with consultants to assess raw material availability.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Sustainability Guidelines (requiring human rights protection, anti-corruption, conflict mineral avoidance, etc.)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI

Certifications: SFI, FSC, PEFC, RPA-100%, SMETA

Third-party Assurance: Bureau Veritas

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• IntegraFlex packaging
• Paper-based pressed bowls
• Paper cups (Hold&Go)

Awards & Recognition

• NEXTY Award for Best New Packaging Innovation (IntegraFlex)
• Paperboard Packaging Council’s 2017 Packaging Innovation of the Year award (IntegraFlex)
• EPA Pisces Award (Sparta Water Reuse Project)
• Sustainable Solutions Award (Sparta Water Reuse Project)
• Champions of Change Award (Sparta Water Reuse Project)

Environmental Metrics

ESG Focus Areas

• Greenhouse Gas Emissions
• Sustainable Forestry
• Waste and Recovery
• Water and Effluent Management
• Community Engagement
• Diversity and Inclusion
• Employee Health and Safety
• Corporate Governance
• Ethics and Compliance
• Supply Chain Management

Environmental Achievements

• Converted half a billion units of foam and plastic cups to paper.
• Achieved significant SBS mill transformation milestone, with both mills completing major upgrades to improve reliability and performance.
• Announced $600 million investment in new CRB machine that will result in drastic environmental profile improvements.
• Continued $115 million curtain coater investment, resulting in significant environmental profile improvements.
• Completed Phase 1 of the Augusta Mill project 5R, helping the Savannah River basin increase oxygen levels.
• 100% of carton manufacturing plants engaged in a waste diversion program.
• 100% of paperboard mills and carton manufacturing facilities were compliant with a forest/wood fiber certification standard.

Social Achievements

• 89% of folding carton and foodservice manufacturing plants under a SMETA Audit.
• Reduced recordable incident rate to 1.05 from 1.09 in 2018.
• Donated $750,000 to educational organizations.
• Employees donated $419,000 (including 25% match from Graphic Packaging) to various charitable organizations.

Governance Achievements

• $161 million purchased goods and services from diverse suppliers.
• Over 500 diverse suppliers provided quality goods and services.
• 100% of governance bodies educated on anti-corruption policy.
• Global Supplier Code of Conduct updated and incorporated in all contract renewals.

Climate Goals & Targets

Environmental Challenges

• Extended downtime and reliability issues at two SBS mills impacting GHG emissions.
• Potential regulatory or legislative action impacting single-use packaging (SUP) in the foodservice portfolio.
• Increasing stakeholder expectations on disclosures.

Mitigation Strategies

• $600 million investment in new CRB machine to reduce GHG emissions, purchased energy, and water usage.
• $115 million investment in curtain coaters to improve print surface and reduce energy usage.
• Continued innovation to provide advanced solutions addressing recycling and composting expectations for SUP.
• Enhanced transparency and communications platform to meet stakeholder expectations.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Sustainability Guidelines
• Global Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Plastic to paperboard conversion

Reporting Standards

Frameworks Used: GRI Standards: Core option, SASB Containers and Packaging standard, TCFD

Certifications: SFI, FSC, PEFC, RPA-100%

Third-party Assurance: Lloyd’s Registry LLC (limited assurance on greenhouse gas emissions)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• KeelClip™
• Z-Flute™
• Cap-It™
• IntegraFlex™
• PaperSeal™
• Hold&Go™ insulated hot cups

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Sustainable Packaging
• Supply Chain Responsibility
• Community Engagement
• Employee Well-being
• Governance

Environmental Achievements

• 7% reduction in global GHG intensity emissions from 2016 baseline
• 16.5% reduction in LDPE resin usage
• 100% facility forest and fiber certification compliance achieved globally
• 5% reduction of effluents since 2016 baseline
• 500,000,000 units of foam and plastic cups converted to paper
• 40% of carton manufacturing facilities had zero manufacturing waste going to landfills

Social Achievements

• 31% increase in diverse supplier spend
• $500,000 donated to community food banks and assistance centers
• One-time incentive payments to all hourly and frontline production workers totaling $5 million
• Conducted a comprehensive Employee Engagement Survey
• Developed initiative focused on preventing serious or life-altering injuries
• Launched new video training globally reinforcing safety expectations

Governance Achievements

• Expanded Compensation and Management Development Committee charter with additional D&I oversight
• Instituted more comprehensive oversight by the Board of Directors
• Upgraded to BBB from BB rating

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the COVID-19 pandemic
• Increased non-renewable energy use (0.3% from 2016)
• Addressing racial inequality and improving diversity and inclusion
• Climate change risks and opportunities

Mitigation Strategies

• Implemented enhanced safety procedures and remote work options
• Developed and commercialized innovative sustainable packaging solutions
• Invested $100 million in Texarkana mill to increase flexibility and minimize downtime
• Invested $600 million to optimize CRB manufacturing platform
• Joined ATL Action for Racial Equity
• Developed a D&I strategy with key metrics
• Conducted a Climate Change Enterprise Risk Assessment

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Global Supplier Code of Conduct
• Supplier Sustainability Guidelines
• Focus on diverse suppliers
• Sustainable Forest Policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Natural disasters

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

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

Reporting Standards

Frameworks Used: GRI Standards: Core option, SASB, TCFD, UNGC

Certifications: SFI, FSC, PEFC, RPA-100%

Third-party Assurance: KPMG and Lloyd’s Register (limited assurance on GHG inventory and electricity data)

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 7: Affordable and Clean Energy
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 15: Life on Land

Initiatives contributing to these goals are detailed throughout the report.

Sustainable Products & Innovation

• PaperSeal®
• KeelClip™
• IntegraFlute™
• ecotainer™
• Hold&Go™
• ProducePack™
• Z-Flute™
• DesignerWare™

Awards & Recognition

• Newsweek’s Most Responsible Companies in the U.S.
• Paperboard Packaging Council’s Sustainability Award for PaperSeal®
• Innovation and Paperboard Package of the Year awards for KeelClip™

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Stewardship
• Waste Management
• Human Capital
• Safety
• Product Sustainability
• Supply Chain Sustainability
• Diversity & Inclusion

Environmental Achievements

• Reduced greenhouse gas emissions intensity by 14%
• Reduced nonrenewable energy intensity by 9%
• Reduced mill water effluent intensity by 5%
• 91% of converting plant waste diverted to recycling/beneficial reuse
• 95% of reported paper waste recovered and recycled
• Completed installation of solar panels at Sneek site (Netherlands)

Social Achievements

• Established an Inclusion Council
• Launched women in leadership development program
• Macon, Georgia mill received Pulp and Paper Safety Association Award of Safety Excellence
• 30 Graphic Packaging operations locations had 0 recordable injuries
• Launched global safety leadership training program
• Donated over $724,000 to community organizations

Governance Achievements

• Became a signatory to the UN Global Compact
• Committed to developing climate goals with SBTi
• Expanded leadership team with Chief Sustainability Officer

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacts on operations and supply chain
• Global challenges in logistics, materials availability, and workforce management
• Supply chain disruptions due to various factors (political instability, climate events, inflation)

Mitigation Strategies

• Investing in supply chain digital capabilities and systems integration
• Developing plans and strategies to address risks and opportunities for business continuity
• Implementing resilient supply chain management

Supply Chain Management

Supplier Audits: 56% of wood suppliers audited

Responsible Procurement

• Global Supplier Code of Conduct
• Sustainable Forestry Policy
• Due Diligence System for wood suppliers
• Supplier diversity initiatives

Climate-Related Risks & Opportunities

Physical Risks

• Water scarcity

Transition Risks

• Changes in regulations restricting single-use plastics

Opportunities

• Increased demand for recyclable, fiber-based packaging

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 14001 (23 locations), ISO 50001 (7 sites), FSC, SFI, PEFC

Third-party Assurance: Limited third-party assurance for GHG emissions and water data

UN Sustainable Development Goals

• SDG 8 (Decent Work and Economic Growth)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)
• SDG 15 (Life on Land)

Vision 2025 goals align with these SDGs

Sustainable Products & Innovation

• KeelClip™, EnviroClip™, Cap-It™, OptiCycle™, ProducePack™, Boardio™, PaperSeal™ Cook, Z-Flute™ Recycled, IntegraFlute™

Awards & Recognition

• EcoVadis gold rating
• Named to Forbes’ list of World’s Best Employers and World’s Top Female Friendly Companies
• Named one of Newsweek’s Most Responsible Companies in the US
• Various awards for product innovations

Environmental Metrics

ESG Focus Areas

• Climate Change
• Sustainable Forestry
• Biodiversity

Environmental Achievements

• Commissioned new Coated Recycled Board (CRB) machine in Kalamazoo, MI, reducing greenhouse gas emissions and energy use.
• Reduced energy consumption per revenue intensity by 44% compared to 2016.
• Achieved a 303.21% reduction in emissions intensity relative to the base year.

Social Achievements

• Facilitated in-person training sessions for 75 loggers on sustainable forestry management practices.
• Conducted analysis of globally ranked critically imperiled species for primary sourcing supply basins and provided management recommendations to suppliers.

Governance Achievements

• Board-level oversight of climate-related issues, with principal oversight assigned to the Nominating and Corporate Governance Committee.
• Executive compensation linked to ESG performance.

Climate Goals & Targets

Environmental Challenges

• Acute physical risks from flooding impacting operations.
• Transition risks related to GHG emissions and evolving regulations.
• Market shifts and competition in sustainable packaging.
• Availability and cost volatility of raw materials.
• Reputational risks related to climate change and deforestation.

Mitigation Strategies

• Investment in energy efficiency and renewable energy projects.
• Implementation of flood mitigation measures (insurance, redundancy, crisis management).
• Development of sustainable packaging solutions to replace plastic.
• Proactive engagement with suppliers to ensure supply chain reliability.
• Commitment to science-based targets and sustainable forestry practices.

Supply Chain Management

Supplier Audits: 120% of targeted suppliers for Macon mill and 143% for West Monroe mill in 2022.

Responsible Procurement

• Sustainable forestry practices
• Knowledge sharing with suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts towards sustainable packaging

Opportunities

• Development of sustainable packaging solutions
• Increased demand for low-carbon products

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: SFI, PEFC, FSC

Third-party Assurance: Third-party limited assurance

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 15 (Life on Land)

Initiatives contribute to these goals through sustainable forestry, renewable energy use, emissions reduction, and biodiversity conservation.

Sustainable Products & Innovation

• KeelClip™, Cap-It™, EnviroClip™
• PaperSeal™, ProducePack™, Boardio™
• Ecotainer™, OptiCycle™
• ZFlute™, IntegraFlute™

Environmental Metrics

ESG Focus Areas

• Climate Action
• Sustaining Forests
• Safety Focus
• Engaging People
• Better Packaging

Environmental Achievements

• Reduced operations emissions relative to 2022 due to decreased production volumes and increased energy efficiencies for recycled paperboard manufacturing.
• 85th percentile ranking in EcoVadis assessment for overall sustainability program and procurement sustainability practices.
• Science-based GHG targets validated by SBTi.
• 68% of energy needs provided by renewable sources.
• Recovered and recycled 1.1 million metric tons of waste materials, including 98% of paperboard waste.

Social Achievements

• Launched Pride+, GVMA, and Emerge ERGs, bringing the total number of ERGs to seven.
• Invested $2.6 million in community investment.
• 4% decrease in global total recordable incident rate (TRIR).
• Significant improvement in EMEA region safety performance with a decrease in TRIR from more than 1.0 to 0.72.
• 32 of our operations locations (28%) reported zero recordable injuries.

Governance Achievements

• Established and drove DEI strategy, DEI @ GPI.
• Conducted DEI training for Vice President-level leaders and above.
• Updated Global Supplier Code of Conduct (GSCOC) by adding four new Business Conduct Principles and translating it into 15 languages.
• Implemented a global spend visibility and supplier risk assessment platform leveraging AI technology.

Climate Goals & Targets

Environmental Challenges

• Aging workforce and attracting and retaining employees.
• Increased competition for raw materials and high levels of waste across the value chain.
• Climate change and its impacts on biodiversity and the supply of natural resources.
• Supply chain disruptions due to various factors (extreme weather, geopolitical events).

Mitigation Strategies

• Improving practices to hire and onboard new, diverse talent; enhanced training programs; creating a welcoming, inclusive culture.
• Developing more circular, resource-efficient, and easily recyclable paperboard packaging solutions.
• Developing and validating new science-based GHG reduction targets.
• Implementing continuous improvement (CI) mindset in HSE program; peer-to-peer assessments; hazard mitigation program.

Supply Chain Management

Supplier Audits: 50% of existing wood suppliers audited annually; 100% of new wood suppliers screened

Responsible Procurement

• Global Supplier Code of Conduct (GSCOC)
• Sustainable Forestry Policy
• Fiber certification standards (SFI, PEFC, FSC)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Increased demand for recyclable packaging

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 50001 (7 sites), SFI, PEFC, FSC, RPA-100%, GFSI (76% of packaging facilities)

Third-party Assurance: Third-party limited assurance for energy data; Scope 1, 2, and 3 GHG inventory data; and water inventory data

UN Sustainable Development Goals

• SDG 7 (Affordable and Clean Energy)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)

Initiatives contribute to these goals through renewable energy use, waste reduction, emissions reductions, and sustainable forestry practices.

Sustainable Products & Innovation

• Boardio™, EnviroClip™, PaperLite™, Cold&Go™, PLA cups and lids

Awards & Recognition

• TIME Magazine Best Inventions of 2023
• American Forest & Paper Association Leadership in Sustainability Award
• Paperboard Packaging Council Sustainability Award