Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Increased use of recycled content in products (4% PCR resin, 46% recycled fiber)
• Introduced multiple products with 25-50% rPET
• Partnered with Albertsons to transition to recycled prescription bags, saving over 5,000 trees annually
• Reduced raw material usage by 20% in standard hooder film products
• Reduced standard thickness for bladder film by nearly 30% since 2015
• Launched several compostable products (Vanguard molded fiber packaging, GreenStripe line, BioTuf compostable can liners, compostable meat and produce trays)

Social Achievements

• Achieved a companywide Total Injury Rate (TIR) of 1.7, a more than 60% decline since 2014
• Launched Novolex University for employee development
• Partnered with Women’s Division of the Department of Corrections in Indiana for a work-release program
• Supported Move for Hunger, delivering over 17 million pounds of food to food banks

Governance Achievements

• Created a new position of Senior Vice President, Corporate Affairs, with oversight of sustainability
• Appointed a dedicated Director, Sustainability
• Implemented a mobile safety inspection system across all manufacturing locations
• Established an Ethics & Compliance Helpline

Climate Goals & Targets

Environmental Challenges

• Challenges in recycling markets (economics, lack of investment in detection and separation technologies, contamination, limited composting infrastructure)
• Disruption in collection and processing of recyclables due to COVID-19
• Decreased marketplace competitiveness of PCR due to COVID-19

Mitigation Strategies

• Participation in industry associations to improve recycling standards and infrastructure
• Participation in Demand Champions program to expand the market for recycled plastics
• Investment in vertically integrated plastic bag manufacturing and recycling plants
• Focus on procuring Chain of Custody (COC)-certified fiber
• Work with customers to balance packaging design requirements and use of recycled plastics
• Internal recycling lines to capture, reprocess, and reuse engineered waste
• Novolex Pellet Retention Program to eliminate pellet loss

Supply Chain Management

Supplier Audits: Self-assessment process for 150 largest suppliers

Responsible Procurement

• Supplier Code of Conduct (addresses human rights, environmental impact, employee health and safety, data security, bribery and corruption)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB, GRI

Certifications: SQF (33 facilities)

Sustainable Products & Innovation

• Products made with recycled content, compostable products

Awards & Recognition

• Safety Company of the Year (Plastics Industry Association)
• First Place in Innovation in Manufacturing (Foodservice Packaging Institute)

Environmental Metrics

ESG Focus Areas

• Circular Economy
• Product Design and Innovation
• Public Policy
• Materials
• Emissions
• Waste Management
• Consumer Education
• Occupational Health and Safety
• Diversity and Equal Opportunity

Environmental Achievements

• Achieved a 10% reduction in Scope 1 and 2 emissions per ton of production since 2019.
• Increased percentage of recycled fiber in supply chain by 3% over 2019.
• Waddington Europe achieved Zero Waste to Landfill status.
• Improved North Vernon Recycling Center capacity by 550,000 lbs. annually.

Social Achievements

• Launched a broad DEI initiative.
• 40% of top 60 leaders were women or people of color in 2020 (double the 2016 figure).
• 19% of plant managers were women or people of color in 2020 (53% increase over five years).
• 40% of open salaried positions were filled with internal promotions in 2020.
• Performance reviews completed for over 91% of eligible employees.

Governance Achievements

• Established a Sustainability & Environment, Health and Safety Committee of the Novolex Board of Directors in 2020.
• Developed a Novolex Policy on Human Rights.

Climate Goals & Targets

Environmental Challenges

• Increased Scope 3 emissions from fleets in 2020 (12% increase) due to increased mileage from PPE shipments and supply chain disruptions.
• Challenging PCR resin environment in 2020 due to COVID-19 related factors.
• Insufficient recycling infrastructure for rigid plastics in North America.
• Data limitations in reporting total water withdrawn and consumed at all global sites.

Mitigation Strategies

• Investing in energy efficiency measures and renewable energy purchases to reduce emissions.
• Streamlining shipments to reduce reliance on truck freight miles.
• Developing a companywide waste-to-landfill metric.
• Investing in capacity to recycle store drop-off films and installing a water treatment system at the North Vernon Recycling Center.
• Working to establish best practices in data collection, monitoring and reporting across the business.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB, GRI

Sustainable Products & Innovation

• EcoFlute® clamshells, EcoBlend® products, WorldView™ containers, Vanguard molded fiber packaging, Cutlerease dispensing system, Dubl Life® silverware bag

Awards & Recognition

• 2020 Manufacturing Excellence Award for Innovation (Novolex Shields plant)
• Women in Supply Chain Award (Amy Barnes)

Environmental Metrics

ESG Focus Areas

• Products
• Operations
• People & Communities

Environmental Achievements

• 24% Reduction in GHG Emissions
• Zero-Waste Certified Waddington Europe Maintains Zero Waste to Landfill Status
• 75% of Waste Recycled

Social Achievements

• 40% of Women or People of Color in Leadership Role (U.S. and Canada)
• 7,000 Hours of Human Performance Safety Training
• 145,000 Total Training Hours
• 43% Positions Filled Internally (U.S. operations)
• 32% Increase in Spending on Diverse Suppliers

Governance Achievements

• 40 Manufacturing Facilities Certified to GFSI Standards
• Eco-Products® and Vegware™ received B Corps certifications

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Bronze Medal | Top 35th Percentile EcoVadis Sustainability Rating

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Climate Goals & Targets

Environmental Challenges

• Impacts of raw materials and packaging waste on the environment
• Greenhouse gas emissions from operations and supply chain

Mitigation Strategies

• Optimizing use of recycled/renewable raw materials
• Designing recyclable, compostable, or reusable products
• Reducing Scope 1 and 2 GHG emissions by 30% by 2030 (against 2019 baseline)
• Implementing an Environmental Management System (EMS)

Supply Chain Management

Responsible Procurement

• Holding suppliers to standards for responsible behaviors including respect for human rights and fair labor practices

Climate-Related Risks & Opportunities