Climate Change Data

Smurfit WestRock plc

Climate Impact & Sustainability Data (2021-10 to 2022-09, 2022-10 to 2023-09, 2023, 2024)

Reporting Period: 2021-10 to 2022-09

Environmental Metrics

Total Carbon Emissions:8,840,864 tCO2e/year
Scope 1 Emissions:6,273,921 tCO2e/year
Scope 2 Emissions:2,566,943 tCO2e/year
Renewable Energy Share:62% of total energy use
Total Energy Consumption:301,172,281 MMBtu/year
Water Consumption:504,311 megaliters/year
Waste Generated:7,090,700 tons/year
Carbon Intensity:0.56 MT CO2e per ton of paperboard and containerboard produced

ESG Focus Areas

  • Sustainable Packaging
  • Carbon (GHG Emissions)
  • Sustainable Forestry
  • Water Stewardship
  • Safety
  • Training and Education
  • Diversity, Inclusion, Equity and Belonging
  • Ethics and Conduct
  • Business Performance
  • Innovation

Environmental Achievements

  • 5.6% total reduction in Scope 1 and Scope 2 GHG emissions from 2019 baseline
  • Nearly 100% of wholly owned fiber-based manufacturing facilities were chain-of-custody certified to internationally recognized standards
  • 1.1% reduction of water intake from FY19 baseline

Social Achievements

  • Spent more than $1 billion with small and diverse-owned suppliers, exceeding our goal
  • Provided STEM, manufacturing and technical training to 330K+ individuals since 2019
  • Reduced life-changing events at our facilities from four to two

Governance Achievements

  • Established the WestRock Sustainability Council of functional leaders from across the enterprise
  • Strengthened governance of our sustainability program at the board of directors level
  • A component of executive compensation is tied to our performance on DIEB matters

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Reduce absolute Scope 1 and Scope 2 GHG emissions by 27.5% from a FY19 base year by 2030
  • Reduce absolute Scope 3 GHG emissions by 27.5% from a FY19 base year by 2030
  • Invest in the future of sustainable forestry by supporting certification of 1.5 million acres of forestland to recognized forest management standards by 2030
  • Engage with 10,000 private landowners and their stakeholders to provide education, guidance and support for sustainable management of their forestlands by 2030
  • Commit $15 million to community projects that protect and benefit freshwater resources, working forests and biodiversity by 2030
Short-term Goals:
  • Reduce water consumption by 15% from a FY19 baseline by 2030
  • Launch a global employee education campaign emphasizing the importance of responsible water use by 2023
  • 100% completion of Blind Spots training by global team members by the end of 2023
  • Grow plastics replacement revenue annual run rate to more than $700 million by fiscal year 2025
  • Achieve 10% representation of veteran and military talent by 2025

Environmental Challenges

  • Supply chain disruptions
  • Elevated attrition (+27%) and hiring requirements (+21%) year over year
  • Increased NOx emissions due to production increases
Mitigation Strategies
  • Investing in talent acquisition processes and teams
  • Introducing part-time schedules in salaried roles and manufacturing operations
  • Implementing a formal change readiness framework
  • Ongoing evaluations of physical and renewable power projects involving solar energy, as well as opportunities to increase our use of biomass

Supply Chain Management

Responsible Procurement
  • WestRock Principles of Conduct

Climate-Related Risks & Opportunities

Physical Risks
  • Severe weather-related events
  • Flooding
Transition Risks
  • New laws and regulations aimed at reducing carbon emissions
  • Higher prices for raw materials and fuels
Opportunities
  • Increasing sales of fiber-based packaging
  • Expanding installed base of packaging machinery solutions
  • Attracting investors and employees

Reporting Standards

Frameworks Used: GRI 2021 Universal Standards and relevant Topic Standards Option, SASB, TCFD, UN Sustainable Development Goals

Certifications: ISO 9001, Safe Quality Food (SQF), British Retail Consortium (BRC), SFI©, PEFC®, FSC©, CERFLOR

Third-party Assurance: Ernst & Young LLP

UN Sustainable Development Goals

  • 5
  • 6
  • 7
  • 8
  • 10
  • 12
  • 13
  • 15

See page 10 for more information on how each of our sustainability targets contribute to the goals.

Sustainable Products & Innovation

  • CanCollar®
  • CanCollar® X
  • EverGrow™ Collection
  • EnShield® Natural Kraft (ENK)

Awards & Recognition

  • 2022 AF&PA Sustainability Award for Safety
  • 2022 AF&PA Sustainability Award for Circular Value Chain
  • Dow Jones Sustainability Index
  • Human Rights Campaign Foundation Corporate Equality Index 2022
  • North American Paperboard Packaging Competition awards
  • Singapore Packaging Star Awards 2022
  • S&P Global Sustainability Yearbook 2022
  • Georgia Minority Supplier Development Council’s Supplier of the Year Class III Award

Reporting Period: 2022-10 to 2023-09

Environmental Metrics

Total Carbon Emissions:8,323,870 tCO2e/year (Scope 1 & 2 Market-based)
Scope 1 Emissions:5,997,083 tCO2e/year
Scope 2 Emissions:2,326,787 tCO2e/year (market-based)
Scope 3 Emissions:9,652,663 tCO2e/year (relevant categories)
Renewable Energy Share:61% of total energy use
Total Energy Consumption:275,059,168 MMBtu/year
Water Consumption:525,124 m3/year (withdrawal)
Waste Generated:708,378 tons/year (landfill)
Carbon Intensity:0.58 tCO2e/ton of paperboard and containerboard produced

ESG Focus Areas

  • Climate Change
  • Sustainable Forestry
  • Recycling
  • Water Stewardship
  • Communities
  • Diversity and Inclusion
  • Ethics and Conduct
  • Health and Safety
  • Business Performance
  • Innovation

Environmental Achievements

  • 11.3% total reduction in Scopes 1 and 2 GHG emissions and a 15.3% reduction in relevant Scope 3 emissions from a fiscal 2019 baseline
  • 61% of WestRock’s energy needs are generated by burning renewable biomass
  • 100% of virgin fiber sourced from responsibly managed forests
  • Nearly 6.4 million tons of recyclable material managed
  • 8.7% reduction in water intake since 2019

Social Achievements

  • Over $940 million spent with small and diverse-owned businesses
  • $3.6 million invested with strategic community partners
  • 77% employee engagement score

Governance Achievements

  • No material environmental enforcement actions were commenced against WestRock during fiscal 2023
  • No public legal cases regarding corruption have been brought against the organization or its employees
  • A component of executive compensation is tied to our performance on DIEB matters.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Reduce absolute Scope 1 and Scope 2 GHG emissions by 27.5% by 2030 from a 2019 base year
  • Reduce absolute Scope 3 GHG emissions by 27.5% by 2030 from a 2019 base year
  • Invest in the future of sustainable forestry by supporting certification of 1.5 million acres of forestland to recognized forest management standards by 2030
Short-term Goals:
  • 100% of WestRock’s packaging products will be recyclable, compostable or reusable by 2025
  • Reduce water intake by 15% by 2030 from a 2019 baseline

Environmental Challenges

  • Supply chain disruptions
  • Severe weather events impacting physical assets and infrastructure
  • Increased material costs due to climate change
  • Additional compliance costs from new GHG reduction regulations
  • Higher raw material and fuel prices due to the transition to a lower-carbon economy
Mitigation Strategies
  • Contingency plans to address supply chain interruptions
  • Property conservation program to minimize physical risks from severe weather
  • Incorporating meteorological forecast data into fiber procurement
  • Monitoring global developments in climate-related laws and regulations
  • Investing in energy efficiency projects, fuel switching, and low-carbon technologies

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • WestRock Supplier Principles of Conduct

Climate-Related Risks & Opportunities

Physical Risks
  • Severe weather events
  • Flooding
  • Wildfires
Transition Risks
  • Regulatory changes
  • Market shifts
  • Increased capital expenditures
Opportunities
  • Increased sales of fiber-based packaging
  • Expanding packaging machinery solutions
  • Attracting investors and employees

Reporting Standards

Frameworks Used: GRI 2021 Universal Standards, SASB, TCFD

Certifications: ISO 14001, ISO 9001, SQF, BRC

Third-party Assurance: Ernst & Young LLP

UN Sustainable Development Goals

  • Goal 7 (Affordable and Clean Energy)
  • Goal 8 (Decent Work and Economic Growth)
  • Goal 10 (Reduced Inequalities)
  • Goal 12 (Responsible Consumption and Production)
  • Goal 13 (Climate Action)
  • Goal 15 (Life on Land)

The report details how various initiatives contribute to these goals.

Sustainable Products & Innovation

  • EverGrow™
  • KD Fold™
  • CanCollar™
  • Cluster-Clip™
  • EnduraGrip™
  • PETCollar™ Shield Plus

Awards & Recognition

  • Barron’s 100 Most Sustainable Companies
  • Newsweek America’s Most Responsible Companies
  • Numerous other awards for innovation and sustainability

Reporting Period: 2023

Environmental Metrics

Water Consumption:132 million m³

ESG Focus Areas

  • Climate Change
  • Forest
  • Water
  • Waste
  • People Values
  • People Strategy
  • Health, Safety and Wellbeing
  • Communities
  • Circularity and Innovation
  • Governance and Human Rights
  • Sustainable and Responsible Sourcing

Environmental Achievements

  • 43.7% reduction in relative CO2 emissions from our paper and board mills since 2005
  • 35.8% reduction in relative waste sent to landfill from our paper and board mills since 2013
  • 35.7% reduction in relative Chemical Oxygen Demand (‘COD’) from our paper and board mills since 2005
  • 1.8% reduction of our water usage intensity in 2023
  • 95.5% of our packaging solutions sold as Chain of Custody (‘CoC’) certified

Social Achievements

  • 25.1% of management positions held by women at the end of 2023
  • €25.6 million donated since 2020 to support social causes
  • 48% reduction in TRIR since baseline year 2018
  • Launched Smurfit Kappa Newman Fellowship – Women in STEM

Governance Achievements

  • Publication of second Green Bond Impact Report (Third party assured)
  • TNFD early adopter decision made at Board level

Climate Goals & Targets

Long-term Goals:
  • At least net zero emissions by 2050
Medium-term Goals:
  • 55% reduction in fossil fuel emissions intensity by 2030
  • At least 95% of packaging sold as Chain of Custody certified by 2025 (achieved in 2023)
Short-term Goals:
  • Reduce water consumption by 1% annually
  • Reduce waste sent to landfill by 30% per tonne of paper by 2025 (achieved in 2023)
  • Reduce Chemical Oxygen Demand (COD) by 60% by 2025

Environmental Challenges

  • Climate change impacts on operations and supply chain (extreme weather, water scarcity)
  • Deforestation
  • Water scarcity
  • Waste management and landfill reduction
  • Attracting and retaining talent
  • Maintaining high safety standards
  • Ensuring ethical business conduct and compliance
  • EU Packaging and Packaging Waste Regulation (PPWR) and EU Deforestation Regulation (EUDR)
Mitigation Strategies
  • Investing in energy-efficient technologies and renewable energy sources
  • Sustainable forest management and responsible fibre sourcing
  • Investing in water treatment and management systems
  • Waste reduction initiatives and alternative waste management solutions
  • Talent development programs and flexible work arrangements
  • Safety for Life program and improved health and safety management systems
  • Code of Conduct, SpeakUp service, and regular audits
  • Collaboration with stakeholders and participation in industry initiatives

Supply Chain Management

Supplier Audits: 1,391 suppliers assessed through external platform, 63 on-site audits

Responsible Procurement
  • Sustainable and Responsible Sourcing Policy
  • Supplier Code of Conduct
  • Chain of Custody certification
  • Compliance declarations
  • Regular audits

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • Water scarcity
  • Flooding
Transition Risks
  • Regulatory changes
  • Carbon leakage
  • Market shifts
Opportunities
  • Development of energy-efficient products
  • Growth in demand for sustainable packaging

Reporting Standards

Frameworks Used: GRI Standard 2021, TCFD, SASB, UN Sustainable Development Goals, UN Global Compact

Certifications: FSC, PEFC, SFI, ISO 14001, ISO 45001

Third-party Assurance: KPMG (limited assurance)

UN Sustainable Development Goals

  • SDG 3
  • SDG 5
  • SDG 7
  • SDG 8
  • SDG 9
  • SDG 10
  • SDG 12
  • SDG 13
  • SDG 15
  • SDG 16

Detailed explanation of SDG alignment on pages 32-33

Sustainable Products & Innovation

  • Better Planet Packaging solutions
  • Vitop® Uno tap
  • TopClip and Click-to-Lock

Awards & Recognition

  • TIME’s World’s Best Companies
  • Sustainability Magazine’s Top 100 Companies
  • Morningstar Sustainalytics Industry Top Rated and Regional Top Rated company
  • 74 awards for packaging innovation, sustainability, design, and print
  • 12 WorldStar awards
  • PepsiCo’s Global ‘Supplier of the Year’ award

Reporting Period: 2024

Environmental Metrics

ESG Focus Areas

  • Circular Economy
  • Environmentally Sustainable Management of Living Natural Resources and Land Use
  • Climate Change
  • Labor, Health and Safety
  • Community Dialogue
  • Biodiversity

Environmental Achievements

  • Smurfit Kappa improved energy efficiency by 1% annually in its global paper mill network.
  • Smurfit Kappa reduced water intake by 1% annually per metric ton of paper produced.
  • WestRock Company aims for 100% recyclable, compostable, or reusable products by 2025.
  • ~92% of corrugated packaging is recycled.
  • Nearly all wholly owned fiber-based manufacturing facilities are chain-of-custody certified to internationally recognized standards such as FSC, SFI, PEFC and ATFS.

Social Achievements

  • Smurfit WestRock has policies and measures to ensure high labor, health, and safety standards are respected.
  • Smurfit Kappa and WestRock Company have measures in place to ensure community dialogue is part of the planning process during the construction of new sites.
  • Smurfit Kappa participates in the post-use management of its products, collecting recovered fiber and paper-based packaging and returning it to its paper mills.

Governance Achievements

  • Smurfit WestRock uses the policies and guidelines from Smurfit Kappa and WestRock Company for its risk assessment and evaluation.
  • A Sustainability Committee has been established to review the Company's climate risks and opportunities.

Climate Goals & Targets

Short-term Goals:
  • Smurfit Kappa aims to reduce Scope 1 and 2 GHG emissions by 37.7% per metric ton of saleable production by 2030 compared to the baseline year 2019.
  • WestRock Company aims to reduce absolute Scope 1 and 2 GHG emissions by 27.5% by 2030 compared to the baseline year 2019.
  • WestRock Company aims to reduce absolute Scope 3 GHG emissions by 27.5% by 2030 compared to the baseline year 2019.
  • WestRock Company has a target of reducing water intake by 15% from a 2019 baseline by 2030.

Environmental Challenges

  • Not all sites conduct an environmental impact assessment (EIA) covering noise mitigation and environmental impacts during the construction of new sites.
  • 3% of Smurfit Kappa’s water intake takes place in areas of water scarcity.
  • One Smurfit Kappa mill in India, three in Mexico and one in the United States are considered high-risk for water scarcity and are implementing water conservation measures.
Mitigation Strategies
  • All European sites and most of the sites in the Americas have performed an EIA as part of the local operational permits needed for the construction.
  • Smurfit Kappa has set the target to reduce its water intake by 1% annually per produced metric ton of paper at its paper and board mills.
  • WestRock Company has measures adapted to the needs of each paper mill situated in an area with scarcity of water. Some of the facilities reuse and recycle the treated water, while others use municipal wastewater.

Supply Chain Management

Responsible Procurement
  • Smurfit Kappa requires its suppliers to adhere to international certifications and be ISO 14001 certified when possible.
  • WestRock Company’s Supplier Principles of Conduct includes the requirement that suppliers must have an environmental management system in place.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Green Bond Principles, Green Loan Principles, UN SDGs, SBTi

Certifications: ISO 14001, ISO 45001, FSC, SFI, PEFC, ATFS