Quad/Graphics, Inc.

Climate Impact & Sustainability Data (2021, 2022)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:0.6322 metric tons of CO2e per million pages produced in the US (2020)

Scope 1 Emissions:Not disclosed

Scope 2 Emissions:Not disclosed

Scope 3 Emissions:Not disclosed

Renewable Energy Share:Not disclosed

Total Energy Consumption:1.7 billion MJ (1.7 billion kWhe) combined natural gas, propane, and electricity (2020)

Water Consumption:996 million liters (263 million gallons) consumed from US print-production facilities (2020)

Waste Generated:Not disclosed

Carbon Intensity:0.6322 metric tons of CO2e per million pages produced in the US (2020)

ESG Focus Areas

Environment
Social
Governance

Environmental Achievements

Recycled 98% of paper and other general waste across all U.S. facilities.
Increased certified paper usage by 24% from 53% in 2017 to 77% in 2021.
Reduced CO2 emissions by roughly 1,270 metric tons at five plants in 2020 through a new method to prep printing plates (expected to total 2,100 metric tons in 2021).
Reduced hazardous waste to approximately 0.73 pounds of RCRA federally regulated hazardous waste per 1 million pages printed in 2020.

Social Achievements

Launched expanded health and wellness services, including the holistic QLife Wellness program.
Invested in organizations and programs that enable people to achieve sustainable, career-oriented employment (e.g., The BrandLab, Running Rebels).
Increased hourly wage structure in almost 60% of large manufacturing facilities in 2021.
Improved DART rate (Days Away, Restricted or Transferred) significantly over the past five years.

Governance Achievements

Maintained a fully independent Audit Committee.
Implemented a Safe-at-Work program in response to the COVID-19 pandemic.
Provided multiple ways for employees to report ethical or compliance concerns (open door policy and anonymous hotline).
Conducted annual compliance risk assessment for potential bribery and corruption risks at international entities.

Climate Goals & Targets

Long-term Goals:

Increase the recycling rate of solid waste at all facilities by 2030.
Reduce overall carbon emissions intensity by 2030.
Reduce the amount of hazardous waste generated by unit of production by 2030.
Improve the average deferral rate for U.S. employees in our 401(k) plan by 2030.
Improve the number of employees who graduate in our Accelerated Career Training (ACT) Program by 2030.

Medium-term Goals:

Reduce energy intensity by 20% through 2029.
Increase spend with diverse suppliers by 10% each year through 2030.
Improve representation in Agency Solutions, U.S. employees, and U.S. Management in both gender and race/ethnicity through 2030.
Measure success in supporting the growth and development of Business Resource Groups by 2025.

Short-term Goals:

Increase base hourly rate for all U.S. employees to at least $15/hour by the end of 2022.
Measure overall engagement score for U.S. employees annually, as well as by gender and race/ethnicity by 2025.
Improve the percentage of new-hires reaching one year of service by 2030.

Environmental Challenges

Determining which environmental initiatives to prioritize.
Increasingly complex sustainable packaging logos and labels.
Addressing the growing food waste problem.
Achieving more aggressive certified fiber goals due to barriers like family-owned forests.
COVID-19 pandemic impact on manufacturing production and data.

Mitigation Strategies

Aligning with clients’ environmental goals and contributing to their sustainability strategies.
Conducting consumer research to improve sustainability logos on packaging.
Partnering with a large retailer and the Sustainable Packaging Coalition to address food waste.
Joining Forests in Focus to access data on sustainability risks in forests.
Implementing a Safe-at-Work program with various initiatives to prioritize employee health and safety.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

Supplier Code of Conduct outlining requirements in business integrity, ethical labor practices, associate health and safety, and environmental management.
Monitoring supply chain to understand raw material origin.
Sourcing from socially responsible companies.

Climate-Related Risks & Opportunities

Physical Risks

Not disclosed

Transition Risks

Not disclosed

Opportunities

Not disclosed

Reporting Standards

Frameworks Used: GRI, UNSDGs

Certifications: FSC®, SFI®, PEFC™ (triple chain-of-custody certified for forest products)

Third-party Assurance: Independent third-party verification for 2020 carbon footprint metrics.

UN Sustainable Development Goals

Goal 3 (Good Health and Well-being)
Goal 8 (Decent Work and Economic Growth)
Goal 12 (Responsible Consumption and Production)
Goal 15 (Life on Land)
Goal 16 (Peace, Justice and Strong Institutions)

Company goals contribute to these UN goals through various initiatives.

Sustainable Products & Innovation

EnviroTech™ bio-based inks.

Awards & Recognition

2021 Energy Efficiency Excellence Award from Focus on Energy.
Green Professional designation from Wisconsin Sustainable Business Council.
Multiple EPA SmartWay awards.
Clean Air Recognition from WPCA and Wisconsin DNR.

Reporting Period: 2022

Environmental Metrics

ESG Focus Areas

Diversity, Equity and Inclusion (DEI)
Environmental Sustainability
Governance

Environmental Achievements

Partnering with clients to increase certified paper usage to 80%

Social Achievements

Improved representation among U.S. employees and U.S. management team in gender, and race and ethnicity
Incorporated DEI competencies into performance reviews for U.S. leaders
Achieved an 18% increase in annual spend with diverse suppliers

Governance Achievements

Programs and policies in place that reflect our culture of high ethical standards and legal compliance