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Our responsibility

Our Corporate Responsibility Report

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INTRODUCTION TO OUR CR REPORTING

This year, we have included in-depth reporting on The Way Beyond Good and corporate responsibility (CR) within our Annual Report for the first time in response to growing interest from investors in environmental, social and governance (ESG) topics. Key elements of our approach are included throughout relevant sections of the Annual Report. In the chapter 'Corporate Responsibility Report', we provide more detailed information on our approach to ESG topics in accordance with the Global Reporting Initiative (GRI) Standards: Core option. It covers CR governance and describes our management approach, performance and targets for our most material environmental and social issues.

EcoVadis Platinum – logo, Sustainalytics – logo, MSCI ESG Ratings – logo (logo)

The Way Beyond Good

A world where everyone can feel good about where SIG packaging comes from – and where it’s going. Our job is to find the road that leads us not merely to neutral, not merely to good – but ever onwards. We call it The Way Beyond Good.

It’s a path that we have been on for years, since we first developed our aseptic packaging system to store and transport food without the need for refrigeration or preservatives, in low-carbon packs made mainly from renewable paperboard.

We have already gone much further with a host of industry firsts. Sourcing 100% of our paperboard from FSC™-certified sustainable forests. Using 100% renewable energy to produce our packs. And creating the first aluminium-free aseptic carton, the first linked to only renewable materials and the first linked to post-consumer recycled content.1

That was just the start. The Way Beyond Good is long and stretches out into a vastly more sustainable future. We will actively regenerate our planet’s natural systems, and help even more people enjoy access to a healthier diet.

Our next step on the way is to tackle four areas where we can go beyond reducing impact or mitigating harm.

Vision – The Way Beyond Good (bar chart)

Forest+

SIG depends on a sustainable supply of forest-based materials now and in the future. By sourcing all our paperboard from FSC™-certified sources, we are contributing to thriving forests that play an essential role in tackling climate change and supporting biodiversity – both hot topics for stakeholders. The FSC™ label on our packs enables customers to show their support for sustainably managed forests and promotes consumer awareness and demand for other FSC™-certified products.

As of January 2021, 100% of the paperboard we source is purchased with FSC™ certification – a first for the industry – and we sold over 40 billion SIG packs with the FSC™ label this year alone. Sales of SIGNATURE 100, the world’s first packaging material for aseptic cartons linked to 100% forest-based materials1, have continued to grow. We are going further through new partnerships with NGOs to help us support additional sustainably managed forests beyond what we need to make our products.

Forest+ in action:
Partnering on science-based projects

We began working with Brainforest – a Swiss for-impact Venture Studio for forests and climate, co-founded by WWF Switzerland and made possible by the Migros Pioneer Fund – and its venture Xilva AG to help us identify potential projects that we can invest in to support our goal to bring at least 650,000 additional hectares of forest into sustainable management beyond what we need to make our products by 2030. We are looking for science-based projects that are designed to create resilient forest ecosystems that improve biodiversity and store carbon to unlock the full climate potential of forests.

Forest+ in action (photo)

Climate+

Expectations are intensifying for business to do its part in meeting the climate emergency. We have set 1.5°C science-based targets to cut carbon emissions from our operations and value chain in line with the latest climate science. As customers face mounting pressure to reduce the life-cycle impact of their products, our ability to offer a low-carbon alternative to other types of packaging – and the lowest-carbon aseptic packs on the market – is a key differentiator and value driver.

In 2021, we maintained carbon neutral production worldwide and made further strides towards our science-based targets. By the end of the year, we had reduced our Scope 1 and 2 emissions by 74%, and our Scope 1, 2 and 3 emissions per litre of food packed by 20% from 2016. We increased sales of our lowest-carbon packs in our SIGNATURE portfolio by 21% this year, developed the world’s first aluminium-free full barrier aseptic carton solution for non-carbonated soft drinks, and launched our next generation filling machine that is designed to cut the carbon footprint of filling and packing by 25%. We remained the only carton producer to source aluminium certified to the Aluminium Stewardship Initiative (ASI) standard that supports decarbonisation of the supply chain.

Climate+ in action:
Building renewable energy capacity

Our switch to 100% renewable energy at our production plants – an industry first – has already avoided over 510,000 tonnes of CO2-equivalent over the last five years. New solar arrays at our production plants have more than doubled our total on-site solar capacity in 2021 and a new power purchase agreement will deliver real-time power from two wind turbines to our production plants in Germany.

Climate+ in action (photo)

Resource+

Fully recyclable and made mainly from renewable materials, our packs are well suited to support the transition to a circular economy and help customers meet growing regulations in this area. Industry-leading innovations in our SIGNATURE portfolio further reduce the use of fossil-based resources with aluminium-free options and polymers linked to 100% renewable materials or post-consumer recycled plastic.1 We are also partnering with others on the industry-wide ambition to increase beverage carton recycling rates.

Uptake of our SIGNATURE portfolio and paper straw solutions continued to grow in 2021. We developed our first aluminium-free full barrier packaging material and our first tethered cap solution. Through our partnerships, we have invested in facilities in Germany – which opened this year – and Australia to increase capacity for recycling the materials in used beverage cartons. In Europe, we have committed to the 10 industry targets set out in the new roadmap for 2030 from the Alliance for Beverage Cartons and the Environment (ACE). We are also expanding successful collection programmes in Brazil, introducing a similar community recycling model in Asia, and supporting consumer awareness and collection programmes across all our regions.

Resource+ in action:
Committing to boost recycling rates

We are fully committed to the new ACE 2030 roadmap for the industry in Europe that includes commitments to increase the collection rate to 90% and the recycling rate to at least 70% for used ­beverage cartons in Europe by 2030, ­produce ­beverage cartons only from ­renewable or recycled materials, deliver the lowest carbon footprint packaging and ­decarbonise the industry’s value chain.

Resource+ in action (photo)

Food+

SIG’s purpose is to partner with customers to deliver food in a safe, sustainable and affordable way to people around the world. Our packaging system is ideal for preserving milk and other nutritious beverages and liquid foods over long periods of time without the need for refrigeration. This means we are well placed to help customers respond to the dual challenge of getting nutrition to people in emerging markets who need it most and meeting growing consumer demand for healthy food in developed markets.

In 2021, we maintained robust food safety standards with ISO 9001 and BRCGS AA certification at all our plants, minimised food loss for customers with our industry-leading waste rate of less than 0.5% for filling, and enabled more start-ups to deliver new nutritious food products through our SIGCUBATOR programme. Customers used our packaging systems to bring 10.6 billion litres of nutritious food and drinks that contribute to a balanced diet and lead to better health for people around the world (as defined by the independent Health Star Rating System).

Food+ in action:
Supporting start-ups with SIGCUBATOR

Our SIGCUBATOR programme enabled start-up Tiptoh to launch a new range of nutritious pea protein beverages on the Belgian market this year. Tiptoh partnered with SIG and our customer Olympia Dairy to fill its product on SIG machines at Olympia Dairy’s factories using packs with our SIGNATURE FULL BARRIER solution.

Food+ in action (photo)

Enabling The Way Beyond Good

Our focus on sustainable Technology and innovation is driving progress in all four action areas and delivered further breakthroughs this year. And our long-standing commitment to responsible culture underpins our Corporate Compass and The Way Beyond Good – from developing a diverse and talented Our Team and keeping our people safe to sourcing responsibly, managing environmental impacts, supporting communities and upholding high ethical standards.

We know that there are significant challenges to be overcome on The Way Beyond Good. But by striving to get there, we can play a significant role in shaping a more sustainable food system, through packaging solutions that truly deliver a net positive outcome for both people and planet – while creating sustainable value for our business over the long term.

That’s what we can achieve, as we move ever onwards. So that one day, we can look back and say, with pride: we went a long way beyond good.

Find out more about our approach and performance on The Way Beyond Good in our Corporate Responsibility Report.

100

 %

liquid packaging board purchased with FSC™ certification (as of January 2021)

98

 %

of SIG packs sold in 2021 carried the FSC™ label

100

 %

renewable energy for production since 2018

<0.5

 %

industry-leading waste rate for filling machines

1 Via an independently certified mass balance system.