Our material topics

Our sustainability approach is built on our material topics

Our material topics influence our strategy and business model, determine the scope of the sustainability reporting and impact the implementation of policies, actions and allocation of resources.

Our material topics have been identified based on the GRI Standards 2021 (GRI 3-1 Process to determine material topics) and were supplemented by our preliminary double material assessment under the Corporate Sustainability Reporting Directive (CSRD)^{1, 2}. Further details on our GRI materiality assessment is presented in the SIG 2023 Annual Report³.

In preparation for our adoption of CSRD in our 2025 Annual Report, we performed a double materiality assessment at SIG Group level in 2024 to identify material impacts risks and opportunities in SIG’s value chain. The process was guided by the European Sustainability Reporting Standards (ESRS), following the approach prescribed by the ESRS 1 and the European Financial Reporting Advisory Group (EFRAG) Implementation Guidance. The double materiality assessment under CSRD is more granular compared to an assessment of material topics under the GRI standards. The outcome of the preliminary double materiality assessment underpins the conclusions reached in our identification of material topics under the GRI standards.

Other sections in this Annual Report include additional information on how we manage our material topics. The table “Our material topics” presented below shows how the GRI material topics in this Annual Report maps to our sustainability chapters as well as to the preliminary assessed material topics under CSRD. In anticipation of the full adoption of CSRD in 2025, the section “Process and Methodology” below describes the procedures performed for the double materiality assessment in 2024 under CSRD.

Process and methodology

The 2024 preliminary double materiality assessment under ESRS considered impacts, risks and opportunities. The process was conducted and managed by an external consultancy in close collaboration with SIG’s sustainability experts and cross-functional teams. The evaluation was informed by internal and external sources and documents, such as market studies, industry reports and expert opinions. The assessment considered both impact and financial materiality along the value chain (upstream activities, own operations and downstream activities).

Within the impact materiality process, we assessed the effect SIG has or could have on people and the environment, encompassing both positive and negative as well as actual and potential impacts.

The financial materiality process covered both risks with negative financial effects arising from environmental, social and governance (ESG) matters, as well as ESG-related opportunities with positive financial effects.

A long list of IROs was assessed throughout own operations, upstream and downstream value chain, considering our products, services and business relationships. As part of the assessment, we considered impacts, risks and opportunities over the short (1 to 3 years), medium (3 to 5 years) and long term (over 5 years).

The process of the double materiality assessment involved the following steps:

1. Value chain mapping and stakeholder identification

The value creation of our packaging solutions extends from our direct customers to investors and citizens across the globe. Our upstream value chain includes raw materials, indirect third-party suppliers, transportation and distribution partners. Our own operations encompass owned and leased assets and production plants, employees, research and development, product design, marketing and sales. Downstream activities involve transportation and distribution, processing of sold products, the use phase (including both customers within the food and beverage industry as well as end-consumers) and the end-of-life stage involving disposal and recycling partners.

We identified internal and external stakeholders that were considered as part of the double materiality assessment. Internal stakeholders included management, employees and investors, whereas external stakeholders included suppliers, customers and end-consumers, policymakers and regulators, local communities around SIG’s production sites, sustainability experts, non-governmental organizations (NGOs) and industry partners.

2. Identification of impacts, risks and opportunities (IROs)

The identification of sustainability matters was guided by the ESRS classification of topics, sub-topics and sub-sub-topics to ensure a thorough and structured approach to understand the IROs that are relevant for SIG and its stakeholders.

The list of ESRS topics was mapped to all the sustainability matters identified under the GRI methodology. The mapping was performed in order to ensure consistency and comparability with the GRI materiality assessment.

Industry-specific IROs were identified from sector reports, research and ratings. The IROs were identified through internal analyses and documentations, as well as interviews and engagement with internal experts, advisors and peer benchmarking. An initial long list of IROs was developed considering each step of the value chain and subsequently refined into a short list of key IROs based on a prioritization assessment.

3. Assessment and prioritization of IROs

a. Assessment of impacts (impact materiality)

To assess the materiality of impacts, we considered their likelihood and severity, the latter determined by their scale, scope and irremediable character. Scale represents how grave the negative impact is or how beneficial the positive impact is for people or the environment. Scope indicates how widespread the negative or positive impacts are (i.e. extent of environmental damage or number of people adversely affected). Irremediable character, only applicable for negative impacts, indicates whether and to what extent negative impacts could be remediated to their prior state. The likelihood represents the probability of occurrence of the impact and is assessed for potential impacts.

The assessment involved mapping and evaluating SIG’s actual and potential as well as positive or negative ESG impacts on people and the environment across the value chain. Country, sector and product information were used for impact definitions, utilizing both internal and external sources. The scoring of the severity of impact materiality was aligned with ESRS 1 and the EFRAG Implementation Guidance.

b. Assessment of risks and opportunities (financial materiality)

To assess the materiality of risks and opportunities, we considered both their likelihood and magnitude of their financial effects. Categories considered to inform our assessment included financial loss/gain, business disruptions/opportunities, regulatory and legal penalties and reputational damage/gain. The assessment for risks and opportunities was conducted on a gross basis prior to mitigation measures. The scoring of magnitude was aligned with SIG’s ERM approach, ESRS 1 and the EFRAG Implementation Guidance.

4. Consolidation and validation of results

To validate the materiality of IROs, we conducted validation sessions with subject matter experts and representatives from different functions within the Company who themselves interact with various key stakeholder groups. These internal stakeholders provided insights and served as proxies for external stakeholders’ interests and views. Inputs from external stakeholders were considered by leveraging our independent Responsibility Advisory Group (RAG), feedback received from suppliers, customers and investors. External stakeholders’ views and interests were also considered by leveraging the GRI materiality assessment and stakeholder engagements conducted in 2023. The preliminary 2024 double materiality assessment will be finalized in 2025. It was reviewed and discussed by SIG’s Group Executive Board and the Audit and Risk Committee.

Overview of our material topics

The table “Our Material Topics” below presents GRI material topics as well as the link to the relevant Sustainability chapters of the current Annual Report. It also includes the mapping to the ESRS material topics identified as part of this year’s preliminary double materiality assessment.

The preliminary results of the 2024 double materiality assessment indicates that all five ESRS environmental topics are material. Among the four social ESRS topics, three (own workforce, workers in the value chain, and consumers and end-users) are deemed material, while affected communities are considered non-material. The ESRS topic business conduct is also identified as material.

Our material topics

Description of ESRS material topics identified as part of the preliminary 2024 double materiality assessment

• Climate change: GHG emissions and fossil fuel reliance drive climate change, with most emissions occurring outside our direct control. Climate adaptation solutions, like aseptic packaging, reduce energy dependency and enhance resilience. Physical risks and regulatory changes can cause financial losses but investing in low-carbon technologies mitigates risks and increases our competitiveness.
• Pollution: The sourcing of raw materials and production can decrease air and water quality through pollutants. Plastic waste decrease water quality at the end-of-life phase. Improved recyclability meets consumer demand for sustainable packaging, enhancing competitiveness and creating financial opportunities.
• Water and marine resources: Extracting raw materials like bauxite for aluminum and wood for paperboard is water-intensive, leading to significant water withdrawals, depleting local resources, and generating wastewater.
• Biodiversity and ecosystems: Raw material extraction and transportation impact biodiversity through habitat destruction, pollution, and invasive species. Sourcing FSC™ and ASI Aluminium products mitigates these impacts. Packaging disposal can release pollutants affecting ecosystems.
• Circular economy: Using non-renewable resources may cause resource depletion. Increasing the sourcing of recycled materials and fostering collection and recycling initiatives capitalize on opportunities like resource efficiency, new market demand, green financing, resilience, and enhanced reputation.
• Own workforce: Measures against workplace violence and harassment, extensive learning and development opportunities, and a focus on health and safety support our workforce. We provide access to a safe working environment.
• Workers in the value chain: Our supply chain faces challenges in gender inequality, workplace harassment, and disability inclusion. Health and safety concerns and job insecurity persist in the chemical and raw materials extraction industries. Our commitments help enforce human rights standards, prohibiting forced and child labor.
• Consumers and end-users: Accessible food packaging with features like easy-open tabs benefits consumers. Our packaging ensures end-user safety by preventing microbial, chemical and physical contamination, prolonging shelf life, and protecting food during transit.
• Business conduct: We foster a corporate integrity culture through strong governance and high ethical standards. We are committed to sustainable purchasing practices through our Supplier Code of Conduct, audits and training.

1 Issued by the European Union and applicable for large companies with significant operations in the EU.

2 The assessment of material topics has also been used for the Swiss non-financial matter reporting to satisfy the due diligence requirements. See our report on non-financial matters.

3 SIG Annual Report 2023 p. 277–278.