Our sustainability governance
The Board of Directors (Board) reviews and approves SIG’s sustainability strategy, governance, and reporting, including the annual sustainability reporting. The Board’s Nomination and Governance Committee (NGC) oversees the Company’s strategy and governance on corporate responsibility for ESG matters, in particular regarding key issues that may affect the Group’s business and reputation, including climate and nature-related risks and opportunities. The NGC advises the Board on such matters.
The Board and the Group Executive Board (GEB)receive regular updates regarding the Group’s sustainability initiatives and ESG performance. The Vice President Corporate Development and Sustainability provides such updates to the NGC and the Board twice a year and provides input to the Board in its annual strategy meeting. This ensures that the Board maintains oversight of these matters and KPIs that are relevant to the Group’s business.
In 2024, training sessions were conducted with individual Board members on SIG’s sustainability approach and ESG disclosure requirements. The full Board received a briefing on (1) SIG’s sustainability achievements with a focus on climate change impacts and progress on circularity and (2) the evolution of SIG’s sustainability approach and the shift towards a regenerative packaging solution.
The Audit and Risk Committee (ARC) reviews and discusses the Group’s sustainability reports with management and, to the extent applicable and relevant, with the Group’s assurance providers. It monitors the Group’s performance against the Group’s sustainability KPIs. It also makes recommendations to the Board on the Group’s public reporting on ESG matters.
Ultimate accountability for the Group’s ESG performance and progress lies with the CEO and the GEB. This accountability is underpinned by an ESG-related element incorporated in the GEB members’ Short-Term Incentive Plan. GEB meetings cover, where relevant, items on sustainability and ESG topics. The GEB approves the Group’s annual sustainability report before approval by the ARC and ultimate approval by the Board.
GEB members are part of the Responsibility Steering Group (RSG), which also includes senior representatives of key functions and each of the regions. The RSG meets twice a year to review progress and ensure alignment of ESG-related work across the business.
Each focus area of the Group’s sustainability approach, including related commitments, is owned by a member of the RSG, who is accountable for setting goals and delivering progress through targeted workstreams. Leaders from relevant business functions and regions are responsible for implementing the Group’s sustainability commitments, with support from their teams and subject matter experts.
We publish our policies on ESG topics to clearly set out our commitments. Accompanying in-depth internal operating procedures support effective implementation across the business. Employees are provided with training on topics relevant to their role. We also strive to inform and engage all our people on sustainability, with support from our network of Future+ Ambassadors. As part of the SIG Academy, 12 e-training modules on sustainability have been launched and are available to all employees. Interactive webinars on sustainability were also delivered as part of our Upskill sessions, to further build awareness on sustainability topics.
The SIG Foundation also supports our ambitions through targeted charitable projects and partnerships that strengthen civil society and create positive impacts for the environment. Members of the leadership team sit on the SIG Foundation’s Board of Trustees.
For more on the SIG Foundation and an overview of its activities in 2024, see Communities.
Due diligence approach
The Group applies a due diligence approach to address environmental matters, social matters, employee-related matters, human rights and anti-corruption. Relevant impacts, risks and opportunities are regularly assessed and policies implemented and regularly updated. The policies define commitments and targets, as well as measures (implementation approach) and responsibilities in relation to these matters. Measures in place are aimed at reducing negative impacts or increasing positive impacts, where possible.
Measurement and effectiveness
The Group has different management approaches in place to implement measures and ensure their effectiveness. The Group defines KPIs in relation to various matters such as environmental matters, social matters, employee-related matters, human rights and anti-corruption which are regularly reviewed and help us to also quantitatively assess effectiveness and performance over the years against targets. In cases of a negative development of KPIs or in cases of non-achievement of targets, counter measures can be taken or measures may be adjusted to enhance effectiveness.
SIG sustainability governance structure
1 Joined SIG and the RSG in August 2024 (succeeding the previous position of Director Corporate Responsibility).
2 New CSO joined SIG and the RSG on November 15, 2024.
3 Formerly known as the SIG Way Beyond Good Foundation.
Integrating external insight
Members of the GEB meet twice a year with our independent Responsibility Advisory Group (RAG), a group of external experts who provide strategic input to the RSG and GEB and challenge us to improve.
In 2024, the RAG focused on understanding SIG’s role in delivering the most sustainable packaging solutions in view of shifting paradigms on sustainability. We discussed most likely futures in view of expectations of consumers, SIG customers and societies. Related to progress on our sustainability approach, we also discussed the role of innovation in accelerating the transition required to meet global goals on climate, nature and circularity.
RAG members agreed that SIG’s approach is delivering systemic change beyond the packaging value chain, particularly in relation to the environmental priorities of climate and nature, and they appreciated our sharpened focus on regenerative solutions integrating our objectives relating to climate, nature, food and circularity.
“SIG continues to push forward with its sustainability approach, advancing from the ‘net positive’ to driving a regenerative future. The Company has set a clear pathway with ambitious science-based targets which encompass value chain responsibility. And SIG is going beyond the value chain too – for example through its partnership with WWF, with its focus on nature and biodiversity. The boldness of the overall approach is consistent with delivering positive outcomes for society and the planet.
SIG has made good progress on its climate targets although more remains to be done to meet the targeted reduction in Scope 3 emissions. The addition of new projects within the Climate+ program shows that the Company is taking the Scope 3 challenge seriously and is responding.
Employee engagement plays a key role in achieving sustainability objectives, so I am encouraged by the widespread initiatives that seem to be tapping and amplifying employee sustainability passion across the organization.”
Greg Norris (RAG Chair)
Co-Director of the Sustainability and Health Initiative for NetPositive Enterprise (SHINE)
“Providing safe packaging for food brings broader benefits in terms of nutrition and health. SIG’s global presence means that these benefits are delivered to some of the populations who need them most. At the same time, countries with more recent industrialization benefit from SIG’s commitment to human rights, environmental protection and innovation.
SIG is pursuing the ultimate goal of a regenerative packaging system while driving progress towards a circular economy. This is not something that can be done alone. SIG has a track record of entering into partnerships to accelerate progress. In 2024, by joining the Climate & Health Coalition Food Cluster of the Forum for the Future, SIG has affirmed its intent to participate in the transformation of our food and agricultural systems towards outcomes that deliver health benefits for both people and planet.”
Gail Klintworth
Chair, Non-Executive Director, and (Board) Advisor: Rabobank, Shell Foundation, MAS Holdings, Globescan, Takeda Pharmaceuticals, Al Dabbagh Group, Savo Project Developers
“Over the years the sustainability priorities of SIG and its customers have become increasingly intertwined. SIG’s strength in reducing packaging waste and primary resources usage can help customers with their own ESG reporting and disclosures. In addition, the ability to deliver ever more sustainable solutions is fundamental to SIG’s innovation and a clear differentiator. It is good to see progress in introducing such solutions for bag-in-box and spouted pouch, which opens the way for a further expansion of SIG’s competitive advantage.
A rigorous regulatory environment should not be an impediment to progress. On the contrary – the most experienced and agile companies are able to leverage regulatory requirements to enable and support them on their journey.
Companies that stay the course in their sustainability objectives will be prized by investors whose portfolios are oriented towards Net Zero and who recognize that a sustainable approach to business will increase profitability.”
Matt Sherwood
Chief Executive Officer Pothos Partners & Chief Investment Officer for the Pothos Climate Fund
“SIG’s commitment to helping forests to thrive naturally goes hand in hand with the goal of protecting nature and biodiversity. However, the Company’s ambitious climate goals are also a vital pillar, ensuring a holistic and cohesive approach to the challenges that the natural world faces today.
SIG has made meaningful commitments to WWF’s Forests Forward program. I am pleased to see that, in addition to on-the-ground action, engagement with suppliers on afforestation and restoration of additional forest areas is starting to move ahead. This is how partnership between WWF and private sector companies brings real benefits.
In 2024, SIG and WWF announced their third project to support forest ecosystems around the world. This project, in Thailand, follows on from the projects already underway in Mexico and Malaysia. All three projects not only address the degradation of forest landscapes and the decimation of wildlife species – they also engage and empower local communities in order to deliver fair and lasting solutions.”
Thomas Vellacot
Chief Executive Officer, WWF Switzerland
“Consumers generally want packaging to be environmentally friendly but not to the detriment of ease of usage and food safety. The task therefore is to meld optimal use of resources and outstanding design with food integrity. SIG has succeeded in doing this, as evidenced by its innovation journey so far – although we all recognize that more work needs to be done in moving towards cost parity for the most sustainable formats.
Recyclability is the main driver for the beverage carton to be perceived as environmentally friendly. The use of renewable and recycled materials and a reduction in plastics content are key to deliver on the ambition. SIG’s targets on increasing the already high paper content in its aseptic cartons and its introduction of both renewable and recycled plastics are therefore key milestones. Further progress will be made through an innovation roadmap that anticipates the expectations of the GenZ consumers of the future.”
Veronique Cremades-Mathis
Chief Strategy & Commercial Officer, SATS