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 sustainability reporting and impact the implementation of policies, actions and allocation of resources.

Identification of material topics

Our material topics were identified through our 2024 double material assessment (DMA), performed in accordance with the European Sustainability Reporting Standards (ESRS) 2023^1,2 and the European Financial Reporting Advisory Group (EFRAG) Implementation Guidance. The double materiality assessment was performed at SIG Group level to identify material impacts, risks and opportunities in SIG’s value chain. The ESRS double materiality assessment is more granular compared to an assessment of material topics under the Global Reporting Initiative (GRI) Standards 2021³. Additional information on the ESRS double materiality assessment can be found in the SIG 2024 Annual Report.

In 2025, we reviewed the 2024 double materiality assessment results, considering changes in our activities or business relationships, and determined that they remain accurate for the reporting year 2025². Hence, the material topics identified for the reporting year 2024 are still relevant in 2025.

Other sections in this Annual Report include additional information on how we manage our material topics. An explanation of the material topics and how they map to our sustainability chapters are presented in the Overview of our material topics.

We continue to report in line within the GRI Standards 2021. Our adjusted timeline for the full adoption of the Corporate Sustainability Reporting Directive (CSRD) is included in Appendix: Reporting regulations and frameworks.

1 ESRS 1 General requirements. Established under the Corporate Sustainability Reporting Directive (CSRD) issued by the European Union and applicable for large companies with significant operations in the EU.

2 The assessment and review of material topics has also been used for the Swiss non-financial matter report to satisfy the due diligence requirements.

3 GRI 3-1 Process to determine material topics.

Overview of our material topics

An overview of our ESRS aligned material topics, reported against the GRI Standards 2021 are presented below with a link to the relevant chapters of the Sustainability Report. The relation of material topics to our key performance indicators can be found in Appendix: Key performance indicators.

Climate change

• Climate change: Greenhouse gas emissions, energy use and fossil fuel reliance drive climate change, with most emissions occurring outside our direct control in sourcing, logistics and end-of-life treatment. Physical risks and regulatory changes could lead to incremental costs, but investing in physical risk adaptation measures and low-carbon packaging solutions mitigate risks and increase our competitiveness. Climate impacts on supply chains, distribution systems and food security may increase the demand for shelf stable packaging under ambient conditions such as our aseptic packaging portfolio.

Biodiversity and ecosystems

• Biodiversity and forest ecosystems: Raw material extraction and related transportation impact biodiversity, such as through habitat destruction and pollution. Packaging disposal can release pollutants and affect ecosystems, if not properly managed. Regulatory changes could lead to incremental costs. Responsible sourcing, design for recycling, and fostering collection and recycling initiatives help mitigate these impacts.

Water and marine resources

• Water: Extracting raw materials like bauxite for aluminum and wood for paperboard is water-intensive, leading to significant water withdrawals, depleting local resources, and wastewater generation.

Pollution

• Water: Wastewater, such as from aluminum extraction and paperboard production, can contain pollutants, while incorrect disposal can impact water quality at end-of-life.

• Waste and circular economy: Raw material sourcing and production can reduce air, soil and water quality through the release of air pollutants.

Resource use and circular economy

• Waste and circular economy: Waste can be generated through sourcing and production of our raw materials, unrecyclable products and end-of-life treatment. Reliance on non-renewable resources perpetuates a linear economy. Product innovation, and fostering collection and recycling initiatives enhance circularity and reduce waste.

• Sustainable raw materials: Using non-renewable resources may cause resource depletion. Renewable sourcing, and renewable and recycle-linked sourcing, mitigates waste impacts and capitalizes on opportunities like resource efficiency, new market demand, green financing, resilience, and enhanced reputation.

• Innovation in products and services: All our packaging is designed for recycling, with bag-in-box and spouted pouches offered as designed-for-recycling alternatives based on customer choice. Aseptic packaging, innovative fitments and efficient filling machines support waste reduction and improve resource efficiency.

Consumers and end-users

• Product safety and integrity: Food safety certifications across all production plants help ensure consumer safety, while a residual risk remains if products do not meet our stringent quality standards.

Own workforce

• Health, safety and wellbeing: Strict, continuously improving health and safety standards significantly reduce risks, yet workplace injuries remain a possibility in manufacturing operations. We improve health and wellbeing through targeted initiatives.

• Diversity, equity and inclusion: We maintain strong policies and preventive measures to address potential incidents of workplace violence and harassment.

• Employee satisfaction, development and working environment: Extensive learning and development opportunities are provided for all employees.

Business conduct

• Business conduct: Our culture of corporate integrity strongly supports compliance and ethical business conduct. Operating globally exposures us to risks of corruption and bribery, mitigated through our compliance systems, analysis, training and our grievance mechanism.

• Responsible suppliers: We are committed to responsible purchasing practices, which foster sustainable and ethical actions at our suppliers.

Workers in the value chain

• Responsible suppliers: Operating globally presents inherent challenges, including the potential for forced labor within the wider supply chain, but our sourcing and supplier commitments help foster safe working practices and ethical actions, enforce human rights standards and prohibit forced and child labor.

• Human rights: Our supply chain faces challenges related to gender inequality, workplace violence and harassment, and disability inclusion. Health and safety concerns and job insecurity persist in the chemical and raw materials extraction industries.

Key business risks relating to material topics

Our material sustainability topics and risks – including climate-related risks – are closely aligned with our Enterprise Risk Management (ERM) framework and additionally informed by our Task Force on Climate-related Financial Disclosures (TCFD) report. Material sustainability topics are integrated with several of the main business risks, mitigation actions and opportunities identified in our latest enterprise risk assessment.

Each top risk, including the respective mitigation actions, is owned by a member of the Group Executive Board. Each mitigation action has an owner at Group level who works closely with the respective regional functions to ensure local implementation.

For additional details, see our ERM section and Appendix: TCFD report.