ATR
Climate Transition
Plan
2024
1
Table of Contents
Introduction
3
About this Plan
5
Governance
5
Position and Responsibilities
6
for Climate-related Issues
Board Members with Competence
11
on Climate-related Issues
Update Frequency
12
Climate-related Incentives
13
Risks and Opportunities
14
Targets
16
2023 Performance
20
Scenario Analysis
19
Financial Planning
22
Collaboration throughout
23
the Value Chain
Supplier Engagement
23
Customer and Consumer Engagement
24
Partner Engagement
25
Conclusion
26
2
Introduction
75+ Years of Innovation
A market leading, proprietary dosing and precision dispensing company
Proprietary Dosing
Precision Consumer
Dispensing
& Dispensing
Dispensing
Closures
Introduction
Aptar is a global leader in the design and manufacturing of a broad range of drug delivery, consumer product dispensing and active material science solutions. Aptar's innovative solutions and services serve a variety of end markets, including pharmaceutical, beauty and home, and food and beverage. Headquartered in Crystal Lake, Illinois, Aptar has manufacturing facilities in North America, Europe, Asia and Latin America.
While we offer a diverse range of services and products, our core offerings include dispensing pumps, closures, aerosol valves, elastomeric primary packaging components, active material science solutions, and digital health solutions.
For more information, visit www.aptar.com.
Over 13,800 dedicated employees in 20 countries*
8,400
2,800
2,500
Europe
Asia/LATAM
North America
4
*Global headcount as of December 2023
About this Plan
There is a growing need for organizations across the globe to align their business models with relevant climate science. Climate Transition Plans demonstrate the actions that an organization will take to achieve a lower-carbon future within a thriving economy. This Climate Transition Plan has been developed to align with the guidance and reporting standards provided by CDP for Climate Transition Plans.
Additional details on Aptar's climate-related actions and progress not mentioned in this plan can be found with our ESG Reporting Center on Aptar.com. Aptar is continually working to sure that our sustainability strategy is aligned with industry best practices and benchmarks. We commit to reviewing this Climate Transition Plan on an annual basis as aligned with our annual sustainability reporting cycle.
Governance
Aptar is committed to addressing climate-related issues with a high level of oversight from its board of directors. The board comprises individuals who hold specific roles and responsibilities related to climate-related matters. The following is a list of senior leaders and board members along with their respective roles and regarding climate-related issues:
Chief Executive Officer (CEO)
Chief Financial Officer (CFO)
Chief Human Resources Officer (CHRO)
Executive Committee ("ExCom", C-Suite)
General Counsel
Board Chair
Board-level Committee
5
Position and Responsibilities for Climate-related Issues
Chief Executive Officer (CEO)
Aptar's President and Chief Executive Officer (CEO) is actively dedicated to supporting and promoting the company's global sustainability strategy, which encompasses social, environmental, and economic pillars. The CEO effectively manages the incorporation of sustainability initiatives into Aptar's business standards, rules, and guidelines. The CEO receives
monthly updates on specific initiatives, including progress on goals, targets, emerging sustainability trends, as well as risks and opportunities associated with material sustainability issues and climate change.
The CEO plays a crucial role in leading the Executive Committee, making strategic decisions related to climate change. These decisions include Aptar's commitment to Science Based Targets, and the final decision to update the company's Scope 1 + Scope 2 target to the more ambitious 1.5-degree scenario. Additionally, the CEO determines future commitments regarding SBTN Nature Positive and plans along Aptar's Energy Roadmap, such as supporting the renewable energy purchasing strategy.
Specific climate-related responsibilities of the CEO include, but not limited to:
Furthermore, the CEO actively contributes to Aptar's industry thought
leadership by representing the company within organizations such as the World Business Council for Sustainable Development. Through these engagements, the CEO helps Aptar maintain its position as a trusted authority in the industry.
6
Position and Responsibilities for Climate-related Issues
Chief Financial Officer (CFO)
Chief Human Resources Officer (CHRO)
The Chief Financial Officer (CFO) holds responsibility for overseeing
The Chief Human Resources Officer (CHRO) assumes a significant role
sustainability matters with a focus on external reporting and assurance,
in addressing sustainability concerns, particularly those related to social
operational control, and risk management.
and labor issues. The CHRO's responsibilities encompass overseeing
The CFO confirmed the decision for Aptar to become a public signatory of
diversity, inclusion, and equity initiatives, fair labor practices, human
rights considerations, as well as employee engagement and development
the Task Force for Climate Related Financial Disclosures (TCFDs).
programs.
Additionally, the CFO is actively involved in our TCFD evaluation and
reporting and oversees the integration of TCFDs into Aptar's Enterprise
Regarding our Science Based Targets, the CHRO's understanding and
Risk Management, ensuring that these risks are appropriately addressed
support were crucial in facilitating the transition to environmentally
and managed.
friendly options for our fleet of cars provided as employee compensation
The CFO evaluates sustainability implications when contemplating capital
benefits. This shift towards greener transportation options was made
possible through the active involvement of the CHRO.
expenditures and decides on actions necessary to accomplish our
climate-related commitments like our science-based targets (i.e.,
Furthermore, the CHRO plays a vital role in integrating sustainability
renewable energy purchases, refrigerant conversions, and other projects
principles into our Leadership for Growth employee survey. By
requiring CapEx). Furthermore, the CFO manages climate-related
incorporating sustainability-related questions and themes into this survey,
acquisitions, mergers, and divestitures, and oversees the provision of
the CHRO helps ensure that our employees' perspectives and feedback
climate-related employee incentives.
contribute to the advancement of our sustainability goals and initiatives.
7
Position and Responsibilities for Climate-related Issues
Executive Committee
Within the Executive Committee ("ExCom", C-Suite), each segment president oversees a unique excellence pillar or subject matter area - Operational Excellence, Innovation Excellence, Commercial Excellence, Global Purchasing, and Global Sustainability. The president responsible for the Beauty segment serves as the direct line of reporting for the Global Sustainability Team.
The Global Sustainability Team, led by the Vice President of Sustainability, comprises industry experts who develop and implement sustainability programs within Aptar. During monthly ExCom meetings, the Chief Sustainability Officer and the Product Sustainability Director provide updates and insights to the Executive Committee members and the Senior Vice President of Investor Relations.
Additionally, the Chief Sustainability Officer, along with the Beauty Segment President, shares relevant information with the Board of Directors.
The responsibility to implement sustainability initiatives at a regional, business unit, and operational level lies with the three Segment Presidents and the President of Aptar Asia. For instance, the Segment Presidents make decisions on procuring renewable electricity for sites within their jurisdiction, as well as determine which sites should pursue landfill- free certification and which products within their segments can transition to post-consumer recycled (PCR) resin.
The Senior Vice President of Investor Relations acts as the key point of contact for the investor community. This role involves communicating Aptar's progress and challenges related to climate change to investors and stakeholders.
8
Position and Responsibilities for Climate-related Issues
Board Chair
The Board Chair plays a critical role in overseeing Aptar's sustainability strategy and providing guidance to the Executive Committee. They are responsible for directing the company's governance, programs, and policies, with a specific focus on climate change risks and opportunities and their influence on the company's performance.
The Board Chair holds decision-making authority regarding the sustainability strategy, including the final confirmation of decisions that are reflected in public disclosures such as the Corporate Sustainability Report. Their involvement ensures that the sustainability efforts and commitments of Aptar are aligned with the company's overall objectives and are accurately communicated to the public.
Board-level Committee
One of the key responsibilities of Aptar's Corporate Governance Committee is the development and recommendation of a set of corporate governance principles for the company and the Board.
As environmental, social, and governance (ESG) topics have gained increased importance, the committee regularly receives and reviews ESG information. The Corporate Governance Committee actively participates in the annual sustainability reporting process, carefully evaluating targets, data, and public disclosures before their publication, particularly within the Corporate Sustainability Report and Annual Report.
General Counsel
Given our public commitments that require frequent review, the Executive Vice President, General Counsel, and Corporate Secretary serves as the liaison between the Global Sustainability Team and the Board of Directors. This role ensures that information and progress related to each public ESG target are effectively presented to the Governance Committee. The committee, acting in an advisory capacity, provides valuable insights and challenges our progress in achieving these targets.
9
Additional Positions and Responsibilities for Climate-related Issues
Chief Sustainability Officer
Reporting into the Executive Committee, the Chief Sustainability Officer (CSO) oversees sustainability topics focusing on the integration of climate-related issues into the overall Aptar strategy, monitoring progress against climate-related corporate targets and managing climate-related risks and opportunities.
Chief Purchasing Officer
Reporting into the Executive Committee, the CPO oversees purchases that support the global sustainability strategy, including the purchase of green energy, sustainable materials and strategy/approaches for the mapping of sustainable initiatives along the supply chain. The CPO hosts a Supplier Summit during which suppliers are engaged on products and services that enable Aptar to meet our sustainability targets.
Environmental/Sustainability Leader
Reporting directly to the CSO, the Sustainability Manager defines the climate-related risks and opportunities and completes the climate-related scenario analysis. This function also supports the development and implementation of the climate transition plan in agreement with the climate-related strategy.
Energy Manager
With a reporting structure under the Chief Operations Officer, The Global Energy Manager oversees the identification and implementation of energy conservation measures (ECM) that contribute to the development and implementation of the climate transition plan. This function manages dedicated budgets for the ECM monitoring climate-related corporate targets (for example SBT).
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Disclaimer
AptarGroup Inc. published this content on November 01, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on November 01, 2024 at 15:51:15.170.