Packaging of America : Sustainibility Report (PCA 2023 Responsibility Report)
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value
2023 RESPONSIBILITY REPORT
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Our Circular Bioeconomy
For decades, the pulp and paper industry has embodied the principles of circularity by strategically managing resources such as wood fiber, water, chemicals and energy. These practices create value for our customers and stakeholders by reducing environmental impacts and enhancing cost efficiency.
Our 2022 Responsibility Report demonstrated how it all starts with
a tree. Trees first grow and remove CO2 from the atmosphere
before being transformed into paper and packaging
Sustainable Forest Management
solutions that are an essential part of daily human
life. To provide enduring natural resources, trees
& Conservation
Sustainable
that are harvested are replaced and effectively
Production
managed. PCA foresters and our strategic
partners collaborate to improve the health
R
of working forests, which in turn supply
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C
G
O
E
the raw materials that our operations
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S
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E
U
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R
transform into sustainable products
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T
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including biogenic/renewable energy
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&
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B
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from waste that is used to power our
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B
D
U
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L
G
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operations. PCA's commitment to our
E
RY
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L
&
H
VE
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O
D
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circular bioeconomy is outlined in
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R
E
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F
Y
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our Sustainable Business Principles
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on page 7of this report.
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ING
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PCA designers and packaging engi-
neers collaborate with our customers
i
n
to develop right-sized,high-perform-
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t
o
l
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t
ing packaging solutions that are widely
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r
a
t
c
d
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e
d
recycled and sometimes reused.
As
•
ro
Tra
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n
sf
n
or
ma
io
Responsible
illustrated in the accompanying graphic,
tion
•
Transport
Consumption
our circularity is depicted by our sustain-
able forest management, sustainable man-
ufacturing and responsible consumption-all
Sustainable
pivotal for sustaining biodiversity.
Manufacturing
We inhabit a single planet, an interconnected system upon which all life depends. PCA's use of raw materials
from carbon sinks, sustainable forest management practices, adherence to voluntary fiber certifications, use of biogenic
fuels from wood waste to power our mills with renewable
energy, high recovery rates and multiple end-of-life options for our products, and our pursuit of carbon capture technologies that aim to result in net-zero emissions from our operations and supply chain by 2050, offer reasons for optimism as we work to avoid the worst impacts of climate change while creating value for all of our stakeholders.
PCA and our industry's commitment to a circular bioeconomy not only safeguards natural resources but also illustrates a practical path toward achieving ambitious sustainability goals. Together, we can foster an environment where both natural and human systems thrive in harmony.
1 More than 93% of old corrugated containers (OCC) were recycled in 2022-an increase from 2021 and, overall, a three-year average of 91.3%. While in 2022, the paper recycling rate was nearly 68%, holding approximately stable to the 2021 rate. | AF&PA(afandpa.org)
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About This Report
4
Executive Statement
5
VISION AND STRATEGY
6
Sustainable Business Principles
7
Materiality
8
Stakeholder Engagement
10
ESG Leadership and Governance
11
OUR BUSINESS
12
Company Profile
13
Map of Operations
14
POLICYAND PLANNING
15
ETHICS AND INTEGRITY
16
Corporate Governance
16
Corporate Integrity and Compliance
18
Compliance and Ethics Training
19
PLANET
20
ENVIRONMENTAL PERFORMANCE
21
Climate Change
21
Emissions
27
Energy
30
Water and Effluents
33
Waste
38
PRODUCT STEWARDSHIP
40
Sustainable Forest Management
40
Sustainable Fiber Sourcing
42
Raw Materials
44
Due Diligence System and Risk Assessment
45
Biodiversity
46
Product Safety and Chemicals Management
47
End-of-Life Treatment
48
PEOPLE
49
HEALTH AND SAFETY
50
Occupational Health and Safety
50
Consumer Health and Safety
56
OPPORTUNITIES, CULTURE AND ENGAGEMENT
57
Employment
57
Learning and Development
61
Diversity, Equity and Inclusion
65
Employee Engagement and Corporate Giving
68
Meeting Customer Expectations
72
APPENDIX
74
Disclaimer and Forward-Looking Statements
75
GRI Index
76
SASB Index
76
TCFD Index
76
Membership of Associations
77
List of Colleges Where We Recruit
78
Emission Factors and Global Warming
Potential (GWP)
79
Employer Information Report EEO-1,
Employment Data
80
Master Data Table
81
Glossary
86
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About This Report
This is PCA's 2023 Responsibility Report that covers our operations from January 1 through December 31 and focuses on the progress, initiatives, goals and achievements of Environmental, Social and Governance (ESG) priority topics in 2023 and our preparations for 2024 and beyond.
This report is produced with guidance and considerations of the Global Reporting Initiative (GRI) Universal Standards, the Sustainability Accounting Standards Board (SASB) and the Task Force on Climate-related Financial Disclosures (TCFD). This report has gone through several data validation, review and approval processes involving both PCA officers and senior management employees on topics in their respective areas of responsibility as well as approval by the Sustainability Committee of our Board of Directors, which includes our Chairman and Chief Executive Officer (CEO).
For questions about the content of this report, please contact: [email protected].
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Executive Statement
Mark W. Kowlzan
June 28, 2024
Chairman and Chief Executive Officer
To all Stakeholders,
At PCA, we have always taken a long-term view when it comes to running our business. Our time, effort and financial investments are focused on actions that create value for all our stakeholders. In last year's Responsibility Report, we shared our goal to become a net-zero carbon emissions company by 2050 and our intentions to explore biogenic carbon capture and storage (CCS), which represents the next frontier for our circular bioeconomy.
During 2023, we made considerable progress advancing our exploration of CCS with the selection of a technology partner, the completion of a feasibility study, the planning and arrangement for a pilot trial to begin in the third quarter of 2024, discussions with potential carbon dioxide (CO2) transport and storage partners, monitoring of federal and state-level legislation and permit processes, and the continued advancement of our in-house Carbon Neutrality team's knowledge base, including a site visit to tour and learn about a similar technology already in use in a different industry.
While our goal to have our first CCS facility operational by the end of 2028 remains on schedule, we are not relying on CCS to reach our short-term climate target. To achieve our 2030 target, our plan includes investing in energy attribute certificates for more than half of this target, which financially supports the development of large-scale renewable energy projects bringing additional carbon-free energy capacity to North America. During 2023, we evaluated several developers and projects and bid on a large- scale project. We are continuing our efforts and bidding and remain on track for our 2030 target.
For two decades, PCA has created value from robust, strategic, cost-reducing and process improvement capital spending in our converting facilities and mills. Moving forward, to ensure all major mill capital projects consider the impact on our carbon footprint, we have implemented an internal price on carbon to evaluate changes in scopes 1 and 2 emissions and to broadly engage our employees in helping us identify opportunities for low-carbon or emission-free alternatives.
We continue to believe we are in a strong position to achieve net-zero carbon emissions by 2050. Our confidence is due to our sourcing of primary raw materials from carbon sinks (sustainably managed forests), creation and use of biogenic energy from wood waste, high product recycling rates, our proven track record of effective capital deployment, the capabilities of our people, and our potential to capture and permanently store biogenic CO2.
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VISION AND
STRATEGY
Sustainable Business Principles
Materiality
Stakeholder Engagement
ESG Leadership and Governance
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Sustainable Business Principles
PCA's Sustainability Committee of the Board of Directors formalized nine Sustainable Business Principles to align our strategies, set goals for the organization and report our progress through the year 2050.
1
Prioritize the health and safety of our employees above all else to achieve
a workplace free from serious injuries and fatalities.
2
Build a resilient culture oriented toward serving the needs of one another, and
our stakeholders.
3
Invest in our people, our operations, technology and science, and our
communities to attain unparalleled employee engagement, operational
excellence and customer satisfaction.
4
Make a continuous effort to maximize the efficiency of everything we do
to reduce the consumption of raw materials and minimize waste in all its forms.
5
Uphold the principles of sustainable forest management to provide
ecological, social and economic benefits to the communities where we operate.
6
Increase the use of renewable or carbon-free energy sources until
greenhouse gas emissions from fossil fuels have been effectively mitigated.
7
Be a good steward of the watersheds and aquifers we depend on by
understanding water as a shared resource and collaborating with others to
ensure water security.
8
Manufacture high-quality,high-performance products from responsibly
sourced renewable materials that are recyclable or reusable.
9
Act with integrity and use responsible business practices to earn the trust
of our stakeholders.
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Materiality
Our materiality approach is guided by our commitment to being a responsible business and creating value for our stakeholders. Conducting a materiality assessment helps us understand our most important and significant ESG topics for managing long-term economic risks and is foundational to our ongoing ESG strategies and priorities. The five-step process to our materiality assessment can be observed below:
Five-Step Process to Materiality Analysis
Identify
Identify
Obtain
Identify
feedback
Analyze
full list of
list of
most material
from
data
ESG topics
stakeholders
ESG topics
stakeholders
1
2
3
4
5
By leveraging Datamaran's data analytics platform and expertise, PCA has identified a set of sector-specific ESG risks and opportunities that are material to the company. In 2023, we updated our list of material topics. We also conducted a thorough review of PCA's core Environmental, Social and Governance priorities, reflecting the changes in the risks and opportunities that the company faces.
A Comparison Between 2022 and 2023 Materiality Topics
Compared with 2022, the majority of our material topics remain unchanged. For topics that have changed in priority, the most meaningful changes included public health and air emissions, which both were lowered in priority. Topics that slightly increased in priority included waste and hazardous materials management, human rights, water and wastewater management, and responsible procurement and supply chain management.
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High Priority
STAKEHOLDERS
Our Materiality Topics
Energy management & transition to carbon-neutral energy
Water & wastewater management
Product responsibility
Waste & hazardous
materials management
Responsible
Climate change & GHG emissions
procurement
& supply chains
Human rights
Diversity, equity & inclusion
Air emissions
Public health
Employee
Community relations
well-being,
health &
safety
Natural capital & ecological impacts
Organizational culture & workforce management
Labor practices
Meeting customer expectations
Innovation & technology
PCA
High Priority
High Priority
Issues
Medium Priority
Issues
Low Priority
Issues
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Stakeholder Engagement
PCA engages with internal stakeholders every two years to evaluate ESG issues. We also regularly engage with trade organizations, industry associations and topic-based NGOs to understand the impacts PCA has on people and the planet, and the impact people and the planet have on PCA. This two-way approach helps us better understand risks and opportunities so that long-term risks are more effectively mitigated, and opportunities captured. Our primary stakeholders are individuals or groups that are or could be affected by PCA's activities, and they include shareholders, employees, customers, suppliers, com- munities, NGOs, government and regulators. Our ESG and Corporate Sustainability team meets at least once per year to discuss potential initiatives or programs based on the outcomes of these processes, and periodically to discuss planning and implementation. The Board Sustainability Committee oversees the company's practices, performance and strategy regarding environmental, health and safety, sustainability and corporate responsibility, and the full Board of Directors (Board) receives updates from the Chair of our Sustainability Committee. Our Sustainability Committee met four times in 2023 and is scheduled to meet four times in 2024. PCA highly values the feedback we receive from our stakeholder engagement exercises, and we use the results to inform and shape our sustainability strategies.
For more information on PCA's stakeholder engagement activities, see Employee Engagement and Corporate Giving, Customer Engagement, and Supplier Engagementsections of this report.
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VISION AND STRATEGY
Disclaimer
Packaging Corporation of America published this content on 28 June 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 June 2024 22:29:32 UTC.