We intend to redefine leadership in the paperboard packaging industry with our Vision 2025. Our vision outlines how we will be better stewards of our planet, supporters of our people, allies to our partners, all while generating returns for our shareholders. Vision 2025, which guides our sustainability-driven business strategy, lays out bold goals and objectives that allow us to measure our progress and ensure we are on track. The four pillars of Vision 2025 are:
Planet
Leverage industry-leading sustainability profile, reducing impact on the environment
Show goals and progress
People
Engage employees in a high-performance culture
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Partners
Grow with the best customers in the best markets
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Profit
Generate superior returns
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Greenhouse Gas Emissions
Goal
15%*
reduction in GHG
emissions (CO2e/sales)
Progress through 2019 over base year
Non-Renewable Energy
Goal
15%*
reduction in non-renewable energy (MMBtu/sales)
Progress through 2019 over base year
0.1%
reduction
Water Conservation
Goal
15%*
reduction in water usage (gallons/saleable ton)
Progress through 2019 over base year
1.3%
reduction
Recyclability
Goal
100%
products recyclable
Progress
97%
81% nationally
16% regionally
Reducing Plastic
Goal
40%**
reduction in LDPE usage
Progress through 2019 over base year
4.3%
reduction
Recovery Rate
Goal
70%
increase industry
recovery rate of paper and paperboard in 2020
Progress
66.2%
recovery rate
(American Forest & Paper Association)
Waste Diversion
Goal
Drive out waste in all our operations
Progress
100%
of global carton manufacturing plants engaged in a waste diversion program
Forest and Fiber Certification
Goal
100%
of global facilities compliant in Graphic Packaging's forest/fiber certification standard
Progress
100%
of facilities globally compliant
Engagement
Goal
Top quartile engagement scores
Progress
Bi-monthly Global Town Hall web events; Coffee with CEO
Safety
Goal
Continue progress to aspirational goal of 0 incidents
Progress
Global incident rate reduced by 1.05 (4% decrease YoY)
Growth and Performance
Goal
Play on a winning team
Progress
Xccelerated Performance (XP) pilot; plans to scale globally
Development & Training
Goal
GPI University 30 hours of training per employee, per year
Progress
On track for “back to school” grand opening in Fall 2021
Talent Acquisition
Goal
Attract and retain the right talent
Progress
Robust succession plans for Top 100 Roles; pipeline talent program for High Potentials
Market Share
Goal
#1
paperboard market share in North America & Europe
Progress
~3.8
million tons of paperboard produced in 2019, #1 and #2 in three markets served
Growth
Goal
100–200 bps/year sustainability supported, organic growth
Progress
Pivot to net organic growth in 2H19; 300 bps of net organic sales growth in 1H20
New Product Sales
Goal
$400M - $700M net new product sales 2020-2025 included in organic growth
Progress
$100
million in net organic sales in 1H20; new products accounted for more than half
Mergers & Acquisitions
Goal
Strategic, high return M&A
Progress
Artistic Carton acquisition in 2019; Quad and Consumer Packaging Group acquisitions in 1H20
Margin Growth
Goal
$400M –$500M in productivity 2020-2025 to drive margin growth
Progress
Achieved $74 million in net productivity in 2019
| Profit |
2019 |
Vision 2025 |
| Paperboard Integration |
68% |
80-90% |
| Sales |
$6.2B |
~$10B |
| ADJ EBITDA Margins |
16.7% |
18-20% |
| ROIC |
8% |
10-12% |
| ADJ EPS |
$0.87 |
$2.00+ |
| Normalized Capex (% Sales) |
5% |
5% |