Mike Doss

DELIVERING MEANINGFUL PROGRESS ON OUR ESG COMMITMENTS

“At Graphic Packaging, we are committed to delivering fiber-based sustainable consumer packaging solutions that enable environmentally responsible choices. We deliver on this promise through a high-performance culture that embraces diversity and inclusion (D&I), promotes a growth mindset and values safety and well-being.”

ESG Report

ESG REPORTING

Our goal is to provide transparent, comprehensive, and succinct information about Graphic Packaging’s sustainability efforts. We launched our 2020 ESG digital report recapping our progress and performance in order to better present comprehensive information to stakeholders in an engaging way, while also allowing for more continuous communication and updates.

2020 ESG HIGHLIGHTS

Risk rating upgraded to Low; Management rating increased to Strong
Climate Change rating upgraded from BB to A-; increased Water Security and Forest ratings
ESG rating upgraded to BBB from BB

500Million

units of foam and plastic cups converted to paper

98%

of packaging solutions are recyclable today

7% Reduction

in GHG emissions / sales $ ('20 vs '19) globally

OUR STRATEGY

At the heart of our positive impact are the innovative, fiber-based packaging solutions we design with consumers and the future of our planet in mind. Made from renewable and recyclable materials, our environmentally-conscious solutions meet customer needs while supporting a circular economy.

And at every step in our value chain, we are committed to making a world of difference by engaging employees, customers, and communities by continuously improving the footprint of our operations; by supporting and growing with our partners; and by delivering profit and value for all stakeholders.

GOALS AND PROGRESS

planet

Planet

Leverage industry-leading sustainability profile, reducing impact on the environment

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people

People

Engage employees in an inclusive and high-performance culture

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Partners

Partners

Grow with the best customers in the best markets

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planet

Products

Create innovative and sustainable packaging solutions that inspire

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Greenhouse Gas Emissions

Greenhouse Gas Emissions

Goal
15%* reduction in GHG
emissions (CO2e/sales)
Progress through 2020 over base year
7% reduction
Non-Renewable Energy

Non-Renewable Energy

Goal
15%* reduction in non-renewable energy (MMBtu/sales)
Progress through 2020 over base year
.3% reduction increase
Water Conservation

Water Conservation

Goal
15%* reduction in water usage (gallons/saleable ton)
Progress through 2020 over base year
5% reduction
Waste Diversion

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

Forest and Fiber Certification

Goal
100% of global facilities compliant with a certification standard
Progress
100% of global facilities maintained global compliance

*Company goals from base year of 2016 **Company goals from base year of 2018

Engagement

Engagement

Goal
Top quartile engagement scores
Progress
Bi-monthly Global Town Hall web events; Coffee with CEO
Safety

Safety

Goal
Continue progress to aspirational goal of 0 incidents
Progress
Recordable incident rate 1.09 in 2020; new safety video training launched globally
Growth and Performance

Growth and Performance

Goal
Play on a winning team
Progress
Implemented Xccelerated Performance program moving performance and career development to year round dialogue
Development & Training

Development & Training

Goal
Commitment to professional and personal development opportunities for employees through GPI University
Progress
GPI University partnered with LinkedIn Learning, providing a digital library of over 6,000 courses for employees
Talent Acquisition

Talent Acquisition

Goal
Attract and retain the right talent
Progress
Annual Leadership Development Program; Key Pipeline Talent Experience; GPI Leads Resource for Leaders
Market Share

Market Share

Goal
#1 market share across North America & Europe
Progress
~3.9M tons of paperboard produced in 2020, #1 and #2 in three paperboard substrates produced in U.S. market
Growth

Growth

Goal
100–200 bps/year sustainability supported, organic growth
Progress
Pivot to net organic growth in 2H19; 400 bps of net organic sales growth in 2020
New Product Sales

New Product Sales

Goal
$400M - $700M net new product sales 2020-2025 included in organic growth
Progress
>$100 million in net new product sales during 2020
Mergers & Acquisitions

Mergers & Acquisitions

Goal
Strategic, high return M&A
Progress
Completed acquisition of Quad/ Graphics, Inc. and the Consumer Packaging Group Business from Greif in 2020
Margin Growth

Margin Growth

Goal
$400M –$500M in productivity 2020-2025 to drive margin growth
Progress
Achieved $57 million in net productivity in 2020
Recyclability

Recyclability

Goal
100% of GPI sales from products that are recyclable
Progress
98% recyclable
Reducing Plastic

Reducing Plastic

Goal
40%** reduction in LDPE usage
Progress through 2020 over base year
16.5% reduction
Recovery Rate

Recovery Rate

Goal
70% increase industry
recovery rate of paper and paperboard in 2020
Progress
65.7% recovery rate
(American Forest & Paper Association)

*Company goals from base year of 2016 **Company goals from base year of 2018

PROFIT

Generate superior returns

2019 2020 Vision 2025
Paperboard Integration 68% 70% 80-90%
Sales $6.2B $6.6B ~$10B
ADJ EBITDA Margins 16.7% 16.3% 18-20%
ROIC 8% 8.5% 10-12%
ADJ EPS $0.87 $1.12 $2.00+
Normalized Capex (% Sales) 5% 5% 5%

Recent graphic packaging esg news

Our sustainability journey