Committed to Our Purpose, Our People and Our Planet - Sonoco 2020-2021 Corporate Responsibility Report
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Committed to Our Purpose, Our People and Our Planet
Sonoco 2020-2021 Corporate Responsibility Report
Statement of Intent Principles of Corporate Responsibility
Become the acknowledged packaging and Sustainable Development
industry leader in creating and enhancing
• Customer commitment
a sustainable future that benefits all of
• Governance and integrity
Sonoco’s stakeholders through
• Financial performance
improvement of economic performance,
• Strategic leadership
social responsibility and environmental
• Environmental responsibility
stewardship.
• Employee health, safety and development
• Stakeholder engagement and communication
• Community support and philanthropy
Forward-looking Statements: Any statements of the Company’s or management’s expectations, beliefs, goals and forecasts in this document, including but not limited to our ability to reach certain
sustainability targets and goals, levels of production and efficiency, new product development and talent acquisition and performance targets, constitute “forward-looking statements” as defined in the Private
Securities Litigation Reform Act of 1995. Such statements are based on currently available information and are subject to various risks and uncertainties that could cause actual results to differ materially from the
Company’s present expectations. These risks and uncertainties include, but are not limited to, inflation of and volatility in raw material and energy costs, cutbacks in consumer spending that reduce demand for
the Company’s products, continuing pressure for lower cost and recyclable products, the Company’s ability to implement its business strategies, including productivity initiatives, cost reduction plans and
integration activities. Undue reliance should not be placed on such forward-looking statements, as such statements speak only as of the date on which they are made, and the Company undertakes no obligation
to update such statements except as required by law. Additional information regarding these and other risks is contained in the Company’s periodic filings with the Securities and Exchange Commission.
Sonoco 2020-2021 Corporate Responsibility Report
People and Packaging with a Purpose Contents
At Sonoco, we bring more to packaging than just the
package. Our integrated packaging solutions help define 2 Commitment to Our Stakeholders
brand personalities, create unique customer interactions 5 Commitment to Our Customers
and improve the quality of products and the quality of life
12 Commitment to Our Planet
for people around the world. We do all of this in the service
of our purpose: Better Packaging. Better Life. We take our 16 Commitment to Our People
corporate responsibility seriously, and our purpose helps 19 Commitment to Our Communities
define our commitments to enhancing the experiences of
our customers, colleagues, communities and shareholders. 22 Commitment to Our Shareholders
26 Sonoco at a Glance
Sonoco has used the Global Reporting Initiative (GRI)
28 Sustainability Oversight
to define the content of our 2020-21 Corporate Responsibility
Report. These guidelines form a voluntary framework of
principles and indicators used to measure and report
economic, environmental and social performance of the
Company. They also provide a standard of comparison
among Sonoco and our peers.
We have performed a quantitative,
stakeholder-driven assessment to identify
and prioritize the sustainability issues
that impact Sonoco and its stakeholders.
This report reflects our assessment and
the progress we have made in meeting
our stakeholder commitments. We have
carefully considered Company data and
projects from 2020 and 2021 and how
those projects affect our customers,
shareholders, associates, suppliers and
the communities we serve.
We are incorporating the 17 Sustainable Development Goals
established by the United Nations in their 2030 Agenda for
Sustainable Development as a benchmark for our progress
across a spectrum of initiatives to promote prosperity, while
protecting our planet. Where applicable, our efforts will be
identified by using the graphic icons developed by the U.N.
to represent a focus on one of the 17 different goals.
S O N O C O 2 0 2 0 -2 0 21 C O R P O R A T E R E S P O N S I B I L I T Y R E P O R T 1
Commitment to Our Stakeholders
There is more to packaging
than just the package.
Specifically, Sonoco is committed to reducing
absolute scope 1 and 2 greenhouse gas emissions
by 25% by 2030 from a 2020 base year. We have
also committed to reduce absolute scope 3
greenhouse gas emissions by 13.5% from a 2019
base year by working with our customers and
suppliers to develop innovative packaging
solutions that reduce packaging waste and
improve recyclability. In addition, we are actively
studying necessary operational changes,
technology developments and market changes
that would be required to achieve net-zero
Howard Coker, President and Chief Executive Officer greenhouse gas emissions by 2050. I’m pleased
to say our emission reduction targets
Packaging plays a fundamental role in providing sustainable, have recently been approved by
safe and hygienic delivery systems for food, medicines and other the Science Based Targets initiative
essential products around the world. As such, we believe the (SBTi).*
value of packaging is more than just its impact on the planet.
As a global leader in the production of uncoated recycled In order to continue delivering on our purpose of
paperboard as well as diverse consumer, industrial, healthcare Better Packaging. Better Life., we must operate with
and protective packaging, it is of utmost importance to Sonoco sustainability at the forefront and commit to
to address environmental challenges, such as climate change, doing our part to address climate change. Over
based on data-driven scientific criteria. And, we believe there the next decade, we will dedicate each of our
is a need for fact-based dialogues on the types of activities that more than 300 global operations to fully
contribute to environmental impacts and how these impacts can participate in reducing greenhouse gas emissions
be effectively minimized. by investing in energy efficiency and renewable
energy projects, purchasing power from certified
A Commitment to Ambitious 2030 Greenhouse Gas Reductions Goals
Sonoco has been dedicated to reducing its environmental
footprint for many years. While we have reduced normalized Scope 1 Scope 2 Scope 3
greenhouse gas emissions (GHG) by approximately 25% since Direct emissions Indirect emissions Indirect emissions
2009, we also are committed to advancing our environmental from company from purchased from sources
owned or energy associated with
progress by setting ambitious new targets to reduce our global controlled assets up- and downstream
greenhouse gas emissions in line with the Paris Climate operations
Agreement—to limit global temperatures to warming to
* The Science Based Targets initiative (SBTi) is a collaboration between CDP, the United Nations Global
well-below 2° C above pre-industrial levels. Compact, World Resources Institute (WRI) and the World Wide Fund for Nature (WWF). The SBTi defines and
promotes best practice in science-based target setting and independently assesses companies’ targets.
2 S O N O C O 2 0 2 0 -2 0 21 C O R P O R A T E R E S P O N S I B I L I T Y R E P O R T
Commitment to Our Stakeholders
green energy sources and implementing operational excellence Investing in Ourselves and Our People
processes to continuously reduce energy usage. As we focus on thinking about the future, we are
spending more time looking in the mirror, rather
To drive compliance of our greenhouse gas emission reduction than looking out the window. That means we are
goals, we are incorporating sustainability and environmental taking a closer view of our core consumer and
metrics into each of our business units’ plans and management industrial businesses and determining how
incentives. increased investment in our people and
technology can better drive both growth and
New Sustainability Leadership margin improvement.
To champion our sustainability efforts
going forward, we recently promoted A prime example of this strategy is our plan
Elizabeth Rhue to Staff Vice President to invest $115 million in Project Horizon, an
of Sustainability, reporting directly to me, investment to transform our Hartsville, S.C.,
to work more closely with our customers corrugated medium machine into a state-of-the-
and our leadership team. Elizabeth’s team art uncoated recycled paperboard URB operation
is tasked with identifying opportunities with annual production of approximately
to meet changing product needs as well Elizabeth Rhue 180,000 tons. This project is designed with the
as addressing the complex regulatory goal of being the lowest cost producer of URB in
and policy environment. the world. Expected
to be operational by
During her career with Sonoco, Elizabeth has worked directly the end of the second
with our customers on new products and market development quarter of 2022,
as well as laboratory R&D studies. there are a number
of significant construction projects currently
She will continue working with our customers and business units underway that will modernize the infrastructure
to develop robust, comprehensive roadmaps to help reach our of the entire Hartsville mill complex and allow
sustainability goals. This includes further development of our for the efficient and safe handling of raw materials
EnviroSense® line of more sustainable packaging. EnviroSense and finished goods. Furthermore, Project
packaging incorporates Horizon will generate important environ-
increased recycled content mental benefits, including reducing electricity
and improved recyclability consumption, which in turn will drive a reduction
and is represented across our in green-house gas emissions, as well as total
portfolio, from rigid plastics, water use.
to flexibles, to our iconic paper containers. In addition, we are
continuing to invest in our partnership with Tellus, a producer We are also investing to further improve our
of sugar cane pulp products, to build out production capacity for portfolio, including the acquisition of Can
Natrellis™ dual-ovenable meal bowls. Made from 100% U.S. Packaging, a French designer and manufacturer
grown sugarcane, an annually renewable resource, customer of sustainable paper packaging and related
demand for this unique food packaging continues to grow as equipment, which provides us with many new
work-at-home eating trends are increasing demand for convenient innovations, including patented technology to
frozen and chilled foods. You will find more examples of our produce a recyclable, high performance paper
EnviroSense products later in this report. package that can be made round, square, rectan-
S O N O C O 2 0 2 0 -2 0 21 C O R P O R A T E R E S P O N S I B I L I T Y R E P O R T 3
Commitment to Our Stakeholders
gular, oval, oblong or triangular. These Principle states, People Build Businesses
innovations complement our global by Doing the Right Thing, our people
EnviroCan™ recyclable paper can demonstrated yet again that when we
franchise. stay true to our values there is nothing we
can’t do together.
Investing in ourselves also
means we are spending more As We Look Forward
time engaging, developing and I am pleased that as a result of our efforts to
rewarding our 19,000 associates so they can be successful. Our reduce environmental, social and governance
human capital management priorities include protecting the (ESG) risks, Sonoco has been recognized over
health and safety of our people, embracing diversity and the past several years as one of Barron’s 100 Most
inclusion to make sure our organization reflects the diversity of Sustainable Companies, by Newsweek as one of
our customers and communities where we live and work; and America’s Most Responsible Companies and as
attracting, developing and retaining a talented workforce. More one of Fortune’s World’s Most Admired
information on our Human Capital Management efforts can be Companies.
found on page 18 of this report.
However, there is much more we can and must
Pandemic Response do together. As a top 10 recycler in the U.S., we
Despite the impact of the pandemic-induced global recession, must work with industry partners and other
we quickly refocused operations on accelerating production of stakeholders to better collaborate to achieve
food packaging to meet consumers’ growing preference for improved “end of life” for all packaging, no matter
at-home eating, while adjusting our industrial-related and the substrate. To make environmentally viable
protective packaging businesses in response to demand swings. decisions, it is imperative to establish scientific
We also developed vitally needed temperature-assured evidence on the true impacts throughout the
packaging to begin shipping life-saving vaccines and therapeutic full lifecycle of existing alternatives, and thereby
drugs to combat the spread of the Coronavirus. provide crucial data for conversations around
packaging, climate and better regulation. If you
As I look back at all we accomplished during the pandemic, it would like to know more about how we can
could never measure up to the spirit of generosity that I found in work together to support a shared vision of
our Company. I am struck by how much this organization has sustainability, please contact us at sonoco.
given back and impacted the lives of others, whether that was sustainability@sonoco.com.
providing essential food, medical and industrial packaging to
keep the global economy moving or helping our communities
and our neighbors navigate extremely difficult times. Several
of our businesses produced or provided personal protective Howard Coker
equipment which has been so critical to supporting frontline President and Chief Executive Officer
healthcare workers. We developed packaging for shipping July 26, 2021
COVID-19 diagnostic test kits, vaccines and other critical
medicines and medical devices. Some of our businesses
partnered with local farmers to provide packaging to help stock
food banks, which have become a lifeline for so many families
during these uncertain economic times. Just as our Guiding
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Commitment to Our Customers
Sonoco’s packaging solutions help define brands, create unique consumer
interactions and improve the quality of products. Getting there demands
a special mindset, unique perspective and passionate curiosity.
Sonoco ThermoSafe Launches EOS™ Line
Yes, We Can of Curbside Recyclable Temperature-Controlled Parcel Shippers
Brands are answering the
Sonoco ThermoSafe created the “It takes a company as uniquely
challenge of balancing
new EOS line of fully curbside experienced as Sonoco in paper
responsible materials sourcing recyclable temperature-controlled manufacturing, thermal insulation
with product and food safety, packaging to give concerned life science and recycling management to create
and Sonoco’s flagship can—the and perishable clients a truly curbside a product like the EOS line of shippers,”
EnviroCan™ paper container recyclable system from a trusted said Ron Haub, segment director for
with a steel bottom—was provider. Sonoco ThermoSafe.”
designed to meet the perform-
Made from 100% post-industrial,
ance needs of today’s brands.
pre-consumer paper fiber, a feedstock
The EnviroCan container’s body that some of Sonoco’s consumer paper
is made of 100% recycled fiber, products naturally create, the EOS line
of which 90% comes from is a promising vision of the circular
economy inside Sonoco.
post-consumer sources.
The can’s design enables it to be
recycled in the steel stream in
the U.S. and Canada, and it
is eligible for the relevant
Enval Partners with Kraft Heinz Co., Sonoco to Launch Project Touchdown
recycling label in Canada. Enval has partnered with Kraft Heinz Co. and Sonoco to launch Project
Touchdown, an initiative that seeks to improve packaging sustainability by
accelerating the deployment of new plastic recycling solutions in the U.S.
Yes, The U.K.-based Enval has developed technology to recycle aluminum from plastic-
We Can! to producing the right packaging
for a better world.
aluminum laminates and recycle flexible packaging using a proprietary pyrolysis
At Sonoco, we’re committed
The design of Sonoco’s
of balancing responsible
EnviroCan allows it to meet
™
materials sourcing with product
a brand’s ongoing challenge
and food safety.
meets
solution that produces feedstock that can be used in the production of new plastic.
a paper container with a steel bottom – not only
Our flagship container – to serving, but it can also
of the markets we are committed of which 90% comes
the performance needs fiber,
is made of 100% recycled
be recycled. The can body
from post-consumer sources. U.S.,
“We’re thrilled to be working with two groups as important in the consumer
in the steel stream in the
™
allows it to be recycled
The design of EnviroCan label in Canada.
for the relevant recycling
and EnviroCan is eligible
™
many consumers don’t
challenge. Unfortunately,
But today, we face a new ™
through their municipal recycling programs,
have access to recycle EnviroCan many other packages, is under-recycled.
packaged goods and packaging communities as Kraft Heinz and Sonoco. We’re
like
meaning our paper container,
ps, investment and
industry needs partnershi
The North American recycling Sonoco is committed
to impact significant change.
commitments from the industry world with ongoing efforts
negative impact on our
to reducing packaging’s both the paper and steel
rate of EnviroCan through
™
convinced that it is only via these types of collaborations, which involve players at
to increase the recycling
recycling streams.
l partners hips, Yes,
nts and externa
Through internal investme projects and our
learn more about these
we can succeed. To .
360solutions@sonoco.com
EnviroCan , contact
™
different stages of the supply chain, that new technologies such as ours can be
deployed quicker,” said Carlos Ludlow-Palafox, CEO of Enval. “We must quickly
establish new and better infrastructure to succeed in reducing plastic pollution and
decreasing carbon emissions.”
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Commitment to Our Customers
Sonoco Europe Partners with ACE UK to Launch Paper Container Recycling
Sonoco Asia and
Africa Launches Sonoco Europe and the
Alliance for Beverage
EnviroCan™ Container Cartons and the
for Fast-growing Environment (ACE UK)
Snacks Category have signed an agreement
Sonoco Asia and Africa which provides a U.K.-wide
announced the launch of the recycling solution for paper
EnviroCan™ paper container, containers with metal ends,
designed for the fast-growing
through ACE UK’s Bring
snacks category in Asia and
Bank collection scheme.
Africa. The package’s design
recycled paper containers and cartons is
enables it to meet a brand like
Liwayway’s challenge of bal-
Consumers will now be able to recycle fed directly into Sonoco Alcore’s paper
ancing responsible materials their paper cans, including Kelloggs’ mill on the same site, to be turned into
sourcing with product and Pringles containers, alongside food and industrial coreboard.
food safety. drink cartons at 334 recycling points
throughout the U.K. Helen Potter, sustainability commercial
lead for Kellogg’s-owned Pringles says:
With 26% coverage located in 100 local “We know that people want to recycle
authorities across the U.K., the Bring their Pringles tubes. Including a solution
Bank offers consumers a simple and for Pringles in the Bring Banks scheme
effective way to recycle used paper will allow our consumers to return them
containers. to be recycled into something new and is
The launch represents
an important interim solution as we work
Sonoco’s first paper container
Material collected from the Bring Banks towards the development of our new tube.
with a paper bottom in the
is sent to ACE UK’s Stainland recycling At Kellogg, we’re committed to making
region. The EnviroCan™ pack-
age contains 90% paper fiber
facility in West Yorkshire, which is run all of our packaging recyclable, reusable,
and uses less plastic than con- by Sonoco Alcore. Fibre from the or compostable by the end of 2025.
ventional paper containers.
The new technology was
developed in Asia and will
launch in China where Sonoco Can Recycling Trials
is first to market with a her- Earlier this year, Sonoco ran trials led by third-party consultants at three U.S.
metic paper bottom can. material recovery facilities (MRFs)—two Sonoco MRFs and one third-party MRF
Sonoco operates paper con- in Texas—to understand how our rigid paper cans flow through those facilities.
tainer production operations
in Malaysia, China and South The results showed the vast majority of Sonoco’s cans consistently flowed
Africa and exports to coun- to the container lines for collection in either steel or laminated paper streams.
tries throughout the region. Sonoco can now provide the recycling industry best practices for sorting
paper cans and ultimately increasing the recycling rate of this iconic package.
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Commitment to Our Customers
New Sonopost® Technology Coming to Europe
A new Sonopost® packging technology is set to open its doors in Sochaczew, Poland.
This new manufacturing facility will utilize existing manufacturing infrastructure,
strategically located to support this growing opportunity to expand the Sonopost
platform’s manufacturing operations in Europe.
“European manufacturing and retailers are aggressively looking for proven solutions
to address mandates related to sustainability,” said Adam Wood, vice president and
general manager, Industrial Converted Products Europe. “With industry-leading
Sonopost technology, we have the privilege of helping European manufacturers
make significant progress toward their sustainability goals.”
Sonopost technology uses cornerposts made from 100%
recycled paperboard to provide more sustainable packaging
solutions for large appliances, HVAC units and similar
products requiring superior unit protection and exceptional
stacking capability.
After use, the 100%-recyclable corner posts can be baled with existing
paper scrap and recycled in the paper stream, allowing manufacturers
to reduce or completely eliminate their packaging waste.
HolyGrail 2.0
Reducing Plastic with Sealed Lidding Film Sonoco is a
proud partner
Replacing rigid plastic lidding with sealed lidding film
of the Digital
reduces the amount of plastic used. When sealed lidding
Watermarks
film is used instead of rigid plastic lids in the fresh fruit Initiative on the
and vegetable market, Sonoco sees a minimum 35% HolyGrail 2.0
project, an initiative facilitated by AIM, to prove
reduction in total package weight. The plastic used in
the viability of digital watermarking for sorting
sealed lidding film is PET or rPET, enabling brand owners packaging waste and the business case at scale.
to make claims of both source
The HolyGrail 2.0 initiative has the goal of assessing whether
reduction as well as the
digital technology can enable better sorting and higher-quality
use of post-consumer recycling rates for packaging in the European Union. Today,
recycled PET. more than 130 partners across the value chain are working
together to refine and commercialize this concept.
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Commitment to Our Customers
Sonoco, Clemson University
Host FRESH Food, Packaging
and Sustainability Summit Each symbol
represents 5 trucks
Sonoco FRESH (Food Research Excellence
for Safety and Health), a Sonoco and Sonoco Expands Recycling Approximately 165 truckloads of scrap will be
recycled into paperboard at Sonoco mills annually.
Clemson University initiative to develop of Paper Containers in U.S.
new technologies and new forms of Sonoco has expanded recovery solutions across our consumer and
packaging to optimize the fresh food and recycling of scrap materials industrial packaging platforms,”
lifecycle, hosted the FRESH Summit at from the production of its iconic said Elizabeth Rhue, Sonoco’s staff
Clemson University. With the theme of EnviroCan™ paper containers in vice president of sustainability.
the U.S. to be used as raw
Safe. Secure. Sustainable., the Summit
material at three of its uncoated “We are taking the lead to further
stimulated high-impact discussions about
paperboard mills to produce new demonstrate our ability to recycle
how issues associated with each part of
paperboard. In total, it’s estimated our paper containers with metal
the food value chain can be used as that 165 truckloads of scrap will ends not only through the steel
opportunities to drive business and be recycled into paperboard at stream, as they are largely done
benefit society. Sonoco mills every year. today, but also through the paper
stream. And, we look forward to
Attendees, industry and academic experts “Sonoco is uniquely positioned growing consumer access to
participated in presentations and panels as a leading recycler, paper mill increase recycling of our paper
to foster knowledge growth and solutions. operator and packaging converter cans through post-consumer
Highlighted with a keynote address from to help deliver end-of-life recycling streams.”
David Beasley, Executive Director of the
United Nations World Food Programme
and a recipient of a 2020 Nobel Peace
Prize, hundreds of virtual attendees Our EnviroSense® line of
participated in engaging sessions over more sustainable packaging.
EnviroSense packaging incor-
three days.
porates increased recycled
content and improved recy-
clability and is represented
across our portfolio, from
rigid plastics, to flexibles, to
our iconic paper containers.
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Sonoco Acquires Sustainable paperboard packaging to a number of large
Paper Can Solutions Producer consumer food brands distributed across Europe.
Sonoco has acquired Can Packaging,
a privately owned designer and Sean Cairns, division vice president and general
manufacturer of sustainable paper manager of Sonoco’s European Consumer
packaging and related manufacturing Products Division, said, “Adding Can Packaging’s
equipment based in Habshein, innovation center, intellectual property and
France. proprietary manufacturing capabilities will allow
Sonoco to leverage and enhance our strong material science and
Founded in 1989, Can Packaging operates two paper engineering capabilities to develop more recyclable, mono-
can manufacturing facilities in France along with a material paper packaging solutions that will have a wide range of
research and development center where it designs food barrier properties for our customers in Europe. We also see
and builds patented packaging machines and sealing using Can Packaging’s unique, low-cost machine technology to
equipment. Can Packaging provides sustainable expand our consumer products offering into growth markets.”
New Lightweight Recyclable Packaging
NIR-Readable Black PP for Heavyweight Products
Thermoformed Trays Sonoco Protective Solutions announced two new paper-based
packaging options for heavy and high-value products to its
Sonoco’s Plastics Research and Development team
EnviroSense® line of more sustainable packaging: The EnviroSense®
identified several Near Infrared (NIR) black colorants
FiberMax™ Bulk Box and the EnviroSense® FiberMax™ Master Roll
to replace carbon black, allowing Sonoco’s black
package.
thermoformed trays to be detectable at material
recovery facilities (MRFs).
Both EnviroSense FiberMax packaging solutions are 100% recyclable
and provide the strength needed to hold thousands of pounds.
In pilot plant trials, the team successfully
demonstrated that the colorants can be reprocessed
“We believe we have a responsibility to develop more sustainable
without shifting color quality. In trials, the trays
packaging to help protect and preserve our planet for future
showed no metal contamination and passed microwave
generations,” said Carl Kraus, segment vice president of Protective
cooking and NIR sortability tests. Solutions at Sonoco.
Sonoco partnered with
“Although customers have relied on us for returnable packaging
MSS, a recycling original
innovation, some supply chains need one-way and export solutions.
equipment manufacturer, to
The FiberMax Bulk Box and Master Roll solutions apply this same
test the trays. The tests showed philosophy to the development of bracing and cushioning options for
that Sonoco’s trays were detectable within MSS’s heavy and fragile goods—offering superior protection from the rigors
sorting system. Further testing is currently underway. of new distribution channels while at the same time providing an
innovative new option that’s 100% recyclable,” said Kraus.
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Sonoco Contributes Findings for pladis Boosts
“PET Thermoform Recycling Cost & Flow Analysis” Sustainability
Partnering with the Foodservice Packaging Institute, Credentials with
Sonoco participated in a study to learn more about PET EnviroCan™
thermoform generation and recovery and understand Paperboard
the sorting and reclamation capabilities of the recycling
Container
value chain. The study also looked forward to potential
pathways to grow PET thermoform recycling and
highlighted opportunities and challenges. pladis, the global snack company behind some of the United
Kingdom’s most loved and iconic brands, is utilizing Sonoco’s
EnviroCan™ container with paperboard ends for its Mini
© RRS 2020
Potential PET Cheddars and Twiglets. The EnviroCan paper-based can utilizes
Sonoco’s traditional and trustworthy paperboard container and
Thermoform Flows meets the recycling requirements of the UK. pladis launched its
in MRFs Mini Cheddars and Twiglets products during the summer
sporting season to help customers tap into a ‘big night in’ from
the comfort of their own homes.
Expand
Expand capture
capture of PET of Use
Use optical
optical sort
sort for all for
PET; Produce
Produce commodity
commodity bales:
thermoforms for recycling, manual and/or robotic sort 1. PET thermoform-only bales for market
PET thermoforms
increasing volumes to PET toall PET, manual
separate out PET bales:
2. Mixed PET bottle/ thermoform bale,
for recycling,
markets and/or robotic
thermoforms, sort
if needed potentially with higher % of
1.thermoforms,
PET thermoform-only
or
increasing to separate out bales
3. Mixed forBale
Plastic market
volumes to PET PET thermoforms, 2. Mixed PET bottle/
markets. if needed thermoform bale,
potentially with higher
% of thermoforms, or
3. Mixed plastic bale
Sonoco Expands Recyclable Materials
Recovery with North Carolina Grant
Sonoco Recycling was awarded a ties at its Wake County, N.C.,
recycling business development facility. The grant was awarded to
grant from the North Carolina complete the purchase of a new
Department of Environmental optical sorter, which separates
Quality. This grant, coupled with fiber and non-fiber recyclables,
Sonoco’s independent invest- leading to increased recovery
ment, will enable rates, less contam-
Sonoco Recycling ination and better
to improve capabili- commodity values.
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Project Horizon to Make Sonoco
Lowest Cost Global Producer of
Recycled Paperboard
Last year, Sonoco committed to invest
$115 million to transform its Hartsville, S.C.,
corrugated medium machine into a state-of-the-
art uncoated recycled paperboard machine with
annual production capacity of 180,000 tons.
This investment is expected to make Sonoco Project Horizon
the largest and lowest cost producer of recycled Positive Environmental Impact
paperboard in the world. Aptly called Project
Horizon, the transformation will also signifi-
cantly modernize the infrastructure of the entire
Hartsville Mill Complex and allow for more
efficient and safe handling of raw materials and
finished goods. Project Horizon will also boost Energy Usage Greenhouse Gases Water Usage
(NA System use/MWh) (tons/CO2 equivalent) (NA System use/gallons)
the environmental footprint of the company’s
operations by reducing electricity consumption Current Future Current Future Current Future
3,236K 2,706K 507K 479K 4,633MM 3,462MM
in Sonoco’s U.S. and Canada paper mill system
by 16%, which will in turn drive a 16% reduction -16.4% -16.0% -25.3%
Percent Change Percent Change Percent Change
in greenhouse gas emissions while total water
usage will decline 25%.
S O N O C O 2 0 2 0 -2 0 21 C O R P O R A T E R E S P O N S I B I L I T Y R E P O R T 11Commitment to Our Planet
Sonoco works to reduce energy consumption, greenhouse gases and water
usage at our facilities. We also serve as a valued partner to our customers
to reduce the environmental impact of their packaging.
Sonoco Corporate Environmental Commitments
GHG: Energy:
Sonoco has committed to In support of our GHG emission
validated Science-Based reductions, Sonoco will continue
Targets aligned with keeping global energy efficiency improvements in
warming to well below 2°C. our manufacturing plants and reduce normalized
Sonoco will reduce our absolute
Scope 1 and 2 emissions at least
energy use by at least
by 2030. (2020 baseline) 8%
25%x2030
Water:
(2020 baseline) By 2024, Sonoco will conduct
water risk studies at our
manufacturing facilities which
90%
Sonoco, in cooperation account for at least
with our suppliers and
of our water usage
customers, will also reduce
using WRI Aqueduct,
our Scope 3 emissions in line with
WWF Water Rich Filter or similar tools.
the 2°C Absolute Contraction
Approach resulting in at least
13.5%
absolute Scope 3 emissions reductions
Additionally, by 2025, Sonoco
will implement Operation Clean
Sweep at all facilities using plastic pellets to
by 2030. (2019 baseline)
prevent environmental discharge of the pellets.
In addition, Sonoco is studying
necessary operational changes,
Waste:
Recycle or cause to recycle
85%
technology developments, and market
equivalent by weight,
changes that would be required to achieve of products we put
Net-Zero emissions by 2050. into the marketplace.
12 S O N O C O 2 0 2 0 -2 0 21 C O R P O R A T E R E S P O N S I B I L I T Y R E P O R TCommitment to Our Planet
Sonoco’s Approach to Climate Change
Sonoco recognizes our responsibility to address the challenges of
Science Based Targets Approval
global climate change. We are committed to measuring, reporting Sonoco’s emissions reduction targets were approved by the
and reducing our greenhouse gas emissions as well as energy and Science Based Targets initiative (SBTi) as consistent with
water consumption and waste generation in our operations around levels required to meet the goals of the Paris Agreement. The
the world. targets covering greenhouse gas emissions from Sonoco’s
operations (scopes 1 and 2) are consistent with reductions
To meet our Science Based Targets initiatives over the next decade,
required to keep warming to well-below 2°C.
each of our more than 300 global operations are focused on
reducing greenhouse gas emissions by investing in energy
Science-based targets show companies how
efficiency and renewable energy projects along with purchasing
much and how quickly they need to reduce their
electricity from certified green and reduced-carbon energy sources.
greenhouse gas emissions to be consistent with
To drive compliance of our greenhouse gas emission reduction keeping warming below the most dangerous levels. The SBTi
goals, we are incorporating sustainability and environmental defines and promotes best practices in science-based target
metrics into each of our business units’ plans and management setting and independently assesses companies’ targets.
incentives.
Key Environmental Metrics
Five-year Year-over-year
Key Metrics – Absolute and Normalized by Sonoco Units Unit of Measure Percentage Change Percentage Change 2020 Data
Total Energy Usage MMBtu 8.03% -1.08% 19,684,341
Energy Usage (normalized) MMBtu/Sonoco Units -3.87% 0.29% 173,483
Total Greenhouse Gas Emissions mtons CO2e 17.88% -2.45% 1,413,566
Total Greenhouse Gas Emissions (normalized) mton CO2e/Sonoco Units -0.95% 0.34% 11,709
Direct Emissions (Scope 1) mtons CO2e 37.31% 5.88% 721,176
Direct Emissions (Scope 1) (normalized) mton CO2e/ Sonoco Units 3.07% 9.72% 5,358
Indirect Emissions (Scope 2) mtons CO2e 2.74% -9.85% 692,390
Indirect Emissions (Scope 2) (normalized) mton CO2e/Sonoco Units -4.56% -7.87% 6,321
Total Landfill Disposed mtons 47.08% -8.88% 228,865
Landfill Disposed (normalized) mton/Sonoco Units 36.58% -10.25% 2,125
Total Water Usage m3 17.35% -2.31% 23,985,569
Water Usage (normalized) m3/Sonoco Units 0.53% -2.17% 206,249
Historical data referenced in this chart has been retrospectively revised to reflect changes in business structure (acquisitions and divestitures), and improvements in data collection, and so may differ from
previously published reports. In addition to showing total usage of energy consumption, total greenhouse gas emissions (Scope 1 and Scope 2), total water usage and total landfill disposal, we compare these
key environmental data points utilizing a normalized benchmark of measure across our diverse business mix to provide a more accurate comparison.
Sonoco’s normalization method takes into account that our business units may use different productivity metrics such as tons, revenue or units of production. The change in productivity in each business
unit influences an abstract metric we have named, “Sonoco Units.” The amount in which each business unit influences that change, is proportional to the percentage of the sustainability metric that business
unit consumes to the company’s total global sustainability metric for the previous year.
S O N O C O 2 0 2 0 -2 0 21 C O R P O R A T E R E S P O N S I B I L I T Y R E P O R T 13Commitment to Our Planet
Our 2025 Sustainability
Commitments in Packaging
We will increase the equivalent,
by weight, the amount we recycle or
cause to be recycled from
65%to85%
relative to the volume of product
we put into the global marketplace. Robotic Sorting Headed to S.C. Recycling Facility
Sonoco Recycling purchased the usage of a Cortex robot
to upgrade offerings at its Material Recovery Facility in
Columbia, S.C. The robot, purchased through AMP
We will ensure all of our
Robotics, can accurately sort any grade it is instructed to
production facilities utilizing
sort at a rate of 80+ picks per minute, estimated to have
plastic pellets have systems to
the throughput of two typical manual sorters.
prevent environmental discharges.
Not only is the system swift and accurate, but it is also
machine learning-enabled. The Cortex robot continually
We will ensure that approximately learns over time, adapting to material changes in the stream
75%
and allowing Sonoco to target additional materials in the
of our global future. The system also maintains full awareness of the
rigid plastic recyclable stream that passes through it, even for recyclables
packaging it does not pick.
is capable of making the relevant
on-package recyclable claim.
We will not utilize resin additives Energy Provider Recognizes Sonoco Facility
that purport to degrade in landfills or for Commitment to Energy Efficiency
waterways by simply breaking up into AEP Ohio recognized the Tiffin, Ohio, Sonoco facility for a
smaller pieces.
commitment to energy efficiency and the environment and taking
part in AEP Ohio’s savings incentives programs for businesses.
Members of the Sonoco facility see this recognition as a reminder
We are commited to work closely
with our customers to help them achieve to lead the way for safety and environmental stewardship as a
their PCR content commitments. company and in their own community.
14 S O N O C O 2 0 2 0 -2 0 21 C O R P O R A T E R E S P O N S I B I L I T Y R E P O R TCommitment to Our Planet
Germany, UK Facilities Reduce GHG Footprint
Through strategic sourcing, company’s global GHG How Sonoco has Reduced
Sonoco facilities in footprint by 0.88%, and the its Environmental Impact
Germany and Stainland impact of this change for
transitioned supply of Stainland reduced Sonoco’s Since 2009:
power for both regions global GHG footprint by
Sonoco has reduced total
from traditional non- 0.78%. Facilities still
greenhouse gas emissions by
24.6%*
renewable “brown” power managed to reduce cost
to renewable green sources. over baseline for Germany
For Germany, the impact and stayed relatively flat for
of this change reduced the Stainland.
Sonoco has reduced
total water use by
Sonoco Boosts Sustainability Credentials
with INCPEN Membership
Sonoco Europe became a member of the Industry Currently:
42.4% *
Council for Packaging & the Environment (INCPEN),
Sonoco recycles, or causes to
continuing Sonoco’s
be recycled, the equivalent
86%
effective, ongoing drive
by weight of
to develop its own
sustainability and
of the
corporate social
product it places in the marketplace
responsibility credentials
and to help promote environmental awareness and
decisive action in the wider packaging industry.
Sonoco’s Paper Mills produce
100%
uncoated recycled
INCPEN works closely with its wide-ranging paperboard with
~85%
membership base, which includes some of the
world’s largest enterprises as well as small, local firms.
The organization has been working with the United post-consumer fiber
Nations on its sustainable development goals as it
continues to work to form a society that operates in
Sonoco Recycling is one of the 10
harmony with the planet’s natural resources.
largest recyclers in the U.S. We have
helped more than
70
“We’re delighted to be welcoming Sonoco, a truly
customer facilities
global packaging company with a substantial recycling
achieve Zero Waste-to-
division and an exceptional history of sustainability and
Landfill status
corporate social responsibility,” said Paul Vanston, CEO
of INCPEN.
*Normalized by revenue
S O N O C O 2 0 2 0 -2 0 21 C O R P O R A T E R E S P O N S I B I L I T Y R E P O R T 15Commitment to Our People
It’s not so much what you do, but why you do it. This
inspires our teammates to do what they do every day—create a
better package that may just create a better life for someone.
People Build Businesses by Doing the Right Thing Sonoco was proud to
Sonoco believes that people build businesses, and we are host its first Week of
committed to a diverse community. Sonoco’s Diversity and Understanding in early
Inclusion (D&I) Council continues to grow across the globe. 2021. Educational
The Council’s mission is to create a diverse workforce within materials were created
an inclusive environment that fosters education, awareness and by the CEO Action for
communication. Diversity and Inclusion, of which Sonoco is a
member, and were presented by Sonoco’s own
In 2020, the D&I Council added the Black Employees@Sonoco BRGs. More than 1,400 employees participated in
Business Resource Group (BRG), which joins the LGBT+ BRG, the events which were designed to foster personal
the Women@Sonoco, the Military Professionals group, Sonoco growth and conversations centered on diversity
Cares and the Sonoco Young Professionals. During the year, and inclusion.
the Black Employees@Sonoco BRG conducted educational
programs during Black History month and Juneteenth as well Sonoco’s LGBT+ BRG celebrated Pride Month in
as sponsoring a week of community service in honor of June. A series of events focused on why Pride Month
Dr. Martin Luther King. is important, allyship and creating a safe space where
everyone can bring their best selves to work.
Commitment to
Diversity and Inclusion
2020 2023
20% 25%
women in senior women in senior
leadership leadership
12% 15%
minorities in senior minorities in senior
TOTAL GLOBAL FEMALE TOTAL U.S. MINORITY leadership leadership
WORKFORCE DIVERSITY percent WORKFORCE DIVERSITY percent
29.4 30.1 30.1 33.5 34.5 34.3
9% 6%
28.2 28.7 32.9 turnver rate for turnver rate for
31.3
global salaried global salaried
females females
Representation of Identification of a
diverse employees diverse candidate
in successor pools as successor for
across business Head of Manufacturing
units and functions
2016 2017 2018 2019 2020 2016 2017 2018 2019 2020
16 S O N O C O 2 0 2 0 -2 0 21 C O R P O R A T E R E S P O N S I B I L I T Y R E P O R TCommitment to Our People
through process and
employee empowerment
that together achieve key
results for the company.
Health and Safety SPS’s goals aim to improve
Protecting the health and safety of our safety, support growth and
teammates is our top priority. The company relationships with customers,
utilizes global and local incident data along
More Than 100 Facilities allow more time to focus on
with identifying leading indicators to create
Now Involved in SPS productivity and process
Sonoco continues to increase improvement, optimize a more
programs and action plans to reduce
our quality and speed to flexible workforce to meet
conditions and behaviors that lead to at-risk market through the Sonoco challenging business demands
situations. In 2020, we experienced a 6% Performance System (SPS). and create a culture of clearly
decline in total recordable injuries, and lost SPS yields sustainable aligned metrics, accountability
days were down more than 40%. We have also continuous improvement by and process. Currently, more
introduced standardized safety metrics and focusing on business and than 100 plants are involved in
practices within each business to help ensure manufacturing fundamentals the SPS certification process.
we are directing safety similarly across all
operations. In 2020, the company achieved
97% of our Safety Action Plan, site level
improvement plans designed to reduce risks.
Sonoco University Fosters Lifelong Learning
Our focus on safeguarding the health of our At Sonoco, we believe lifelong learning is essential
employees was strengthened in response to organizational success. Learning must be carefully
to the COVID-19 global pandemic. We planned and managed as a part of the company’s
implemented new safety protocols and strategy. Sonoco
procedures across all facilities following University was
recommendations by the U.S. Centers for launched in
2020 to provide
Disease Control and Prevention and the
educational
World Health Organization. We also
courses, training,
established a global task force of senior
learning and
leaders and regional management
development
committees to continuously monitor the
programs to associates. Custom content for online and
impacts on our teammates and proactively classroom-based training curates a premium learning
create new measures and practices for experience that meets the developmental needs of all
health and safety of our employees. employees. Close to 10,000 students have benefited from
more than 5,000 courses offered within the platform.
S O N O C O 2 0 2 0 -2 0 21 C O R P O R A T E R E S P O N S I B I L I T Y R E P O R T 17Commitment to Our People
Sonoco Human Rights Policy Statement
Memberships and Certifications Ethical business conduct Equality of opportunity
We recognize, respect and embrace the
• Amazon Packaging Support and Supplier Network (APASS) This Human Rights Policy Statement
cultural differences found in the world-
• American Forest and Paper Association reflects the Company’s broader commit-
wide marketplace. Our workplace is a
• AMERIPEN ment to ethical business practices, which
is embodied in Sonoco’s Setting the meritocracy where our goal is to attract,
• Association for Dressings and Sauces Standard – Policies on Business develop, promote and retain the best
• Association of Plastics Recyclers Conduct. These guidelines serve as the people from all cultures and segments of
• Brazil Packaging Association the population, based on ability. We have
• Carbon Disclosure Project cornerstone of the Company’s business
zero tolerance for discrimination or
• Carolina Recycling Association ethics and compliance program and
harassment of any kind. As a U.S. Federal
• CEFLEX (EU) require Sonoco’s Board of Directors,
contractor, Sonoco completes Affirmative
• CELAB and CELAB North America officers and employees to conduct busi-
Action Plans for its U.S. operations and
• Center for Advance Purchasing Studies ness fairly, honestly and in compliance
has diversity hiring goals that are reported
• Confederation of European Paper Industries/4evergreen Project with all applicable laws, rules and regula-
to its Board of Directors. We also carefully
• Ecodesk tions, including those protecting Human
monitor diversity hiring globally and
• EcoVadis Rights. The Company has appropriate
strive to create a diverse workforce that
• Environmental Education Association of South Carolina mechanisms in place to internally monitor
represents the communities where we
• EPS Industry Alliance compliance with these guidelines and
operate.
• Flexible Packaging Association facilitate reporting of possible violations.
• Foodservice Packaging Institute Protection of the rights Compensation
• Forest Stewardship Council® (FSC®)* of workers We ensure that compensation meets or
• Healthcare Plastics Recycling Council (HPRC) exceeds the legal minimums and is com-
• inDUfed Sonoco is an Equal Opportunity
petitive with industry standards. Our
• Industry Council for Packaging and the Environment (INCPEN) Employer committed to providing its
compensation philosophy is clearly
• International Safe Transit Association (ISTA) employees with a safe, non-discrimina-
communicated to employees and is in
• Institute of Packaging Professionals (IoPP) tory work environment that promotes
full compliance with all applicable laws.
• Institute of Scrap Recycling Industries (ISRI) open and honest communication and
• Material Handling Institute (MHI) embraces dignity, respect and diversity
Relationships with
• National Association for Information Destruction in all aspects of its business operations.
indigenous people
• National Association for PET Container Resources Sonoco further supports the elimination
Within the framework of our values, we
• National Council for Air and Stream Improvement of all forms of forced, bonded or compul-
respect the cultures, customs and values
• National Minority Supplier Development Council sory labor and the freedom of association.
of the people in communities where we
• National Sustainability Coalition We believe that people should work
operate and take into account their needs,
• National Veterans Business Supplier Development Council because they want or need to, not because
concerns and aspirations.
• Northeast Recycling Council they are forced to do so. We prohibit the
• Operation Clean Sweep use of prison labor, forcibly indentured
Implementation
• Paper and Packaging Board labor, bonded labor, slavery or servitude.
This Human Rights Policy Statement
• PMMI (The Association for Packaging and Processing Technologies) Protection of the rights of is implemented through the Company’s
• Programme for the Endorsement of Forest Certification (PEFC™)* children and young workers business ethics and compliance program,
• The Recycling Partnership on which employees are trained, and will
• SEDEX Sonoco condemns all forms of exploitation
remain posted on Sonoco’s website
• Solid Waste Association of North America of children. The Company does not recruit
at www.sonoco.com. Sonoco’s Global
• South Carolina Chamber of Commerce child labor and supports the elimination
Human Rights statement was imple-
• South Carolina Manufacturers Alliance of exploitative child labor. Sonoco also sup-
mented and is regularly reviewed by the
• Southeastern Recycling Coalition ports laws duly enacted to prevent and pun-
Employee and Public Responsibility
• Southeast Recycling Development Council ish the crime of sexual exploitation of chil-
Committee of the Board of Directors,
• Sustainable Forestry Initiative® (SFI)* dren and will cooperate with law enforce-
while managed by the Vice President,
• Sustainable Packaging Coalition ment authorities in these matters. We do
Human Resources and General Counsel.
• Sustainable Purchasing Leadership Council encourage the creation of educational,
• Sustain SC (Corporate Membership Network) training or apprenticeship programs tied
• Women’s Business Enterprise National Council to formal education for young people.
About our Certifications: Sonoco is committed to responsible use of natural resources through responsible sourcing, recycling and use of recycled fiber in our paper-based packaging. Many mills are
certified to one or more fiber certification programs. These are: the Forest Stewardship Council® (FSC®), Sustainable Forestry Initiative® (SFI®) and the Program for the Endorsement of Forest Certification® (PEFC®)
Chain of Custody and Due Diligence System Standards. Additionally, we have plants in our composite can packaging, industrial tubes and cores, and primary packaging carton operations that are certified to these
programs and can produce certified packaging. Overall sales (certified and not) by these mills and fiber certified plants is equal to 15% of Sonoco’s revenue.
All but three of our 19 global paperboard mills use 100% recycled fiber in their production. Some amount of responsibly-sourced virgin fiber is needed for select grades of paperboard. The amount of recycled fiber
in our composite cans range from 60% to 80+%, depending on the product specifications for the package. On average, the amount of recycled fiber used in our industrial tubes and cores exceeds 95%.
18 S O N O C O 2 0 2 0 -2 0 21 C O R P O R A T E R E S P O N S I B I L I T Y R E P O R TCommitment to Our Communities
Sonoco continues its strong community support through partnerships
and collaboration, education, health and welfare, arts and culture
and the environment.
“The time is always right to do what is right.”
Dr. Martin Luther King, Jr.
Sonoco’s mission of Better Packaging. Better Life. highlights our
passion not only as a packaging company but also for making
the world we live in a better place for all. In this spirit, the
company participated in its fifth annual MLK Week of Service
in January. Teammates participated in a variety of safe and
socially distanced activities in honor of King, including serving
at local soup kitchens, donating canned goods to food banks,
making care packages for the homeless and essential workers,
participating in mental health check-ins with friends and loved
ones and donating to charity.
Ending Hunger One Step at a Time
More than 100 teams hit the pavement for the
Million Step Walking Challenge, which benefits
Rise Against Hunger, a global movement to end
Sonoco employees interested in giving back to their
hunger by empowering communities, nourishing
communities volunteer with Sonoco Cares, part of Sonoco’s
lives and responding to emergencies. The winning
team, Distance Walkers at a Distance, logged almost Diversity and Inclusion Council. When it started in 2015,
4 million steps. Sonoco Cares had 39 employees who donated 450 hours of
community service that year. By 2020, employee partici-
In our home state of South Carolina, one pation and hours served has grown exponentially, as team
in six struggles with food insecurity and members have raised funds and collected goods for charity.
hunger. Sonoco is honored to continue
support for the Harvest Hope Food Activities include providing Christmas gifts to needy
Bank, the state’s largest food bank,
children, caring for animals at the Humane Society and
distributing more than 27 million pounds of food each
raising money for Carolina Kids, a Hartsville, S.C. based
year. In addition to corporate support, Sonoco team-
mates hosted food drives throughout the year and charity that sends food home from school for hungry
worked on site at the local Harvest Hope Food Bank children, and many more.
to organize and distribute food to the hungry.
S O N O C O 2 0 2 0 -2 0 21 C O R P O R A T E R E S P O N S I B I L I T Y R E P O R T 19You can also read
