SUSTAINABILITY REPORT - Winpak

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SUSTAINABILITY REPORT - Winpak
SUSTAINABILITY
REPORT

             2021
SUSTAINABILITY REPORT - Winpak
MESSAGE FROM OUR CEO                        2

INNOVATION & SUSTAINABILITY                 4

COMPANY OVERVIEW                             6
 • Our Markets                             10
 • Strengthening our Brand in Healthcare    11

OUR FOCUS ON A CIRCULAR ECONOMY            12

2025 SUSTAINABILITY GOALS                  14

GROWING AS A VALUED PARTNER                16

KEEPING OUR EXTENDED FAMILY                20
SAFE AND ENGAGED

PROUD OF OUR ROOTS                         24

PLANET FOR FUTURE GENERATIONS              27

LOOKING AHEAD                              32
SUSTAINABILITY REPORT - Winpak
MESSAGE                                                                              An additional example of the many             In the past year, WINPAK and the world learned

    FROM OUR CEO
                                                                                         innovations we are bringing to the            just how necessary and important healthcare
                                                                                         market is our foray in a new generation of    packaging can be. Another step we took this
                                                                                         spouted pouches now gaining traction as       year to further strengthen our presence in
                                                                                         manufacturing equipment is being installed    the healthcare market was to join forces with
    I was happy to see 2020 end and 2021 begin as a year of applying                     and commercial deliveries have begun. Not     our European and Asian colleagues at WIPAK.
    lessons learned from the pandemic and how to best approach a                         only is the new technology dramatically       With the launch of Wiicare®, we enhance our
                                                                                         reducing costs and logistics complexity;      responsiveness to global healthcare clients
    new and different normal going forward. Many paid a tremendous
                                                                                         this system solution also opens the road      who need global, sustainable, technically
    toll - pain from family member losses and from economic hardship.
                                                                                         for the robust industrialization of recycle   and qualitatively identical products, and
    WINPAK employees were stellar in their commitment to a safe working                  ready spouted pouches with exceptional        technical service wherever they manufacture
    environment and to the highest standards of product quality and                      filling speeds.                               their medical or pharmaceutical products. Our
    customer service.                                                                                                                  combination of capabilities is another way to
                                                                                         Our roadmap to sustainable offerings is
    Vigilance going forward around the multiplication of variants of the COVID-19                                                      help reduce time to market for vital healthcare
                                                                                         constantly expanding, both for rigid and
    virus and effective completion of worldwide vaccination campaigns remain                                                           products at the lowest possible cost.
                                                                                         flexible packaging. Two of the largest
    essential to tame and eventually eradicate this health crisis. Whether we will       sheet and in-line thermoforming lines         As I started this message, I want to again
    learn the lessons to better prepare ourselves for the next such event appears        are being retooled to offer recyclable        praise all WINPAK employees (and other
    uncertain in the general haste to go back to the “new normal”. In addition to the    trays only. Additionally, we are in the       stakeholders) navigating with positive energy
    pandemic, 2020 also saw dramatic social events change the public narrative and       final development stages of a semi-rigid      through the difficult pandemic times, and
    landscape, driving us towards more inclusion, more equity, more tolerance, and       offering based entirely on locally sourced,   successfully executing many client and
    it is by no means nearing conclusion. As for WINPAK, we will look back and do what   renewable materials and manufactured          internal infrastructure projects with little to no
    we’ve introduced thanks to our WiSE eco-system, namely the story telling, the        with hydro-energy. In other words, another    delays. Further, even with the pandemic and
    review of what went well and what could have been better and how to prepare          major step in reducing the carbon footprint   other supply chain challenges, we have been
    ourselves going forward and staying on high alert.                                   of packaging. Following similar premises,     able to further focus our efforts to create a
    It isn’t antagonistic with our everyday business to stay on high alert, as we are    our advances in barrier cellulose are         more equitable and inclusive environment for
    accustomed to doing so about competitive threats, new technologies, new              progressing quickly. We just launched our     all of us. We have thoroughly reviewed and
    materials, newcomers, new consumption, and new trends, ensuring we do not            first-generation EcoWrap recyclable paper     adapted our vision and mission statements
    ignore voices driving necessary changes.                                             overwrap, and there are additional barrier    to reinforce our belief to do the right thing
                                                                                         cellulose-based solutions in our pipeline.    always; support, develop and learn from each
    Staying ahead of the curve is in the same vein as staying on high alert. Once                                                      other; and pursue our purpose of providing
    more, we have been able to commercialize landmark new technology that opens          No less effective, source reduction is        the most sustainable packaging solutions that
    many possibilities for recycle ready, high barrier forming and non-forming           another aspect of adding value for our        reduce food waste, extend freshness, and
    solutions, all at a significant lower carbon footprint than traditional offerings.   clients by reducing overall costs while       promote health.
    Seeking sustainable packaging innovations and knowing we are providing               achieving more with less and therefore,
    solutions that both support our customers’ needs and reduce climate impact is        reducing our and their environmental
    exciting and highly motivating!                                                      footprints. Whether through improved
                                                                                         materials and processes alone or in
                                                                                                                                                                 Olivier Muggli
                                                                                         combination with new packaging designs
                                                                                                                                                                 President & CEO
                                                                                         from our machinery business, WINPAK
                                                                                                                                                                 WINPAK LTD
                                                                                         is helping customers reduce material
                                                                                         consumption by up to 15%.

2                                                                                                                                                                                      3
SUSTAINABILITY REPORT - Winpak
INNOVATION                                                                  principles of the Circular Economy and         At WINPAK, we are always excited and ready to

    & SUSTAINABILITY
                                                                                embraces materials management via              advance our sustainability pillars and provide
                                                                                waste prevention and resource efficiency       meaningfully unique packaging solutions
                                                                                throughout our operations. Our focus           with increased environmental and economic
                                                                                areas continue to include low carbon           benefits. As we continue our sustainability
    At WINPAK, we continue to focus on our sustainability pillars:              footprint solutions, reduced material          journey in 2021 and prepare for upcoming
    Valued Partner, Extended Family, Roots and Planet. These pillars            consumption or down-gauging, recycle           years, we aim to expand our product
    are building blocks for WINPAK, and we continue to embrace our              ready or recyclable solutions, use of          portfolio by designing packaging with full life
    call to action - “IT’S OUR NATURE TO PROTECT™”.                             renewable materials, post-consumer             cycle in mind including effective materials
    Innovation and industry collaboration play a key role in advancing each     recycled content in our products and           management, design for recyclability,
    of WINPAK’s sustainability pillars. The packaging industry is challenged    implementation of emerging material            solutions with PCR content, renewable
    to become more effective in protecting natural resources while providing    and equipment technologies. At WINPAK,         material options and low carbon footprint.
    the needed performance to protect food and healthcare products. At          we also believe in a life-cycle approach       Our expertise centers are well positioned to
    WINPAK, we have embraced this challenge to protect our environment          to design, develop, and apply advanced         support and delight our customers, while
    while enabling superb product protection via innovative packaging           packaging technologies.                        expanding our sustainable product portfolio
    solutions. Our innovation management platform, “25hundred Innovators”,                                                     by working closely with our industry partners.
                                                                                Our sustainable packaging expertise
    is providing increased speed and precision as we continue to execute        centers in all business units continue to
    our sustainability objectives. Our sustainability journey aligns with the   expand their technical know-how within
                                                                                our focus areas. We continue to broaden
                                                                                our product portfolio under our ReFresh™
                                                                                platform with sustainability benefits such
                                                                                as low carbon footprint, recycle ready
                                                                                or recyclable, and reduced weight. We
                                                                                have added new solutions to our recyclable
                                                                                cellulose-based packaging platform
                                                                                enabling broader selection options for our     Mustafa Bilgen
                                                                                clients. Further, we continue to develop and   Vice President, Technology & Innovations
                                                                                promote down-gauged packaging solutions        WINPAK LTD.
                                                                                and launch innovations with PCR content.
4                                                                                                                                                                           5
Rigid Packaging

    COMPANY
    OVERVIEW
    WINPAK is part of WIHURI International Oy, a Finnish
    corporation with global packaging entities, notably
    WIPAK, which has operations in Europe and Asia.
    WINPAK operates 12 production facilities in Canada,
    the United States and Mexico, offering customers
    global coverage and expertise. The North American                             Flexible Packaging
    business units serve customers throughout the United
    States, Canada and Latin America primarily to provide
    packaging to protect perishable foods, beverages,
    healthcare, consumer, and industrial products.
    WINPAK specializes in rigid and flexible barrier
    packaging as well as form-fill-and-seal machinery.

                                                            Packaging Equipment
6                                                                                                                        7
FLEXIBLE                          RIGID PACKAGING &                  PACKAGING
                                                                                                                  MARKETS       PACKAGING                         FLEXIBLE LIDDING                   MACHINES
                             1 2                                       4
                                                                                                                  Business      American Biaxis Inc.              WINPAK Heat Seal                   WINPAK Lane Inc.
                                                               9
                                                                           11
                                                                                                                  Units         •W
                                                                                                                                  innipeg, Manitoba, CA          • Vaudreuil-Dorion, Quebec, CA    • Rialto, CA, USA
                                                                                12                                • Locations   WINPAK Control Group, Inc.        • Pekin, IL, USA
                                                7                                                                               • Norwood, NJ, USA               WINPAK Portion Packaging
                                            5       8
                                                                                                                                WINPAK Division                   • Sauk Village, IL, USA
                                                                                                                                •W
                                                                                                                                  innipeg, Manitoba, CA          • South Chicago Heights,IL, USA
                                                                                                                                WINPAK Films Inc.                 • Toronto, Ontario, CA
                                                           3
                                                                                                                                • Senoia, GA, USA
     10
                                                                                                                                WINPAK Heat Seal
                                                                                                                                • Vaudreuil-Dorion, Quebec, CA
                                                                                                                                • Pekin, IL, USA
                                                                                                                                Embalajes WINPAK
                                                                                                                                de Mexico
                                                                                                                                • Querétaro, Mexico

                                                                                                                  Product       • Barrier shrink bags            • All plastic lids                • Packaging
                              6                                                                                   Types         • Child resistant packaging      • Cups                                 equipment
                                                                                                                                                                                                         (cups, pouches,
                                                                                                                                • F ilm-Foil-laminations         • Custom containers                    vertical and
                                                                                                                                • Flexible packaging and wrap    • Foil lids                            horizontal
                                                                                                                                • P aper-Foil-laminations        • Retort containers, lids              form, fill/
                                                                                                                                • P ush-Thru-Foils               • Rigid plastic sheets                 seal, complete
                                                                                                                                                                  • S ingle-serve lidded                packaging
                                                                                                                                • S achets                         containers                           systems)
                                                                                                                                • Specialty film and rollstock   • Trays                            •   S
                                                                                                                                                                                                          ervice, repair
                                                                                                                                • Vacuum pouches                                                         and parts
                                                                                                                                • Zipper stand-up pouches
WINPAK LOCATIONS AND BUSINESS UNITS

1
    WINPAK          2
                         American                   3
                                                         WINPAK                      4
                                                                                          WINPAK Heat
    Division             Biaxis Inc.                     Films Inc.                       Seal Pkg, Inc.
    Winnipeg, MB,        Winnipeg, MB,                   Senoia, GA,                      Vaudreuil-Dorion, QC,
                                                                                                                  Share of
                                                                                                                                53%                               43%                                4%
    Canada               Canada                          USA                              Canada                  Revenue

    WINPAK Heat          Embalajes                       WINPAK                           WINPAK
5                   6                               7                                8
    Seal Corp.           WINPAK de Mexico                Portion Pkg.                     Portion Pkg.
    Pekin, IL,           Querétaro,                      South Chicago                    Sauk Village, IL,         At the end of the 2020 reporting period,             WINPAK has majority ownership in
    USA                  Mexico                          Heights, IL, USA                 USA                       WINPAK had annual sales of $852.5 million            American Biaxis Inc. (ABI), a joint
                                                                                                                    and over 2,500 employees at 12 sites in              venture with Sojitz Corporation, of
9
    WINPAK          10
                         WINPAK                     11
                                                         WINPAK Control              12
                                                                                          WINPAK Control            three countries (Canada, United States and           Japan. ABI manufactures multi-layer
    Portion Pkg.         Lane Inc.                       Group Inc. (1)                   Group Inc. (2)
    Toronto, ON,         Rialto, CA,                     Norwood, NJ,                     Norwood, NJ,              Mexico). WINPAK’s corporate headquarters             biaxially oriented polyamide (BOPA)
    Canada               USA                             USA                              USA                       is in Winnipeg, Manitoba, Canada.                    films for sale in North America.

8                                                                                                                                                                                                                     9
FOOD & BEVERAGE
                                             Consumers have ever-expanding tastes
                                             and an ongoing need for packaging that
                                             provides safety, quality, convenience,
                                             extended shelf life and now, such
                                             packaging also needs to be eco-friendly.
                                             Our comprehensive packaging options
                                             include rigid containers, flexible lidding,
OUR MARKETS                                  rollstock, and pouches. Many options
                                             offered are recyclable or are recycle
                                             ready anticipating enhancements
                                             to the recycling infrastructure.                STRENGTHENING OUR
                                                                                             BRAND IN HEALTHCARE
DAIRY
WINPAK is a leading supplier in the                                                          The pandemic demonstrated the critical        world as this alliance brings customer-
North American dairy market providing                                                        role of healthcare in our lives and the       focused products and services, provides
                                             HEALTHCARE
thermoformed containers, lidding, plastic                                                    importance of the packaging used to           a global presence with local service, and
                                             WINPAK takes very seriously its commitment      deliver those valuable supplies and           offers the experience and expertise that
sheeting, and high-grade flexible films to
                                             and obligation in the healthcare packaging      medications. WINPAK is closely aligned        meet the long-term supply requirements for
meet the stringent market requirements.
                                             space. Our dedicated team focused on            with its European sister company: WIPAK,      healthcare customers.
WINPAK develops innovative, efficient,
                                             medical and pharmaceutical products             one of Europe’s leading manufacturers of
and ecologically sustainable packaging                                                                                                     The strategic global alliance of Wiicare® for
                                             understands the rigorous requirements           packaging materials. WINPAK’s strategic
solutions that protect product quality,                                                                                                    healthcare packaging will encompass sales
                                             and high-quality manufacturing standards        alliance with WIPAK provides the Company
extend shelf life, and preserve freshness                                                                                                  and marketing, research and development,
                                             needed to ensure performance and                access to the expertise of packaging
and aroma.                                                                                                                                 product management and regulatory
                                             reliability of our products. Please see         professionals worldwide and offers a broad
                                             opposite page regarding our strengthened        range of products and packaging solutions.    affairs. Business operations will continue
                                             alliance with WIPAK and the launch of the new                                                 to work under the existing companies of
                                             Wiicare® brand.                                 Moving forward, this co-operation will be     WINPAK and WIPAK.
                                                                                             further deepened through our alliance and
PROTEIN                                                                                      formation of a new global brand: Wiicare®
Regardless of needs, WINPAK offers                                                           for healthcare packaging. Together,
innovations that maximize shelf life and                                                     both businesses will ensure that medical
enhance food safety for applications                                                         customers worldwide receive enhanced
                                             PACKAGING MACHINERY
like fresh meat, poultry, seafood and                                                        product performance through a jointly
                                             WINPAK offers a full line of horizontal fill/   designed and uniform product portfolio of
processed meats. These attributes are
                                             seal machines for preformed containers          sterile barrier packaging systems. The goal
critical for protein markets not only
                                             and vertical form/fill/seal pouch machines      of the new Wiicare® brand is to help WINPAK
due to economic reasons but to ensure
                                             for pumpable liquid, semi-liquid, and dry       and WIPAK become the most sought-after
the embedded resources used to grow,
                                             products. Like products for other markets       supplier of healthcare packaging in the
process, and deliver these products to
                                             we participate in, WINPAK machines provide
consumers are not wasted.
                                             economic and environmental benefits
                                             through efficiency, high throughput and
10                                           extended uptime.                                                                                                                          11
WINPAK is a founding member of the            Another key element to the transition to a

     OUR FOCUS
                                                                        Polypropylene Recycling Coalition. This       Circular Economy is WINPAK’s innovation
                                                                        industry collaboration is investing in        efforts. WINPAK challenges its innovators to
                                                                        polypropylene (PP) recycling improvements     develop packaging solutions that reduce

     ON A CIRCULAR                                                      for greater recovery and recycling of
                                                                        this critical packaging material. Since
                                                                                                                      material use, incorporate post-consumer
                                                                                                                      recycled (PCR) content, and/or do not end

     ECONOMY
                                                                        its launch in mid-2020, the Coalition         up in landfills. An example is WINPAK’s line of
                                                                        has provided grants for seven material        innovations comprised of forming and non-
                                                                        recovery facility (MRF) projects which will   forming films containing PCR PET content. Not
                                                                        add over 4,200MT of PP recovery capacity      only do these products help WINPAK de-couple
                                                                        to the industry. WINPAK participates in       material use from virgin fossil fuel resins,
     Several external factors continue to impact the packaging          the Chemistry Industry Association of         but they also reduce greenhouse gas (GHG)
     industry such as consumer needs and perceptions, regulatory        Canada (CIAC) as a member of its Plastics     emissions while maintaining mechanical and
     and legislative policy, technology advancements, and climate       Division and in PAC (Packaging Association    optical properties similar to virgin materials.
     change. WINPAK considers these factors as it innovates new         of Canada). Finally, as a member of the
     solutions to meet our customer and consumer needs. For several                                                   WINPAK has active projects in additional rigid
                                                                        Sustainable Packaging Coalition (SPC),
                                                                                                                      and flexible packaging formats to utilize PCR
     years, WINPAK has focused on the transition from a linear to       WINPAK contributes on the Multi-Material
                                                                                                                      content. Advancements have occurred, and
     Circular Economy. WINPAK recognizes this journey is not one to     Flexible Packaging Recovery Collaborative
                                                                                                                      WINPAK anticipates commercialization of
     take alone. Collaboration throughout the value chain is critical   supporting work to advance recycling of
                                                                                                                      new packaging in the near future to further
     and important to understand both barriers and opportunities        multi-material flexible packaging.
                                                                                                                      demonstrate our commitment.
     in a successful transition. To this point, WINPAK is an active
     member of several industry organizations collaborating to
     ensure a Circular Economy for packaging.
                                                                        ASSOCIATION MEMBERSHIPS

12                                                                                                                                                                13
2025                                                                  OUR PROGRESS THROUGH 2020

     SUSTAINABILITY                                                        GROWING AS A VALUED PARTNER
                                                                                Customer Satisfaction             Materials Management         Sustainable Products

     GOALS
                                                                                  2025 Goal: > 90%                   2025 Goal: > 90%            2025 Goal: 100%
                                                                                     Status: 89%                 Status: 4% improvement*     Status: 35% improvement*

     We have four sustainability pillars which form the foundation
     for our Sustainability goals. Those pillars are shown below:          KEEPING OUR EXTENDED FAMILY SAFE AND ENGAGED
                                                                                   Health & Safety                  Employee Retention        Employee Engagement
                                                                                  2025 Goal: 0.0 TRIR                2025 Goal: > 90%           2025 Goal: >90%
                                                                               Status: 5% improvement*                 Status: 92%                 Status: TBD

        Valued             Extended             Roots             Planet
        Partner             Family
                                                                           PROUD OF OUR ROOTS
                                                                                 Code of Conduct                 Responsible Supply Chain     Corporate Transparency
     Last year WINPAK publicly released its 2025 Sustainability
                                                                            2025 Goal: 100% Compliance          2025 Goal: 100% Compliance    2025 Goal: CDP** “A” List
     Goals. Our more than 2,500 employees are focused on                           Status: 100%                       Status: Initiated      Status: Achieved: B- (2020)
     achieving these goals and delivering on our promise to
     create products, processes and services that deliver net
     positive economic, social, and environmental benefits.

                                                                           PLANET FOR FUTURE GENERATIONS
                                                                                  Energy Intensity               GHG Emissions Intensity:          Landfill Waste
                                                                             2025 Goal: > 10% Reduction         2025 Goal: > 10% Reduction       2025 Goal: 0.0 MT
                                                                               Status: 2% Reduction*              Status: 2% Reduction*        Status: 12% Reduction*

                                                                           * versus baseline year of 2017
                                                                           ** CDP = Carbon Disclosure Project
14                                                                                                                                                                      15
PCR PET INNOVATIONS – FORMING AND
                                                                         NON-FORMING RECYCLED CONTENT
                                                                         TO SUPPORT CONSUMER EXPECTATIONS

                                                                              Good barrier properties
                                                                              to extend shelf life

                                                                              Excellent mechanical

     GROWING                                                                  and optical properties

     AS A VALUED
                                                                              Reduced virgin fossil based
                                                                              raw material

     PARTNER                                                                  30% reduction in GHG emissions VS
                                                                              standard APET/PE/Barrier Films

                                                                              Contains 15% to 75%
     WINPAK believes not only in building relationships that last             recycled content
     but also in building relationships that bring value to our
     customers and suppliers.
     This commitment means WINPAK will bring innovations that reflect
     the needs of our customers and the markets they serve. Just as      REFORM – PART OF WINPAK’S REFRESH™
     Sustainability is a broad topic and may have different approaches   RECYCLE READY PRODUCT LINE
     based on industry expectations, WINPAK develops different
     sustainable innovations to meet varied market trends. Whether it         High barrier films to extend
     is a MAPfresh® polypropylene tray used in the protein markets,           shelf life
     a ReFresh™ recycle ready packaging film with How2Recycle®
     pre-approval, or a packaging innovation from renewably sourced
                                                                              Excellent optics to ensure
     materials, WINPAK is committed to bringing valued innovations
                                                                              consumer appeal
     to the market. Recently, WINPAK commercialized several new
     innovations highlighting not only our support for a Circular
     Economy but also this commitment to broad capabilities                   Recycle ready material
     in product development.                                                  composition

                                                                              >30% GHS emissions reduction
                                                                              VS traditional structures

16                                                                                                                17
ECOWRAP – RENEWABLE CONTENT                “During the past 18 months, the WINPAK Sales
PACKAGE OFFERS RECYCLABILITY                team has needed to dig deep and take a
                                            measured step closer to our customer base.
      Water-based sealant coat offers       Our ongoing discussions regarding security
      recyclability                         of supply, scheduling flexibility, sustainable
                                            packaging and sales support have allowed
      Made from FSC certified               WINPAK to meet the demands of a fluid consumer
      fiber content                         market during this time. We have successfully
                                            met the challenge of the “rush to retail” market
      Recyclable in paper stream            trend and the strong demand for sustainable        Matt Smith
                                            and innovative packaging created by the            Market Director, Protein
                                                                                               WINPAK
                                            COVID-19 pandemic.

NUVO • LID – PREMIUM DIE-CUT LID OFFERS    Our hard-working customer service, sales and
SUSTAINABILITY BENEFITS                    field technical teams adopted virtual and hybrid
                                           selling and servicing methods to meet customer
      Enhanced graphics VS                 deadlines to keep the lines moving. Additionally,
      standard embossed foil lids          the combination of the Sales team being closer
                                           to our customer base and WINPAK’s broad
      Excellent light, moisture, oxygen,   technology platform has provided the needed
      barrier to extend shelf life         operational flexibility during the recent supply
                                           chain concerns. Through thick and thin you can
      Reduced thickness VS                 count on WINPAK as a valued partner!”
      standard foil lids

      GHG emissions reduced 18%
      compared to standard (DF13MP) lid

18                                                                                                                        19
KEEPING OUR                                                   ENSURING A                                            The safety strategy has three big goals:

     EXTENDED FAMILY                                               SAFETY CULTURE                                        1. LEADERSHIP COMMITMENT
                                                                                                                         (WALK THE TALK)

     SAFE AND ENGAGED
                                                                   The goals established for our extended                Health and safety are a shared
                                                                   family reflect the importance of safety               responsibility among management,
                                                                   and engagement at WINPAK. The company                 employees, suppliers, and customers.
                                                                   will always strive for a zero-injury rate              With this responsibility comes ownership
                                                                   throughout its operations and the continual           and accountability beginning with and
     Last year WINPAK employees once again                         training and updates to safety procedures             driven by top management. Safety is
     demonstrated their value. In WINPAK’s 2020 report,            reflects this relentless pursuit. “It’s our nature    subsequently built into the performance
     actions taken by the company and its employees                to protect™”, is a statement of mission that          goals and expectations of all levels
     during the pandemic were well documented. The                 not only applies to product innovations but           of management.
     measures were taken to maintain the health and                also applies to our employees and how they
     safety of employees, their families, customers, and           view one another. In February 2020, WINPAK            2. TEAM OF 2,500 SAFETY CHAMPIONS
     suppliers. Numerous measures remain enacted today             began a process to strengthen and enhance
                                                                                                                         To create a safety culture where every
     to ensure health and safety remain a top priority.            our safety performance beyond regulatory
                                                                                                                         employee takes responsibility for her/his
                                                                   compliance. The Executive Committee
     With over 2,500 members, we value the unique and diverse                                                            safety and the safety of others. Peer to peer
                                                                   developed the framework to enhance our
     skills each employee brings to work every day. We encourage                                                         coaching for improved safety behavior is
                                                                   safety culture. The outcome was a multi-
     a collaborative work environment where employees can                                                                the cornerstone of this goal.
                                                                   year plan that recognizes safety as a shared
     be their authentic selves and bring out the best in each      responsibility among all employees and that
     other. Promoting employee well-being goes hand in hand        employee behavior and non- adherence to               3. OPTIMIZE BEST PRACTICES
     with ensuring safe working conditions. WINPAK takes this      safe practices are the underlying causes of           To adopt best practices by standardizing
     responsibility seriously.                                     safety incidents and accidents.                       safety tools, processes, capabilities, and
                                                                                                                         training across WINPAK operations.

                                                                   SOME KEY SAFETY ACCOMPLISHMENTS FOR WINPAK IN 2020 INCLUDE:

                                                                   • WINPAK Portion Packaging (Toronto, ON)             • WINPAK Films (Senoia, GA) reached one
                                                                     recorded zero lost-time injuries in 2020             million hours worked without a lost time
                                                                                                                          incident in June 2020
                                                                   • WINPAK Portion Packaging (Sauk Village, IL)
                                                                     achieved one million working hours without a       • WINPAK reduced its Total Recordable
20                                                                   lost-time injury                                     Incident Rate (TRIR) by 19% vs 2019            21
“WINPAK has an unyielding commitment             empowers employees to be responsible,
                                                      to the safety of our extended family – our       accountable, and fully engaged in our
                                                      employees. Safety is a core value that has       programs. At WINPAK, everyone has an
                                                      been integrated throughout our operations.       opportunity to improve safety.
                                                      It is the guiding principle behind everything
                                                      we do.                                           Our journey toward safety excellence
                                                                                                       is relentless and requires exploration of
                                                      In support of our extended family, we            superior routes. Open communication and
                                                      continuously strive to enhance workplace         input from employees related to safety

     AN ENGAGED                                       culture, foster engagement, furnish pertinent
                                                      training/guidance, and complete process
                                                                                                       initiatives/processes is intrinsic to a
                                                                                                       successful journey. We look forward to
     WORKFORCE                                        reviews which are critical to the manufacture    the support of our extended family as we
                                                      of high-quality products in a safe and           continue to travel toward our destination
     Collaboration and insights from WINPAK’s
                                                      efficient manner.                                of achieving Safety excellence.”
     diverse work culture drive safety, operations,
     innovation, and sustainability. This
     engagement serves as the basis for our culture   As an organization, we have surpassed basic
     and is aptly demonstrated by our internal        compliance as the standard. We recognize
     initiative called “25hundred Innovators”.        that the health, safety, and well-being of our
     All employees are encouraged to join this        employees is paramount. We have dedicated
     network with the goal of running campaigns       Safety professionals throughout the company
     throughout the year in which a sponsor
                                                      that are committed to partnering with our
     seeks ideas for implementation. The needs
     range from customer packaging to improved        workforce to create a zero-injury culture by
     communication to ideas to reduce energy          proactive deployment of best practices and
     usage. Over the past year, 15 campaigns were     continuous improvement.
                                                                                                              Kim Anderson
     issued with nearly 300 ideas generated from
                                                                                                              Director, Human Resources
     employees throughout the company.                Safety is everyone’s responsibility. Together,          WINPAK Portion Packaging Inc.
                                                      we have a duty to look out for and protect
                                                      one another. WINPAK’s work environment

22                                                                                                                                                 23
PROUD OF
     OUR ROOTS
     WINPAK has much to be proud of as a company.                   Today, it is no longer acceptable to only    and understanding our supply chain enables
     WINPAK was founded over 40 years ago and has been              look inward and ensure your own company      WINPAK to manage risks as well as make
     built on integrity, excellence, and respect for people         is doing the right thing. Our stakeholders   positive social and environmental impacts.
     and human rights.                                              expect WINPAK to understand its supply       WINPAK has chosen to partner with Sedex
                                                                    chain and how our suppliers perform in       to provide us with solutions and insights to
     WINPAK’s goals reflect the importance of ethics, transparent   areas like safety, labor relations, work     manage supply chain risks and ensure an
     governance, and a responsible supply chain related to          conditions, environmental impacts, and       ethical supply chain.
     our sustainability commitment. Holding ourselves to the        more. Supply chains today are complex
     highest standards has been, and will continue to be, the
     backbone of our success. WINPAK has a strong business Code
     of Conduct that we regularly review and use to guide our
     actions and decision-making. As part of a new employee’s
     onboarding process, the Code of Conduct will be reviewed
     and expectations regarding the importance of following its
     tenets will be discussed. WINPAK’s Code of Conduct can be
     accessed at https://www.winpak.com/code-of-business-conduct

24                                                                                                                                                         25
PLANET FOR
“There are at least 3 key targets for our
 sustainability goals where suppliers can
 play an integral role. First, WINPAK wants to
                                                  And finally, WINPAK is committed to a
                                                  Responsible Supply Chain. We utilize Sedex
                                                  as a partner to support this goal. Sedex is a
                                                                                                         FUTURE GENERATIONS
 be as efficient as possible in its operations    global non-profit membership organization
 and achieve a materials management goal          that prides itself on making it simpler to do
 of >90%. Process engineers and employees         business that is good for everyone. Tens of
 working in our operations are intently focused   thousands of companies use Sedex to manage             “It’s our nature to protect™” embodies WINPAK’s commitment to
 on this outcome. Suppliers, both equipment       their performance around labor rights, health          being a good steward of the resources afforded to us. Whether
 and raw material, are key contributors too.      & safety, the environment, and business ethics.        it is the raw materials used to create our packaging innovations
 Improvements to materials and how we process     Sedex’s survey and services enable companies,          with extended shelf-life; the energy used to power our processing
 them are important, and WINPAK relies on         like WINPAK, to analyze various types of data,
                                                                                                         equipment; or the fuel used to deliver products to our customers, it is
                                                                                                         imperative to treat each as a finite resource. As a company, WINPAK
 these suppliers to keep us top-of-mind when      standards, and certifications to make informed
                                                                                                         applies Sustainable Materials Management principles, along with
 learnings occur.                                 business decisions, and to drive continuous
                                                                                                         LEAN principles, to be efficient and reduce waste in all forms within
                                                  improvement across the value chain.”
                                                                                                         our processes.
Second, WINPAK continues to innovate new
packaging solutions as we move towards                                                                   As part of WINPAK’s collaborative spirit, teams have been established to
                                                                                                         focus on energy usage and landfill waste. Each WINPAK site is invited to
our goal of 100% Sustainable Products by
                                                                                                         have a representative participate on these teams. In addition to supporting
2025. WINPAK is innovating in recycle ready
                                                                                                         achievement of the company’s energy and landfill waste goals, the primary
structures, post-consumer recycled (PCR)                                                                 responsibilities for these teams are:
content, and bio-based materials as we strive
to meet our customers’ needs. WINPAK’s                                                                   ∙   Discuss individual site challenges to achievement of established goals
procurement team maintains ongoing contact                                                               ∙   Share ideas and best practices
with existing and new suppliers to explain our                                                           ∙   Discuss best company or external resources to address performance gaps
needs and understand what new innovations                 Rolando D. Caballero                           ∙   Collect and input monthly data for energy intensity and landfill waste goals
and raw materials suppliers can provide us to             Senior Supply Chain Manager
fulfill our goal.                                         WINPAK Films Inc.

                                                                                                    27                                                                                 27
Along with these teams, our 2,500 employees are committed to the goals WINPAK has established
in the areas of energy intensity, greenhouse gas (GHG) emissions intensity, and landfill waste. Our                    ADDRESSING GREENHOUSE GAS (GHG) EMISSIONS
senior leaders have set our strategic direction and have empowered employees to take action                            As part of our commitment to corporate                                        Our emissions are grouped according to the
and to make a positive impact.                                                                                         transparency, along with reducing greenhouse                                  GHG Protocol. This protocol frames a business’
                                                                                                                       gas (GHG) emissions, WINPAK completes                                         GHG emissions according to three scopes

REDUCING                                                                                                               the Carbon Disclosure Project (CDP) survey
                                                                                                                       each year. Stakeholders today have higher
                                                                                                                                                                                                     of activities, as shown in the figure below. At
                                                                                                                                                                                                     WINPAK, our GHG emissions intensity goal
ENERGY USE                                                                                             GOAL            expectations for transparency. They want to see                               is established for Scopes 1, 2 and 3 emissions.
                                                                                                                       that WINPAK understands the major contributors                                Please go to www.cdp.net to learn more
As an example, at our flagship site in                                                                                 to our carbon footprint, what actions we are                                  about CDP and view WINPAK’s latest GHG
Winnipeg, WINPAK Division (WD) created                                                                                 taking to reduce our impact, and the results the                              emissions data.
                                                    2017   2018   2019   2020   2021   2022   2023   2024   2025
an energy oversight role in conjunction                                                                                company is achieving. WINPAK achieved a score of
with the Energy Management Program                 Energy Intensity (kWh/MT Sold) at WINPAK Division Site              B- in our 2020 CDP submission.
(EMP). The program leader is responsible
for implementing energy conservation               Further, WINPAK has implemented Life Cycle
measures, monitoring energy consumption,           Cost Analysis for new equipment purchases.
assessing business decisions for                   WINPAK understands that equipment and
sustainability, and seeking opportunities to       its usage, given that we are largely a 24/7                                            CO2                    CH4                   N2O                 HFCS                PFCS                     SF6
increase energy efficiency.                        operation, consumes lots of energy. Plus, the
                                                   equipment is meant to operate for many years,
Our Winnipeg site presents some unique
                                                   so we need to ensure our decisions are well-
challenges. Equipment is often process-
                                                   informed. This approach for new equipment                                                                         SCOPE 2                 SCOPE 1
specific; manufacturing processes may                                                                                                                                    INDIRECT             DIRECT
                                                   investments ensures WINPAK considers
not be altered in some cases; and of
                                                   sustainability factors and works with Design
course, production levels cannot be
                                                   and Procurement teams and equipment                                              purchased electricity,
                                                                                                                                                                                                                                                       SCOPE 3
negatively impacted. However, the team                                                                                              stream, heating &
                                                   suppliers to ensure WINPAK procures energy-                                      cooling for own use
                                                                                                                                                                                                                                                       INDIRECT
in Winnipeg set out to find energy wasters
                                                   efficient and sustainable equipment.
and potential projects to reduce energy
intensity. Following EMP implementation, WD                                                                                                purchased goods
has made improvements by changing the                                                                                                      & services                                                                                           investments
                                                                                                                                                                                  SCOPE 3
way equipment is designed and operated                                                                                                                                            INDIRECT                            transportation
                                                                                                                                                                                                                      & distribution
and has achieved a 9.3 percent reduction                                                                                               capital
                                                                                                                                       goods                                                  company
in energy intensity compared to the 2017                                                                                                                                                      facilities                    purchased goods
baseline year.                                                                                                                           fuel & energy                   leased
                                                                                                                                                                                                                            & services                                 franchises
                                                                                                                                         related activities              assets

                                                                                                                                                                                                                                                              leased
                                                                                                                   transportation                                                                                                                             assets
                                                                                                                   & distribution                                                                             use of sold
                                                                                                                                                                                                              products
                                                                                                                                                                                                                                         end-of-life
                                                                                                                                                                                              company                                   treatment of
                                                                                                                                                                           employee           vehicles                                 sold products
                                                                                                                                                                          commuting
                                                                                                                                    waste generated
                                                                                                                                    in operations             business
                                                                                                                                                               travel

28                                                                                                                              UPSTREAM ACTIVITIES                                   REPORTING COMPANY                     DOWNSTREAM ACTIVITIES                               29
“I am very proud of our WINPAK division team
                                                                                                           and what we have accomplished to date. As
                                                                                                           a team. we have committed plant-wide to
                                                                                                           reduce our impact on our planet for future
     STRIVING FOR ZERO                                                                                     generations. Our goal is to have zero landfill
                                                                                                           waste and reduce our energy consumption,
     LANDFILL WASTE                                                                                        and we are on our way to hit our targets.
                                                             KEY ACTIONS WINPAK
     As noted earlier, WINPAK employs Sustainable            SITES PERFORM TO REDUCE                       Here are some examples of WINPAK’s
     Materials Management (SMM) principles in its            LANDFILL WASTE:                               recent accomplishments:
     manufacturing operations. WINPAK continuously
     evaluates its processes and production
     technologies seeking ways to source, reduce
                                                             • Rigid plastic process waste in WINPAK’s     LANDFILL DIVERSION                                 ENERGY REDUCTION
                                                               Portion Packaging site in Sauk Village,
     and incorporate recycled scrap back into the              IL is placed back into production           • Reduction of paperwork by using tablets         • Heat recovery ventilation projects to recover
     operation and keep it out of the landfill.                                                               in safety checks and audits, more online           clean, processed hot air currently exhausted
                                                             • Trim scrap from ReFresh ™ recycle ready       collaboration to reduce paper in our day-          to the outside. This reduces natural gas use
                                                                structures in WINPAK’s site in Winnipeg,      to-day activities                                  and greenhouse gas emissions.
     A success story from 2020 is WINPAK
                                                                MB is placed back into production
     Division’s (WD) investment in a core stripper.
     WD produces flexible packaging materials                                                              • We baled and diverted 9MT of label backs        • Purchase and installation of high efficiency
     that are typically wound onto fiber-based               • Trim scrap from mono-material                 from landfill                                      electrical equipment.
     cores. Some rolls of film need to be disposed.             structures in WINPAK Film’s site
                                                                                                           • Plastic/Steel Cores are recycled for our        • Installation of insulation blankets for most of
     Recyclers do not like taking film rolls with cores         in Senoia, GA is placed back into
                                                                                                              internal processes                                 our extrusion equipment
     because of the difficulty in handling. In the              production
     past, WD either sent the film rolls to landfill                                                       • Recycled Solvent - 24 tons per month            • Compressed air leak management program
     or cut off the film by hand. The investment in          • Aluminum foil process waste is                                                                   to identify and fix the system deficiencies.
     the core stripper automates the “stripping”                collected and recycled into aluminum       • Cardboard - We diverted 100MT of
     process, separates cores from plastic film,                                                              cardboard from the landfill                     • Identification and operational optimization
     and allows for improved recycling of the cores                                                                                                              of all high energy demand plant equipment.
                                                             • WINPAK sites recycle non-production        • Foil Liners - We baled and diverted 11MT
     and film. The core stripper enabled WD to                  waste such as office paper, printer                                                           These achievements reflect the dedication of
     successfully recycle approximately 100MT                   cartridges, batteries, beverage            • Working with our suppliers to use our trim      an amazing WINPAK team who truly care about
     of cores and film over the past year. More                 containers, etc.                              waste to go back into our product.
     importantly, WD has improved safety since                                                                                                                our planet. The results were possible due to the
     employees no longer need to cut film from the                                                         • Working with partner companies to use our       combined efforts of the entire WINPAK family. I
                                                             • WINPAK sites re-use materials like                                                            am so honored to be a part of this team.”
     cores by hand.                                                                                           trim waste in the production of materials for
                                                                gaylords, cores, and pallets internally
                                                                and then recycle at end-of-life               roadways and/or in plastic furniture
     WINPAK is pleased to report that landfill
                                                                                                           • Overall, nearly 7,200MT of plastic were
     waste has reduced by 12% over the past
     several years. WINPAK’s Toronto site once                                                                diverted from landfill by our Operations
     again achieved zero waste to landfill status
     in 2020. Our sites in Sauk Village, IL, South                                                         WINPAK LANDFILL WASTE, MT
     Chicago Heights, IL, Rialto, CA, Winnipeg,           recyclers and other companies evaluating         10,000
     MB (American Biaxis site), and Pekin, IL are         opportunities to utilize our plastic scrap.
     all below 100MT of landfill waste as well.           We are hopeful that improved technologies
     We acknowledge much work is needed                   in both mechanical and advanced recycling         5,000

     to reach our goal of zero landfill waste.            will progress WINPAK further towards                                                                          Christine Fehler
     Beyond incorporating trim scrap back                 achievement of this goal.                                                                                     Director, Operations
     into production, WINPAK is engaged with                                                                        2017      2018      2019       2020                 WINPAK Division
30                                                                                                         Landfill Waste for WINPAK (all sites)                                                                   31
LOOKING AHEAD
     Sustainability is at the heart of our pledge – “It’s our nature to
     protect™”. In 2020, WINPAK and our entire world faced unprecedented
     challenges due to COVID-19. Impacts are still present today. However,
     these challenges also solidified our purpose because WINPAK provides
     essential packaging innovations that ensure critical food and healthcare
     supplies are delivered to consumers and those in need.
     The challenges and needs of 2020, however, did not deter WINPAK from
     advancing its safety culture. Protecting the safety and well-being of all
     employees is our top priority. WINPAK will continue its relentless pursuit of zero
     injuries through education, training, and responsibility.

     Also, WINPAK maintained laser focus on advancing packaging sustainability as
     well. Our investments and innovations push WINPAK in a direction of efficiency
     and creating packaging innovations more suited for a Circular Economy. Moving
     forward, we will accelerate our advancements towards a Circular Economy
     both in terms of new packaging system innovations and external collaborations
     to support infrastructure, collection, and recovery of plastic waste.

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