CSR AND SUSTAINABILITY Further steps advance the Group’s position in CSR AR Packaging is one of the leaders in its divisions of the packaging market and therefore a notable presence in Corporate Social Responsibility is our conviction and key to remain competitive. The Group is committed to conducting its business in an ethically, socially and environmentally responsible manner. In 2015 the Group took further steps to advance its position within CSR, among others: full implementation of data collection software 360°report, new group-wide COP (Communication of Progress) reporting for UN Global Compact, a number of new certifications according to international standards and renewed sustainability related policies. An annual sustainability report is issued to present the Group’s achievements within CSR. From an overall perspective, good packaging must save more than it costs in the total value chain. Well-designed packaging saves resources by minimising waste from the packed product. The use of renewable and recycled raw materials in an optimised process results in thin, tight and light packaging with minimal waste. Strategy The Group’s strategy for CSR – Corporate Social Responsibility – covers three areas: Sustainable development of our business Growing with economic success and reduced environmental footprint Creating more value for our customers and the people in our company Legal and social compliance Compliance with regulations on environmental, social and food safety standards Monitoring key figures Implementation and development of key figure system and focus areas such as energy and water usage, emission on carbon footprint and waste. Monitor, understand and manage our environmental impact at individual sites and on group level Delegated responsibility At AR Packaging, all work, investments and other activities are based on a holistic perspective with the purpose of continuously reducing the environmental impact of the packaging and the operations. The responsibility for sustainability and social accountability has been transferred to each unit, placing decision making closer to where the most specific knowledge is, while being monitored and followed-up on group level. UN Global Compact AR Packaging is a signatory of the United Nations Global Compact, adopting its ten principles and committed to conducting its business in an ethically, socially and environmentally responsible manner with the aim of contributing to the positive development of the communities in which its products are used – as well as those in which the Group conducts its operations. Fulfilling the reporting requirements The Group has invested in a new data collection software which forms the basis for fulfilling the reporting requirements of the UN Global Compact, Carbon Disclosure Project (CDP) and Sustainability reporting following Global Reporting Initiative (GRI) in general. This software will also serve as a benchmark and improvement tool at group level. Ethical business practices In 2015 a completely reworked Business ethics policy was implemented including common signing procedure and training. The policy includes clear statements on topics such as human rights, child labour, discrimination, social standards as well as on anti-corruption and bribery. Although the production plants and main suppliers are operating in non-critical and well regulated countries, the Groups is careful and continuously observing the situation in its supply chain. Human rights and anti-corruption In May 2015, total 14 of 17 plants had performed successful regular social audits and self-assessments by external independent companies. In order to prove ethical business practices within the whole Group, it is the aim to integrate all 17 plants in this audit system until end of 2016. All plants have procedures or contact persons, such as line managers or workers’ council, in place to inform about social or legal violations by all employees. To further develop this area a new whistleblower-concept was implemented in beginning of 2016. Labor principles and employees General statements on labour principles are included in AR Packaging Business ethics policy. Elimination of all forms of forced and compulsory labour as well as the use of child labour is legislated in all countries where AR Packaging has employees. Health and occupational safety The goal is to protect the Group’s personnel from illness or injury in the workplace and make them feel safer, more confident and valued. For the Group it makes good business sense to get equipped with the knowledge and skills to improve safety at work but also increase the health awareness of the employees. A group-wide health and safety policy, as well as reporting on group level, will be implemented in 2016 to support further progress in this area. Certification and sustainability activities within AR Packaging: ISO 9001 ISO 14001 FSC/PEFC Social accountability SEDEX BRC/IoP FSSC 22000 Frankfurt Yes Yes Yes (Multisite) Yes Yes Yes Augsburg Yes Yes (Multisite) Yes Graz Yes Yes Yes (Multisite) Yes No, but EN15593 No, but ISO 22000 Krakow Yes Yes Yes (Multisite) No, butISO 22000 CC Pack Yes Yes Yes SP Containers Yes (FSC) Yes Yes Kauttua Yes Yes Yes Yes Yes Yes Tabasalu Yes Yes Yes No, butISO 22000 Ingerois Yes Yes Cholet Yes Yes Yes Yes Yes Timashevsk Yes Yes (Multisite) Yes Yes Yes St Petersburg Yes Yes (Multisite) Planned 2016 Yes Moscow Yes Yes (Multisite) Yes Å&R Carton Lund Yes Yes Yes Yes Yes Yes Flextrus Lund Yes Yes Yes (FSC) Yes Yes Yes Flextrus Halmstad Yes Yes Yes Yes Flextrus Highbridge Yes Yes Yes Yes Status March 2016 Environment AR Packaging promotes sustainability across all aspects of the business, with a particular focus on sound paper procurement and conversion practices, thus ensuring responsible management of forests and other natural resources. At the end of 2015, 8 of 17 plants were certified under ISO 14001 (environmental management). Further extension of certificates will be reflected on a plant basis. Used raw material AR Packaging actively works with customers to decrease material usage with smart designed alternative constructions and to increase the amount of renewable materials in the packaging. At the end of 2015 13 of 17 plants were certified on FSC® (Forest Stewardship Council) and PEFC™ (Programme for the Endorsement of Forest Certification) and thus AR Packaging offer its customers to use these standards on responsible forest management for their products. Energy consumption In order to reduce energy consumption, monitoring and reporting of heating and electricity are being continuously increased. A wide array of initiatives are taken at many plants within the Group in order to optimise energy utilisation and reduce their environmental footprint. For example, the German plants were certified according to ISO 50001 (energy management) in 2015. Water use Different kinds and qualities of raw carton paper require different quantities of water in the refinement process. No water sources are significantly affected by withdrawal of the Group’s organisation. All plants work ongoing on possible process optimisations and minimisation of water consumption. Emissions Rotogravure and flexographic printing can emit fumes in the drying process for inks and varnish. The plants in the European Union that use rotogravure and flexographic printing have installed incinerators to burn the exhaust – thereby reducing emissions. There are no other significant direct emissions from AR Packaging’s production processes. As a consequence of the membership on Carbon Disclosure Project (CDP) the Group has started to enhance transparency on direct and indirect emission sources and to build reporting on Group level which help to track improvements on reduction of carbon footprint. In the sustainability reporting 2015 the acquired plants in Moscow, Krakow and Graz will also be integrated in Group level reporting. These plants are already since years active in sustainability improvements and reduction of environmental footprint. Waste Main waste produced in the processes is paper and board waste generated during setting-up, production and from transport packaging. All waste is separated in different sections. Environmental managers and other responsible persons for waste in the Group’s plants secure fulfilling legislation requirements and that all waste is only handled by licensed disposal companies. In 2014 there were no incidents within our organisation in which environmentally harmful substances such as oils, fuels and chemicals have been released. Food safety and hygiene AR Packaging is committed to delivering the highest standards of quality of the packaging solutions that it provides. The high focus on food safety and hygiene is proven by 11 of 17 plants being certified according to BRC/IOP (Hygiene management), 3 plants additionally certified according to the new FSSC 22000 standard (Food safety management) and 3 further plants on ISO 22000 (Food safety management).