SUSTAINABLE BUSINESS FOR A SUSTAINABLE WORLD sidel.com/sustainability 1 A PART OF EVERYTHING WE DO At Sidel, we believe that sustainable practices and good business go hand in hand. By including sustainability in everything we do, we can play an active role in protecting our environment, and ultimately our future. A far-reaching sustainable approach Our sustainability initiatives can be found in all areas of working life at Sidel. We are committed to minimising our footprint while maximising our impact across the supply chain. Realising this goal depends on ensuring sustainable success in six key areas: PEOPLE PARTNERS The heart of our organisation Creating shared value PET The sustainable beverage packaging solution The strong foundation for ongoing success PRODUCTS The high quality that keeps beverages safe PERFORMANCE PLANET Our commitment to creating a more sustainable future Together with our partners, we aim to solve some of the world’s challenges one bottle at a time.” 2 3 PEOPLE THE HEART OF OUR ORGANISATION THE DIVERSITY, DEVELOPMENT AND WELLBEING OF OUR PEOPLE IS ESSENTIAL TO OUR SUSTAINABLE SUCCESS AND THAT OF THE COMMUNITIES IN WHICH WE WORK The knowledge and expertise of our people enable us to provide sustainable packaging solutions for beverage producers around the world. Diversity is valuable At Sidel, we firmly believe that a diverse workforce brings a range of benefits. It reflects the varied markets and communities in which we operate and by embracing diversity we also can find solutions to the challenges of the future. Our commitment to a sustainable and diverse workforce includes: ■ Recruitment and promotion processes that are exclusively based on qualifications and skills ■ Integration of people with disabilities through our work station adaptation programme ■ Equal treatment and opportunities to all employees ■ No tolerance of any form of harassment Work-related accidents and illnesses are another focus area and we continually work to reduce absences by following health and safety directives and providing relevant training. Prioritising health and safety We strive to ensure that production and business operations are performed as efficiently and safely as possible. To achieve this we comply with a number of certification schemes. For example, our manufacturing site in Parma has been certified with OHSAS 18001 for Health and Safety Management Systems. Accident frequency and severity: ■ Lost Time Accident Frequency index, reflecting the number of accidents with work stoppage: 5.8* ■ Lost Time Accident Severity Index, reflecting the number of working days lost due to accidents: 0.16** Why developing people matters We aim to ensure that everyone at Sidel is given the opportunity to develop, both collectively and individually. That is why we provide a variety of training opportunities to support professional and personal development. Absence from work: ■ Non-work related: 1.7% ■ Work-related: 0.13% Note *Lost Time Accident Frequency index = (Number of accidents × 1,000,000)/Number of working hours **L ost Time Accident Severity index = (Number of working days lost × 1,000)/Number of working hours AT SIDEL, DIVERSITY MATTERS Gender equality We are actively committed to and have achieved a continual narrowing of the gender gap. All employees by gender: 19% women, 81% men 23% of all hires are now women Percentages of people promoted to higher positions: 7.6% of women, 5.7% of men Nationalities We are a multi-national company. Reflecting Sidel’s international presence, our people represent 65 nationalities. Our top management comprises 13 nationalities. Age We are a strong mix of experienced and young people. 41 Average age of our employees 35 Average hiring age YEARS Employment duration Our people are here for the long term. People stay in the company for an average of 11.2 years YEARS People with disabilities stay on average 19.3 years Our top management team, at GLT-1 level comprises 14% women (based on February 2015 data). 4 Note: Data is for 2014 Sidel Group including Gebo Cermex, except data related to top management which is for Sidel only. 5 PARTNERS CREATING SHARED VALUE COLLABORATING CLOSELY WITH OUR PARTNERS AND ENGAGING IN DIALOGUE IS CENTRAL TO ACHIEVING OUR SUSTAINABILITY GOALS We’ve built our business on high standards and are proud to take an active part in industry associations and organisations that can raise these standards even higher. Together with our customers, suppliers, other external partners and, most importantly, the communities in which we do business, we aim to create shared value. As a key player in the beverage industry, we understand that sometimes industry challenges are too great to be faced and dealt with alone. For this reason we have created the KNOWLEDGEshare™ forum. ■ EcoVadis: A sustainability rating platform used to understand, track and improve environmental, ethical and social performance worldwide. KNOWLEDGEshare gives industry leaders the opportunity to discuss, share and learn about where the market is heading and the challenges ahead. Several KNOWLEDGEshare events have been successfully held and the discussions are continuing online on the popular blog at blog.knowledgeshare.com. ■ SMETA (Sedex Members Ethical Trade Audit): An ethical trade audit covering Labour Standards, Health & Safety, Environment and Business Practices successfully carried out at eight of our global sites* (Beijing in China; Parma and Mantova in Italy; Octeville, Saint Laurent sur Sèvre, Corcelles-les-Cîteaux, Lisieux in France; and Atlanta in the USA). Transparency and collaboration Business sustainability is also dependent on transparency. That’s why we work with Sedex (Supplier Ethical Data Exchange), the world’s largest collaborative platform for sharing ethical supply chain data. In addition, we regularly submit data on our labour standards, environmental efforts, health and safety initiatives and business integrity. Our respect for the environment and its protection can be seen in our strong focus on Corporate Social Responsibility (CSR) and Corporate Governance. In 2015 our efforts were acknowledged with a silver CSR rating from EcoVadis. This puts Sidel in the top 30% of all the 20,000 companies assessed with an above average performance in all evaluation areas. ■ SEDEX (Supplier Ethical Data Exchange): The world’s largest collaborative platform for sharing ethical supply chain data. Sidel’s purpose is to help brands protect the product inside and the planet outside. We continue to implement CSR in everything we do to help us achieve this and are pleased to see our EcoVadis rating this year is an improvement on last year.” CREATING SHARED VALUE WITH Customers Suppliers External partners Communities *Including Gebo Cermex, part of Sidel Group. 6 7 PRODUCTS THE HIGH QUALITY THAT KEEPS BEVERAGES SAFE 8 ENSURING SAFETY AND HYGIENE THROUGHOUT THE PACKAGING PROCESS IS ABOUT MEETING LEGISLATIVE REQUIREMENTS, AND IT IS OUR GREATEST RESPONSIBILITY Ensuring food safety We work with all stakeholders across the supply chain to ensure quality and traceability – from sourcing raw ingredients, to packaging, blowing, filling, packing and distribution. Food safety is a prerequisite for any responsible business in the beverage industry. As packaging comes into direct contact with the beverage, it must meet strict safety, hygiene and legislative requirements without ever compromising quality. The same is true for production equipment, which is carefully designed and tested to meet the strictest standards. Our team of in-house scientists, engineers and technicians are devoted to the safety and integrity of our customers’ beverage products. We also collaborate with Tetra Pak Processing Systems to give producers a reliable, complete solution for their beverages that includes hygienic design, assembly, installation and maintenance support. Consumers are demanding sustainability Anticipating future trends and understanding consumer needs is essential to creating the products they require. We regularly carry out consumer research which has confirmed that sustainability issues are high on the agenda for people everywhere. This research has shown that today’s consumer: ■ E xpects sustainability in all aspects of the value chain – from sourcing to transportation ■ W ill spend more on organic, locally sourced, fair-trade, low-carbon footprint and eco-packaged products ■ W ill pay a premium for a brand they trust ■ Increasingly sees packaging recycling as an important ethical act ■ Wants a great experience every time 9 PET THE SAFE AND SUSTAINABLE BEVERAGE PACKAGING SOLUTION PET IS THE PREFERRED PACKAGING MATERIAL FOR MANY FOODS AND BEVERAGES AS IT IS SAFE, STRONG, LIGHTWEIGHT AND 100% RECYCLABLE Like glass, it is strong, resistant to attack by micro-organisms, does not react with foods, and will not biologically degrade. However, unlike glass and other traditional packaging materials, PET is extremely lightweight, simple to transport and won’t break. That’s why food and beverage producers around the world rely on PET to protect their beverages and give the consumer a great experience. Lighter and lighter The weight of PET bottles has decreased significantly over the past decades. This is mainly due to technological developments in the areas of PET resin, PET preforms, PET bottle design and PET production equipment. For example, in 2014 the weight of a 0.5 litre PET bottle for still water was 72% lighter than its equivalent in 1985. What’s more, with the introduction of the Sidel RightWeight™ concept bottle, this lighter packaging does not compromise bottle performance. PET BRINGS MANY ADVANTAGES Strong Robust composition, virtually unbreakable But that’s not all… ■ Resealable ■ Perfect for on-the-go activities Recyclable 100% recyclable and can be used for new products ■ The ideal method for delivering the world’s most precious resource – water ■ Transparent Flexible Exciting design and branding opportunities Safe Hygienic, environmentally friendly and protective ■ Reduces water and chemical use during production PET ■ Energy efficient to produce ■ Prevents wastage ■ Future proof (can be produced with renewable resources) Lightweight Efficient use of materials means easier transportation and lower carbon footprint Sidel has reduced the weight of PET bottles by 72% in 30 years 10 11 PET HOW A PET BOTTLE IS PRODUCED GLOBAL CONFIDENCE IN THE HYGIENIC AND CHEMICAL SAFETY OF PET COMES FROM THE FACT THAT THE PET POLYMER IS HIGHLY STABLE AND INERT The remarkable material polyethylene terephthalate (PET) was first discovered and patented in England in 1941 by John Rex Whinfield in his search to make new textile fibres. In 1973, Nathaniel Wyeth discovered how this material could be stretched in a three dimensional way to form a container. This resulted in an attractive alternative to glass and other traditional packaging materials – and the birth of the PET bottle. HOW DOES A POLYMER BECOME A PET BOTTLE? 1. THE SCIENCE BEHIND PET PET is made by combining an odourless and colourless organic compound called ethylene glycol with terephthalic acid to form polyethylene terephthalate, or PET as it is more widely known. The material is then crystallised into a resin and formed into pellets. 5. LABELLING Finally a label is applied to the PET bottle. This can either be wrapped around or sleeved on to the bottle. As focus on sustainability increases, the way labels are applied is also changing. For example, modern labels require no glue and only use printing inks that can be recycled with the PET bottle. 12 2. CREATING THE PREFORM The PET resin pellets are melted to create a shape similar to a test tube called a preform. This is done in a high speed injection moulding process. The preform is created with a bottleneck opening. 6. P ACKING AND PALLETISING Bottles are then grouped in packs and wrapped using a plastic film to keep them together. The packs are layered on a pallet, which is overwrapped to protect the bottles during transport. 3. SHAPING THE BOTTLE The preforms are heated in an oven at a temperature of around 100 °C. Heating softens the preform so that it becomes elastic, which allows it to be blown and stretched to the shape of the mould using the blow moulder machine. As soon as the bottle is blown it must be cooled immediately to retain its shape. 7. DELIVERY The final beverage product is then ready to be transported and delivered to consumers. As PET is lighter than glass, a truckload of PET packs can contain up to a third more than glass bottles. This uses the full space of the truck with no overloading. Furthermore, as PET bottles are less likely to break, the need for secondary packaging is also reduced. These factors virtually halve the total transportation energy required and decreases greenhouse gas emissions. 4. FILLING The new PET bottle is then filled using a filler machine. Depending on the type of beverage and its distribution requirements, e. g. room temperate or cold chain, different types of fillers are available. Once the bottle has been filled, it is capped. Blowing, filling and capping are often combined in a single integrated system called Combi. This piece of equipment offers a smaller carbon footprint while maintaining the highest standards of food safety. 8. DRINKS ANYTIME The resealability of PET bottles has proven popular with consumers as they can enjoy the drink, put the cap back on and take it with them later. This contributes to reduced wastage. The many benefits of PET also make it a reliable resource for delivering the world’s most important resource – water. This is especially important in regions where there is no effective water infrastructure or in times of crisis or natural disasters. 13 PET BRINGING PET TO LIFE AGAIN THE RECYCLABILITY OF PET MAKES IT AN IDEAL PACKAGING CHOICE FOR SUSTAINABILITY-CONSCIOUS BUSINESSES For every PET bottle given a second life through recycling, we can: ■ S ave raw materials ■ Reduce waste and greenhouse gases ■ Use 2/3 less energy in manufacturing compared with the virgin PET manufacturing processes Both the cap and the bottle itself can be recycled and given a new life. Sustainable beverage production A number of major brands are committed to using recycled PET (R-PET) in their bottles to increase sustainability in their beverage production. These include: ■ Spa Monopole, Belgium: 50% R-PET in its mineral water bottles ■ Nestlé Waters: 50% R-PET in its water bottle ReBorn, used for the Arrowhead water brand ■ Martens Brewery: 50% R-PET ■ Danone: 25% R-PET for Evian and Volvic export bottles ■ Coca-Cola: Committed to sourcing 25% of its PET from recycled material ■ PepsiCo: Uses at least 10% R-PET in its primary carbonated soft drinks bottles in the USA, and is creating partnerships to increase recycling rates to 50% by 2018 The value of R-PET In addition to being reused in new bottles, the value of PET is being seen in other industries. It can be successfully recycled into a wide variety of products and applications – from furniture to household goods and clothing. At the 2014 FIFA World Cup in Brazil, many of the teams including the host nation wore clothes made from recycled PET. Each kit comprised shirt, shorts and socks and was made using an average of 18 recycled plastic bottles. Education is the way forward Today PET is the most widely recycled plastic in the world. However, its popularity also means that demand for PET to be recycled outstrips supply. Key to increasing the availability of PET for recycling is consumer education on the value of recycling. In Europe, 52% of all used PET bottles were recycled in 2012. In the United States, the gross recycling rate for the same period reached 30.8% and the recycling of PET water bottles increased by almost 20%. PET CAN BECOME SO MUCH MORE: Clothing 14 Footballs Headphones Trainers 15 PET CLOSING THE LOOP WHEN THE SUSTAINABLE CHARACTERISTICS OF PET ARE COMBINED WITH THOSE OF R-PET AND BIO-PET, WE ARE TAKING ANOTHER STEP CLOSER TO THE ULTIMATE OBJECTIVE OF A CLOSED LOOP SUSTAINABLE PACKAGING SUPPLY CHAIN Minor share of a natural resource Although the use of petroleum in PET has caused some people to question its sustainability credentials, it should be remembered that transportation, heating and electricity generation account for more than 85% of petroleum usage. This clearly highlights the importance of focusing on replacing fossil fuels with renewable sources to conserve our planet’s resources. New technology has enabled PET to be created from agricultural by-products in a truly renewable form. The resulting Bio-PET has generated great interest from all parts of the industry – not least because it removes dependency on petroleum in its production. In theory, virgin PET could be derived from 100% renewable resources, which further strengthens PET’s position as the sustainable packaging of choice.” Bio-PET – a promising material Created from sugar cane molasses, for example, an organic agricultural by-product in sugar production, Bio-PET is an exciting development because it can be used with both virgin and R-PET to make the so-called Mixed PET. It is also fully compatible with standard PET recycling processes. At a time when the world’s oil resources are diminishing, Bio-PET should be seen as the ideal alternative. Global organisations, such as Coca-Cola, PepsiCo, Nestlé and Danone have already realised the many benefits of Bio-PET and are working to make this material more widespread in their production processes. PET ACCOUNTS FOR ONLY 0.2% PET ACCOUNTS FOR ONLY 0.2% OFOF THE GLOBAL PETROLEUM CONSUMPTION THE GLOBAL PETROLEUM CONSUMPTION Other plastics PET Deriv. lubricants 5% Chemicals Power generation Transportation PET accounts for just 5% of the worldwide plastic output. Virgin PET could be derived from 100% renewable sources. Heating oils 16 17 PERFORMANCE THE STRONG FOUNDATION FOR ONGOING SUCCESS WE OPERATE WITH A STRONG CORPORATE GOVERNANCE FOCUS THAT PLACES SUSTAINABILITY AT THE CENTRE OF OUR BUSINESS It provides Sidel’s employees with clear rules and guidance on how we should act in most business situations, including in our interactions with colleagues, customers, suppliers, competitors and business partners. Maintaining standards leads to the highest quality We set high standards for quality at all of our sites around the globe to meet, if not exceed, our customers’ needs and expectations. Six of our production sites have already been certified with ISO 9001 for Quality Management Systems. Our ISO 9001 certified sites* are: ■ L aval, Canada ■ Mantova, Italy ■ Octeville, France (mould shop) ■ Reichstett, France ■ S antiago, Chile ■ Vale de Cambra, Portugal Sidel’s Corporate Governance Framework is split into two elements: ■ Mandate, Values and Assurance Structure This ensures we run our business according to the Charter of Responsibility, Group Leadership Team (GLT) Charter, Code of Business Conduct, Company Values, Group Policies and Procedures, Risk Management and assurance activities. ■ Organisational and Decision-Making Structure This includes the various governance bodies, such as the Global Leadership Team, Corporate Governance Council, Corporate Governance Office and the Compliance Leader Network. Corporate governance is the foundation for sustainable success We recognise that achieving our sustainability goals is dependent on delivering on our financial, operational and other business goals. Our Corporate Governance Framework provides strong foundations for sustainable success and protects our key stakeholders – our customers, employees and shareholders. * Including Gebo Cermex, part of Sidel Group. CORPORATE GOVERNANCE FRAMEWORK SIDEL CORPORATE GOVERNANCE FRAMEWORK Mandate, Values and Assurance Structure Charter of Responsibility & GLT Charter 18 Code of Business Conduct Company Values Organisation and Decision Making Structure Global Leadership Team Corporate Governance Council Group Policies and Procedures Corporate Governance Office Risk Management, other processes and support Compliance Leader Network At Sidel, Corporate Governance is the foundation for sustainable success.” 19 PLANET OUR COMMITMENT TO CREATING A MORE SUSTAINABLE FUTURE OUR BUSINESS IS BUILT WITH THE AIM OF CONSERVING THE PLANET’S RESOURCES IN AN ETHICAL AND SOCIALLY RESPONSIBLE MANNER By 2030 forecasts suggest energy demands on our planet will increase by 50%, food by 50% and water by 30%. This means food and drink handling must play a central role in increasing sustainable practices. We incorporate sustainability in all aspects of our business. From integrating environmental considerations into management decisions, to the way we make investments, develop policies, programmes and carry out practices. Saving resources In recent years, we have made considerable progress in developing equipment and services that can save resources for our customers in the production process. For example: ■ The new eco-responsible solution Sidel Matrix™ uses a minimum amount of energy, air, chemicals and water in the production process. ■ The innovative Predis™ dry preform decontamination solution aseptically packages sensitive products, such as juices, teas and liquid dairy products using no water and almost no chemicals. ■ The Sidel Rollsleeve labeller enables the use of eco-friendly recycled material and is 100% solvent-free. ■ The installation of the energy-saving ECO Oven onto an existing line has been shown to save up to 45% on energy while installing the ECO Lamps on the blower saves a further 15%. 20 Production is one part of the environmental equation Improving the environmental performance of a beverage product requires a holistic approach. To do this we use Life Cycle Analysis (LCA) that follows the product right up to the completion of its life cycle taking into account its entire carbon footprint. This includes design to specification, cost, recycling, environmental impact and performance. It also includes all primary, secondary and tertiary packaging. We have helped beverage producers worldwide with their own LCA calculations to ensure they achieve the most sustainable liquid packaging solution. Minimising carbon footprint We are firmly committed to protecting the environment in everything we do. This commitment can be seen in the investments we make at all of our sites to better manage natural resources. Our ultimate goal is to use solutions based on renewable energies. Some of our site improvements: ■ We have evaluated our carbon footprint at our manufacturing site in Octeville, France, as a starting point to improving sustainability at all our sites around the world. ■ Our sustainability programme “Reduce, Reuse & Recycle” is being established globally to improve energy management at our sites. ■ Three of our production sites have been certified with ISO 14001 focused on Environmental Management Systems. 21 FACTS AND FIGURES SIDEL SUSTAINABILITY IN BRIEF SEDEX AUDIT PASSED WITH 100% COMPLIANCE ON 7 AUDITED SIDEL GROUP SITES TOP 30% OF 20,000 COMPANIES INDEPENDENTLY EVALUATED BY ECOVADIS IN TERMS OF CSR 3 PRODUCTION SITES CERTIFIED WITH ISO 14001 FOR ENVIRONMENTAL MANAGEMENT SYSTEMS 6 PRODUCTION SITES CERTIFIED WITH ISO 9001 FOR QUALITY MANAGEMENT SYSTEMS COMPLIANCE WITH EHEDG (THE EUROPEAN HYGIENIC ENGINEERING & DESIGN GROUP) 22 250 OLYMPIC SWIMMING POOLS OF WATER ALREADY SAVED WITH SIDEL PREDIS™ 30% 7 2% LIGHTER PET BOTTLES WITHOUT COMPRISING QUALITY LIGHTER PET BOTTLES IN 30 YEARS 45% LESS OVEN ENERGY WITH SIDEL MATRIX™ BLOWERS 11.2 YEARS IN AVERAGE FOR PEOPLE WORKING AT SIDEL 23 FIND OUT MORE AT SIDEL.COM/SUSTAINABILITY Our purpose is to help brands protect the product inside, preserve the planet outside and touch the lives of millions of people every day. We do so by offering complete and modular PET packaging solutions, including people, services and equipment. Sidel has over 165 years of industrial experience. With 30,000 machines installed in more than 190 countries, we have been helping producers fill beverage bottles for over 85 years, blow them for more than 50 and label them for more than 40. We have over 40 years of aseptic packaging expertise, and were one of the first companies to introduce PET bottles to the beverage industry over 35 years ago. Part of the Tetra Laval group, Sidel has offices worldwide, including 8 production sites and 8 training centres. All our experts are committed to creating the optimum liquidpackaging solution. We call it A Better Match – for our world, our customers and ourselves. 160412 – The information in this document contains general descriptions of technical options available, which do not always have to be present in each individual case. The required features should therefore be specified in each individual case at the time of closing the contract. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, without previous written approval by Sidel. All intellectual rights, including copyright, are reserved by Sidel. sidel.com