Changingfor
the Better
2014-15 Corporate
Responsibility Report
Report
2014-15 CORPORATE RESPONSIBILITY
Principles of corporate responsibility
and sustainable development
n Customer commitment
n Governance and integrity
n Financial performance
n Strategic leadership
n Environmental responsibility
n Employee health, safety and development
n Stakeholder engagement and communication
n Community support and philanthropy
1
Letter to Stakeholders
2
Leading Responsibly
5
Commitment to Customers
6
Sonoco at a Glance
8
Environmental Stewardship
10
Social Responsibility
14
Stakeholder Engagement and Materiality Assessment
18
Sustainability Oversight
19
About this report
Sonoco has used the Global Reporting Initiative (GRI)
G3 Guidelines to define the content of our 2014-15
Corporate Responsibility Report. These guidelines form a
voluntary framework of principles and indicators used to
measure and report economic, environmental and social
performance. They also provide a standard of comparison
among Sonoco and our peers. We hope you will make
special note of our GRI Content Index on pages 20-33.
In 2014, we conducted our first materiality assessment of
economic, environmental and social issues. We engaged a
Big Four consulting firm to perform a quantitative, stakeholder-driven assessment to identify and prioritize the sustainability issues material to Sonoco and its stakeholders.
This report reflects our materiality assessment and the
progress we have made in meeting our stakeholder commitments. We have carefully considered Company data
and projects from 2014 and 2015 and how those projects
relate to our customers, shareholders, employees, suppliers and the communities in which we operate.
1
S O N O C O 2 0 1 4 - 1 5 C O R P O R AT E R E S P O N S I B I L I T Y R E P O R T Corporate responsibility statement of intent
Become the acknowledged packaging industry
leader in creating and enhancing a sustainable future
that benefits all of Sonoco’s stakeholders through
improvement of economic performance, social
responsibility and environmental stewardship.
Introduction
INTRODUCTION
Table of Contents
Stakeholders
TO SONOCO
Over the past five
years, Sonoco
nearly 24%.
$1 million
in annual support donated to Hartsville
schools to build a brighter future for the
young people in our hometown.
35
Water usage declined
35% in 2014—a reduction
of more than 10 million
cubic meters.
In five years,
Sonoco lowered
CO2 emissions
at the Hartsville
complex by
nearly 65%.
65%
$75 million
was invested
in a biomass
cogeneration
facility at our
Hartsville
manufacturing
complex.
Five years ago, we established goals to change our
economic, environmental and social performance
in aspects that were material to Sonoco and its
stakeholders. This report reflects the significant
progress we have made to not only meet, but also
exceed, these challenging sustainability goals.
Let me highlight these achievements.
Exceeding our GHG reduction goal
to reduce climate impact
To lessen our impact on climate, we established a
goal to materially reduce normalized greenhouse
gas (GHG) emissions by 15% over five years. Our
strategy has focused on reducing use of higher
emitting energy sources, particularly coal, and
transitioning to less carbon-intensive natural gas
and biogenic carbon-neutral biomass (C02 = 0).
This effort required significant planning, engineering and investment in our global uncoated
recycled paperboard (URB) mills, including a
$75 million biomass cogeneration facility in
our Hartsville, S.C., manufacturing complex to
reduce energy costs.
The benefits of this strategy have been dramatic.
Over the past five years, Sonoco reduced normalized GHG emissions by nearly 24%, with normalized emissions in 2014 dropping nearly 12% and
direct emissions (Scope 1) from Sonoco’s facilities
reduced by 21%, reflecting the success of the new
Hartsville biomass boiler system.
TO S O N O C O S TA K E H O L D E R S
GHG emissions by
Changing for the better
Several years ago, we began the process of changing Sonoco for the better. These changes are providing us better opportunities to grow through
new products, new markets, new customers, new
services and new ways of thinking. Our process
of change is also creating an environment that
allows us to better harness the power of our portfolio and our people to optimize our sustainability performance.
2
S O N O C O 2 0 1 4 - 1 5 C O R P O R AT E R E S P O N S I B I L I T Y R E P O R T reduced normalized
Finally, as one of the largest recyclers in the United
States, our Sonoco Recycling subsidiary has developed
an industry-leading program that has helped Sonoco
facilities and our customers’ operations achieve landfill-free status by diverting wastes from landfills.
Nearly 10% of our facilities and 17 of our customers’
operations have achieved Sonoco Sustainability Star
Awards, including several facilities that have reached
total landfill diversion.
For instance, our Tulsa, Okla., Tube and Core operation
achieved Gold Status (99% waste diversion) for the
plant’s successful efforts to divert non-recyclable
coated tube scrap to a sourcing company for secondary
use. In addition, as a key supplier to Unilever, Sonoco
has provided waste management services to its North
America operations, including exchanging best practices for waste avoidance and enacting a procedure that
pushes up the hierarchy for recycling materials rather
than converting waste to energy.
Driving educational improvement
in our communities
Beyond a focus strictly on our business, Sonoco
remains committed to enriching lives in the communities where we operate. Whether it is supporting
summer reading camps and after-school Scoutreach
programs, mentoring youth or providing STEMfocused training for high school students taught by
Sonoco engineers, we believe improving education is
paying dividends in our communities and ultimately
for Sonoco.
In March 2015, a nationwide PBS documentary entitled 180 Days: Hartsville captured the extraordinary
stories of teachers, administrators, students and parents working together—with $1 million in annual
support from Sonoco—to improve academic performance and build a brighter future for the young people
in our hometown.
Goals for the next five years
While our sustainability achievements over the past
five years have been an exceptional change for the better, we realize we must continue to pursue improvement. We have learned that doing the right thing
involves understanding the economic, environmental
and social aspects material to Sonoco and our stakeholders and then driving progress to improve our performance of those issues. On page 18, you will see a
stakeholder engagement and materiality chart that
reflects our assessment of key issues we will pursue in
the future. However, we also realize it will be much
more difficult to achieve the level of improvements
experienced over the past five years without a significant breakthrough in science or technology.
TO S O N O C O S TA K E H O L D E R S
Reducing water use and wastes
In addition to reducing air emissions from our manufacturing facilities, we have also been successful in
significantly reducing water usage through improved
water treatment. To improve the performance of the
new biomass boiler cogeneration system, Sonoco
invested in new water cooling and treatment systems,
which significantly improved water recovery and
reuse. As a result, normalized water usage decreased
40% over the past five years, with consumption
declining 35% in 2014—equivalent to saving more
than 10 million cubic meters.
M. Jack Sanders,
President and Chief Executive Officer
3
S O N O C O 2 0 1 4 - 1 5 C O R P O R AT E R E S P O N S I B I L I T Y R E P O R T In addition to lowering CO2 emissions at the Hartsville
complex by nearly 65% over the past five years, we significantly reduced emissions of sulfur dioxide (down
95%), nitrogen oxides (down 65%) and particulates
(down 91%). The new unit also provided approximately
$8.5 million in cost savings in 2014 while producing
120,000 MW (megawatts) of green electricity. Fueling
the boiler was about 400,000 tons per year of processed wood debris (from limbs, stumps and other
wood wastes) coming from timber operations in northeast South Carolina, which allowed us to reduce coal
usage by 121,000 tons per year.
Stakeholders
TO SONOCO
Changing for the Better – Our Commitments and Progress
Reducing Our Impact
on the Environment
Business Strength and
Shareholder Performance
n
We reduced normalized greenhouse gas emissions (CO2) by 11.6%
in 2014 and 23.9% since 2009.
n
We reduced total water usage
by 29.6% in 2014 and reduced normalized water usage by 40.6%
since 2009.
n
S&P rates Sonoco’s debt at BBB+,
one of the strongest ratings in the
Packaging sector.
Our employees rated Sonoco a
78% positive engagement score.
n
We retained 98.6% of exceptional and promotable talent.
n
Sonoco has paid cash dividends
for 90 consecutive years and
increased dividends for 33 consecutive years, while providing shareholders a current 3% yield on
investment.
n
10% of Sonoco’s global manufacturing operations have achieved
95%+ diversion of wastes to
landfill.
n
We had 19 fewer employees
injured globally in 2014; we
achieved only 1.68 incidents per 1
million hours worked.
n
AON Hewitt ranked Sonoco one
of the top 25 global companies for
leaders six consecutive times.
n
Sonoco Recycling recovered the
equivalent by weight of more than
60% of the product Sonoco places
into the marketplace.
n
TO S O N O C O S TA K E H O L D E R S
n
Our market capitalization grew to
greater than $4.5 billion, compared
to less than $3 billion in 2009.
People Build Businesses
Using 2014 as our new baseline,
our commitment through 2020 is to:
n Reduce normalized global energy usage by
1% annually, which we believe will result in a further
1% reduction in GHG emissions (or reducing GHG
emissions by 5% through 2020).
n Reduce normalized water usage by 5% through
2020.
n Achieve Sonoco Sustainability Star award status
at an additional 10% of the Company’s operations by
significantly diverting landfill wastes. Also, continue
working with our customers to demonstrate total
landfill diversion from their operations in North
America and Europe.
n Demonstrate further improvement in employee
safety, diversity and engagement.
The progress highlighted in this report and our
2020 goals are a testament to Sonoco’s nearly 21,000
employees who execute our strategy while integrating
sustainability into everything we do.
If you’d like to extend a dialogue with the Company
on issues of sustainability, you may contact us at
sustainability@sonoco.com.
Sincerely,
M. Jack Sanders
President and Chief Executive Officer
S O N O C O 2 0 1 4 - 1 5 C O R P O R AT E R E S P O N S I B I L I T Y R E P O R T 4
Leadership
In 2014, we achieved record sales, topping
$5 billion for the first time in our 115-year history.
To further spur growth, we completed the
second-largest acquisition in our history,
purchasing the Weidenhammer Packaging Group
for $355 million, significantly expanding Sonoco’s
position in the European composite can market.
Overall, our two-year efforts to Grow and
Optimize have allowed us to provide a two-year
total return to shareholders of 56.8% (including
an 8% return in 2014)—compared with the S&P
500’s two-year total return performance of
50.2%—while our market capitalization has
grown to greater than $4.5 billion.
paid cash
dividends for
90
90 consecutive
years.
CASH DIVIDENDS PAID
dollars per share
1.11
2010
1.19
1.15
2011
1.23
2012
2013
1.27
2014
56.8
Sonoco’s efforts to Grow & Optimize resulted in
a two-year total return to shareholders of 56.8%.
5
4.8 .02
4.8 6
1
4.50
4.12
2010 NET SALES
2011 billions of dollars
2012*
2013*
2014*
4
2.19
2.03
1.90
2.13
6
1.9
225.9
209.8
.3
195
217.5
1.1
20
2010
2011
2012*
2013*
2014*
NET INCOME
ATTRIBUTABLE
TO SONOCO
millions of dollars
2010
2011
2012*
2013*
2014*
GAAP
EARNINGS
PER SHARE
dollars
*Amounts have been restated to correct prior year misstatements
S O N O C O 2 0 1 4 - 1 5 C O R P O R AT E R E S P O N S I B I L I T Y R E P O R T Sonoco has
F I N A N C I A L P E R F O R M A N C E A N D S T R AT E G I C L E A D E R S H I P
FINANCIAL PERFORMANCE AND STRATEGIC
Leading Responsibly
Continuing to Grow
and Optimize its
operations, Sonoco
remains the largest
corporation by
revenue in South
Carolina, and
was included
on Broadview
Network’s map
of the largest
companies in
America for the
second year in a
row. The map is
created based on
data from Hoover’s,
a D&B Company.
Governance, Integrity and Compliance
Lead by example: Sonoco will not permit any type of
illegal, unethical and/or improper behavior on the part of any employee. The Board of Directors and management strongly support
and adhere to all legislative and regulatory standards adopted by
the U.S. Congress, the Securities and Exchange Commission and
the New York Stock Exchange
n
Listen and communicate: The Board of Directors
regularly seeks input from shareholders, including providing
annual advisory votes on “Say on Pay” and approval of its LongTerm Incentive Plan
n
Independence: Eleven of the Company’s 13 Board
members are considered independent under criteria established
by the NYSE
n Compliance: Sonoco requires the Board of Directors,
management, employees, contractors and vendors to understand,
comply and certify with our business conduct standards.
Sonoco’s Code of Conduct can be found online at
www.sonoco.com/corporategovernance.
L E A D I N G R E S P O N S I B LY
n
5
S O N O C O 2 0 1 4 - 1 5 C O R P O R AT E R E S P O N S I B I L I T Y R E P O R T Sonoco
follows a
philosophy
that greater
transparency,
sensible
risk taking
and strong
governance
policies are
necessary
to protect
shareholder
value. Key
elements
include:
Customers
COMMITMENT TO
Ecotect uncoated
recycled paperboard is made from
100% recycled
fibers and is 100%
recyclable.
100
87
So far, 87 Sonoco
manufacturing
sites have
applied the
SPS process.
We approach our
customers’ businesses
starting with their
unique challenges,
then build a packaging neutral, 360°
Customized Solution that fits their specific
needs. We are able to do this by offering the
industry’s broadest range of packaging formats
and services, combined with our unique i6
Innovation Process™
and our deep technical
expertise in design,
packaging, testing
and material science.
Sonoco is increasing our quality and
speed to market through our Sonoco
Performance System (SPS) process.
SPS drives sustain-able, continuous
improvement in all aspects of operations
by focusing on employee engagement,
education and data-based decision
making that together will:
n Improve safety
n Support growth and our relationship
with customers
n Allow more time to focus on
productivity and process improvement
n Optimize a more flexible workforce
to meet challenging business demands
n Create a culture of clearly aligned
metrics, accountability and process
discipline
TM
CO M M ITM ENT TO CUSTO M ERS
22
We make
different
automotive
components
for a variety
of makes and
models.
Sonoco has been committed to satisfying our
customers since our founding in 1899. We think
of ourselves as a solutions company that offers
packaging, rather than a packaging company
that happens to offer solutions. The good news
is, we actually operate that way.
6
S O N O C O 2 0 1 4 - 1 5 C O R P O R AT E R E S P O N S I B I L I T Y R E P O R T Ten percent
of Sonoco
operations are
landfill-free.
Our wide range of expertise gives
us the ability to provide a variety
of solutions in the automotive
industry, from specialized
components within the interior
of a vehicle to the efficient
transportation of individual parts.
Components made from lightweight
molded foam improve fuel economy by
replacing heavier parts traditionally made from metal
and plastic. These components also capitalize on the
energy-absorbing properties of our foam in order to make
automobiles safer in the event of a collision.
CO M M ITM ENT TO CUSTO M ERS
Sonoco is producing plant-based plastic bottles for
Ecover’s new home care line. Ecover’s new look hit
store shelves across the U.S. in August 2014 in
Sonoco’s extrusion blow-molded bottles made
from Plantplastic, Ecover’s proprietary blend of
bio-sourced high-density polyethylene (HDPE)
and post-consumer recycled (PCR) resin. The
bio-resin, which is produced using plant-based
feedstock and recycled resin collected from
municipal curbside programs across the U.S.,
uses up to 90% less energy and emits 75% less
greenhouse gases compared to petroleum-based
virgin resin, and is recyclable in most curbside
recycling programs.
Sonoco’s acquisition of Weidenhammer Packaging Group allows
us to offer a paper bottom option
as a replacement for the traditional
metal bottoms in all our rigid paper
containers, including round, oval
and rectangular footprints. This
paper bottom weighs less than a
metal bottom, reducing the total
weight of packaging and thus contributing to reduced greenhouse
gas emissions, water and energy
use (according to PIQET, our
streamlined life cycle assessment
tool). Depending on the top closure
option used, paper bottoms may
also increase the container’s ability
to be accepted into a paper recycling stream, should the recycling
program accept composite cans.
7
S O N O C O 2 0 1 4 - 1 5 C O R P O R AT E R E S P O N S I B I L I T Y R E P O R T Our Sonoco ThermoSafe unit, which provides temperature assurance packaging for pharmaceuticals, biologics, vaccines and other temperature-sensitive
products, developed a reusable, bulk insulated container that optimizes storage
and transportation of dry ice and perishable goods across global markets. This
container uses advanced technologies
in foam adhesion and sidewall construction design, yielding a significant
improvement in prolonging dry ice
sublimation. The footprint of the new container allows for better cube utilization
of trucks, reducing operating costs and eliminating transportation inefficiencies,
and its reusability offers advantages from a sustainability standpoint.
At a Glance
SONOCO
Markets
Segments
Consumer Packaging
Markets
Products and Services
S O N O C O AT A G L A N C E
Round composite cans, shaped rigid paperboard
containers, fiber caulk/adhesive tubes; aluminum,
steel and peelable membrane easy-open closures for
composite and metal cans; plastic bottles, jars, jugs,
cups and trays; printed flexible packaging, rotogravure cylinder engraving, global brand management
Products and Services
Point-of-purchase displays, retail
security, custom packaging; fulfillment,
primary package filling, supply chain
management; paperboard specialties
8
S O N O C O 2 0 1 4 - 1 5 C O R P O R AT E R E S P O N S I B I L I T Y R E P O R T Display and
Packaging
Display
and
Packaging
Markets
Founded in 1899, SONOCO is a global provider of a variety of consumer packaging, industrial
products, protective packaging and packaging supply chain services. With annualized net sales
at just over $5 billion, the Company has approximately 20,800 employees working in 336
operations in 34 countries, serving many of the world’s best-known brands in some 85 nations.
Paper and Industrial
Converted
Protective Solutions
Markets
Products and Services
S O N O C O AT A G L A N C E
Recycled paperboard, chipboard, tubeboard,
light-weight corestock, boxboard, linerboard,
corrugated medium, specialty grades;
paperboard tubes and cores, molded plugs,
reels; collection, processing and recycling of
old corrugated containers, paper, plastics,
metal, glass and other recyclable materials
Markets
Products and Services
Highly engineered, custom-designed
protective and temperature-assurance
packaging solutions
S O N O C O 2 0 1 4 - 1 5 C O R P O R AT E R E S P O N S I B I L I T Y R E P O R T 9
Stewardship
ENVIRONMENTAL
48
million
48 customer and
Company facilities
have been recognized
with a Star Award.
100 sustained
jobs were
created with
the installation
of Sonoco’s
new biomass
boiler.
100
Sonoco reduced
total water
usage by
more than 29%
in 2014.
In 2009, Sonoco committed to a 15% reduction
in greenhouse gases by the end of 2014—a
goal we not only met, but exceeded at a nearly
24% reduction.
Sonoco is committed to taking 10% of
its global manufacturing operations
landfill- free (95% or more waste
diverted from landfills) by the end
of 2015. As of June 2015, 29 Sonoco
facilities are diverting 95% or more
waste from landfills. Sonoco and
customer facilities that significantly
reduce their waste to landfill qualify
for a Sonoco Sustainability Star Award.
24
29
Sonoco
committed to a
15% reduction
in greenhouse
gases by the end
of 2014—a goal
we not only met,
but exceeded at
nearly 24%.
E N V I R O N M E N TA L S T E W A R D S H I P
3
Sonoco is working to shrink the environmental
footprint at each of our manufacturing plants
by reducing waste going to landfills, energy
consumption, greenhouse gases, hazardous
air emissions and water usage.
10
Sonoco Recycling is a wholly owned subsidiary
of Sonoco, with annual collections of more
than 3 million tons of paper, plastic, metal and
other materials. By weight, this represents the
equivalent of more than 60% of the products
Sonoco places into the global marketplace.
Additionally, Sonoco Recycling diverts more than
20,000 tons per month from some 140 industrial/
manufacturing facilities outside of Sonoco
itself. These include some of the world’s most
recognized brands, which rely on us to create
and implement solutions toward achieving
landfill-free status in their facilities.
S O N O C O 2 0 1 4 - 1 5 C O R P O R AT E R E S P O N S I B I L I T Y R E P O R T Sonoco Recycling
collects more than
3 million tons of
paper, plastics,
metal and other
materials annually
Environmental Policy
Sonoco takes seriously our responsibility to
protect the environment in which we work and
live, and will conduct our business in accordance
with all legal requirements and ethical
responsibilities, using scientific knowledge,
technical innovation and sound environmental
management practices.
n We will be sensitive to environmental issues
throughout our business systems, including our
selection of materials, processes and products.
n We will utilize appropriate monitoring techniques
to ensure adherence to accepted standards.
Sonoco received a Civic Improvement Commendation from The
Garden Club of America in April 2015 for outstanding efforts that
enhance, protect or restore the local environment and improve the
community. The Civic Improvement Award to Sonoco states: “With
recognition to Sonoco of Hartsville, S.C., for their dedicated leadership
in conservation, sustainable
practices, innovative recycling
and passionate support of
community education.” The
Commendation was bestowed
by the Palmetto Garden Club of
South Carolina.
with applicable environmental laws and regulations. In those areas of the world where such
requirements are at a minimum, we will operate
in a completely responsible manner.
n We will utilize natural resources efficiently,
continuously seeking ways to reduce our
requirements. We will strive to maximize the
utilization of recovered materials in the products
we manufacture and use.
n We will minimize the generation of discharges
to the environment, including air emissions,
wastewater and solid waste.
n We will support the development of scientific
knowledge relating to environmental matters
and implement appropriate new technologies to
improve our environmental performance.
n We will proactively assist our customers in
addressing environmental issues related to their
use of our products.
n We will communicate openly with our stakeholders concerning our environmental record.
n We will cooperate with public and governmental
organizations to seek responsible solutions to
environmental needs and to develop effective and
balanced environmental standards.
E N V I R O N M E N TA L S T E W A R D S H I P
The Recycling Partnership has awarded the City of Columbia,
S.C., its first public grant, in the amount of $300,000. The
project, which has also garnered city and state funding, will bring
96-gallon recycling roll carts to 34,000 Columbia households,
increasing the potential volume of recovered recycled materials
directed to Sonoco’s state-of-the-art materials recovery facility
(MRF) by 500%. Sonoco has worked with Columbia and area
communities for more than 20 years, operating the Columbia
MRF to supply fiber-based materials to our paper operations.
n We will conduct operations in full compliance
11
S O N O C O 2 0 1 4 - 1 5 C O R P O R AT E R E S P O N S I B I L I T Y R E P O R T Sonoco is a founding member
of the Recycling Partnership,
a non-profit organization that
works to improve recycling in
the United States by encouraging residential recycling. The
Partnership uses public-private partnerships to help local
governments increase resident participation and tonnage
collected.
Stewardship
The carbon neutrality of biomass
harvested from sustainably
managed forests has been
recognized by an abundance of
studies, agencies, institutions
and legislation around the
world, including the guidance
of the Intergovernmental Panel
on Climate Change and the
reporting protocols of the United
Nations Framework Convention
on Climate Change. Sonoco
has more than 50,000 acres of
sustainably managed forests
in South Carolina, which it
harvests primarily for pulp for
papermaking. The Company
also repurposes approximately
400,000 tons of regional wood
wastes and residuals to fuel our
Hartsville biomass cogeneration
operations—and we are one of
the largest recyclers of paper in
the Southeast U.S., which reuses
valuable resources to make
recycled paper.
Key Environmental Metrics
% Improved
Since 2009
Total Energy Usage
MMBtu
4.18 16,006,485
16,705,254
(4.77)
Energy Usage (normalized)*
MMBtu/mtonnes
6.29 3.3075507
3.529499981
11.78
12
Direct Emissions (Scope 1)
mtonnes CO2/ton
21.09 539,827
684,113
21.24
Indirect Emissions (Scope 2)
mtonnes CO2/ton
(3.38)
621,022
600,732
16.85
Total Greenhouse Gas Emissions (GHG)
mtonnes CO2
9.65 1,160,849
1,284,845
9.85
Direct Emissions (Scope 1) (normalized)
mtonnes CO2/ton
0.23 0.1115489
0.144539965
33.60
Indirect Emissions (Scope 2) (normalized)
mtonnes CO2/ton
(1.11)
0.1283 0.126923157
12.70
Total GHG Emissions (normalized)*
mtonnes CO2e/ton
11.64 0.2399 0.271463122
23.87
Total Landfill Disposed
mtonnes
(7.55)
174,367
162,132
(17.57)
Landfill Disposed (normalized)*
mtonnes/mtonnes
(5.18)
0.0360 0.0343
0.71
Total Water Usage
m3
35.28 20,002,362
30,906,114
29.64
Water Usage (normalized)*
m3/mtonnes
36.70 4.1332514
6.529869511
40.59
Shipped Production
mtonnes
2.25 4,839,377
4,733,037
18.42
S O N O C O 2 0 1 4 - 1 5 C O R P O R AT E R E S P O N S I B I L I T Y R E P O R T Key Metrics
Unit % Improved 2014 2013
E N V I R O N M E N TA L S T E W A R D S H I P
ENVIRONMENTAL
Awards and Accolades
Sonoco recognizes our responsibility
to address the challenges of global
climate change. We are committed
to measuring and reporting our
greenhouse gas (GHG) emissions,
energy and water consumption and
waste generation in our operations
around the world.
We are meeting our responsibility by
developing innovative new processes,
and by identifying and managing risks
and opportunities to our raw materials
inputs, operations, employees,
suppliers, customers and products.
We are focused on reducing energy
usage at our uncoated recycled
paperboard mills by maximizing energy
efficiency through targeted investments
and initiatives, as well as reducing other
air emissions, water usage and landfill
wastes, and we encourage our vendors,
partners and contractors to do the same.
In 2014, Sonoco found a way to avoid sending
14,600 cubic yards per year of paper mill wastes
to landfills, reducing costs and generating
revenue. At our Hartsville manufacturing complex, our new TANA shredder separates plastic
and metal material from pulper wastes to be
recycled. In addition to saving about $600,000
by eliminating dependence on off-site landfills,
we are able to generate an additional $120,000
in revenue by selling recovered steel to a local
recycler. Recovered plastics are further processed and used as a supplemental boiler fuel.
Dow Jones
Sustainability
World Index for 2014/15, our sixth
consecutive listing
n Constituent of the MSCI Global
Sustainability Index Series
n Named one of the Top 25 Most
Sustainable Companies, and
listed as No. 1 in South Carolina,
by the Southeastern Corporate
Sustainability Rankings developed
by Green Business Works
n Received a Civic Improvement
100 Best Corporate
Citizens for 2015
by Corporate
Responsibility magazine
E N V I R O N M E N TA L S T E W A R D S H I P
Sonoco’s Approach to Climate Change
n Listed in the
n Named one of
13
Commendation from the Garden
Club of America (2015)
n Named one of
America’s 100
Most Trustworthy
Companies by
Forbes magazine
n Named one
of the 25 Top
Companies for
Leaders in North
America by Aon Hewitt
n Received Sherwin-Williams’
Certified Supplier Award for the fifth
consecutive year
S O N O C O 2 0 1 4 - 1 5 C O R P O R AT E R E S P O N S I B I L I T Y R E P O R T After a $75 million investment
replaced two aging, coal-fired
boilers at our paper mill in
Hartsville, S.C., Sonoco is
now repurposing 400,000
tons of waste materials from
logging operations every
year to fuel its new biomass
boiler. The biomass material
that fuels the plant consists
primarily of tree limbs, wood
wastes and residues created
by commercial logging activities. By converting this material to fuel, Sonoco is creating an
additional income stream for local landowners and logging operations. The new boiler has
increased our energy efficiency to 72%, while reducing GHG emissions by 65% over the
past five years. Savings from improved efficiencies, lower fuel costs and increased power
generation totaled $8.5 million in 2014.
Responsibility
SOCIAL
SAFETY PERFORMANCE
recordable injury rate
.84 .85
.75
.63 .55
.44 .47 .44 .41
.35
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Improved
total diversity
representation
for 13 consecutive
years within
Sonoco’s U.S.
salaried workforce.
13
Sonoco has
commited
$5 million
through the
TEACH
Foundation
to close the
achievement gap
in Hartsville’s
public schools.
We also believe that we have an inherent
responsibility to help improve the quality of
life in the communities in which we serve. The
Sonoco Foundation, Sonoco’s philanthropic
arm, donated more than $2.8 million to nonprofit
organizations around the world in 2014. Our
employees contributed time, funds and talents
to a multitude of worthy causes, including
volunteering, serving on boards, raising funds
and participating in other civic-oriented projects.
The PBS documentary
180 Days: Hartsville aired
nationally in March 2015.
The acclaimed documentary focuses on
the lives of educators,
families and business
leaders working hard to improve education for
children below the poverty line in Hartsville, S.C.
Sonoco is investing $5 million through the TEACH
Foundation to close the achievement gap in
Hartsville’s public school system, and Hartsville
now boasts a 92% graduation rate.
Sonoco understands diversity is foundational to the
success of our Company. Sonoco’s Diversity Council, which has been in existence since 2003, is led
by a senior executive and consists of six sub-groups
designed to aid in the recruitment, recognition and
representation of diverse groups throughout the
organization. From Recruitment and Networking
teams, to our Work/Life Management, Cultural
Awareness, Young Professionals and Veterans
teams, Sonoco’s workforce reflects our global customers—be it by gender, ethnicity, class, culture,
sexual orientation or thought.
SOCIAL RESPONSIBILITY
2.8
Sonoco was founded in 1899 on the belief that
People Build Businesses. We value our people
and are committed to giving them every
opportunity to use their talent, skills, passion
and creativity to grow themselves, their careers
and our Company.
14
S O N O C O 2 0 1 4 - 1 5 C O R P O R AT E R E S P O N S I B I L I T Y R E P O R T The Sonoco
Foundation
donated more
than $2.8 million
to nonprofit
organizations
around the
world in 2014.
photo by Angela Stallings
On Wednesday, May 20, Sonoco joined companies
across the U.S. to participate in the Unilever
Sustainable Living Plan and take part in helping
to improve the health, well-being and lives of
those in our local communities. Representatives
from the Sonoco Green Team and Sonoco Cares
worked in the Hartsville Community Garden, which
provides food to agencies that serve the homeless
and medically needy in our community. This year,
we are trying to beat our 2014 record of donating
1,020 pounds of food.
Education
$2,270,211
$347,070
Cultural and
Civic, Other
$228,454
Sonoco celebrated its
116th birthday on Saturday,
May 9, 2015, by hosting
its second annual Birthday
Dash 5K run at its
corporate headquarters
in Hartsville, S.C., U.S.
Proceeds from the race
allowed Sonoco to donate
$9,000 to Habitat for
Humanity.
photo by Angela Stallings
15
Sonoco donated $15,000 to the American
Red Cross to help with disaster relief
following the devastating earthquakes that
affected Nepal in April of 2015. Sonoco
employs many Nepalese citizens in its
Malaysian plants, many of whom were
affected by these natural disasters—some
losing family members and homes. Some
colleagues of those affected set up a way
for Sonoco employees around the world
to donate money directly to the affected
Sonoco employees, and these efforts
raised nearly $7,000.
S O N O C O 2 0 1 4 - 1 5 C O R P O R AT E R E S P O N S I B I L I T Y R E P O R T $2,845,735
The Cascades Sonoco facility in Tacoma, Wash., was
awarded a Star Level certification in connection with
OSHA’s Voluntary Protection Program (VPP), which
recognizes exemplary worksites that have achieved
injury and illness rates at or
below the national average
in their industry. According to OSHA, the average
VPP worksite has a lost workday incidence rate
at least 50% below the average of its industry
peers. Cascades Sonoco is a 50/50 joint venture
established in 1992 to bring together strong
technology platforms for the coating and lamination
Social Welfare
of industrial papers and other substrates. It has four
and Health
locations: two in the U.S. and two in Canada.
SOCIAL RESPONSIBILITY
SONOCO FOUNDATION
2014 CASH CONTRIBUTIONS
Responsibility
SOCIAL
Major Gifts
Organization
2014 Gift ($)
ALS Association
$1,500
n American Heart Association
10,000
n American Legion
2,400
n American Red Cross
40,000
n Black Creek Arts Council
30,000
n Black Creek Land Trust
5,000
n Boy Scouts of America
15,000
n Boys & Girls Club
17,500
n Charleston Symphony Orchestra
35,000
n City of Hartsville
50,000
n Clemson University
38,000
n Coker College
600,000
n Community Development Grants
318,000
n Community Foundation
14,096
for a Better Hartsville
n Darlington County Disabilities 6,700
Foundation
n Darlington County Progress
10,000
n Florence-Darlington Technical College
2,500
n Francis Marion University
15,000
n Free Medical Clinic of Darlington County
2,500
n Girl Scouts
10,000
n Habitat for Humanity
8,500
n Hartsville Christmas in April
20,000
n Hartsville Community Center
15,000
n Harvest Hope Food Bank
30,000
n Junior Achievement
6,500
n Kalmia Gardens
5,000
n New Carolina
5,000
n North Carolina A&T State University
8,400
n North Eastern Strategic Alliance
25,000
n Pee Dee Coalition Against Domestic
20,000
and Sexual Assault
n Salvation Army
5,000
n South Carolina Governor’s School 425,000
for Science and Mathematics
n SNAP of Hartselle
1,000
n Sonoco Scholarships
205,000
n South Carolina Chamber of Commerce
3,500
n South Carolina Independent Colleges 25,000
and Universities
n TEACH Foundation and Public School Gifts 919,651
n Trees for Tomorrow
4,000
n United Negro College Fund
12,000
n United Way
110,600
n Wexner Center Foundation
10,000
n YMCA65,000
n
SOCIAL RESPONSIBILITY
Now in its third year, the local Scoutreach Division of the Boy Scouts
of America has helped more than 105 boys in grades 5K through fifth
grade gain leadership skills. Scoutreach is the BSA’s commitment
to making sure that all young people have an opportunity to join
Scouting, regardless of their circumstances, neighborhood, or ethnic
background. Funded by Sonoco, Scoutreach teaches boys the integral
precepts necessary to become better leaders and citizens: building
character, developing values and accepting responsibility.
Coker College hosted a basketball
clinic for the Scoutreach program
at the new Harris E. and Louise H.
DeLoach Center. Coach
Schmotzer talked to the boys
about studying and staying in
school and about making good
choices. One of Coker’s basketball players talked about his
experiences as an Eagle Scout.
S O N O C O 2 0 1 4 - 1 5 C O R P O R AT E R E S P O N S I B I L I T Y R E P O R T 16
2015 Sonoco Supplier
Sustainability Awards
were granted to American
Packaging Company, AT&T,
Buckman International, Chep,
Staples and Xpedx for their
definitive leadership in various
sustainability categories, such as:
environmental policy; progress
in water, energy, emission and
waste disposal reduction; social
responsibility; and codes of
conduct for their suppliers.
Sonoco has launched a partnership with
ACF Enterprises, a Women’s Business
Enterprise Natinal Council (WBENC)-certified
training company, to launch a Supplier
Sustainability Engagement Initiative. The
goal of the initiative is to assist small firms
in developing a sustainability program by
providing guidance and access to powerful
learning tools, such as webinars, templates,
worksheets and online courses. As a result
of this partnership, Sonoco was awarded the
Sustainable Supply Chain Advocate of the
Year award by the City of Cincinnati.
SUPPLIER DIVERSITY SPENDING
percent of total company spend
7.5
7.7
7.8
8.8
8.8
5.4
2009
2010
2011
2012
2013
2014
The Greater Women’s Business Council recognized Sonoco with its
Top Corporation Award, which honors “leading companies that have
demonstrated a solid commitment and passion for engaging, inspiring
and empowering supplier diversity and procurement, and a demonstrated
track-record of leading and shaping futures by empowering women today.”
n American Forest and Paper
Association
n AMERIPEN
n Carbon Disclosure Project
n Composite Can and Tube Institute
n Ecodesk
n EcoVadis
n Environmental Education
Association of S.C.
n EPS Industry Alliance
n Flexible Packaging Association
n Forest Stewardship Council® (FSC®)
n Institute of Packaging Professionals
(IoPP)
n Institute of Scrap Recycling
Industries (ISRI)
n Material Handling Institute (MHI)
n National Association for Information
Destruction
n National Council for Air and Stream
Improvement
n National Minority Supplier
Development Council
n National Sustainability Coalition
n Paper Stock Institute (Chapter
of ISRI)
n PMMI, The Association for
Packaging and Processing
Technologies
n Programme for the Endorsement
of Forest Certification (PEFC)
n The Recycling Partnership
n Sedex
n Solid Waste Association of North
America
n Southeastern Recycling Coalition
n Southeastern Recycling
Development Council
n Sustainable Forestry Initiative®
(SFI®)
n Sustainable Packaging Coalition
17
S O N O C O 2 0 1 4 - 1 5 C O R P O R AT E R E S P O N S I B I L I T Y R E P O R T A key pillar of Sonoco’s belief system is a commitment
to always “do the right thing.” That principle guides our
teammates both inside and outside of work, and a
number of employees have proactively formed a volunteer group called
Sonoco Cares. These volunteers contribute their time and talents to give back
to the community in a number of ways. In the past year, their activities have
included spreading holiday cheer at an assisted living community, the
collection and delivery of holiday gifts for families in need, volunteer work at
an animal shelter and soup kitchen, litter clean-up in support of Keep America
Beautiful’s Great American Clean Up and participation in the March for Babies
supporting the March of Dimes. Sonoco Cares has already provided 208
volunteer hours to the community. Their hard work and selfless volunteerism
reflect the spirit and commitment of giving back that has been part of our
organization for more than 116 years.
SOCIAL RESPONSIBILITY
Memberships and Groups
Assessment
STAKEHOLDER ENGAGEMENT AND MATERIALITY
Stakeholder identification
We began by establishing nine stakeholder groups: customers,
suppliers, peers, shareholders, non-governmental organizations, community leaders, regulators/government, employees,
and leadership. To represent the interests of each group, we
selected individual stakeholders using methods appropriate
to the type of stakeholder. For example, the largest suppliers
by total spend represented the Suppliers group and the largest
customers by total sales represented the Customers group.
Identification of potentially material issues
We researched publicly available information for each stakeholder selected, compiling a list of sustainability issues from
various sources, including websites, annual reports, 10-K filings, corporate social responsibility reports, materiality matrices, mission statements and questionnaires. For this first year,
we did not directly contact stakeholders and relied solely on our
external research, which provided a sufficient understanding
of the necessary issues. However, the information available
from internal stakeholders, primarily employees, was limited
to social issues and did not adequately address economic or
environmental topics. Therefore, this year, our preliminary
issues list was limited to issues identified by external stakeholders. We plan to expand our employee engagement approach to
gather information on economic and environmental issues and
incorporate internal stakeholders in the future.
Determining issue significance and alignment
with GRI G4 aspects
Each issue identified was initially rated on a four-point scale
based on the perceived significance of the issue to the stakeholder. Issues which were not mentioned by the stakeholder in
the available sources were deemed unimportant to the stakeholder. Issues which were either mentioned in multiple public
sources or published by the stakeholder as organizational goals
or performance indicators, or listed as an issue of high impor-
tance in a materiality matrix, were scored on the higher end of
the scale. After rating the significance of each issue by stakeholder, we converted the issues into a common terminology
using the 46 aspects included in the economic, environmental
and social categories of the GRI G4 Reporting Principles and
Standard Disclosures. We then aggregated the ratings for each
aspect across the external stakeholder groups to calculate the
average rating of each issue by group.
Stakeholder prioritization
To help drive our focus to the most important issues, we
weighted each stakeholder group based on the group’s influence
and dependence on Sonoco. Highly influential stakeholder
groups are most able to impact Sonoco’s achievement of strategic objectives. Highly dependent stakeholders groups are more
positively or negatively impacted by Sonoco’s operations. Each
stakeholder group was assigned a relative influence and dependency score based on a three-point scale, giving their aggregated aspect ratings greater or less importance.
Management review and determination
of material aspects
Sonoco management, through the Corporate Sustainability
Council, assessed the significance of each aspect to Sonoco’s
business objectives. The Council is comprised of leaders from
across the company, including but not limited to: Investor
Relations, Internal Audit, Global Sustainability, Global Technology, Marketing and Innovation, Global Environmental
Services, Human Resources, Corporate Communications and
Consumer Packaging. Management convened a workshop to
review and rate the 23 aspects determined most significant to
external stakeholders. The workshop participants rated each
aspect on a four-point scale based on the aspect’s significance
to Sonoco. An aspect’s significance was defined as the influence
it has on Sonoco’s capacity to achieve its business objectives.
At the end of the workshop, all the participants’ scores by
aspect were averaged.
For each aspect, the external stakeholder ratings and management’s average ratings were plotted on a graph with the y-axis
representing the significance of an aspect to external stakeholders and the x-axis representing the significance of an
aspect to Sonoco’s business. Aspects rated highly by both external stakeholders and management were considered to be material. The materiality matrix was reviewed and approved by
management.
We will build on this progress and
continue to refine the materiality
assessment process. Further development over the coming years will
include greater engagement with
our employees on sustainability
issues. Sonoco will continue to
proactively identify and manage
the economic, environmental and
social issues material to our
stakeholders.
S U S TA I N A B I L I T Y O V E R S I G H T
In 2014, Sonoco completed our first materiality assessment of
economic, environmental and social issues. Our quantitative,
stakeholder-driven approach identified and prioritized the
sustainability issues material to our company and our stakeholders. The analysis leveraged the Accountability AA1000
Stakeholder Engagement Standard, and identified issues were
aligned with the Global Reporting Initiative (GRI) G4
Reporting Principles and Standard Disclosures.
18
S O N O C O 2 0 1 4 - 1 5 C O R P O R AT E R E S P O N S I B I L I T Y R E P O R T Materiality process
Oversight
SUSTAINABILITY
Board of Directors
Employee and
Public Responsibility
Committee
members:
4
John E. Linville, Chair
Edgar H. Lawton III
John R. Haley
Blythe J. McGarvie
The purpose of the
Employee and Public
Responsibility Committee
of the Board of Directors
is to provide oversight
and guidance on social
and public policy issues,
including compliance
with governmental or other
regulatory requirements,
which may impact
business performance
and the investment
potential of Sonoco.
For more information on the Employee and Public
Responsibility Committee, visit
www.sonoco.com/corporategovernance
The Sustainability Council meets quarterly
and reports to, and is sponsored by, Sonoco’s
president and CEO. The Council reports on
Sonoco’s sustainability activities, biannually,
to the Board of Directors.
Sustainability Council members
n M. Jack Sanders, President and Chief Executive
Officer – Sponsor
n Roger Schrum, Vice President, Investor Relations
and Corporate Affairs – Committee Chair
n Vicki Arthur, Vice President, Global Protective Solutions
n Jeffrey DiPasquale, Division Vice President and General
Manager, Global Plastics
n Rodger Fuller, Vice President, Global Primary
Materials Group
n Allan McLeland, Vice President, Human Resources
Sustainability Council Objectives
n Identify and define those issues that are relevant to
Sonoco’s long-term sustainability and corporate citizenship
Establish meaningful long-term and short-term
sustainability objectives related to key areas of focus
and provide Sonoco’s Executive Committee with
recommendations and guidance on how to meet those
objectives
n
Recommend and establish new Company guidelines,
policies and processes to support areas of focus
n
Create and communicate a business case for corporate
sustainability
n
Provide recommendations for the Company’s
philanthropic efforts in support of overall corporate
sustainability objectives
n
n Larry Pattengill, Director, Global Environmental
Services
n Marty Pignone, Vice President, Global Operations
Support
n Bob Puechl, Vice President, Global Flexibles
n Laura Rowell, Manager, Global Sustainability
n Jeffrey Schuetz, Staff Vice President, Global
Technology, Consumer
n Graham Segars, Corporate Responsibility and
Community Affairs Specialist
n Marcy Thompson, Vice President, Marketing and
Innovation
n Jeffrey Tomaszewski, Division Vice President and
General Manager, Rigid Paper and Closures NA
n Garrin Traill, Director, Internal Audit
S U S TA I N A B I L I T Y O V E R S I G H T
PURPOSE
Corporate Sustainability Council
The purpose of the Sonoco Corporate
Sustainability Council is to provide oversight,
guidance and direction on social, community
and environmental issues that have potential
impact on the reputation and long-term
economic viability of the Company and our
stakeholders. Through our actions, we
contribute to the economic and social wellbeing of our stakeholders.
19
S O N O C O 2 0 1 4 - 1 5 C O R P O R AT E R E S P O N S I B I L I T Y R E P O R T T
Board of Directors
Employee and Public
Responsibility
Committee