Materiality assessment

Materiality is the process of determining relevant and significant focus areas for the company. For Elopak, this includes an assessment of to which extent various environmental, social and governance issues may impact the company and its stakeholders, as well as the environment and society.

Based on an established baseline, our materiality assessment is updated annually via internal and external stakeholders. Our engagement with various stakeholders is presented in the table below. Our material topics remain the same as last year, only slightly rephrased to fit standard terminology and our approach. These topics also form the structure of this report.

In 2022, Elopak conducted a climate risk and opportunity assessment based on the framework of the Taskforce on Climate-related Financial Disclosures (TCFD). The outcome of this is also included in the risk assessment presented in our Annual Report. We aim to strengthen our materiality assessment during 2023, further including the findings from various risk assessments into the matrix and thereby moving towards a double materiality, where financial impacts are included.

Context
Elopak works in accordance with the UN Sustainable Development Goals (SDGs). The 17 goals, with a total of 169 targets, cover key areas to ensure people can thrive and prosper on our planet. This fits well with Elopak’s global approach to sustainability and our vision: Chosen by people, packaged by nature.

Our approach to the SDGs forms the basis of our materiality assessment and includes the below evaluations, done in collaboration with key stakeholders:

  1. Which of the SDGs can our business and supply chain impact positively?
  2. Which of the SDGs can our business and supply chain potentially impact negatively?
  3. Which of the SDGs represent a risk to our business and supply chain if not successful?
  4. What will our company do differently in order to impact the SDGs positively?
  5. What is the potential indirect effect on other SDGs?

Based on these evaluations, we defined four key SDGs for Elopak. In this report, we report progress on the relevant targets for the below goals.

Goal 8: Decent work and economic growth

We create work for many people in our business and supply chain. Historically, we have had a strong focus on labor and ethical practices in our company. We now further increase this focus throughout our supply chain and build the skills and employability of our employees.

Goal 12: Responsible consumption and production

We are dependent on renewable natural resources, and the way we source fiber is a great opportunity for Elopak to contribute to sustainable forestry. We have targets for sourcing certified raw materials and helping improve recycling in all steps of our value chain.

Goal 13: Climate action

We take urgent action to combat climate change and its impact. Elopak is fully aware of our responsibility in the global increase of greenhouse gas emissions. We work to reduce our emissions from our operations and supply chain, and with ambitious Science-Based Targets in place, we commit to reducing our impact further.

Goal 17: Partnerships for the goals

We cannot achieve the SDGs working alone, and we have been working with suppliers and customers to reduce emissions and the use of raw materials. Strong international cooperation across value chains is needed to achieve the SDGs.

Stakeholders

Stakeholder engagement is an important part of a materiality assessment and helps us prioritize topics of key strategic importance. Engaging with partners and associations also provides valuable input and widens our horizons. Our engagement includes frequent contact with key stakeholders, and Elopak focuses on qualitative interviews rather than quantitative data. The table below shows the approach Elopak has taken towards stakeholders over the past years.
Key stakeholder groups
How we interact
Key topics and concerns
How we respond
Customers/retailers
• Frequent meetings and desk-studies of websites
• Structured interviews
• Raw material sourcing and potential negative impacts
• Recyclability and recycling
• Climate
• Innovative packaging
• Ensure use of renewable raw materials to reduce the stress on scarce and finite natural resources, as well as working to certify raw materials and verify all suppliers
• Ensure recyclable products and initiatives to increase recycling of products after use
• Reduce GHG emissions
• Innovate packaging to ensure offering of the most sustainable package
• Ensure sourcing of materials through sustainable supply chains
Suppliers
• Frequent meetings and desk-studies of websites
• Structured interviews
• Climate and decarbonization
• Forestry and biodiversity
• Recyclability and recycling
• Joint initiatives with suppliers to understand key risks and drivers, and projects to reduce GHG emissions across the value chain
• Joint initiatives on to understand risks and drivers, and ensure certification of raw materials
• Ensure recyclable products and initiatives to increase recycling of products after use
Shareholders/ investors
• Frequent meetings
• Systematic approach to ESG (Environmental, Social and Governance) issues
• Setting ambitious targets and reporting on progress
• Ensure a systematic approach through consistent work across all business units and benchmarking and reporting in line with relevant market standards
• Setting scientific targets with third party approval, and continuously improving our sustainability reporting
Financial institutions
• Frequent meetings
• Systematic approach to ESG (Environmental, Social and Governance) issues
• Setting ambitious targets and reporting on progress
• Ensure a systematic approach through consistent work across all business units and benchmarking and reporting in line with relevant market standards
• Setting scientific targets with third-party approval, and continuously improving our sustainability reporting
Employees
• Frequent meeting with different departments
• Surveys
• Frequent engagement through initiatives (e.g. continuous improvement)
• Safety
• Motivating place to work
• Environmental performance of the company
• Systematically work to improve safety and reduce injuries
• Systematically work to maintain and improve employees’ competence, development, and motivation
• Reduce GHG emissions internally and across the value chain
• Innovate packaging to ensure offering of the most sustainable package
Government/regulators
• Engagement through associations
• Desk studies
• Packaging related laws and regulations
• Waste, recycling and recyclability/design for recycling
• Climate and decarbonization
• Ensure recyclable products, advocacy and initiatives to increase recycling of products after use
• Reduce GHG emissions
• Maintain good collaboration with industry peers in various associations
NGOs and associations
• Frequent meetings
• Memberships with various organizations
• Structures interviews
• Transparency
• Biological resources
• Certifications
• Circular economy
• Climate
• Labor- and human rights
• Raw materials
• Responsible sourcing
• Ensure a systematic approach through consistent work across all business units and benchmarking and reporting in line with relevant market standards
• Ensure certification of raw materials
• Ensure recyclable products and initiatives to increase recycling of products after use
• Reduce GHG emissions across the value chain
• Ensure sourcing of materials through sustainable supply chains
Local communities around our main sites
• Various local engagement depending on site
• Sponsoring of various local activities
• Safety
• Good place to work
• Systematically work to improve safety and reduce injuries
• Systematically work to maintain and improve employees’ competence, development and motivation