Task Force on Climate-related Financial Disclosures (TCFD)

Investors, customers and regulators want to know how companies are adapting to a changing climate. Accordingly, we have implemented the recommendations set out by the Task Force on Climate-related Financial Disclosures (TCFD).

These recommendations are enabling us to identify and evaluate the potential risks and opportunities arising from climate change for our business model and respond accordingly.


Members of the BoardAudit Committee and Health, Safety, Environment and Sustainability (HSES) Committee maintain oversight of the Group’s approach to risk management, including climate-related risks. Risks are monitored as part of our standard operating processes to ensure that appropriate mitigations are in place as part of regular management reviews. Monthly Divisional meetings report risk mitigation methods and progress to the Board. Climate-related issues are assessed by the Health, Safety, Environment and Sustainability (HSES) Committee when reviewing and developing strategy, policies and planning. These are reported to Executive Management at both Group and Divisional level on an ongoing basis, providing updates on the delivery of plans. Progress against our targets for addressing climate-related issues, for example, carbon reduction and water stewardship is monitored by the Board as part of our regular sustainability reporting.


Our purpose is to redefine packaging for a changing world. Amongst other megatrends, such as technological breakthroughs and urbanisation, climate change is a force reshaping the world we live in, calling for rapid decarbonisation of the economy. Our customers demand ever greater performance from our circular packaging solutions, which limit emissions through a focus on reusability and recyclability. Our greatest climate-related transition risk is that we fail to meet the expected level of environmental performance in the design, use and disposal of our products, threatening our ability to respond to customer preferences that favour low impact packaging. The environmental performance of our packaging is driven largely by energy consumption during manufacture, which exposes the Group to regulation aimed at increasing the price of GHG emissions under the Emissions Trading Scheme (EU ETS), increasing our operating costs.

Our greatest opportunity therefore, is to minimise our exposure to increasing pricing of GHG emissions by lowering our emissions through improved energy efficiency and consumption of renewable energy. This not only reduces our exposure to increasing pricing of GHG emissions but also improves the environmental performance of our product. As this is strategically material, we have set a target to reduce our carbon emissions per tonne of production by 2030 against a 2015 baseline. We have developed a roadmap of investments that once implemented will improve the carbon performance of our highest emissions assets and are exploring the use of public-sector initiatives, partnerships and incentives to help fund the decarbonisation of our operations. This will improve the long-term resiliency of our energy supply, providing reliable, affordable and sustainable energy sources, reducing our exposure to legislation aimed at curtailing GHG emissions and improving the environmental performance of our product. Over the coming months, we will be undertaking analysis to review the resilience of our strategy, taking into consideration various climate-related scenarios. We expect to disclose the result of this analysis in 2021.

Risk Management

Climate-related risks can be divided into two categories: physical risk (e.g. changing weather patterns) and transition risk (e.g. evolving market trends).

Both types of risk are identified and assessed using a range of credible sources, for example, CDP, on an ongoing basis, evaluating the likelihood of occurrence and the estimated magnitude of resulting financial or reputational impact over short-term (current annual reporting cycle), medium-term (1-3 year) and long-term (3-10 year) horizons. This information is documented and based on these criteria, material risks are assessed in greater depth, considering our operations, supply chain, stakeholder expectations and regulation.

The Group Risk function assesses physical risk with support from our insurance partners FM Global. The decision of whether to mitigate, transfer, accept or control a risk is influenced by a range of factors, such as site location. Particular attention is given to locations considered strategic, prioritising the implementation of mitigation plans at locations of high added value. For example, a physical risk that we have identified is water scarcity due to changing weather patterns, which could impact some of our water-reliant operations. This risk is managed through the creation of water stress management plans for sites in water-stressed locations.

Transition risk is managed by the Group’s Sustainability Team, collaborating across functions to examine these risks, including their financial implications. Increasing GHG emissions pricing and changing market trends have been identified as the most material climate-related transition risks, taking financial impact and expected likelihood into consideration. Transitional and physical risks are identified, assessed and managed with other risks in the Group’s common risk language that is embedded in our Group Risk Policy and implemented through our Corporate Planning process. Every Division contributes to the identification and assessment of risks twice a year, using specific terminologies which includes clear descriptions, ratings, controls and trends.

Metrics and Targets

We disclose greenhouse gas emissions performance in our Annual Report and Sustainability Data Book, alongside other environmental performance metrics. Our CDP Climate Change response also provides further analysis of climate-related risks, opportunities and performance. We aim to reduce our CO2e emissions by 30 per cent per tonne of production by 2030, against a 2015 baseline. As outlined in our analysis of climate-related opportunities, we are delivering progress against this target through a combination of energy efficiency measures and switching to lower emission sources of energy, thus limiting our exposure to expected increases in pricing of GHG emissions under EU ETS.