SUSTAINABILITY REPORT 2019 - SCHUR Flexibles

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SUSTAINABILITY REPORT 2019 - SCHUR Flexibles
SUSTAINABILITY
REPORT 2019
SUSTAINABILITY REPORT 2019 - SCHUR Flexibles
“Shaping a Sustainable
Future Together”
SUSTAINABILITY REPORT 2019 - SCHUR Flexibles
PROSPERITY
                                           PURPOSE                                                                                      Resource Efficiency and Circular				      .68
                                             Governance			                            .32                                               Economy, Waste Volume and Treatment
                                             Stakeholder Involvement on			            .36                                               Transparency of Supply Chain, 				        .72

STATEMENT CEO.                               Sustainability Topics			                                                                   Social and Environmental Supplier
                                                                                                                                        Assessment

2019 saw flexible packaging suddenly going from
being a rather invisible commodity product to being
on media headlines. Plastics became a hot topic across
the world. The “Fridays for Future” movement is one
of the main drivers of the current spotlight on climate
change, with the very simple yet strong statements
that are shared by activists. Within this global plastics
movement, the flexible packaging industry was promi-
nently brought on stage. While “the industry” generally
had difficulties jumping into this dialogue at first, at
Schur Flexibles we saw and still see this development
as a valuable discussion in which we aim to proactively
and transparently contribute with facts and figures on
innovative packaging solutions.

One of the questions that still needed to be addressed
in 2019 was the core reason why flexible packaging
plays such an important role in supplying safely sealed
essential goods to people. Furthermore, the second
question that had to be answered was how these
flexible packaging solutions like ours help prevent food
waste and are the best option in terms of ecological
footprint. When addressing these topics, it is crucial
to have a holistic view on the issue and consider all as-
pects, just as with our company sustainability strategy
or with public discussions on climate change.

As we have already been taking so many steps in
making our business more and more sustainable, it now                      PEOPLE
becomes important to shed light on these actions and                         Gender Equality and Diversity               .42
proudly present our plans for the future. Hence, for                         Employee Participation                      .46
the first time ever, we are now publishing our Group’s                       Education and Training, Health and Safety   .50
Sustainability Report, providing a clear and transparent                     Mobility                                    .54
first analysis of where we stand, and publicly commit-                                                                                               PLANET
ting to how we will proceed on our journey.                                                                                                            Usage of Renewable Material, 				      .60
                                                                                                                                                       Ecological Footprint of Products
In our daily activities, at Schur Flexibles we commit                                                                                                  Greenhouse Gas Emissions, 				         .64
to an approach that follows the holistic 4P principles,                                                                                                Energy Consumption, Renewable Energy
focusing on Purpose while keeping People, Planet, and
                                          INTRODUCTION
Prosperity in mind. This means to consistently     focus
on "HOW we produce". To us, protectingForeword
                                             the packed                                             .6
goods is just as important as taking responsibility
                                            The Schur for
                                                       Flexibles Group				                          .10
the effects of our business on people along     the entire
                                            Our Group   Companies				                               .12
value chain – employees, consumers and        partners
                                            Our         – as and Our Products
                                                Value Chain                                         .14
well as on our environment.                 Schur Flexibles in Numbers 				                         .17
                                            Schur Flexibles and Sustainability – Our 5R Approach    .18
                                            Materiality Analysis				                                                           Appendix

                                                                                                                                                                                        INDEX
                                                                                                    .22                                                .76
                                            Methodology				                                         .28                        Glossary				            .82
                                            Structure of the Report				                             .29                        GRI Index				           .84
SUSTAINABILITY REPORT 2019 - SCHUR Flexibles
INTRODUCTION          PURPOSE   PEOPLE                 PLANET                 PROSPERITY             INTRODUCTION               PURPOSE                  PEOPLE                  PLANET                 PROSPERITY

     FOREWORD.
                                             2019 saw flexible packaging suddenly going from being        With regards to sustainability in our business, 2019 has     All in all, the core of our business is supplying people
                                             a rather invisible commodity product to being on me-         been an important year. Firstly, our expert sustaina-        with protected and safe essential goods on a daily
                                             dia headlines. Plastics became a hot topic across the        bility team worked with a clear focus on our products        basis, ranging from food to pharmaceuticals. When
                                             world. The current spotlight on climate change shows         and the regulatory framework. Secondly, both in 2018         considering the carbon footprint of packaging, flex-
                                             very simple, yet strong statements that are shared by        and 2019 the European authorities published new              ible packaging proves to be the best-in-class option
                                             activists. Within this global plastics movement, the         regulations affecting the long-term perspective of our       to protect these goods during transport, shelf life
                                             flexible packaging industry was prominently brought          business. Thanks to the hard work of our Sustainability      and storage – i.e. during their whole journey from the
                                             on stage. While “the industry” generally had difficulties    and R&D teams throughout the year, we were able to           producers to the consumers. Smart and innovative
                                             jumping into this dialogue at first, at Schur Flexibles we   adapt exceptionally fast and are the first amongst our       packaging solutions are those that equally prevent
                                             saw and still see this development as a valuable discus-     peers to offer a recyclable alternative in ten out of the    resource-damaging food waste, contamination, and
                                             sion in which we aim to pro actively and transparently       eleven market segments we serve. The fact that we            waste of goods. Most importantly, plastic is a valuable
                                             contribute with facts and figures on innovative packag-      listened to our customers and their needs along the          resource and material which guarantees protection
                                             ing solutions.                                               way was an immensely important success factor that           and safety in many fields – therefore we should aim
                                                                                                          allowed us to achieve this result.                           to keep it within a closed, circular system and ideally
                                             One of the questions that still needed to be addressed                                                                    should never let it be discarded.
                                             in 2019 was the core reason why flexible packaging           Furthermore, we are making sustainability and re-
                                             plays such an important role in supplying safely sealed      source-efficiency the core objective in every step           Today, we have 1.972 colleagues working for our
                                             essential goods to people. Furthermore, the second           of the production process. Working in the flexible           customers in 22 production sites across Europe, but
                                             question that had to be answered was how these               packaging industry means identifying, reflecting,            we still embrace a start-up type of management and
                                             flexible packaging solutions like ours help prevent food     implementing, and following sustainable business             leadership culture rather than that of a large industrial
                                             waste and are the best option in terms of ecological         solutions on a daily basis. In our sustainability strategy   player. This unconventional identity enables us to do
                                             footprint. When addressing these topics, it is crucial       we focus on 5 pillars. We call it our “5R” strategy with     things somehow differently – taking decisions more
     Michael Schernthaner                    to have a holistic view on the issue and consider all as-    Responsibility at its core. We take responsibility for our   quickly, concentrating on what really matters, and
     Chief Executive Officer                 pects, just as with our company sustainability strategy      products and our company, and we are committed to            pushing for sustainable innovation in every corner of
                                             or with public discussions on climate change.                sustainability. The remaining 4 pillars outline our fields   our house.
                                                                                                          of action: Replacement of conventional concepts
                                             As we have already been taking so many steps in              with new and alternative raw materials, Reduction of         Therefore, 2019 was also the time to kick-off a process
                                             making our business more and more sustainable, it            plastics while maintaining the highest product protec-       to rethink our purpose and value set at Schur Flexibles,
                                             now becomes important to shed light on these ac-             tion and processing quality, design for Recycling of         which later on shall lead to the joint development and
                                             tions and confidently present our plans for the future.      our solutions, and Renewal, meaning the use of sec-          definition of our Group identity in a cross-functional,
                                             Hence, for the first time ever, we are now publishing        ond-generation renewable raw materials.                      cross-country span of people from all corners of Schur
                                             our Group’s Sustainability Report, providing a clear and                                                                  Flexibles.
                                             transparent first analysis of where we stand, and pub-       All these efforts go together with our outspoken
                                             licly committing to how we will proceed on our journey.      commitment to the United Nations Global Compact              Adopting and implementing this holistic and solution-
                                                                                                          and our continuous support of this initiative and its 10     driven strategy will contribute to fostering a sustain-
                                             In our daily activities, at Schur Flexibles we commit        principles that we wish to renew. This entails setting       able and prosperous activity in Europe. This is not a
                                             to an approach that follows the holistic 4P principles,      precise objectives and communicating them trans-             sprint, but a journey, and it will be worth every mile.
                                             focusing on Purpose while keeping People, Planet, and        parently, for instance in accordance with the Global
                                             Prosperity in mind. This means to consistently focus         Reporting Initiative, the international widest accepted
                                             on “HOW we produce”. To us, protecting the packed            guidelines for sustainability reporting. We also aim to
                                             goods is just as important as taking responsibility for      further cultivate our partnerships by advancing our
                                             the effects of our business on people along the entire       agile innovation management and collaborating with
                                             value chain – employees, consumers, and partners – as        organisations who contribute to our shared goals, such
                                             well as on our environment.                                  as the Save Food initiative.

6.                                                                         SUSTAINABILITY REPORT 2019     SUSTAINABILITY REPORT 2019                                                                                               .7
SUSTAINABILITY REPORT 2019 - SCHUR Flexibles
INTRODUCTION             PURPOSE   PEOPLE                 PLANET                 PROSPERITY             INTRODUCTION             PURPOSE   PEOPLE                  PLANET                 PROSPERITY

                                                When it comes to sustainability, Schur Flexibles Group                                                  Over the last years, Schur Flexibles has developed a
                                                is a true front runner. This is thanks to the full commit-                                              profound knowledge about sustainable packaging.
                                                ment of the Group Operations team to minimise our                                                       We put great effort into the R&D of new products in
                                                organisation’s impact on the environment: we have                                                       order to fulfil our responsibility on the way towards
                                                identified several action streams and deployed them                                                     a circular economy. Not only have we developed a
                                                effectively across our production units; we aim to                                                      recyclable packaging solution in each of our food and
                                                minimise the amount of resources needed by working                                                      hygiene sectors – one year ahead of what we had
                                                intensively to ensure a responsible supply chain; and                                                   originally pledged – but we have already implemented
                                                finally, we have developed several initiatives to reduce                                                these sustainable solutions together with our customers.
                                                and manage waste as well as to reduce CO2e emissions.                                                   The innovative drive of our packaging solutions has
                                                                                                                                                        also been recognised by industry experts and our prod-
                                                Since transparency is the key to proof, let’s share                                                     ucts have received sustainability awards. The German
                                                some concrete examples:                                                                                 Packaging Institute awarded us with the Sustainability
                                                Concerning production, the management teams of                                                          Award for our recyclable FlexiClosere as well as the
                                                every production unit worked closely with the Group                                                     Gold Award for outstanding innovations in 2018.
                                                Operations team to define specific annual waste tar-
                                                gets. Thanks to the monthly tracking done by our KPI                                                    Being a leader in sustainability does not mean being
                                                dashboard, we clearly see a gradual waste reduction                                                     satisfied and accomplished after achieving the first
                                                across the business. The implementation of different                                                    results. We strive for a more holistic approach, which
                                                lean techniques and the full organisation’s attention                                                   means that we embed sustainability into our strategy
                                                to detail during all production stages have contributed                                                 and are now turning our complete value chain towards
                                                to this success. Residual waste is handled by segrega-                                                  it. Starting with our raw materials and leading up to the
     Juan Luís Martínez Arteaga                 tion and selective valuation, by engaging appropriate        Friedrich Humer                            close exchange with recyclers to open up new possibil-
     Chief Operating Officer                    suppliers and by providing a second life to most of the      Chief Sales Officer                        ities, existing solutions are being questioned, more and
                                                materials we can no longer use within our production.                                                   more processes are being aligned and it is our declared
                                                A team of experts supports this process within the                                                      intention to rethink our current behaviour.
                                                whole Group, with some of them focusing solely on
                                                the deployment of waste reduction techniques and                                                        Changing the way in which we behave is probably one
                                                follow-up.                                                                                              of the greatest challenges our society is facing, but it is
                                                                                                                                                        mandatory if we really want to create a sustainable fu-
                                                This team of experts, working with our Group Opera-                                                     ture. Choosing a holistic approach also requires joining
                                                tions team, also supports our so-called PIT Stop con-                                                   forces. It means being team players with all partners
                                                cept, solving a major challenge the flexible packaging                                                  along the value chain, from suppliers to customers and
                                                industry is facing. Due to the large variety of designs,                                                beyond to achieve even greater results.
                                                the effective utilisation of our means of production                                                    We collaborate with relevant institutions such as
                                                is limited. This means that during a significant part of                                                CEFLEX, SaveFood or the startup Recyda and we
                                                their productive time, our machines are standing still                                                  choose partners who will accelerate our journey
                                                and being adjusted for the next order. To tackle this                                                   towards a circular economy.
                                                industry-specific problem, at Schur Flexibles we have
                                                developed a structured concept that minimises the                                                       Sharing our beliefs about a sustainable future does not
                                                change-over time by using SMED technologies.                                                            end at the consumption phase. We are also commit-
                                                This is a huge contribution to the reduction of energy                                                  ted to looking at the end-of-life options and valorising
                                                use and waste generation during set-up phases.                                                          our materials. We want to improve our surroundings
                                                                                                                                                        and therefore will change the way we are working and
                                                Following our Planning departments, we have imple-                                                      behaving in our daily life.
                                                mented a controlled Freeze Process within our produc-
                                                tion, leading to a significant reduction in the number of
                                                days of dispatch. Today, our trucks drive perfectly load-
                                                ed across Europe, resulting in lower CO2e emissions.

                                                These are only three examples, but our Sustainability
                                                Report provides more transparency on further initia-
                                                tives we have implemented to contribute to our front
                                                runner position in sustainability.

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SUSTAINABILITY REPORT 2019 - SCHUR Flexibles
INTRODUCTION               PURPOSE                  PEOPLE                  PLANET                 PROSPERITY            INTRODUCTION                      PURPOSE                   PEOPLE                        PLANET                    PROSPERITY

      THE SCHUR FLEXIBLES GROUP.                                                                                                                                               CHIEF EXECUTIVE OFFICER

      Headquartered in Wiener Neudorf, Austria, the Schur         OUR MISSION
      Flexibles Group is specialised in innovative, high-         All our employees are motivated to go the extra mile
      quality, and tailor-made packaging solutions for food,      to find and adopt new approaches in the packaging                               Chief                          Chief                      Group
      tobacco and pharmaceutical industries. We have a fully      industry. We all work to achieve this challenging mis-                           Sales                        Operating                  Finance
      integrated value chain, from extrusion via print and        sion and strive to subsequently meet our customers’                             Officer                        Officer                   Director
      lamination, to extensive bag and pouch production,          demands while also becoming a technological leader.
      making us one of the top European companies in the          Our international, multifaceted orientation, supported
      industry.                                                   by continuous learning, helps us to achieve this.
                                                                  Schur Flexibles’ employees stand out for their pas-              Heads of SU              Head of Group
                                                                                                                                                                               Regional Head
                                                                                                                                                                                                         Head of Group
                                                                                                                                                                                                                                   Finance
                                                                                                                                                                                                                                                        Head of Group
      Founded in 2012, Schur Flexibles Group is quite a           sion, entrepreneurial spirit as well as for their strong      Protein and Cheese           Operational                                 Controlling &                                Legal & Regulatory
                                                                                                                                                                               of Converting                                       Director
                                                                                                                                 (West and East)                Sales                                      Reporting                                        Affairs
      newcomer – but nonetheless well-experienced. Our            accountability. They identify and take opportunities
      Group companies are established players across Eu-          geared to market requirements, for the benefit of our
      rope: specialised, flexible, and fast. We don’t just keep   customers and consequentially for the benefit of the             Head of SU
                                                                                                                                                            Head of Group
                                                                                                                                                                                  Head of           Manager Planning
                                                                                                                                                                                                                                Senior Manager
                                                                                                                                                                                                                                                           Head of
      up with the market, but rather we set the bar higher by     company.                                                                                      Sales                                                           M&A & Project
                                                                                                                                    Exports                                      Extrusion            & Forecast                                           Group IT
                                                                                                                                                            Coordination                                                         Management
      defining direction and speed. We break new grounds.
      In short: we are creatively shaping change in the pack-     OUR CORPORATE VALUES
      aging industry and providing new momentum. This is          This is what we care about!                                      Head of SU
                                                                                                                                                              Head of            Head of                 Head of IFRS             Head of               Head of Group
      the spirit which has nurtured our rapid growth in the       • Expertise: The Schur Flexibles Group can tap into a                                        Group              Group                  Competence                Group                   Human
                                                                                                                                    Tobacco
                                                                                                                                                            Sustainability     Procurement                 Center              Communications             Resources
      past years.                                                   huge pool of knowledge and experience. This opens
                                                                    new perspectives, saves resources, and gives us a
      Schur Flexibles has a track record of successfully            competitive edge.                                               Head of SU
                                                                                                                                                            Head of Group
                                                                                                                                                                               Head of Group
                                                                                                                                  Confectionary                                 Operational                   Tax
      acquiring and integrating renowned players in the           • Reliability: For a company to be able to grow, the                                       R&D Food                                       Manager
                                                                                                                                   and Hygiene                                  Excellence
      European market, especially since 2016 when Lindsay           trust in this company must be able to grow, too.                                                                                                                                          LEGEND
      Goldberg secured ownership of our dynamically grow-           This is equally beneficial for our customers and our
      ing Group. The companies we are pooling are techno-           employees.                                                     Head of SU               Head of Group      Head of Group
                                                                                                                                                                                                                                                             Board
      logical leaders in their respective markets – they have     • Sustainability: Ecological and economical sustaina-             Pharma                   Marketing          Engineering
      proven expertise, often successfully covering market          bility as well as socially responsible behaviours are key                                                                                                                    Non Board Member
      niches, and have managed to build an excellent repu-          to our work. This is our basis to be able to implement
      tation over the decades. This is what makes them our          our ambitious plans.                                           Head of SU
                                                                                                                                                        Head of Business
                                                                                                                                                                               Head of Group
                                                                                                                                                                                                                                                  Line Management
      Centres of Excellence.                                      • Pioneering spirit: We are staying curious and remain                                 Development
                                                                                                                                     Films                                     Supply Chain
                                                                                                                                                          Fresh Food
                                                                    open to new solutions, being flexible and adventurous.                                                                                                               Group Support Functions
      OUR VISION                                                    This is the only way to break new grounds and achieve
      The flexible packaging market is characterised by             the maximum for our customers and for our Group.               Head of SU
                                                                                                                                                                               Head of Group                    Sustainability is under the CSO’s office and all the
      continuous technological developments and increasing        • Ambition: Being good is not enough for us. We strive                                                        Health and              decisions regarding sustainability are taken by the Head of
                                                                                                                                 Tea and Coffee
                                                                                                                                                                                  Safety
      customer requirements. We are ready to face all chal-         to achieve top performance by reaching our full po-                                                                                        Group Sustainability and then approved by the CSO
      lenges, leveraging our experience, our expertise, and         tential and always exceeding our own expectations.
      our enthusiasm to always provide our customers with         • Anticipation: Recognising customer requirements
      best-in-class solutions. We consider ourselves pioneers       and problems at an early stage and drawing the right
      and lateral thinkers, breaking new grounds by convic-         conclusions – this is our mission and our task, and the
      tion to optimise solutions.                                   foundation for solutions.
                                                                                                                                   RETHINKING SCHUR FLEXIBLES

                                                                                                                                   In late 2019, Schur Flexibles initiated the process             2020, leading to a Group-wide stream of joint work
                                                                                                                                   of redefining the Group’s core purpose and value                on the future purpose of the organisation. This
                                                                                                                                   set through the comprehensive corporate initia-                 jointly developed identity will give Schur Flexibles
                                                                                                                                   tive “ReThinking Schur Flexibles”. This collaborative           Group a strong basis for further growth, bringing
                                                                                                                                   journey was kicked-off with management teams                    the necessary visibility to the innovative and dy-
                                                                                                                                   across Europe in 2019 and will be continued in                  namic spirit of the organisation.

10.                                                                                              SUSTAINABILITY REPORT 2019                                                                                                                                                .11
SUSTAINABILITY REPORT 2019 - SCHUR Flexibles
INTRODUCTION              PURPOSE                 PEOPLE                 PLANET                PROSPERITY

      OUR GROUP COMPANIES.
      Today we run 22 production sites – our Centers of Excellence – across 11 European countries. Our core strategy
      was and is to carefully acquire and integrate selected expert players in the European market into our operations.
      Our continuous collaboration with all our companies, most of which were family-owned, is a proven success story.
      Through reliable and agile partnerships, we leverage their strengths with our Group’s capabilities and network,
      hence helping them to maintain their excellent reputation.

      LEGEND

          Headquarters

          Centers of Excellence

          Clients

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SUSTAINABILITY REPORT 2019 - SCHUR Flexibles
INTRODUCTION                          PURPOSE                      PEOPLE                      PLANET                     PROSPERITY           INTRODUCTION               PURPOSE               PEOPLE                  PLANET                PROSPERITY

      OUR VALUE CHAIN
      AND OUR PRODUCTS.                                                                                                                               OUR PRODUCTS.
      From the sourcing of raw materials to production, printing, refinement, lamination, and converting, individually or                             Schur Flexibles offers an extensive portfolio for effi-   can be individually designed and tested to simulate
      as a package – we have developed a one-stop-shop under the roof of the Schur Flexibles Group. Our fully vertical                                cient and safe packaging. Continuous technological        and optimise the packaging process required by the
      integration makes us a leading pan-European provider of customised flexible packaging products and specialty                                    innovation and a willingness to create tailor-made        customer. Our product portfolio consists of efficient
      solutions. 22 Centers of Excellence, each of which a technological leader in its respective market, cover all the                               solutions for individual requirements makes us pioneers   mono materials as well as sophisticated and functional
      steps of the flexible packaging solutions value chain. This puts us in an advantageous position to drive innovation                             in the field of flexible packaging. With our compre-      laminates for high-performance sealing and barrier
      for sustainable solutions in flexible packaging.                                                                                                hensive range of packaging customised to individual       protection for products. Since 2018, we have been
                                                                                                                                                      requirements, we offer our customers the convenience      primarily developing sustainable packaging solutions
      HOW WE WORK                                                                                                                                     of receiving a complete set of solutions from a single    with a strong focus on resource-saving and recyclable
      Schur Flexibles is an integrated film and packaging                                                                                             provider. Doing so, we also provide the opportunity of    materials. We can already offer a wide range of differ-
      material producer:                                                                                                                              hands-on collaboration to solve future challenges.        ent sustainable as well as recyclable solutions for each
      • Extrusion: Raw material input is taken, melted to                          • Laminating: 2+ webs are taken and joined using a                 In the collaborative process, packaging solutions         product category.
        form the molten polymer into a shape with a contin-                          bonding agent. An adhesive is applied to the less ab-
        uous profile.                                                                sorbent web, and the other is then pressed against it.
      • Cylinder Engraving: Roto Cylinders are copper                              • Slitting: The large roll of material is cut into narrower        ALL TOGETHER, WE COUNT 15 MAIN PRODUCT CATEGORIES AND 65 DIFFERENT BRANDS
        plated and polished before being engraved. They are                          rolls suitable for the customer. The substrate web is
        then chrome-plated and finished with the desired                             unwinded and passed through blades before being
        printing image and surface roughness.                                        rewounded as a narrower roll.
      • Printing: An engraved cylinder (Roto, “cup”) or plate                      • Converting: Printed and laminated polymer webs are
        (Flexo, “bump”) with the desired pattern is immersed                         converted directly into bags, sleeves, pouches, or
        in ink. The substrate is then sandwiched between this                        other formats requested by the customer.
        cylinder and a roller to obtain the pattern. For some
        special applications, we can also print in UV Offset.

      Additionally, in a long-standing relationship (strategic partnership) with HP Indigo, we have successfully been                                        Films                 Form fill seal          Shrink              Aluminium foil             Coldseal
      ramping up our digital printing capacity and can now enable short run business to benefit from our high speed.

                                                   SCHUR FLEXIBLES PRODUCTS AND SERVICES

                                 EXPECTATIONS AND NEEDS                                                  EXPECTATIONS AND NEEDS                           Linear films                 Twist              Top films              Flow wrap              Bottom films

           SUPPLIER                       MANUFACTURING                                      LOGISTICS                       TRADE         CONSUMER

                                                         SOLUTION                                   SOLUTION

                                                         EXPERIENCE                                 EXPERIENCE

                                                                                                                                                              Skin             Bags and pouches          Die-cut lids              Wrap             Individually Wrapped
      Our Flexible packaging solutions support our
                                                                                                                                                                                                                                                         Slices Films
      customers throughout their chain of added value.
                                                                      LAWS AND REGULATIONS
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SUSTAINABILITY REPORT 2019 - SCHUR Flexibles
INTRODUCTION             PURPOSE                 PEOPLE                  PLANET              PROSPERITY            INTRODUCTION                    PURPOSE                     PEOPLE                        PLANET                  PROSPERITY

      OUR MARKETS.                                                                                                                          SALES BY REGIONS                                                SALES BY MARKET SEGMENTS

      With our innovative, premium quality and tailor-made    Our strongest market is protein and cheese (meat, fish,
                                                                                                                                          OTHER
      medium or high-barrier packaging solutions, we serve    poultry, dairy and cheese), which covers 36% of our                                         US,                                                 CONFECTIONERY
      eleven different market segments in the food, tobacco   sales, followed by confectionary, covering 22%. These                                       CA
                                                                                                                                  SOUTH                                D-A-CH
      and pharmaceutical industries. Our food division cov-   markets have a strong regional customer base and                      EAST                                                               OTHER                                    MEAT, FISH
      ers fresh as well as dry and frozen products.           almost 90% of our sales are in Europe.                                                 4%
                                                                                                                                  UK              5%                                                   FOOD             22%                     & POULTRY
                                                                                                                                            5%
                                                                                                                                                                                                 TOILETRIES

                                                                                                                                                                  29

                                                                                                                                                                                                                                         20
                                                                                                                                                                    %
                                                                                                                                                                                                 & HYGIENE

                                                                                                                                                                                                                                           %
                                                                                                                                       7%

                                                                                                                                                                                                                  %
                                                                                                                                                                                                              5% 5
                                                                                                                                     8%

                                                                                                                                                                                                              6%
                                                                                                                          NORDICS,                                                               PHARMA &
                                                                                                                               RU                                                                 MEDICAL

                                                                                                                                                                                                                                          %
                                                                                                                                       9%

                                                                                                                                                                                                                6%

                                                                                                                                                                                                                                          16
                                                                                                                                                                       %
                                                                                                                                                                  18                             SPECIALTIES          9%
                                                                                                                                                   15%                     SOUTH
             Meat, Fish                      Cheese                     Fruit                    Confectionery                    CEE                                      EUROPE                                               13 %
                                                                                                                                                                                                                 TEA                       CHEESE
             & Poultry                       & Dairy                & Vegetables                                                            BENELUX,                                                        & COFFEE                       & DAIRY
                                                                                                                                                  IR                                                                           TOBACCO

                                                                                                                                                                SCHUR FLEXIBLES IN NUMBERS IN 2019

                                                                                                                             496,8 million                                      82,8 million                                           3,46
            Frozen Food                     Dry Food               Bread, Biscuits                  Coffee                     Group revenue in Euro                            EBITDA (from continued                          Net debt / EBITDA
            & Ice Cream                     & Cereals                 & Cakes                       & Tea                                                                            operations)

                                                                                                                                          65                                             15                                            3,5%
                                                                                                                                    Number of                                        Number of                                  CAPEX/Sales: 3,5%
                                                                                                                                  product brands                                  product categories                             (excl. Cylinder)

                                                                                                                                       16,7%                                           488                                     239,1 million
              Medical                       Toiletries               Cigarettes                                                   EBITDA Margin                                       Number of                                 Purchasing volume
          & Pharmaceutical                  & Hygiene                & Tobacco                                                                                                   raw material suppliers                              in Euro

                                                                                                                                                                                                     RAW MATERIAL SUPPLIERS

                                                                                                                                          405                                         1.972                                            1.567
                                                                                                                                          Female                                         Total                                         Male

                                                                                                                                                                                 NUMBER OF EMPLOYEES

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SUSTAINABILITY REPORT 2019 - SCHUR Flexibles
INTRODUCTION                PURPOSE                  PEOPLE                      PLANET                  PROSPERITY             INTRODUCTION                PURPOSE                  PEOPLE                  PLANET                PROSPERITY

      SCHUR FLEXIBLES AND
      SUSTAINABILITY –
      OUR 5R APPROACH.
      At Schur Flexibles, we carry sustainability in our DNA.       who act as consultants both internally and externally.            RESPONSIBILITY                                                RENEWAL
      This means investing in continuous development to             They support us on our journey to shaping a sustain-              The first “R” is RESPONSIBILITY. We take responsibility       The RENEWAL pillar focuses on resource-saving and
      find solutions that keep our planet’s ecosystems in bal-      able future together and have made their way across               for our products and our company and are commit-              renewable raw materials. The resources of our planet
      ance. This is why we extensively invest in R&D of new         the jungle of legislations – all over Europe and beyond           ted to sustainability in our Group’s sphere of activity.      are finite and to keep our planet’s ecosystems in bal-
      sustainable packaging solutions. We have set up a ded-        – to help us provide the best service to our clients.             Still there are certain non-ecological elements in the        ance, we must guarantee the regeneration of materials
      icated sustainability team of experts in different fields,                                                                      flexible packaging production that, as yet, cannot be         removed from these systems. To ensure this, we focus
                                                                                                                                      avoided. Nevertheless, we aim to improve every day            on raw materials that do not overexploit our planet,
                                                                                                                                      with continuous R&D and strong cooperation with our           for instance using FSC-certified paper or substituting
                                                                                                                                      stakeholders.                                                 fossil fuel-based raw materials with renewable ones.
                            PACKAGING NEEDS TO FULFIL A WIDE RANGE OF REQUIREMENTS                                                    Responsibility is to be seen in three fields                  Our R&D team is continuously improving our renewa-
                                                                                                                                      • In society: we take responsibility for our employees,       ble materials portfolio.
                                                                                                                                        our customers and for society as a whole. We collab-          Polyolefins from renewable resources second genera-
                                                                                                                                        orate with social organisations, scientific institutions,   tion; Coated Paper Wrappers as Paper solution.
            PROTECT & PRESERVE                           ATTRACT & SELL                         INNOVATE & SAFEGUARD                    universities, municipalities, authorities, and govern-
                                                                                                                                        ment entities. We respect human rights and con-             REPLACEMENT
                                                                                                                                        demn child labour.                                          The REPLACEMENT pillar stands for our pledge to
           Protection of the product                 Offer attractive packaging                  Provide packaging materials          • In the environment: we strive to permanently reduce         replace all non-sustainable materials with more sus-
           against damage, dirt, light,          design, while providing important             that can be reduced, recycled or         our material consumption and optimise our pro-              tainable ones. We want to replace conventional materi-
             moisture, and oxygen;                 information on product usage,                replaced by materials made of           duction processes. We accelerate the use of more            als with new and innovative ones. This also includes the
                  safe storage                   ingredients, shelf life and disposal            renewable resources to take            sustainable input materials as much as possible. We         use of alternative input materials to reduce the amount
                                                                                             responsibility for our planet’s future     optimise existing processes and implement new ones          of plastic per packaging unit, while also considering
                                                                                                                                        both to reduce waste and resource consumption.              its recyclability. We also work to replace rigid packag-
                                                                                                                                      • In business: we strive to establish long-term, sustain-     ing with flexible packaging and to replace packaging
                                                                                                                                        able partnerships with our customers and suppliers.         concepts with new innovative ones using less material
                             OUR SUSTAINABILITY STRATEGY IS BASED ON A 5R APPROACH                                                      We support the use of innovative new raw materials,         while keeping the same high level of protection.
                                                                                                                                        intelligent technologies, and sustainable equipment.          Replacing PS with E-base, a PP based film or replacing
                                                                                                                                                                                                    common PET or PA composite material solutions with the
                                                                                                                                      REDUCTION                                                     fully recyclable PP flow pack solution MonoFlowre
                                                                                                                                      The REDUCTION pillar addresses the need to invest             for fresh food.
                                     REDUCTION                                          REPLACEMENT
                                                                                                                                      in innovative research to develop thinner, light-weight
                                                                                                                                      films to reduce the amount of input material used in          RECYCLING
                                                                                                                                      the production process. Obtaining these reductions            In order to get the most out of the raw materials in-
                                                                                                                                      requires a high level of technical expertise, specifical-     vested into the production of packaging films, we want
                                                                                                                                      ly considering that we can make no compromise on              to keep them in the loop by making them RECYCLA-
                                                                                                                                      product protection. This pillar does not only result in       BLE. With “Design for Recycling” we offer packaging
           RESPONSIBILITY                                     RENEWAL                                            RECYCLING            a reduction in material use, but also in a reduction of       solutions to the different markets that can be recycled
                                                                                                                                      packaging weight and volume which leads to smaller            according to applicable laws and standards. We invest
                                                                                                                                      storage space requirements and fewer transport loads.         greatly in R&D of flexible mono and polyolefin mate-
                                                                                                                                         SuperThin, the world’s thinnest laminate films.            rials to make the recycling process easier, therefore
                                                                                                                                                                                                    supporting a circular economy. Already today, we are
                                                                                                                                                                                                    able to offer a recyclable alternative for each of our
                                                                                                                                                                                                    consumer goods markets.
                                                                                                                                                                                                      Our ready to recycle PE-based skin and shrink films
18.                                                                                                    SUSTAINABILITY REPORT 2019     SUSTAINABILITY REPORT 2019                                    and the awarded FlexiClosere solution.                  .19
INTRODUCTION               PURPOSE                 PEOPLE                 PLANET                PROSPERITY

                        WE ARE INTER ALIA MEMBER OF THE FOLLOWING INITIATIVES

                      WE ARE INTER ALIA MEMBER OF THE FOLLOWING ASSOCIATIONS

      ANTI-CORRUPTION

      Schur Flexibles is committed to promoting fair         We expect to make business decisions based on
      competition and fighting corruption. Schur Flex-       quality, service, and price.
      ibles adheres to all national and international        To ensure our position against corruption, we have
      anti-corruption laws, such as the United Nations       implemented a Code of Conduct (CoC), binding
      Convention Against Corruption (UNCAC). Bribery         for all our employees in all business units and pro-
      and accepting or granting benefits are forms of        duction sites, introduced a whistleblowing mecha-
      corruption. Corruption can occur in the private        nism and we provide regular compliance trainings.
      sector and vis-à-vis with public officials. Further,   The CoC is enforced within the company through
      corruption also includes the abuse of trust to gain    surveys and audits. Moreover, we hold one-to-one
      advantage without any legal justification, and in a    trainings with new employees who sign the CoC
      wider sense, the violation of general interest for     as part of the recruitment process. We have now
      personal advantage. We do not tolerate any form        introduced mandatory online trainings, with trace-
      of corruption anywhere in the world, whether it        ability. We provide tailored in-house or external
      involves a government official or business partner,    trainings for managers, depending on the topics
      or whether we buy or sell goods or services.           addressed.

20.                                                                                        SUSTAINABILITY REPORT 2019   .21
INTRODUCTION               PURPOSE                   PEOPLE                   PLANET                  PROSPERITY          INTRODUCTION                  PURPOSE                PEOPLE                       PLANET                   PROSPERITY

      MATERIALITY ANALYSIS.                                                                                                     STAKEHOLDER DIALOGUE.
      The materiality analysis displays the path through which the company identifies the most relevant topics in the           Pursuing a complete and credible sustainable develop-        to narrow down the list and engage with ten cate-
      context of its environmental, economic, and social responsibility. The material topics reflect the company’s im-          ment path requires continuous dialogue and discussion        gories in this first round of dialogues. To do this, we
      pacts and serve as a guide for determining future objectives, indicators, and strategies.                                 with our major stakeholders to identify and include          assessed them according to their impact on the Schur
      The heart of this analysis is the definition of the potential material topics and their positioning on the matrix.        their needs in our strategic development. Listening to       Flexibles Group and the intensity of our involvement
      The graph below offers an overview of the steps that have been completed:                                                 and giving a voice to interest groups that influence or      towards them. Furthermore, we made sure that all the
                                                                                                                                are influenced by the activities of a company is a very      involved groups were able to analyse both an internal
                                                                                                                                important principle, not only for the strategic benefit,     and external perspective. Thus, the stakeholder groups
                                                                                                                                but also in terms of risk management and added value         involved in the dialogue carried out in spring 2020 are:
                 ANALYSIS OF                     DATA COLLECTION BASED ON                           ANALYSIS OF                 generated through a stronger relationship.                   shareholders, financial service providers, employees,
                 STATUS QUO                            GRI INDICATORS                             IMPACT ON SDGs                                                                             clients, suppliers, new and future employees, retailers,
                                                                                                                                Being aware of the importance of this process, we            NGOs, media, recyclers and waste disposal organisa-
                                                                                                                                mapped the company’s main stakeholders and iden-             tions. Although consumers were assessed as a relevant
                                                                                                                                tified twenty interest groups. As we wanted to purse         group, due to organisational reasons we were not able
              COLLECTION AND ANALYSIS OF THE MAIN PROJECTS THAT CONTRIBUTE TO SUSTAINABILITY                                    a deep rather than a broad interaction, we decided           to initiate a dialogue with them in this first round.

                              IDENTIFICATION OF POTENTIALLY RELEVANT MATERIAL TOPICS

              ANALYSIS OF THE ECONOMIC, ENVIRONMENTAL, AND SOCIAL IMPACTS OF EACH MATERIAL
                                  TOPIC FROM AN INTERNAL POINT OF VIEW

               EXTERNAL EVALUATION AND VALIDATION OF MATERIAL TOPICS THROUGH STAKEHOLDER
                           DIALOGUES TO DEFINE THE RELEVANCE FOR STAKEHOLDERS

                                            VALIDATION OF MATERIALITY MATRIX

      1. First of all, we conducted an analysis of the status      4. These topics were then evaluated from an eco-
         quo, which gave us a rough overview about the                nomic, environmental, and social perspective. This
         actual sustainability performance in all our sites.          evaluation was conducted within the sustainability
         After, we started the first Group-wide data collec-          team, verified by the board, and signed off by our
         tion process based on the indicators of the Global           CEO, Michael Schernthaner.
         Reporting Initiative (GRI). Further, we analysed our
         positive and negative – current and future – impacts      5. The internal evaluation was completed with an ex-
         on the SDGs.                                                 ternal stakeholder dialogue. Each material topic was
                                                                      validated by our most relevant stakeholder groups,
      2. The first step gave us insights into existing projects       who were asked to assess the extent to which a
         within the company that contribute to the corporate          given topic could potentially influence their actions     Stakeholder
         sustainability development path.                             and decisions.                                            1. Shareholders                  7.    Retailers             12. Public authorities            17. Unions
                                                                                                                                2. Financial service providers   8.    Policy makers         13. Society                       18. Research
      3. By consolidating all information gathered in the first    6. All this resulted in our first materiality matrix.        3. Employees                           and legislators       14. Consumers                     19. Service providers
         two steps, we identified a list of 27 possible material                                                                4. Clients                       9.    NGOs                  15. Competitors                   20. Recyclers and waste
         topics.                                                                                                                5. Suppliers                     10.   Associations          16. Neighbours,                      disposal organisations
                                                                                                                                6. New and future employees      11.   Media                      local communities
22.                                                                                                SUSTAINABILITY REPORT 2019                                                                                                                               .23
INTRODUCTION               PURPOSE                  PEOPLE                 PLANET                 PROSPERITY            INTRODUCTION              PURPOSE                  PEOPLE                  PLANET                 PROSPERITY

                                                                                                                              SDGs IMPACT ANALYSIS.
      Given the exceptional situation resulting from the          This first experience of conducting stakeholder dia-        Our planet and humanity are facing important envi-          As a second step, we assessed the positive and nega-
      COVID-19 pandemic, all dialogues, conducted by              logues in this format has proved to be very positive.       ronmental, social, and economic challenges. In 2015,        tive impact – current and potential – we have on each
      external consultants, were performed online via a           The gathered information is very meaningful, and the        more than 150 world leaders from the United Nations         of the goals. Even though we are aware the goals are
      telecommunications software. Nevertheless, the              willingness and gratitude shown by all participants went    defined the SDGs to set priorities and aspirations to       deeply interconnected, they do not have equal rele-
      technological means used gave us the possibility to use     far beyond expectations. The constructive, open, and        respond to these challenges. The SDGs are a universal       vance for our company.
      different formats: so, while financial service providers,   transparent dialogue has motivated us to expand the         call for contribution from all levels. Each and every one
      NGOs, recyclers and waste disposal organisations were       process in the future, possibly implementing it on a        is asked to strive to achieve them. Globally, many gov-     As a result of the analysis, we identified that the Schur
      involved through personal interviews; employees –           regular and continuous basis.                               ernments and companies have started actively working        Flexibles Group has most impact on the following
      both newcomers and long term – took part in a focus                                                                     in line with the goals.                                     SDGs: 5, 8, 12, 13, 14, 15.
      group (4 groups altogether) and other interest groups       All collected inputs regarding the validation and the
      were consulted by means of a questionnaire.                 evaluation of the material topics are represented           We also want to contribute. Therefore, while preparing      The resulting image is helping us better understand
                                                                  along the vertical axis of the materiality matrix and the   our first Sustainability Report, we took the chance to      how we can contribute to the realisation of the goals
      The objectives of the stakeholder dialogue were, on         indications that emerged with respect to the additional     analyse our impact on the SDGs and how we relate to         and how we can integrate the SDGs into our future
      the one hand, to validate the potential material topics     questions were discussed and reflected with various         them as a company. As a first step, we studied each         strategic planning. The SDGs played an important role
      that emerged from the status quo analysis, the data         company departments. Further steps have been de-            goal in depth by studying its relevance, its single tar-    in the drafting of the material topics list that we vali-
      collection process and the impact analysis on the Sus-      fined for each of the stakeholder groups. A summary         gets, its current global situation, and its meaning on a    dated through the stakeholder dialogue process.
      tainable Development Goals (SDGs) and, on the other         of the results and next steps of each dialogue can be       corporate level.
      hand, to understand the stakeholders’ perception of         found in the appendix.
      the Schur Flexibles Group, their expectations, their
      interpretation of sustainability, and their assessment of
      opportunities and risks.

24.                                                                                                                           SUSTAINABILITY REPORT 2019                                                                                              .25
INTRODUCTION                 PURPOSE                 PEOPLE   PLANET   PROSPERITY
                                                                                                                           1.    EDUCATION AND TRAINING

                                                                                                                           2.    HEALTH AND SAFETY

                                                                                                                           3.    EMPLOYEE PARTICIPATION

      THE RESULT: OUR MATERIALITY MATRIX.                                                                                  4.    GENDER EQUALITY

                                                                                                                           5.    DIVERSITY
      Topics that overcome the threshold (set at 3) both
      from an internal and external perspective are consid-                                                                6.    GOVERNANCE
      ered as relevant for the company’s sustainable devel-
      opment, entering the list of Schur Flexibles Group’s                                                                 7.    GREENHOUSE GAS EMISSIONS
      material topics.
                                                                                                                           8.    ENERGY CONSUMPTION
      Each topic is reported on within this document with a
      description of the overall objective, its boundaries, the                                                            9.    RENEWABLE ENERGY
      management approach and the KPIs. This allows us to
      assess what has already been implemented at a strate-                                                                10.   MOBILITY
      gic and operational level and how we aim to reach each
      topic’s objective in the future. Additionally, we present                                                            11.   RESOURCE EFFICIENCY AND
      projects and business processes that reflect the oper-                                                                     CIRCULAR ECONOMY
      ative side of this strategic thinking. During the elabora-
      tion process, it became clear that some material topics                                                              12.   WASTE VOLUME AND TREATMENT
      are strongly interconnected with one another and we
      therefore decided to group them and not report on                                                                    13.   STAKEHOLDER INVOLVEMENT ON
      them singularly.                                                                                                           SUSTAINABILITY TOPICS

      Topics below the threshold are not included in this                                                                  14.   TRANSPARENCY OF SUPPLY CHAIN
      report. However, there are topics that could poten-
      tially play a relevant role in the future and we intend to                                                           15.   SUPPLIER ENVIRONMENTAL ASSESSMENT
      update and evaluate the materiality analysis on a yearly
      basis.                                                                                                               16.   SUPPLIER SOCIAL ASSESSMENT

                                                                                                                           17.   USAGE OF RENEWABLE MATERIAL

                                                                                                                           18.   ECOLOGICAL FOOTPRINT OF PRODUCTS

                                                                                                                           19.   SOCIAL POLICIES AND BENEFITS

                                                                                                                           20. BIODIVERSITY

                                                                                                                           21.   LOCAL COMMUNITY ENGAGEMENT

                                                                                                                           22.   UNIONS ALLOWED

                                                                                                                           23.   WORKING TIME MODEL

      LEGEND                                                                                                               24.   EMITTED VOLATILE ORGANIC
                                                                                                                                 COMPOUNDS IN ATMOSPHERE
          Material topics
                                                                                                                           25.   WATER CONSUMPTION
          Topics below the materiality threshold;
          not included in the report                                                                                       26.   SUSTAINABILITY OF TRANSPORT PACKAGING

          Grouped material topics                                                                                          27.   RECYCLED RAW MATERIAL

26.                                                                                           SUSTAINABILITY REPORT 2019                                             .27
INTRODUCTION              PURPOSE                  PEOPLE                 PLANET                 PROSPERITY           INTRODUCTION                PURPOSE                      PEOPLE                 PLANET                PROSPERITY

      METHODOLOGY.                                                                                                          STRUCTURE OF THE REPORT.
      This Sustainability Report has been prepared following the guidelines set out by the Global Reporting Initiative      The material topics presented and described within               The allocation took place based on the predominant
      (GRI) Standards, application level “Core”. The information and data refer to all the twenty production sites          this report are structured according to our 4Ps logic:           objective of the material topic.
      manufacturing flexible packaging solutions and the company headquarters for the period ranging from the 1st           Purpose, People, Planet and Prosperity. This logic is a          Each material topic is represented by:
      of January 2019 to the 31st of December 2019, unless otherwise indicated.                                             result of our Group-wide project “ReThinking Schur               • an overall objective towards which it tends,
                                                                                                                            Flexibles”, which has the goal of redefining the Group           • the boundaries for which it is relevant,
      The corporate boundary is defined by Schur Flexibles GmbH; for each material topic the overall objective, bound-      identity and developing a stronger Group thinking.               • the management approach and the internal respon-
      aries, management approach and KPIs are specified. The Sustainability Report has been prepared based on the           These four dimensions shape the strategic future of                sibilities,
      fundamental principles outlined by the GRI to guarantee the completeness and quality of the provided informa-         Schur Flexibles.                                                 • KPIs to give insights about the status quo,
      tion. Further, this Sustainability Report serves as our Communication on Progress (COP) to the United Nations         The structure of this report follows the ten relevant            • current and future projects to further develop the
      Global Compact.                                                                                                       material topics or groups of material topics displayed             topic and achieve the overall objective.
                                                                                                                            in the matrix. The material topics are assigned to one           This work serves as a basis for our objectives to be in-
                                                                                                                            of the 4Ps. At this point, it is essential to mention that       creasingly concrete and specific and for improving our
      Group companies included in the reporting boundaries:                                                                 the 4Ps are strongly interconnected and the assign-              monitoring system.
      Administrative sites                                       Production sites                                           ment of one material topic to a specific P does not
        Schur Flexibles Holding GesmbH,                             Schur Flexibles Denmark A/S, Bjert, Denmark             necessarily exclude its relevance for another P.
        Wiener Neudorf, Austria                                     Danapak Flexibles A/S, Slagelse, Denmark
        Schur Flexibles GmbH, Berlin, Germany                       Schur Flexibles Finland Oy, Jakobstad, Finland
        Schur Flexibles Germany GmbH,                               Schur Flexibles Dixie GmbH, Kempten, Germany
        Kempten, Germany                                            Schur Flexibles Dixie Films GmbH & Co. KG,
        Schur Flexibles Dixie Verwaltungs GmbH,                     Kempten, Germany (Established end of 2019)
        Kempten, Germany (Established end of 2019)                  Hänsel Flexible Packaging GmbH, Freital, Germany
        Schur Flexibles Flexofol GmbH, Kempten, Germany             Schur Flexibles Vacufol GmbH,
        Schur Flexibles Uni UK Limited,                             Bad Grönenbach, Germany
        Midlothian, Great Britain                                   Schur Flexibles Uni UK Converting Limited,
        Schur Flexibles Uni SAS, Averdoingt, France                 St Helens, Great Britain
        Schur Flexibles Uni Logistics SASU,                         Schur Flexibles ABR SA, Komotini, Greece
        La Ferté-Bernard, France                                    Schur Flexibles Uni Roto SAS, Averdoingt, France
                                                                    Schur Flexibles Uni Flexo SAS,
                                                                    Fontenay-le-Comte, France
                                                                    Schur Flexibles Uni Coextrusion SA,
                                                                    Vendôme, France
                                                                    Schur Flexibles Uni Pouches SARL,
                                                                    La Ferté-Bernard, France
                                                                    Cats Flexible Packaging B.V.,
                                                                    Rotterdam, Netherlands
                                                                    Schur Flexibles Benelux B.V., Leek, Netherlands
                                                                    Drukkerij Zwart B.V., Amersfoort, Netherlands
                                                                    TSO Packaging Printers B.V, Goirle, Netherlands
                                                                    Schur Flexibles Poland Sp.z.o.o., Bogucin, Poland
                                                                    Schur Flexibles Moneta s.r.o., Trebisov, Slovakia
                                                                    Scandiflex Pac AB, Landskrona, Sweden

28.                                                                                            SUSTAINABILITY REPORT 2019                                                                                                                               .29
INTRODUCTION             PURPOSE                   PEOPLE                    PLANET     PROSPERITY

                             PURPOSE.
                             Purpose is our central pillar. It is the element that aligns
                             each and every one of our people in their different
                             roles and leads us on our co-creational journey. It
                             encompasses why we do what we do and outlines our
                             core reason of existence. Purpose gives meaning and
                             invites all employees to contribute to the maximum of
                             their capabilities.

                             Today’s world requires adaptation to rapid change.
                             At Schur Flexibles we have taken up this challenge and
                             want to play an active role in shaping the future of the
                             flexible packaging industry. This is why we dare to move
                             out of our “business as usual” comfort zone and work
                             to achieve those outstanding results that we all want
                             and need.

                             Purpose – along with its accompanying field of values –
                             will allow the Schur Flexibles Group to grow together
                             into one organism. Within this purpose driven organisa-
                             tion, we will contribute to the fulfilment of the objec-
                             tives and visions defined in our 3 corporate strategic
                             fields of actions: People, Planet and Prosperity.

                                            MATERIAL TOPICS
                                                                           Governance

                                           Stakeholder Involvement
                                           on Sustainability Topics

SUSTAINABILITY REPORT 2019                                                                               .31
INTRODUCTION              PURPOSE                            PEOPLE                    PLANET                  PROSPERITY           INTRODUCTION                 PURPOSE               PEOPLE                 PLANET                  PROSPERITY

      GOVERNANCE.                                                                                                                         DEVELOPMENT OF
                                                                                                                                          A SUSTAINABILITY TEAM.
      OVERALL OBJECTIVE                                                    MANAGEMENT APPROACH
      Our ambition is to become a sustainability pioneer                   With the objective of favouring cooperation on all lev-
      within our industry. This entails connecting R&D, tech-              els to become a sustainability pioneer, we are address-        CONTEXT                                                    DESCRIPTION
      nical and manufacturing capabilities, sales representa-              ing this material topic with the launch of the “ReThinking     The establishment of a corporate sustainability team,      The members of the sustainability team are experi-
      tives, and our administrative team to develop together               Schur Flexibles” project, which started at the end             end of 2018, marked our first step towards the fulfil-     enced industry experts with profound knowledge of
      as a group. Sustainability is one of our key leadership              of 2019. In an open participation process, a team of           ment of our vision to become sustainability leaders        Schur Flexibles’ technologies and with strong relation-
      tasks and every employee is invited to join the jour-                employees from all our production sites is shaping the         in the industry. The team’s objective is to grow even      ships with important stakeholders such as associations,
      ney. Therefore, we want to encourage group thinking                  Schur Flexibles Group strategy by establishing a new           further and cover all areas of sustainability.             suppliers, and clients. They are the first point of con-
      as well as promote organisational development that                   Group-wide vision, mission, and values.                        On an operational level, the team is responsible for the   tact for all sustainability aspects. Martin Berlekamp and
      drives personal and professional growth. By collectively                                                                            non-financial reporting and has the goal of publishing     Max Wolfmaier are part of the team since its creation
      working towards eco effectiveness and eco efficiency,                                                                               a yearly Sustainability Report based on the GRI Stand-     and they directly report to our CSO, Friedrich Humer.
      we are not only promoting connectivity throughout                    BOUNDARIES                                                     ards – with this very document representing the first      At the end of 2019, we brought Fiene Berger on board.
      the Schur Flexibles Group, but also with all our clients.            Group level, including all corporate overarching               edition.                                                   The drafting of this first Sustainability Report has
      Together we are improving products and at the same                   activities.                                                                                                               already shown a good and important result: the first
      time contributing to the objectives set by the SDGs.                                                                                                                                           consolidation of all key figures regarding the Group’s
                                                                                                                                                                                                     sustainability performance. This represents the basis
                                                                                                                                                                                                     for further strategic developments.

                                                                       KPIs

                                                                                                                                          SCHUR FLEXIBLES SUSTAINABILITY TEAM
                                                 ›30                               ECOVADIS
                                                                                   RANKING

                                           NUMBER OF
                                          PUBLICATIONS

                                    Publications regarding sustainabil-
                                                                                     Danapak          Schur          Schur
                                    ity, recyclable packaging solutions                              Flexibles      Flexibles
                                                                                     Flexibles
                                    and circular economy in well                                       Dixie           Uni
                                    known national and international
                                    journals.                                                                                                      Martin Berlekamp                        Max Wolfmaier                             Fiene Berger
                                                                                                                                                  Head of Sustainability                 Manager Sustainability                  Corporate Responsibility
                                                                                                                                                                                                                                        Manager

                                                                                                                                          Within the team, Max and Martin are responsible for products and regulations while Fiene is focusing on processes.
                                                                                                                                          Together, they support Schur Flexibles' goals and those of our stakeholders towards a sustainable future.

                                                               PROJECTS

                                      DEVELOPMENT OF A                            RETHINKING
                                     SUSTAINABILITY TEAM                        SCHUR FLEXIBLES

32.                                                                                                          SUSTAINABILITY REPORT 2019   SUSTAINABILITY REPORT 2019                                                                                             .33
INTRODUCTION               PURPOSE                   PEOPLE                  PLANET                    PROSPERITY

      RETHINKING
      SCHUR FLEXIBLES.
      CONTEXT                                                      DESCRIPTION
      A strong and united core combined with an agile              Jointly developing a value framework allows us to
      and future-oriented approach are necessary to drive          increase awareness both on sustainable behaviour as
      change in a rapidly evolving world. “ReThinking Schur        well as on the strategic role of diversity throughout the
      Flexibles” is our journey to define the Group identity       Group. The process is designed to make the defined
      and values, co-created by the people of Schur Flexi-         values visible, to be able to integrate them into our
      bles. Cross-site and inter-departmental cooperation          daily work at all levels and to transfer them in all areas
      brings our specialised centres of excellence together        of the company.
      and helps us grow to become one unified Group.               This development was promoted by implementing an
                                                                   open participation process between site managers and
                                                                   sales units. Further, a broader group of Schur Flexi-
                                                                   bles employees from all functions and locations was
                                                                   involved in the project through qualitative interviews.
                                                                   Additionally, all our employees were asked to complete
                                                                   surveys which served as the basis for our work.

      PROCESS

                    2019           Group-wide employee surveys on Values, Group Culture and Collaboration.
                                   Multi-day teambuilding workshop for the project kick-off within the Group
                                   Leadership Team, composed of 32 decision makers.
                                   Regular dialogue forums on cultural and organisational topics involving
                                   sales managers and employees from different locations.

                         Our principles are anchored within our organisation thanks to a broad              OUTLOOK 2020
                         base of multipliers and reflected across all areas of operation on a daily
                         basis, both internally and externally. On a more practical level, we want
                         to create cross-site and inter-departmental teams and forums to activate
                         and implement the purpose and value framework in all locations.

34.                                                                                                   SUSTAINABILITY REPORT 2019   .35
INTRODUCTION              PURPOSE                  PEOPLE                  PLANET                 PROSPERITY            INTRODUCTION               PURPOSE                  PEOPLE                   PLANET                 PROSPERITY

      STAKEHOLDER INVOLVEMENT                                                                                                 FINDING WAYS TO RECYCLE
      ON SUSTAINABILITY TOPICS.                                                                                               OUR PRODUCTION WASTE.
      OVERALL OBJECTIVE                                           MANAGEMENT APPROACH                                         CONTEXT
      Our business environment is characterised by a dense        We manage this topic and its respective objectives          The aim of this project is to find ways to recycle our PA/PE (polyamide/polyethylene) production waste into a
      global network, making interactions with multiple           by building cooperative partnerships to develop and         higher quality material instead of disposing of it in an incineration plant. To do so, we started a cooperation with
      stakeholders complex. Nevertheless, remaining true          run joint activities and projects. The recommenda-          innovative recycling technologies specialist APK AG.
      to Schur Flexibles’ principles, we can only find the best   tions, needs and overall results of a former study we
      solutions involving as many stakeholders as possible in     conducted on our stakeholders are used as a basis for
      our decision-making process and in the consequent           our company development. The main responsibility for        DESCRIPTION
      implementation of our plans. The drafting of this report    stakeholder engagement lies with our CSO, Friedrich         The solvent-based recycling process used by APK              As a matter of fact, Schur Flexibles Vacufol GmbH’s
      creates the right occasion to embark on a wide stake-       Humer, and our Head of Sustainability, Martin Berlekamp.    enables the separation of PA/PE composite materials,         PA/PE production waste has been collected by APK
      holder dialogue to define the sustainability topics we                                                                  thus enabling material recycling and reuse of produc-        for recycling for over a year now. This result is the very
      should put our primary focus on. Moreover, we want to                                                                   tion waste, previously treated by a local waste man-         evidence that new technologies and close coopera-
      nurture a strong interaction with our most important        BOUNDARIES                                                  agement company. The successful implementation of            tion with recycling companies can lead to closing the
      stakeholders to align our sustainability strategy with      This material topic covers all our relevant stakeholders.   the project helps us close this loop, contributing to the    loop of waste recycling. Additionally, it has also shown
      customer and market needs, integrating them into our        The stakeholder groups “employees” and “suppliers”          fulfilment of our vision of a circular economy. Only by      what added value we can achieve through stakeholder
      product development. Finally, we want to use these          are specifically covered by other material topics.          integrating APK into our previous waste disposal con-        involvement. Lastly, instead of paying for the recy-
      dialogues as opportunities to develop and initiate pro-                                                                 cept and by closely exchanging information, we were          cling, we now also generate additional turnover for the
      jects and activities together in the field of sustainable                                                               able to improve our raw material recycling in this area.     company.
      development.

                                                             KPIs
                                                                                                                              PROCESS
                     28                                      80                                        8
                                                                                                                                            2018        Preparatory talks

                NUMBER OF                            NUMBER OF CLIENT                            NUMBER OF
               IMPLEMENTED                             VISITS BY THE                            COOPERATIONS                                     2019      Implementation of material recycling
               PROJECTS ON                            SUSTAINABILITY                          FOR SUSTAINABILITY
              SUSTAINABILITY                               TEAM                                    TOPICS
            WITH STAKEHOLDERS

                                                                                                                                                                                    Intensification of cooperation and         OUTLOOK 2020
                                                                                                                                                                                    if possible, expand to other product
                                                                                                                                                                                    groups or plants

                                                        PROJECTS

                                      FINDING WAYS TO             WASTE – BE CIRCULAR –
                                        RECYCLE OUR               A COOPERATION WITH
                                     PRODUCTION WASTE                    FUTURY
36.                                                                                             SUSTAINABILITY REPORT 2019    SUSTAINABILITY REPORT 2019                                                                                                .37
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